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13:57
PDT

Canada's tariffs on U.S. goods are set to take effect next week.

Canada U.S.New Hampshire Rhode Island Apple John Ternes U.S. Treasury Oracle Adobe Macy's ECB Bloomberg AAPL PRIVATE

– Apple's new iPhone launch marks John Ternes' first major product as CEO.

– U.S. Treasury will begin extended buybacks of longer-dated bonds.

– Earnings reports from Oracle, Adobe, and Macy's are due.

– Key CPI data will be released on Friday.

tech product launchesinflation datagovernment policy impact

▸ Full transcript

All right, let's look ahead to what we're watching for next week. After the Labor Day holiday on Monday, we skipped a Tuesday, and Canada's retaliatory tariffs on U.S. goods are scheduled to take effect. There are some primary elections in New Hampshire and Rhode Island. And then, of course, on Wednesday, we will see Apple unveiling new iPhones in John Ternes' first major product launch as CEO. Additionally, the U.S. Treasury will begin extended buybacks of longer-dated bonds, and Republicans will open their first-ever national interim convention in Dallas with President Trump. That's a new thing, a midterm national convention. Very new, yes. Earnings from Oracle are due out on Thursday along with Adobe and Macy's. There's an ECB rate decision, U.S. wholesale inflation, and Bloomberg Power Players will be held in New York. Finally, on Friday, we will be waiting for big CPI data, and Bloomberg's remain boss sick will be at Canter Fitzgerald.

Analysis

Next week, key events include Canada's retaliatory tariffs on U.S. goods, primary elections in New Hampshire and Rhode Island, and Apple's unveiling of new iPhones. Additionally, the U.S. Treasury will begin extended buybacks of longer-dated bonds, while major earnings reports from Oracle, Adobe, and Macy's are expected alongside significant economic data releases like CPI and wholesale inflation.

Smart money should note the potential market volatility surrounding the Apple product launch and the implications of the U.S. Treasury's bond buybacks on interest rates. The upcoming CPI data will be crucial for gauging inflation trends, which could influence Federal Reserve policy and market sentiment in the near term.

13:53
PDT

Increased scrutiny on race-based admissions could threaten federal funding for elite institutions.

Yale Stanford Harvard Stuyvesant High School Bronx Science Lowell High School Biden administration DOJ Trump administration The Yale New York San Francisco PRIVATE FEDFUNDS DXY

– The DOJ is expanding its investigations to include elite public high schools.

– Colleges may face financial challenges if international student applications continue to decline.

– The perception of U.S. higher education as a premier destination is diminishing.

– Other countries are becoming more attractive to international students.

education policyinternational student enrollmentregulatory scrutiny

▸ Full transcript

The Yale medical school and other institutions have continued to flout the ban on race-based admissions, facing accusations that threaten millions or even billions of dollars in crucial federal funding. We will see these issues play out in battles to come. Stanford is more about the influence of foreign donors at universities, which we are also seeing the DOJ take a look at at Harvard and elsewhere. Now they're expanding into elite public high schools. They are looking at not just Stuyvesant, but also Bronx Science, also in New York, and Lowell High School in San Francisco—these specialized elite public schools where admission rates can often be similar to the top private schools. The common thread here is knocking these elite schools down a couple of pegs and really focusing on the disciplinary part of making sure that what the Supreme Court had ruled is actually being followed. Liam, thank you so much. I really appreciate your taking the time. Bloomberg Education Policy Reporter Liam Knox joining us from Washington. Still ahead on the close, we're going to get you set up for what you need to watch for over the next week once we get past the Labor Day holiday. This is Bloomberg. As a small business owner, I need my payment process to work seamlessly. Tap to pay on iPhone is simple to use.

Analysis

The Biden administration's scrutiny of race-based admissions in elite schools is intensifying, with potential implications for federal funding. This shift could disrupt the admissions landscape at prestigious institutions, affecting their financial models and diversity initiatives.

Smart money should note that the focus on admissions practices may lead to broader regulatory changes impacting funding for universities reliant on international students. As competition for international applicants grows, institutions may need to adapt their strategies to maintain enrollment and financial stability.

13:51
PDT

International student applications to U.S. colleges are declining.

Harvard MIT Caltech Stanford Trump administration Harmeet Dhillon Stuyvesant High School Japan Germany France Canada That American

– Countries like Japan, Germany, and Canada are becoming more attractive to international students.

– U.S. colleges, especially non-elite ones, may face financial challenges due to reliance on international tuition.

– The perception of U.S. higher education as superior is weakening.

– Policy changes under the Trump administration are impacting international student enrollment.

international student enrollmenthigher education competitionU.S. education policy

▸ Full transcript

That American education, especially higher education, is superior or is perceived to carry a premium? Is that something that will be diminished over time now that this development is forthcoming? Well, I think it already has been. This idea of America as the premier destination, you know, it's obviously, again, places like Harvard, places like MIT, Caltech, Stanford, these are institutions that live in the kind of, the very robust international imagination of opportunity and have a lot of important symbolism that is gonna continue to carry forward. But coming to America as just a general selling point, which a lot of colleges outside of those big brand names have relied on for a very long time to attract international students, that really, the shine there is dulling quite significantly. Lots of students are going to other countries, to Japan, to Germany, to France, to Canada, because it's just a more, it's a less risky prospect. And we'll see if that corrects over time, but right now it certainly seems to be the way things are going. Yeah, the other countries are really making a play for these international students, seeing this as an opportunity. Speaking of the Trump administration, Harmeet Dhillon, who is the Justice Department's civil rights chief, has been very active recently. I know you've written several stories about this, Liam. She is targeting Stuyvesant High School, which is an elite high school, public high school in New York. She's targeting...

Analysis

The perception of American higher education as the premier destination for international students is diminishing, with students increasingly opting for countries like Japan, Germany, and Canada. This shift indicates a potential long-term decline in enrollment for U.S. colleges that rely heavily on international students, particularly those outside of elite institutions like Harvard and MIT.

Smart money should note that the decline in international student applications could significantly impact the financial stability of many U.S. colleges, especially those dependent on full-tuition-paying international students. The changing landscape of global education may lead to increased competition among countries, affecting the attractiveness of U.S. institutions in the long run.

13:49
PDT

41% of parents plan to cover full college costs, up from 37%.

Fidelity SUNY Purchase Bloomberg Liam Knox Trump administration H1B visas The Trump

– International student applications are declining sharply, impacting college budgets.

