And right now we are two minutes away
from the end of the trading day. Roma
Bostic alongside Scarlet Fu taking you
through to that closing bell with a
global simalcast. Special coverage today
as we're joined by Tim Stenic in the
radio booth as always. Isabelle Lee in
today for Carol Master. Caroline Hyde
the co-host of Bloomberg Tech joining us
as well here in the TV studio as we
parse all of the crucial moments of the
day. But forget that. More importantly
here we're pushing ahead to the big
earnings report coming in just a few
minutes time. Are you talking about
NetApp or Five Below?
I did that joke just a few minutes ago.
Which one? You did?
Yeah. Thank you.
You know what? What's great about this?
You do that joke every quarter?
I do.
So, I can then I can then come in and do
the joke, too. And I know you're going
to laugh about it. I am. So, yeah. Well,
you know, in in all seriousness, we're
getting CrowdStrike, Snowflake, Urban
Outfitters, HP, Inc., and then yes,
Nvidia, but that doesn't come till 420.
So, there is going to be a lot of to
talk about ahead of that drop. So Nvidia
may be the star of the show, but all
eyes are also going to be on Microsoft
Meta, Amazon, and Alphabet because those
account for 40% of Nvidia's revenue and
altogether those four weigh as much as
15% of the S&P 500. What's been notable
is some of the big reactions we've had
in certain software names and other
areas of tech just on the day. I think
MongoDB up more than 30% after its climb
and numbers. That has a lot to do with
integrating AI within your business
model. How much is Snowflake able to
ride that wave as well? Okay, so those
are the tech names. I think it's worth
noting as well today that you have the
Russell 2000 outperforming the big cap
indexes up about 710 of 1%. That's been
the case over the past month.
Absolutely. Here and maybe that is part
of the rotation. And I think to
illustrate that point, I was just going
back all the way to November 30th, 2022.
That's basically when chat GBT came into
the public's consciousness. 20% of the
gains in the S&P 500. the points 2500
points higher than where it was back
then. 20% of those points coming from
Nvidia alone pushing the S&P to today.
Yet another record high up 15 points or
a quarter of a percent. 6481 and change.
The Dow Jones Industrial Average up 310
of a percent on the day. The NASDAQ
Composite and the NASDAQ 100 each up
about a tenth of a percent on the day
and the Russell 2000 as you were just
mentioning Scarlet outperforming yet
again up 6/10en of 1%. A pretty
broad-based move too when it comes to
stocks within the S&P 500. 343 stocks
gained. They were to the upside today in
the S&P 158 stocks lower.
All right, let's take a look at the
IMAP. The 11 sectors in the S&P 500. A
lot of green there, led by energy, which
is uh up by more than 1%. Tech was the
second best performer, gaining half of
1%, followed by REITs and consumer
staples. The sectors that finish in the
red, they finished pretty much little
change. Industrials, healthcare, and
communication services.
All right. Well, let's go to some of the
stocks that were in the green today.
Caroline mentioned MongoDB. Shares just
soaring today. Actually, the most ever
going back to its IPO in 2017. The
company did report second quarter
results that came in much stronger than
expected. To the upside remain of 38%. I
think we got some earnings coming
through.
Yeah, let's just walk through these
really quickly here. Five Below, the
retailer out with earnings. It beat on
the bottom line. EPS in the quarter 77
cents. The street was looking for 55.
Comp sales up 12.4%. the street was
looking for 9.1% in your guidance here
for the full year. The company says that
it sees netkin income in a range of 253
to 275 and on the sales of basis uh it's
looking at uh net sales of 4.44 billion
to 4.52. Uh the numbers don't matter
here. Basically have beaten a raise for
five below.
All right, let's take a look at NetApp,
one of the other highly anticipated tech
companies, hardware companies in this
case, and its results. first quarter net
revenue meeting estimates of 1.56
billion and it still sees fullear net
revenue at 6.63 billion to 6.88 billion.
So it sounds like it is holding uh it's
maintaining its fullear forecast here.
The stock at least in the initial
reaction is down about 4 and a.5% in
after hours trading. And Caroline, I'm
not sure that this is a company that
gives us much of a read into some of the
uh bigger trendier parts of the tech uh
ecosystem where
it certainly hasn't caught a bid over
the course of the year. We're down about
3% so far year to date when you think
about comparing it to the 35% that
Invvenia has climbed. But look, this is
still about database. This is still
about managing your data and it's one to
watch.
Uh the company's CEO, George Currion,
saying uh in a statement that by helping
customers modernize with cutting edge
and cyber resilient storage solutions,
they've taken the lead position in the
all flash market. He says he's confident
in the company's ability to capitalize
on this momentum and deliver sustainable
long-term growth. Shares in the after
hours down by about 6%.
