HomeVideos

S&P 500 Falls as Wall Street Waits on New Inflation Data | Closing Bell

Now Playing

S&P 500 Falls as Wall Street Waits on New Inflation Data | Closing Bell

Transcript

184 segments

0:00

And right now we are two minutes away from the end of the trading day.

0:03

Romaine Bostick here with Isabella taking you through to that closing bell.

0:07

It's a global summer cast. Tim Stanojevic joins us from the radio

0:09

booth. Christina Aquino in today for Carol

0:12

Massar. Welcome to our audiences across all of

0:14

our Bloomberg platforms as you pass the most crucial moments of the day.

0:17

Tim, a bit of a holding pattern for stocks and mixed day here with the S&P

0:21

and the Nasdaq in the red. The Russell 2000 in the green.

0:24

Yeah. We'll see what happens tomorrow when we

0:26

get CPI on Thursday when we get PPI. But I think you're right a little bit of

0:30

a holding pattern. It's a Tuesday in August.

0:32

So maybe we're the only ones at the office today and everybody's at the

0:36

beach. But we are still seeing at least oil

0:38

make moves today. Uh WTI uh futures up about 1.6% as our

0:45

Brent futures WTI about $83 a barrel. Brent just shy of $90 a barrel at 8916.

0:51

I do wish that I was on the beach myself, but I'm here in the freezing

0:54

studio beside romaine. But we did.

0:56

Romaine takes no offense to that comment right now.

0:58

I'm so happy to be here on stop living here.

1:00

We did talk to Wells Fargo. Someone who said that CPI is the last

1:04

hurdle before big semis. Big semis meeting Nvidia and Broadcom.

1:07

So he is really looking out for that. I mean the CPI will really shed light on

1:11

whether we're seeing energy related inflation pressures.

1:15

Cool. Yeah.

1:16

Well speaking of inflation pressures, Isabel, I mean I was keeping an eye on a

1:19

bond market today. A yields lower across the board by about

1:22

1 to 2 basis points across major tenors. But you know, remember there are still

1:27

rate hikes very much priced into the curve including for the September

1:30

meeting. There's about over 50% chance that we're

1:33

going to get a rate hike in September, at least according to market pricing.

1:36

But if it's up to Kevin Morris, it's a little bit more up in the air and we're

1:39

all stomach pains here. A big focus on earnings with content on

1:42

Firefly, kava, Core, weave, Super Michael and momentum set to cross the

1:46

wire momentarily with right across the screen here on this Tuesday afternoon,

1:50

the Dow and the S&P each down about 3/10 of a percent on the day.

1:54

The Nasdaq Composite losing about 6/10 of a percent on the day for the Russell

1:58

2000. That's the flip side here in the green.

2:00

Up ten points or 3/10 of 1% in the S&P 500.

2:04

Peeling back the layer there. We did see even though the S&P moved

2:07

ever so slightly lower today, we did see more stocks move higher in the index 277

2:13

to the upside 225 stocks in the S&P declined today.

2:16

And now we're taking a look at iMap. And it's more mostly read on the screen

2:20

which isn't a surprise. As markets ended lower you had tech down

2:23

by nearly. Oh actually tech is just flat.

2:25

Its financial sits down by 3/10 of 1%. Materials lower, communication services

2:30

lower. And maybe energy is one of the two

2:32

bright spots. They're up by 7/10 of 1% was a wait.

2:35

As we await some of these earnings, let's take a look at some of the stocks

2:37

that moved to higher today. I want to start with a couple

2:40

alternative asset managers KKR and Apollo.

2:43

Those both moving higher KKR to the tune of 7% today.

2:46

Uh Apollo up 6.3%. These were among the firms that

2:51

outperformed financial peers after Nvidia tapped some Wall Street

2:54

investment firms for that $500 billion funding commitment.

