And
>> all right, we have uh hit an all-time
high again yesterday. A little bit
softer this morning. 30 minutes until
the start of trading. I'm Matt Miller
>> and I'm Katie Gridefeld. Bloomberg open
interest starts right now.
[Music]
Coming up, Fed chair contender
Christopher Waller doubles down on the
need for a rate cut as fresh data this
morning may support his case. Meanwhile,
the Trump administration's campaign
against Lisa Cook intensifies as she
seeks an emergency hearing this morning
to block her removal. and the September
scaries. Stock bulls are bracing for
what has historically been the weakest
month for the S&P 500. Katie,
>> and of course, we're coming off of
all-time highs. So, scary stuff indeed.
Let's talk about Dell, though. Dell, it
raised its revenue forecast for the full
year, but you can see the shares are
down pretty mightily this morning as it
sees a slowdown in AI related sales.
That is the bugaboo of this market. You
can see Dell shares down about 6.7%. I'm
also uh concerned about Good Jeans this
morning. Watching the gap. Uh it expects
margins will shrink this year. A sign
tariffs are slowing a recent turnaround
story. Shares were down as much as 12%
overnight. And now they bounce 3% just
30 minutes until the start of trade.
Katie,
>> good Jeans of course was Sydney Sweeny's
campaign for American Eagle, but GAP
came out with its response ad. In any
case, we'll get to all of that. Let's
start with PCE data, though. It's the
Fed's preferred inflation measure. It
was mostly in line with expectations
when those numbers hit at 8:30. You can
see S&P 500 futures. They trimmed losses
after the release, but not by too much.
Let's break down the data with Michael
McKe. He is Bloomberg's international
economics and policy correspondent. So,
on most measures, this looks like it was
as expected. Not exactly upsetting the
apple cart here.
>> No, no, no. Apples are all still in the
cart. uh today and there's no real sign
of what the Fed should do except for the
fact that inflation still remains
elevated. It went up on a core basis to
2.9% year-over-year, which is not a good
look even if it was a small increase.
Core on a month-over-month basis didn't
change at all. It was up 3/10en of 8%.
The headline dropped a little bit, 210
of a percent on a year-over-year basis,
still 2.6%. Uh but the issue is for the
Fed, we're not moving in the right
direction. So if you do want to cut
rates, as a certain Fed governor said
last night, uh you're probably going to
need to have a little bit better numbers
than this. Now, they're going to not
have they won't have another uh PCE
report before the next Fed meeting, but
they do get a CPI report on September
11th. The good news side of this that uh
is good news for the economy but not
necessarily good news if you want to cut
rates as well is personal spending was
strong in July up half a percent much of
that automobiles but uh that pushed up
good spending more than expected
personal income up uh 4/10 on the month
and as part of that wages and salaries
jumped to a 610 increase from a onetenth
increase. So consumers have more money
to spend at this point it looks like and
the every indication are is guys that
they have been spending it.
>> So um for Chris Waller three is the same
as two at least for now because he says
he's back on team transitory. Are we
expecting everybody to be down for a
rate cut? And could we even go 50 basis
points September 17? Well, this data
suggests that 50 would be kind of out of
the ballpark. Now, Waller is saying that
the inflation numbers he's looking at
are uh these numbers, but you take out
the tariff impacts because he believes
those are one-time increases. So, that
puts it closer to two, he says. Now, the
rest of the Fed doesn't necessarily do
that. We've heard from Eric Schmidt, the
Kansas City Fed president, who says, "I
absolutely won't do any PCEX anything
because that's not the experience that
people have." And what they're worried
about is whether or not inflation
expectations rise. Uh which is might
tease ahead to the 10:00 a.m. uh
University of Michigan numbers which
everybody will be watching today. So
that's uh that rules out 50 probably.
The question is what what do we get from
the jobs report and Waller made an
interesting point there uh that he's
seeing deterioration in the labor market
in the private ADP data that the Fed
gets each month each week. So they are
tracking ADP's numbers as they come in
and he suggested in a footnote to his
speech last night that things might not
be as good as even we think for the uh
August numbers.
>> All right, Mike McKe, thanks very much.
Michael McKe there, our international
policy uh and economics correspondent.
Now, Fed Governor Lisa Cook is due in
court in about an hour. She filed a
motion for a temporary restraining order
against President Trump, Fed Chair Pal,
and the board of governors. the order
would allow her to continue working as
she fights the president's attempt to
oust her from her position for cause.
Trump says the court, and I believe he's
referring to the Supreme One, should
defer to him on the for cause debate.
Bloomberg's Washington correspondent
Tyler Kendall joins us from outside the
courthouse where the hearing, this
initial hearing is going to take place.
Tyler, what do we expect?
>> Yeah, hey Matt. Well, at 10:00 a.m.
Eastern, this federal judge is going to
start to dig into this case brought by
Fed Governor Lisa Cook against President
Trump, alleging that he violated federal
law and his attempts to oust her. And
actually breaking just moments ago, we
got our first response from President
Trump in a court filing to Lisa Cook
seeking this temporary restraining
order, which would reinstate her on a
temporary basis. He doubles down that
determining cause is at the discretion
of the president. And he goes on to
suggest that he gave Lisa Cook the
ability to respond, saying that he
publicized his referral and made clear
he viewed the allegations as quote
potentially criminal conduct as grounds
for termination. Yet, Dr. Cook offered
no defense to the charges, not in public
or in private. Of course, one of the
issues at hand here is that Lisa Cook
says that she was not given due process,
that she was fired without able uh being
able to defend these allegations against
her. That's going to be one of the key
issues as this court case plays out. The
other, of course, as we've been talking
about all day here on Bloomberg, is what
determines cause. This idea that the
president can only remove a Federal
Reserve official for cause. Lisa Cook's
lawyer say that uh this does not rise to
cause and that the allegations are not
are not true. But in a court filing
yesterday, we got perhaps a preview of
their defense, saying that if there were
any errors on those mortgage
applications, they were likely clerical
errors and that Lisa Cook did not have
any intent to deceive anyone when it
came to this and that no harm was uh
ultimately brought. Those of course
intent and harm are two of the factors
that the judge could weigh in this.
>> Well, let's talk a little bit more about
the cause that the Trump administration
is alleging here. We of course heard
from Federal Housing Finance Agency
Director Bill PTE sending a new criminal
referral against Cook. He really is
intensifying here uh this campaign. This
one concerns actually a property in
Massachusetts. What do we know about
that, Tyler?
>> All right. So, this was in a a second
criminal referral now that Bill Py, the
FHFA director, made to Attorney General
Pam Bondi in a letter yesterday. And it
follows similar allegations to the other
uh mortgage issues that Bill Py has
elevated, saying that uh alleging that
Cook took out a mortgage on a
Massachusetts property and listed it as
her second home, but ended up using it
as an investment property where she
brought in uh anywhere from 15,000 to
$50,000
uh in income from it. Now, again, these
are all just allegations at this point.
And while the Department of Justice does
say that it is going to look into them,
it's important for us to note that no
criminal charges have been brought. Uh
we're going to have to see how this
ultimately does play out. Some have said
that perhaps uh the the way that the
Trump administration has ruled out these
allegations might actually work in
Cook's defense, considering you have
President Trump saying today that he
gave her the ability to defend against
these allegations. But then a new one
just popping up this morning and she's
already been fired. All right, Tyler,
really appreciate your reporting. That
is Bloomberg's Tyler Kendall joining us
from Washington. Meanwhile, a US trade
policy that allowed free imports of
goods valued at $800 or less has ended,
affecting global e-commerce and adding
costs for businesses and consumers.
Everett Eisenstad, who served as senior
adviser in President Trump's first term,
spoke earlier on Bloomberg TV.
>> It's going to take time. You can't make
a change like this overnight and expect
everything to continue to move just as
smoothly as it is. And your example on
these fash fashion shipments is exactly
uh one of the cases in point where you
have an industry that was built up
around this concept that really I'm not
even sure is able going to uh will be
able to resolve itself and survive as it
did in this new environment. So, it's
it's a pretty it's a pretty important
change and one that's going to filter
through through pocketbooks and
companies for quite some time.
>> Bloom Bloomberg Intelligence senior
logistics analyst Lee Klascow joins us
now. And and Lee, it does look like um
we're going to see at least a little bit
of uh uh uh logistics bottleneck here or
some shipping uh problem, some postal
issues, disruption, I guess is the best
way to put it. How do you see it?
>> Yeah, there's going to be another supply
chain dislocation created by this. It's
going to impact anybody that sends
things or receives things here in the US
from overseas. Um, you know, we we
removed or uh stopped the exemption, the
dimminimous exemption for goods coming
in from China and Hong Kong. In May, uh
we heard from uh UPS during the second
quarter earnings that you know the trade
lane between China and the US was down
around 35% based on that and and and the
impact of tariffs. Um so it's going to
impact transportation companies. some uh
foreign postal services are uh
suspending sending things here to the US
as they try to figure out, you know, who
uh and how much uh who's going to pay
the duties and how much the duties will
actually cost coming in.
>> Think about some of the companies that
are affected here. I mean, we've known
that this was coming for at least a few
months here, Lee. So, do you think that
the companies in the space that you
follow so closely have adequately
prepared for this moment? Yeah, I mean
the best that you know companies like
UPS and FedEx can do is just reallocate
their resources. So maybe they don't
need as many um you know planes uh to go
between uh Asia and and the US or Europe
and and the US. So you know that's what
they're really going to be doing because
you know they they can't create demand
um you know out of thin air when that
demand goes away. It'll be interesting
to see what happens and and and
consumers are going to be impacted as
well because you know that uh um I guess
$5 sheen dress that someone might have
bought might actually cost $25 now. So
that kind of changes the economics
there.
