00:00And right now, we are two minutes away from the end of the trading day.
00:03Romain Bostic alongside Katie Greifel.
00:05We're taking you through to that closing bell.
00:06It's a global simulcast.
00:08It's already started, folks.
00:09Let's go.
00:10Carol Masser and Emily Grafail join us from the radio booth.
00:12Tim Senevic has the day off.
00:14Welcome to our audiences across all of our Bloomberg platforms.
00:17Carol F. Masser here as we look at a sell-off in all of the major equity markets.
00:24Yeah, there you have it.
00:25I was thinking to, I said at the top.
00:27What is your middle name, by the way?
00:28I just made that up.
00:29Is that like Wheezy F, baby?
00:30What did you say?
00:31Carol what?
00:32Did she ever listen to me?
00:33Carol F. Masser.
00:34Emily Grafail, how are you, by the way?
00:36I'm doing well.
00:37I don't know Carol's middle name.
00:38Nice to see you, too.
00:39It's Anne.
00:40Oh, that's nice.
00:41Cam.
00:42It's like a queen.
00:42Cam.
00:43It's Cam.
00:43I like that.
00:44Yeah, there you go.
00:46Hey, I think about chip stocks.
00:48They giveth and they taketh away, right?
00:50So they were up about 2.2% yesterday.
00:53Emily giving back another 5%.
00:54I feel like, again, this story, lots of volatility in this sector.
00:59Just look at the HCPI function in the socks over the last couple of weeks.
01:03It's just all over the place.
01:04Yeah.
01:04And what's stronger on a day like today?
01:07Again, it's not the chip stocks.
01:09It's the hyperscalers, the mega caps, the Amazons, the metas of the world.
01:13Actually not doing too badly today, but not enough, of course, to lift the Nasdaq 100 into positive territory.
01:20Romain, what is your middle name?
01:22I've told you already.
01:23What is it?
01:24Fabulous.
01:25We talk about this idea, too, and just to Emily's point, the idea that these sort of sell-offs that
01:31we have in one day and the rallies we have in the next, it really is sort of indicative of
01:35what pretty much every day has been a rotation.
01:37It's just a rotation from sort of one pocket of tech to another pocket of tech.
01:41And I don't know if this is just musical chairs or this is just how things should normally be, but,
01:45well, here we go.
01:46And I have a feeling the conversation tomorrow might be the flip side of what you see on your screen
01:50today.
01:51For our radio audiences, what we see on the screen is red across the screen.
01:55A Dow Jones Industrial Average down 140 points or about a quarter of a percent.
01:59The S&P lower by about 34 points or a half a percent.
02:03The Nasdaq Composite and the Nasdaq 100 each down more than one percent, with the Nasdaq 100 closing out the
02:08day lower by 1.8 percent.
02:10And the Russell 2000 lower by 27 points or nine-tenths of one percent.
02:15All right, back to the S&P 500.
02:17Interestingly enough, yeah, the index is down, but you actually had 284 names gaining ground in today's session, Katie.
02:25And then you had 218 losing ground, one unchanged.
02:28Yeah, similar story when you take a look at the sector breakdown as measured by the circle.
02:32Six sectors finishing the day in positive territory, five in the red.
02:36In terms of what did perform today, energy, that is that small bright green slice there, higher by 3 percent.
02:42Health care, Eli Lilly having a great day, higher by 1.6 percent.
02:47In terms of what didn't perform, though, industrials down about 1.7 percent.
02:52And then big tech not too far behind, information technology down about 1.6 percent.
02:57And certainly that was a big weight on the index overall.
03:00All right, guys, let's get to some of the individual gainers, if I may.
03:04And there's not a name we necessarily talk about a lot, but it's the number one gainer in the S
03:08&P 500.
03:10Cognizant.
03:11Stock is up 6.2 percent in today's session, rallying to its highest intraday since June 22nd.
03:17So just about, I don't know, a few weeks ago.
03:19This is after the company said it's bolstering its partnership with Google Cloud.
03:23So Cognizant is, quote, broadening how the companies bring Gemini Enterprise to clients and deepening its internal use of the
03:30technology.
03:30The company going on to say it aims to deploy Gemini Enterprise to 100,000 associates this year with plans
03:36to scale to 200,000 and is certifying a minimum of 10,000 Cognizant professionals on the platform.
03:43I'm not quite sure what that means.
03:45I do want to point out, though, this stock is down nearly 50 percent year-to-date with about 12
03:49percent of the float short, but getting a little bit of a bump in the Tuesday trade.
03:54Let's go on over to Fiserv.
03:56That stock climbing after a report that several U.S. banks stock up about 1.8 percent here at the
04:02close.
04:02This is after a report that several U.S. banks have explored a potential deal for a debit network owned
04:09by Fiserv.
04:10Banks, including JPMorgan Chase, B of A, Wells Fargo, PNC Financial, have had early-stage talks about a potential deal
04:17to acquire a debit network owned by this company.
04:20So owning that network would help the lenders potentially snag an exemption from the Durbin Amendment, which is part of
04:26the 2010 Dodd-Frank Act, going back a little bit,
04:30to cap the fees that large banks can collect from merchants on debit card transactions.
