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00:00And right now we are two minutes away from the end of the trading day. Romain Bostic here with
00:04Sally Bakewell taking you through to that closing bell. It's a global simulcast. There's Carol
00:08Master. There's Tim Senevic. Welcome to our audiences across all of our Bloomberg platform,
00:12television, radio, our partnership with YouTube. A third straight day of softness in U.S. equity
00:17markets. Carol, as I think everyone, including equity investors and everyone in between,
00:22is probably a little bit more focused on the bond market. Yeah, absolutely. I mean,
00:26this is something that we've been talking about a lot. We did have an auction today that went a
00:30little bit better than the five-year yesterday. But having said that, whether it's higher energy
00:35prices, concerns about inflation, I think the expectation is we are going to see more of a
00:43Fed interest rate cycle to the upside, how long it goes on. And we're definitely seeing it play out
00:48in the bond market. We just had a fascinating conversation with Marianne Bartels over at
00:52Sanctuary. And she touched on this exact thing. She ran this regression that talked about the
00:57relationship between the 10-year Treasury, Sally, and oil prices. And she said that for every $1 per
01:04barrel increase in oil prices, the 10-year Treasury yield has risen by roughly 1.38 basis points. So
01:09a really a direct relationship between the two, at least of late. It's also interesting to see how
01:14materials have sold off today as the U.S. and China just agreed to extend their trade truce,
01:20which the market is reading is good news for diplomacy, but maybe bad news for anyone betting
01:25on American rare earth independence, because investors may see this as a potential increase
01:30in access to Chinese supply and hence lower prices. The yields higher on the day, so too,
01:35is the dollar. Oil prices also elevated with WTI at $95 a barrel. Brent crude up 4% on the
01:41day
01:42to $107 a barrel. And equities basically treading water, trying to stay above the line.
01:48The Dow Jones Industrial Average is going to close below that line on the day, down roughly about
01:53160 points or about three-tenths of a percent. We're going to call the S&P unchanged. It takes
01:58a while for these numbers to settle, but right now we're sitting at 7,704. That's down about two
02:02points, so less than a tenth of a percent lower. The Nasdaq Composite also unchanged on the day,
02:08adding about three points. Similar story for the Nasdaq 100. The Russell 2000 down about a tenth of a
02:14percent. All right, so back to the S&P 500. I go, definitely signs of a risk-off trade today.
02:21As we said, the focus has really been on what's going on in the Treasury trade. But so investors,
02:26328 names, Sally, in the S&P 500, lowered it at 174 to the upside, one unchanged.
02:32We see, if we look at the IMAP, we see three cyclical or growth sectors, IT, materials, industrials,
02:39and consumer discretionary are dragging the index down somewhat today, which is consistent with
02:44concerns about rising rates or a potential growth scare. And of course, Oracle fell some four percent
02:50after Bloomberg reported about its force majeure notice. Energy is a clear outperformer, driven,
02:56of course, probably by oil prices moving higher. All right, so let's get to some of the individual
03:00gainers, if I may. This is the number one gainer in the S&P 500. On this Thursday, we're talking
03:07about Everpure. Ticker is P, and the stock is, was at its high, almost up 20 percent intraday,
03:15finishing the day with a gain of about 11 percent. The data storage company forecast revenue for
03:192028 that exceeded the average analyst estimate. Analysts like what the company had to say, yet
03:25Citi raising its price target to 160 from 130 a share. B of A raising its price target to 180
03:31from 150 a share. The stock closing just below 122 a share, so there's some room to the upside.
03:38Stock is up more than 90 percent year-to-date. Remember, this name joined the S&P 500 just on
03:42Monday, so we've seen quite a bounce. I think it's up about 24 percent, give or take a little bit,
03:47for the week overall. We've got one more day to go. All right, let's go on over to GoDaddy,
03:52ticker G-D-D-Y, Gen Digital. It's the company that makes Norton 360 antivirus software. It's made
03:58an offer for GoDaddy in a deal that would roll up a number of major legacy software brands. This
04:03is according to a report by the Financial Times. You saw GoDaddy shares move up about 4.6 percent.
04:10FT going on to say that these talks are in early stages may not lead to a deal,
04:14citing people familiar with the matter who didn't name who those folks are. But nonetheless,
04:19we did see some movement in this name. And then I just want to throw one more. Number one gainer
04:24in
04:24the NASDAQ 100, Nebius Group, it's an AI cloud firm, you know, a neo cloud. It's been building
04:31out data centers to meet demand for AI. It was raised to outperform by B&B Paribas. Price target
04:37up to $3.99 a share from $2.60. Stock closing at $2.43 and change. Stock is up almost
04:44200 percent
04:45year-to-date. So we know this area has been on quite a tear. All right, that's a look at
04:49the gainers.
04:49Okay, well, let's talk about some of the decliners. Sally mentioned this one. It's an important one to
04:52get to. This is like the most read story on the Bloomberg. It's about Oracle. Finishing down
04:563.5 percent, the company sent that notice citing force majeure to the project developer,
05:01a unit of Blue Owl capital regarding a massive data center being built in New Mexico.
05:05An event tied to meeting power commitments could result in a delay on rent for Oracle,
05:10but the company would still have to pay other costs and owe the rent for the full lease term
05:13once payments begin. Shears of Blue Owl also fell today. And Carol mentioned Gen Digital and
05:19GoDaddy. Well, GoDaddy may be higher, but Gen Digital took a hit on that news down more than 12%.
