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00:00And right now we are two minutes away from the end of the trading day.
00:03Romain Bostic here with Isabel Lee taking you through to that closing bell.
00:07It's a global simulcast.
00:08Carol Masser joins us from the radio booth.
00:10Emily Grafeo in today for Tim Stenevich.
00:12Welcome to our audiences across all of our Bloomberg platforms, television, radio,
00:16our partnership with YouTube, the S&P 500,
00:19trying to recoup some of the losses from the previous three sessions,
00:22but only up right now about 15 points or two-tenths of 1%.
00:25Yeah, I feel like it didn't get much from those Fed minutes, right?
00:27That's how we kicked off our 2 o'clock hour here on Bloomberg Businessweek Daily.
00:31And those minutes, though, did show that many officials said rate hikes may be needed.
00:36But it sounds like, Emily, there's a little bit of debate going on there.
00:40Yeah, there's a debate.
00:41And at least for the two-year yield, it's not really making moves right now.
00:46But a lot of focus today on that flattening, relative flattening in the yield curve
00:51and the longer-end yields moving lower.
00:53I was just telling Romain that Sam Stovall said that the bond market is supposed to be quiet
00:57and when it's not, that's a big deal.
00:59And it's definitely not.
01:00It's certainly been making noise.
01:01Long-term yields are climbing across the U.S. and other developed markets.
01:04France, Germany, and what else?
01:05There's one country I'm forgetting, but definitely a global movement.
01:09Yeah, and it kind of sets up kind of this idea,
01:12and we've been talking about it a lot on the close and on the simulcast,
01:15just the outsized importance that some of these macro and economic issues
01:19are going to start to have on the market,
01:21relative to what we saw in the first few months of this year,
01:23where it really was just about, hey, you know, just look at the AI CapEx spend
01:27and follow that and ride that wave.
01:29That might be changing.
01:30Yeah, absolutely.
01:31I do feel like that narrative around AI in total continues to evolve,
01:35and you see it also play out in the trade domain.
01:38All right, so a big drop in long-term yields here on this Wednesday afternoon.
01:43That's putting pressure on the dollar, which is down about almost a percent on the day,
01:47as measured by the Bloomberg Dollar Spot Index.
01:49And, well, for everything else, though, it's provided a nice little bit of a boost.
01:53Most of the equities in the S&P 500 are in the green,
01:56and so the S&P 500 finishes in the green.
01:59Right around 7708 and change, up 17 points or two-tenths of one percent.
02:03The Dow up more than 100 points or two-tenths of one percent.
02:06The Nasdaq composite is up two-tenths of one percent,
02:09though the Nasdaq 100 is down by two-tenths of one percent.
02:13And the Russell 2000 getting in on the action,
02:15that's actually your relative outperformer, up by a half a percentage.
02:18Yeah, kind of interesting to see that.
02:20I'm going to go back, though, to the large caps, if I may.
02:22The S&P 500, you mentioned it, Romaine.
02:24If I look inside the index, almost an even split is about 285 names
02:30gaining ground on this Wednesday, 216 to the downside, two unchanged.
02:34It may look like an even split, but tech is our biggest loser.
02:38You see a big red there, tech down by nearly two percent or even more than two percent.
02:43And you're seeing also communication services and financials in the red.
02:47Some of the bright spots, consumer staples, energy, materials,
02:50all higher by something like two-tenths to three-tenths of one percent.
02:54All right, guys, let's get to some of the individual gainers, if I may.
02:57Let's bring up Moderna, because this one is definitely an outperformer.
03:00Top gainer, in fact, that we saw in the S&P 500 today.
03:04That came up 30 percent.
03:07It's up about 375 percent year-to-date.
03:1013 percent of the float is short.
03:12I've got to check that, that that's the year-to-date, but I'll do that in a moment.
03:15The stock's biggest interest in the gainer.
03:17You didn't check this in advance?
03:18I did.
03:19I just, you know, I have to tell you, no, it's in my notes.
03:22And then looking at it, I'm like, I just don't even believe it.
03:24It's actually up 491 percent year-to-date.
