Beyond the Bell.
Bloomberg's comprehensive cross-border. Coverage of the U.S.
market. Close starts right now.
And right now we are 2 minutes away from the end of the trading day Romaine
Bostick alongside Scarlet Fu. We're counting down to the closing bell
and here they'll take us beyond the bell.
It's a global simulcast with Carol Massar and tim stanwick.
Welcome to our audiences across all of our bloomberg platforms.
Another herky jerky day here in markets Carol Massar.
But the net effect of it all is most of the major indices right now are in the
red, and this looks like it will continue into downtrend that has really
unfolded over the last couple of months here.
So what do we have? 40% of the market cap reporting this
week. Can they turn it around, including some
big mega-cap tech names? We'll see whether or not this trading
trend continues in terms of equities. However, one group that's really
outperforming anything, it seems to do with leisure travel, hospitality.
I'm looking at the S&P super composite restaurant and leisure index up 2.6%.
Super composite hotel index up about 1.6%.
I'll tell you a little bit why Carnival's on the move in a moment, but
nonetheless, scroll at that world is on a tear.
I'm looking at the intraday chart of the S&P 500.
It's a slow rise up in the slow descent. Is this what it looks like when there's
no Fed speak? Well, I don't know what you know.
That's a good bargain this morning. And keep an eye on the market.
Scarlett. You know, we saw a decline of what, up
more than 7/10 of a percent on the S&P 500, then just moved higher for most of
the day and now it's declining. I kind of thought today was going to be
a fourth down day in a row. Well, it's funny.
It will be, I guess. Well, not significantly.
Yeah, Well, I mean, but we are moving lower here.
Interesting, though, too. I mean, on that point, the column that
we had by Mohamed El-Erian on the Bloomberg earlier today really got into
that idea of just how much Fed speak is sort of causing volatility.
And he kind of pointed out just in the last appearance by Jay Powell at the
Economic Club, just how much Treasuries moved off the back of those comments.
And that really raises the question here as to whether the commentary, the public
commentary is as useful as maybe the Fed thinks it should be.
All right. We are getting the closing bell here in
New York. Let's round out the day with the Dow
Jones Industrial Average down almost 200 points, a roughly 6/10 of a percent here
on the day the Nasdaq composite is going to hold in the green, up by about 34
points for about 3/10 of a percent. And you could thank most of the
Magnificent Seven for keeping that afloat.
But take a look at the S&P 500. A trade today below 4200, a close above
4200, but still down 2/10 of a percent on the day, a fifth straight day of
declines. That's the longest daily losing streak
for the S&P 520 23. The Russell 2000 also lower on the day,
Carol, down by 9/10 of a percent. All right.
A quick check on the S&P 500 remaining. I dig a little bit deeper.
You know, you're talking about most names in the index, 375 to be exact, to
the downside, 137 higher, one unchanged. But, you know, you mentioned volatility
and scarlette. If you look at the VIX, it's actually
down about a point in today's session, which I don't.
How do you get your head around that considering the trade that we saw today?
Yeah, well, I mean, the moves were not a lot.
I mean actually they were for the S&P 500, but the VIX has not been the
greatest signaling tool for a while. Now.
Let's take a look at the sector performances.
Seven out of 24 groups finishing in the green and as Romain mentioned,
Magnificent Seven. And that's you can see that with chip
makers, media, entertainment, software services leading to the upside.
On the downside, you've got transportation stocks, energy and banks
all down by at least one and a half percent.
All right. Let's get to some of the individual
gainers in the S&P 500 and the NASDAQ 100.
Top in both of those is Walgreens Boots Alliance.
That stock up as much as 6% at a time today, finishing the day with about a
3.3% gain. JPMorgan coming out raising the
company's rating to overweight from neutral.
The analyst there saying there is clearly work to be done.
Talks, though, about this health care focused management team, a refreshed
health care focused management team and a lowered but credible bar.
She really puts a lot of focus on the new CEO, Tim Wentworth, bringing what he
brings to the company, especially his expertise, his knowledge in the health
care space. So definitely singling that one out.
Do you want to mention Carnival? I talked about hospitality and leisure,
really on a tear today. This was a top name in the S&P 500.
Earlier today, one of the company's corporate directors, Randall Weiss
Steinberger, reported insider stock transaction to the S&P.
So buying about $1.15 million worth of shares.
Stocks down about 19% in the past month. So maybe he saw a little bit of a
bargain there it is up about 43% year to date.
Airbnb, again, that hospitality leisure outperformance today, this was top of
the S&P and NASDAQ 100 investors warming again, I guess, to the sector.
It's interesting to see this, but you saw Airbnb.
I'm just going to take a look at it up about 3.3% in today's trade.
And I do want to mention Nvidia was also top in both the S&P.
Planning to make some ARM based PC chips for Windows.
That was a Reuters headline earlier today.
Just today. All right Nvidia's gain Intel's loss
which I'll get to in just a second. Let's start, though, with Chevron shares
finishing the day down by more than a 3.6%.
Let's run that up to 3.7. We're taking a look after the
announcement that's going on that the company is going to buy gas for $53
billion. We know the.
Details. We've been talking about them all day,
$171 per share. For Hess, it's a premium to about 10% of
the 20 day moving average price. The acquisition will give Chevron a
significant foothold in Guyana. That's the South American country that
borders Venezuela, Brazil and Suriname that have found oil over the last ten
years. Let's look at shares of Intel.
