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00:00And right now we are two minutes away from the end of the trading day. Romain Bostic here with Emily
00:04Grafeo taking you through to that closing bell. It's a global simulcast. Tim Stenevich joins us alongside Nora Melinda. Welcome
00:11to our audiences across all of our Bloomberg platforms, television, radio, our partnership with YouTube, fractional gains on the day
00:17for the major U.S. indices. Tim Stenevich with yields down, oil down as well, the dollar flat on the
00:24day.
00:24Yeah, I'm glad you went to oil. That's exactly where I'm looking. We see Brent down about 5% right
00:29now, 4.5% lower for WTI. But we were just talking about gas prices. I mean, still high relative
00:36to where they were just a few months ago. I mean, you still have these benchmarks up more than 40
00:41% this year. And the AAA gas price average up to 4.10 right now or close to 4.10.
00:47So that's something that folks are watching closely ahead of these midterms.
00:51Yeah, another thing that they're watching closely is that AI trade with a lot of folks looking ahead to NVIDIA
00:56earnings. Tim and I earlier in the show on Business Week just talked about the fact that this used to
01:01be a market Super Bowl, still a very consequential earnings report. But, you know, when you see a little bit
01:06less concentration, you start to see investors looking in other places as well. But if you take a look at
01:11the SOX index as we're heading into the closing bell, SOX up about 4%.
01:14Weisenthal had, like, didn't they have, like, a watch party somewhere at some bar in New York?
01:18I believe it.
01:19It was a different time. It was a different time, Romain.
01:22Now there are a lot of, you know, ways you can look at the AI trade, right?
01:26Absolutely.
01:27Yeah, sure.
01:28I'm always here working. I'm not partying.
01:30We should point out we are going to get some earnings from the software side out of Intuit and Zoom.
01:35Box also set to report, obviously, a little bit less consequential than NVIDIA.
01:39But we'll bring you those numbers as soon as we get them.
01:42Meanwhile, the numbers for the broader market, mostly in the green on the day, the Dow Jones Industrial Average, the
01:49S&P 500, each up about three-tenths of a percent on the day.
01:53The NASDAQ Composite and the NASDAQ 100, each up about six-tenths of a percent on the day.
01:59And the Russell 2000, getting in on the action on the day, up about 15 points, or about half a
02:07percent.
02:07We are getting a few earnings out right now, Intuit actually crossing the wire right now.
02:12Net revenue in its most recent fiscal quarter coming in at about $4.35 billion.
02:17That does appear to be a beat based on the average of estimates collected by Bloomberg.
02:23But here's your forecast going forward.
02:25The company says that for the full fiscal year that has already started, 2027 fiscal year, revenue will be in
02:31a range of $23.28 billion to $23.51 billion.
02:35The low end of that range is right around the average of street estimates.
02:39Average operating income for the full year, $8.06 to $8.15 billion.
02:44That's below the average of street estimates, which we're tracking closer to $10 billion.
02:49EPS, the range is 22.8 to 23.12.
02:53The street, that's well below what the street was looking for.
02:55They were looking for about $27 a share.
02:58And shares taking a hit in the after hours now as a result, down about 11%.
03:01Remember, this is the company buying TurboTax, Credit Karma, QuickBooks, MailChimp, Intuit, Enterprise, Suite, and more.
03:09I mean, this is a company down 46%, Emily, since this year.
03:14I mean, it's a consequence of the so-called SaaSpocalypse, at least as of now.
03:18Yeah, it's been tough for those software names.
03:19I do want to get back to the regular trading session, though, before we get back to earnings.
03:24Just taking a look at kind of how sectors fared out.
03:27It was mostly green when you look at the IMAP and the S&P 500.
03:31Information tech, communication services, materials, those were the leaders in terms of the S&P 500 groups.
03:37What was lower?
03:38Energy.
03:38We know that.
03:39Oil down about 5%.
03:40So those energy stocks getting dragged down.
03:43Staples and industrials also lower.
03:45Okay, we're waiting on a few more earnings, including Zoom and Box.
03:48We'll bring those to you as we do get them.
03:50In the meantime, do you want to take a look at some stocks that were higher today?
03:53In the S&P 500, the best performer was Moderna, up 14%, this after last week's rally.
03:59Shares cruising higher this year, but still down just about 60% from those 2021 highs, all-time highs in
04:06the COVID world.
04:07Shares actually moved higher today as a result of what happened last week.
04:10Wolf Research out with a note, upgrading the company to peer perform from underperform, citing the success of its melanoma
04:16vaccine trial.
04:18Analyst Alexandria Hammond saying the positive trial results de-risk the platform for Moderna.
04:24Shares of Moderna up the best performer in the S&P, 14% today.
04:28Also taking a look at shares of NVIDIA ahead of that report tomorrow.
04:32NVIDIA shares higher this year by about 14%, so outperforming the S&P 500, up 2.2% today.
04:39This is the biggest increase, or excuse me, this is an increase based on today's move, up more than 2%.
04:47The big question tomorrow, what is the state of the AI industry?
04:51Yes, there's other ways we can look, but NVIDIA is still the big player.
04:54What are the company's efforts to remain at the center of the AI frenzy?
04:58And finally, one of the most actively traded stocks today, Resolve AI.
05:01It's a company with a market cap just shy of about $2 billion.
05:04Shares were up more than 21% today.
05:07We can go ahead and round that up.
05:08The company did say Google has selected its proprietary distributed database technology for deployment at the infrastructure level within Google
05:16Cloud.
05:17It marks the platform's first major commercial deployment.
05:20Investors cheering that news.
05:21Shares up close to 22% today.
05:24Well, there were a few names in the red as we closed out.