04:34So it gets a little wonky, but it explains that move.
04:37And then I hope I say this right.
04:39I meant to check it out before I got here.
04:42AGOs, pharmaceuticals, jumping about 17, almost 18 percent today after the biotech company said the U.S. Food and Drug
04:51Administration accepted its supplemental new drug application
04:55for meet-up pivot in sickle cell disease with a priority review designation.
04:59So obviously moving ahead here for a particular pharmaceutical there.
05:04Stock is up nearly 60 percent year-to-date with about 11 percent of the float short.
05:07So a few gainers there.
05:08What do you got?
05:09All right, let's get to the decliners and not, you know, too much of a surprise here to see the
05:15chipmakers down.
05:16And in the red, Intel is the chipmaker that I am selecting to represent the group, falling about 10 percent
05:23to end the day.
05:24Of course, this is all coming after Samsung Electronics reported preliminary results that failed to meet high investor expectations.
05:31So we're seeing Intel fall, but we're also seeing AMD down.
05:34The Philadelphia Semiconductor Index, the SOX Index, which has been on a tear, taking some of that back just today.
05:42But again, this idea that there's a rotation when the chip names sell off, do investors go and hide out
05:48in the hyperscalers?
05:49We'll continue to watch that underway.
05:51Rivian also sliding.
05:53The stock sliding on a plan to offer shares, the stock tumbling the most since 2024 after the EV maker
05:59said it will sell 75 million shares to fund equity contributions related to a U.S.
06:05Department of Energy loan.
06:06Goldman is leading the share sale, according to a filing with the U.S.
06:09Securities and Exchange Commission.
06:11And at the closing price of $20.14 per share, the offering would raise about $1.5 billion.
06:17But again, shareholders maybe not too happy about some dilution that could come to that stock, closing the day down
06:2318 percent.
06:24And then finally, SpaceX down.
06:26It's been on a wild ride since it IPO'd.
06:29Today was the first day that it was in the NASDAQ 100, and it finished the day down about 7
06:34percent and dragged that tech-heavy index lower as well.
06:37That's like a chart, a missile coming down to Earth, huh?
06:40Yeah, Carol said it, not me.
06:42All right, well, let's take a look at what we're seeing in the yield space, which we saw pretty much
06:46a parallel shift higher in Treasury yields,
06:49about seven basis points on your two-year yield and about seven basis points on the opposite end of that
06:54curve at the 30-year, a big sell-off in the Treasury space.
06:57Some of this was tied, of course, to that rise in oil prices and some concerns here about the still
07:03unresolved situation in the Middle East.
07:05All right, guys, we've got a want, want, want when it comes to AI.
07:07This is courtesy of a Nobel Prize-winning economist.
07:10His name is Christopher Pissarides, I believe is what his name is.
07:14He's warned that AI essentially will not return Western economies to the era of rapid productivity growth, which may be
07:22gone forever.
07:22He said as many as four in 10 U.S. and U.K. jobs would be largely unaffected by AI
07:28in sighted areas such as nursing and hospitality.
07:31So all that excitement, he says, not so much.
07:34He said he doubts there will be a new computer boom equivalent to what we had in the 1980s and
07:391990s,
07:40which is kind of disappointing because people are definitely thinking that the AI boom is going to be even bigger
07:45than the Internet boom.
07:46I'm curious about that because, I mean, a lot of people are putting bank on this idea of improved productivity
07:51as being one of the big benefits of this.
07:52And we should point out his whole background is labor economics, and I think his Nobel Prize kind of dealt
07:58with that.
07:58So he would certainly know.
07:59But that's kind of a contrarian call.
08:01I mean, a lot of economists, the most respected economists out there seem to think we are already in the
08:05midst of productivity improvements.
08:07We shall see.
08:09You know what's getting cheaper?
08:11Diamonds, perhaps.
08:13Yeah.
08:13Romain's going to buy them for us all.
08:15A sign of the times potentially coming from De Beers.
08:19I thought this story was really interesting.
08:20De Beers making deep cuts to its official diamond prices.
08:25Typically, the firm's prices had been between 5% and 50% higher than the secondary market, depending on the
08:32category.
08:33But now they're cutting them to be much closer to the secondary market.
08:36And we know that the diamond industry has been in a weird way for a while here when you think
08:41about the shift towards lab-grown stones.
08:44So, you know, another step in that story here.
08:47So how were diamond prices, how are they set now?
08:49I assume diamonds are rare.
08:51Is that the issue?
08:52Actually, not so rare.
08:53Oh, OK.
08:54We're finding out.
08:54So why are they so expensive?
08:56Well, they're a girl's best friend.
08:58No.
08:58Like control of supply and demand, right?
09:00Yeah.
09:01Essentially.
09:01That was such a controlled market, right, for so long.
09:04And now you have supply increasing when you think about what's being done and grown in the lab.
09:08And, you know, it's not so great for the natural diamond businesses involved.
09:14I think it's fascinating, right?
09:15I mean, this industry has just changed so dramatically over the last quarter of a century.
09:19Romain, what is your middle name?
09:22Diamond.
09:23Diamond Jim.
09:24I think I could see that.
09:26I like that.
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