Markets Open the Week Flat as Oil Prices Rise | The Close 8/10/2026

>> THE COUNTDOWN IS ON. EVERYTHING YOU NEED TO GET THE EDGE AT THE END OF THE MARKET DAY. THIS IS "THE CLOSE." >> STOPPED STARTING UP THE WEEK ON SHAKY FOOTING AS OIL PRICES SCALE THE WALL OF WORRY. I AM DAVID GURA. >> WE ARE KICKING UP TO THE CLOSING BELL HERE IN THE U.S.. >> AS WE REACHED CLOSING BELL HERE IN NEW YORK CITY, THE S&P DOWN SLIGHTLY. THIS HAS BEEN THE STORY OF THE DAY SO FAR, VERY LITTLE MOVEMENT IN EQUITIES. BRENT CRUDE HIGHER AS WE FOCUS ON THE WAY THE GOVERNMENT IS AFFECTING THE MARKETS ON THIS MONDAY. BRENT UP ABOUT 5% OVER THE COURSE OF THE DIE AS MARKETS REACTED PRESIDENT TRUMP TALKING ABOUT THE PROSPECTS TO REOPEN THE STRAIT OF HORMUZ. NEGOTIATIONS CONTINUE BETWEEN IRAN AND OMAN. DOLLAR-YEN, AS WE TALK ABOUT GOVERNMENT INTERVENTION, SEEING THAT RISE SLIGHTLY HERE. AS WE LOOK AT THE EFFECTS OF THE TREASURY SECRETARY'S EFFORTS TO BOOST THE YEN. INTEL ANNOUNCING A $50 BILLION SHARE SALE, THE FIRST OF ITS KIND SINCE 1971 COME AS WE SEE MARKETS HAVE MORE FAITH IN THAT COMPANY'S ABILITY TO WRITE THAT SHIP AFTER A TOUGH NUMBER OF YEARS. THE U.S. GOVERNMENT INVOLVEMENT IN INTEL AS WELL. ISABELLE: LET'S LOOK AT SOME OF THE DAY'S BIGGEST MOVERS. DOMINO'S PIZZA STOCK DOWN NEARLY 2% AFTER THEY WERE CUT FROM FIVE TO A WHOLE. THEY SAY THE SAME STORE PROFILE CAN ACCELERATE MEANINGFULLY IN THE SECOND HALF OF 2026. MONDAY.COM SHARES DOWN BY MORE THAN 5% AFTER AN ACTIVIST GAVE A REVENUE FORECAST THAT IS WEAKER THAN EXPECTED. THE GARDENS ALSO MISS THE AVERAGE ESTIMATES. TRADE DESK IS ALSO DOWN 5%. I SHOULD HAVE GIVEN YOU THIS. THIS ONE IS REALLY SOMETHING TO WATCH BECAUSE IT IS DOWN NEARLY 5%. MULTIPLE FIRMS ARE DOWNGRADING THE ADVERTISING COMPANY AFTER WEAK EARNINGS. 13 HAVE DOWNGRADED THE STOCK FROM HSBC, TRUEST, YOU NAME IT. DAVID: LET'S KING THINGS UP WITH CALLIE COX, CHIEF MARKET STRATEGIST AT RITHOLTZ MANAGEMENT PAYTON WASHINGTON PLAYING A BIG ROLE IN THE MARKETS. CURIOUS HOW YOU ARE THINKING ABOUT WHERE WE ARE IN TERMS OF THE SITUATION IN THE MIDDLE EAST, HOW MUCH THAT IS STILL IMPACTING MARKETS AS WE MAKE OUR WAY THROUGH THE TAIL END OF EARNINGS SEASON? CALLIE: WE ARE GETTING LOTS OF DIFFERENT HEADLINES. EVERY DAY I WAKE UP, THERE IS ANOTHER HEADLINE TO DIGEST IN THE U.S.-IRAN CONFLICT, BUT NOT A LOT OF PROGRESS. BUT WE HAVE BEEN SAYING, CONSIDER THE HEADLINES A DISTRACTION. WE'VE BEEN WATCHING A NUMBER OF SHIPS GOING THROUGH THE STRAIT OF HORMUZ. GASOLINE PRICES. WE HAVE BEEN WATCHING CONTAINER PRICES AS WELL. UNTIL WE SEE SOME IMPROVEMENT THERE, IT IS HARD TO SAY ANY RESOLUTION COULD BE IMPACTFUL FOR THE U.S. ECONOMY COMING OUT OF THE CONFLICT. DAVID: I WONDER HOW YOU NERD INVESTORS HAVE GOTTEN TO THIS ENVIRONMENT, WE SEE THAT MANIFEST IN OIL PRICES. GIVEN HOW LONG THIS CRISIS HAS LASTED, MUCH LONGER THAN THE PRESIDENT SAID, THE FACT THAT WE HAVE AT A NUMBER OF DAYS WHERE THE STORY SEEMS TO VACILLATE, IS THERE A DEAL OR NOT, HOW MUCH ATTENTION IS IT ATTRACTING AT THIS STAGE? CALLIE: CERTAINLY NOT IN MARCH. WE SAW THE INITIAL SHOCK OF THIS CONFLICT, POTENTIALLY HELP THAT IT COULD GET. SINCE THEN, AND YOU SEE THE POUND AND WHEN YOU LOOK AT GEOPOLITICAL POLICY CRISES. SINCE THEN, MARKETS HAVE SHRUGGED IT OFF A LITTLE BIT. THAT DOESN'T MEAN THE ECONOMIC DAMAGE IS DONE. THE LONGER AND LONGER THIS CONFLICT DRAGS ON, THE LESS POLICY SUPPORT WE CAN SEE FROM AROUND THE WORLD, THE LOWER THE SPR GOES, THE LONGER OFF-LINE DRILLERS ARE. WHAT WORRIES ME IS THAT ECONOMIC DAMAGE POSSIBLY SEEPING INTO CONSUMER SPENDING, BUSINESS SPENDING, TOO, BUT OUTSIDE OF AI, CAPEX IS FLAT. IT'S ANOTHER CUT IN THIS ECONOMY THAT HAS BEEN SO RESILIENT BUT HAD SO MANY TIMES RECENTLY. ISABELLE: IF THE ECONOMY IS SO HEALTHY, WHY DOES THE MARKET SEEM SO STUCK? WHAT WILL HELP MARKETS BREAK OUT OF HIS RANGE BOUND TRADING? CALLIE: I WOULDN'T CALL THE ECONOMY HEALTHY. YOU COULD USE A LOT OF WORDS FOR IT. IT IS DEFINITELY STABLE, BUT STABLE IN A FRAGILE SPOT. THE JOB MARKET IS SENDING UNUSUAL SIGNS. THE LABOR MARKET HAS DECLINED FOR FIVE MONTHS, NOT SUBMIT YOU SEE IN A HEALTHY MARKET. ALTHOUGH UNEMPLOYMENT IS LOW. DON'T GET ME STARTED ON PAYROLLS NUMBERS. THOSE ARE INCREDIBLY DIFFICULT TO PULL SIGNAL FROM AT THE MOMENT. WE SEE AN ECONOMY IN STASIS OF SORTS. WHAT WORRIES ME IS WE HAVE POTENTIALLY SEEN THE PEAK IN GROWTH THIS YEAR AFTER THE BOOST WE GOT FROM THE OBBBA EARLIER. THE MARKET SEES THIS COULD BE AS GOOD AS IT GETS AND THEY ARE TRYING TO FIND WHAT THE NEXT BULLISH STORY COULD BE. ISABELLE: I LIKE THAT DISTINCTION, MAYBE NOT HEALTHY BUT STABLE. THE LABOR MARKET IS IN THIS STRANGE LOW HIRING, LOW FIRING ENVIRONMENT. WHAT WILL BREAK FIRST? CALLIE: THE LABOR MARKET IS INCREDIBLY HARD TO FIND SIGNAL FROM. THE TWO ARE LINKED CLOSELY TOGETHER. WHEN AMERICANS MAKE MONEY, THEY SPEND MONEY. MOST AMERICAN PRIMARY INCOME IS THEIR EMPLOYMENT. THERE IS A LOT A BIT OF THE WEALTH EFFECT GOING ON HERE. STOCKS HAVE DONE SO WELL OVER THE PAST FEW YEARS. YOU SEE THAT BREAK BETWEEN LOWER INCOME AND HIGHER INCOME CONSUMERS AND THEIR SPENDING. IT'S HARD TO SAY WHAT WILL BREAK HERE. I WOULD DEFINITELY CONSIDER THE CONSUMER TO BE FRAGILE BUT STABLE. I WOULD SAY THE SAME THING ABOUT THE JOB MARKET. THERE, YOU HAVE TO CONSIDER ALL OF THE UNFORESEEN RISKS COMING THAT COULD RATTLE CONSUMER NERVES, THE STRAW THAT CAN BREAK THE CAMELS BACK. DAVID: YOU THINK OF THE NOTE OF CAUTION FROM KEVIN WARSH, LOOKING AT ONE PIECE OF DATA IN ISOLATION. CURIOUS HOW YOU THINK ABOUT THE JOBS REPORT WE GOT LAST WEEK, WHAT IT TELLS YOU ABOUT THE HEALTH OF THE LABOR MARKET? WE HAVE SEEN A FED SO FOCUSED ON INFLATION, CONTINUES TO BE SO. DID ANYTHING MAKE YOU REEVALUATE THE DEGREE TO WHICH WE ARE FOCUSING ON ONE VERSUS THE OTHER? CALLIE: I HAVE HAD TO REPRIORITIZE WHAT I LOOK AT IN THE JOBS REPORT. LABOR FORCE IS NOT GROWING, YOU WILL NOT SEE THE GROWTH IN PAYROLLS BECAUSE THERE ARE FEWER AVAILABLE WORKERS TO SOAK UP THE REHIRING. I AM LOOKING AT THE UNEMPLOYMENT RATE. THAT DROPPED ABOUT POTENTIALLY BECAUSE OF LOWER PARTICIPATION. IT DOESN'T TELL ME ANYTHING GOOD. IT IS OFF THE BASE IT REACHED IN 2023, SO IT'S CLIMBING. JUST THE LABOR FORCE DECLINING IN GENERAL IS NOT A TERRIBLY GOOD SIGN. IT SHOWS THE BASE UNDERNEATH THE JOB MARKET IS WEAKENING. SMALLER, SOFTER WINDS COULD POTENTIALLY PUSH IT OVER. IN ORDER TO SEE THAT, WE NEED TO SEE LAYOFFS, AND WE ARE NOT SEEING MANY LAYOUTS RIGHT NOW. DAVID: LET ME ASK YOU ABOUT THE UNIQUENESS IN THESE MARKETS AT THE MOMENT, YOU WRITE ABOUT THE IMPORTANCE OF UNDERSTANDING HOW MARKETS WORK. THEY ARE NOT GOOD AT POINTING YOU TO THE STOCK MARKET'S NEXT MOVE. YOUR COUNSEL OR HOW YOU NAVIGATE THE UNIQUENESS OF THE MARKET WE ARE IN RIGHT NOW? CALLIE: THIS IS SOMETHING I WALK THERE WITH CLIENTS ALL THE TIME. A GOOD BASE FOR THE STOCK MARKET IS NOT A GOOD REASON FOR STOCKS TO SHOOT HIGHER ESPECIALLY AFTER THREE STRAIGHT YEARS OF DOUBLE-DIGIT GAINS. THAT IS THE MOMENT WE ARE IN RIGHT NOW. EARNINGS OF COURSE ARE INCREDIBLY IMPRESSIVE AT THE MOMENT, S&P COMPANIES PUTTING UP 20% YEAR-OVER-YEAR GROWTH IN EARNINGS. THAT DOESN'T SEEM LIKE A FRAGILE MOMENT FOR CORPORATE AMERICA. BUT THERE ARE OTHER FRAGILE SPOTS AROUND CORPORATE AMERICA. ULTIMATELY, IF YOU WANT TO SEE A GANGBUSTERS RALLY, AND THIS IS ONE OF THE REASONS WHY WE ARE ALMOST FOUR YEARS INTO THIS BULL MARKET WITH SUCH STRONG GAINS, YOU NEED LOW EXPECTATIONS AND LOW TO MID RESULTS. RIGHT NOW WE HAVE INCREDIBLY HIGH EXPECTATIONS. DAVID: THAT IS CALLIE COX AT RITHOLTZ WEALTH MANAGEMENT. WE WILL SET YOU UP FOR THIS WEEK'S CRUCIAL CPI REPORT. THOMAS HOENIG'S REACTION TO LAST WEEK'S JOBS CUTS. ISABELLE: FROM FED CONCERNS TO FOOD FEARS. CRAIG STEVENSON JOINS US LIVE TO DISCUSS HOW HIS COMPANY IS NAVIGATING CYCLOSPORA CONCERNS. DAVID: AND A SPECIAL CONVERSATION WITH BART SCOTT AS HE IS TEAMING UP WITH THE JETS, BOOSTING THE FOOTBALL FAN EXPERIENCE BEYOND THE STADIUM. ALL OF THAT AND MORE COMING UP. THIS IS "THE CLOSE" FROM BLOOMBERG. ♪ ISABELLE: SHARES OF INTEL TAKING A LEG LOWER IN TODAY'S TRADE AFTER ANNOUNCING A NEW STOCK SALE. THE COMPANY PLANS TO OFFER $15 BILLION WORTH OF NEW STOCK IN A BID TO SECURE ITS PLACE IN THE AI RACE AS THE BUILDUP CONTINUES. JOINING US TO UNPACK THIS AND MORE. HOW DO YOU SEE THIS MOVE? A SIGN OF STRENGTH OR MAY BE RUSHING TO GET THE WINDOW CLOSES? >> FROM A BONDHOLDERS PERSPECTIVE, IT'S A HOME RUN. SENTIMENT IN THIS SPACE HAS TRANSITIONED DAILY FROM PANIC, THERE IS TOO MUCH MONEY BEING SPENT, EVERYONE IS GOING BANKRUPT COMING TO EUPHORIA. YOU HAVE FEAR OF MISSING OUT. TRADES LIKE THIS SUGGEST THAT SPENDING IS GOING HIGHER. WE ALL KNOW THAT. THE QUESTION IS, IS IT FINANCE OF ALL? THIS PROVES THERE ARE SO MANY TRADERS, HYPERSCALERS, SEMICONDUCTORS, THE MONEY IS THERE TO BUILD UP THE SYSTEMS AND FOR SUCCESS PROBABILITY TO BE MUCH HIGHER THAN WHAT I THINK IS EVEN PICKED IN RIGHT NOW. ISABELLE: INTEL SAYS THIS IS AN AI OPPORTUNITY BUT NVIDIA DOMINATES THE MARKET. WHAT IS THEIR PATH TO BE GETTING MARKET SHARE? ROBERT: THE PIE OF TECHNOLOGY REVENUES IS ENORMOUS AND GROWING BIGGER. THERE IS ROOM FOR MANY TO JUMP IN THE POOL AND HAVE FUN. INTEL IS COMING AT IT FROM A DIFFERENT PERSPECTIVE, FROM A CPU PERSPECTIVE. THERE IS HUGE DEMAND FOR PEOPLE -- CPUS. GPUS COST MORE, MUCH HIGHER MARGIN. INTEL