>> Yeah, absolutely. Lee, uh great to get
some insight from you. That is Lee
Klasco of Bloomberg Intelligence. Let's
take a check on futures right now. That
is the final trading day of August. And
you can see that setting up to be a down
session even though there's a lot of
daylight between here and 4 p.m. But the
S&P 500 currently off about 3/10en of a
percent. This is after we hit a record
high yesterday. The NASDAQ 100 off a
little bit more, about half a percent.
The small caps holding strong here. The
Russell 2000 unchanged on the day, but
the color is green. And I have to say,
Matt, it's interesting to see this kind
of non-reaction in futures to what we
learned on the PCE front at 8:30 a.m.
because you did see pricing for a
September rate cut go up slightly. We're
sitting at about 88% odds right now, but
not helping out futures premarket.
>> Yeah, I mean, I saw I was watching uh
when the data came out the 2-year yield.
I was watching uh S&P futures and I was
watching Bitcoin. So, you saw a tiny
little spike, like instantaneous in risk
assets and then a drop in the 2-year
yield.
>> Um, it can't be overstated how in line
the PCE data came in with expectations.
And like if you know the CPI data and
you know the PPI data, apparently I hear
from uh Mike McKe that you can pretty
much exactly figure out what PCE is
going to be. So, there weren't any
surprises and there weren't we weren't
expecting any surprises. Perhaps some
folks with money on the line, more
sophisticated than you or I actually did
that calculation and placed their bets
early because really uh not too much of
a ripple there. But
>> how do you get more sophisticated than
you and I?
>> You know, I keep asking that question.
Still haven't found an answer.
>> Coming up, two tech stocks to watch this
morning. Are Dell and Marll as they see
AIdriven demand faltering?
We'll explain next. This is Bloomberg
Open interest.
Let's get now to high interest. Look at
what's making headlines around the
world. Just weeks after its last
quarterly report, Caterpillar is warning
investors that it now expects tariffs to
have an even greater impact on its
business, costing the company as much as
$1.8 billion this year. Caterpillar is
one of the world's biggest makers of
machinery for mining and construction.
Alibaba ADRs are rising in the
pre-market after the Chinese e-commerce
giant reported a surge in revenue from
China's AI boom, helping offset a
surprise drop in profit. Meanwhile,
Alibaba is reportedly developing a
newer, more versatile semiconductor that
will help China fill the void after
Nvidia ran into regulatory barriers
selling its products in that country.
And Dell shares are under pressure in
early trading as the company booked
fewer sales of AI servers than in the
previous 3 months and reported
disappointing profit margins as well.
Despite the decline, Dell boosted its
annual outlook and posted quarterly
sales and profit that topped analyst
estimates. But we're still looking at a
7% drop. Katie premarket.
>> Let's talk about why now with Bloomber
Tech co-host Caroline Hyde sitting to my
left. So, as Matt said, I mean on its
face, okay, it boosted its annual
outlook and sales and profit beat
estimations here, but missing when it
comes to AI server sales. That's not
something you can do in this market.
>> I think exactly. That's the read across
from both Marll and Dell is basically
when you're seeing this capital
expenditure growth coming from all the
hyperscalers when you see the need and
insatiable demand for infrastructure how
are these companies actually sewing
showing slower growth like more broadly
Dell did book $5.6 6 billion of AI
servers in the fiscal quarter. That's
basically half what they booked the
previous quarter. And also there is
fierce competition in this space. You've
got super microcomput here in the U. US
also a fierce competitor. But you've got
other areas where they're seeing just
margins get crimped because people are
battling for basically scale and taking
a bit of a hit in profitability. So we
saw a little bit of a gross profit worry
more broadly and you're seeing this
slightly slower AI service. But longer
term Dell saying look we're going to
book $20 billion over the year. We're
actually raising our guidance and as you
said they beat on the fiscal quarter. So
people have got a reason to perhaps sell
going into this weekend when perhaps
they just still a few more question
marks a bit of risk aversion going into.
>> By the way, do people need to somehow
buy new computers to use chat GPT? Mine
works fine on my old computer.
>> You don't have an AIPC. You should
>> What is an AIPC? Like what difference?
>> It's going to make you just super sonic,
Matt, if you're not already. Well, look,
this is where I think the compare and
contrast is interesting. HP the day
before said PC sales were much stronger
than the market had anticipated. They're
actually seeing about 25% of that demand
being AIP PCs particularly in the
commercial area. So why is Dell not
seeing the same ripple effect? So I
think there's a bit of worry about
market share here and in general
enthusiasm around Dell's pro product
visa v HP. So I think that was why also
people are look look why is this part of
the business weaker?
>> Did you know? Okay. So, Supersonic is a
song by Oasis from 1994.
>> Caroline Hyde is a fan of Oasis.
>> Yes, you see them on Monday. Don't judge
me on Tuesday.
>> Um, I only know Wonder Wall. So, in any
case, let's talk a little bit more about
profit margins, getting us back on track
here because you take a look at the
transcript of the conference call. This
is something that the COO had to
address, really getting questions on the
profitability of the AI server business.
So there's a lot of question marks here
beyond just the sales numbers
>> of a champagne supernova. How many how
many reference should we get in? No,
Marvel I think I've got a great quote
coming from Jordan Klein. We have him on
the show often. He's over at Mizuo and
he's saying Marvel is already hated and
having some real company specific
issues. It's basically the best new
short idea. This is basically his view
that this is a company that cannot fend
off competition coming from Taiwanese
competitors but from Broadcom as well.
This is a company that was basically
making the custom chips for Amazon for
Microsoft. The companies that are
spelling spending vast quantities $400
billion worth in capital expenditure
trying to build their own specific chips
so they're not so reliant on Nvidia. How
then are we seeing a flatlining in their
AI business for the next quarter? This
lumpiness that they're seeing is not
music to the investor base's ears. And
it is notable on both these stocks
though, Dell and Marvel, zero sell
ratings from the analyst community. Most
still say buy the stock. It's just the
hedge funds in particular, the ones that
have gone in around the trade have piled
back out when you're seeing any sign of
weakness.
>> Yeah. A lot of neutrals, right? Bank
America says uh it's a neutral and they
downgraded it.
>> A lot of price targets came down as well
on the day from
>> Yeah, exactly. A lot of revenue
reductions. All right, Caroline, we look
forward to uh Bloomberg Tech. Yeah, I'm
going to join you on Bloomberg Tech.
Caroline, hi.
>> Six hours. We need six hours of that on
TV.
>> That all important program. Some of the
other movers on our radar this morning
outside of tech, Alta raised its fullear
outlook after reporting second quarter
results that topped expectations and uh
I was actually just talking with Dana
Telsey on Bloomberg surveillance and
she's very impressed. This is one of the
retailers that she likes above all
others.
>> Yeah, it's one of those retailers that
again it's beauty and I feel like that's
been a little bit more resilient than
maybe some of the other categories that
fall under the retail category. Let's
talk about
>> We were talking about a $160 lipstick
from Louis Vuitton.
>> Yeah, I'd believe it. Not what I would
buy, but would you buy it?
>> No, absolutely not. Anyway, let's talk
about a firm uh earnings cleared a high
bar and analysts from TD Cowen, RBC,
Morgan Stanley, all boosting their price
targets that is helping to boost the
stock. Currently up about 16.5%
pre-market.
>> Woof.
>> Petco, what a great ticker. Uh, Petco
raised its earnings targets for the year
as the company's turnaround starts
showing signs of progress. And wow, a
20% gain in the pre-market.
>> Yeah, huge uh gain in wolf. One of my
favorite uh tickers other than hog for
Harley-Davidson this year.
>> I love hog as well. I'm getting ready
for a pretty sweet trip. I'm going to
ride my fat Bob out to Pucket, Rhode
Island.
>> All right. Well, wear your helmet.
Coming up, Sarah Hunt of Alpine Saxs and
Woods walks us through seasonal
turbulence ahead of the high stakes
September Fed meeting. This is Open
Interest.
Well, traders are in for an interesting
September because the S&P 500 has fallen
56% of the time in September according
to the Bank of America. Next month, we
get two inflation reads and a Fed
meeting that should impact market
sentiment. We also get a jobs report.
And you take a look at the seasonality,
Matt. I mean, September, again, 56% of
the time that is slightly more than
average. And we know that September
seasonally is a tough time.
>> Yeah, I use uh on the Bloomberg terminal
se A. Um, se AG is how you can look at
seasonality. And I was looking over the
last like if you look at 29 years, which
is the longest you can do on the
terminal right now, you'll see that uh
the average the top line there only
three months are negative. So the the
trend is up and to the right as we know
for equities. Um, but September is the
worst month. So down 8/10en of 1% in
September. Um, I also last night I was
lying in bed. I was thinking about uh
the fact that the markets were up to an
all-time high even though Nvidia was
down.
>> I was thinking about that, too. Not last
night. I was thinking about that on air
uh on Bloomberg Business Week at 2 p.m.
But it was amazing to see that.
>> I init I immediately jumped out of bed
and did RRG on my Bloomberg terminal
because if you look at the S&P and type
RRG, you can see a relative rotation
graph and you can see that tech is
coming down and consumer discretionary
is rising higher. There it is. What a
fantastic function. We'll be back with
the opening bell in just two minutes
time.
We are moments away from the start of
trading on this Friday. It is the last
trading day in August and we're going to
run into a little bit of seasonality.
So, after the all-time record high we
had yesterday, closing above 6,500 on
the S&P, we get a little bit of a
release today, uh, with futures pointing
down about 3/10en of 1%, down about a
half% here on the NASDAQ. Russell 2000
futures higher. By the way, August has
been awesome for the Russell. It's up
more than 6% as uh, I think the NASDAQ
100 is only up less than 2%. So, you've
seen kind of that rotation, right? the
Mag Seven, the Great Eight, giving up
some of their uh leadership to the S&P
493. Um we showed you that rotation
graph in the uh in the last block and
we're going to dig a little bit deeper
into the industry groups that are moving
um as well over the last month, but uh
it's been a good month for small caps
and the question is
>> um are we going to get rate cuts which
would help even more?
