Tech Sector Hit Record High | Beyond the Bell

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Bloomberg May 28 23:48 · 21.6k Views

Comprehensive cross-platform coverage of the U.S. market close on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Alix Steel, Carol Massar and Tim Stenovec.

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Transcript

  • 00:00 And right now, we are two minutes away from the end of the trading day, Romaine Bostic alongside Alex Steele, we're counting you down to the closing bell.
  • 00:08 And here they'll take us beyond the bell.
  • 00:09 It's a global simulcast.
  • 00:11 We're joined now by Carol Massar and Tim Senevic as we welcome our audiences across all of our Bloomberg platforms, television, radio and our partnership with YouTube here on a somewhat tepid
  • 00:21 trading day.
  • 00:22 Carol Massar on this Tuesday afternoon.
  • 00:24 All I'm thinking, is it Friday yet?
  • 00:25 Yeah, exactly.
  • 00:26 We have definitely
  • 00:28 seeing what's happening.
  • 00:28 I don't know.
  • 00:29 It's just that kind of a day, Carol.
  • 00:30 Carol said it was Monday on air later
  • 00:33 and
  • 00:33 right at the top of our show.
  • 00:35 Happy Monday.
  • 00:35 Yeah.
  • 00:36 Move up in yields.
  • 00:37 Waiting for some more economic data.
  • 00:38 It's going
  • 00:39 to be interesting.
  • 00:39 Some more Fed speak before they stop talking ahead of the upcoming Fed meeting.
  • 00:44 Countdown
  • 00:45 to the blackout.
  • 00:46 Continues to be on.
  • 00:48 Yep, week two.
  • 00:49 You know, just to point out though, hold on a second.
  • 00:50 Katrina Dudley doesn't seem to mind the talk that we just had her on.
  • 00:54 And it's like, you know, she likes the fact that they're being clear.
  • 00:56 Uh huh.
  • 00:57 She likes the fact that they're talking.
  • 00:58 And that's why the volatility is relatively subdued.
  • 01:00 I love the talk.
  • 01:02 It
  • 01:02 gives us something to talk about when they talk.
  • 01:05 What do we talk about, Romaine when there's a blackout.
  • 01:07 How many times can we say talk?
  • 01:09 Well, I I, I mean, you know, yeah.
  • 01:11 What would we talk about when there's a blackout.
  • 01:12 We talk about the Fed being in a blackout.
  • 01:14 Which I think is exactly what the
  • 01:16 what Carol will be doing here.
  • 01:17 But I was just going through it.
  • 01:18 Look, it's like you got Messer already out there.
  • 01:21 Bowman, Kashkari, we heard from earlier today.
  • 01:23 You got Cook speaking, I think also,
  • 01:26 and that's just today.
  • 01:27 And I don't know what any of these people are saying other than what they said maybe yesterday, last week or the week before.
  • 01:33 I think that's the point and that and that's, it's not actually moving markets at the end of the day, but at least they're all clear they haven't changed their point of view.
  • 01:40 All right.
  • 01:40 Well, I mean, maybe the fact they're not talking has been somewhat good for the market.
  • 01:44 And S&P 500, that's been a good portion of the day in the red, actually flipping into the green as we get the closing bells.
  • 01:50 These numbers take a while to settle, so take it with a grain of salt.
  • 01:53 But the S&P is only up by about one to two points on the day that's in the green.
  • 01:56 But
  • 01:57 once again, takes a little while for it to settle.
  • 01:59 The NASDAQ will decidedly end in the green here on the day with the NASDAQ
  • 02:03 is it
  • 02:04 up about 99 points or about 6/10 of a percent, and the NASDAQ 100
  • 02:08 up about 61 points or 3/10 of a percent.
  • 02:11 The Dow meanwhile decidedly in the red, down 200 points or 5/10 of a percent, while the Russell 2000 is going to close out the day lower
  • 02:18 by about 110th of 1%.