– Visa issuance delays create uncertainty for colleges regarding international student enrollment.

– Graduate programs are particularly dependent on international students.

– Changes in U.S. visa policies may deter future international applicants.

international student enrollmentU.S. visa policycollege tuition revenueeducation sector financial health

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They have a very deep pool of international applicants that keep enrolling, many of them. It's the ones a little further down on the food chain that will see this bite into their budgets. Now, Liam, I'm curious how much of this emerging trend is related to broader U.S. policy, especially when it comes to letting foreigners into the country. We've definitely seen international graduate enrollment already falling last year, and then also now student visa issuance declining sharply. How much of this is related to this broader environment that we're seeing? It's extremely related. If a student is unlikely to get their visa approved, they're going to be a lot less likely to apply to U.S. colleges. We're seeing a large chunk of colleges have a lot of uncertainty about whether or not the international students they admitted who committed to come to their campuses are actually even going to show up in the fall because the visa issuance has been delayed. They've had to defer their acceptances. And even more than that, the very nature of what the pipeline for international students to U.S. colleges has meant for many, many years is changing. The Trump administration has put new limits on post-graduate work visas, on high price tags of charging; they're proposing to charge more than $100,000 for H1B visas. These are hardships that a lot of international students come even for undergraduate with the idea of staying further down the road and getting on some of these other visas.

Analysis

The decline in international student applications to U.S. colleges is expected to significantly impact enrollment and tuition revenue, particularly for institutions heavily reliant on these students. The tightening of U.S. visa policies and increased costs associated with work visas are contributing to this trend, creating uncertainty for colleges about their incoming international student populations.

Smart money should note that the reliance on international students for tuition revenue is not uniform across institutions, with graduate programs and private colleges being more vulnerable. The changing landscape of visa approvals and costs could lead to a broader financial strain on colleges, potentially affecting domestic students' tuition rates as well.

13:47
PDT

International student applications in the U.S. dropped by 10%.

Bloomberg Liam Knox Scarlett Bloomberg Education Policy So Liam Well Scarlett PRIVATE

– Colleges reliant on international students may face financial strain.

– Graduate and private colleges are particularly vulnerable.

– Domestic students may see tuition increases as a result.

– The decline in applications is the largest in a decade.

education fundinginternational student trends

▸ Full transcript

That is the largest decline in at least a decade. Joining us now for more is Bloomberg Education Policy reporter Liam Knox in Washington. So Liam, the drop in international student applications is a clear sign that there will be a similar drop in enrollment. Just how reliant is the U.S. college business model on international students? Well Scarlett, it depends on the college. There are colleges where international enrollment makes up anywhere from 10 to even 40 or 50 percent of the student body. It also depends on the program. Graduate schools are a lot more dependent on international students. A lot of private colleges are a lot more dependent. But over the past few decades, the sector as a whole has become extremely dependent on international students. Even if they don't make up a huge portion of the student bodies, they often make up a very sizable chunk of students who pay full tuition. They almost always pay full freight. And that kind of helps offset tuition costs for other students. So when you're looking at an economic situation where lots of colleges are struggling right now anyways, that loss in international students, 10 percent, is a huge decline. And domestic students as well might see that affect their tuition tax. Which specific kinds of schools are most at risk? Because the decline in apps from international students was not evenly distributed. No, and schools that have been really reliant on, again, on graduate programs, on master's programs, on science and engineering programs.

Analysis

The U.S. college business model faces significant challenges as international student applications decline by 10%, marking the largest drop in at least a decade. This decline is particularly concerning for colleges heavily reliant on international students for tuition revenue, especially in graduate and specialized programs.

Smart money should note that the economic pressures on colleges may lead to increased tuition costs for domestic students as institutions seek to offset revenue losses. The uneven distribution of this decline suggests that certain colleges, particularly those with a high dependency on international enrollments, are at greater risk of financial instability.

13:45
PDT

41% of parents plan to cover entire college costs, up from 37%.

SUNY Purchase Fidelity BFA FAFSA TAP

– Students are increasingly aware of financial management at a young age.

– Parents are willing to delay retirement to fund education.

– Community colleges are seen as viable alternatives to four-year institutions.

– High yield savings accounts are becoming a topic of discussion among students.

education financingfinancial literacy

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But you do the best you can. Are you planning to pay for graduate school for these girls as well? I'm hoping to. I'd like them to get through debt-free and start their life and their career without any loans if it's anyway possible to do that. We're aware that Purchase has an excellent program. And because he wanted to go for a BFA, we were acutely aware of what the return on our investment might be. Both of us work in the arts, so we have a pretty clear picture of how hard it is to make a living and what it takes. We've been saving for a while. We have an education savings program and the balance we're paying for. Has that affected your retirement plan? We're never going to retire. You want that? That's madness. Yeah, we'll still be 90 when we retire. So, no, I mean, this was one of the factors. When we decided to have a kid, we were like, well, if we do this, we want to send him to college and we both work in the arts. So this is probably going to be a long haul situation. Hopefully before we're 80, hopefully before we're 70, we'll find out. A big thank you to all those students and parents who took the time to speak with us. What I was so impressed by, Christine, was that these were 18-year-old kids talking about high yield savings accounts. I know. I think I knew any of that at age 18. I barely knew how to do my own laundry. I also went away to school, and I did not know how to do my own laundry. And now you have college-age kids talking about complicated savings and also just kind of.

Analysis

Parents are increasingly prioritizing debt-free college education for their children, with a notable focus on the return on investment from programs like the BFA at SUNY Purchase. This trend reflects a growing awareness of financial planning among younger generations, as evidenced by students discussing high-yield savings accounts at 18 years old.

The shift towards funding education without loans indicates a potential change in consumer behavior, as families are willing to sacrifice retirement plans to ensure their children graduate without debt. This could lead to increased demand for educational savings programs and financial planning services tailored to families with college-bound students.

13:42
PDT

Students are increasingly seeking alternative funding methods for college.

SUNY Purchase Fidelity FAFSA TAP

– Community colleges are viewed as a practical first step for many students.

– Financial aid and part-time work are critical for managing college expenses.

– Low-income students are prioritizing more affordable career paths.

