And right now we are 2 minutes away from the end of the trading day.
Romaine Bostick alongside Alix Steel. We're counting down to the closing bell
and here they'll take us beyond the bell.
It's a global simulcast. Everyone's back Scarlet Fu here in the
TV studio, Carol Massar and Tim Stanwick in the radio booth as we welcome our
audiences across all of our platforms. A Here on a somewhat tepid end to what
is still going to be a positive week for U.S.
stocks. You know, I think that's a significant
point and also that it's going to be up for three weeks in a row here, staying
above that 5200 point or Abigail Doolittle saying, you know, that's
really key. If we can go into the weekend staying
above that, that's kind of key in terms of the upward trend momentum.
So that is something we are certainly watching here.
5225 right now on the S&P 500, I think it's interesting to see continued
momentum to the upside right now continuing from last week.
And we really had two events last week that prompted this.
It was that Fed friendly jobs report and then also some optimism post the Fed
meeting with Jay Powell. And then come this week, some positive
earnings that basically everybody saying, okay, well, I guess everything
is awesome Again, everything is awesome. And there's some data that may show as
well that the economy is not holding up maybe as well as some of the numbers
have indicated. Also, almost everything is awesome,
right? Let's not forget, too, that stock
buybacks are really supporting the equity market.
I mean, that $110 billion repurchasing plan from Apple makes up for half of the
$200 billion that Bloomberg estimates S&P 500 companies have announced so far.
I love me the Lego Movie, everything as I'm.
But but but also you have to wonder, too, was the sell off.
That sell off is extreme. Was it just about tax selling?
And if we're done with that is a path of least resistance higher?
Oh, that's I mean, there's an interesting call by the strategist over
at J.P. Morgan as well, over actually a
Bloomberg intelligence that's, you know, markdowns.
Our team kind of pointing out that once you get to the end of these earnings
seasons, at least a large cap earnings season, we tend to see a bit of a
pullback, attention to see what happens over the next week here with the Dow
Jones Industrial Average, at least on the day holding on to gains and on the
week as well. We should point out for the day, up
about 3/10 of a percent, right around 39,500.
The S&P at 5002 to 2 to end the session, up about nine points or 2/10 of a
percent. The Nasdaq is going to go lower slightly
on the day, only by about five points or less than a 10th of a percent.
And the Russell 2000 slightly lower here on the day by 7/10 of a percent.
All right. You mentioned earnings.
Let's not forget that we've got Nvidia, still a big one coming up May 22nd.
Having said that, back to the big caps I go, including something like an Nvidia
S&P 500 scarlet. Most names in the index higher today,
298 moving up 199 to the downside, six unchanged and the modest gains in the
Dow and the S&P 500 have translated into fairly modest moves for the 11 sector
groups in the S&P 500, too. You look at the gainers and losers
pretty much evenly split. Staples infotech and financials are the
leading gainers. And on the downside, you've got consumer
discretionary energy and rates. Yeah, a fair amount of green in that
pie. All right.
Let's get to some of the individual gainers.
We've all been talking about it today, an IPO, the high electric car brand.
We're talking about Zeekr, owned by Geely Holding rising as much as 40%,
just under 40%. At its high today, an expanded IPO, the
biggest U.S. listing by a Chinese based company since
2021. So finishing the day zeekr up 34% in
today's session. Novavax really an outperformer at its
highs today, guys, up almost 150%, finishing the day, doubling up 99%.
Biggest one day gain intraday in more than 15 years, forcing some short
sellers betting against the stock to exit their positions at a loss.
The company signed a $1.2 billion licensing agreement with Sanofi.
It include commercializing a combined Covid-19 of flu shot.
I heard you, Alex, talking about it with Paul.
This one was really interesting. The move did boost the stock that had
plunged about 99% from its 2021 peak amid waning demand for its COVID
vaccine, TSMC also to Taiwan Semiconductor guys up about four and a
half percent. The company rallying after a saw April
sales jump 60% to 7.3 billion. A sustained demand was helped by the
beginnings of a recovery in consumer electronics.
That's always an important one to watch, certainly within the semi space.
In terms like Carol, you've got to do Sweet Green.
You like Sweet green. It's up.
You love Sweetgreen. I do love Sweetgreen, up 34%.
In today's session, the company increasing its annual sales projections,
showed improved profitability as it seeks to expand its footprint.
The company now anticipates same store sales growth of as much as 6%, up from a
prior expectation of 5% at most. So a lot of enthusiasm in that name.
People love those salads, even if they're $17.
I don't, but some people do. Some people do.
Yeah. Who I mean, who has time for lunch?
Anyway, that's what I want to say about the truth.
Okay, let's get to some of the decliners here.
I want to start with Akamai, the worst performer on a percentage basis in the
S&P 500 falling today by 11%. Akamai shares falling the most, going
all the way back to 2017. It was an earnings story that's
forecasted adjusted earnings per share for the second quarter.
Missed the average analyst estimates analysts after earnings wrote about
weakness in the. Annie's CD and its content delivery
network business, and also want to talk about ticker DNA.
Ginkgo Bioworks down 17.3%. Date shares fell the most ever today
since going public back in 2021 after the company cut its revenue forecast for
the full year following first quarter sales that fell short of expectations
from Wall Street. We got a downgrade from William Blair
after the results. Listen to this revenue figure that came
in $37.9 million. It was a 53% year over year decline for
the company. Also fell short of the estimate of $46
million. It's probably familiar name to a lot of
people who follow Cathie Wood and Ark because her company is the second
largest shareholder of Ginkgo Bioworks. And here's a new one.