05:28Following that closing bell, I'm taking a look at shares of Dick's Sporting Goods.
05:32A brutal day for this company.
05:33Shares of the company down about 31% on the day.
05:36That's the worst day ever for Dick's Sporting Goods and its lowest level since 2023.
05:41This all comes after the Foot Locker chain that it acquired last year, showing that it's continuing to struggle and
05:47really raising broader doubts about the sneaker market, the sneaker industry.
05:52The company is saying that the footwear market has become increasingly promotional last quarter.
05:56That's after brands upped discounting on their own websites.
05:59And the company is seeing a shift to brands like Uggs and Birkenstock.
06:03If you take a look at shares of Nike, also falling down about 3% after the closing bell.
06:08And we know Nike is a supplier to both Dick's Sporting Goods and Foot Locker.
06:12So certainly seeing some investors shifting out of that name.
06:15When was the last time you were in a Foot Locker, Nora Melinda?
06:17I was just talking about this earlier with Tim.
06:19I can't remember the last time I was in a Foot Locker or the last time I was in Dick's
06:22Sporting Goods.
06:23Wow.
06:24I tend to be online.
06:25Dick's not huge in New York.
06:27Yeah.
06:27Well, Dick's is big.
06:28And the thing is, like, we talk about this idea of a company, when they made this announcement back in
06:34early 2025, May of 2025, it was pretty widely derided.
06:38I mean, Dick's was growing.
06:39It was growing 4%, 5%, 6% on a comp sales basis.
06:42Foot Locker was shrinking.
06:44It had a negative sign in front of its comp sales number.
06:46And everybody said, why would you buy this company?
06:48And now here we are, more than a year later, and, well, those questions are still being asked.
06:54I mean, we had Anthony Giacombo on from Loop Capital, who, I mean, he was pretty blunt, Emily.
06:58He basically said, I don't know what the heck they're doing.
07:01Yeah.
07:01And I'm cleaning it up.
07:02Family friendly.
07:03And you have to remember, too, like, how much of this is also just due to that weakening consumer.
07:07We do have some earnings, though, Romain.
07:09Yeah.
07:09We have to get to.
07:10Let's zoom in on Zoom communications in the most recent quarter.
07:13It does look like most of the metrics did come in, either in line with estimates or slightly above.
07:18For the second quarter, revenue of about $1.28 billion.
07:21The street was looking for about $1.27, so a slight beat there.
07:24Similar story under the adjusted EPS basis.
07:27But let's go straight to the guidance.
07:29For the full year, for the full year, the company says that for the full year revenue, look for a
07:34$5.09 to $5.10.
07:36So basically $5.10 billion, its previous guidance was for roughly about $5.09, so slightly raising that just a
07:44bit.
07:45Similar story on the operating income side.
07:47It had given a range of $2.07 to $2.08.
07:50The previous estimate was for $2.07, so the top end of that range coming in slightly above that.
07:55Most of the numbers pretty much track in that same vein here, basically either just above street estimates by a
08:02few bucks or so or maybe just right in line.
08:05The shares lower by 4%.
08:06All right, you're watching Zoom.
08:08I'm watching what's happening with Box in the after hours.
08:11The shares for Box, the content management platform, down about 8% in the after hours.
08:17Taking a look at the company's latest report, the outlook, the company seeing fiscal year adjusted earnings per share about
08:23$1.54.
08:24They saw about $1.56.
08:26The estimate was for $1.58, so that coming in light, shares down about 6.4%.
08:31In addition to that, the company sees fiscal year revenue coming in at $1.29, or excuse me, $1.29
08:37billion, saw $1.28 billion.
08:40The estimate was $1.28 billion, so as far as the outlook goes, a beat on the top line but
08:45a miss on the bottom line.
08:47The company sees third quarter adjusted EPS about $0.39.
08:50The estimate was for $0.39.
08:52Second quarter revenue coming in above estimates at $321.1 million.
08:56The company sees Q3 gap EPS at $0.12.
08:59That matches expectations.
09:01Shares down about 4.6%, 4.5% in the after hours.
09:04This has got some questions, too.
09:05I mean, you look at Box and Zoom and Intuit.
09:08Obviously, three different companies, but to a certain extent, kind of all dealing with some of the same issues with
09:13AI
09:13and some of the new tools that are out there that, to a certain extent, chip away at some of
09:19the moat that they might have had.
09:20You know, I don't know how far this goes.
09:22I mean, we had a great analyst on from Goldman yesterday, Gabriela Borgias, who kind of talked about this idea
09:27that the SaaSpocalypse is overdone
09:28and that some of this AI build-out will actually end up benefiting them as it will actually increase usage
09:33on some of their platforms.
09:34We've had some folks talk to us about that as well, but, you know, we're not seeing that play out
09:38in the public markets yet.
09:40And look, every stock, every company is different, too.
09:43Yeah, and don't forget, I mean, everyone's talking about NVIDIA tomorrow.
09:45We get Salesforce tomorrow as well.
09:47Yeah.
09:47Not to, I'm sure they'll get overshadowed, but definitely an interesting read on that side of the trade.
09:52All right.
09:52Salesforce shares, at least this year, have still taken a pretty big hit, down about 22%.
09:57You're a slack guy, aren't you?
09:59No.
10:00It depends.
10:01I mean, it depends on, yeah, I have slacked before.
10:04How's that?
10:05Okay.
10:05But, you know, I'm all about the Bloomberg Terminal.
10:07Yeah, he's the IB guy.
10:08It's for me.
10:09Bloomberg, come on.
10:09Tom Sucunda, thanks.
10:10What's a slack?
10:11All right.
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