– The trend of fundraising for education may grow among students.

education financingstudent debtcommunity college

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I also put on my own fundraising show. I produced my own show to raise money to come to college. So yeah. How much did you raise from that? About $3,500. Is this something you're going to be doing regularly, you think? Yeah, I'm planning actually on doing it every year in my hometown since it was so successful. So it kind of helps me build my own scholarship fund a little bit. Community college is definitely, I think, a really good stepping stone for students who don't know what they want to do and don't want to spend all that money. I think we're always pushed to go to a four-year first, but sometimes it's better to go to a community college, get all your gen eds out of the way, and then transfer to a four-year institution. I definitely thought about what I want to study. I knew that I have a love for art and love for sculpture, but I just know it wasn't feasibly possible for me to do that as a career since I am low-income. So that's why I chose political science and law and justice because I could go down that law school track. Originally it was like $30,000 a year. I got it down to like $1,500. It took a lot of time, financial aid, and working at the same time. It was very tough. I was being a burden to my parents, being like, 'Oh, we gotta do this. Oh, we gotta do this with a bank account. Oh, due to savings and all of that.' And that was definitely very difficult to do and very stressful, but I managed to do it, you know. Now that you're in school, there's a lot of expenses that are coming up.

Analysis

A student successfully raised $3,500 through a fundraising show to support their college expenses, highlighting the financial challenges faced by low-income students. The shift towards community colleges as a viable option for students uncertain about their career paths indicates a growing trend in higher education financing strategies.

13:40
PDT

41% of parents plan to cover full college costs, up from 37%.

Fidelity SUNY Purchase FAFSA TAP SUNY RA Jones Road David Garay PRIVATE

– First-generation students are increasingly utilizing financial aid.

– Rising college costs are influencing enrollment decisions.

– Students are prioritizing schools with lower debt outcomes.

– The trend towards public higher education is growing.

higher education costsstudent debtfinancial aid

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And I looked down, I saw Jones Road, and he said, I said, Jones Road beauty. He said, I like it. And that's how it became Jones Road. Bringing you up to the minute news, whenever and wherever it happens, I'm David Garay in Aspen, Colorado. And this is Bloomberg. One of the clearest signs of inflation in recent years is the cost of attending college going up. A new survey from Fidelity shows that 41 percent of parents plan to cover the entire cost of their students' college bill. That's up from 37 percent the last time the survey was conducted in 2024. And that's largely to give their student the advantage of graduating without too much debt. When I went to visit the SUNY Purchase campus recently, I caught up with both students and parents to better understand how they're managing the rising expenses. Take a listen. How much did you and your parents, your family discuss finances before you made the decision to come to Purchase? We had to discuss it a lot honestly just because I'm a first-generation student. I get free housing being an RA. So because of that, now I don't have to pay for anything in school at all with FAFSA and TAP. Did you have to take out any loans to attend school? For my first year I did, but once I became an RA I didn't have to take out any more loans, so now I've been paying them back. I'm fortunate enough that my parents were willing to take out loans.

Analysis

The rising cost of college education continues to be a significant concern, with a Fidelity survey revealing that 41% of parents plan to cover their students' entire college expenses, up from 37% in 2024. This trend reflects a growing emphasis on minimizing student debt as families navigate the financial landscape of higher education.

A notable insight is the increasing reliance on financial aid programs like FAFSA and TAP, which are helping first-generation students manage costs effectively. This shift indicates a potential change in the demographics of college attendees, as more families prioritize affordability and financial planning in their education choices.

13:36
PDT

US refiners are operating at 103.5% capacity, limiting additional crude oil output.

SUNY Purchase Michael Stuyper Stanley Tucci Josh Hartnett Edie Falco Ving Rhames Parker Posey SUNY And Christine State University New York

– Families are increasingly considering public higher education due to rising costs.

– SUNY Purchase maintains flat tuition, attracting more students.

– Student debt levels are a significant concern for families when choosing colleges.

– Notable alumni from SUNY Purchase enhance its appeal, particularly in the arts.

education affordabilitystudent debtpublic vs private education

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Students for a life beyond their four-year degree. Some of that is about career training. Some of that is about just getting more engaged and more sort of energized as citizens. It's a wonderful thing to think four years ahead, but it's hard to give people concrete answers. I think a lot of students learn about themselves through the process of college. We are encouraging that and we want that to happen. And for most of the students, that turns out really, really well for them in their careers. And that was my conversation with SUNY Purchase, college president Michael Stuyper, that was on their move-in day. And Christine, I was trying to explain to you, SUNY stands for State University of New York, it's a public school. And SUNY Purchase is a little different than other schools in the SUNY system because they have a really notable fine arts, performing visual, and music program. They have a lot of famous alums. You've heard of Stanley Tucci, Josh Hartnett, Edie Falco, Ving Rhames, Parker Posey. They all went to SUNY Purchase. Because it's so close to the city, a lot of kids like to go there, especially those from out of state who want to break into the acting field, for instance. Yeah, yeah, yeah. But I suppose it makes sense then that a lot of these people go there, specifically for this, I mean, I guess, you know, if the college builds an identity around a program, then, you know, it just kind of becomes a self-perpetuating cycle. Absolutely, I think some of the actors who went to SUNY Purchase have even talked about this SUNY Purchase mafia that kind of exists because there's a little bit of a network there that, you know, they can watch out for each other. There you go. All right, we're going to continue.

Analysis

The conversation highlighted the rising costs of education and the increasing consideration of public higher education among families, particularly within the SUNY system. With tuition kept relatively flat, SUNY Purchase is seeing a year-over-year increase in enrollment as families prioritize affordability and outcomes when choosing colleges.

Smart money should note that the emphasis on affordability and outcomes may shift demand towards public institutions, potentially impacting private colleges. Additionally, the focus on student debt levels suggests that future enrollment trends could favor institutions that offer lower debt burdens, influencing the competitive landscape in higher education.

13:34
PDT

Families are prioritizing affordability in college selection.

SUNY Purchase SUNY

– Average debt for SUNY Purchase graduates is under $25,000.

– Increased enrollment in public higher education institutions.

– Students are considering further education costs alongside undergraduate debt.

– Parents are evaluating outcomes and debt levels more critically.

higher education affordabilitystudent debt concerns

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Yeah, definitely it continues to be a challenge. At SUNY, we've kept tuition pretty flat for quite a few years, but more and more parents are looking more widely at different campus options. You know, one of the things that's fantastic about American higher education is there are so many different options, so many different choices, public, private, two-year schools, four-year schools throughout the nation. And, you know, it used to be just about the most selective, the best and now I'm seeing more parents consider different factors that play into that along with, you know, academic excellence, what is the cost, what kind of debt will my student be leaving with, what are the outcomes that we're expecting after that four-year degree, and how can we support students while they're doing their college degree? I see all of that being emphasized in the last few years for sure. I think a part of it that families need to consider more is how much debt their students will be leaving college with. And I think that is a factor that people need to consider because a lot of students today are planning not only on just a four-year degree, but on further degrees, whether it's medicine or law or graduate school or something of that sort. So thinking about how much debt you're leaving your four-year degree with, and here at SUNY Purchase, it's typically less than $25,000. You want to keep that in mind because that will impact how well you could take on further costs for tuition in a degree beyond the undergraduate degree. What do you think will be?