  • 02:20 Yeah, most names in the S&P 500 actually lower in today's session, 367 to the downside.
  • 02:25 What it was good, Alex, is to be a semiconductor name because the Sox was up about one point, almost 1.9%.
  • 02:32 A lot of that had to do with NVIDIA, which I'll talk about in just a moment.
  • 02:35 Yep.
  • 02:35 And just take a look at the IMAP function here on the Bloomberg Terminal and it really shows
  • 02:39 the breakdown.
  • 02:40 You obviously have information technology outperforming up 1.4%, but I was pointing out earlier, it's not just that, it's also energy
  • 02:47 outperforming AS well, up by a full one percentage point, followed by communication services, Exxon, the best performer within the energy sector.
  • 02:55 And on the downside, the cyclical stuff, you got financials, healthcare and industrials all down
  • 02:59 by over 1%, Carol.
  • 03:01 All right, that's a big sector play, if you will, on this Tuesday.
  • 03:04 Let's get to the semiconductor space.
  • 03:06 NVIDIA
  • 03:07 finishing just off its highs of the session, still a gain of more than 7%.
  • 03:10 It's the number one gainer in the S&P 500 and the NASDAQ 100, up six days in a row.
  • 03:15 Last check, it was up more than 20% in those six days.
  • 03:19 So talk about a move to the upside
  • 03:21 to another record high today.
  • 03:23 The Street just continuing to pour their love
  • 03:26 for NVIDIA.
  • 03:27 B of A's triple momentum screeners find stocks, including NVIDIA.
  • 03:31 Melius Research analysts saying Nvidia's margin stands out and is, quote, worth paying for.
  • 03:35 Highlighting a metric that he says shows why the chip giant is truly unique.
  • 03:39 And that is the company's 69% margin on the basis of earnings before interest in taxes, performance that the analyst calls it nothing short of extraordinary.
  • 03:47 Meantime, NVIDIA
  • 03:48 stock will surge 258% from current levels and hit a $10 trillion market valuation by 20-30.
  • 03:55 That's according to IO
  • 03:56 Fun Tech analyst Beth Kindig.
  • 03:58 And perhaps the stock maybe even got a boost from Elon Musk's AI startup X AI, which raised 6 billion in a bid to challenge Open Ass.
  • 04:05 So there's just so much going on and so much love
  • 04:08 around NVIDIA.
  • 04:09 GameStop talk about love.
  • 04:11 Up 40% of its highs, finishing the day with a 25% gain rally again.
  • 04:15 The company said it bought
  • 04:17 brought in nearly $1 billion from a share sale program amid renewed interest for the so-called meme stock.
  • 04:23 The
  • 04:23 video game retailer on Friday said it capitalized and a flurry of trading earlier this month by selling 45,000,000 shares
  • 04:29 to raise just under that $1 billion mark.
  • 04:31 AMC was also higher today.
  • 04:33 So GameStop up 25%.
  • 04:35 I'm coming, I'm coming.
  • 04:36 Well, no, I'm just the memes are up again.
  • 04:38 I know like 25%.
  • 04:39 I kind of was like from the sublime to the silly, from NVIDIA to GameStop
  • 04:44 Insmed
  • 04:46 what just happened there.
  • 04:47 I'm
  • 04:48 just saying it's a little crazy.
  • 04:50 Insmed ticker in SM up almost 120% in today's session.
  • 04:56 This after the drug developer said a late stage study of its experimental therapy for.
  • 05:00 Lung disease met its primary goal as well as several secondary endpoints.
  • 05:03 It's about a $6.8 billion market cap and the company's stock now up about 50%, but again up almost 120% in today's session.
  • 05:11 All yours, buddy.
  • 05:12 OK, thank you.
  • 05:13 You got the gainers.