2:57

Uh, Apollo. Blackstone, Blackrock Brookfield Asset

3:01

Management partnering with Nvidia to source $500 billion in financing for AI

3:05

infrastructure. The coalition also includes Goldman

3:07

Sachs and KKR. Also, I'm watching what's going on with

3:12

riot platforms. Speaking of AI infrastructure.

3:15

Shares were up as much as 22%. Wow.

3:18

That's right. Wow.

3:19

What happened? I don't know what happened.

3:20

I mean, maybe a little bit of the air came out of this balloon, but it was

3:23

still higher by 4.3% today. This was a bitcoin mining company that

3:29

now has pivoted to infrastructure, Bitcoin mining companies.

3:32

Sorry. Weren't we all once because we were all.

3:35

And maybe once we will all be AI infrastructure companies.

3:38

That's that's the question. Uh, a $9.1 billion deal with anthropic,

3:43

uh, that first for 191MW of computing in Riot's Rockdale, Texas campus.

3:50

It's expected to generate $9.1 billion in revenue, but it goes through June of

3:54

2048. That is a commitment.

3:56

What are you guys going to be doing in June of 2048.

3:59

Yeah. Okay.

4:00

Yeah. I can't do the math that quick, but you

4:02

average out that $9 billion. I know the next, uh, 20 years.

4:06

Yeah, I guess that's what. That's what the calculator says.

4:09

Okay. Uh, maybe that's why the stock went from

4:11

up 20% to only up for maybe. Maybe the people that people saw the

4:15

fine print. Yeah.

4:16

Uh, okay. So speaking of, uh, maybe looking

4:18

backward a little bit. Uh, we are talking about bending spoons.

4:22

The stock was up 4% today. Also up higher earlier in the session.

4:26

Well, this is this is the this is romaine.

4:28

This is all the the stuff you and I used to use.

4:30

Yes. Used stock.

4:31

Yeah. Back in the day.

4:32

Yes. You know Vimeo.

4:34

Well AOL, Evernote, those sorts of Myspace in there somewhere.

4:38

They're kind of creating this private, I think my my style roller.

4:41

What's that out there? Nothing junky.

4:43

Carol Massar. Nothing.

4:44

Okay. Mizuho hiked its price target ahead of

4:46

the company's first earnings report. Um, this was the second consecutive

4:50

session for, uh, the company. The stock moving higher today.

4:54

It hit an all time high earlier. We'll see what earnings say.

4:56

Um, but this has performed pretty well since that IPO.

5:01

I do have a source who had an AOL email and that was, yeah, shocking to me and

5:06

gave me a heart attack. We have any decliners?

5:08

Well, yeah. Let's take a look at what is down today.

5:12

Let's start with beyond me. I mean, a big declines their stocks on

5:15

more than 20%. That is the biggest decline since

5:18

October. We know, of course, that the board has

5:20

elected for a one for 30 reverse stock split of its common stock.

5:25

That's probably what's pressuring those shares as well.

5:27

And remember, we saw a second quarter decline in their net revenue.

5:31

And analysts are recognizing they is slowly improving its business.

5:35

It's just proving to be slower than expected here.

5:38

So a lot of a read on screen for beyond me today.

5:41

Uh a little bit of red on the screen right now for the momentum.

5:43

Actually the share is oscillating between gains and losses.

5:46

The maker of optical equipment used in a lot of this, uh, technology buildout,

5:51

uh, providing, uh, its quarterly update here, revenue in the most recent quarter

5:55

does look like it came in above average adjusted EPs, also beating the average

5:59

of street estimates $3.23. That's your bottom line number.

6:02

The street was looking for $2.97, but here's the guidance for the current

6:06

quarter. This is the fiscal first quarter.

6:09

The company says net revenue will be in a range of 1.23 to 1.28 billion.

6:13

The street was looking for 1.15 billion. So it looks like for the most recent

6:17

quarter, it did beat on most of the key metrics and at least right now on the

6:20

revenue guidance. So going forward, it also does appear to

6:23

be coming in above what the street was looking for.

