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00:00And right now we are two minutes away from the end of the trading day.
00:03Romain Bostic here with Katie Greifel taking you through to that closing bell.
00:06It's a global simulcast.
00:07Carol Masler, Tim Senevic join us now.
00:09Welcome to our audiences across all of our Bloomberg platforms, television, radio,
00:13our partnership with YouTube.
00:15The S&P 500 up 2%, the NASDAQ 100 up almost 3%, a confluence of headlines crossing the
00:22Bloomberg terminal over the last few minutes, including the pricing of SpaceX, an IPO that
00:28will start at 135 bucks a share and news.
00:31Carol Masler from President Trump saying that he has a deal with Iran that could be signed
00:36as soon as this weekend.
00:38Yeah, listen, about 1.31 p.m. Wall Street time, the tone in the market certainly changed.
00:43That's when everything took off.
00:44That's when that headline crossed that President Trump said he's not going to do and pursue
00:49any additional attacks against Iran.
00:52The only thing I would say, we've seen some pushback by the Farris News Agency, Iran not
00:57necessarily aware of any of this or any agreement.
01:00We're going to watch this very closely.
01:02But at this moment, investors, they are buying up treasuries.
01:05They are buying up stocks.
01:06Quite a rally on Wall Street.
01:08And they're selling oil.
01:09And they're selling oil.
01:1090 bucks a barrel on both Brent and WTI.
01:12We had a great chat with Stephen Cook over at the Council on Foreign Relations.
01:16He's written at least four books about this region of the world.
01:20And he was, look, this was in the three o'clock hour.
01:23It was before we heard from the president just now in the Oval Office.
01:26But he did say, we've seen this movie before.
01:28The idea that the president sometimes gets ahead of what Iran actually has agreed to with
01:34regards to this.
01:35She was kind of surprised by the market news, right?
01:38Yeah, really.
01:38You think about what the weight on the market has been, what's been weighing on sentiment.
01:42It hasn't been the geopolitical situation.
01:44So to see this response, especially as Carol said, we don't know what the other side is
01:49thinking, is pretty interesting to see.
01:52It is interesting to see.
01:53And I guess we're going to find out within the next 48 to 72 hours just how much of that
01:58is real.
01:59But for right now, let the market have their party.
02:01A two-day sell-off gives way to one of the biggest gains that we've seen since probably
02:05early April or late March.
02:07The Dow Jones Industrial Average up 929 points, or about 1.9%.
02:13The S&P adding about 127 points, or 1.8%.
02:17The Nasdaq Composite up 2.5%.
02:19The Nasdaq 100 up 3.3%.
02:21And the Russell 2000, Carol Master, closing out the day higher by 86 points, or 3% even.
02:27I got to say, Romain, I'm almost surprised that not every name in the S&P is higher.
02:30But they're not.
02:31320 names gaining in today's session, Katie.
02:34181 to the downside, 2 unchanged.
02:37Let's take a look at the sector makeup here.
02:39It's pretty interesting, because on a percent basis, your biggest gainer is materials, which
02:44is maybe unintuitive, higher by about 3.3%.
02:47Romain was just telling me how paper is made, which was fascinating.
02:51Industrials also having a great day.
02:53Was that the sausage being made comment?
02:56Did you overhear that?
02:57Commercial paper, or actual paper from papyrus?
02:59You know, we didn't really get into it.
03:01Yeah, it's not papyrus, by the way, you know.
03:02But yes, it's very...
03:03I don't know if you know where the word paper comes from.
03:06It's a...
03:06Thank you, Tim.
03:07You got it.
03:08Okay.
03:08The history major.
03:09Let's take this outside, kids.
03:12Offline information technology.
03:13That is the big, bright green slice there.
03:16Higher by nearly 3% as a sector.
03:18In terms of what didn't do well today, it's probably what you would expect.
03:21Energy down 2% as a sector.
03:24Consumer staples, more of a defensive sort of bet there.
03:28Also off by about half a percent, as we do see this huge rally.
03:31That is not the color of a papaya.
03:34I'm just going to put that out there.
03:34No, I said papyrus.
03:35Oh, I'm so sorry.
03:37All right.
03:37You know, what can I tell you?
03:38You guys, what are you doing?
03:40What are you doing?
03:40All right.
03:40Let's get to some individual gainers, if I may.
03:43I had a lot to choose from, as you would guess.
03:46Got to talk semiconductors, man.
03:49Standout Group today, they were up at their highs, 8%, finishing just below that at 7.9%
03:54as a whole, the Philadelphia Semiconductor Index.
03:57We've seen this before.
03:59Broadly at play, you had shares in chip makers and other AI-related firms rising after Oracle
04:05reported quarterly capital expenses that were higher than estimates, driven by increased
04:09data center spending.
04:10So the assumption is that those higher costs, that has to do with higher chips and everything
04:14related.
04:15You also had some analyst calls.
04:16So let's break it down.
04:17Intel, up more than 9% after B of A raised its recommendation to buy from underperform,
04:23a double upgrade on expected growth from central processing unit sales price target to $135,
04:29a share from $96, the stock closing just below $117, a share.
04:34Stock, though, up more than 200% year-to-date.
04:37That's Intel.
04:38Let's move on to Applied Materials and KLA.
04:41Barclays reaffirmed overweight ratings on Applied Materials.
04:44Hey, Carol, I'm just going to interrupt you for a second.
04:46Oh, what do you got?
04:46I apologize.
04:47No, go.
04:47The president is speaking once again about that deal that he is calling a deal.
04:53He says that he has heard that the supreme leader of Iran has agreed to the deal and
05:00that lifting the blockade is a part of it.
