Stocks Climb as Rebound in Chipmakers Gathers Pace | Closing Bell

And right now we are two minutes away from the end of the trading day. Romaine Bostick alongside Katie Greipel taking a due to that closing bell. It's a global simulcast. Carol Massar Tim Sandvik they join us now. Welcome to our audiences across all of our Bloomberg platforms, television and radio. Our partnership with YouTube, with all of the major U.S. indices solidly in the green, the S&P upper percent, the Nasdaq indices Carol Massar up about two. Yeah. Thank you. Semiconductors. They go up, they go down, they go up. They go down. They go up. Today, uh, more than 5% every name for 30 names in the Philadelphia Semiconductor Index, 30 of them. They are all higher in today's session. Which ones are your favorite? Um. Oh, that's a good one. I like to call them all I like. You know, me, I used to talk about these. She loves all her stock names in China. And you know I do. All right. I don't have a favorite. Also higher. But I do like TSMC. Also higher today is oil. Mhm. Uh Brent up here $91 a barrel up another $2.20 WTI up. Uh another dollar $6,885 roughly for WTI futures. Katie. You wouldn't know it from looking at the equity market. I know you've been talking about that on the close. The sort of disconnect that we're seeing. You do see that a little bit. Uh, when you take a look at the bond market ten year yields back above 460, it's going to be interesting to see how long we can sort of see that discordance among these asset classes. Yeah. And it gets to this idea of what type of dispersion we could potentially see in this earnings season because of all of the factors sort of at play, including some of the geopolitical factors that have driven a lot of concerns about inflation and whether that inflation persists relatively right. Our earnings afternoon here, we are expecting a couple out of insurance company charges, as well as our credit card company, Capital One. Meanwhile, the closing bells in New York have green across the screen for the most part. So the Dow Jones Industrial Average adding almost 400 points on the day, or about 7/10 of 1%, the S&P 500, up about 66 points, or 9/10 of 1%. The Nasdaq Composite up 1.3%, the Nasdaq 100 up 1.9 and the Russell 2000. The small caps Carol Massar add in about 45 points are 1.5%. All right, Romaine Bostick I go back to the S&P 500 230 names gaining on this Tuesday. Katie got to 71 to the downside and two unchanged. A lot of breath when it comes to the circle here which measures the sectors. Nine sectors finishing in positive territory led by information technology higher by 2.4%. That is the big green slice on your screen there. Energy. Also having a great day as we were talking about health care to rising by about a sixth of 6/10 of a percent. Meanwhile, take a look at what didn't perform today. Relatively small sectors within the weighting of the index. Consumer staples down by about 1%. Communication services not too far behind. All right. So let's go to some individual gainers. Let's talk about space at a time. Are up more than 8% intraday today. But finishing with about a 3% gain here at the close on this Tuesday. Macquarie coming out saying hey the stock's pullback offers investors a compelling entry point to buy at a discount stock, down almost 40% from its high on June 16th. That was after three days of trading from its IPO. Meantime, I just want to throw this story into space. Set the stage for one of the largest share unlocks in capital market history, with as much as $116 billion worth of stock becoming eligible for sale for the first time next month. That's on August 6th. That's two days after the company does its first quarterly earnings. So we'll be watching. But nonetheless, investors buying in today's session today. Um, let's brands. Let's go there. Uh, interesting name here today. Uh, this one up 88%. Almost 89%. Company, uh, agreed to be taken private in a $2.9 billion deal with Inter Snack Group, giving inter snack its first foothold in the US market, acquiring all of us as class eight shares for a 1425 each. Stock closed at just a little bit over $14 a share today. Deal expected to close in the fourth quarter and will be financed by cash from Inter Snack, as well as a term loan and asset based lending facilities. What? What's your favourite Utz product? Potato chips? Yeah. You mean versus pretzels? Yeah. They have so many different brands, including Tims, Cascade Snacks. Which one is your favorite? I like Tims shocker snack. Interesting. Simple. Yeah. Uh, all right, General Motors, I just wanna throw that into the mix. If I may, uh, GM up almost 5% here at the close. Uh, this is after the company raised its full year profit forecast by another 500 million after beating second quarter earnings estimates, powered by stronger margins on its largest vehicles and lower tariff costs. Uh, they did lower, though their expected net income by at least 1.5 billion to a range of 9.9 billion to 11.4 due to electric vehicle related charges. But they don't expect further large write downs on EVs and batteries because they've all kind of written out a lot already. All right. Those are some some gainers. Let's talk about some decliners today, including the worst performer in the S&P 500. Donna Harcourt uh, down 11% today. This was its worst day going back to September of 1991, and at one point it was the worst day since October 19th, 1987, which we were. You, we all know. Yeah, I was I was in the tri state area. Are you. Yeah, I was that