Carol, mention this. But just in the last hour, Reuters
reported that in videos using ARM Holdings Tech to develop chips that
would challenge Intel processors in personal computers.
Shares of Intel falling just after that report, which Bloomberg ended up
matching. Shares of Intel falling by 3% today.
We should note that it ratchets up competition between the two
semiconductor makers and continues that fight between them.
And then FMC, the worst performer in the S&P 500 on a percentage basis today, it
fell by as much as 26%. Earlier today, it was the biggest
intraday drop since 2020. It's the company slashing its adjusted
earnings per share guidance for the third quarter.
In the wake of that, Wells Fargo cut its price target amid weaker trends in Latin
America destocking. We also saw peers of FMC.
It's the acronym for chemical company Fall.
Shares of CORTEVA, NUTRIEN, Mosaic Company, S.F.
Industries all falling today as well. This is a big story and I'm surprised.
It's I mean, I know it's kind of a more obscure company, but you talk about the
importance of the global economy here and the idea here that when these
fertilizer makers are hit, remember, this is more of a climate change issue
that they're dealing with right now. So these could be longer term structural
issues that could affect investors going forward.
Let's check in on what happened in the Treasury market.
And of course, everyone knows Scarlet was up at about 5 a.m.
this morning, sometime around 5:40 a.m. New York time.
We saw that ten year yield scraped past the 5% mark for the first time, going
back to oh seven. As you can see on your screen, though,
that did not last. We're actually down almost 15 basis
points from where it was earlier in the session, the down six basis points from
where we started. That's the day.
So interesting moves to see that whether that 5% was kind of the line in the sand
to bring buyers back into this market. You also saw most of the rest of the
curve, also a shift a little lower here on the day with about seven basis points
lower on that 30 year yield. I am curious, though, guys, there's been
a lot of speculation as to sort of what caused this swing both to the jump
higher and then of course, the bump lower.
And a lot of people are pointing a lot of people to a lot of things, but
they're also pointing to the tweet or the whatever you call it, the social
media post by Bill Ackman saying that basically he's throwing in the towel on
the short end and saying that he's concerned about geopolitical risk and
that this is just not a safe time. And then Bill GROSS coming out and kind
of saying something similar that, you know, there's an embrace of safety right
now. And I wonder how much that feeds Fed
into sentiment. Yeah, it's a nice round number that gets
people's attention. And it's as good a reason or a time as
any to to come in here and say, you know what, maybe I'll come in.
One thing, of course, that it's had is the impact on equities.
This marks the first Monday that the S&P 500 has not gained in 16 straight weeks.
So we've snapped the 15 straight Monday gains for the S&P 500, which was always
a little bit curious. It was a weird phenomenon, not 2023.
Yeah, that's an interesting trend break, if you will.
Gina martin Adams was on earlier from Bloomberg Intelligence.
She said a third of the S&P 500 companies are above their 200 day moving
average, a 200 day moving average. Excuse me.
She says you look for 50% to be above that mark if you want a sustainable
uptrend. So I have to say I feel like all the
market conversations we had today, Gina, we also had an M.I.T.
on. I feel like they were very subdued, if
you will, in terms of the equity market and the concerns, you know, that are
facing maybe a lot of companies out there.
Yeah. And M.I.T., you know, sort of argued
with us that even though we're, you know, not in a recession defined by the
data right now and we're still seeing job gains each and every month, that and
a lot of parts of the country. She's based in the Midwest.
She would argue that, you know, a lot of people do feel like they're in recession
with car payments above $1,000 a month. People housing affordability out of
reach, food prices going up. Ramen, it's called the real economy.
It is. It is called the real.
And I don't say that to be glib, but it's an for some reason.
Jack Right. But yeah, but it's I mean, to reconcile
that with the numbers that we get every month.
Yes. Well, we asked you about so what do you
make of the retail numbers? Because I don't get it.
I really don't get it because you've seen even the high end luxury that are
supposed to be, you know, sustainable no matter what.
And even you see some, you know, problems there.
So it's confusing, I think, to say the least.
It just puts the pressure on companies to really wow investors one way or
another if they want to generate some kind of big reaction in the stock,
because just delivering on a beat is probably not going to do it given what
Bill has found out. Bloomberg Intelligence has some data
showing that investors are not exactly rewarding companies that have narrow
beats, at least so far. So what does Microsoft do tomorrow?
Right? Like you think about some of the big
ones. Does that kind of, I don't know, change
the tone, the trend? I don't know.
And we are in this vacuum where we don't know why with it.
But I mean, that's the problem. I mean I mean, if if it's just going to
be Microsoft and Nvidia and Apple, Amazon metal, I mean, that's I mean,
that's not a market. I'm sorry, it's not that's a basket of
stocks. Right.
But it has definitely shaped the overall market trends often.
Right. And.
Even though we talk about it being so concentrated in the handful of a few big
names, it doesn't necessarily it does swing the moment.
Okay. Talk to me when they're buying oil and
gas companies and fertilizer companies and, you know, tractor companies and
things like that. I yeah, I mean, I'm not knocking you.
I'm just saying. No, I don't disagree.
Right. But we say it over and over again and we
see that trend of like investors just moving into some of those names that
aren't representative of the broader market, if you will.
All right. I guess we have to wrap.
All right, guys. That's it for the cross-platform
coverage, radio, TV, YouTube and, of course, Bloomberg Originals.
We will see you again same time, same place tomorrow.
