00:00And right now we are two minutes away from the end of the trading day.
00:04Romain Bostic here with Sally Bakewell taking you through to that closing bell.
00:07It's a global simulcast.
00:09Carol Masser joins us from the radio booth.
00:11Emily Grafeo in today for Tim Stenevich.
00:13Welcome to our audiences across all of our Bloomberg platforms, television, radio,
00:17our partnership with YouTube here on a Thursday afternoon where bond yields are up and stocks are down.
00:23In fact, Carol Masser stocks, as we speak, hitting session lows.
00:26Yeah, exactly.
00:27I was just looking at another leg to the downside.
00:29I just keep thinking about some of these retail earnings that we've got.
00:33Walmart, certainly a bit of a sales slowdown, so you wonder what that says about the consumer.
00:38We talked to Putum Goyal of our Bloomberg Intelligence team.
00:40She said that underlying the information, actually some of it didn't look so bad.
00:46Yeah, I mean, when you think about higher rates, that is something that can crimp consumers.
00:51We talked about mortgage rates also earlier in our show, and it's something that people watch.
00:55And you can see those economically sensitive parts of the stock market getting hit the most today.
00:59Like you said, remain the Dow and the Russell 2000 as well.
01:02And if you take a look at the IMAP function on the terminal, there's a whole lot of red for
01:07the S&P 500.
01:09It's been a day where the market has navigated a huge number of forces, including long-term bond yields and
01:16a number of fiscal milestones.
01:18Yeah, and then we talk about the consumer as well.
01:21I mean, and obviously those results out of Walmart.
01:22We were talking with Michael Lass over at UBS.
01:24He was a little more optimistic, saying this is probably a bit of a one-off.
01:28But we are going to get another read on the consumer with raw stores after the bell tonight.
01:32And maybe it provides a little bit more clarity.
01:35Maybe it doesn't.
01:36But overall, investors, well, just pulling back just a little bit.
01:40We should point out, as typically this time of year in mid-August, volume is relatively light.
01:45But that jump that we saw in bond yields up about five basis points on that 30-year yield, taking
01:51a little bit of a bite out of the equity market.
01:53The Dow Jones Industrial Average losing about 686 points, or 1.3 percent.
01:58The S&P 500 down about 66 points, or nine-tenths of a percent on the day.
02:03The NASDAQ Composite down a full percentage point on the day, while the NASDAQ 100 down about seven-tenths of
02:09a percent.
02:10The Russell 2000, that's going to close in the red, down about 40 points, or 1.3 percent.
02:15All right, Romain, back to the large caps I go.
02:17S&P 500, definitely more of a risk-off trade.
02:19No surprise, perhaps, there.
02:21You did see, Sally, 342 names in the S&P 500, lower on this Thursday, 157 to the upside for
02:29unchanged.
02:29And you've got the IMAP, which is such a great visual always.
02:32It is a great visual.
02:33And, again, it is looking pretty red, with energy being the only sector where we're seeing a little bit of
02:38a green,
02:38lifting it by about 0.45 percent, information technology down about 0.45, and financials down about 0.88.
02:46And, of course, consumer staples down by about 1.8, as we had the very tough Walmart earnings, where they
02:53posted disappointing sales.
02:55All right, for those listening.
02:56Yeah, well, I'm just sorry to interrupt, Carol.
02:58But, I mean, speaking of Walmart, we are getting those earnings out of raw stores.
03:01Obviously, a much smaller player, but still one that is a significant read on the consumer.
03:05The second quarter numbers show the EPS coming in at about $2.66 per share, well above street estimates of
03:14a dollar.
03:15Excuse me.
03:16Let me correct that.
03:17That's versus a year ago when it had $1.56 a share.
03:21So an increase in EPS on a year-over-year basis.
03:25Net sales in the most recent quarter, that did come in slightly above estimates, $6.26 billion.
03:31The street, on average, was looking for about 6.16.
03:35We'll round that up to about 6.2.
03:37So 13 percent growth on sales, just slightly above estimates.
03:41Yeah, very interesting.
03:42This has definitely been an outperformer this year.
03:44Shares of raw stores are up about 27 percent year-to-date.
03:47We're seeing another pop to the upside.
03:49We just talked with our market guest, Skylar Weinard, over at Regan Capital.
03:55This was a name that he actually likes.