6:25

I'm going right to that press release for any commentary we can get around

6:28

these numbers. The company's president, CEO Michael

6:31

Hurst, in saying that Lou mentioned his position at the heart of a secular

6:34

industry shift, talks about AI compute workloads increasing in both speed and

6:38

bandwidth. Data center architects are turning to

6:40

optical links as a primary means of connectivity.

6:44

The company also says increasing demand for ultra high power CPU lasers, an

6:48

initial order for LS modules, as well as our breadth of NPO engagements, are the

6:54

first signs that optics are starting to penetrate in Iraq.

6:56

Connectivity remain all right. There's a lot of words there.

6:59

I'm not sure I understand most of them. Doctor romaine.

7:02

Well, let's take a look at Super Micro. Of course.

7:04

This company, our builds, builds and sells all of these AI servers out there.

7:07

A company, of course, that has gone through some fits and starts the shares

7:10

up about 8% in the after our trade, the gross margin coming in above estimates

7:14

17.6%, EPs above estimates $1.70 versus $1.59 that the street was looking for.

7:20

Net sales 11.12 billion. That's a slight miss.

7:24

The street was looking for $11.26 billion.

7:27

Still digging around here for any sort of forecast, but it does appear at least

7:31

on the bottom line, it beats. And that was a key metric here.

7:34

People were really looking more towards profitability.

7:36

Remember, this is a company that provided us with a pre announcement

7:39

about three weeks ago saying that its revenue would be at the lower end of its

7:43

previous range here. So all around here it looks like they're

7:46

relatively coming in with what the street was looking for.

7:49

Yeah. Shares of Super Micro up about 7% in the

7:52

after hours. Looking for some commentary.

7:55

The company's founder, president and CEO, says as demand accelerates, we are

7:59

improving profitability through a richer enterprise customer mix and broader

8:02

adoption of our optimized data center building Block Solutions architecture,

8:07

combined with continued investment in tech leadership, manufacturing scale and

8:11

global compliance. That's key.

8:12

They're global compliance. We're enabling customers to deploy our

8:16

infrastructure faster and more efficiently.

8:18

Shares to Super Micro, up 9% in the after hours.

8:21

This has been a volatile stock. You see that net sales forecast for the

8:24

first quarter guys 14.5 to 15.5 billion. The street on average was looking for 12

8:30

billion. So uh, guiding well above street

8:32

estimates. Maybe what's helping also is the new

8:34

orders climbing to more than $60 billion.

8:36

And that comes amid a backlog of demand for its servers outfitted with Nvidia

8:40

chips. Every time I think of an eye story,

8:42

Nvidia always finds its way there. It really is at the epicenter of this

8:46

whole AI craze. Yeah, I mean, very interesting,

8:48

Isabella. And that that was definitely a strong

8:50

point that a lot of analysts were anticipating, right.

8:53

That backlog, uh, very much an indicator of just the sheer demand for anything er

8:58

related or anything involved in this, uh, supply chain.

9:02

I mean, when we got their preliminary guidance, uh, you know, adults were

9:06

viewing it as positive and clearly today's beat really just affirming, uh,

9:10

the story here for Super Micro and its role in the eye trade and build out

9:14

moving forward. Well, speaking of the eye trade, have

9:17

you ever heard of a company called Iraq took a year, broke the shares up about

9:21

15% in the after hours trade. Distributed power systems is visits game

9:25

and now a partnership. Uh, when it comes to anthropic this

9:30

according to a report from Barron's saying that anthropic will buy about

9:33

470MW of power equipment from Iraq. Uh, don't necessarily have the terms of

9:39

that. But obviously, uh, anything that you see

9:41

anthropic, OpenAI and Nvidia, uh, touching our investing in, of course,

9:44

gets a pretty strong bid. All right.

9:46

We got numbers from momentum Super Micro, uh, and a couple others.

9:50

We're still waiting on core. We've cover Firefly Aerospace and some

9:55

more.

Interactive Summary

Loading summary...