Analysis

Rising tuition costs are prompting families to explore a wider range of college options, with a focus on affordability and potential debt. At SUNY Purchase, the average debt upon graduation is less than $25,000, which is a critical factor for students considering further education.

The shift towards public higher education reflects a growing concern over the financial implications of a college degree. Families are increasingly weighing the cost of education against expected outcomes, indicating a potential trend towards more pragmatic choices in higher education.

13:32
PDT

Diesel prices hit a record high of $5.85 per gallon.

Bloomberg Will Kubsansky Iran Russia Ukraine SUNY Purchase Michael Stiper SUNY

– Geopolitical tensions are significantly impacting fuel prices.

– U.S. diesel stockpiles are at their lowest levels ever for this time of year.

– Higher diesel costs are a psychological indicator of inflation.

– Public higher education is seeing increased enrollment due to rising costs.

geopolitical riskhigher education costs

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A wide-ranging conversation about the challenges facing higher education. Right now, some of the biggest issues facing higher education relate to the value proposition that students and their families are really considering when they're choosing a college and even choosing to go to college at all. Choosing to go to college at all comes up a lot. A lot of families, students in particular, are saying, is a four-year college degree worth it? How do you talk them through that? Sure. For the vast majority of students, it is very worthwhile for them to complete a four-year degree. Now, a key word there is complete that four-year degree because it's essential when students start college that they finish college. Students with a degree in hand perform better in the job market, live longer, healthier lives, and are engaged citizens. For those reasons, we think it's a great choice to go to college. But again, the most important thing to do is to go to a college that fits you and a college that you will complete. Also, a big consideration is a college that you can afford. How are you seeing rising costs impact your campus, your students? Well, what I see is that more and more parents and families are considering public higher education. We see across the SUNY system increases in enrollment year over year. I think that's indicative of people deciding that cost is a big consideration. I see more students and their families talking about the cost and how SUNY Purchase, which has a very, very affordable...

Analysis

U.S. diesel prices have reached a record high of $5.85 per gallon, driven by geopolitical tensions, particularly the Iran War and the Russia-Ukraine conflict. This surge in diesel costs, while not directly impacting gasoline prices at the pump, serves as a psychological indicator of inflation affecting the broader economy.

The low domestic stockpiles of diesel, the lowest on record for this time of year, coupled with high demand, suggest that prices may remain elevated. Investors should note that the interplay of geopolitical disruptions and domestic supply constraints could lead to sustained inflationary pressures in the energy sector.

13:26
PDT

U.S. diesel prices hit record highs.

U.S.Iran Russia Ukraine Strait of Hormuz OK The Strait The Iran War Ukraine War East Coast The East Coast

– Geopolitical tensions are a significant driver.

– Domestic diesel stockpiles are at historic lows.

– The Russia-Ukraine conflict continues to affect supply.

– Inflationary pressures may persist due to high diesel costs.

geopolitical riskenergy pricesinflation

▸ Full transcript

Other times, if you're sort of like filling up for heavy manufacturing, you might go to a terminal. The pain from these record high prices, while it's really visible and psychologically impactful, is not necessarily going to be felt at the gas stations. It's going to be felt at terminals and loading facilities. Yes, and that's exactly what it is because it's hitting the American consumer very directly. Now, how much of this is a direct consequence of what we're seeing in terms of U.S.-Iran tensions and just the geopolitical tensions generally around the Strait of Hormuz? The Strait of Hormuz is a huge part of it. The Iran War has obviously driven up prices, but the diesel crisis is also in huge part because of the Russia-Ukraine War. Ukraine has taken to attacking Russian refineries regularly. They've paused a little bit in recent days, but it's been a steady stream of attacks for months. Russia is one of the world's key exporters of diesel fuel. They have banned exports through at least the end of September. As long as there are disruptions in Russia and in the Strait of Hormuz, diesel prices are going to be high, and those two obviously magnify each other. OK, so that was the spotlight on stockpiles. What do domestic stockpiles of diesel look like right now? They're low. U.S. stockpiles have never been this low going into the fall ever, with data going back to the 1980s. On the East Coast, there's the lowest period. The East Coast is particularly important here because that's where most of the homes in the U.S.

Analysis

U.S. diesel prices have surged to record highs, driven by geopolitical tensions, particularly the U.S.-Iran situation and the ongoing Russia-Ukraine conflict. Domestic diesel stockpiles are at their lowest levels ever for this time of year, indicating potential supply constraints ahead.

The interplay between geopolitical events and low domestic stockpiles suggests that diesel prices may remain elevated, impacting transportation costs and inflation. Investors should monitor these developments closely, as sustained high diesel prices could ripple through various sectors reliant on transportation and manufacturing.

13:24
PDT

Diesel prices hit a record high of $5.85 per gallon.

Bloomberg Will Kubsansky U.S.diesel gasoline Bloomberg Insight Bloomberg Power Players New PRIVATE

– Gasoline prices are at their highest since September.

– Higher diesel costs impact various sectors, including agriculture and manufacturing.

– Inflationary pressures may increase as transportation costs rise.

– Consumers may face higher prices as businesses pass on costs.

inflationary pressuresenergy costs

▸ Full transcript

From the boardroom to the locker room, a place for bold ideas, powerful insights, and high-impact conversations. Every sport grounded in Bloomberg Insight. Join us, Bloomberg Power Players New York, September 10th, 2026. Prices at the pump are getting a whole lot higher. U.S. diesel has risen to a record while gas is at its highest level since September. And we are heading into a long holiday weekend, so this conversation is very relevant. We're going to have this chat with Bloomberg's Will Kubsansky, who covers gasoline, diesel, and jet fuel markets. Now, okay, so we were just talking during the break, right? Diesel hit a record $5.85 a gallon, but is that really relevant for a lot of American households given the decreasing prevalence of diesel as a fuel for cars these days? Yeah, so not that many Americans drive a diesel car, but diesel is incredibly relevant to the economy. It is often called sort of the workhorse of the global economy, so it's everything from power to heating to tractors on farms, to sort of heavy manufacturing equipment, to tractor trailers transporting goods. Higher diesel costs there mean that...