>> Absolutely. I think a lot of that
outperformance probably came on the back
of Jackson Hole with Jerome Pal
basically saying we're going to cut
rates next month. But let's take a look
at some of the individual movers here.
We are just seconds into the final
trading day of August and boy Dell is
having a bad day. Remember it raised its
forecast for the full year, but shares
are down because it sees a slowdown in
AI related sales. Not something you can
say in this type of market. Dell shares
not quite decimated Matt Miller but
getting there off by more than 9%.
>> The Gap expects its margins will shrink
this year. So a narrowing gap a sign
tariffs are slowing recent turnaround
momentum. Those shares uh down 10%. So
gap being decimated. Well no that was
Dell still.
>> That was Dell. Sorry. Here's the gap. Uh
the gap I it's, you know, this is to me
like it was down so much overnight um
that I thought we'd see that at the open
again. It was down as much as 12%
overnight.
>> So,
>> and what gives what's with the what's
with the rebound here?
>> All of that happened before markets were
open. We had time to digest those
earnings and uh the sun is shining now
and people feel differently.
>> Yeah, I guess um for sure that's the
case. it uh its margins were dragged
down by Athleta apparently.
>> Interesting.
>> Do you are you a buyer of
>> I am actually athleisure huge. I know
that uh there's some generational
divides there. People are gravitating
more towards the baggier silhouettes,
but not this millennial. Anyway, we have
a great guest coming.
>> Yes. Alpine Sax and Woods chief market
strategist Sarah Hunt joins us after an
all-time high. Um we were Sarah up to
6,500 yesterday and you know eclipse
that that measure I guess on hopes that
AI capex is going to continue. We had
3.3% GDP growth in the second reading.
Everyone is expecting now I guess a cut
at the September 17th meeting and no one
really cares about Fed independence um
or uh firing statistitians when we don't
like the numbers. So are you on board
with this rally as well?
Well, I think it's pretty impressive
that the market could rally with the
Invidia news because I think that that
was one of the bellweathers that's been
carrying some of the water for the
market rally for quite some time. So,
the fact that they had I wouldn't even
call it bad news, but it wasn't stellar
good news. And I think that was
something that the market managed to
digest and I think the revision to GDP
higher is not a bad thing either. I
think we still have to contend with
what's going to happen as the tariffs
really sink in and some of the
pre-ordering which we saw in some of
those higher import numbers may be going
away, but we'll just have to see. That's
a that's a wait and see right now. And
unless we get some bad inflation
numbers, the market looks pretty okay
here. Even though we are going into one
of the witchier months.
>> Yeah, witchier months. I do like that.
Sarah, let's talk a little bit about
this budding rotation that Matt was just
talking about at the opening bell
because it's true. I mean, the small
caps had a fantastic August. If you take
a look at the chart of the Russell 2000,
it's exactly as you would suspect. Of
course, it got a big boost after we got
through Jackson Hole and Jerome Pal's
speech. Is that something that can
survive the witchiness of September? Is
this another flash in the pan for those
small caps?
>> I think for small caps, it's really
going to depend on where inflation goes
because the expectation that rates are
going to be cut generally is looked at
as being beneficial, especially to small
caps because they're under more
financial pressure than some of the
larger companies. So it's really I think
the inflation readings coming up. I mean
the PCE was right in line. So that I
think is not so much of an issue. Had it
been higher, I think the market would
have taken that in a negative way. The
we're looking for rate cuts. If you see
any indication that labor is stronger
and or inflation is stronger at the same
time that may take that off the table
for September. I think that would be
tough for small cap. So that rotation is
fine until and unless we see higher
inflation.
>> Um what are the industry groups that you
like? Do you just stick with the ones
that have been winners so far? I mean,
do you just continue to add to your Mag
7 exposure?
>> Well, we I mean, we've always had some
representation in technology because you
really can't not have that and they are
the companies that are generating the
most cash and have the most cash on
their balance sheets, but there are
ancillary plays around that. We've
talked about energy infrastructure
before. You look at some of the
pipelines. There's a lot of stuff that's
going on that helps build out this
infrastructure. And there are a lot of
good companies in the US that are doing
fairly well and generating a lot of
cash. Quality as a factor hasn't been as
good in some cases as some of the other
stocks in some of this rally. So we
still like quality. So we're looking for
cash flow and you can find it in a lot
of places
>> where well tell us a little bit more
about those places. I mean does it cut
across industries here? What does the
ven diagram look like?
>> Well there there is a ven diagram
between the industrials, the energy and
the AI space, right? because we still
have to build out a lot of that
infrastructure and there's a lot of talk
about the fact that we're short on power
and how that's going to impact going
forward. So the companies that are
involved in those sort of spaces tend to
be companies that are getting favorable
investor sentiment right now. But as
well you're also seeing companies in the
US the housing market is weak. So that's
side of the area we want to stay away
from. But the consumer is doing fairly
well and some of that spending is coming
through. So there are places where you
can really see that cash come through
and that's really something that we
focus on. Like I said, both dividends
and buybacks.
>> What are you looking for? I mean, next
week, the jobs number is so important,
right? To uh the outlook for the economy
to to the Fed to the equity indexes. Uh
what are you looking for in the jobs
number?
>> That's a tough one. Consensus is down
around I think 80,000. I think that
you've seen so many revisions and there
are so many puts and takes right now in
the employment number. I'm not sure I
could widely dis disagree with what
consensus is, but it also it would not
be surprising to see a number that was
far off one way or the other because we
have had a lot of surprises in the labor
market. So I think that that's still
also a work in progress. There are a lot
of different factors that are going on
between immigration, AI, a lot of things
that are happening that are hard to
separate out each individual component.
So we just have to keep looking at data
and seeing what we can ascertain from
that data. So I think that's something
that is, you know, it's going to be a
big deal. That's why I said labor market
and inflation are going to be the
biggest movers of markets through the
next 3 weeks before Fed.
>> Absolutely. Well, not too much longer
that we have to wait to get those jobs
report numbers next Friday. Sarah, have
a great long weekend when you get there.
That is Alpine Saxonwood's chief market
strategist Sarah Hunt. Meanwhile, we're
just about 7 minutes into this trading
day, this Friday trading day ahead of a
long weekend. And of course, the final
trading day of August and it doesn't
look that good. The S&P 500 off by about
3/10en of a percent right now. We know
that we hit record highs yesterday, so
it's hard to complain in this market. We
might get some funkiness ahead of the
close, that month end window dressing.
But let's take a look at the individual
components right now. Autoesk is your
biggest gainer in the S&P 500 right now
on a points basis. I have to imagine
that doesn't happen all that often, but
the software company reported results.
They were good. They also uh raised some
guidance as well. That certainly helps.
Exon Mobile and then Bergkshire are some
of your bigger gainers as well. But then
you take a look at the downside and this
is the problem. Nvidia off by more than
2% right now. We've been talking about
how yesterday Nvidia was down. The S&P
500 was higher, but take a look at the
rest of the list. Broadcom, Meta,
Microsoft, you add it all together, that
is weighing on this index at a sector
level as well. So let's take a look at
that. Now you can see that actually
there's more green than red, but you
have energy at the top. It's just not
big enough to drag us that much higher.
Healthcare too, relatively small
waitings in the benchmark. Then you go
down the list. This is the problem.
Industrials off by 3/10en of a percent.
And then big tech, the tech sector off
by 9/10en of a percent right now, Matt
Miller. And that is why the S&P 500 is
lower at this exact moment.
>> Yeah, absolutely. And of course, we hit
an all-time high yesterday, so the trend
is still sort of um up and to the right.
Coming up, Celsius is getting a jolt
from Pepsi. We'll give you the details
on that deal next. This is Bloomberg
Welcome back to Open Interest. Let's
take a look at this market right now. I
was going to say rally, but that's not
what is happening right now. Now, the
S&P 500 off by about 3/10en of a percent
if you round. The NASDAQ 100 leading
losses on this Friday, off by more than
half a percent. The small caps
respendant with slight gains here. We
know it has been a banner August for
those small caps. But as we've been
discussing, we're heading into a
seasonally tough period for the entire
market. So, we'll see how some of these
lines change in the month ahead. But,
let's get right now to our top calls,
some of the analyst action in focus this
morning. And first up, Dollar Tree gets
an upgrade over at Telsey after it
reported better than expected earnings.
The firm says it can gain market share
and offset higher costs with its
introduction of $2, $4, and $5 food
products. Shares up very slightly here.
Next up, Marll Technologies is getting
downgraded at Bank of America. That's
after it missed earnings estimates.
Bailis sites lower AI growth visibility
shares off by a whopping 17%. And
finally, we have discount retailer
Burlington Stores getting some price
target upgrades on Wall Street after it
beat estimates. Bloomberg Intelligence
says that its stronger mix of brands are
attracting middle inome shoppers and
driving repeat visits from its core
lowincome base. Shares down about 1%
right now, Matt.
>> Yeah, they really haven't kept up with
the rest of the discounters. you know,
ever since uh you and I were talking
about, I believe, TJ Maxx,
>> I couldn't believe how well TJ uh X had
done over the last 5 years,
>> it's a beautiful chart.
>> And Burlington has truly underperformed.
So TJ Maxx is up 167% uh and Burlington
only 44%. That's total return on a total
return basis, obviously.
>> Good. Thank you.