IS TAKING A TWO WAY TRAP. THEY BOTH MAKE THEIR OWN CHIPS FOR THEMSELVES, AND THEY ARE TRYING TO BUILD FOUNDRIES TO MAKE TRIPS FOR OTHERS. IF THE TYPE OF DEMAND WE ARE SEEING IN THE SEMI MARKET CONDUCTOR -- SEMICONDUCTOR MARKET CONTINUES, THEIR FACTORIES THAT PEOPLE THOUGHT WOULD BE EMPTY A YEAR OR TWO AGO WILL BE TURNING OUT CHIPS OVER THE NEXT HANDFUL OF YEARS. DAVID: TALK ABOUT THE LEADERSHIP OF ITS NEW CEO, LIP-BU TAN, HOW THIS FITS INTO WHERE THIS COMPANY IS HEADING. THERE WAS SOME CONCERN, WHAT YOU FOCUS ON BOTH OF THOSE THINGS, SHOULD HE FOCUS ON CHIP DESIGN VERSUS MAKING CHIPS? HOW SATISFIED ARE YOU WITH THE STRATEGIC DIRECTION HE HAS LAID OUT? ROBERT: I'M A CREDIT GUY. I'M HAPPY THE BALANCE SHEET HAS STABILIZED, THEY HAVE ACCESS TO TONS OF CAPITAL. THEY HAVE INVESTMENTS FROM NVIDIA, SOFTBANK, THEY SMALL ENTITY KNOWN AS THE U.S. GOVERNMENT OWNS 10%. HE HAS DONE A GREAT JOB OF BUILDING CORE STRATEGIC INVESTORS. ON TOP OF THAT, IF YOU LOOK FROM AN OPERATING STANDPOINT, THEY SAW A LITTLE BIT OF THE FUTURE THAT OTHERS DIDN'T SEE. THAT IS MY DEMAND HAS GONE UP SO QUICKLY THAT THEY CANNOT BUILD THESE FACTORIES FAST ENOUGH. TAKE A LOOK AT THEIR LEVELS OF ACCESS. IF YOU ARE AN EQUITY HOLDER, THE STOCK IS UP 400% OVER THE LAST YEAR. THAT'S PRETTY GOOD. FROM A BONDHOLDERS PERSPECTIVE, NOW THEY HAVE BASICALLY JUST RAISED FINANCING THAT WILL PROBABLY TAKE THEM THROUGH THE NEXT TWO YEARS OF FUNDING NEEDS INCLUDING HAVING TO REFINANCE THEIR OWN DEBT. IF BUSINESS CONTINUES TO IMPROVE, IT'S A HOME RUN AGAIN FOR ABOUT AN EQUITY AND CREDIT , IT'S A WHOLE LINE AGAIN FROM BOTH AN EQUITY AND CREDIT PERSPECTIVE. DAVID: YOU MENTIONED NVIDIA. NVIDIA WORKING WITH SOME WALL STREET COMPANIES FOR A $500 BILLION FINANCING DEAL. IS THERE CONCERN ABOUT CIRCULAR FINANCING? HOW DOES THAT FEEL TO YOU, FROM THE REPORT THIS MORNING? ROBERT: I FEEL PEOPLE SHOULD BE JUMPING FOR JOY THAT THIS AMOUNT OF FINANCING IS AROUND. THERE'S ALL THIS QUESTION AROUND, IF THEY BUILD IT, WILL THEY COME? THE REALITY IS, DEMAND HAS ALREADY COME, AND NOW THEY ARE TRYING TO BUILD IT. SO YOU GET A LOT OF MONEY UP FRONT, COMPANIES DO NOT HAVE ENOUGH FREE CASH FLOW TO FINANCE IT, SO THEY A LOT IN MARKETS. DO YOU SEE THAT FOR ORACLE, INTEL, ALPHABET, OBVIOUSLY SPACEX, WE ARE GOING TO HAVE ANTHROPIC AND OPENAI ISSUE EQUITY. WHAT DOES THIS MEAN GOING FORWARD? I THINK, AGAIN, THE OPPORTUNITIES HERE ARE SO GREAT ACROSS THE BOARD, PEOPLE WANT TO KNOW, LIKE, WHEN I TALK TO TRADERS ON ANY GIVEN DAY, THEY WANT TO KNOW HOW TO MAKE A BASIS POINT IN THE NEXT HOUR. I THINK WHAT WE NEED TO TALK ABOUT IS HOW YOU CAN MAKE 100 BASIS POINTS OVER 10 YEARS. I THINK IT IS A MATTER OF PERSPECTIVE. IF YOU ARE PATIENT, PARTICULARLY FROM A BONDHOLDER'S PERSPECTIVE, THIS IS ALSO UNANSWERABLE. HOW DO YOU PULL ANOTHER $500 BILLION OF CAPITAL, SHOULD MAKE PEOPLE FEEL A LOT MORE COMFORTABLE RATHER THAN CONCERNED. ISABELLE: YOU SOUND VERY BULLISH, ACTUALLY. YOU SAY "WE SHOULD BE JUMPING FOR JOY." BUT WE HAD TORSTEN FLOCK TODAY SAYING THAT THE AI CAPEX BOOM BENEFITS THE BUYER, AND THE RISK IS CONCENTRATION. THE CIRCULAR FINANCING, HOW DO YOU RESPOND TO THAT? ROBERT: YEAH. I SORT OF USED THIS ROBINHOOD TERM BEFORE, STEALING FROM THE RICH TO GIVE TO THE POOR, IN THIS CASE MADE A STEALING FROM THE VERY RICH TO GIVE TO THE VERY WEALTHY. GIFT TO START WITH THE FOUNDATION, THE PHYSICAL INFRASTRUCTURE, AND THE MOST IMPORTANT PART ARE THE CHIPS. VIDEO MAKING ALL THE MONEY RIGHT NOW. ON THE BACK INCOME OF THE HYPERSCALERS WILL BE COLLECTING THE MONEY AFTER ALL THESE SYSTEMS ARE BUILT. THEY TIMESHIFT IN TERMS OF CAPITAL. NVIDIA IS LIKELY TO GENERATE $200 BILLION IN FREE CASH FLOW THIS YEAR, PROBABLY $250 BILLION NEXT YEAR. WHAT WOULD YOU RATHER HAVE THEM DO? DO YOU WANT THEM TO BUY BACK A LOT OF STOCK, AND EVERYONE SAY THIS IS A 2% GROWER? NO. THEY ARE INVESTING IN THEIR ECOSYSTEM, HELPING EVERYBODY ELSE OUT. I DON'T THINK THAT CREATES A DOMINO EFFECT. I THINK THAT CREATES THIS INFLECTION POINT ABOUT ONCE STEPH IS BUILT, THE AMOUNT OF CASH THAT IS HE IS FLOWING THROUGH THE SYSTEM IS GOING TO BE ENORMOUS, AND THEY ARE GOING TO MAKE THEIR MONEY BACK IN SPADES. IT'S NOT JUST NVIDIA. THE MONEY BEING LISTED ARE THE BIGGEST FIRMS THAT ARE OUT THERE. SO I THINK IT IS THE SMART MONEY CHASING AFTER MORE SMART MONEY. DAVID: YOU MENTIONED UNCLE SAM TAKING UP ITS STAKE, SEVERAL MONTHS AGO, SINCE THAT HAPPENED. DID IT MAKE YOU FEEL UNEASY AT THE TIME? HOW HAVE YOU PROCESSED WHAT HAPPENED THERE? ROBERT: NO, GETTING FREE CAPITAL DOES NOT MAKE ME FEEL UNCOMFORTABLE AT ALL. THAT BEING SAID, THIS WAS NOT A DIRECT GOVERNMENT INVESTMENT. THERE HAVE BEEN A PROGRAM WHERE THEY WERE GIVING OUT GRANTS AND LOANS THAT THEY CONVERTED TO EQUITY, SO I THINK THE CONCERN WAS THAT, WELL, IF THE GOVERNMENT IS NOT GOING TO INTERFERE WITH THIS, HOW WILL THEY RUN, YOU KNOW, A STANDALONE PRIVATE/PUBLIC BUSINESS? IN THE REALITY IS, ALL IT DID WAS PROVIDE A BOOST. IT'S A BASICALLY A LOAN THAT NOW THEY DON'T HAVE TO PAY BACK. IT HELPED THEIR BALANCE SHEET OUT. AT SOME POINT, THE GOVERNMENT CAN SELL THEIR STAKE FOR A HUGE PROFIT, SAY WHAT A GREAT JOB THEY DID, SO THE NEXT TIME THEY COME AROUND AND SUPPORT SOMEBODY, PEOPLE WILL SEE IT AS A POSITIVE. WHEN IT FIRST HAPPENED, THERE WAS A LOT OF CONCERN. I'M JUST TELLING YOU THAT THE AMOUNT OF CONCERN THAT EXISTS IS WAY TOO HIGH RELATIVE TO WHAT WE ARE SEEING IN TERMS OF AI MONETIZATION, DEMAND, AND SUPPLY. DAVID: ROBERT, GREAT TO SEE YOU, ROBERT SCHIFFMAN FROM BLOOMBERG INTELLIGENCE TO US ON SET IN NEW YORK. COMING UP, AFTER THE BELL, WE WILL BREAK DOWN WHAT TO EXPECT, TAKE A LARGER LOOK AT THE BASE WHEN WE COME BACK. THIS IS "THE CLOSE" ON BLOOMBERG . DAVID: ALL RIGHT, TIME NOW FOR OUR TOP CALLS, LOOKING AT SOME OF THE BIG MOVERS, AND LET'S START WITH APPLE. JEFFRIES DOWNGRADING THE STOCK TO UNDERPERFORM TO HOLD COME ON CONCERNS OF THE CHALLENGING ROAD MAP TO A HIGHER PRICED IPHONE, FROM CUTTING ITS PRICE TARGET TO $253 TO $285 .56, AFTER SUPPLY CHAIN SUGGESTED AN ALL-BLACK IPHONE HAS BEEN CANCELED DUE TO A LOW YIELD. APPLE DOWN 2%. HEWLETT-PACKARD ENTERPRISE, MORGAN STANLEY FROM OVERWEIGHT TO EQUAL WEIGHT, SAYING THAT THE INCREASED ENTERPRISE SPENDING WILL BOOST THE COMPANY'S BOTTOM LINE. NEARLY 30% HIGHER FROM CURRENT LEVELS, SHARES OF TODAY ALMOST 5%. LAST BUT NOT LEAST IS DICK’S SPORTING GOODS. WELLS FARGO UPGRADING FROM OVERWEIGHT TO EQUAL WEIGHT. THE FIRM RAISING ITS PRICE TARGET TO $240 FROM $220, AS THE FOOTLOCKER INTEGRATION LEADS THE MULTIYEAR MARGIN. THOSE SHARES UP TODAY ABOUT 1.5%. THOSE ARE SOME OF OUR TOP CALLS. HIMS & HERS, THE PROVIDER'S WEIGHT LOSS DRUG BASICALLY FLAT ON THE YEAR AS IT CONTINUES TO SHIFT HIS GLP-1 BUSINESS MODEL TO A MONTHLY PRESCRIPTION STRUCTURE. JOINING US NOW IS OUR SENIOR ANALYST AT NEEDHAM. THE BUSINESS AND THE PLAN GOING FORWARD, THERE'S SOME SPECULATION THAT IT CANNOT PUT ALL ITS EGGS IN ONE BASKET, BUT SO MANY IN THE GLP-1 BASKET. WHAT IS YOUR ASSESSMENT OF HOW IT IS NAVIGATING THAT PROCESS? I DO KNOW YOU'VE RAISED YOUR PRICE TARGET TO $35. >> YES. THANK YOU FOR HAVING ME TODAY. WE ARE VERY POSITIVE ON HIMS & HERS. WE THINK THE GLP-1 AND WEIGHT LOSS CATEGORY IS ONE THAT CONTINUES TO GROW, AND WE THINK IT IS AN IMPORTANT ONE FOR HIMS & HERS, BECAUSE WE THINK WITH SO MUCH FOCUS ON WEIGHT LOFT AND TARGETING -- WEIGHT LOSS AND TARGETING METABOLIC HEALTH, WE THINK IT IS A NICE ENTRY POINT THAT I LOT OF NEW PATIENCE ARE COMING INTO RECEIVE CARE, AND WE THINK OVER TIME, THE WEIGHT LOST CUSTOMER BASE AND SUBSCRIBER BASE AND OPEN UP ADDITIONAL OPPORTUNITIES TO PROVIDE ADDITIONAL CARE TO THESE MEMBERS AND SUBSCRIBERS. DAVID: THIS IS A COMPANY THAT HAVE MISSED ITS REVENUE TARGET FOR A WHILE NOW. I WONDER IF IT IS TURNING A CORNER, OR DO WE SEE THE CORNER AND NEEDS TO TURN? RYAN: YEAH. DEFINITELY AND HAS GONE THROUGH A TRANSITION, BOTH ITS CORE BUSINESS AND WEIGHT LOSS. THE RENEWED PARTNERSHIP WITH NOVO NORDISK THAT WAS ANNOUNCED EARLIER THIS YEAR OF REALLY DID NOT GO LIVE UNTIL THE END OF MARCH, SO AT THE END OF Q1. SO IT REALLY WAS NOT MUCH IN TERMS OF REVENUE FACTORED INTO THE Q1. NUMBERS LAST QUARTER. THAT WILL BE A MUCH GREATER FACTOR HERE GOING FORWARD, AND AS YOU CAN SEE, FROM MAJOR DRUG MAKERS, GLP-1, THEY CONTINUE TO BE VERY STRONG. THE NEXT OF CASH PLAY FOR INJECTABLES AND ORALS ALSO IS VERY STRONG, AND WE THINK THAT WILL HELP OUTPERFORMANCE ON THE PRICING. ISABELLE: YOU ALSO GIVE HINTS AT 100,000 WEIGHT LOSS SUBSCRIBERS IN A MONTH TO HOW MUCH OF THAT GROWTH IS SUSTAINABLE, ONCE THE INITIAL SURGE FADES? RYAN: YEAH. IT'S A GOOD QUESTION. WHEN WE LOOK AT ADOPTION OPPORTUNITIES WITH GLP-1'S EARLY, WE ARE STILL EARLY JUST IN AMERICA. IF YOU THINK ABOUT CLINICAL ELIGIBILITY, 40 PERCENT OF ADULT POPULATIONS WOULD NOT BE ELIGIBLE FOR A GLP-1, YET RIGHT NOW, ONLY ABOUT 10% TO 12% OF AMERICANS ARE ACTIVELY USING A GLP-1 KIT WE THINK THAT CREATES A LONG RUNWAY FOR GROWTH, AND FOR THE CATEGORY AS A WHOLE. SO THERE'S PLENTY OF RUNWAY HERE. AND OBVIOUSLY THERE'S A PIPELINE OF ADDITIONAL GLP'S THAT ARE POTENTIALLY COMING TO MARKET, JUST NEEDING FDA APPROVAL, AS WE LOOK AT THE NEXT COUPLE OF YEARS HERE. ISABELLE: YOU DO SEE GLP-1 AS THE CENTERPIECE OF A BROADER LONGEVITY BUSINESS. HOW IS IT TO COME AS THEY PRICE OUT PRODUCTS AND OTHER AREAS