It's not just the EV companies that are going public today.
Zeekr On the New York Stock Exchange today, there was another public debut
Arklow. It's a developer of advanced nuclear
fuel systems backed by Sam Altman. It's slumped today.
It's in its debut after merging with a blank check company.
It's part of a wave of companies that are looking at new nuclear reactor
technologies. Investors not so hot on it today.
Shares falling more than 50% today. So not everything is awesome all the
time for everyone. Well, I'm decliners, so I have to, like
still find the not awesome stuff every single day.
You got to get in there not on some of your long treasuries.
So you're seeing a little bit of a sell off pretty much all across the curve.
And the treasury market yields up anywhere from 3 to 5 basis points
depending on where you look. But the significant part of this week,
guys, was really the take down that we saw at the three or the ten year, the 30
year. It got more awesome as you went on per
duration. But I also feel like this just shows
that you miss time but mentioned those earlier.
I was talking to Joanne Su who does the data and she was saying that consumers
are really worried about higher rates, not lower, not the same higher rates.
All right. So speaking of higher rates and just
inflationary concerns, we saw that consumer sentiment you miss coming out
with their numbers. U.S.
consumer sentiment declining in early May to a six month low, short term
inflation expectations. That was some of the concerns picking up
and also concerns about the job market. And so this story really resonates.
And you think about it, something remain.
I feel like we talked about it milk and that a lot of people still feeling the
inflation pinch out there and McDonald's looking to launch a $5 meal
that to really bring in some of those penny pinching consumers.
I mean, for a lot of Americans, it's really kind of tough to make ends meet.
No doubt about it. Yeah, definitely.
It's hard to do that. But can McDonald's actually do it or can
its franchisees do that in a place like California, where the minimum wage for
fast food workers has gone up to $20 an hour?
That's a big question. Yeah.
I mean, but also it's also what do you expect out of some of these companies,
Right. I mean, I think a lot of people look to
McDonald's as a value, right? Or at least that's the perception of it.
And how many times have we heard people complain about what it cost an hour to
get a full meal at some of these fast food chains out and just McDonald's, but
some of the other. So maybe it works to their advantage?
I don't know. I don't know.
But to Scarlett's point, too, I mean, you obviously have to balance the labor
cost. But we should point out, too, I mean, at
least the McDonald's next door to us here at Bloomberg World headquarters, I
think they have any labor there, Right. I mean, have people in the back cooking.
Don't you order everything? Yeah.
You're the labor from those. Are you the customer?
Do I get a discount for you? They should pay me 28.
Like when you fly on an airplane these days.
Right? To my go, man.
I'm just going to start flying the plane soon because, man, I get the bags.
I checked myself in, I dropped the bags. I mean, it's kind of getting a little
crazy. I don't want you, Carol.
I mean, I know you're so used to highfalutin stuff.
You know, Carol took the private jet back.
I had to fly, Coach. I did not tape your private jet.
You know, I was delayed like everybody else in the wee hours.
Okay, guys, let's get to my favorite story of the day.
This has no relationship to McDonald's. It is great story.
That amazing Apple iPad commercial. I don't know if you guys saw it.
Oh, yeah. We were debating it in the editorial
meeting today. Everyone had different feelings on it.
But basically, the idea that you get this big crusher coming in and crushing
everything that has to do with art and creativity in the last few decades and
putting it all into an iPad, it just feels like this was too on the nose.
That's what people are scared about with.
I was the focus group. That's what I want to know.
I mean, I think the big story here is, first of all, Apple has come out and
apologized for this about 48 hours. Tim Cook still has it on his on his
Twitter X. But if you go and look at the responses
to his tweet, no question. I think it's fair to say Apple missed
the mark when it came to this ad. I want to know how it got approved, who
signed off on it, because someone's kid who watches on Instagram, watches the
hydraulic press videos on Instagram and was like, I follow the hydraulic press
on Instagram saying you didn't get it. But but, but I love the idea of, like,
crushing all history of human creativity and then replacing it with an iPad,
right? It's just gummy bears.
It's another thing to crush music. Exactly.
For Todd, it's so not Apple. This is so not Apple.
Where's the meeting? Like, they were down with it, They
showed it and everybody's, like, high fiving.
Yeah, Although I guess you could say it's the same company that made us all
listen to you, too. As Dave Lee pointed out in Anatole
earlier this week, you say this is an apple and.
That's what they've been for now for a while.
I mean, it's I mean, it just seems like it missed the mark so much that they,
you know, they want to support creativity.
Right. Well, I mean, they do have an all.
Yeah. Yeah.
They'll smash their computer, but you can do it in your iPod at the piano,
too. I'm sorry.
The guitar. Guitar is gone.
Metronome is gone. Oh.
How many times do you think they did that commercial?
How many takes that require exactly? How many people died in the process?
Signing off. Signing?
Let's put it. Push the button.
Let it out. All right.
I'm sorry. Okay, that's a wrap.
Guys, have a great weekend. Our cross-platform coverage, radio, TV,
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Have a good and safe weekend. And a happy Mother's Day to all you
moms. You, too.
Happy Mother's Day. We'll see you at same time, same place
on Monday.