>> Yeah. All right, Katie, thanks very much
for that. Now, PepsiCo giving Celsius an
energy boost. Pepsi is upping its stake
in Celsius. That's the energy drinks
maker to 11% and selling its North
America business of rockstar energy to
Celsius. Bloomberg's Crystal C covers
deals for us here at Bloomberg and she's
on this one as well. So Crystal, thanks
for joining us on this uh Friday in
August. What do we see here in terms of
uh Pepsi's interest in Celsius? So Pepsi
already has around 8 and a half% in
Celsius and now it's upping it to 11%.
You can obviously think that you know
energy drink is one of the most
lucrative uh non-alcoholic beverage
categories and um it's interesting that
Pepsi does not have a great track record
in here. So Rockstar like you said um as
part of transaction will become part of
Celsius and Celsius will now manage
Rockstar Alanu and then obviously
Celsius itself and it's also a
consolidation of the distribution
channel. So now Celsius instead of using
like hundreds of different distributors
will be using the Pepsico distribution.
So it's it's good for both sides. One is
getting like you said an energy boost
the other one is getting a consolidated
uh distribution channel.
>> So you take a look at the different
market caps here. PepsiCo has a market
cap of about $23 billion. Then you take
a look at Celsius. Uh it's just below
$16 billion. Could we imagine a future
where Pepsi just outright buys Celsius?
They have an 11% stake now.
>> That was my biggest question too. So you
can argue it both ways. So if you look
at Coca-Cola, they have a stake in
Monster Beverage that never turned into
I mean so far it has not turned into a
full-on takeover. So retaining an
economic stake while you know having the
distribution having the exposure to that
category without actually having to
manage the whole thing. Energy is quite
an entrepreneurial category. You have to
constantly come up with new marketing
strategy. They're newcomers all the
time. So you could argue that it's
actually better off for an energy
company or energy arm of a company to be
its independent entity and have its own
uh flexibility.
>> You know it's funny you're all over
every deal that we get no matter what
industry. So, in your job, you must
learn so much about each of these
individual industries when you're doing
the deals coverage.
>> I try. I try, Matt.
>> Um, it's impressive. It's impressive.
All right. So, where else should we look
for energy deals? Like, is there a
broader consolidation going on here? Is
somebody going to make a play for
Monster? Is, you know, Red Bull going to
look for other targets?
>> Red Bull is one of the largest private
company there is just just period. And
it's it's a huge company. It's coal
owned by
>> which by the way is amazing to me
because it tastes so disgusting.
>> You know, I've never had a Red Bull, so
I cannot comment on that. Um, but it's
one of the
>> Katie's never had a Dr. Pepper.
>> I've never had a Dr. Pepper. I've never
had an energy drink either. It's just
not I'm drinking lit literal coffee
right now. It's
>> Yeah, caffeine works.
>> Yeah. What's wrong with that?
>> But Red Bull, it's everywhere. They own
huge racetracks. They're sponsoring
major sports stars and all on this drink
that like people mix with vodka at
discos. I don't really get it. It's it's
it's owned by Austrians and a Thai
family. So, it's a private company. Um
for for a long time, there was uh the
most interesting IPO that could happen
is this. Um I mean obviously energy
drink as a category has been extremely
popular. There are a lot of research
reports saying how people are trading
iced coffee for energy drinks. So, this
is um this is definitely a category to
watch for. also to watch for it's rather
alcoholic uh makers would want to get
into it because there are like ABMBBF
for instance they distribute Red Bull.
So there are definitely overlap that
would make that deal make sense. Yeah.
So when we look at the Monster when we
look at Red Bull or any other company in
the energy space the buyer universe for
those are actually quite big.
>> I do just have to uh go back to
something you said discos. You're going
to the disco
>> well or whatever you call I don't know.
the clubs.
>> I don't know. I don't go there either.
Uh
>> the limelight. Is the limelight still
open? Is that still a thing?
>> I wouldn't be able to tell you. Good.
Crystal is also not sure. So, let's move
on. Let's talk about what the rest of
this year is going to look like because
you have seen this revival when it comes
to the M&A landscape. Also notable that
we're talking about this deal on the
final trading day of August. So, it
hasn't exactly been a sleepy summer for
deals. How does that set us up going
into the autumn? Maybe a little bit more
active time. So, this is probably the
most nerve-wracking weekend for any
deals reporter or like M&A watcher. Uh,
Labor Day weekend, the three-day weekend
tends to be the most intense M&A
weekend. Um, a lot of expectation for
what could come on Tuesday. Like you
said, this summer has been very active.
We've seen deals across like the energy
sector, the consumer sector. There's
been large company like the crafts that
has announced strategic review. you know
there are a lot that is happening that
you wouldn't have expected like eight
months ago or like last year just
because of the change of administration
and how people expect potentially there
could be you know interest rate coming
down so all of that is like creating a
very good M&A market and for us um
everybody every banker all of them very
optimistic about the rest of the year uh
we'll see whether that comes true but
Tuesday morning will be a very good
indicator
>> so for you for the deals team like every
year Labor Day weekend is
>> who gets a short straw. Like whose this
weekend?
>> Wow.
>> The bankers and our M&A reporters.
>> For me and Katie, it's a four loco
Friday.
>> Yeah, we're going to be at the disco. Uh
>> the disco. Yeah. Vodka and energy
drinks. Crystal, great reporting as
always. Really appreciate your time.
That is Bloomberg's Crystal C. Now
coming up, there's now more ETFs in the
US than there are stocks.
>> That bears repeating.
>> That bears repeating. We're going to
repeat it a lot. Coming up next, this is
Open Interest.
This is Bloomberg Open interest. I'm
Matt Miller. Let's get a quick check on
what stocks are doing on this Friday.
It's the last trading day of August. We
see the S&P 500 down 4/10en of 1%, the
NASDAQ down 8/10en of 1%. And frankly,
it's kind of surprising that we're not
off more considering the drop that
you're seeing in Nvidia. Look at that.
Down 3%. So, Nvidia obviously is worth
uh a lot of the S&P. I think 8% of the
S&P, 12% of the NASDAQ composite index.
And that should drag those indexes uh
down when it's when it's off that much.
Marvel Technologies off 16% as we've
been talking about. Disappointing
especially in the data center business.
Dell disappointing uh investors also
with its AI or lack thereof. Computer
sales. Um, Gap, uh, actually Gap finally
moving down. It was off 12% overnight,
then up 3% at the open. Now it's down
half a percent. Caterpillar, I believe
it's the world's largest maker of earth
moving equipment, saying it's going to
have 1.8 billion in cost due to tariffs.
And then a firm on the up right now, up
20% as more people buy now and pay
later.
>> There you go. A firm having a great day.
Let's uh switch gears here and talk
about the ETF industry because it's
eclipsed a new milestone. The US now has
more than 4,300 ETFs. That is more than
the current number of US listed
companies. I know. And you can see that
eclipse in that gorgeous chart. Uh those
lines coming together and now breaking
apart. Let's get straight to it with
James Safford. He is senior ETF analyst
over at Bloomberg Intelligence. He joins
us now with this story. So it's a great
chart and it's a pretty interesting
statistic, but does it matter? Is that
necessarily a sign of something that you
do have more ETFs now than you do have
individual securities listed on stock
exchanges?
>> I mean, it's a sign that the ETF
industry is growing and the tent is
getting bigger. But at the end of the
day, like the way I think about it,
there's like two main analogies that
come to mind. It's like there's more
recipes than ingredients out there or
there's more words than there are
letters. Like it just kind of is what it
is. And we we've seen this massive
proliferation of a whole host of
different products that we can jump
into. But yeah, I I don't think it means
all that much. It's just a very cool
statistic to put out there.
>> It's almost hard to believe that there
would be more ETFs than single stocks.
Is it because of single stock?
>> I actually think it is, but I want to
hear James talk about it.
>> Yeah. I mean, the single stock ETFs are
absolutely a huge part of this, right?
Like for the first 15 20 years of the
ETF industry's existence, it was like
giving you access to new categories or
core products of your portfolio. Now
it's a lot of like providing solutions
and end things that you want like
leverage single stock portfolios. Every
single ETF out there now it feels like
has some sort of covered call or income
overlay on it. Uh you can invest in AI,
pets, quantum stocks, like anything you
name it, you can invest in it. So the
thing is like the ETF industry is where
the fish are biting. That's where the
money is going. So you get this
spaghetti cannon effect where people are
just throwing as much as the wall and
whatever sticks and sometimes sticks it
gets billions of dollars. That's pretty
successful. So, even if a lot of them
fail, that doesn't matter. Though, a lot
of it is kind of like more like throwing
something at a fan with what's hitting
the market right now. But, uh, we'll
see. It's it's a fast growing industry
and it's the fastest growing year we've
seen for launches this year.
>> Yeah. And when you throw something at a
fan, you know what happens. But uh
looking ahead into the next couple
months and James we have less than a
minute left here but there's also the uh
notion that if we get approval for
multi-share classes where you can issue
issue ETF shares of mutual funds that we
could see thousand more ETFs come to
this market.
>> Yeah, I mean it's going to grow a lot.
Uh, one of the things that I didn't hit
on with for the growth is like the
biggest growth area, a lot of these ETFs
that are launching are actively managed.
And if you see all these active managers
be able to launch, you know, a share
class on the end of their successful
mutual fund, everyone's going to try to
do that for the most part. And then you
did the your favorite area, Katie, that
we're going to see probably well over a
hundred different cryptoreated ETFs come
to market over the next 12 to 18 months.
So, there's a lot of areas where this is
growing and it's it's a big tent. Um,
it's very successful if you're an ETF
issuer.
>> All right, James. Uh really appreciate
you stopping by on this summer Friday.
That is ETF analyst James Safford of
Bloomberg Intelligence. Because of the
Labor Day holiday, ETFQ will air on
Wednesday next week at 12:00 p.m. New
York time. But you can also read all
about the ETF industry in my weekly
newsletter. That is bloomberg.com/etfiq
newsletter.