05:25Again, the company that makes Norton 360 antivirus making that offer for GoDaddy in a deal that would
05:30roll up a number of major legacy software brands. This, according to the Financial Times, the deal
05:35might not happen, but as we often see in these announced deals or the reported deals, the acquiring
05:41company takes a bit of a hit. Shares down today by 12%. And speaking of some M&A or maybe
05:49not some M&A. MGM Resort shares fallen today by 11%. This after People Inc., Barry Diller's People
05:56Inc., dropped plants to acquire the rest of the casino giant. Here's what Barry Diller said.
06:01We didn't feel the mix was coming together in the way we had hoped and have decided not to pursue
06:06taking the company private at this time. MGM Resort's down 11% today.
06:10One other mover, and this is in the after hours trade, not the cash trade. It's Akamai up about 13%.
06:15A redhead crossing the Bloomberg Terminal. Anthropics striking a $12 billion deal with Akamai
06:21for AI computing. Akamai also talking about some of its longer-term CapEx plans as well. We'll get
06:28you some more details on that. But that right now is the biggest mover in the after hours trade,
06:33now up about 14%. I do want to go back to yields because we actually did see the selling in
06:39treasuries
06:40intensify as we got closer to those closing bells. That included on your benchmark 10-year,
06:44which is now closing out the day up by eight basis points. Similar story for the 30-year yield,
06:49up about eight basis points. I just want to point out that 10-year yield right now,
06:53if we get another day like this tomorrow, this is setting up for what is now going to be the
06:57biggest
06:57weekly gain in yields that we've seen, or the second biggest, I should say, all year long,
07:03really only rivaling that big pop that we saw back in mid-May.
07:07Every time I look at those boards to see if those 5% numbers are above 5%,
07:11it's kind of still a little bit shocking because we haven't been there for a while.
07:15All right, let's get to some stories that are on our radar, some fun ones. This has to do with
07:19tens of thousands of fans of products from FIGS are trying to get their hands on the newest release
07:25of medical scrubs. Medical scrubs?
07:28Yes, they create all those medical scrubs, and apparently they've been selling their functional,
07:33you know, it's people in the medical community use it. They've been doing it for over a decade,
07:38and they've posted, I think it's five straight years of growth.
07:41Are they just selling to folks in the medical community, or can I cosplay as a doctor?
07:45They've, yeah.
07:46Both. Yes and yes.
07:47Okay.
07:48Yes.
07:49Yeah.
07:49Yes.
07:50I don't know. Have you guys seen The Pit?
07:52Yes.
07:53I've heard about it.
07:53I cannot.
07:54I mean, I loved the first iteration when it was called ER.
07:57Yeah. Hey, shout out to Noah Wiley, who's awesome.
08:00That guy. I can't wait for his next act.
08:02Oh my God, it's so good. Don't hate on The Pit.
08:04I'm not going to hate on it. Here's something you have to know about me.
08:07Come on, give me. Breathe life into me.
08:09I can't watch shows like this.
08:11Why not?
08:12I don't like the hospital setting at all.
08:15So we watched the first few minutes of this, like when the first season came out.
08:18Yeah.
08:19And I was like, I said to my wife, you're going to have to watch this without me.
08:22So.
08:23Yeah.
08:23Yeah, I can't watch shows like this.
08:25A little bit too realistic for you?
08:27Yep, too scary.
08:27Oh my God.
08:28Sorry.
08:29Oh my God.
08:29Sally, come on, let's save this.
08:31Let's save it.
08:32Anyway, they do supply some stuff, I think, to the figs.
08:34Did you just speak for Sally?
08:36Carol's getting this back on track.
08:38My question was going to be exactly that.
08:39Do they use the figs in the pits?
08:42The show's costume department did the outreach and placed bulk orders for the cast.
08:46According to a spokesperson for figs, the company even produced a custom tuxedo for the
08:50show's producer and lead actor, Noah Wiley, to wear to the 2025 Emmy Awards, where he won.
08:57Yeah, this is interesting.
08:58I miss this story.
08:59So thanks for catching me up.
09:00Yeah, no problem.
09:01One story that I was focused on that's been kind of burning up the terminal all day is
09:06on Pepsi, which is actually raising prices.
09:08And I don't know if you remember, like a few months ago, we were talking about Pepsi actually
09:11lowering prices because it actually made some mistakes in holding the line.
09:14But I actually found that apparently, after cutting prices, it didn't really actually
09:18materially increase volume sales much.
09:20So now it's just like, well, hey, we might as well just raise them back again and try
09:23our luck with that.
09:24Thanks, Pepsi.
09:25Maybe there's something else that they should try.
09:28What's that?
09:28I don't know.
09:29If lower prices didn't work, maybe changing the product lineup.
09:33I don't know.
09:33Yeah.
09:34I'm just here talking about it.
09:35I'm not making decisions with Pepsi.
09:36Can they do?
09:36Can they get like, you know, just like Noah Wiley to hold up, you know, a Pepsi?
09:40You know, I did.
09:41You buy a Pepsi, you get some scrubs.
09:44Yeah.
09:44I don't know if you guys know this, but Noah Wiley and I went to the same high school.
09:48You've told us that story several times.
09:50You went to a fancy high school, right?
09:51Well, we weren't the same year.
09:53Oh.
09:54And look at you now.
09:55Yeah.
09:56I don't think he knows who I am.
09:57Oh, OK.
09:58Well, he does now.
09:58Has he reached out for you to do a campaign?
10:00No.
10:02He's on the list of notable alumni.
10:05Like Romaine.
10:06Romaine's a notable alumnus.
10:06One day you'll be on that list, Tim.
10:08Just like Romaine.
10:09All right.
10:10The Crypto Show will get you there.