OF CARE? RYAN: YEAH. ABSOLUTELY. LOOK, THE GLP OPPORTUNITY IS HUNDREDS OF BILLIONS OF DOLLARS IN TERMS OF THE OVERALL SIZE OF THE MARKET OPPORTUNITY. WE THINK CASH PLAY WILL CONTINUE TO PLAY A LARGE ROLE THERE. AS YOU THINK ABOUT PEPTIDES, NOW THAT SIX OF THE SEVEN PEPTIDES AT THE RECENT FDA MEETING WERE APPROVED, AS THOSE BECOME LEGALLY AVAILABLE TO SELL, WE THINK THAT OPENS UP A NICE INCREMENTAL OPPORTUNITY, AND, YOU KNOW, WE SIZE THAT IN A RECENT REPORT AT ABOUT $36 BILLION. AND A GOOD PORTION OF THAT, ABOUT $10 BILLION IS COMING OUT OF WHAT WE THINK WILL BE THE GLP-1'S ADJUNCT OPPORTUNITY, THE PEOPLE WHO HAVE GOTTEN COMFORTABLE WITH INJECTABLES HAVE A GREATER FOCUS ON THEIR HEALTH AND WELLNESS AND WILL LOOK AT OTHER SORT OF CATEGORIES, PEPTIDES, POINT-OF-CARE, TO SORT OF AGE HEALTHIER, MOVING FORWARD. ISABELLE: ALL RIGHT, OUR THANKS TO RYAN MACDONALD, SENIOR ANALYST AT NEEDHAM, THANK YOU FOR JOINING US. COMING UP, CRITICAL CPI DATA AFTER UNEXPECTED CUTS AND FRIDAY'S JOBS REPORT. FORMER KANSAS CITY FED PRESIDENT THOMAS HOENIG WILL JOIN US LIVE. THIS IS "THE CLOSE" ON BLOOMBERG . >> JUST ABOUT 3:30 IN NEW YORK. TALKING ABOUT A STORY THAT CAUGHT MY EYE HAVING TO DO WITH SCOTT BESSENT, WHO HAS TALKED ABOUT THE IMPORTANCE OF THE 10 YEAR YIELD. IT IS SOMETHING THAT THE TREASURY SECRETARY HAS DONE, TAKING A MUSCULAR STANCE TO BRING BOND PRICES UNDER CONTROL. I THINK OF THE INTERVENTION IN JAPAN AND HOW HE HAS GOTTEN ON THE BACK OF KEVIN WARSH. ISABELLE: THE QUESTION IS CREDIBILITY. INVENTION CAN BUY TIME -- INTERVENTION CAN BUY TIME. CAN HE STILL KEEP THE YEN FROM WEAKENING? THAT IS SOME WORDPLAY. DAVID: ABOUT HIM AND HAVING A HUGE ROLE IN TERMS OF GLOBAL ECONOMIC POLICY AND THE EFFECT HE HOPES TO HAVE WITH GLOBAL CURRENCIES. AND WHEN WE LOOK AT TREASURIES, AN EFFORT TO BRING THEM BACK IN. THE FRUSTRATING ENDEAVOR. ISABELLE: IT CHANGES THE RULES BECAUSE WASHINGTON IS KIND OF PUTTING A FLOOR WHEN IT COMES TO THE YEN AND MAKING FUTURE INTERVENTIONS NOT UNPRECEDENTED. DAVID: THAT IS SOMETHING WE HAVE HEARD TEASED FROM THE TREASURY SECRETARY. HE HAD AN APPETITE TO DO THIS IN ARGENTINA AND JAPAN. ISABELLE: THAT WAS FOREVER AGO. DAVID: IT FEELS LIKE IT. LET'S DISCUSS WHAT IT MEANS FOR THE KANSAS CITY FED. THE FORMER KANSAS CITY FED PRESIDENT, LET ME GET YOUR PERSPECTIVE. WE HEARD FROM LISA COOK, SHE SEES DISINFLATIONARY FORCES IN PLAY. DO YOU SEE THE AS WELL? DOES THAT SHAPE YOUR UNDERSTANDING OF WHAT THE FED MIGHT DOING WHEN WE LOOK AHEAD TO THE SEPTEMBER MEETING? TOM: I THINK THE FED HAS A WAIT-AND-SEE ATTITUDE. A WEEK BEFORE THAT, LISA GAVE A SPEECH WHERE SHE SAID SHE IS WILLING TO RAISE RATES IF NECESSARY, WHATEVER THAT MEANS. THERE IS UNCERTAINTY AT THE FED AND THEY ARE WAITING FOR MORE DATA. THEY MADE IT CLEAR THEY ARE WAITING FOR MORE DATA. SO THAT WILL BE THE DECIDING FACTOR AS WE GET INTO AUGUST AND SEPTEMBER. DAVID: THEY WILL GET SOME ON WEDNESDAY AND THURSDAY, CPI AND PPI DATA. HOW WILL THAT SHAPE THEIR UNDERSTANDING OF THE MARKET? DID THOSE DATA FROM FRIDAY RESHAPE YOUR UNDERSTANDING OF THE ECONOMY AND YOU PAUSE WHEN YOU LOOK AT THE TWO SIDES OF THE MANDATE? TOM: IT DIDN'T. I KNOW IT WAS BELOW CONSENSUS BUT IT WASN'T MUCH IN MY MIND, DIFFERENT FROM WHAT I EXPECTED. INFLATION, OR JOB GROWTH HAS BEEN A SLOW HIRE AND FIRE FOR SOME TIME. THERE IS NO REASON TO SUSPECT THAT THAT WILL CHANGE. THE PARTICIPATION RATE WENT DOWN WHICH IS PART OF THE BABY BOOM GENERATION LEAVING THE MARKET, THE LABOR MARKET. SO THAT IS FAIRLY EXPECTED IN MY VIEW. THE INFLATION NUMBERS, ENERGY UP AND DOWN, I SUSPECT, I KNOW WHERE CONSENSUS IS. NOT A LOT OF CHANGE AND I WOULD AGREE. THE FED WANTS TO STAY IN A WAIT-AND-SEE. THE CLOSER WE GET TO THE ELECTION THE LESS THEY WANT TO GET INVOLVED IN CHANGING INTEREST RATES. ISABELLE: YOU SAY THAT KEVIN WARSH IS RIGHT ABOUT FORWARD GUIDANCE BUT WHY HAS THE FED BEEN BETTER OFF TELLING MARKETS LESS? TOM: THEY HAVE NO REAL KNOWLEDGE OF THE FUTURE AND THEY SHOULDN'T TRY TO PRETEND THAT THEY DO. GIVING FORWARD GUIDANCE SUGGESTS YOU HAVE SOME INFORMATION NO ONE ELSE HAS AND THEY DON'T HAVE IT. IT IS KIND OF A SUBSIDY TO THE MARKETS. HERE IS WHAT YOU CAN EXPECT. INVEST ACCORDINGLY. I DON'T THINK THAT IS HOW THE MARKETS WORK. I THINK KEVIN WARSH DOESN'T THINK THAT IS HOW THE MARKETS WORK BEST. THEY HAVE TO MAKE DECISIONS BASED ON ECONOMICS. FOR THE FED TO GIVE THEM ASSURANCES IS POOR POLICY. I HAVE ALWAYS THOUGHT THAT. ISABELLE: EVERY PRESIDENT TALKS TO THE FED CHAIR. HOW DO YOU CROSS THE LINE BETWEEN INTERFERING AND OFFERING AN OPINION AND DO YOU INC. THIS FED IS INDEPENDENT FROM THE WHITE HOUSE? TOM: AS I SAID, PRESIDENTS HAVE ALWAYS CALLED THE CHAIRMAN OF THE FED UP, DIRECTLY OR INDIRECTLY THROUGH THE TREASURY SECRETARY. THAT WILL NOT CHANGE. THIS PRESIDENT WILL FOR SURE BE TALKING TO THE CHAIRMAN OF THE IF NOT DAILY, WEEKLY, MAKING HIS WISHES KNOWN. HIS WISHES WILL BE DON'T CHANGE RATES. IF YOU CHANGE THEM, LOWER THEM. WHAT MATTERS IS HOW THE CHAIRMAN TAKES THOSE MESSAGES AND INTERPRETS THOSE AND EXECUTES ON THEM. IT IS IN HIS HANDS AT THAT POINT TO ACT INDEPENDENTLY ARE NOT. I THINK THEY ARE CREDIBILITY DEPENDS ON ACTING INDEPENDENTLY. I HOPE FOR THEIR SAKE THAT THEY DO BASE IT ON GOOD ANALYSIS. RATHER THAN FORWARD GUIDANCE OF THE PRESS CONFERENCE, I WOULD ENCOURAGE THE CHAIRMAN TO EXPLAIN WHY THEY DO WHAT THEY DO, NOT WHAT THE FUTURE HOLDS. HERE IS WHY WE DIDN'T MOVE, HERE IS WHY WE DID, EXPLICITLY EXPLAINED THEMSELVES AND THAT WOULD DO A LOT OF GOOD FOR INDEPENDENCE AND CREDIBILITY. DAVID: YOU PRESIDED OVER AN ECONOMIC SYMPOSIUM IN JACKSON HOLE AND WE HAVE THE FED CHAIR HEADING THERE. HE SAID HE WAS STARING AT A BLANK PAGE DURING THE LAST REST CONFERENCE. DO YOU THINK THAT IS THE RIGHT FORUM FOR KEVIN WARSH TO LAY OUT THE RATIONALE FOR THE MOVES THE FED IS MAKING? MANY THINK THAT WAS MISSING FROM THE REMARKS FROM THE NEW FED CHAIR THUS FAR. TOM: ANY TIME HE CAN EXPLAIN HIMSELF IT IS A GOOD OPPORTUNITY AND HE SHOULD DO SO, IF HE IS INCLINED TO DO SO. IF YOU JUST DOUBLE TALKS AND DOESN'T GIVE REAL INFORMATION, THAN IT IS A WASTE OF A SPEECH. BUT HOPEFULLY HE WILL SAY HERE IS WHY I'M DOING WHAT I'M DOING. I WILL NOT GIVE FORWARD GUIDANCE AND HERE IS WHY. I WILL EXPLAIN THE FOMC MOVES AT THE NEXT PRESS CONFERENCE AND OUR STATEMENT WILL DO AS MUCH. I THINK THAT WOULD BE A GREAT MESSAGE FOR THE MARKETS AND TO THE PUBLIC ITSELF. DAVID: THE PRESIDENT MAKING REMARKS ON CAMERA, NOTHING RELATED TO THE FED IN GENERAL BUT HE SAID OF KEVIN WARSH, I KNOW WHAT I WANT BUT HE HAS TO RUN IT. HE SAID I SPOKE WITH KEVIN WARSH ONCE SINCE HE TOOK OVER AT THE FED. LET ME ASK ABOUT THE ROLE OF BANK PRESIDENTS LIKE THE JOB YOU HAD IN THE PAST, GOVERNORS AS WELL. I QUOTED LISA COOK, A SITTING GOVERNOR. WHAT IS THE ARRANGEMENT, THE WAY KEVIN WARSH IS LOOKING AT THE ROLE OF CHAIR AND HIS RETICENCE TO TALK ABOUT POLICY? SHOULD WE ASSIGN MORE PRIMACY OR IMPORTANCE TO WHAT THESE PRESIDENTS AND GOVERNORS HAVE TO SAY? TOM: I THINK YOU SHOULD GIVE GOOD CREDENCE TO THAT. THEY ARE SPEAKING THEIR MIND. AND I THINK THE FACT THAT THE -- HE IS ELIMINATING FORWARD GUIDANCE MAKES THE MEETINGS MORE VALUABLE, TO GET REAL INTERCHANGE. THE CHAIRMAN IS NOT FRONTRUNNING THE FOMC. THAT IS IMPORTANT. I THINK OVER TIME, IT MEANS BETTER OUTCOMES FOR THE ECONOMY. I THINK FOR WALL STREET IN THE SENSE OF DOING ITS JOB, IT WOULD DO A BETTER JOB AS WELL. DAVID: THOMAS IS FORMER PRESIDENT OF THE KANSAS CITY FED , NOW WITH GEORGE MASON UNIVERSITY. YOU CAN CATCH MORE CONVERSATIONS LIKE THIS BY TUNING INTO BLOOMBERG THIS WEEKEND SATURDAYS AND SUNDAYS AT 7 A.M. EASTERN ON BLOOMBERG RADIO AND TELEVISION. IS THE GAMESTOP BID FOR EBAY ON ICE? THE POTENTIAL DEVELOPMENTS IN THE STOCK OF THE HOUR. THIS IS THE CLOSE ON BLOOMBERG. ISABELLE: OUR STOCK OF THE HOUR, GAMESTOP'S CEO CONSIDERS WITHDRAWING THE BID FOR EBAY. THE CEO WAS WEIGHING A PROPOSED PARTNERSHIP BETWEEN THE COMPANIES THAT WOULD ENABLE EBAY TO LEVERAGE GAMESTOP BRICK-AND-MORTAR LOCATIONS ACROSS THE COUNTRY. JOINING US IS SPENCER. THANKS FOR JOINING US. IS THE CEO BUYING EBAY FOR THE RETAIL PLATFORM OR DATA, PAYMENTS TECHNOLOGY? >> HE IS NOT BUYING EBAY ANYMORE, RIGHT? THIS CAME OUT OF NOWHERE IN MAY. WITH THE $56 BILLION BID FOR GAME STOCKS -- GAMESTOP TO BUY EBAY. NO ONE OTHER THAN RYAN COHEN KNEW WHERE THE MONEY WAS COMING FROM SO IT IS HARD TO INTERPRET THIS AS MORE THAN A WHITE FLAG OF SURRENDER FROM GAMESTOP, THAT THEY CAN'T EXECUTE THE DEAL. THE MARKET NEVER REALLY EXPECTED IT TO BE CLOSED, SO NOW HE IS COMING BACK WITH A PLAN B OF SOME SORT OF PARTNERSHIP OR SYNERGIES BETWEEN GAMESTOP AND EBAY. HE IS SAYING WE CAN HAVE SOME POTENTIALLY UPSIDE IF WE COMBINE GAMESTOP STORES, WHICH THEY CLOSED A LOT OF THEM BUT THEY HAVE A SIGNIFICANT STORE FOOTPRINT, ALONG WITH EBAY'S COLLECTIBLES BUSINESS. WE MIGHT BE ABLE TO DRUM UP MORE BUSINESS COLLECTIVELY. DAVID: -- DAVID: I REMEMBER A SERIES OF WINE DOING INTERVIEWS THAT RYAN COHEN GAVE TO THIS NETWORK AND OTHERS TALKING ABOUT HIS PLANS GOING FORWARD. IS IT CLEAR HIS PLANS FOR THIS COMPANY GOING FORWARD? SPENCER: I'M NOT SURE BECAUSE THIS IS AN ABRUPT CHANGE. IF WE GO WAY BACK HE WANTED TO COMBINE THE COMPANIES. HE WANTED TO BE CEO. HE WANTED TO CUT EBAY'S MARKETING SPEND. HE HAD BEEN CRITICAL OF THE WAY IT HAD BEEN MANAGED. HE