was that was Black Monday. I was tiny college there. Um, uh, the company gave core revenue growth out guidance for the, uh, third quarter that fell short of the average analyst estimates. We also actually saw life sciences stocks, other life sciences stock take a hit as a result of this report. Also, uh, Charles Schwab fell today despite the fact that earnings topped estimates. Retail investors continue to jump in and out of the market. The volatility sparked by geopolitical geopolitical uncertainty was a boon for the company. Uh shares fell by 2.5%. They were up for a portion of the day then fell a little earlier this afternoon, we spoke to Rick Wurster, the president and CEO of Charles Schwab, a little earlier on our program. Uh, he said that the platform, the trading platform saw three and a half times more volume on down days in the market, meaning the clients are buying the dip. Yeah. He said geopolitical risk in the markets. They're more actively trading. He sees more frequent trading. But the the size of the trades are often smaller. And so yeah I listened to that in her interview. Sorry. I listen to that interview. Well thank you for tuning in. I did yeah. And you love it, right? You're like and and and you were taking notes. Oh, that's how you do the interview. Is that what happened? Yeah. Yeah. I mean, you let him off the hook on a couple of questions there. Okay. But other than that, yeah, I was fine. Yeah. Thank you. Thank you for your feedback. I'll get the manager for you. Where were you yesterday, by the way? Me? Mhm. Who's around? Yeah. So you, um. But you didn't you seem. You seem a year wiser from the end than you did yesterday. Was it your birthday yesterday? No. Oh. Hmm. It's a year. It wasn't. No. I'm like Benjamin Button. I get it younger. Katie. Is he like, you got Katie? Is he like, no. No comment. I don't want to. I don't want to blow up his spot. Oh, you and Katie, you stick together. You only got a couple more days. So he's here by guilds at all? I mean, about a little bit about you. Well, there are short term yields up for fourth straight session. Back now up about 13 basis points on the two year yield. Uh, over that stretch here is a lot of people now start to price back in some of the inflationary pressures. And I guess the potential maybe that the fed could raise rates. Obviously there's a pretty direct correlation here between that rise in yields, a sell off in the Treasury market, and what we're seeing with regard to the rebound in oil prices. All right quickly Capital One Financial just crossing the Bloomberg terminal. Let's go to the number of second quarter net revenue folks up 27% year over year 15.9 billion. Net charge offs 3.6 billion. That's exactly what the street was forecasting. Second quarter adjusted EPs $5.81 versus 548 year over year. Uh, and we're looking at the stock. Maybe we can bring it up here just real quickly. I'm going to bring it up here. Uh, I'm looking for it. It is up 1.1%. Uh, I also just want to bring in, uh, super micro here. It looks like they're just providing a bit of a business update. Uh, crossing the wire right now on their revenue for the fourth quarter of their fiscal fourth quarter. The company says it will be at the low end of their previous range of 11 to $12.5 billion. Uh, basically the low end of guidance, gross margin will now be at 15 to 17%. That's versus previous guidance of 8.2 to 8.4%. So basically revenue at the low end of the guidance for gross margin well above what they previously got in the company. Now saying that it's backlog for the fourth quarter, hitting a record with new orders topping 60 billion. Of course, this is uh, effectively a builder of data centers affectively renting out the servers. Uh, for other folks, as we know, of course, ran into some issues in the past with regard to some accounting issues and whether or not it can get itself back on track. You see the knee jerk reaction in the after hours trade up about 6%. Yeah, it's been a volatile stock, to say the least, in recent years. In 2023, up about 250%. It did rise today with along with all the chip stocks. It was up today about 7%. And it's adding to that in the after hours uh up about 6% in the after hours. It's interesting to see this update coming from Super Micro. I mean, they were scheduled to report their earnings, uh, on August 5th. So not too far from now, but, uh, the company making the decision, I guess, to put some good news out there in the market. They did rise today with a lot of the other, uh, sort of chip eye names. But I will note that prior to that, they had closed out six straight days of losses on the stock, which had been their longest streak since March 2025. But as discussed, I mean, you take a look at that after hours rally now higher by more than 11%. And we should point out. Sorry to interrupt. I mean, just in regards to that share performance. Do we talk about go back to that last earnings report, what you did see about a pop in the shares and like a 25% rally that day. But by the time you got to the beginning of June, that began to sell off as a lot of those concerns set back in those shares, uh, heading into today were down, uh, what about 50% since the start of June? Yeah. Yeah, yeah. Right in down 13% year to date. But it doesn't reflect certainly the big pullback that we've seen. I should also point out 19% of the float is short. So there's certainly that negative sentiment continuing. All right folks. But it is up super micro right now up about 13% in the aftermarket.