Most Sectors Close Negative Today | Beyond the Bell

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. And here they’ll take us beyond the bell. It’s a global simulcast. We’re joined right now by Scarlett Fu, by Carol Massar and by Tim Senovic. And we welcome our audiences across all of our Bloomberg platforms, television, radio and our partnership with YouTube. Yeah, hey guys, very much a different tone here. It feels like today as we continue to watch, you know, pressure on yields. I mean I do feel like we’ve talked about this a lot. It’s kind of this new narrative of kind of the expectations in terms of Fed rate cuts, maybe not as many as many investors have been expecting. Having said that, on the equity side of things, feels like some really broad based selling here. If you look at both the S&P 500 and NASDAQ 100, yeah, off our lows of the day, but still down on the S&P 500 now by 7/10 of 1%. Scarlet Carol mentioned the idea of sort of figuring out rate cuts for the year. It’s what Liz Young just talked about with us over at sofa. She said we’re in a period where we’re not going to get the cuts that we thought we’d get. And the market has not fully digested that. It has not fully digested that. And it’s showing up in volatility measures. The VIX up for a third day, although it’s at 14 1/2. So we’re not talking about elevated levels yet. But the move index, which tracks volatility in the US Treasury market, up 9% on Monday, right, but you would expect even more maybe we just see rates going to be sticky. Now people are trying to talk about what happens if maybe we need to price in no cuts at all and maybe even a hike. If you look at the SOFR as positioning looks about 20% positioning for no cut at all or a hike totally different. Yeah, I was curious, I mean everyone’s making a big deal about sort of the total number of rate cuts priced into this market right now. But when you look at the starting point and how that’s moved, I mean even two to three now seems a little bit implausible, particularly if you think the election might actually interfere with the feds decision making. We get the closing bells here in New York and I think the quote the late great Alex Steele, it could have been worse. The S&P 500 was down as much as 1% here on the day and it’s going to finish down by about 38 points or only about 7/10 of a percent holding right around that 5200 level. The Dow Jones Industrial average down about 400 points or 1% on the day, a similar percent move lower for the NASDAQ composite down to 16,240. And your relative laggard on the day that is the 2000, a loss of about 38 points or 1.8%. All right, quick check S&P 500 folks. Most names lower, scarlet 400 names to the downside, 103 to the upside. So as we said, largely a risk off trade for many names today. Yeah, very much a lot of red across the IMAP pie in terms of the worst performers. You’ve got healthcare off by 1.6%. A lot of health insurers like Humana, CVS which owns Aetna and Centene, you’ve got consumer discretionary and real estate investment trusts, consumer discretion train. That’s of course Tesla. And on the upside, energy stocks, 1.4% gain today, now up 15% so far this year. Utilities and communication services also moving up just a notch higher. All right, guys, a little tricky for me to find gainers. I had a little assist from my buddy over here, Tim Stenovic. So let’s go to it. Some of the individual gainers, does he normally do your work for you? We actually help each other. That might be a a new thing to you, but it’s a partnership. It’s a partnership cutting a little. Just kidding, just kidding. Just kidding. All right. So let’s get to some of the individual gainers. Another oil deal, We had some M&A activity actually on this Tuesday. We had SLB, formerly Schlumberger, agreeing to acquire rival oil field service provider Champion XI. Feel like this is like in your wheelhouse, Alex. It is. So like I’ll just do it quickly and feel to free to add to it anyway. So buying Champion X for 7.8 billion, it was an all stock deal. What do you think to Alex of all the energy deals that continue in this space well in this particular world, this is about SLB trying to control the well from beginning to end, from beginning and drilling to the end in retirement. So that’s kind of interesting. It’s the well life they talk a lot about. But hey, if you get oil that still stays at 85, is it actually bring in the sellers because they’re like cool, I get a better premium and the buyers are like, hey if we go to 185 deal makes actually things look really good, could see more of it potentially, right. All has to do with the price. This is why we love you are just one of the many reasons that color around all things in the energy space. All right. So champion X up about 10.4% in today’s session. I’m sure you guys talked about this another deal and this had to do with Endeavor Group holding the talent agency. We know it. They’re the controlling investor in WWE. Also Ultimate Fighting Championship. They were agreed to be acquired in a 13 billion dollar buyout by the private equity group Silver Lake Management which already owned a controlling stake we should point out in Endeavor. So interesting deal but they did offer minority investors 2750 a share for their holdings And then just to layer on that in Endeavor, let me just bring it up here. What it was up about 2% here that stock closing at 25 unchanged just under 26 share. Also higher in the news Endeavor which owns a 51% stake in TKO, the parent of Ultimate Fighting and World Wrestling. They also moved higher. In today’s session, they were up just about 5.2% on the news that Dale news between Endeavor and Silver Lake was noted that TKO