  • 05:14 I got the decline as I do want to start with Moderna among the worst performers and a percentage basis in the S&P 500 falling more than 8%
  • 05:21 ahead of this though was up a record 10 days in a row, reached the highest level since February of 2023.
  • 05:27 Can't go up every single day.
  • 05:28 It paired some of the early losses.
  • 05:30 It was down as much as 11%, but at one point it was the biggest drop since February of 2022.
  • 05:34 It's up so far this year, more than 54%.
  • 05:38 And then shares of DraftKings falling more than 10% today, falling the most intraday going back to November of 2022.
  • 05:44 After a progressive tax on online sports betting
  • 05:46 passed in the Illinois Senate on Saturday.
  • 05:49 Analysts said the potential for other states to follow suit is the primary concern for investors.
  • 05:54 So if it's approved in the House,
  • 05:56 the new tax would take effect starting on July 1st and operators are going to be liable for increasing tax rates based on their adjusted gross revenue.
  • 06:03 So they could end up paying between 20 and 40% based on revenue thresholds compared with the current 15% right now.
  • 06:09 So certainly will affect those companies bottom lines.
  • 06:11 But the one I really want to talk about is Celsius Holdings
  • 06:14 shares dropping the most since May of 2022 after industry sales data signal that the company's revenue growth is cooling.
  • 06:20 Shares falling by close to 13% today.
  • 06:22 It did tumble as much as 19% intraday a little earlier in the session.
  • 06:27 Morgan Stanley's Eric Serota cited Nielsen IQ data that said that Celsius's year over year sales growth slowed during the week ended May 18th compared to earlier in the month.
  • 06:35 So sales slowing concerning investors,
  • 06:38 up 50% so far this year.
  • 06:40 It was up 57% last year, 39% in twenty, 2248% in 2021
  • 06:46 and 940% in 2020.
  • 06:48 So in the last five years it's up
  • 06:49 5800% just in five years.
  • 06:53 OK, So that's a move.
  • 06:55 It's a move, a little bit of a pullback today though I would say.
  • 06:57 All right, so we'll just discount that 13%.
  • 07:00 I'm taking a look at the bond market here, guys.
  • 07:01 So we had a two year and a five year auction today.
  • 07:03 Maybe unusual we get
  • 07:05 both in,
  • 07:05 in one day, but they weren't that great.
  • 07:07 The bid to cover wasn't that good.
  • 07:09 Yields kind of pushed higher across the curve, particularly in the back end.
  • 07:11 And tomorrow
  • 07:12 we get the seven-year, about $44 billion worth of that will be quite interesting.
  • 07:16 I mean, we're taking down the supply, but yields got to go higher for that.
  • 07:20 Yeah, interesting you you bring that up too, because you talk about how that folds over into the mortgage market.
  • 07:24 And I know Carol and Tim, you guys been keeping an eye
  • 07:27 on what was an interesting story here about mortgage rates
  • 07:31 actually climbing back up.
  • 07:32 Am I reading that right?
  • 07:33 Yeah, exactly.
  • 07:34 And what's interesting is with these mortgage rates stuck around 7%, you've got a younger generation for the most part and just individuals kind of rethinking whether or not
  • 07:42 buying a home makes sense anymore.
  • 07:43 And that whole idea of, right, you know, you went to school, you got a job, you maybe got married or found a partner and then you bought a home.
  • 07:50 It's the American dream for generations.
  • 07:52 And maybe it just doesn't, you know, tip financially make sense anymore.
  • 07:55 I think it,
  • 07:56 you know, and I kind of had this realization while I was reading this story
  • 07:59 and looking at some of the examples of the folks Paulina spoke to, Alex.
  • 08:02 But the fact that you can rent in Westchester for $3500 a month, which is, you know, a fraction of what this guy would be paying if he took a mortgage on, had homeowners insurance and all the other home ownership costs associated.
  • 08:14 And now he's using the down payment
  • 08:16 to invest in, you know, a 5% savings account.