WANTED TO MAKE IT A LEANER AND MEANER ENTITY. TRYING TO GET MORE BUSINESS IN COLLECTIBLES. HE WAS THE ONLY ONE TO SEE THAT VISION. THE MARKET KIND OF DUMPED ON IT RIGHT OUT OF THE GATE. NO ONE EXPECTED IT TO HAPPEN BECAUSE HE DIDN'T HAVE THE MONEY. NOW HE IS PROPOSING AN ALTERNATIVE PARTNERSHIP WHERE THEY WORK OUT SOME ARRANGEMENT AND EVEN THAT IS NOT TERRIBLY NEW. A DECADE AGO EBAY DID SOMETHING SIMILAR WITH FEDEX WHERE THEY WERE TRYING TO USE FEDEX STORES AT A PLACE WHERE PEOPLE COCO COME YOU COULD CLEAN OUT YOUR CLOSET SAYING I WILL NEVER USE THESE GOLF CLUBS SO LET ME TAKE THEM TO FEDEX AND SEE IF I CAN SELL THEM ON EBAY. AND EBAY AND FEDEX WOULD SOMEHOW SPLIT UP THE MONEY. BUT IT NEVER WENT ANYWHERE. A LOT OF THESE PHYSICAL STORE COMBINED WITH DIGITAL BUSINESS CONCEPTS HAVE NOT REALLY GONE ANYWHERE. AMAZON HAS TRIED IT A BUNCH OF TIMES AND HAS NOTHING BUT STUMBLES TO SHOW FOR IT. I DON'T KNOW WHERE THIS GOES FROM HERE. DAVID: SPENCER, GREAT TO TALK WITH YOU AND WE COUNT ON YOU TO GET US AN UPDATE. SPENCER JOINING US FROM SEATTLE. A LOT OF UNANSWERED QUESTIONS. A RADICAL REVERSAL WAVING A WHITE FLIGHT BUT A LOT WE DON'T KNOW. ISABELLE: AT THE BEGINNING NO ONE KNEW WHAT IT WAS GOING TO BE AND IT IS STILL CONFUSING. THE VISION IS HARD TO SEE BUT WE ARE NOT WRITING:. -- BUT WE ARE NOT RYAN COHEN. DAVID: WE WILL GET JULIE BEALS PERSPECTIVE ON THE MARKET. A SLEEPY MONDAY I SHOULD SAY, A MONDAY. THIS IS "THE CLOSE" ON BLOOMBERG. DAVID: ABOUT 10 MINUTES AWAY FROM THE CLOSING BELL. LET'S TAKE A LOOK AT SOME MOVERS AS WE APPROACH THE CLOSING BELL STARTING WITH THE S&P 500 DOWN ABOUT .1 PERCENT. A LOT OF WAVERING IN THE STOCK MARKET OVER THE LAST HOUR. NOT A LOT OF MOVEMENT. BRENT CRUDE, THE STORY STILL HAS TO DO WHAT IT -- ABOUT WHAT IS HAPPENING OR NOT HAPPENING IN THE MIDDLE EAST AND THE PRESIDENT MAKING PROMISES ABOUT A DEAL TO REOPEN THE STRAIT OF HORMUZ. IRAN TALKING TO OMAN ABOUT THAT. OIL IS RISING ON THE HEELS OF THAT. DOLLAR-YEN, THE YEN CONTINUES TO WEAKEN AGAINST THE DOLLAR. WE SAW THE INTERVENTION BY THE U.S. AND JAPAN A FEW DAYS BACK. LOOKING AT INTEL, INTEL SAYING IT WANTS TO OFFER $15 BILLION IN SHARES GOING FORWARD FEELING GOOD ABOUT ITSELF IN THE DIRECTION OF THE COMPANY AND IT WANTED TO PUT THAT MONEY TOWARDS FURTHER CAPITAL INVESTMENT AND NOT JUST CHIP DEVELOPMENT. ISABELLE: A LOT OF THINGS GOING AROUND IN THIS AI WORLD AND IT IS INTERESTING TO SEE HOW LONG INVESTORS WILL BE WAITING OR HOW PATIENT THEY WILL BE UNTIL THEY GOT THE RETURN ON INVESTMENT. DAVID: MORE MARKET ANALYSIS WITH THE PORTFOLIO MANAGER FROM KAYNE ANDERSON JOINING US NOW FROM LOS ANGELES. GREAT TO HAVE YOU WITH US. LET ME START BROAD AS I TALK ABOUT THE SLEEPINESS OF THE MARKET. HOW MUCH ARE THEY GEOPOLITICS THAT I REFERENCED IN THE LAST FEW MINUTES, HOW ARE THEY AT PLAY? HOW ARE YOU STAYING FOCUSED ON THE EARNINGS SEASON? JULIE: FOR US, EARNINGS WILL ALWAYS BE THE PRIMARY PLACE WE PAY ATTENTION TO ESPECIALLY WHEN YOU'RE TALKING ABOUT SMALL-CAP WHICH IS SO IDIOSYNCRATIC AND IS DRIVING RETURNS. I DO THINK THE GEOPOLITICAL OVERLAY IS IMPORTANT TO THE EXTENT THAT YOU HAVE A FED STARTING TO LOSE ITS PATIENTS IN TERMS OF HOW LONG THEY ARE WILLING TO LET ONE TIME DRIVERS OF HIGHER PRICES CONTINUE TO LADDER ONTO EACH OTHER. AT SOME POINT YOU HAVE TO SAY, GOSH, WE NEED MORE PRICE STABILITY. IT IS DAMAGING THE CONSUMERS ABILITY TO PAY FOR THINGS. I THINK THAT IS THE OVERLAY I'M PAYING MOST ATTENTION TO BECAUSE OTHERWISE YOU ARE PAID TO IGNORE THE HEADLINES AND FOCUS ON EARNINGS. DAVID: SADLY, WE ARE NOT PAID TO IGNORE THE HEADLINES WHICH IS UNFORTUNATE. WE MADE IT THROUGH THE HYPERSCALERS, THE MAGNIFICENT 7 AND THERE WAS SO MUCH INK SPILLED ABOUT WHETHER THAT IS STILL A GOOD WAY TO CATEGORIZE THESE COMPANIES. IT LOOKS LIKE SOME ARE DOING BETTER THAN OTHERS WHEN IT COMES TO CAPEX. WHAT DID YOU TAKE AWAY FROM THOSE EARNINGS LOOKING AT BIG TECH AND WHAT DOES IT TELL YOU DIRECTIONALLY ABOUT THE AI RENAISSANCE? JULIE: I THINK WHAT IS IMPORTANT TO KEEP IN MIND IS WHEN YOU LOOK AT THE MAGNIFICENT 7, THE MAJOR DRIVERS OF THE CAPEX SPEND, WE TALK ABOUT THEM AS IF THEY ARE A MONOLITH BUT THEY ARE QUITE DIFFERENT. THE WAY THEY ARE THE MOST DIFFERENT IS IN THE LEVEL OF COMPETITION THEY HAVE EXPERIENCED AS THEY HAVE GROWN AND RISEN TO POWER. FACEBOOK HAS BEEN RELATIVELY UNIMPEDED IN ITS DOMINANCE AND SO HAS GOOGLE. AMAZON HAS BEEN IN A KNIFE FIGHT SINCE DAY ONE SO THEY ARE COMFORTABLE IN MARKETS WHERE THEY ARE AGGRESSIVELY PURSUING DIGITAL EXPANSION AND PUTTING A LOT OF ANALOG BARRIERS TO ENHANCE THEIR COMPETITIVE POSITION. THAT IS NOT AT ALL THE CASE IF YOU THINK ABOUT A MICROSOFT OR A META. AND THAT PLAYS OUT OVER THE LONGER TERM AND TERM -- IN TERMS OF THEIR ABILITY TO ALLOW TO ENHANCE THEIR POSITION. ISABELLE: WHAT IS THE TOWEL THAT SEPARATES THEM -- WHAT IS THE TELL THAT SEPARATES THEM? JULIE: WHAT IS CRITICAL IS UNDERSTANDING WHERE YOU ARE IN TERMS OF THE WORKFLOWS. MOST CUSTOMERS ARE LOOKING FOR SOLUTIONS WHERE IT IS ALREADY IN THE WORKFLOW. AND HE KIND OF GENERATIVE AI SOLUTION IS EMBEDDED IN THE WAY THEY KNOW HOW TO DO THINGS BECAUSE YOU ARE LEVERAGING THE DOMAIN EXPERTISE, THE MUSCLE MEMORY OF YOUR EMPLOYMENT GROUP ALLOWING THEM TO ENHANCE THEIR PRODUCTIVITY. NOT NECESSARILY LIFTING AND SHIFTING THE WAY THEY DO THINGS. I THINK THAT IS TOUGHER WHEN YOU ARE MORE OF A POINT SOLUTION SITTING ON TOP AND OPTIMIZING. THAT IS THE PLACE WHERE A LOT OF COMPANIES ARE LOOKING AT THEIR BILLS AND SING, MAYBE THIS IS A SOLUTION WE CAN BUILD INTERNALLY OR IF NOT WE CAN PUT MORE PRICE PRESSURE ON THOSE BIDDERS. ISABELLE: YOU SAID THE ECONOMY IS GREAT FOR A FEW, FINE FOR MANY AND BRUTAL FOR SOUND. WHO IS GETTING SQUEEZED THE HARD AND DOES AI MAKE IT WORSE? JULIE: THE LOW INCOME CONSUMER, WE KNOW AND HAVE TALKED ABOUT IT A LOT IN TERMS OF THE K-SHAPED ECONOMY. THE PLACE YOU HAVE TO THINK ABOUT IS -- TECHNOLOGY AS A SPACE HAS BEEN DEFLATIONARY FOR DECADES. IT HAS NOT FELT DEFLATIONARY BECAUSE THE PRICE OF AN IPHONE HAS GONE UP CONSISTENTLY AND WILL GO UP MORE THIS YEAR BUT IT HAS BEEN DEFLATIONARY BECAUSE OF FUNCTIONALITY HAS IMPROVED EACH YEAR SO DRAMATICALLY. AND NOW INFLATION IS MORE NEGATIVELY IMPACTED BY TECHNOLOGY BECAUSE ALL OF THE INVESTMENT IN AI IS CREATING A LOT OF SCARCITY. TECHNOLOGY IS NO LONGER THE GOOD GOT IT USED TO BE. THAT NEGATIVELY IMPACTS OUR LOW INCOME CONSUMER THE MOST BECAUSE SO MUCH OF WHAT THEY SPEND ON IS NONDISCRETIONARY AND THE MOST SENSITIVE TO PRICES, FOOD AND GAS PRICES. DAVID: WE HAD TOM HONIG ON JUST A MOMENT AGO AND HE SAID HE HOPES KEVIN WARSH TELLS US ABOUT HIS DAY IN AND DAY OUT AND YOU SAID YOU APPLAUD CHAIR KEVIN WARSH'S HANDS OFF APPROACH. IS THERE A CONSENSUS AMONG INVESTORS? BUT THEY ARE HUNGRY FOR MORE INFORMATION ABOUT THE FED. YOU ARE NOT FRETTING OVER THAT. JULIE: I THINK WE HAVE THE INFORMATION AS INVESTORS TO MAKE GOOD DECISIONS ABOUT WHERE THE POTENTIAL POLICY WILL BE GOING. WE SHOULD BE ABLE TO DIGEST THE MACRO INFORMATION SAME AS THE FED. THE HANDHOLDING WE HAVE I THINK IT CREATES ITS OWN DISTORTIONS AND PROBLEMS BECAUSE YOU HAVE A LARGE SUB -- SUBSEGMENT OF THE MARKET HOPING FOR WEAK JOB MARKET IS BECAUSE INTEREST RATES, LOW. WHAT IS CENTRAL TO THAT IS THE IDEA THAT THE LOW INTEREST RATES WE HAD OUR NORMAL AND SHOULD BE EXPECTED AND SHOULD BE SOMETHING WE ARE MARCHING TOWARDS BUT IT DOESN'T REFLECT THE REALITY THAT THERE IS TIME VALUE IN MONEY. THAT IS A THING THAT EXISTS. REMOVING SOME OF THAT GUIDANCE AND FORCING INVESTORS TO FIGURE IT OUT ON THEIR OWN IS A LITTLE LIKE PARENTING WITH BETTER BOUNDARIES AND ASKING YOUR KIDS TO BE A LITTLE MORE RESILIENT AND THINK FOR THEMSELVES. I THINK IT IS A POSITIVE DEVELOPMENT. DAVID: THE PORTFOLIO MANAGER AT KANE REZNICK. THIS IS SUCH A CENTRAL TENSION TO WHERE WE ARE RIGHT NOW. I THINK KEVIN WARSH WOULD LIKE MARKETS TO TAKE SOME PREMISES AND THAT IS WHAT FOLKS SHOULD BE FOCUSED ON. ISABELLE: I LOVE THE PARENTING ANALOGY. THAT IS THE DISCUSSION BETWEEN ME AND MY FRIENDS. I'M NOT A PARENT BUT I STAY I WILL BE A HELICOPTER TYPE OF PARENT. WHAT KIND OF PARENT ARE YOU, DAVID? DAVID: A PARTIAL TIGER. WE ARE MOVING CLOSE TO THE CLOSING BELL FULL MARKET COVERAGE HUMMING RIGHT HERE ON BLOOMBERG AS WE ARE SECONDS WAY FROM THE CLOSING BELL ON WALL STREET. ♪ >> THE CLOSING BELL, BLOOMBERG'S COMPREHENSIVE CROSS-PLATFORM COVERAGE OF THE U.S. MARKET CLOSE STARTS RIGHT NOW. >> DAVID: TWO MINUTES AWAY FROM THE END OF THE TRADING DAY. WE ARE JOINED BY TIM STENOVEC. AND NORAH MULINDA. WE HAVE BEEN TALKING ABOUT THIS OVER THE LAST HOUR, SOME SLEEPINESS TO THE EQUITIES MARKET. SOME MOVEMENT IN THE OIL MARKET AS WE WAIT FOR AN ANNOUNCEMENT ON WHAT IS HAPPENING OR NOT HAPPENING IN THE MIDDLE EAST. >> TRADERS HAVE BEEN WATCHING THIS SINCE FEBRUARY. WE ARE NOT GETTING A SIGNAL ALTHOUGH THE PRESIDENT SAID THE STRAIT OF HORMUZ IS 100% OPEN AND CONTROLLED BY THE UNITED STATES. I THINK THE OIL MARKETS AFFECT CHECKING THAT FOR US. BRENT UP TO $87 PER BARREL. WTI FUTURES $82 PER BARREL. IF THAT WERE THE CASE I WOULD SEE THAT REFLECTED IN OIL. NORAH: WE WERE TALKING ABOUT THE IMPACT THAT THE PUMP, WHEN YOU THINK ABOUT CONSUMERS AND THE ENVIRONMENT WE ARE EXPERIENCING, WE ARE STILL SEEING A SOLID JOB MARKET BUT STILL SEEING CONSUMERS GRAPPLING WITH SPENDING. 