05:03He also says that he thinks that this could be done this weekend.
05:06So a bit of a reiteration of what he said before, but now the latest redhead crossing the wire
05:10is that according to the president, he's saying that lifting the Hormuz blockade is part of that
05:15Iran deal and it is his understanding that the supreme leader of Iran has agreed to it.
05:20He also says that as part of that deal, Carol, that Iran will not have a nuclear weapon.
05:28You know, what's notable about this coming right now is the president's been speaking for
05:32more than 20 minutes at this point.
05:35And look, I'm not listening to this and we're just looking at headlines right now.
05:38Perhaps he's being asked specifically about this, but it's interesting to me that it's
05:42just coming up now.
05:43And once again, Romaine, to repeat what Romaine said, the president says lifting that Hormuz
05:47blockade is part of the Iran deal and under the deal, Iran will not have a nuclear weapon.
05:52I guess what I'm looking for, I'm going to go back to what Katie said, because I think
05:54this is so important too, is I just, I feel like I've seen this back and forth.
05:58Are we, does it feel like we're closer?
06:00Maybe, but I want to see some confirmation by Iran because we've all talked about the
06:05different missions of the different entities involved in this war.
06:08And Iran has a lot at stake here.
06:11And maybe confirmation as well by Israel, because of course, that's kind of been a sticking
06:14point in sort of getting these deals as they have obviously interests that don't always
06:18align directly with what Trump is looking for.
06:21Yeah, I will.
06:21Go ahead, Katie.
06:22I was just going to say, absolutely, and you think about, you know, the ceasefire that
06:25has been in place for several months now, it's been really sporadic.
06:28You've seen sporadic fighting back and forth between, you know, a few different sides here,
06:34even throughout that, I think, two-month ceasefire at this point.
06:37So again, a lot of questions here, and it does look like we are in reporter Q&A, so perhaps
06:42the president was asked directly about that.
06:44But to return to Carol's point, the fact that, you know, we did hear from Iran's semi-official
06:49news agency earlier today that leaders had not yet approved the text of any agreement
06:54with the U.S.
06:55We'll just have to see what comes out of the other side of the table.
06:59Yeah, and we saw a lot of stocks that could potentially benefit from this actually move
07:03higher.
07:03The airline sector as a whole was up about 8 percent.
07:07Meanwhile, there was still a lot of pressure going on with a lot of the names in the software
07:11space.
07:11Oracle was down significantly.
07:13Adobe actually fell for a fifth straight day, and now that company actually outwit their
07:18earnings from the most recent quarter.
07:20The company did say that in the second quarter, it did beat at about $6.62 billion on the revenue
07:27side.
07:27The street was looking for roughly about $6.5 billion.
07:31EPS, $5.96.
07:33The street, on average, looking for $583.
07:35Here's your forecast.
07:36For the current quarter we're in, the company says look for revenue of $6.67 to $6.72 billion.
07:42The low end of that range is above the average of analysts' estimates of $6.51.
07:47And, Carol and guys, the adjusted EPS range, $6.05 to $6.10 a share.
07:51The low end of that range is well above the average of street estimates of $5.77.
07:56I mean, as we know, this company's been taking a pounding.
07:59Another headline crossing.
08:01The company's CFO, Dan Dern, departing the company June 15th.
08:05Again, this stock is down about 37 percent year-to-date.
08:08We are seeing now the stock turn negative, now down about 1.7 percent, Tim.
08:12Yeah, the redhead.
08:13The OBC's third quarter revenue coming in $6.67 billion to $6.72 billion.
08:20The estimate was for $6.5 billion.
08:22Shares initially climbed after that.
08:24The numbers first came out.
08:26Shares down about 2.2 percent right now.
08:28Second quarter revenue, $6.62 billion.
08:31The estimate was for $6.45 billion.
08:33The company sees third quarter adjusted EPS, $6.05 to $6.10.
08:36That beats the estimate of $5.77.
08:39I mean, this is one of those SaaSpocalypse stocks.
08:41And we were actually talking with one of the executives a little bit earlier at ServiceNow,
08:46another software stock that kind of got caught up in that big downdraft.
08:49And they're now trying to make this case here that there's sort of this data management idea here
08:53that these companies actually benefit from despite the build-out in AI.
08:57I was talking to a video editor last week who's been using Adobe's tools for years
09:00and paying for them for years.
09:02He's freelance, and he said the number of startups where he can actually just essentially type
09:08in a prompt, leave, go pick his kids up from school, and then come back, and that editing
09:14is done.
09:15It's unbelievable.
09:16He's been doing this for 25 years.
09:17Why did it take so long to get that Nori clip on the web?
09:21Which clip?
09:22Never mind.
09:23It's an interview that related.
09:24I'm just litigating.
09:25Oh, I guess I haven't seen it yet.
09:27Sorry.
09:28I don't think there's a story here.
09:28I'm sorry.
09:29I do want to make the point, though, that outside of the numbers as well, there is an
09:32interesting story when it comes to Adobe's C-suite here.
09:36We're still waiting to see who their new CEO is going to be.
09:39Remember, their longtime CEO said in March that he would step down.
09:44Bloomberg has reported that Adobe is eyeing internal candidates for the role here.
09:49So maybe perhaps we're going to get more detail of that on the call, but definitely one of the
09:53watch items when it comes to Adobe, when you think about all these different existential
09:59crossroads that Romaine and Tim were just talking about.
10:01Yeah.
10:01Steve Day to serve as interim CFO as Dan Dern departs on June 15th.
10:07All right.
10:07So that's just around the corner.
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