A bit of a reversal Carol Massar from
what we saw on Friday with the big sell off.
And today it’s a big buy the dip. I know.
And I’m trying to figure out like how much has really changed.
But having said that, I of just keep digging down.
There’s a lot of gainers in today’s session.
Semiconductors in particular, guys up almost 3%.
So really some outperformance there today.
I guess the optimism about perhaps Iran wants to talk to find some resolution to
this. Got people more optimistic, Scarlett.
But still, it seems surprising to me that an environment such as this where
we are seeing these two powers go against each other, the skirmish in the
Middle East, that there is some buying that we’re seeing today.
Yeah, it seems a path of least resistance for equities is to continue
to go up, whereas the path of least resistance for bonds is for yields to go
up. I mean, we’ve seen the equity market
turn around, but yields continue to be higher for a second day.
Yeah, and JP market intelligence actually though, changing their call
today, saying that they’re now tactically going from tactically bullish
to cautious because of sort of the moving away from a by the demo and
perhaps some saying look we didn’t have enough of a sell off to have a really
big by the debt moment and that gets to the question is whether we do need to
sort of retest back down to some correction levels before you get that
reset higher. It will be interesting to see how those
analysts are. So strategists expectations their price
targets for the full year and for the 12 months.
Whether that starts to creep back up, given some of the tamp down in the trade
rhetoric, we get the closing bell here on this Monday afternoon.
Green across the screen with the Dow Jones industrial average up more than
300 points or about 8/10 of 1%. The S&P 500, a 50 plus point gain on the
day it opened above 6000 and it’s going to close.
They’re up about 9/10 of 1%. The Nasdaq indices up about one and a
half percent, while the Russell 2000 closing out the day higher by 1.1%.
All right. To the S&P 500.
Back I go. Most names in the index higher today.
Scala 364 names gaining ground, 139 to the downside.
All right. Let’s take a look at the map.
The 11 sectors in the S&P 500, seven sectors are in the green, including the
largest ones, communication services, infotech and consumer discretionary.
That reflects all the MAG seven sectors. And in fact, all seven of the MAG, seven
names are gaining ground as well. So you have four sectors gaining at
least 1%. The laggards on the day are utilities,
health care and energy, each down anywhere from 3/10 of 1% to half of 1%.
All right, guys, let’s get to some of the individual gainers in today’s
session. There a lot to choose from, AMD, that’s
your number one gainer in the NASDAQ 100.
Number two, gainer in the S&P 500 stock up 8.8%.
You really did see a broad rally in the semiconductor space.
But Piper Sandler said products unveiled last week by AMD were positive and
expects a snapback for the GPU business in the company’s fourth quarter.
You also had BNP Paribas come out, an analyst there saying in a call on AMD
held with Friday with analysts that they sent a reassuring message heading into
results next month with traction increasing for AMD’s instinct GPUs.
So some really a lot of optimism there when it comes to AMD.
Estee Lauder, next name for me, number one gainer in the S&P 500 and NASDAQ up
a just shy of 11%. So pretty much closing at its best
levels of the day. China retail sales grew 6.4% last month.
That’s the fastest pace since December of 2023 and exceeded all estimates.
So those names like Nasty Lauder that have a big Chinese exposure are really
gaining today. I should point out Nike, Starbucks,
Canada Goose also gaining in today’s session.
We also should point out that yesterday some sad news from the Estee Lauder
community. That is that Leonard Lauder, which was
one of the sons of Estee Lauder, the founder of the company, passing away a
long time, obviously, in terms of running and, you know, strategy for that
company in particular. And then I just want to mention DE I
hope I gave the right ticker, Warner Brothers Discovery.
Did I mess up? You messed up.
I messed up. Hey, but it’s sexualized it.
Yeah. Yeah.
But that’s not where I want to go. But anyway WB de What are brothers
Discovery that is your number two Gainer I believe in the S&P 500.
Forgive me Finley I messed up up 7.3%. Warner Brothers Discovery and that’s
after the company won support enough support from creditors to overhaul its
debt as part of a plan to split the entertainment giant into two separate
companies. I’m so sorry.
Can I just add an honorable mention? Because the one I did when I ran the
most, when I ran the most function, the number one gainer across all of the
tapes was some tiny biotech company. Rosenthal which I might be
mispronouncing. It was basically a penny stock about a
month ago. It’s now trading at 59 bucks a share.
It had a big stock split today, 38 for one.
It rallied as much as 400% on the day. This was a stock that a market cap of a
few hundred million dollars just a few weeks ago.
It now has a market cap of almost $30 billion today.
What’s the short position on that, Poppy?
I haven’t looked back. Sure.
Not now. Yeah, not now.
Okay. Let’s get to which point out, no matter.
No revenue or anything else. Yeah.
Good. Honorable mention.
Good, honorable mention Roman and always says the good honorable mentions.