100% TENDS TO BE SOME OF THE GAS THEY ARE EXPERIENCING WHEN THEY SWIPE THEIR CARD AT THE GAS PUMP. ISABELLE: AMIDST ALL OF THIS UNCERTAINTY, A LOT OF INVESTORS ARE LEVERAGING CAPITAL WHEN IT COMES TO RISKY ASSETS. THERE IS BILLIONS AND BILLIONS OF DOLLARS. THERE IS SIGNS THAT THE POPULARITY IS WANING. DAVID: YOU CAN HEAR THE BELLS RINGING IN THE BACKGROUND. NASDAQ DOWN 86 POINTS, 0.3% DOWN. S&P 500, WITH THE SLEEPINESS, A LACK OF MOMENTUM IN THESE MARKETS FUN THIS SUMMER MONDAY. TURNING TO THE DOWN, DOWN 0.1%, CLOSING AT 53,975. TIM: SUMMER MONDAY IS THE BEST WAY TO DESCRIBE THIS. FEEL SLEEPY IN TERMS OF THE EQUITY TRADE. WEDNESDAY AND THURSDAY WE WILL SEE MOMENTUM WITH CPI AND B.I.. STOCKS MOVED HIGHER. ISABELLE: IT IS ALSO GLOOMY. IT HASN'T BEEN SUMMER, IT IS ALWAYS DREARY. BUT YOU LOOK AT THE MAP, IT IS A SPLIT BETWEEN GREEN AND RED. THE BIGGEST LOSER IS TECH, DOWN BY 0.4%. FINANCIALS ALSO IN THE RED. CONSUMER STAPLES AND ENERGY, HIGHER. MATERIALS COMMUNICATIONS SERVICES AND HEALTH CARE SOLIDLY IN THE GREEN. DAVID: LET'S GET TO SOME OF THE STOCKS THAT WERE IN THE GREEN. SHARES OF SPACEX, I WANT TO DRAW YOUR ATTENTION NOT TO THE 4.2% INCREASE IN THE SHARE PRICE BUT TO THE ACTUAL SHARE PRICE. $138.74. THAT MEANS IT IS TRADING ABOVE THE IPO PRICE OF $135. IT DID GET UP TO $139 EARLIER IN THE SESSION BUT IT HAS BEEN TRADING BELOW THE IPO PRICE SINCE CLOSING BELOW THAT LEVEL JULY 16. THE 23% GAIN OVER THE LAST TWO SESSIONS BEFORE TODAY HAVE HELPED THE COMPANY TRADE ABOVE THE IPO PRICE. WE SAW LAST WEEK, MORE THAN 900 MILLION SHARES RELEASED FOR TRADING, THE FIRST IN A SERIES OF LOCKUPS AS THEY EXPIRED. SHARES OF SPACEX ABOVE THE IPO PRICE, CLOSING AT $139 A SHARE. MNA NEWS IN THE EB INDUSTRY -- TV INDUSTRY, WE LEARNED BOEING WILL SELL SEVERAL UNITS TARCHER INCLUDING WHISK, SKY GRID, AND OTHERS, SPECIALIZING IN FLYING TAXIS AND DRONES. BOEING WILL TAKE A CLOSE TO 20% STAKE IN ARCHER AND ENTER INTO AN AGREEMENT TO RETAIN ACCESS TO THE AUTONOMOUS FLIGHT TECHNOLOGY. I HAVEN'T SEEN ANY OF THESE FLYING THROUGH THE SKIES BRINGING US THIS WAY AND THAT. DAVID: WE LIVE CLOSE BY SO NOT OVER MY HOUSE. TIM: I'M STILL TAKING THE BIKE AND THE SUBWAY TO WORK. BUT MAYBE THAT WILL CHANGE. THE HEIR TO THE SEA. LOOKING AT MARINE MAX, SHARES SURGING 46%, THE MOST GOING BACK TO 2008. IT WILL BE ACQUIRED BY SAFE HARBOR MARINAS, A BLACKSTONE INFRASTRUCTURE PORTFOLIO COMPANY, $53 PER SHARE REPRESENTS AN ENTERPRISE VALUE OF $1.5 BILLION. THE DEAL WAS APPROVED BY THE MARINE MAX BOARD. THE SHARE PRICE REPRESENTS AND 96% PREMIUM TO THE CLOSING PRICE GOING BACK TO EARLIER THIS YEAR AND THE TRANSACTIONS. BY THE END OF 2026 PENDING REGULATORY APPROVAL AND SHAREHOLDER APPROVAL, BECAUSE IT IS BEING BOUGHT BY BLACKSTONE IT WILL BE DELISTED AND BECOME PRIVATELY HELD. RE/MAX SHARES UP 46%. -- MARINE MAX SHARES UP 46%. NORAH: SHARES OF APPLE ENDING THE DAY LOWER BY 1.6% AFTER JEFFRIES CUT THE STOCK TO UNDERPERFORM. THIS IS A STOCK THAT WAS TRADING ABOVE DIVIDEND BUT ANOTHER SIGN WALL STREET IS GETTING MORE CAUTIOUS ON APPLE. THE QUESTION JEFFRIES IS POSING IS THE FACT AS TO WHETHER CONSUMERS WILL BE ABLE TO AFFORD THE PRICES OF IPHONES. I THOUGHT IPHONES WERE ALREADY EXPENSIVE, A LITTLE TOO EXPENSIVE, BUT JEFFRIES ISN'T CONVINCED THAT APPLE WILL BE ABLE TO CONVINCE CUSTOMERS TO PAY EVEN MORE FOR CELL PHONES. YOU ARE SEEING SHARES TO THE DOWNSIDE FROM THEIR. WE HAD OVER TO TRADE DESK, SHARES OF THAT COMPANY DOWN 3%. THE COMPANY GOT A WAVE OF DOWNGRADES ON WALL STREET COMING FROM HSBC, DAVIDSON, BNP PARIBAS, COMING AFTER ITS RESULTS. WE DON'T TRADE DESK ISSUED A WEEK FORECAST SO YOU ARE SEEING ANALYSTS RESPONDING. THIS IS STOCK THAT HAS HAD A TOUGH YEAR. SHARES OF TRADE DESK DOWN 65% SO FAR. LOOKING AT INTEL, SHARES DOWN ABOUT 4% OF THE CLOSING BELL. IF IT IS LOWER, IT LOOKS LIKE IT IS LOOKING TO RAISE $15 BILLION IN NEWS -- NEW STOCK. IAN KING SAID THIS IS A BIG DEAL AND POTENTIALLY ITS FIRST PUBLIC SHARE SALE SINCE 1971. THE MOVE COMES AS THE COMPANY LOOKS TO CAPITALIZE ON RENEWED INTEREST TIED TO THE DATACENTER BOOM. THIS IS SOMETHING WE HEARD FROM MANY COMPANIES, SO INTEL IS NOT ALONE BUT IT HAD A WINDFALL THAT HASN'T TAKEN OFF LIKE ITS COMPETITORS NVIDIA AND AMD. DAVID: SOMETHING I WANT TO MENTION AS WE GET MORE DETAILS ON THE NVIDIA DEAL FLOATED IN THE FINANCIAL TIMES THIS MORNING, $500 BILLION INVOLVING NVIDIA, IT WILL BE SIX PARTNERS ON WALL STREET WORKING WITH NVIDIA ON THE ARRANGEMENT. APOLLO, BLACKROCK, BLACK FIELD, GOLDMAN SACHS, KKR, PART AND PARCEL WITH WHAT YOU WERE TALKING ABOUT. THE INTEREST IN CAPEX WHEN IT COMES TO CHIPMAKING, CERTAINLY THE STORY OF INTEL. GETTING EARNINGS ON THIS AFTERNOON. HIM CENTERS HEALTH, WHICH -- SEEING THIRD QUARTER REVENUE THAT IS LOWER THAN ESTIMATED, $900 MILLION WAS THE ESTIMATED. THIS IS A STORY OF A COMPANY THAT IS TRYING TO FIND ITS FOOTING. SO MUCH IS PEGGED ON GLP-1'S. TIM: DO THEY DO A DEAL WITH A COMPANY THAT MAKES THESE? DO THEY NO LONGER COMPOUND FEES DUE TO CHALLENGES FROM A REGULATORY PERSPECTIVE? THE COFOUNDER AND CEO OF THE COMPANY SAID THEY HAVE NEVER BEEN IN A BETTER POSITION TO MOVE FASTER AND GROW FURTHER THAN TODAY. HE SAID IN A STATEMENT, AS WE REBUILD, THE CONSUMER HEALTH EXPERIENCE WITH THE DOCTOR LEAD CLINICAL AI ENGINE, THE DEPTH AND BREADTH OF OUR RELATIONSHIP WITH CUSTOMERS WORLDWIDE HAS NEVER BEEN GRADED. SHARES OF HIMS & HERS HEALTH UP 3.4% AFTER HOURS. NORAH: THE BAR WAS HIGH HEADED INTO THIS REPORT. FOLKS ON WALL STREET THOUGHT ABOUT THE FACT THAT WE WOULD SEE THE COMPANY LOSING MONEY AS THEY SHIFT TOWARDS LOWER MARGIN BRANDED GLP-1'S. WE ARE SEEING REVENUE TOPPING ESTIMATES, SO YOU ARE SEEING THAT PLAY OUT AFTER HOURS. DAVID: LOOKING AT ROCKET LAB, THIS IS A SPACEX RIVAL, ROCKET LAB SEEING THIRD QUARTER REVENUE OF $230 MILLION, THE ESTIMATE WAS $237 MILLION. THIS IS THE STORY OF COMPETITION WITH SPACEX AND TRYING TO EXPAND INTO SIMILAR SPACES. THEY ACQUIRED A COMMUNICATION COMPANY EARLIER THIS YEAR. THE STOCK HAS BEEN TRADING HIGH RECENTLY. TIM: TO GO OVER THE NUMBERS AFTER HOURS, DOWN ABOUT PERCENT, THE COMPANY SEES ADJUSTED GROSS MARGIN 35-37%, SECOND QUARTER REVENUE COMING IN AT ABOUT ESTIMATES, 230 $4.1 MILLION. A SMALLER COMPETITOR TO SPACEX BUT ONE OF THOSE THAT INTERESTINGLY, YOU SEE INCREASINGLY TALK ABOUT AS WHAT SPACEX CAN DO. THE COMPANY SEES THIRD QUARTER REVENUE COMING IN UNDERESTIMATES. DAVID: THAT IS ALL THE TIME WE HAVE FOR TODAY. ARE YOU BACK TOMORROW? DAVID: I'M ON A DIFFERENT SHIFT TOMORROW. I'M PLAYING THE WHOLE BROADCAST DAY. . I WILL BE HERE TOMORROW MORNING. TIM: I THINK ISABEL IS WITH ME FOR CRYPTO. ISABELLE: THAT IS TRUE. DAVID: MAYBE THIS IS A SURPRISE. ISABELLE: JUST AN FYI. TIM: I WILL PUT AN APPOINTMENT ON YOUR CALENDAR. ISABELLE: I WILL ACCEPT. TIM: GREAT TO SEE BOTH OF YOU. THAT WILL DO IT FOR CROSS PARTNER -- CROSS-PLATFORM COVERAGE. WE WILL BE BACK TOMORROW. DAVID: COMING UP, A DEEPER DIVE INTO THE SPACE RACE. OUT OF ROCKET LAB, AND AST SPACEMOBILE REPORTING AS WELL. THAT IS COMING UP ON THE CLOSE ON BLOOMBERG. ISABELLE: WELCOME BACK TO THE CLOSE. DAVID: LET'S TAKE A LOOK AT WHERE MARKET STANDS, STARTING WITH THE S&P 500 DOWN SLIGHTLY, THE NASDAQ DOWN 30% CLOSING AT 92.621. ISIS RISING AS WE WAIT FOR A RESOLUTION, SOME SORT OF ANNOUNCEMENT ON THE WHITE HOUSE ON A DEAL NOT BROKERED WITH THE PARTICIPATION OF THE WHITE HOUSE BROKERED BY IRAN AND OMAN. PRICES HIGHER OF -- AS THE RESULT OF ONE NOT BEING ANNOUNCED. DOLLAR-YEN DAYS AFTER U.S. INTERVENTION, WE SAW ABOUT HALF THE GAINS ERASED OVER THIS DAY, A CURRENCY THAT IS SUFFERING COMPARED TO ITS PEERS IN THE G10. ISABELLE: A SLEEPY MORNING. A SLUGGISH MORNING, SLUGGISH EVERYTHING BUT LET'S TAKE A LOOK AT THE BIGGEST MOVERS. NVIDIA CLOSING THE DAY LOWER BY NEARLY 3% AS THE CHIPMAKER ANNOUNCES A PARTNERSHIP WITH SIX FIRMS TO MOBILIZE OVER $500 BILLION FOR THEIR AI INFRASTRUCTURE BAILOUT. INTEL ALSO LOWER BY MORE THAN 4%. SO FAR IT IS RED ON THE SCREEN AND SHARES ARE DIPPING WITH THE FIRM SET TO OFFER $15 BILLION IN NEW STOCK IN WHAT WOULD BE THE FIRST PUBLIC SHARE SALE SINCE 1971. THE LAST LOSER, TRADE DESK DOWN 3% ON THE BACK OF WEAK EARNINGS, MULTIPLE FIRMS DOWNGRADING THE COMPANY AROUND 13 HAVE DOWNGRADED STOCK FROM HSBC, GUGGENHEIM, TRUEST, ETC. SO THAT HAS TO BE PAINFUL. DAVID: A BIG WEEK FOR SPACE. ROCKET LAB, VIRGIN GALACTIC STILL ON THE DOCKET. LET'S BRING IN AN ETF FOUNDER. LET'S PROCESS THESE NUMBERS AS THEY CROSS THE TERMINAL. LET ME STOP -- START WITH YOUR TAKEAWAY. REVENUES 250-265, THE ESTIMATE WAS 237. YOUR REACTION? >> THANKS FOR HAVING US. I'M REVIEWING THESE NUMBERS IN REAL TIME. I THINK REVENUES LOOK FINE. THEY ARE IN LINE WITH WHAT WE EXPECTED. WE WILL HAVE TO DIG INTO AND LISTEN ON THE CALL, WITH GROSS MARGINS. THE STORY IS NEUTRON. IT IS NEUTRON ON TRACK? IT IS UNCLEAR SO LET'S SEE WHAT THE CALL BRINGS. DAVID: SEE WHAT WE HEAR FROM THE CEO. HOW SHOULD WE LOOK AT THESE RESULTS IN COMBINATION WITH WHAT WE SAW WITH SPACEX? SPACEX GOING PUBLIC. HOW MUCH IS A COLORED BY WHAT SPACEX HAS DONE IN RECENT WEEKS? MICHAEL: I THINK SPACEX TOOK THE WHOLE SECTOR UP AHEAD OF THE IPO AND THERE WAS A SORT OF RELEASE AFTER IT HAPPENED. THERE ARE TWO -- THEY ARE TWO SEPARATE ANIMALS. SPACEX IS AN AI COMPANY AT THIS POINT AND THE REUSABLE LAUNCH IS WHAT ENABLES THAT. I THINK ROCKET LABS IS