All right. Well, let's take a look at
some of the other gainers on the radar
as we do expect other companies to
report earnings in just a few minutes. A
reminder to everybody, we're expecting
Crowd Strike, Snowflake, Urban
Outfitters, HP, Inc., and then of course
the big one, Nvidia. Another gainer uh
higher today, Kohl's shares just surging
after the company offered a more
optimistic fullear sales outlook. It
expects comp sales to fall no more than
5% this year. shares to the upside today
of 24%. The company did see strong
performance from back-tochool
categories. Uh its latest results
suggest that recent moves for for
example focusing on fine jewelry,
improving women's wear are helping win
back consumers. And finally, here's a
statement from the company. We thank our
guests for sharing your voices and love
for Cracker Barrel. And we said we would
listen and we have. Our new logo is
going away and our oldtimer
will remain.
The guy leaning on on the barrel, right?
I guess he's has a name. I didn't know
this. He's
oldtimer.
Oh, okay. That seems kind of
It's a little rude, right?
Yeah. Okay. So,
well, investors cheering this. It's up
8% today. What else is there to say?
Our great national nightmare is over.
Yeah, just until the next Just until the
next one starts. Roma.
Yeah.
All right.
What do you got, Asabelle? Slim pickings
for me uh with stocks in the red. But
let's start with James Mucker. Shares
are down by four and a half%. This comes
after the company's first quarter
adjusted EPS and volume declined more
than expected. Net sales also
underwhelmed. Up next is Abberrombi and
Fitch. Shares are down by just 510 of
1%. The company boosted their annual
guidance, but the midpoint of their EPS
and net sales range slightly trailed
estimates. So its namesake Abberrombi
banner missed on sales. But hollister
their beat. I must say that Abbercrombie
has really gotten great. Uh my friends
and I now shop there. Lastly is Fortune
Brands. FBIN is the ticker. Shares are
down after True Securities downgraded
the stock to hold. So Fortune Brands is
a home and security products company.
Truis said that fundamentals have seen
more pressure than we expected partially
due to dramatic declines.
All right. And we keep an eye on yields
here. The yield curve continues its
steepening. though we did see yields
drop across the curve uh mostly on the
low end down six uh six basis points for
your two-year yield and on your 30-year
yield only down about one basis point
scar
okay we have uh earnings out from HP Inc
the ticker HPQ and we could tell you for
third quarter adjusted EPS 75 cents
beating the consensus estimate by one
penny uh adjusted operating margin 7.1%
slightly below what analysts were
looking for in terms of the forecast uh
the company sees fourth quarter adjusted
EPS PS of 87 cents to 97 cents. Analysts
were looking for on average 91 cents. So
the higher end of that range certainly
above the consensus estimate. Uh and
that is perhaps what investors are
reacting to there with the stock up
about 6.4% after hours trading.
Another stock up in the after hours is
Snowflake shares surging uh by about 8%
as we speak right now. The company out
with results saying that second quarter
adjusted diluted EPS coming above
estimates at 35 cents. second quarter
revenue at $114
1.14 billion that beat estimates of 1.09
billion. As far as that outlook goes,
the company sees fiscal year adjusted
operating margin at 9%. They saw 8%
third quarter product revenue at 1.13
billion. The estimate was for 1.12
billion. Snowflake sees fiscal year
product revenue at 4.4 billion saw 4.33
billion. The estimate was for 4.34
billion. Once again, shares in the after
hours higher right now by just about
10%.
And it's interesting that Snowflake is
up on the day and we've seen it actually
being up 30% year to date. Think about
the private sector competitor data
bricks which is now worth hundred
billion dollars in the private markets.
This is worth some 60 billion. But I'm
looking at HP as well and remain to this
point. This is an AI story because it's
AIP PCs that are doing particularly well
there and you're seeing commercial
adoption and actually PCs more broadly
way more resilient than many had thought
thanks in large part to Microsoft's
software. Well, this is what I'm curious
about. We've been talking a lot about
the broadening of the AI trade earlier
today. Caroline, we were talking to an
analyst who actually said he was a
little bit more favorable to Broadcom as
a chip play than Nvidia, but also where
is the use case here? I mean, when are
we going to start to see uh real use
cases for this AI in an investable way?
Is it already there? Are we seeing it
and we're just not paying attention to
it? Where?
I don't know. You tell me.
As a student, maybe you're using it AI,
you know, I actually did use it today.
We we this is this is I I don't know if
you guys know this, but we actually get
access to some of the AI tools recently
and I'm I it's uh
Have you not done your training, Tim?
Are you not using chat GPT every time
that you're about to go on air and
you're amalgamating your notes and your
understanding?
This is a true story. I was actually
looking for a Bloomberg economics
statistic and I found it through
ChatGpt. It sent me to the Bloomberg
economics article.
There are other chat on Bloomberg.com
and yeah, it worked really well.
You didn't search for it on the
Bloomberg terminal.
I did certainly
did using the generative AI product that
has been entertained
there.
How come I always get myself in trouble?