>> What a great newsletter.
>> Thank you so much.
>> I subscribe.
>> You should. This is Bloomberg.
We are 30 minutes into the trading day.
Welcome to Bloomberg Open interest. I'm
Matt Miller
>> and I'm Katie Grayfeld. You have the
NASDAQ 100 now down 1% on the day.
Nvidia continuing to fall out of bed,
certainly not helping. But coming up,
Fed chair contender Christopher Waller
doubles down on the need for a rate cut
as fresh data out this morning helps
support his case.
>> Meanwhile, the Trump administration's
campaign against Lisa Cook intensifies
as she seeks an emergency hearing this
morning to block her removal.
>> And the September scaries stock bulls
bracing for what has historically been
the weakest month for the S&P 500.
>> All right, we begin with the economic
data crossing the Bloomberg terminal.
This morning we had PCE uh we had
inflation coming in bang in line with
expectations and now we're getting
University of Michigan uh data that's
actually missing the mark to some
extent. Um unless uh well no even on
inflation which is good news. Let's
break it all down with Bloomberg's
Michael McKe. He's our international
economics and policy correspondent.
Um a little bit less uh confidence in
terms of sentiment
than we had anticipated. Uh a little bit
better current conditions but um not as
bad in terms of inflation expectations.
>> Yeah, it's a minor move. It probably
statistically insignificant that
sentiment drops to 582 from 586 in the
preliminary number. Uh current
conditions 617 from 60.9 as you
mentioned a little bit better.
Expectations 559 from 572. That's where
we see a potential problem developing
for perhaps the economy as consumers
start to consider what's going to happen
down the road. But still they drop their
inflation expectations to 4.8% from 4.9%
and the 5 to 10year inflation number
goes down to 3 and a half from 3.9. So
overall it uh doesn't signal signal a
huge change in the way Americans are
looking at the economy but it does
suggest that uh they are wary about what
is going to happen next and that may be
because more talk of the tariffs came
through during the month. Yeah, and it's
interesting to wrap this data together
with what we got at 8:30 this morning,
which Matt mentioned. Of course, those
PCE figures coming in bang in line with
estimates. Not too much to make of those
numbers in isolation. But when you look
ahead to next week to 7 days from now
when we get the jobs report, the fact
that we pretty much had inflation come
in as expected today. How does that
alter the stakes if at all for next
week?
>> Well, the really good news is Monday's a
holiday, so we only have four days of an
enormous amount of data next week. ISM
manufacturing starts it off on uh
Tuesday, but it's the jobs report on
Friday that will really really get
people's attention because the Fed has
made a big deal out of following whether
or not the economy is slowing down in
terms of the labor market and the
unemployment rate hasn't changed much at
all, but the number of jobs created
certainly slowed last month and then we
had the big revisions to May and June.
So, the market will be watching that
closely. The Fed will be watching that
closely. And last night, Chris Waller
made the case that if we see a decline
in the a bad decline in the labor market
in that report, he could maybe even
support a 50 basis point cut, although
that's not his base case. He went on to
note this though that the ADP report,
which we'll get Thursday because of the
holiday instead of the usual Wednesday,
ADP sends their data on a weekly basis
to the Fed, which uses it to create its
own index. and he said in a footnote to
his speech last night that the ADP data
has been deteriorating all through
August. So maybe that's a hint that
we're going to get some bad news. Don't
know, but that is something to keep in
mind.
>> Well, it'll certainly up the scrutiny on
those ADP figures. Usually just seen as
sort of the appetizer uh to the non-farm
payrolls print. Mike McKe, great to get
some time with you. That is our intern
international economics and policy
correspondent. Meanwhile, Fed Governor
Lisa Cook is due in court at any moment.
She filed a motion for a temporary
restraining order against President
Trump, Fed Chair Jerome Pal, and the
board of governors. Now, this order
oust her from her position. Bloomberg's
Washington correspondent, Tyler Kendall,
joins us from outside the court
courthouse where the hearing is taking
place. And Tyler, I'm taking a look at
our top live blog on the Bloomberg
terminal. It looks like Lisa Cook's
lawyers have arrived there. What is the
latest on the ground?
>> Yeah. Hey, Katie. So, this hearing is
about to start any minute from now. As
you mentioned, we can confirm that Lisa
Cook's lawyers, including Abby Lel, are
inside of the courthouse, but at this
moment, it does not appear that Lisa
Cook has arrived or that she is set to
intend. But it's going to be something
that we're watching very closely because
today is all about Lisa Cook trying to
seek what's known as a temporary
restraining order and you outlined some
of it there. This has to do with
reinstating her uh into her job on at
least a temporary basis as the broader
legal case works its way through the
legal system. And now that broader legal
case really does have to do with this
issue of cause. We are going to talk
about cause a lot at this point because
Lisa Cook is alleging that President
Trump violated a federal law that allows
him to fire Federal Reserve officials if
there is sufficient cause. Cook's
lawyers say that there isn't, though, we
did get some glimpse into perhaps the
defense that we could see uh in a court
filing from her legal team last night
that said that the allegations of
mortgage fraud against her are not true.
However, if there were any errors on her
mortgage applications, that's perhaps
due to a clerical error and that Lisa
Cook did not have the intent to deceive
anyone and that no one was harmed. Uh,
that is known as a legal standard known
as materiality. I bring that up because
these are some of the factors that the
judge may be weighing here. I also
wanted to bring up that in the last hour
we heard from the Trump administration
itself in a court filing defending uh
its uh its uh invoking of cause here
defending its legal argument in this
case and I wanted to read just a brief
part from the president's statement
which says that it is up to the
president's judgment about what
constitutes cause it's not subject to
judicial secondguing he says and even if
some limited judicial review were
appropriate it would be necessarily
highly differential to avoid casting any
sort of constitutional doubt on this
matter. So, as you can see, the Trump
administration is really digging in here
and leveraging the executive branch's
power in its arguments.
>> All right, Tyler, thanks very much.
Tyler Kendall there in Washington. You
can follow developments on the hearing
with your Bloomberg terminal. Just type
TLIVgo or you can go to our website,
bloomberg.com.
>> There you go. Great place to go. I do
want to point out some reporting from
CNBC just now that uh Lisa Cook has is
retaining access to offices and devices
there. Of course, uh we'll expect to get
more news as it trickles in and we'll
bring that to you. But let's turn back
to these markets right now because
sitting to my left we have RBC's head of
derivative strategy Amy Wu Silverman and
she sees Trump trouble under the surface
of the markets writing quote I've had to
bring back my paddling duck analogy for
the market. Calm on the surface, but
rotations underneath. Amy, this is great
because we were actually looking at a
rotation chart on the terminal earlier
today. It kind of looks
>> RG
go. Yeah, for those following along at
home, kind of looks like a hurricane,
but this is what we've been talking
about that okay, looking past just the
surface level of the S&P 500. There's a
lot going on underneath the hood. Those
little tiny duck feet are, you know,
they're paddling away. And yeah, you
it's difficult to see it when you look
at headline VIX, when you look at index
volatility levels, they all look very
calm and smooth. But I think if you're a
single stock investor, you feel that
viscerally uh with the rotations. And
that can be factor driven. That can be,
you know, small cap versus large cap,
growth versus momentum. We've seen
multi-standard deviation moves in these
trades through this entire year and
likely this continues. Katie,
>> we actually had a story out yesterday
about hedge funds shorting VIX futures.
uh which I thought was crazy because we
were at 14 on the VIX. How much lower
can we go?
>> So what I would tell you is it's not
just about the headline VIX. It's also
about where realized volatility is and
you know sometimes you look at that VIX
and you say wow you know 14 13 handle
but then you have a realized at eight or
nine. So when when you kind of look at
that premium um they're always looking
at that in terms of what you're selling
against that premium to realize. So
essentially what has happened in the
past and it's been kind of a nothing
burger even though I think we had
expected a little bit more of a August
volatility pothole considering what
happened last year. It's the last day of
August I think and we have
>> so many nothing burgers. August is all
about what you expect to be a big juicy
USDA you know like Angus steak burger
turns into absolutely nothing. I mean,
Lisa Cook threatened Fed independence
under attack and yet rates do literally
nothing.
>> I I find that specifically pretty
interesting because I think of like the
left tails that are priced into the
market right now. And to me, if you
think back to the temper tantrum the
market had when Trump was potentially
going to fire Pal, I guess my question
is how is this different in the sense
that the ultimate question is about Fed
independence? like how is this a
different scenario from that context
versus PAL and yet the market had an
absolute tantrum during one of them and
again a nothing burger in the other. Now
could this just because we're in August
it's a little bit of a liquidity vacuum
perhaps. Um you're starting to see those
option prices tick up and skew. You're
starting to see that left tail get a
little bit more antsy. A little bit more
antsy here. Uh feels like we're
completely not antsy right now. So that
would make sense. But talk to us about
the trajectory of the rest of the year
because as Matt said, I mean, we've seen
a lot of risk events in the past couple
weeks. It doesn't feel like uh really
there's been too much of a fuss over any
of that. But then you think about just
the first couple weeks of September. We
have two inflation prints. We have a
jobs report. We have a Federal Reserve
meeting which to the point that we're
talking about is going to be highly
politicized. Are you seeing any sort of
grab for protection there?
>> Yeah. And maybe I would add one more
data point to that which is even though
September we don't really have earnings
kickoff in earnest. You do have a lot of
conference season starting. So you start
to get a lot of those single stock data
points companies management teams maybe
saying h you know my customer not doing
great. Um you're starting to see that
evidence in essentially the demand for
protection. But you know listen I'll
tell you one thing which is this has
been the same exact narrative since
liberation day. And the issue is the
risk to most investors have still been
that they've had to play catch-up. And
that's why I think, you know, it's a
little bit of a false tell because that
that again that right tail has actually
been more risky and most investors I
talked to have been playing catch-up and
they really don't want to get wrong
footed on the right tail still.