SORT OF THREE PHASES -- SORRY, THREE INTEGRATED BUSINESSES, SENSORS AND SATELLITES, DEFENSE CONTRACTOR AND BUILDING INTO THE LOW-EARTH ORBIT AREA -- -- A LITTLE BIT DIFFERENT ANIMAL I THINK. ISABELLE: HOW SHOULD WE LOOK AT ROCKET LABS ULTIMATELY? EVERYONE IS TRYING TO VALUE THE COMPANY BUT IT'S KIND OF CHALLENGING BECAUSE IT IS MANY COMPANIES ALL BUNCHED UP TOGETHER. MICHAEL: SO, I THINK NEUTRON TAKES THEM TO THE NEXT STAGE. IT IS A FULLY REUSABLE ROCKET. IT HAS DONE SOMETHING EVEN SPACEX HAS NOT DONE. EVEN THE FAIRINGS ARE REUSABLE, THEY CALL IT THE HUNGRY HIPPO, THE FAIRING OPENS UP. SO THAT CAPTURE THE ENTIRE BOOSTER AND FAIRING IN ONE STEP. ISABELLE: IT IS SAID NEUTRON IS FILLING UP THROUGH THE END OF THE DECADE. WHAT IS THE DEMAND? MICHAEL: IT IS SEEINGMICHAEL: NEUTRON DELIVER THE PILLOWS AND SEE THEM WHEN THE TASK ORDERS AND THE WINS ON THE SPACE PROGRAM INCLUDING GOLDEN DAWN. DAVID: TALK MORE ABOUT THE REAL RELIANCE ON GOVERNMENT CONTRACTS. WHAT DO YOU SEE AHEAD? MICHAEL: THE GRANULARITY ON GOVERNMENT VS. COMMERCIAL IS NOT CLEAR YET BUT CERTAINLY WINNING THESE BIG GOVERNMENT CONTRACTS IS IMPORTANT AND WE ARE SEEING GREEN SHOOTS ON THE COMMERCIAL SIDE. WE ARE SEEING THEM SELLING. ANDRIL IS A COMMERCIAL SALE BETWEEN ROCKET LABS AND ANDRIL. DAVID: ASKING YOU ABOUT P&L IN PARTICULAR, WHAT SHOULD WE BE LOOKING AT IN THAT PART OF THE BALANCE SHEET? MICHAEL: THINK WE'VE GOT TO WATCH THE GROSS MARGINS. REVENUES ARE IN LINE. I DON'T THINK THERE'S IS -- THERE'S A TON TO DIG INTO AN EARNINGS. MAKING SURE THAT NEUTRON CONTINUES TO MOVE FORWARD ON TIME. ISABELLE: ROCKET LABS LIKE OTHER GROWTH COMPANIES ARE BUILDING CONTRACTS AND WINNING THEM. BUT THERE'S A BACKLOG, WHEN DO YOU START BECOMING BULLISH AND START BECOMING WORRIED? THE BACKLOGS CAN ALSO BE OMINOUS TO SOME. MICHAEL: THE BACKLOG QUESTION IS GREAT, THERE IS A COUPLE BILLION RIGHT NOW WE WILL SEE CONVERTED OVER THE NEXT COUPLE OF YEARS. THEY ARE CONVERTING THAT BACKLOG SO I DON'T THINK THERE'S ANYTHING TO BE CONCERNED ABOUT. WHAT YOU ARE EXACTLY RIGHT, WE WANT TO SEE THE BACKLOG GROWING AND CONVERTING ON A TIMELY SCHEDULE. ISABELLE: WHAT EXACTLY ARE YOU GOING TO BE LISTENING TO ON THE EARNINGS CALL OTHER THAN THE WHOLE CALL OF COURSE BUT IS THERE ANYONE FACT HE WILL BE, LIKE, I WANT TO HEAR THIS? MICHAEL: WE ARE VERY LONG-TERM INVESTORS, WHERE IS THE PRODUCT GOING, THE DISTRIBUTION GOING? IN THIS CASE THE PRODUCT IS NEUTRON. I WILL BE LISTING TO, IS NEUTRON ON TRACK? PETER ALWAYS SAYS IT IS BETTER TO LAUNCH SUCCESSFULLY. LESS ABOUT TIME, MORE ABOUT SUCCESS. THERE IS WIGGLE ROOM FOR AN EXTRA WEEK OR MONTH OR TWO BUT HE IS CONVEYED TO THE STREET THAT IT WILL GIVE NEUTRON IN Q4, IT WILL BE ON THE PAD IN Q4. DAVID: I WOULD LOVE TO AND -- THIS IS WHERE WOULD LOVE TO END THINGS. THERE'S EAGERNESS TO SHOW DEMONSTRABLE RESULTS BUT YOU ARE SAYING YOU ARE A LONG-TERM INVESTOR. HOW MUCH PATIENCE DO YOU THINK INVESTORS HAVE HERE WITH THE PROCESS THAT MIGHT TAKE SLIGHTLY LONGER? MICHAEL: I THINK WE'VE GOT A LONGER TIME HORIZON THAN MOST BUT I THINK THE STREET EVEN IN THEIR IMPATIENCE AS LONG AS PETER CAN GIVE A DEFINITIVE DATE WHEN THE ROCKET WILL FLY, HE IS GOT WIGGLE ROOM. PEOPLE WOULD RATHER HAVE A SUCCESSFUL LAUNCH JANUARY 10TH THAN A MODERATE -- SOMETHING AT RISK DECEMBER 25. IF THAT IS THE WIGGLE ROOM, I DON'T THINK THE STOCK WILL GET PUNISHED. PUSHING OUT INTO THE FUTURE, WE MIGHT HAVE TO CONSIDER HOW THAT CAN AFFECT THE STOCK PRICE. ISABELLE: LOTS OF EXCITING TIMES. MAYBE WE WILL SEE THE LAUNCH SOON. THANKS FOR JOINING US, MICHAEL MONAHAN. JOINING US HERE IN STUDIO. THANK YOU. COMING UP, WE ARE STICKING WITH EARNINGS, BREAKING DOWN RESULTS FROM HYMNS AND HERS AFTER THE BREAK -- HIMS AND HERS AFTER THE BREAK. THIS IS THE CLOSE ON BLOOMBERG. ISABELLE: TAKING A LOOK AT SHARES OF HIMS AND HERS HEALTH, IT IS IN THE GREEN. IT WAS FLUCTUATING EARLIER. MAYBE IN A SECOND IT WILL BE IN THE RED BUT THIS COMES AT THE RESULTS FROM THE TELEHEALTH COMPANY THAT SHOWED THE TOP END OF THE EBIT OF FORECAST REDUCED. THAT IS FOR THE FULL YEAR. JOINING US TO BREAK DOWN THE NUMBERS IS BLOOMBERG'S MADISON MULLER WHO COVERS HEALTH AND BIOTECH AND PHARMA. IT SEEMS LIKE THE NUMBER IS CONFUSING AND AS YOU CAN SEE FROM THE STOCK, IT IS FLUCTUATING. MADISON: NOT ENTIRELY SURPRISED THERE IS SOME MOVEMENT HERE, I THINK IT IS TAKING EVERYONE A BIT OF TIME TO LOOK THROUGH THE RESULTS AND SORT OF PARSE OUT WHAT IS IMPORTANT IN WHAT THE REIT IS. HIMS BEAT ON REVENUE FOR THE CORNER AND THEY ARE INCREASING REVENUE GUIDANCE FOR THE YEAR. AT THE SAME TIME THEY TOOK A BIGGER PROFIT LOSS THAN THE STREET WAS EXPECTING. THAT IS ONE OF THE THINGS INVESTORS HAVE BEEN LOOKING AT WHEN IT COMES TO HIMS, HIMS MADE THIS SWITCH EARLIER THIS YEAR, I DON'T KNOW, SOME PEOPLE MIGHT REMEMBER THEY SAID THEY WERE GOING TO MOVE AWAY FROM SELLING THE COPYCAT OR COMPOUNDED WEIGHT LOSS DRUGS THEY HAD BEEN KNOWN FOR THE LAST COUPLE OF YEARS AND THEY WOULD GO INTO SELLING THE BRAND NAME GLP-1 DRUGS. AND THERE'S A LITTLE BIT LESS OF A MARGIN THERE, THEY CAN MAKE LESS MONEY ON SELLING THE BRAND-NAME DRUGS BECAUSE THEY CAN'T MARK THEM UP AS MUCH AND SO THAT IS SOMETHING PEOPLE HAVE REALLY BEEN LOOKING AT AND TRYING TO SEE HOW THAT WILL IMPACT HIMS. ISABELLE: AND EARLIER WE HAD MACDONALD WHO WAS BETTING ON THE PARTNERSHIP AS THE GAME CHANGER, ARE YOU HEARING THAT FROM YOUR SOURCES? HOW BIG WAS THE DEAL, THE PARTNERSHIP? MADISON: IT'S DEFINITELY A BIG DEAL IN TERMS OF IT REMOVING THIS LEGAL OVERHANG THAT WAS REALLY WEIGHING ON HIMS' STOCK FOR A WHILE. PEOPLE WERE WONDERING FOR A LONG TIME BECAUSE OF THIS SPAT BETWEEN THE TWO COMPANIES, BEING OUT IN THE OPEN, THEY WERE WONDERING WHETHER NOVO WAS GOING TO SUE HIMS, THEY CAME OUT AND BASICALLY DID THAT. THAT WAS JUST A LONG TIME SORT OF QUESTION MARK CONCERN FOR INVESTORS AND THE TWO CAME BACK AROUND AND SAID THEY WERE ACTUALLY GOING TO BE PARTNERING. SO THAT WAS A REALLY IMPORTANT MOMENT FOR HIMS, THAT'S ALSO WHEN THEY SAID THEY WOULD CHANGE THEIR STRATEGY AND MOVE AWAY FROM SELLING THE COMPOUNDED DRUGS AND FOCUS ON SELLING THE BRAND NAME ONES AND THE HOPE WAS THAT WOULD INCREASE VISIBILITY, DECREASE THE LABEL -- THE LEGAL OVERHANG AND BRING IN PEOPLE WHO WANTED DILIGENT BRAND NAME DRUGS BACK TO THE PLATFORM. I THINK PEOPLE WILL BE ENCOURAGED TO SEE IN TERMS OF SALES AND SALES GUIDANCE FOR THE REST OF THE YEAR, SEEMS LIKE HIM S IS MOVING IN THE RIGHT DIRECTION. DAVID: WE FOLLOWED THE DRAMA OVER THESE LAST MANY MONTHS. LET ME ASK YOU ABOUT THE SUBSCRIBER NUMBERS FROM THE EARNINGS REPORT, 2.9 ONE MILLION, THE ESTIMATE WAS 2.7 4 MILLION. TALK ABOUT PROSPECTS FOR GROWTH IN WEIGHT LOSS DRUGS, WHAT IS AND OVER TELL YOU ABOUT THE GROWTH TRAJECTORY OF THIS COMPANY? MADISON: IT'S A REALLY GOOD POINT. IT BRINGS US BACK TO PEOPLE SEEKING OUT THE BRAND-NAME DRUG SO THEY MIGHT BE COMING TO HIMS FOR THAT BUT THEY ALSO HAVE A SUITE OF OTHER OFFERINGS AND COSMETIC OR AESTHETIC TREATMENTS, ALSO OTHER TREATMENTS FOR THINGS LIKE HEART DISEASE, STATINS. THEY ARE KNOWN FOR THEIR BREAD AND BUTTER, ERECTILE DYSFUNCTION DRUGS IS WHAT THEY'VE ALWAYS BEEN KNOWN FOR. THEY DO OFFER THIS MORE PERSONALIZED TREATMENT, SEEMS LIKE CUSTOM TREATMENTS, THEY ARE LIVING HEAVY INTO A.I. AND LEANING INTO THE APP EXPERIENCE AND USER INTERFACE TO MAKE IT EASIER FOR PEOPLE TO IN DIRECT WITH A DOCTOR AND ASK QUESTIONS. WHICH I THINK PEOPLE ARE REALLY EMBRACING AND REALLY LIKE BECAUSE THE HEALTH CARE SYSTEM AS WE KNOW IT IS SO FRAGMENTED. A LOT OF DOCTORS AND PRIMARY CARE DOCTORS DON'T HAVE TIME TO SEE PATIENTS AND PEOPLE ARE LIKING THIS MORE ONLINE AND AT YOUR FINGERTIPS MODEL. HIMS IS LEANING INTO THAT AND IT SEEMS LIKE IN TERMS OF SUBSCRIBER GROWTH, THAT IS SOMETHING THAT'S BEEN POPULAR. DAVID: HOW DO YOU CATEGORIZE THIS COMPANY, DO YOU SEE IT AS A PHARMACY, NEW KIND OF PHARMACY, SOME SORT OF BROADER HEALTH CARE COMPANY, SOMETHING NOVEL? HOW DO YOU DEFINE IT? MADISON: THAT IS SOMETHING WE HAVE ACTUALLY ASKED HIMS AND SOMETHING WE HAVE BEEN ASKING AS A TEAM FOR A LONG TIME BECAUSE THEY SEEM TO SORT OF DO EVERYTHING. AT A CERTAIN POINT THEY WERE ALSO SELLING THESE COMPOUNDED DRUGS, SO WE WERE LIKE, IS THIS A PHARMACEUTICAL COMPANY? THEY SORT OF THINK OF THEMSELVES AS A ONE-STOP SHOP. THEY WANT TO BE THE FUTURE OF THE HEALTH CARE SYSTEM WHICH IS LIKE A VERTICALLY INTEGRATED THING WHERE YOU HAVE THE APP, THE DOCTORS, POTENTIALLY THE DRUGS BECAUSE THEY DO MAKE CERTAIN COMPOUNDED PRODUCTS, EVEN THOUGH IT IS NOT GLP-1'S WITH A WEIGHT LOSS DRUGS -- THEY MAKE DIFFERENT GUMMIES. SO THEY'RE DOING ALL OF THIS AND THAT MIGHT BE WHERE WE ARE GOING. IT'S BEEN POPULAR WITH CONSUMERS. THAT'S FOR SURE. SO WE ALSO SEE TRADITIONAL PHARMACEUTICAL COMPANIES ADOPTING SOME OF THE ELEMENTS THAT HAVE BEEN REALLY POPULAR IN HIMS AND OTHER TELEHEALTH COMPANIES. DEFINITELY CONTINUE WATCHING IT. WE WILL BE TALKING ABOUT IT FOR A LONG TIME. DAVID: THANK YOU VERY MUCH. REALLY APPRECIATE IT. WE ARE WATCHING NVIDIA, LOOKING AT THOSE SHARES, UP WHEN IT PERCENT ON THE NEWS THAT THE IDEA TO MOBILIZE HAVE HUNDRED BILLION DOLLARS FOR SIX FIRMS ARE AI COMPUTE WAS JENSEN HUANG'S IDEA. THOSE OF THE DETAILS WE'VE GOTTEN HERE IN RECENT MINUTES. THERE ARE SIX FIRMS WORKING WITH NVIDIA ON A.I. COMPUTE, HE WHO IS WHO OF PRIVATE CREDITORS INCLUDING