  • 08:19 So he's like making a guaranteed 5%, at least for now
  • 08:22 on that.
  • 08:23 It made me think, you know what, wait a second, maybe owning a home isn't the best financial decision
  • 08:27 right now.
  • 08:28 Like it used to be.
  • 08:30 If you can invest that down payment and
  • 08:32 pay a lot less than you'd be paying on your mortgage, then it absolutely makes sense to rent right now.
  • 08:36 Yeah, that's actually a really good point.
  • 08:37 And it's a different way of accumulating wealth because that's how you think about home owning, right?
  • 08:40 You buy it,
  • 08:41 then you sell it, you upgrade, and then that's how you sort of build your wealth and then get bigger and bigger.
  • 08:45 But if you're right, if you can sit in a five year
  • 08:48 for 5%, maybe that actually is a bit better if you do have to rent.
  • 08:52 But you know, it is interesting with the new home sale market, you've had a lot of builders continuing though to offer concessions in the hopes that you will draw in those new buyers because we still need those buyers and there still is a lack of supply.
  • 09:03 So I shouldn't invest in the home, but maybe in CD?
  • 09:08 Alex, what about investing in movie theater companies?
  • 09:11 Is that a better proposition?
  • 09:12 Not if
  • 09:13 the data over the weekend had anything to say about it.
  • 09:15 Did you guys see this
  • 09:16 that you took a look at what
  • 09:18 Furiosa?
  • 09:19 Apparently
  • 09:19 Furiosa the the next in the Mad Max saga at the latest installment only took in $32 million.
  • 09:25 Garfield, the movie almost hit that and beat that.
  • 09:28 I feel
  • 09:29 I would watch that.
  • 09:30 I hadn't even heard of either of these.
  • 09:32 I was actually.
  • 09:33 What?
  • 09:33 You haven't heard of the Mad Max saga?
  • 09:34 Where?
  • 09:35 Where are you?
  • 09:35 I've heard the first Mad Max.
  • 09:36 I saw the first Mad Max.
  • 09:37 That wasn't the first one.
  • 09:38 That was the latest one in a long saga over decades.
  • 09:41 But a few years ago, maybe the saga was in the desert.
  • 09:44 The one in the desert where they drive fast.
  • 09:46 Yes, that's the one.
  • 09:47 I think that's all of them.
  • 09:47 A few years ago, too.
  • 09:48 All of them, actually.
  • 09:49 Yeah.
  • 09:50 You know, milk gets.
  • 09:51 And how about the four year time?
  • 09:53 Yeah, I'm sure it costs a lot of money to it.
  • 09:55 I don't.
  • 09:55 Maybe we wanted to be outside.
  • 09:57 Maybe we're just tired.
  • 09:57 Or maybe, you know, not every movie's good.
  • 10:00 No, but that's the point.
  • 10:01 It wasn't, but it wasn't even just this movie.
  • 10:03 I mean there were a couple others that also came out that also underperformed.
  • 10:05 So I don't know if it was just the quality of the film.
  • 10:07 It's supposed to be good.
  • 10:09 I guess somebody will tell us eventually.
  • 10:11 There's a lot of good stuff on streaming and I'm paying like millions of dollars for all my streaming channels.
  • 10:15 So maybe I'm just going to watch that.
  • 10:17 Maybe that's a good point.
  • 10:18 Maybe that's actually part of it.
  • 10:19 Can you, can you do mind sharing your password?
  • 10:21 I'm trying to save some money
  • 10:23 trying to buy a home in Westchester.
  • 10:25 Exactly, exactly.
  • 10:27 Alright guys, that's a wrap.
  • 10:28 How many more days till Friday
  • 10:30 through the days?
  • 10:31 Not that I'm counting.
  • 10:32 Alright, that's a wrap
  • 10:33 across.
  • 10:33 But for radio, TV, YouTube, Bloomberg Originals, folks, we will see you same time, same place tomorrow.