Analysis

U.S. diesel prices have surged to a record $5.85 per gallon, while gasoline is at its highest level since September, raising concerns about the economic impact on households. Diesel, often referred to as the 'workhorse of the global economy,' affects various sectors, from agriculture to manufacturing, indicating broader inflationary pressures ahead.

The rising diesel costs could signal increased transportation and production expenses, which may ultimately be passed on to consumers. Smart money should monitor sectors reliant on diesel, as sustained high prices could lead to margin compression and affect overall economic growth.

13:20
PDT

S&P 500, Dow, and NASDAQ all down slightly.

AMC Robin Hood Vlad Tenev FICO Fair Isaac Bill Pulte Lululemon Heidi O'Neill AAA Junova Payback Hilton GOOGL

– Consumer discretionary stocks were the biggest decliners.

– Airfare up 27% year-over-year; hotel prices also rising.

– Travelers face record-high gasoline prices.

– Services like Junova and Payback offer automated fare monitoring.

consumer spendingtravel costsinterest rates

▸ Full transcript

We love these new services we've been testing out on our staff. Junova and Payback, P-A-I-B-A-C-K, use AI to leverage it in a way that will search these fares for you. If the fare drops, you've registered your flights with these programs, and they will automatically take care of getting you that flight credit. It does take a percentage of what it gets you back, but then you're not having to monitor it yourself. It's kind of set it and forget it. So it just depends on convenience level and that factor for you. If you want to just set it and forget it, try one of those services. We write about them on thepointsky.com. If you want to just do it yourself, set those Google alerts and monitor the price yourself. Becky, is there ever an instance when you should be booking the cheapest fare possible, the basic economy where there's no flexibility when it comes to refunds, rescheduling, or accumulating points for your loyalty program? Yeah, we'd like to say try and avoid it if you can, just because of the restrictions and the foot. If you want a seat assignment, you have to pay on top of that, which is even more expensive than if you just booked the main economy price to begin with. That seems to be where the airlines are getting customers; with that cheaper price comes all of the nickel and diming and add-ons that no one likes to look at when they're trying to travel. The nickel and diming that makes people really, really upset at the airport.

Analysis

Consumer discretionary stocks declined following a stronger-than-expected jobs report, raising concerns about potential interest rate hikes by the Federal Reserve. The travel sector is experiencing rising costs, with airfare and hotel prices up significantly, impacting consumer behavior and travel plans.

13:18
PDT

Holiday lodging prices are up year over year.

Hilton Marriott AAA Bill Pulte Heidi O'Neill Lululemon Robin Hood AMC Vlad Tenev FICO The Hilton

– Last-minute deals can provide savings for travelers.

– Booking directly with hotels may offer better rates.

– Loyalty programs can lead to significant discounts.

– Travelers should monitor prices to avoid overpaying.

consumer spendingtravel trendsloyalty programs

▸ Full transcript

And you're talking about hotels. What's been the landscape over there? We have seen prices climbing sharply around these holiday periods, but apparently sometimes you can get last minute deals. What's been the trend this holiday season for hotel prices? So the trend is yes, that holiday lodging is up year over year, but depending on when you want to go, you could find a last minute deal. I mean that can sometimes be the key to waiting to the last minute. So procrastinators rejoice. You might actually save some money and still get to go on a great trip as well. But I like looking at some of the online search engines to see kind of where prices are trending. And then what I'll do is I'll go to each individual website for the hotels that I'm interested in also. Because sometimes you can save money just by booking direct, having that loyalty program. The Hilton, Marriott, they're all giving discounts to loyalty members. If you have a credit card with one of those, also if you book an awards day, some brands will give you the fourth night free or fifth night free. So there really are some great savings to be had, you know, especially when you're looking at points and miles and different ways that you can leverage some of these programs. Yeah, you just gotta do the homework. I don't know about you, but I like personally to book in advance so I have something to look forward to in the coming weeks and months. And one concern that I have about booking too far in advance is if those prices do drop later on. How do you guard against that? How do you protect?

Analysis

Hotel prices are climbing sharply year over year during holiday periods, but last-minute deals may still be available for procrastinators. Booking directly with hotels can yield additional savings through loyalty programs and promotional offers, making it essential for travelers to do their homework before booking.

13:16
PDT

AMC's CEO condemns Robinhood's token trading.

AMC Adam Aaron Robinhood Vlad Tenev Federal Housing Finance Agency Bill Pulte Lululemon Heidi O'Neill AAA Labor Day CL=F

– International airfare increases significantly ahead of Labor Day.

– High fuel prices may deter road trips.

– Demand for air travel remains strong despite rising costs.

– Tokenized securities face scrutiny and regulatory challenges.

travel coststokenized securitiesconsumer sentiment

▸ Full transcript

And I know that Labor Day weekend is a difficult weekend to plan for international trips because you're probably only going to take a few days off. But what does it look like to book international fares for this weekend and maybe for the rest of the year into the holiday season? Yeah, so international fares are up about 12 percent for this particular weekend. And overall, you know, airfare, according to last year, is up 27 percent. So I would say when you're looking, if you still want to get away this weekend, if it was me, I'd be on a plane tomorrow and I would stay through Wednesday or Thursday. Think about traveling on these off-peak days. Don't travel today. Try not to travel on Monday. And really give yourself an opportunity to experience your destination, but also get on those non-peak times with some of these airlines. Well, my jam, personally, is staying on the road and going on a road trip instead for these three-day weekends. But gas is probably an issue, especially this year. We've seen fuel prices or just oil prices generally climbing above thresholds that usually make consumers worried. What have you seen in terms of the impact of that in terms of people's appetite in general to go on the road this summer? Yeah. So maybe they're not traveling as far as they had planned. I mean, we personally took a long weekend and went to Boston and I could not believe between the tolls and the gas prices how much that cost. And it was almost as much as if we had just flown. So what I will say is, you know, think about where you want to go and calculate the price.

Analysis

AMC's CEO Adam Aaron criticized Robinhood for trading a tokenized version of AMC shares without the company's involvement, calling it 'contemptible and outrageous.' This dispute echoes past tensions between AMC and Robinhood during the meme stock frenzy of early 2021, raising questions about the future of tokenized securities and their regulatory implications.