>> Absolutely. And I do want to ask I mean
what is the hedge in this market? Are we
looking in the wrong place? Because I
mean you think about gold for example,
it's at record highs but it's been going
nowhere for a few months. It seems like
people
>> since liberation day.
>> Exactly. It feels like folks aren't
really grabbing protection when it comes
to the treasury market. Uh that hasn't
exactly been a haven trade. Is it in the
derivatives market and the equity market
that people are trying to find those
hedges or is there just simply not
demand across asset classes? Well, I'll
give you one trade that I think is
interesting, which is obviously right
now I think the hope is that you're
going to get little bit more of a breath
widening small cap play. We've seen that
in IWM. Essentially the cost cos is
steepening. All that means is there's
really starting to be that pick up in
demand for upside. I've seen this movie
a lot of times. Okay, it's a little bit,
you know, boy who called small cap. And
so like I'm I'm still kind of skeptical.
And I guess what I would say is the move
we've had in IWM post Jackson Hole, was
that it or is there more? If you're in
the camp that that was actually it and
actually there's going to be more labor
problems, economic slowdown. Selling
that calling right now makes a lot of
sense to f to fund downside protection.
So you're getting it in a relatively
inexpensive way because of the fact that
people are really getting ready for the
small cap boom.
>> Yeah, we've been here before. to your
point, many times plenty of false dawns
for those little guys. Amy, great to get
some time with you. That is Amy Woo
Silverman of RBC.
>> Meanwhile, let's take a look at some of
the single stocks moving this hour.
We're of course keeping an eye on Nvidia
shares extend declines down about 3% at
this moment, which goes a long way to
explaining why the NASDAQ 100 down about
1% a little bit earlier.
>> Yeah, absolutely. Dell also um not
helping. It's absolutely decimated today
after P the PC maker booked fewer sales
of AI servers and reported profit
margins that fell short of estimates.
>> And more bad news. Marvel Technology
also dropping on a disappointing read
from its data center business. Shares
down almost 17%. Not really as much fun
as when we were talking about woof a
little bit earlier.
>> Yeah. Or when everybody was so bullish
Nvidia yesterday, like even when the
stock was down, every single person we
had on
>> price targets were coming up. price
targets like more than 10 analysts were
raising price targets yesterday and
everybody was like ah you know investors
are misreading this it's actually such a
bullish outlook and
>> feels like a long time ago.
>> Yeah. Coming up another stock on the
move this morning is Caterpillar. I
think I can safely say nothing to do
with artificial intelligence. We'll take
a look at the world's biggest maker of
earthmoving equipment as it sends a
tariff warning to investors. This is
open interest.
Let's get now to high interest. A look
at what's making headlines around the
world. The energy drink market is
getting shaken up as PepsiCo boosts its
stake in Celsius Holdings. It's a $585
million deal to raise its stake as part
of the transaction. Celsius acquires
PepsiCo's Rockstar Energy brand in the
US and Canada. And Ulta Beauty is
raising its fullear outlook after
reporting second quarter results that
topped expectations. But the beauty
retailer is warning of a potential
pullback by consumers. And you can see
here over the last two sh uh two days,
the shares are down 4.3%. And let's get
to Caterpillar. Just weeks after its
last quarterly report, the world's
largest maker of earth moving equipment
is warning investors it now expects
tariffs to have an even greater impact
on its business, costing the company as
much as $1.8 billion.
Uh Caterpillar shares, you can see over
the last two days, down 3.1%. Katie,
>> yeah, let's get a little bit more on
Caterpillar warning of those larger
thanex expected tariff headwinds.
Bloomberg Intelligence Industrials
analyst Chris Gelino covers the firm. So
specifically here, we're talking about
approximately 1.5 billion to$ 1.8
billion in terms of a tahariff hit for
2025. That was previously $1.3 billion
to 1.5 billion. So again, we're just
weeks out from that previous forecast
here. Chris, why do you think the
company is taking this approach now?
Yeah. So, as you alluded to, you know,
tariffs will be a slightly bigger cost
headwind this year than they previously
anticipated. And the revision really
seems to be driven by additional
clarifications around the section 232
steel and aluminum tariffs and
reciprocal rates on India. Um, as you
mentioned, you're looking at potentially
up to a$ 1.8 billion impact in 2025.
That's up, you know, 2 to300 million
from their prior view um earlier this
month. So, while we're looking at
incremental cost this year, we think
it's pretty easily digestible for CAT
and and probably, you know, more
transitory in nature as they really
haven't implemented significant cost
mitigation or pricing actions yet. I
suspect you'll see kind of more of those
measures start to flow through in 26 and
really, you know, that could probably
offset the majority of this impact. What
does CAT's footprint look like in terms
of manufacturing, Chris? In terms of uh
where it sources uh parts, especially
mechanical parts, and also where it gets
steel and aluminum.
>> Yeah. So, they have a footprint
everywhere, right? They are the largest
manufacturer of heavy equipment in the
world. Um they generate, you know,
roughly half their sales here in North
America, um and half international. In
in terms of where they source from, um
they do get a lot from the US. They're
actually a net exporter out of the US.
Um but they do import for components
from a number of countries. Um some of
the big ones are China, uh Mexico,
Brazil. Um they import some engines from
the UK and then India as well.
>> And is there something something to be
said for Caterpillar not waiting until
their next earnings report to give this
update? I'm reading reaction for example
uh from a uh a bar analyst actually
saying that while tariff headwinds
remain a challenge we appreciate the
proactive approach here Chris I wonder
what you make of it
>> 100% right to have the the increased
transparency as soon as you have the
data available that's always appreciated
by investors um at the end of the day
yes we're looking at incremental cost
headwinds this year I don't think it
ultimately changes the narrative you
know we're still pretty optimistic that
earnings will bottom this year. There's
a number of cyclical and secular
tailwinds that we think will drive
higher earnings into 26 and 27. The
backlog's at a record level. Uh we've
seen very solid order trends over the
past few quarters. Dealer inventory
still quite healthy. So these are all
positive leading indicators and getting
this information to the market as timely
as possible is certainly appreciated.
>> All right, Chris, great to get some time
with you on this uh Friday before a long
weekend. Christopher Chileino there of
Bloomberg Intelligence covers
Caterpillar for us. And it's nice, isn't
it, to focus on a company that doesn't
make microchips in Taiwan
>> or provide software solutions or
something along those lines. I will say
in the grand scheme of life, I mean,
talking about the proactive approach
that Caterpillar is taking. It's only
been a few weeks since they gave that
initial guidance. Now they're updating
it with bad news. Three and a half%
isn't that much in the grand scheme of
life.
>> They've been doing well this year,
right? They're up like 20% year to date.
>> Yeah. Total return uh to we're a total
return household up about 17% in 2025
outperforming the S&P 500 handily also
outperforming the industrial sector
overall. So this is a company that you
know investors have been rewarding.
>> I think if you click on the 5-year I
like to look at the 5-year uh you'll see
that they've done very well over the
last 5 years as well. In fact, the
shares have tripled in the past 5 years.
If you kept your dividends and spent
them on stuff at like Bath and Body
Works, but if you reinvested,
>> you would have a 222% gain.
>> Can't really complain with that when you
consider that the S&P 500 only higher by
about 98% of this time. It's always
interesting to see uh you know the
idiosyncratic stories who is actually
outperforming and I don't know if a lot
of people would have said that
Caterpillar
>> no is doing that. the world's largest
maker of heavy equipment. As Chris
Cheleno reminds us, not just one of the
biggest, it is the biggest. Still ahead,
tariff uncertainty also impacts the
boating industry. We'll talk with Steve
Mento, Malibu Boats CEO, ahead of Labor
Day weekend. This is Bloomberg Open
interest.
take a look at this stock market. We're
about an hour into the Friday trade. The
S&P 500 deepening losses right now. You
can see we're now down 7/10en of a
percent on the big benchmark. Look at
what though is trying to turn this uh
index green. Not doing a great job.
Bergkshire Hathaway higher by about
8/10en of a percent. That's not going to
be enough. uh contributing less than a
point to the S&P 500. Autodesk also
having a great day uh lifting the
benchmark a little bit here. But let's
look at the downside because this is
where all the action is. Nvidia off by
about 3% right now. Those losses
deepening. You also have Broadcom,
Microsoft, Meta adding to losses here.
Broadcom was one of the names that was
moving higher yesterday, helping us
finish at a record high, but uh it's a
different story on this final trading
day of August. Then you take a look at
the sector breakdown as well. We're
looking month-to- date which is super
fun. Communication services is your big
winner in August, higher by 5.7%
followed by consumer discretionary also
uh putting in a banner month up about
2.7%. But look at the downside. There
were more green bars than red bars in
August, but industrials real estate
leading losses. Coming up next, Malibu
Boats will speak to the CEO. This is
Bloomberg.
[Applause]
A number of things have stabilized. I
think sentiment and confidence has
stabilized since probably early April
overall. Obviously, we've seen the
equity market rebound significantly. So,
I think people are just feeling somewhat
more uh confident.
That was the CEO of Brunswick, Dave
Folks, speaking to us last week. Uh they
are the biggest maker of recreational
boats, I believe, in the world. But they
don't play in the space that Malibu
Boats absolutely dominates. That's
wakeboard towing. The company says it's
been a challenging period for the marine
industry, shaped by a difficult retail
environment, heightened tariff
uncertainty. Obviously, high interest
rates don't help, but that may all be
turning around right as Steve Manetto
comes to the end of his first year uh as
the CEO. So, Steve, uh first of all,
happy Labor Day weekend. Great to have
you here uh on this Friday. I'm sure
everybody's looking forward to getting
out on the lake um and and uh jumping on
some skis.