03:27So there you go.
03:28Definitely outperformance.
03:29You've got 13 percent of the float short.
03:32This is happening after the biotech company said a personalized cancer vaccine combined with
03:37partner Merck's Keytruda helped cut the recurrence of melanoma in a large late-stage trial.
03:43So this study provided the strongest evidence yet that messenger RNA technology will have
03:48a successful second act, and the companies will discuss filing for approval with regulators
03:52and present the data at an upcoming medical meeting.
03:55So this provides certainly some tailwinds for this company that's certainly had its ups and downs.
04:00Estee Lauder, speaking of ups and downs, let's get to that one.
04:04This was a top gainer, too, among the S&P 500.
04:08Number two gainer, the stock, actually, we're going to bring up Estee Lauder.
04:12I don't know if we've got it.
04:13That was Moderna.
04:14So let me bring up Estee Lauder on my terminal.
04:17And Estee Lauder.
04:18What do you guys do without me?
04:19So Estee Lauder shares up 16 percent, Carol Nasser.
04:22Best day since November of 2011.
04:24And I should point out, I just had an interview with the CEO of Estee Lauder, how he keeps the
04:28momentum going.
04:29Would you like to do the rest of the list?
04:30No.
04:31Okay.
04:31Thank you very much.
04:33All right.
04:33Well, shares jumping after the results beat estimates and ended a run of three straight
04:37declines in annual revenue.
04:39Company reported revenue of $3.6 billion in its fiscal fourth quarter, and organic sales
04:43growth accelerated to 5 percent.
04:45China was an element.
04:46But this is a company that owns many, many brands and has really struggled.
04:50Keep in mind, the stock is down, or at least it was down about 74 percent from a high back
04:55in early January of 2022.
04:57So still has some room to gain back.
04:59I want to mention, too, Twist Bioscience and also the life science and tools area.
05:05Twist Bioscience, you can see up 22 percent in today's session.
05:09This company rose high, rose to its highest, excuse me, in more than five years after Anthropic
05:15chose the drug developer as one of its independent evaluators to help produce AI-designed proteins
05:20at scale and test these designs for binding.
05:24So it's interesting.
05:25It has to do with DNA.
05:27So just kind of an interesting trade.
05:29I didn't mean to be sharp with you, Romain.
05:31I was just, you know.
05:32That's all right.
05:32You know, it's my first day back.
05:33I know.
05:34Obviously, you've had a rest.
05:36I should also mention Hyperliquid, I think, was also a lot higher.
05:40Yeah, forgive me.
05:41That was my bad.
05:42You did put that up first.
05:43It was up 30 percent in today's session.
05:45And this happened after President Trump said in that meeting with crypto execs that the CFTC
05:50chair is working to bring Hyperliquid to the U.S.
05:53And our own Stacey Marie Ishmael said that that was a pretty interesting development.
05:57So again, yeah.
05:58And this one has been an outperformer this year.
06:00All right.
06:00All yours.
06:01All right.
06:01Let's head to the decliners.
06:02I'm starting with TJX.
06:03Of course, this is the parent company of TJ Maxx.
06:07HomeGoods, it fell today.
06:09It was down about 4 percent.
06:10The clothing retailer reported second quarter comp sales for its MarMax segment, which missed
06:16estimates.
06:16So the MarMax segment is the parent of TJ Maxx and Marshalls, the names we know well.
06:22Actually, the top line comp sales did beat.
06:25And the HomeGoods comp sales also beat estimates.
06:33Tons of mugs or frames, whatever you can get at HomeGoods.
06:38But nevertheless, the stock.
06:39What are you talking about?
06:40Have you ever been in HomeGoods, Emily?
06:41It's more than just figurines.
06:43Oh, my God.
06:44It's pillows.
06:45You can get like.
06:46Oh, my God.
06:47How dare you?
06:47Cajun, pistachios.
06:49Should we tell us?
06:50Yeah.
06:51No.
06:51We have to take you to a TJ Maxx.
06:54There's so much that there's furniture.
06:56No, there's a lot there.