International airfare has surged 12% for Labor Day weekend and 27% year-over-year, indicating a strong demand despite rising costs. Consumers may be reconsidering travel plans due to high fuel prices, which could dampen road trip enthusiasm and shift preferences back to air travel during off-peak times.

13:14
PDT

AMC and Robinhood are in a public dispute over tokenized shares.

AMC Robinhood Vlad Tenev Fair Isaac FICO Federal Housing Finance Agency Bill Pulte Lululemon Heidi O'Neill AAA CEO Director Bill Pulte FEDFUNDS

– FICO shares dropped over 16% due to criticism of credit score costs.

– Lululemon's stock fell 17% after cutting its full-year outlook.

– Travel costs are rising significantly ahead of Labor Day weekend.

– Average gasoline prices are at a record high for September.

consumer credit risktravel costsdiscretionary spending

▸ Full transcript

There is a bit of a tiff between the AMC CEO and Robinhood's Vlad Tenev about the AMC tokenized shares that are trading on the Robinhood platform. So a little bit of an X-war, shall we say, happening over there. Take a look at FICO as well. Fair Isaac, as we know it, has dropped massively, down more than 16% at the moment. This is because we heard from Federal Housing Finance Agency Director Bill Pulte renewing his longstanding criticism of the costs of consumer credit scores. Finally, Lululemon is facing a lot of challenges, with the stock reflecting it down 17% at the moment. A big job awaits CEO Heidi O'Neill, who is set to take over next week, with many questions about the future of the company after it cut its full-year outlook for the second straight quarter. Our top story this hour is closing out the summer travel season on a pricey note. Travelers are set to face higher costs and heavier traffic this Labor Day weekend, according to AAA data. Average domestic airfare is up 2% compared to last year, while domestic hotel bookings are up 9%. This comes as travelers face higher costs at the pump, with average gasoline prices reaching the highest level ever for September, while diesel prices climb to a record high. Becky Blaine, senior newsletter editor at The Points Guide, joins us now. Okay, I'm breathless after saying all that because that was a lot of stuff seeing higher prices. Is there anything that's cheaper when it comes to the travel sector this Labor Day year?

Analysis

AMC's CEO and Robinhood's Vlad Tenev are in a dispute over tokenized shares of AMC trading on Robinhood's platform, highlighting ongoing tensions in the market. Meanwhile, Fair Isaac (FICO) shares have plummeted over 16% following renewed criticism from the Federal Housing Finance Agency regarding consumer credit score costs, while Lululemon faces challenges with a 17% drop after cutting its full-year outlook for the second consecutive quarter.

Smart money should note the significant volatility in consumer discretionary stocks, particularly in light of rising costs impacting travel and consumer spending. The ongoing scrutiny of credit scoring systems could lead to regulatory changes that may affect FICO's business model, while Lululemon's leadership transition raises questions about its strategic direction amidst declining performance.

13:12
PDT

S&P 500, Dow, and NASDAQ all down 0.4%.

S&P 500 Dow NASDAQ VIX Federal Reserve two-year note dollar yen Wall Street Week Scarlett Foo Christina Kino Labor Day S&P 500 NASDAQ DXY FEDFUNDS

– Consumer discretionary stocks led the decline.

– Stronger jobs report raises Fed rate hike concerns.

– Two-year note yield increased to 4.37%.

– VIX remains low at 14.5.

Fed policyinterest ratesconsumer discretionary sector

▸ Full transcript

The future is watching. It can take three months to produce the same thing. The return on investment is still pretty compelling. To say we're struggling probably raises a question of return on investment and what application you're using. It's also been able to be trained to be used better in them. Join me each week on Wall Street Week for stories of capitalism from business, markets, economics, tech, and climate. More than what you need to know, it's what you need to think about. The countdown is on. Everything you need to get the edge at the end of the market day. This is the Close. Welcome back to the Close. I'm Scarlett Foo. And I'm Christina Kino. All right. Friday before Labor Day, let's show you how markets close out this day. It was not holiday-shortened, but it felt like it. The S&P 500 lost four-tenths of one percent in line with the Dow and the NASDAQ. Consumer discretionary stocks were the big decliners after a stronger-than-expected jobs report raised concern that the Fed may need to raise interest rates later this month. The VIX moved up marginally, still at 14.5, well below its historical average. The two-year note was the big mover, with the yield going up three basis points to 4.37 percent. At one point, it was at 4.42 percent. The dollar recouped some of its losses versus the yen yesterday.

Analysis

The S&P 500, Dow, and NASDAQ all declined by 0.4% following a stronger-than-expected jobs report, raising concerns about potential interest rate hikes by the Federal Reserve. Consumer discretionary stocks were the primary decliners, while the VIX remained low at 14.5, indicating subdued market volatility.

Smart money should note the upward movement in the two-year note yield, which rose to 4.37%, suggesting that bond markets are pricing in a more aggressive Fed stance. Additionally, the dollar's recovery against the yen could signal shifts in currency dynamics as interest rate expectations evolve.

13:07
PDT

AMC's CEO criticized Robinhood for trading a token without AMC's involvement.

AMC Robinhood Adam Aaron GME MCCO CEO US GME

– The dispute recalls the meme stock frenzy of early 2021.

– Robinhood's tokenized securities do not provide legal rights to holders.

– Regulatory scrutiny on tokenized assets may increase.

– Market dynamics around tokenization could evolve significantly.

tokenizationregulatory scrutiny

▸ Full transcript

AMC and Robinhood are kind of sniping at each other right now because apparently AMC's CEO Adam Aaron discovered a token bearing the theater chain's name was trading on Robinhood's blockchain. AMC said, wait a minute, we had no involvement in creating this product. He said it was contemptible and outrageous and demanded that Robinhood stop trading it. This also harkens back to the beginning of 2021 during the meme frenzy with what was going on with Robinhood and when they temporarily restricted the purchases of AMC and a lot of those other stocks, when you think of GME, obviously another one that was really popular at the time. So a lot of this back and forth is also just about the tokenization and then people wanting to trade 24-7 and kind of what this means going forward for something like that. I would imagine this is going to probably continue with the back and forth. Absolutely. Yeah, I mean it's interesting though because, okay, so according to Robinhood's website, right? It's on-chain stock tokens, which is what the MCCO is imputing. They're tokenized debt securities that provide economic exposure to the underlying stocks but do not give holders legal or beneficial rights in those companies and they are not registered under US securities laws. So I can see why the AMC CEO is thinking this looks a little contentious, shall we say. But yeah. Yeah, exactly. So, but yeah, I mean, you know, I guess it's just. In your reporting, do you talk to a lot of people who say that they want tokenized securities? Not in everyday people that you meet on the street. Definitely not. A lot of companies out there who...