APOLLO, BLACKSTONE, BROOKFIELD, GOLDMAN SACHS AS WELL AND KKR2. MORE TO COME HERE. "THE CLOSE CONTINUES HERE ON -- "THE CLOSE" CONTINUES HERE ON BLOOMBERG TELEVISION. ♪ DAVID: PRIMARY ELECTIONS HEATING ACROSS THE U.S. AS SEVERAL HIGH-PROFILE ELECTIONS UP FOR GRABS TOMORROW IN MINNESOTA AND WISCONSIN. THE LATEST ROUND COMING AFTER ABDUL EL-SAYID WON IN MICHIGAN LAST WEEK. WE DISCUSSED THE BROADER IMPLICATIONS OF HER LOSS. >> I THINK MY COALITION IS AWESOME. I'M REALLY PROUD OF IT. I WON DETROIT BY 67% OF THE VOTE BUT PEOPLE JUST WENT HEALTH CARE. JOINING SARAH BIANCHI US NOW IS -- JOINING US NOW IS SARAH BIANCHI. I THINK A LOT OF PEOPLE SAY THIS WAS A UNIQUE CIRCUMSTANCE. MICHIGAN IS UNIQUE. YOU LOOK AHEAD TO WISCONSIN OR THE RACE WE HAVE IN SOUTH CAROLINA. THE BROADER TREND HERE OF DISUNITY IN THE DEMOCRATIC PARTY. WHAT DOES IT TELL YOU BUT THE PATHWAY TO THE MIDTERMS, THE OUTCOME WE SAW IN MICHIGAN? SARAH: I THINK IT WAS QUITE THE VICTORY FOR ABDUL EL-SAYED, PARTICULARLY GIVEN HOW MUCH HE WAS OUTSPENT. THE ENERGY IN THE PARTY IS WITH THE PROGRESSIVE WING. ALTHOUGH HE WAS ALSO A PRETTY GOOD CANDIDATE LISTENING TO HIM. THERE IS A LOT ABOUT CANDIDATE QUALITY THAT IS GOING ON. AS WAS MENTIONED, DETROIT AND OTHER PARTS OF THE COALITION, AFRICAN AMERICAN VOTERS AREN'T AS PERSUADED. THE REAL CHALLENGE, FOR ANY THESE PROGRESSES IS CAN THE UNIFIED OTHERS? I DON'T THINK, YOU KNOW -- I THINK THEY DID A GOOD JOB TRYING TO DO THAT IN MICHIGAN, BRING EVERYBODY TOGETHER. THAT IS REALLY THE QUESTION. CAN SOME OF THESE CANDIDATES GET OVER THE FINISH LINE? DAVID: I CAN HEAR THE KUMBAYA ALL THE WAY HERE FROM MICHIGAN AS THEY TRY TO GET TOGETHER AND HOLD HANDS. HOW DIFFICULT IS THAT GOING TO BE IN LIGHT OF WHAT A BRUISING CAMPAIGN THAT WAS, BRUISING PRIMARY IN MICHIGAN? HOW DID THESE DISPARATE PARTS OF THE PARTY COME TOGETHER TO PIECE TOGETHER A PLATFORM THAT WILL SUIT A BROAD COALITION AND ENCOMPASS THE BIG TENT THE DEMOCRATS WANT TO HAVE HERE? SARAH: IN THE MICHIGAN MESSAGE, HONESTLY DR. EL-SAYED'S MESSAGE WAS ABOUT HEALTH CARE AND GETTING MONEY OUT OF POLITICS. HE DID NOT EMBRACE ALL OF THE DEMOCRATIC SOCIALIST MOVEMENT AND SUCH. IF HE CAN KEEP THAT NARRATIVE GOING AND MAYBE, YOU KNOW, STAY OFF SOME OF THESE PODCASTS IDENTIFYING WITH FOLKS PEOPLE ARE NOT COMFORTABLE WITH, I DO THINK HE HAS A SHOT AT IT. BUT AS WE KNOW, IT IS VERY EASY FOR THE REPUBLICANS TO PAINT A PICTURE OF SOMETHING THAT MICHIGAN VOTERS ARE NOT GOING TO BE COMFORTABLE WITH. THE REAL QUESTION IS, CAN, FOR ALL DEMOCRATS, CAN THEY DO THAT? HOW MUCH CAN YOU FIGHT THE NARRATIVE? TO BEAT MIKE ROGERS THEY ARE GOING TO NEED A SET OF MODERATES, A SET OF FOLKS IN THE CITIES, A DIVERSE COALITION. IT REMAINS TO BE SEEN HOW THAT WILL GO. ISABELLE: DOES EL-SAYED'S WIN MAKE IT MORE COMPETITIVE IN NOVEMBER? SARAH: I THINK IT DOES GIVE MIKE ROGERS -- WHO WAS A PRETTY STRONG CANDIDATE IN MICHIGAN IN 2024. THIS WAS NEVER A LOCK FOR THE DEMOCRATS. IT IS MORE CHALLENGING. BUT I THINK HE RAN A REALLY GOOD CAMPAIGN. HE SHOWED A WIN. IT IS NOT UNDOABLE. WHEN FOLKS ASK ABOUT DEMOCRATS TAKING THE SENATE, WE ALWAYS SAY YOU HAVE GOT TO LOOK AT SOME OF THE STATES LIKE MICHIGAN AND MAINE THAT ARE SUPPOSED TO BE EASIER. THOSE ARE NOT THAT EASY. THAT'S EVEN BEFORE YOU GET TO SOME OF THE STATES LIKE ALASKA OR IOWA. GETTING ALL THESE RACES OVER THE FINISH LINE WILL BE IN OUR VIEW VERY DIFFICULT FOR THE DEMOCRATS. DAVID: LET'S TURN TO WASHINGTON. LAWMAKERS ARE HEADING BACK FOR THEIR RECESS AND THE SENATE DID PASS THE STOPGAP SPENDING BILL TO CARRY THEM THROUGH THE MIDTERMS. HOW OPTIMISTIC ARE YOU THE HOUSE WILL PICK THAT UP AND WHAT DOES THAT SAY ABOUT THE WAY THE LEGISLATIVE BRANCH IS GOVERNING THESE DAYS? MUCH LESS ACRIMONIOUS DEBATE ON THE SENATE SIDE ABOUT THAT FUNDING. THE PART AND PARCEL ARE A FEW THINGS PRESIDENT TRUMP WAS ADAMANT BEING IN THE BILL. WE DON'T SEE SUPPLEMENTARY FUNDING FOR THE PENTAGON. WE DON'T SEE THE VOTING BILL HE WANTED, THE COMPONENTS OF THAT AS WELL. WHAT DOES THAT TELL YOU ABOUT THE STATE OF THE LEGISLATIVE BRANCH IN WASHINGTON POLITICS TODAY? SARAH: I THINK THIS CLOSE TO A MIDTERM NOBODY -- NEITHER SIDE WANTS TO SEE A FUNDING RUN OR GOVERNMENT SHUTDOWN. THAT IS ACTUALLY KIND OF PAR FOR THE COURSE IN WASHINGTON ONCE YOU GET CLOSE ENOUGH. EVERYBODY KIND OF WANTS TO GET THINGS DONE AND I THINK THE REPUBLICANS HAVE ENOUGH ON THEIR PLATE IN THESE ELECTIONS GIVEN VOTER DISCONTENT ABOUT PRICES AND OTHER ISSUES. THEY ARE NOT GOING TO WANT TO SHUT DOWN. I ASSUME THIS WILL PASS. IT HAS BEEN AN ANEMIC YEAR FOR LEGISLATING. AS THE NERO MARGINS IN THE HOUSE FOR THE REPUBLICAN PARTY AND SOME OF THE SENATORS ON THE REPUBLICAN SIDE THAT FEEL ALIENATED BY THE PRESIDENT. IT IS A VERY DIFFICULT ENVIRONMENT. IN THIS CASE I THINK IT IS JUST NOBODY WANTS TO -- IT IS KIND OF THE TIME OF THE YEAR FOR NO HITS, NO RUNS, NO ERRORS IN TERMS OF SPENDING. DAVID: AN ANEMIC YEAR. TENNESSEE PUT. ONE ISSUE YOU ALLUDED TO IS THE ONGOING WAR WITH IRAN. I'M CURIOUS WHAT YOU ARE COUNSELING CLIENTS TO LOOK FOR AS THEY ARE HOPING FOR SOME SORT OF RESOLUTION OR INDICATION OF A GOING FORWARD. WE WERE TALKING ABOUT OIL PRICES A FEW MINUTES AGO. HIGHER TODAY BECAUSE THE DEAL THE PRESIDENT SAID WAS LIKELY COMING HAS NOT MANIFEST. HOW DO YOU CHART THE DAY-TO-DAY UNDULATIONS IN THE CONFLICT? ARE YOU AMONG THOSE THAT, LIKE MANY OF US, THROWING UP YOUR HANDS AND WONDERING WHERE THE OFFRAMP IS GOING TO BE IF THERE IS ONE. I THINK WE LOST HER. WE WILL THINK HER VERY MUCH OF THE COMMENTARY. SARAH BIANCHI JOINING US. A LOT OF PEOPLE NOT KNOWING WHERE TO LOOK OR WHO TO LISTEN TO. YOU HAVE THE PRESIDENT SAYING ONE THING AND HIS COUNTERPARTS IN A RUN AND COUNTRIES IN THE MIDDLE EAST SAYING SOMETHING ELSE ENTIRELY -- IRAN. ISABELLE: TO YOUR POINT, IT'S BEEN A HEADLINE PING-PONG. YOU WAKE UP IN THE HEADLINE IS DIFFERENT AND BEFORE YOU SLEEP IT IS DIFFERENT. LET'S LOOK AT SOME OF THE STOCKS MOVING IN THE AFTER HOURS. NVIDIA IS THE ONLY GREEN ON THE SCREEN, HIGHER BY .5%. ROCKET LABS AND THE HYMNS AND HERS DOWN BY NEARLY 2.5% AND 1%. YOU ARE ALSO LOOKING AT -- MY EYESIGHT IS BAD BUT I THINK THAT IS AST SPACEMOBILE DOWN BY .3%. THIS IS "THE CLOSE". MORE TO COME ON BLOOMBERG. ISABELLE: CONCERNS OVER FOOD SAFETY SHOWING NO SIGNS OF SLOWING DOWN WITH TAYLOR FARMS NOW PULLING FOOD ITEMS LIKE SALSA AND GUACAMOLE OFF THE SHELVES OVER SALMONELLA CONCERNS TIED TO JALAPENOS. THIS IS AMID A FOCUS ON THE CYCLOSPORA OUTBREAK ACROSS THE U.S. WHICH HAS SICKENED THOUSANDS ACROSS THE NATION. JOINING US TO DISCUSS IS CRAIG STEPHENSON OF GOTHAM GREENS. THAT IS THE MOST TOPICAL. HAVE YOU SEEN AN EFFECT ON YOUR BUSINESS WHEN IT COMES TO ALL THESE YEARS OF OUTBREAKS AND PEOPLE MAYBE EATING LESS GREENS? CRAIG: WE ARE SEEING PEOPLE ARE EATING LESS GREENS AS THEY PROCESS THE INFORMATION THAT'S BEEN HAPPENING AND IS PUSHED INTO THE NEW CYCLE THROUGH THINGS LIKE TAYLOR FARMS' ANNOUNCEMENT. THAT DOESN'T HELP. AT THE END OF THE DAY I THINK CONSUMERS WANT TO EAT SALADS AND THEY'RE STARTING TO EAT THEM MORE THAN THEY WERE JUST A FEW WEEKS AGO AT THE BEGINNING OF THE OPERATE. ISABELLE: I TOLD DAVID I'M FEARLESS OR MAYBE IRRESPONSIBLE -- DAVID: YOU ARE A SALAD FAN. ISABELLE: YOU HAVE GONE FROM ONE ROOFTOP GREENHOUSE TO MORE THAN 40 ACRES NATIONWIDE. WHAT IS THE BIGGEST UNLOCKED TO INDOOR FARMING AT SCALE WORK? CRAIG: WE HAVE 12 GREENHOUSES AROUND THE COUNTRY. NINE DIFFERENT STATES. THAT IS PART OF THE UNLOCK TO MAKE INDOOR CONTROLLED ENVIRONMENT AGRICULTURE WORK. TO BE CLOSE TO THE LOCATIONS WHERE CONSUMERS ARE SHOPPING. THAT IS ONE OF THE BENEFITS OF INDOOR GREENHOUSE GROWING. IT DOESN'T TRAVEL THOUSANDS OF MILES TO GET TO CONSUMERS' DOORS. THAT GIVES YOU A FRESHER PRODUCT, MORE BEAUTIFUL PRODUCT, AND SOMETHING WE ARE EXCITED ABOUT. I THINK IT WILL PLAY A ROLE IN THIS NATION'S FOOD AVAILABILITY OVER TIME. DAVID: I WAS SAYING BEFORE WE STARTED TALKING I LIVE NEAR ONE OF YOUR FACILITIES ON THE ROOF OF THE WHOLE FOODS IN BROOKLYN. I'M CURIOUS HOW REPLICATIVE WILL THAT IS ACROSS THE COUNTRY. I THINK WE HAVE DONE IS A REAL TEST CASE. WHEN YOU THINK ABOUT THE FUTURE OF FARMING, HOW MUCH WILL IT LOOK LIKE WHAT I SEE HERE IN BROOKLYN? CRAIG: ABOUT 10 YEARS AGO, LEAFY GREENS IN PARTICULAR WAS ABOUT LESS THAN 1% OF THE LEAFY GREENS BUSINESS IN THE U.S.. TODAY IT IS ABOUT 8% AND WE ARE HONORED OUR WAY TO 10%. AS A COMPONENT OF THE OVERALL FOOD NETWORK WE ARE ON OUR WAY TO BEING A SUBSTANTIAL PART OF IT. I THINK IT IS REPLICATIVE WILL BUT YOU HAVE TO DO THE THINGS THAT WE DO, WHICH IS BE CLOSE TO WHERE CONSUMERS ARE SHOPPING, BE LOCAL, HAVE BEAUTIFUL LOOKING STUFF, AND HAVE THINGS THAT HAVE GREAT SHELFLIFE BOTH IN THE STORE AND IN CONSUMERS' HOME. DAVID: I'M CURIOUS HOW THE OUTBREAKS AFFECT YOU APPROACH YOUR BUSINESS SO I WILL SAY YOU HAVE NOT HAD PROMISED -- PROBLEMS WITH THIS. SWEETGREEN HAD TO MENTION IT BECAUSE OF RECENT DECLINES. HOW DOES THIS AFFECT THE WAY YOU PURSUE FOOD SAFETY AND WHAT YOU HAVE TO EMPHASIZE TO THE PUBLIC? I WONDER IF IT'S AN OPPORTUNITY OR A MOMENT WHERE A COMPANY LIKE YOURS HAS TO PRESENT TO THE PUBLIC MORE INFORMATION ABOUT THE WAY YOU KEEP FOOD SAFE AND THE PROCESSES YOU HAVE IN PLACE. CRAIG: WE CERTAINLY HAVE RAMPED OF THE COMMUNICATION AROUND THE THINGS WE DO AT GOTHAM GREENS TO KEEP OUR PRODUCTS SAFE