>> How do you see uh Malibu Boots after you
spent a year there? And as we come to
like an inflection point maybe for for
rates is that important to you?
>> Yeah, rates are important important to
us. I see Malibu boats in a good
position Matt honestly. Um you know as
we are you know looking at the market
and the consumer is is you know still
struggling a little bit with the
elevated rates and so on. We're in a
good position. We have capacity. We've
invested in our capacity over the last
few years. We have new models. We have
11 new models coming out in model year
26. We're excited about that. Got a
great team. Uh uh really really, you
know, top line of our dealer network.
So, we're in great position for when
there's a little bit more consumer
confidence. There's a little bit more uh
stability as as Dave's kind of uh you
know, snapshot there gave. It's kind of
more of the same for 26, at least the
start of our fiscal 26 uh before the
consumer really revs up and uh and
starts getting back to the full-blown,
you know, buying new boats.
>> Talk to us about the mix because as I
said, you dominate um wakeboard towing.
We're looking at some sweet video of
that here, but we also saw some big, you
know, uh outboard fishing boats and I
know you have stern drive uh business as
well. Where else do you want to take
market share?
>> Yeah, we we play in in a lot of
different categories at the premium
level. So, when you look at our our, you
know, our saltwater fish categories with
Pursuit, Cobia, uh, Pathfinder, those
brands play at the premium level. We've
been taking share in those brands. We've
had new boats introduced in those
brands. We actually just introduced our
Pursued S388, which is a phenomenal
boat. uh been able to spend some time on
on the ocean with that boat and uh you
know we're excited about where that
going. our co where that's going our
cobalt line is another big lake boat but
also foraying into the saltwater uh fish
area as well and uh we're we're gaining
share in our stern drives and then in in
in the toeboat segment we've been the
you know the category leader for a long
time and that really takes the
innovation that we're committed to and
the continual pursuit of making a great
toeboat
>> because you have um because you play in
kind of the luxury or the high-end
segment I I'm sure that most of your
ownership is through individuals uh
purchased boats. But I wonder about the
growing category of boat sharing these
clubs that people are hearing more and
more about. Is that a growth avenue for
you?
>> That is a growth avenue for us. We do
participate in the in the boat club, you
know, it's kind of called the boat club
markets. Uh we supply boats to the boat
club markets and it's a great way for
families to enjoy time on the water and
uh you know we're we're a good uh good
supplier to that type of business.
>> How how does the consumer look to you
Steve as we um you know get closer to
rate cuts obviously if rates come down
that's going to make it easier more
affordable for people to to buy into the
uh to the boating uh hobby. Um, is the
consumer strong right now? Because we
worry a little bit about the labor
market.
>> Yeah, the uh uh, you know, early, you
know, the PCE that just came in this
morning, right? Continue. The
inflation's a little bit up still. Uh,
the consumer is strong. Their balance
sheets are strong. They need it's the
consumer confidence in, you know, where
the where the, you know, econ where the
economy is going. Um, you know, interest
rates are still a little elevated in in
our space. you know, we're uh you know,
we're excited if the rate cuts happen.
There's been a lot of rumors and
promises about rate cuts, but we
actually have to see them. But I think
once we start to see them, the consumer
confidence will come back. The desire of
being on the water, being out with your
family and friends and, you know, being
outside, you know, doing activities
behind the boat has not died. It's just
we're looking for that desire to turn
into demand a little stronger than what
we've seen. And I think we're back in in
in that growth mode again. What what
about uh the tariff situation? I mean,
you were at Indian before this and I
believe at Malibu Boats, you're just as
much of an American manufacturer. So,
does it hurt you at all or is it maybe
even a tailwind?
>> Um tariffs for us are still still there.
It's about 150 to 300 basis points of of
cost of sales that we'll we'll have to
incur. Uh but we're doing everything we
can with, you know, looking at our our
efficiency of engineering, our
efficiency of manufacturing, working
with our suppliers to make sure that we
can, you know, mitigate passing much of
that on to the consumer. So, we're we're
working every day to to to bite into
that tariff, but we're not as impacted
as tariffs. Like you said, we're
predominantly a US manufacturer and we
predominantly uh get our supply chain is
is North Americanbased. So, uh, but it's
about that 150 300 basis points impact
on our business.
>> What's the seasonality like? It strikes
me that you you're the last two
businesses you've run, um, probably a
lot more popular in the summer months,
spring and fall as well, but less so in
winter. Um, what's your revenue stream
look like when it gets cold out?
>> Yeah, when it gets cold out, we do take
the dip. Uh, but think about how we're
we're uh positioned. You know, we do a
lot of business in the saltwater market.
So, it's boating year round, you know,
when you think about the saltwater
markets. But yes, you know, because we
sell to big lakes, you know, riverways
and so on. Uh, you know, you know, we're
affected in that, you know, off season,
so to speak, as we as we enter Q3 and Q4
of the calendar year. We slow down a
little bit. Q1 and Q2 is a stronger
period of the calendar as we head to
boat shows and actual the beginning of
the boating season up north. But year,
we're year- round boating in the south.
>> Steve, great to get some time with you.
really appreciate you joining us. Steve
Manto there of Malibu Boats, uh, giving
us the lowdown on the boating industry
and his company specifically.
>> It excites me.
>> I know,
>> you know, it's a lot of fun. Well, not
just boats, but motorcycles
for me is like a great interview to get
because he's run both of those
businesses and
>> he's the whole package for you.
>> Yeah. I just struggle to in the in the
winter I guess I can ski but it's not
kind of it's not really the same thing.
>> No, it's definitely different. I do ski
but I don't go on boats. So that speaks
to the differences there. But great
conversation of course ahead of the long
weekends uh which we are all thinking
about. Everyone who's watching sure is
I'm too. But let's take a look at these
markets. Why not? It's the final trading
day of August and we could see some uh
month end silliness as we get closer to
the close. We'll see what that means
because right now the S&P 500 off by
about 6/10 of a percent. We hit those
all-time highs yesterday now coming back
a little bit, but it should be uh gains
for August unless something crazy
happens, which would be the fourth
consecutive months of gains for the S&P
500. I believe the NASDAQ 100 also in
the hurt locker today off about 1% as
Nvidia losses deepen. And then you take
a look at the bond market, a little bit
of a sell-off. people not exactly uh
offsetting their losses there by
grabbing some Treasury protection. The
10-year Treasury yield higher by about
two basis points right now. Matt
>> Hurt Locker.
>> What a phenomenal phenomenal film. Have
you seen it?
>> No.
>> You haven't seen the Hurt Locker?
>> Man.
>> All right. Uh definitely check it out
because I think Michael Hartnett
actually stars in that movie
>> from Bank of America.
>> Yeah. Let's get a look at what's uh uh
coming up on the other side of this
break. Wait, first off, single stocks.
Yeah,
>> we've been talking about the gap all day
and but it's higher now.
>> It's higher. It was lower. Not as bad as
overnight. It was off 12%. It says
margins are going to shrink this year.
The the movement in GAP stock is simply
a mystery to us.
>> Simply a mystery. Traders deciding how
to feel. But JP Morgan did boost its
price target on the stock to a street
high of $32. Here's some good news.
Woof. Petco surging after it raised its
earnings targets for the year as the
company's turnaround starts to show
signs of progress. That's worth a 17 and
a half% gain.
>> We uh couldn't say any more about
Celsius,
>> but let's try.
>> But we will. Celsius climbing after
Pepsi boosted its stake and sold off its
rockstar energy business in the US and
Canada. So, there's a deal at the end of
this weekend. And as um Crystal C tells
us, Labor Day weekend is a hot time for
M&A. Yeah, those dealmakers uh not
taking the long holiday. It is an
interesting sort of structure though as
we discussed with Crystal whether or not
they could just do a takeover of
Celsius, but it seems like right now
they're happy to just have some economic
benefits. But coming up, summer may be
winding down, but travel shows no signs
of cooling off. Resort Pass CEO Michael
Wolf joins us next. This is Open
With summer almost officially behind us,
the travel industry is turning to the
fall. Resort Pass CEO Michael Wolf says
demand isn't slowing down, but a lot of
it is going local. He joins us now here
on set. Michael, great to have you uh
here in studio. Yeah, I thought it was
interesting that um so I could see using
a resort pass when I'm on vacation. If
I'm going to go to Cabo and rent a
house, I want to hang out at the resort
for the day, I I'll use your business.
But a lot more people are using Resort
Pass for where they live now.
>> Yeah, the vast majority of our
experiences are actually local. So for a
weekend like Labor Day, 80% of the usage
is people in their home markets. I think
that's because three times as many
people will travel within 50, 100 miles
as will kind of farther a field. So
people want this experience locally.
They want to have this moment of rest
and recharge, but they're doing it
locally.
>> That's a really interesting trend. And I
mean, is there any seasonality factor to
that? I mean, is it just natural that
people travel more in the summer and
that maybe they would grab more of these
day passes then?
>> I think so. But we're also seeing that
the shoulder season, so kind of going
into September, October is actually what
we're predicting some of our fastest
growth of the year because I think
people might have their longer vacation
in the summer, but then they don't
really have time off until maybe
Thanksgiving or even the holidays. So
they kind of want to take advantage of
like a single day off, a single moment,
you know, of rest.
>> What what uh kind of demand do you see
in the winter? Because we were talking
about all the things that we love to do
in the summer, which also stretched the
shoulder season, as you say, but in the
winter it's just like skiing and that's
it. Someone wrote in and said, "Try snow
biking," which I don't know what that
is, but I'm going to try it.