Hey, let’s start with Lockheed Martin. All that’s in terms of decliners today
down 4%. This news just breaking after and it’s
not reason the reason why it’s lower. Lockheed Martin did name a new chief
technology officer. That just crossing moments ago.
We did see U.S. defense stocks erase earlier session
session gains that we saw today. This after we heard from the president
who said Iran wants to talk about de-escalating the conflict with Israel.
Northrop Grumman and L3 Harris Technologies also fell in terms of
defense stocks today. Lockheed Martin, though, the worst
performer on a percentage basis in the S&P 500, Also moving lower today.
Energy names among the worst performing sectors in the S&P 500.
Diamondback energy down two and a half percent.
Energy companies also falling with oil prices on expectations, there would be
less disruption to oil supplies. Don’t back energy.
The worst performing energy name in the S&P 500 and then a biotech name that
fell a lot today. Sarepta Therapeutics down 42%.
The company’s gene therapy for April Rare Muscle disorder has been linked to
the death of a 15 year old boy. It’s the second patient to die of acute
liver failure while being treated with the therapy.
Shares fell today by 42%. While on that note, Thanks, Tim.
I guess I’ll go to yield. So there was a sell off in the bond
market pretty much all across the curve. The back end getting hit the hardest
with yields up by about 6 to 5 basis points 20 year.
Our auction went off without a hitch. But just so interesting, when you have
these kind of headlines and you’re still seeing selling in the Treasury market,
same with the dollar, just raises the question, at least for me, like where do
bonds and the dollar fit as a safe haven asset in your portfolio?
I know we’re all taking a breath after Friday, but there are still so many
risks out there. And yes, they’re hard to price, but at
least we know that they come from Iran and Israel right now.
And yet still we’re not necessarily 100% pricing that in at all.
All right, guys, We’re going to get to obviously, we have a Fed meeting this
week. They’ll be looking at the labor market.
We’re looking at the labor market on this Monday, because if you are a recent
college grad, it’s not so great. Pretty bad.
In fact, recent college and high school graduates are facing an unemployment
crisis, is coming from The Wall Street Journal today.
Overall national unemployment rate around 4%.
New college grads are looking for work. We’re talking about 6.6% unemployment
rate over the past 12 months, ending in May.
And that is about the highest level in a decade, excluding what we saw dying
during the pandemic employment spike. So not so great.
As Carol mentioned from The Wall Street Journal, this data from the Labor
Department, though, people who are between the ages of 20 and 24 who are
looking for work, who have at least a bachelor’s degree, young graduates face
a high, higher unemployment rate than their counterparts who’ve been in the
workforce longer, according to the Journal.
But the gap now is growing wider between adult workers and the young.
So those ages 35 to 44 with bachelor’s degrees had a 2.2% unemployment rate
over the past 12 months. That was up from 1.8% over the prior
period. And legit question on how much is
distorted to about all the layoffs for those and government workers.
Right. Like there’s a lot of individuals
recycled into the market now. So how does that wind up sort of
clouding and messing up the picture? Yeah, these young, fresh graduates are
not even counted in the unemployment numbers just yet.
So you could watch that unemployment rate that the Fed focuses on so
carefully tick higher later on this year.
Another story we’re following is metal platforms finally monetizing its what’s
app unit. It’s going to start showing ads in the
updates tab of WhatsApp. I’ve never used the updates tab.
So this would allow users who don’t want to see ads to just continue using
WhatsApp for messaging and calling without seeing them.
What’s the point then? Who’s actually going to go in and look
for that? Updates, channels and stuff?
We updates check. This tab gets one and a half billion
visitors per day, so why are they going there?
I’m not I don’t understand. They’re looking for updates now, but if
you look on it, there’s like channels and you can subscribe and follow and
there’s like and, and I have a lot of sports channels on my updates tab.
They don’t know you then they don’t know me at all.
Yeah, they’re clearly not tracking me. So there’s that.
That’s not good targeted advertising for Alex.
But remember when I met a bot WhatsApp back in 2014?
I remember this because I was subbing for you on surveillance.
Oh my God, you are off. And everyone was like, What is this
company? This was like five people worked there
and it was like per head. They’re paying a ridiculous amount of
money. Finally, they’re going to monetize it.
Well, years later, all the bankers know what WhatsApp is, and so did the
regulators always say, Oh, you know, look at Metta.
It was up almost 3% today, man, they’re up almost 20% year to date.
I feel like they are kind of firing on all cylinders.
I mean, just figure out ways to monetize kind of all of their platforms.
So I guess investors like it. I don’t like ads.
I’m tired of it. I want to get away from me, too.
Me too. All right.
That’s a wrap. Our money’s over here.
Almost. That is a wrap.
Our cross-platform Radio-TV YouTube, Bloomberg Originals.
We call it the closing bell. Alex is heading out.
Scarlett remain continuing on the close. Be sure to stay with them or stay with
him and I right here on Bloomberg Businessweek deli.
We’ll see you tomorrow, guys.