isn’t party to the transaction and will remain A publicly traded company, at least for now. OK, I had the easy job today finding the decliners. It was an embarrassment of riches. Tesla finishing day down by 4.9%. It fell as much as 6.7% just after the company reported first quarter deliveries that missed the average analyst estimate. Tesla delivered 386,810 vehicles in the first three months of the year. It missed the Bloomberg average estimate by the biggest margin ever going all the way back seven years. The average estimate was for about 450,000 vehicles. Well, you mentioned healthcare. I want to talk about a couple of these. United Health Group falling by 6.44%. This after the US regulators decided against boosting payments for private and Medicare plans. It’s a break with recent practice, and it means that health insurers are now facing lower payments than they’d anticipated for the year 2025. Humana. Which that brings us to Humana. Down 13.4%, it was the worst performer in the S&P 500. He gets Most of its revenue from Medicare fell to its lowest point in four years. Today’s move was its biggest move. Lower since 2022. PVH Corp down by more than 22% today. The company owns Calvin Klein, Tommy Hilfiger and others. It plunged the most, going all the way back to Black Monday, October 19th, 1987, more than 35 years ago. This after it said it expects revenue this year to decrease by 6 to 7% compared with a 2% increase last year. The company has been working to to on this transformation. It’s focused in strengthening Calvin Klein and Tommy Hilfiger, which I don’t know if I have to tell you guys it’s lost momentum among shoppers in recent years. Yeah, don’t see a lot of it out there little bit. Yeah. Is it my turn am I going to yields. You can. Yeah, it did all. I did 4, I did 4 decliners today. Hope that’s OK. I mean, no one stopped you, All right. It’s going to be easy. You’re seeing a sell off, particularly in the back end. We were up though by about 10:12 basis points, but now we’re only up by about four. I was talking to Ira Jersey of Bloomberg Intelligence earlier and he thinks a lot of what we’re seeing is actually repositioning because if you’re looking for hire for longer, it really would be the front end that would be moving more. So sort of wait a couple weeks, just let everything settle out and then maybe we’ll get a cleaner read on where the bond market is positioned. Hey, hey, guys. I just want to bring our attention to some headlines crossing the wire right now. This involving Intel. The shares down about a percent here and after hours trading. They’re giving some type of guidance here, though it seems to be very specific to its foundry business here. They’re basically saying the 2023 foundry revenue came in well below where it was in the year prior. But it says that it now sees a framework for that business going forward that does provide some degree of margin expansion, says it has a new structure that is designed to drive up cost discipline and it will recast its operating segment financial results for 2021 through 2023. So just based on this, I think we need, we need to dive a little bit deeper into this guys, because now that I look a little deeper into this, this does appear to be a restatement of past results specifically related to that foundry business. I think we need to get some more details and we’ll get you an update here on what’s going on. We also have some numbers on the data center and AI revenue as well for 2023. So this has already gone past $12.64 billion versus $16.86 billion. So that is a decline on an annual basis, but we don’t really know what the estimate is. So I can’t give you a read on whether that’s better or worse than expected. But we go back to that idea that perhaps it’s foundry businesses and flux a little bit here as it has also named a new CFO of Intel Foundry. Lorenzo Flores will be the new CFO of this part of its business. Yeah, again, just reading from their press release, there are some comments by Pat Gelzinger, the CEO obviously of Intel. But they are just kind of focusing that talking about this new structure designed to drive increased cost discipline, higher returns also by providing greater transparency, accountability and incentives across the business. So, yeah, I think we need a little bit more to know exactly what it means. And let me just clarify too, now that I had a chance to read through this. So it does look like they are effectively breaking out this business as a separate segment with a separate leader and going back and providing segment results results for the past year. So not a restatement, more of a disclosure of how the business had been performing over those previous years. Yeah, shares of Intel right now, they were down just about 3/10 of 1% in the change from the close. Still we’re still getting earnings guys. Right now other companies are reporting, do you see Dave and Buster’s is reporting fourth quarter earnings per share missing estimates, shares falling just about 7% after that earnings miss 10%. Now excuse me, Yeah, that’s not getting hit. Just one more quick one from Intel targeting a 40% adjusted gross margins at the foundry business and targeting 30% adjusted operating margins at the foundry business. So yeah, so we’ll look for some more analysis on it, but we are seeing Intel continuing to trend a little bit lower. I’m sure that there will be more commentary certainly from the analyst community around this and from the company. All right guys, that’s a wrap. Our cross-platform, radio, TV, YouTube, Bloomberg Originals, we call it Beyond the Bell. We will see you again, same time, same place tomorrow.

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