06:57But it's a lot of.
06:58There is this like running joke on TikTok about like.
07:01Very hyper specific things that you can only find at HomeGoods.
07:05I won't get it to you right now.
07:06Where else am I going to get my live, laugh, love?
07:08Exactly.
07:09Wood panel.
07:10Wood panel with a Santa on the side holding it up.
07:13Family means everything.
07:15Those good panels.
07:16Okay.
07:17So TJ Maxx group lower.
07:19Viking Holdings was another decliner.
07:21The share is down about 8%.
07:23Management of the River Cruise company.
07:26Trying to soothe investor concerns today about the impact of low water levels in the Danube and Rhine rivers.
07:33This is an issue that's prompted the cruise line operator to issue vouchers to some travelers.
07:39So shareholders not too happy about that kind of update.
07:42The company, though, did say that about 53% of its capacity for 2027 has been booked while increasing its
07:49offerings across river and ocean products by 15%.
07:52So this is a luxury consumer signaling at least some resilient demand for the luxury side.
07:58Whereas you think of a TJ Maxx group.
08:00I mean, I feel like that's kind of for everyone, but definitely known to be more on the lower income
08:06side.
08:07Definitely not a luxury product.
08:08But both reads from the consumer here.
08:10Maybe not looking too hot, at least in today's trade.
08:13Okay.
08:13And then finally, white fiber.
08:14This is a smaller cap name.
08:16It's about just $1 billion in market cap.
08:18But it did fall about 21% today.
08:22They priced a private placement, $270 million of a senior note offering to build out AI infrastructure.
08:31So this just stood out to me because, again, we're seeing AI companies of all different shapes and sizes tapping
08:39the debt markets.
08:40Eventually, you have to see maybe some questions from the equity shareholders about just what all of this is needed
08:46for.
08:47Well, speaking of debt markets, we have to talk about the Treasury markets, the big drop that we saw on
08:51the long end of the curve, down 10 basis points, 11 basis points, excuse me, on your 20-year yield,
08:5610 basis points on your 30-year yield.
08:58The biggest one-day drop that we've seen in yields on the long bonds since late June.
09:04Obviously, all of this tied to Scott Besson lifting the Treasury's buyback cap, doubling it, I should say, from $2
09:10billion to $4 billion.
09:12Liquidity measures, as he puts it.
09:13But obviously, a lot of questions right now about just what type of mechanisms the Fed is using to sort
09:19of keep a cap on yields and, more importantly, why.
09:22Yeah.
09:22So let's get to some stories that are definitely on our radar.
09:25This one caught our attention.
09:25Actually, our Alexis Christophorus talked about it on Surveillance this morning.
09:30We know the pushback on a lot of the AI data center build.
09:33Well, Liquid Death and Garage Beer have launched a campaign called We Want Your Pee to help AI data centers
09:41cool down without using large amounts of water.
09:44So it features a video spot with Garage Beer co-owner Jason Kelsey, you know him well, collecting his urine
09:50in a bottle and singing a song about sending pee to data centers.
09:53Before you get upset and you're like, oh, my God, what has happened in this world?
09:57Keep in mind, it's a joke, everybody.
10:00But they just.
10:01Obviously, I would hope so.
10:03We live in an interesting time, Romaine.
10:05Well, yeah.
10:05Well, so we're giving them a lot of attention for our radio viewers.
10:08They're walking through a meadow right now with a farmer and a skateboarder for some reason, all holding up large
10:14bottles of their own liquids.
10:17She's got a straw.
10:18One of them had a tumbler with a straw.
10:20Yeah.
10:20There's a guy with a briefcase, some guy on a mobility scooter.
10:23I don't know how you get that through a meadow.
10:24Well, I should put out this story by Adweek.
10:26Also just points out that about seven out of ten Americans opposed data centers being built in their communities.
10:30So it's kind of having some fun with this.
10:32It's reminding everybody of the impact.
10:34I'd never thought I'd talk about this as a markets reporter, but there's the first time for everything.
10:39We talk about everything here.
10:40Yeah.
10:41No doubt about it.
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