AND TASTING GREAT FOR CONSUMERS. IT IS NEVER GOOD FOR AN INDUSTRY TO HAVE AN OUTBREAK LIKE THIS. IT DOES CAUSE CONSUMERS TO HAVE SOME CONCERN ABOUT THE PRODUCTS THEY ARE BUYING ON THE STORES -- IN THE STORES. LOOK, WE HAVE CONTROLLED ENVIRONMENT STRUCTURES WHERE WE TREAT THEM ALMOST LIKE A TECH FACILITY OR FOOD MANUFACTURING FACILITY. THERE IS HAND WASHING, NETTING, HAIR NETTING. WE HAVE EXIT PROTOCOLS ON HOW TO WASH HER HANDS. WE HAVE FILTERED WATER COMING INTO THE FACILITIES. WE HAVE CONTROLLED HUMIDITY. WE USE A CERTAIN NUTRIENT SET WHEN WE DO WATER THE PLANTS. OUR MISSION HAS BEEN TO TALK ABOUT THOSE THINGS, NOT SO MUCH ANYTHING ELSE. ISABELLE: YOU HAVE THOUSANDS OF LOCATIONS RIGHT NOW. WHEN YOU ANALYZE YOUR CONSUMERS, WHY DO THEY BUY YOUR PRODUCTS? IS IT BETTER FOR THE PLANET OR THE PRODUCT IS BETTER OR MAYBE BOTH? CRAIG: IF I HAD THE EXACT ANSWER TO THAT, IT WOULD BE AMAZING. I THINK CONSUMERS HAVE DIFFERENT MOTIVATIONS TO BUY OUR PRODUCTS. ONE THING THAT IS RELATIVELY CONSISTENT IS IT IS LOCAL. THEY KNOW IT IS GROWN NEARBY. THAT TRANSLATES INTO GREAT SHELFLIFE. IT LAST LONGER IN THE REFRIGERATOR. I'VE ONLY BEEN WITH THE COMPANY FOR MONTHS AND IT WAS A THING THAT BLEW ME AWAY IS HOW BEAUTIFUL THE PRODUCT LOOKED EVEN AFTER SEVERAL DAYS IN THE REFRIGERATOR. IT LASTED A LONG TIME THERE. AND IT'S JUST A BEAUTIFUL PRODUCT. THAT'S WHAT CONSUMERS WANT. AND THEY ARE WILLING TO MAY BE A LITTLE BIT MORE FOR THAT. DAVID: LET ME ASK YOU A TREND QUESTION PREDATING THE OUTBREAKS WE HAVE HAD AND THE EFFECT ON CONSUMER APPETITE. WHAT ARE THE LEAFY GREENS THAT SEE MORE POPULARITY? THIS OUTBREAK STARTED WITH ICEBERG LETTUCE. THERE WERE SO MANY OTHER OPTIONS PEOPLE ARE BUYING FOR SALADS. >> YEAH. YOU HAVE SEEN THE EXPLOSION IN SALAD KITS IN PARTICULAR WHICH ARE GROWING AT SIGNIFICANT RATES, DOUBLE DIGITS. CONSUMERS ARE LOOKING FOR KITS, WHETHER IT IS SPINACH OR RED LETTUCE OR ROMAINE OR A CRISPY GREEN LEAF THAT ARE THEN PACKAGED WITH SALAD DRESSINGS AND CROUTONS AND OTHER THINGS THAT HELP PROVIDE A FULL MEAL. THAT IS REALLY EXPLODING. AND REALLY DRIVING A LOT OF THE BUSINESS IN OUR. . DAVID:THE KIT IS KEY AND POPULAR IN MY HOUSEHOLD. THANK YOU. APPRECIATED. STILL AHEAD, WHAT INVESTORS NEED TO WATCH FOR OVER THE NEXT 24 HOURS. WE WILL GET INTO THAT NEXT. THIS IS BLOOMBERG. DAVID:, FOOTBALL RIGHT AROUND THE CORNER. THE NEW YORK JETS ARE GETTING READY FOR A PARTNERSHIP . BLOOMBERG'S ROMAINE BOSTICK CAUGHT UP WITH HIM TO TALK ABOUT THE PARTNERSHIP AND MUCH MORE. >> EVERYTHING IS ABOUT ENHANCING THE IN-GAME EXPERIENCE AND GETTING INFORMATION. YOU TALK ABOUT BRANDING, PARTNERS, BILLBOARDS, THEY ARE ONE OF THE LEADERS IN THE SPACE AND A GREAT STRATEGIC PARTNER TO HAVE WITH THE JETS. YOU SAW WHAT HAPPEN WHEN THE WORLD CUP CAME, GETTING INFORMATION TO THE CONSUMERS. AND UNDERSTANDING THAT FOOTBALL IS A UNIX PORT WHERE IT'S GENERATIONAL SO YOU HAVE THE NEW TECHIES AND YOUNG PEOPLE THAT CAN DIGEST IT BUT SOME GUYS ARE OLD-SCHOOL LIKE MY DAD AND WHEN YOU DRIVE THROUGH THAT OLD-SCHOOL BILLBOARD, THAT'S HOW YOU GOT YOUR INFORMATION. ROMAINE: ANYTIME WE TALK ADVERTISING, IT'S ABOUT HOW WE CAN DO WHATEVER ON SOCIAL MEDIA AND TIKTOK CAMPAIGNS AND THINGS LIKE THAT. BUT STILL IT'S LIKE, THAT IS STILL A BIG BUSINESS. PEOPLE PAY ATTENTION TO THOSE THINGS? >> YOU'VE GOT THE DIGITAL BILLBOARD, IT ENHANCES THE EXPERIENCE BEYOND. WHEN YOU TALK ABOUT THE OFF-PEAK SEASONS WHEN PEOPLE ARE NOT THINKING ABOUT WHAT'S GOING ON WITH THE TEAM, WE HAVE THIS EVENT, THIS SIGNING FOR A PLAYER. NFL TEAMS ARE ALL ABOUT BRANDING. YOU MIGHT AS WELL BE LIKE NASCAR. YOU HAVE SO MANY STRATEGIC PARTNERS BUT IT ALLOWS YOUR PARTNERS TO BE ABLE TO ADVERTISE WHAT THEY HAVE GOING ON . WITH THE ORGANIZATION, YOU WERE TALKING ABOUT $11 BILLION INDUSTRY ANNUALLY JUST YOU LOOK AT THE EVALUATION OF THE TEAM AND HOW THEY ARE EXPLODING IS BECAUSE THEY ARE STRATEGICALLY BRANDING WITH OTHER COMPANIES AND USING RESOURCES COLLECTIVELY. ROMAINE: ONE THING I SO WHEN THE ANNOUNCEMENT WAS MADE ABOUT THE UPFRONT PARTNERSHIP WAS THIS IDEA THAT IN THE MIDDLE OF THE DAY THEY CAN DECIDE THEY WANT TO TAKE A DIFFERENT TACT AND THAT IS SORT OF A BIG PART. ARE YOU HAVING FUN WITH THIS? WILL YOU BE ON THESE BILLBOARDS? >> I HOPE SO. [LAUGHTER] BUT YOU TALK ABOUT BEING ABLE TO GET THE INFORMATION -- EVERYTHING IS ANALYTICAL. BECAUSE YOU HAVE A DIGITAL BILLBOARD, YOU UNDERSTAND WHO IS YOUR CONSUMER AND WHO IS THE AUDIENCE COMING OUT -- WE ARE IN MADISON SQUARE GARDEN YESTERDAY, PENN STATION. WHAT'S A DEMOGRAPHIC OF THE FANS COMING OUT, AS OPPOSED TO THE END OF THE DAY. EVERYTHING IS ANALYTICAL. WHAT TO PUT ON THE BOARD AT THE RIGHT TIME TO CATCH THE CONSUMER YOU ARE TRYING TO SEARCH FOR. DAVID: -- ROMAINE: YOUR DEPTH OF KNOWLEDGE IN FOOTBALL IS GREAT. A COUPLE WEEKS AGO I COULD TURN ON THE LOCAL STATION HERE AND YOU WERE ON ESPN RADIO, YOU ARE NOT ANYMORE, ARE YOU PLANNING ANY OTHER VENTURES? YOU'VE BEEN A BROADCASTER FOR A WHILE, A GOOD ONE. >> APPRECIATE THAT. THANK YOU. ALMOST 13 YEARS I'VE BEEN DOING THIS. IT'S BEEN A BLESSING. I NEVER IN MY WILDEST DREAMS THAT I WOULD BE IN THE MEDIA. MY BACKGROUND WAS ECONOMICS AND FINANCE AND GOING THAT WAY BUT YOU NEVER KNOW WHAT PEOPLE SEE AND SOMEBODY SAW THAT MAYBE PEOPLE WOULD LISTEN TO ME OR APPRECIATE MY FOOTBALL ACUMEN AND I APPRECIATE THAT. LIKE MOST PEOPLE, YOU UNDERSTAND YOU HAVE STAGES AND DIFFERENT SEASONS IN YOUR LIFE AND I THANK ESPN FOR WHAT THEY PROVIDED, A PLATFORM. I GOT SOMETHING COOKING. I'M LIKE MICHAEL MYERS. YOU CAN'T QUITE KILL ME [LAUGHTER] ROMAINE: ALL RIGHT. WE ARE GOING TO LOOK OUT FOR YOU. I'M CURIOUS AS TO THE DYNAMICS OF ATHLETES HAVING THAT BROADCAST ABILITY OR POTENTIAL I SHOULD SAY BECAUSE THERE'S BEEN A LOT OF SPECULATION ONE REASON ESPN DID WHAT THEY DID IS THEY ARE SPENDING SO MUCH MONEY NOW THAT THEY HAVE TO SPEND TO JUST GET THE RIGHTS WHETHER IT IS TO THE NFL OR OTHER THINGS AND THAT MEANS A LITTLE LESS WORK ON AIR TALENT AND ANALYTICS, IS THAT THE TREND? >> ON THE FLIPSIDE, ESPN AND ALL THESE STREAMING PLATFORMS ARE MAKING YOU PAY FOR WHAT USED TO GET FOR FREE SO THEY CAN CRY BROKE OVER HERE WHEN THEY GOT SUBSCRIPTION-BASED PROGRAMS AND YOU THINK ABOUT A PLAYOFF GAME -- I WANT TO WATCH PLAYOFF GAME AND I USED TO BE ABLE TO GO TO CBS, FOX OR ESPN AND NOW I HAVE TO GO TO PEACOCK TO STREAM IT, AREN'T YOU NBC? WHERE I WOULD WATCH FOR FREE? SO WE ARE NOT GOING TO CRY FOR THE MEDIA OUTLETS BECAUSE THEY FIND WAYS TO SQUEEZE MONEY OUT AS WELL. WAS REALLY CHANGED AND ATHLETES ARE TAKING CONTROL -- WHAT'S REALLY CHANGED IS ATHLETES ARE TAKING CONTROL OF THEIR OWN MESSAGE. WE ARE STARTING TO GET THE GENERATIONS ARE STARTING TO PHASE AWAY, THE NEW GENERATIONS CONSUME KNOWLEDGE AND INFORMATION DIFFERENTLY, SO THEY ARE NOT TURNING ON THE TELEVISION. ROMAINE: DO YOU THINK -- LET'S TAKE LEBRON WHO OBVIOUSLY SET THE TEMPLATE FOR THAT YEARS AGO WITH THE DECISION TO GO TO MIAMI AND MORE RECENTLY TO GO TO PHILADELPHIA, YOU ARE SEEING YOUNGER PLAYERS TRYING TO COPY THAT SORT OF INTERNAL MEDIA MODEL. THEY WANT TO SUBMIT WE WILL SEE SOME OF THOSE PARTNERING WITH SOME OF THE PLATFORM TYPE BROADCASTERS? >> ABSOLUTELY. ONE OF THE THINGS THAT'S GENIUS ABOUT SOMEBODY LIKE STEPHEN H SMITH, WHAT HE'S DONE IS HE IS FINDING PEOPLE THAT HAVE THEIR OWN AUDIENCE. RIGHT? THINK ABOUT WHAT HE DID, HE HAD HIS OWN AUDIENCE AND OF COURSE THAT COULD NOT LAST BECAUSE OF WHATEVER HAPPENED WITH HIM BUT BRINGING CAM NEWTON ON, NOW YOU BRING SOMEBODY THAT HAS AN AUDIENCE AND HAS BUILT A PLATFORM, WITH THEIR OWN PODCASTS, NOW YOU BRING THEM ON -- NOT ONLY ARE YOU BRINGING THEM ON FOR THEIR ARGUMENT AND FOR WHO THEY ARE BUT YOU ARE BRINGING THEIR AUDIENCE ALONG WITH YOU THAT GETS MORE EYES WHICH YOU SELL TO MORE ADVERTISERS WHICH IN TURN BRINGS MORE MONEY FOR THE COMPANY. THAT IS SOMETHING SMART. YOU SAY DRAYMOND GREEN HAS HIS OWN PODCAST. NO COINCIDENCE HE'S WORKING WITH TNT. HE HAS FOUND HIS AUDIENCE AND THEY ARE GOING TO FOLLOW HIM AND CONSUME EVERYTHING HE DOES BECAUSE WE ARE IN AN ERA NOW WHERE IT USED TO BE YOUR LOYAL TO THE TEAM BUT NOW FANS ARE LOYAL TO THE PLAYERS. SO THEY FOLLOW. ALL THOSE LOS ANGELES LEBRON FANS ARE GOING TO FOLLOW HIM TO PHILADELPHIA BECAUSE THEY ARE A FAN OF HIM AND HE HAS TOUCHED SO MANY PEOPLE IN L.A. AND CLEVELAND, NOW YOU ARE BRINGING A FAN BASE OF DIFFERENT DEMOGRAPHICS AND SELLING THEM WHATEVER YOU WANT TO SELL THEM. DAVID: -- ISABELLE: THAT WAS FORMER JETS LINEBACKER BART SCOTT ALONGSIDE BLOOMBERG'S ROMAINE BOSTICK. LOTS OF INTERESTING INSIGHTS. DAVID: ABSOLUTELY, ABOUT THE FUTURE OF PRO SPORTS IN THE INVOLVEMENT OF ATHLETES GETTING INVOLVED ON THE BUSINESS SIDE AS WELL. THE REPORTING, WE'VE GOT KAVA, SUPERCOMPUTERS. WE TALKED ABOUT SPACE. THESE CONSUMER STOCKS ARE FRONT AND CENTER. ISABELLE: 90% OF THE S&P 500 COMPANIES HAVE REPORTED AND A LOT OF PEOPLE ARE SAYING THE K IS CLOSING. DAVID: WE WILL SEE WHAT HAPPENS OVER THE COURSE OF THE EARNINGS CALL AND GET MORE ECONOMIC NUMBERS. EXISTING HOME SALES AS WELL AS THE LATEST READ ON THE ECONOMY. WE WERE TALKING ABOUT PRIMARY ELECTIONS TAKING PLACE IN CONNECTICUT, MINNESOTA, VERMONT AND WISCONSIN. SOUTH CAROLINA IS CHOOSING THE REPLACEMENT FOR SENATOR LINDSEY GRAHAM. THAT DOES IT FOR US. "BALANCE OF POWER" IS UP NEXT. HAVE A GREAT EVENING. THIS IS BLOOMBERG. ♪