Analysis

AMC and Robinhood are in a contentious dispute over a token bearing AMC's name that was found trading on Robinhood's blockchain, with AMC's CEO demanding its removal. This situation echoes the events of early 2021 during the meme stock frenzy, highlighting ongoing tensions in the evolving landscape of tokenized securities.

Smart money should note that the regulatory implications of tokenized debt securities, which do not confer legal rights to holders, could lead to increased scrutiny from regulators. The back-and-forth between AMC and Robinhood may signal broader market implications for how companies engage with emerging trading technologies and their potential legal ramifications.

13:05
PDT

Guidewire (GWRE) down nearly 20%, largest drop on record.

Guidewire GWRE FICO Equifax Edison New York Stock Exchange Bill Polte PRIVATE

– FICO and Equifax also faced significant declines.

– More advancing stocks than declining on NYSE despite index losses.

– Tech stocks are skewing major index movements.

– Underlying market strength exists despite headline declines.

market volatilitycredit risksector performance

▸ Full transcript

Exactly, that's what I like to do. And then Guidewire is another one. GWRE, this is a cloud-based platform, specifically for property and casualty insurance companies. So this is actually the biggest drop on record. It was down almost 20%, so that's going back to data since 2012, and it did unfortunately, it was more conservative on some of those guidance that it had. It's technically in the mid-cap 400 index, only has a market cap of about 13 billion. I like that's going outside the S&P 500 index. Yeah, so just looking beyond just the major indexes, what some of the pain that we saw today beyond that. And then obviously we talked about FICO, Equifax too, and Bill Polte. Obviously the criticism there is what it's tied to. Everybody so focused on those types of credit scores and with FICO. But not only was FICO one of the worst today, but also on a weekly basis too, as well as Edison because of those things we were talking about yesterday when it comes to the ties of all of that. And then also obviously the pressure that they had with the wildlife liability fears with Edison. All right. In terms of decliners on the New York Stock Exchange, I have a function here on the Bloomberg. We still have more advances than decliners here when it comes to the New York Stock Exchange. More than one stock gaining for everyone that's down is 1.07 for those who are keeping track, which is interesting given where the major indexes are. But again, that goes back to the idea of a couple of big-name tech stocks kind of influencing the overall movement of the major indexes. Yeah. And then also looking at whenever the biggest point gainers and decliners, not just percent for the major indexes. Because that's when you see a lot of things skewed there for those major mag7 or.

Analysis

Guidewire (GWRE) experienced its largest drop on record, falling nearly 20% due to conservative guidance, while FICO and Equifax also faced significant declines amid scrutiny over credit scores. Despite the major indexes showing declines, the New York Stock Exchange had more advancing stocks than declining ones, indicating underlying strength in certain sectors.

The divergence between major tech stocks influencing index movements and the broader market's resilience suggests a potential shift in investor sentiment. Smart money should note the mixed signals, particularly the pressure on credit-related companies, which may indicate broader economic concerns despite some sectors holding up better than expected.

13:03
PDT

S&P 500 and NASDAQ 100 had strong performance, with notable gains in specific stocks.

S&P 500 NASDAQ 100 Robinhood Lululemon Nike Under Armour Heidi O'Neill AMC IOT

– Robinhood showed significant weekly gains, indicating renewed investor interest.

– Lululemon's stock dropped 18%, highlighting challenges in the leisure wear market.

– Leadership changes at Lululemon may affect investor confidence.

– Divergence in retail performance suggests sector-specific risks.

retail performancetech sector gainsleadership changes

▸ Full transcript

Because this is obviously one of the best performers, the best actually, in the S&P 500 this year. It's up more than 600%. And so this was the top, the leaderboard of the S&P 500 as well as the NASDAQ 100 here, up close to, if you're thinking about this, actually 12% today, so best day since August 13th, so not that long ago. But that's also important because it's one of the best weekly gainers of this week, but actually one of the best ones was Robinhood's gain this week. We talked about Robinhood yesterday and the rise that it's had. Talk a little bit more about that at AMC later. But that's one of the ones we've seen here that had pretty strong gains. I want to go back to Samsara for a moment because did you notice the ticker for Samsara? No, what is it? IOT, Internet of Things. Remember when that was a big thing? Not so long ago? That was the buzzword. Yeah, that everyone wanted to talk about there. And then became smart appliances, then we moved on. And then also we did talk yesterday after the bell about Lululemon. So I wanted to do an update on that. Lululemon's the ticker on there. So it is down 18%, so it's the worst day since September of 2025. So almost the worst day of the year here, roughly, if it was tomorrow. And those shares are down more than 50%. But also, Heidi O'Neill's going to take the helm officially for the company soon. So it is tough when you're thinking about this as leisure wear, being a little bit more expensive than its competitors. But it was a little mixed when you looked at some of the competitors here, like Nike versus Under Armour, how they kind of moved in different directions there. But they didn't have quite as much of a pain. So really it was kind of more centered toward Lululemon and not as spilling over to some of the other retailers that it competes with at times.

Analysis

The S&P 500 and NASDAQ 100 saw significant gains, with one stock up over 600% this year and achieving its best day since August 13th. Robinhood also experienced strong gains this week, while Lululemon faced a sharp decline of 18%, marking its worst day since September 2025, amid leadership changes and competitive pressures.

Smart money should note the divergence in performance among retail stocks, particularly Lululemon's struggles compared to its competitors like Nike and Under Armour. This indicates potential sector-specific vulnerabilities that could impact investment strategies moving forward, especially in the leisure wear segment where pricing power is under scrutiny.

13:01
PDT

S&P 500 down 0.4%, Dow down 0.5%, Nasdaq down 0.3%.

S&P 500 Dow Nasdaq Russell 2000 information technology industrial sector Doja Bank CPI US New York Stock Exchange S&P 500

– Russell 2000 small cap index up 0.25%.

– Tech sector led gains, albeit modestly.

– Market skepticism persists, especially in discretionary trading.