03:56He thinks it's a retailer that plays to a certain sector and actually has been doing fairly well and was
04:04looking forward to earnings here.
04:05It's been on fire.
04:06It's up 27 percent this year.
04:07Yeah, it's been on fire, and it looks like that optimism is going to continue.
04:11The company now saying they're raising their outlook for both the third and the fourth quarters,
04:15and that, at least in the previous quarter, the growth was supported by an increase in new customers and higher
04:21engagement from existing customers.
04:24In the prior quarter, Ross did pretty well with the 18- to 24-year-old crowd, the sort of
04:28Gen Z who were under pressure from inflation going down into the off-price retailer.
04:35Yeah, tell me about it, Sally.
04:37Wait.
04:37Is that because you're shopping there or you're shopping for someone there?
04:41I'm not touching that.
04:44All right.
04:44Let's go to some of the gainers, guys.
04:46You know, risk-off trade, certainly in the equity side of things.
04:49We saw rates going up.
04:49You know what was interesting?
04:50Some outperformance.
04:51Check out Bitcoin as high as $72,949 at its high.
04:59Right.
04:59Right.
04:59I know.
05:00You should check on your Bitcoin.
05:02Yeah.
05:03See what it's worth now, buddy.
05:04I forgot my password.
05:04Yeah.
05:05You know, you and Matt Miller, what's up with you two?
05:07It's long.
05:07Those passwords are long.
05:08Come on.
05:09Well, you know, that's why you write them down or you do something.
05:11Hey, so let's get to some crypto players, certainly in the space, riding high as a result.
05:17Let's not forget, though, the president's meeting with crypto CEOs and lobbyists.
05:22That has given this sector some momentum over the last two days.
05:26So let's go through it.
05:27Strategy up 7.8 percent, top in the NASDAQ 100.
05:31In the past two days alone, we've seen it up about 20 percent, still down about 76 percent
05:36from its all-time high back in late 2024.
05:39But nonetheless, some outperformance again with Strategy.
05:42Coinbase Global up 7.6 percent.
05:46And then you also had Circle Internet Group, that one, a 6.5 percent gain.
05:50And then moving on over to Galaxy Digital, that one up about 7.2 percent again.
05:54So that sector really has had a very strong, bullish two-day run here.
05:59And then just for something different, something simpler, Deere.
06:03Top name in the S&P 500.
06:05You can see that one up almost 7 percent in today's session.
06:08The manufacturer of tractors raising the lower end of its annual profit outlook, citing improvement
06:12in early order program trends, inventories for used equipment and adoption of its advanced technologies.
06:18It also, Emily, posted third-quarter earnings at BEAT, helped by a tariff refund.
06:22All right, well, we're going to stay on the retailers for the beginning of my decliners.
06:27Because I'm starting with Walmart, that stock closing down 9 percent today.
06:31It's, again, a mixed bag for all of these consumer-facing companies, at least for this quarter.
06:35For Walmart, the shareholders just weren't happy with the results.
06:39They did report the slowest U.S. sales growth in six years.
06:43Sales at U.S. stores opened at least a year, excluding fuel, rose 2.6 percent in the second quarter.
06:48That was shy of even the lowest analyst estimate compiled by Bloomberg.
06:52And the big box retailers said it was hindered primarily by pricing pressure in its pharmacy business.
06:58So, again, that stock falling about 9 percent.
07:01Moderna falling.
07:02Now, it did have a record day yesterday.
07:06But everything that goes up, I guess, has to come down.
07:09That stock finishing the day down 24 percent.
07:12It was the biggest full-day drop on record.
07:14But, of course, this is coming after yesterday's 177 percent climb, stemming from a clinical trial.
07:21When shares of the drug maker had basically more than doubled after the company said that a cancer vaccine cut
07:27the recurrence of melanoma in a large late-stage trial.
07:30But, again, that stock, maybe some investors taking some profits here.
07:34Finally, SpaceX.
07:36It's now about flat from its IPO.
07:38It did drop about 4 percent today.
07:42Today, a second tranche of the stock was released from a post-initial public offering lockup period.
07:47So, a couple people that we're in are now trying to get out.
07:51All right, guys, that is a wrap.
07:52Just a little bit of earnings and a look at the market trade.
07:54We'll see what tomorrow will bring.
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