>> Well, we have we have a lot of other
activities on the on the platform. And
the way to think about it is that the
hotels want to attract locals year
round. So some of the use cases might
vary. So, for example, spa is one of our
fastest growing categories and that's
very much a year-round uh events that
happen at the hotel. We're doing a lot
more with just creativity. The hotels
have all these incredible spaces and now
we're partnering with them to come up
with really interesting events, whether
holiday light seasons, outdoor spas, uh
watching a football game, uh you know,
by by a pool. So, there's kind of a
variety of things that we're doing that
kind of make it more of a year- round
product.
>> So, who are your competitors here?
because you know my knee-jerk instinct
was to compare you to Airbnb, but that's
not exactly apples to apples.
>> Yeah, I think we're actually very much a
compliment to Airbnb. So, while we've
been talking about the local use case, a
large part of our business is also
travelers. They're staying at an Airbnb,
but what do they want to complement that
with for a day that trip? Maybe hotel
amenities or they're one of the three
million people who check out of an
Airbnb every day. Check out at 11:00
a.m. Where do you go? And so, instead of
sitting at the airport the rest of the
day till your flight out at 9:00 p.m.,
you now have a day of many. So, Airbnb
is actually very much a partner of ours
with the entire short-term rental space.
>> You have a couple thousand partners,
right? Um, Four Seasons, Fairmont,
Waldorf, Atorio, the list goes on and
on. Are you building on that? Are you
increasing your partnerships? And what's
the growth look like?
>> Yeah, very much so. You know, since I
was here a few months ago, we've added
an additional 500 hotels uh just in the
last few months. We're developing MSAs
with some of the largest hotel brands,
but we now work with pretty much all the
major hotel brands in the world. And a
lot of our expansion is not just
domestically, but as we uh explore some
of the other international markets.
>> What do those conversations sound like
when you're establishing partnerships
with new hotels because I have to
imagine some of the more upscale really
exclusive type of uh hotels that are out
there might not want to have people just
coming in for the day.
>> You know, I think what's interesting is
that a lot of those upscale hotels
already do have people coming in for the
day. often maybe at the restaurant and
maybe at the bar. And I don't think
traditionally the overnight guest really
knows if the person sitting next to them
at the restaurant is sleeping in room
312 or lives down the block. In fact, I
would say it adds a lot to the
experience to have locals kind of
intersecting with kind of the travelers.
Gives you a more authentic local
experience. So, at this point, you know,
we have the pleasure of working with
truly the most luxurious hotels in the
world. and they're able to charge a
higher rate for for the access to the
property because it's some incredible
amenities. But it's been incredible, you
know, fruitful uh relationship and you
know, our retention rate amongst our
partners is virtually 100%.
>> Michael, away from this specific
business and more to business in
general. We have more CEOs watching
Bloomberg than any other network. And
you are a CEO who's run a number of
businesses. Do you have any leadership
tips, any culture tips? Um, anything
that you put to use every time you go
and run a new business where you know
you can get success?
>> It's all about the hiring. You know, I
think there's a lot of talk about
building company culture once people are
there. And there are things of course
you can invest in, but by the time
someone enters your business, they're
they're an adult. They're kind of a
fully formed person. And so I spend a
lot of time, sometimes up to 70% of my
day is recruiting and really spending a
lot of time with our candidates because
it ultimately is the people that's going
to drive the success of our business or
or any business.
>> All right, Michael, great to get some
time with you ahead of what's going to
be a busy weekend. That is Resort Pass
CEO Michael Wolf. Now coming up, the buy
now pay later giant CLA is moving closer
to its public debut. Will investors want
to pony up? We'll explore. This is open
Fed Governor Lisa Cook's hearing is
underway in Washington. She is fighting
to remain in her position as the
president moves to ouster. So far,
there's been a lot of discussion
revolving around what for cause means.
Let's explore with Bloomberg's
Washington correspondent Tyler Kendall
joining us from outside the courthouse
where the hearing is taking place.
Tyler, what's the latest?
>> Yeah, hey Katie. Well, the arguments are
well underway here at the federal
courthouse in Washington as Lisa Cook is
trying to attain this temporary
restraining order which as you said
would let her stay in the seat. But it
was interesting enough to hear from her
lawyer Abri Loy Lel tell a judge earlier
that they are not expecting the Fed to
act today or until the court rules. And
that's now raising the question here on
if an TTRO is even necessary if Lisa
Cook can just maintain uh her position
for the time being. Now, as you said, at
issue here really is what constitutes
cause. And while this hearing doesn't
have to do with that broader legal
question, we are starting to get a sense
of what those arguments are going to
look like when this full court case
plays out. We heard from Cook's lawyer
saying that cause really should be
related to malfeasants while in office.
And he noted how these allegations
happened before she ever became a
Federal Reserve governor. He also had an
interesting quote saying that the Trump
administration has used fraud as a quote
weapon of choice for officials that they
don't agreement uh they don't agree
with. Clearly trying to broaden this out
when it comes to defending against the
Trump administration. Uh Matt and Katie,
we did hear from President Trump in a
court filing right before this hearing
began. Uh it really focused on this idea
that it is up to President Trump to
decide what contends as sufficient
cause. It's going to be something that
we're watching very closely here in
Washington.
>> All right, Tyler, looking forward to
following your reporting throughout the
day. That is Bloomberg's Tyler Kendall
with the latest in Washington. And of
course, you can follow developments on
this hearing by typing tive go on your
terminal. Meanwhile, we switch gears
here now to the IPO market because the
buy now pay later lender, Clara, is set
to launch marketing for its much
anticipated IPO as soon as Tuesday
according to the Wall Street Journal.
Joining us now with more Bloomberg's IPO
reporter and everything else, Bayy Lip
Schultz. Bailey, great to have you with
us. So much anticipated. Give us some
context on what that means because we
have been waiting for a while.
>> We've been waiting for Corner for a
while. They've been a company for
essentially a decade. We expected them
to go public back in April, tariff day,
kind of threw a a wrench in those plans.
One thing to call out though, a firm is
the comp that Wall Street is going to
use for this company. a firm has
essentially doubled since late March is
up another 12% today trading at the
highest level since January 2022. So
that is a good sign for this company.
One thing to keep in mind uh Bloomberg
had reported back in July that this was
a company that was going to start
marketing this uh deal on the road after
Labor Day at the time looking for a
billion uh dollar raise close to a 15
billion valuation. Some of our
competitors are out saying that's going
to potentially be closer to 13.5 to 14
billion. certainly one to keep an eye
on, but everything in the IPO market
right now post Labor Day is heating up.
We're expecting CLA via Gemini figure a
number of companies that should be
starting these processes uh sometime
next week or the week after.
>> But a firm is doing very well.
>> Does that mean um that CLA is also doing
well or does that mean that there's not
enough room for CLA?
>> Well, their earnings cuz they had to
flash their numbers. So, they they
updated their filing with second quarter
results that actually were pretty good
all things considered. So when I've been
talking to uh bankers on the deal,
investors uh meeting with the company
and management team, they're pretty
bullish on the outcome. The big question
obviously is with a number of these
IPOs, what do you launch on the cover?
What are you looking to raise? And can
you kind of encourage investors to walk
up in size and expedite not expedite the
process, but go into uh the IPO listing
day with a higher valuation.
>> And Billy, you mentioned something
about, you know, post Labor Day. This is
a conversation we were having with
Crystal C actually just about an hour
ago talking about how Labor Day weekend
is a big crunch time for dealmakers and
that Tuesday morning could be
interesting on the deals landscape on
the M&A landscape. Talk to us about the
IPO market because uh spiritually the
two are linked.
>> Yeah. When you look at when we came out
of the IPO window kind of dusting off
the winter as it were a few years ago we
saw ARM kind of kickstart and start fire
starting again. A few years ago, we saw
Reddit and Instacart in that group as
well. When we look at this batch of
companies, we're talking again buy now
pay later uh company CLA, Gemini, the
Winkl Voss twins uh crypto exchange and
custodian company figure which is also
uh kind of preaching its blockchain
activity. We're expecting a number of
these companies to start these processes
and meet with investors. But also across
the ECM suite, we're expecting some big
sellowns, some convertible bond
activity. It seems like a lot of
activity is going to kind of start
Tuesday and throughout the rest of the
week. Have you fully reaclimated
uh from your Tokyo trip?
>> No, I would my trip my bus yesterday
into the office two hours. My bus home
yesterday 2 hours. Tokyo 25 minutes
tops.
>> Well, I miss it.
>> Don't go back there. Uh especially not
today because Bailey and I will be doing
business week from 2 to 3:00 p.m. today.
And then Bailey is joining Scarlet Fu
for the close.
>> But dude, the problem is that you moved
to New Jersey, right? Because
>> what's wrong with that?
>> Well, that's the commute is just deadly.
I just would look at the same thing
except for I don't want to do that
commute especially if I have to go
through Penn Station
>> early. It would be fine. It would be
fine.
>> Yeah, but I'd still have to cross a
bridge and Lord knows when the governor
of New Jersey is just going to shut the
bridge down for whatever reason.
>> That hasn't happened in over a decade.
Okay, that was one time. Bailey Lip
Schultz, thanks for joining us. That is
Bailey Lip Schultz. Uh you can catch him
a little later on in the afternoon and I
will be with him for part of that. Do
you want to talk about markets really
quickly?
>> Um yeah.
>> All right. We're looking at markets uh
down but coming off of all-time highs
really ahead of Labor Day weekend. Maybe
people don't want to be long risk assets
after the incredible rally that we've
seen and ahead of a month that
seasonally is very bad for stocks.
>> That is true. But have a great long
weekend when you get there. Don't worry
about what's going on in the stock
market. Thanks for joining us. The
>> points guy. This is open interest.