– Interest rate sensitivity varies across market segments.

market volatilityinterest rate sensitivitysector performance

▸ Full transcript

Especially once we get past the CPI report next Friday. Doja Bank always puts out weekly data on this. We'll probably have another update after the bell, when you're looking at discretionary versus systematic, systematic being more the momentum, computer type trading versus discretionary, but still you're seeing some, like basically skepticism on the discretionary side, which still leaves them money to put more of that to work in the market. So it's defying, still prevailing here. All right, you're hearing the applause there at the New York Stock Exchange and over at the Nasdaq as we get ready to close out today's trading session. We are looking at declines here for the big US big cap indexes, the S&P 500, the Dow and the Nasdaq, the S&P losing about four tenths of one percent, the Dow off by half of one percent, the Nasdaq down by three tenths of one percent, and interestingly just the Russell 2000 of small cap stocks up by a quarter of one percent. These guys are much more sensitive to interest rate movements than the big cap stocks are, you would think given the good economic news means bad news for the market that they would be down even more but the riskier corners of the market still kind of holding up better than you'd expect especially even those non-profitable tech stocks not down as much as you'd think right now guys all right I'm gonna break it down by sectors today in terms of the winners and losers I mean not a lot of winners really I mean that we have info tech of course leading those gains here up to 10th of 1% industrial is also near the top of that leader brought up four tenths of one percent. Everything else is either flat or down at the moment. You really get the sense that.

Analysis

US big cap indexes declined today, with the S&P 500 down 0.4%, the Dow off 0.5%, and the Nasdaq down 0.3%. Interestingly, the Russell 2000 small cap index rose 0.25%, indicating resilience in riskier market segments despite broader market weakness.

The divergence in performance suggests that small caps may be more insulated from interest rate concerns than previously thought. Additionally, the tech sector showed slight gains, hinting at underlying strength in certain areas despite overall market skepticism.

12:59
PDT

S&P 500 is retracting gains due to jobs report.

Ayako Yoshioca Wealth Enhancement Group Jess Menton Bloomberg News RBC Federal Reserve S&P 500 VIX CPI Jackson Hole Aya Yoshioca Los Angeles PRIVATE

– VIX remains low, indicating cautious investor sentiment.

– Increased bond issuance from tech companies noted.

– 10-year Treasury yield approaching 5% could attract buyers.

– Upcoming CPI data may influence market direction.

Fed policybond market dynamicsinflation expectations

▸ Full transcript

Is this just a one-time adjustment to reflect this higher inflation rate that has stayed so sticky for so long, the 65 months above target that they mentioned at Jackson Hole? I think that's going to be the key. If it is just a one-time adjustment, markets will look past it. If it's the start of a hiking cycle, that's a bigger problem. All right, Ayako, thank you so much. Aya Yoshioca is a senior investment strategist at Wealth Enhancement Group in Los Angeles. Have a great three-day weekend to you, Aya. All right, we're moving closer to the closing bell on this Friday, so we wanted to bring in our colleague, Jess Menton. She's a senior equities reporter for Bloomberg News, and it feels like there was a lot of activity after the jobs report, and then sometime in midday, everyone just kind of drifted away. And in the sense that we're slowly heading into the weekend, the holiday weekend. Yeah, even if you look at volume on a 30-day basis, you know, still lower obviously than we've seen over the last month, too, but particularly, I was looking at the VIX because it's trading around 14. So that's more than 20% below its one-year average. And Amy Woo Silverman over at RBC, so she heads derivatives there. And she always gets these questions about what's going on there. So underneath the hood, we've talked so much about single stock level versus index, but she really thinks it's gonna have to shift more to the macro side, which potentially maybe that happens in the next few weeks now that we're mostly past earning season. But again, it's tricky with seasonality because we did see seasonality buck the trend in August. We'll see what happens in the next few weeks, especially with CPI next week.

Analysis

The market is reacting to a stronger-than-expected jobs report, which has reignited concerns about the Federal Reserve potentially hiking rates later this month. The S&P 500 is giving back some gains, while the VIX remains low, indicating a cautious sentiment among investors.

Smart money should note the shift in bond market dynamics, with increased issuance from tech companies and hyperscalers competing with Treasuries. This competition could signal a new phase in investment strategies as yields approach levels that attract significant institutional buying.

12:57
PDT

10-year Treasury yield at 4.78%, nearing 5% threshold.

Microsoft Federal Reserve Ayako Yoshioca Wealth Enhancement Group Fed Governor Waller MSFT AAPL FEDFUNDS

– 5% yield historically attracts significant investor demand.

– Equities showing strong earnings growth of 20-23%.

– Increased competition between Treasuries and stocks.

– Tech companies increasingly tapping bond markets.

Treasury yieldsEquity competitionBond market dynamics

▸ Full transcript

The federal government's balance sheet versus some of the more pristine balance sheets of a company like Microsoft are very different. The government has the ability to print money versus Microsoft, so it's just a very apples to oranges kind of situation that we're all sort of grappling with. It's just new; we haven't had to deal with it in so many years because most of the time these tech companies really did operate out of their operating cash flow versus tapping the bond markets. Speaking of competition, we're looking at the 10-year yield currently up at 4.78%. It did get above 4.8% twice this week. At 5%, do Treasuries become competition for stocks? Absolutely. I think we've seen in the past that the 5% level is where there's a lot of investor demand to lock in those long-term rates or yields for a long time. There have been so many buyers that have stepped in, whether it's insurance companies or endowments and foundations. We do like to see that level as an attractive entry point. But it is tough to compete with equities, especially when earnings growth has been in the 20-23% range and equities continue to show double-digit returns. I want to look forward to next week; we're going to get a bunch of inflation data and Fed Governor Waller.

Analysis

The 10-year Treasury yield has risen to 4.78%, nearing the critical 5% level, which historically attracts significant investor interest. This shift raises questions about the competition between Treasuries and equities, especially given the strong earnings growth in the stock market.

Smart money should note that the influx of buyers into Treasuries at these levels could signal a shift in risk appetite, potentially impacting equity valuations. Additionally, the ongoing issuance from tech companies in the bond market indicates a changing landscape where traditional cash flow management is being supplemented by debt financing.

12:55
PDT

Increased bond issuance from hyperscalers and tech firms.

Anthropic SpaceX Scarlett Treasury hyperscalers investment grade AI

– 30-year Treasury yields are at multi-month highs.

– Investment-grade issuance expected to be 8% of new issuance this year.

– Competition in debt markets is intensifying.

– Potential inflationary signals from bond market movements.

debt market dynamicsinflation signalsinvestment-grade issuance

▸ Full transcript

The anthropic IPOs of the world that we know are coming in the fall, and then additional shares that are coming on from SpaceX. That's where we're probably likely to see that AI infrastructure and AI-related equity raise come through. I would bring in the dead equity, or rather the dead issuance point that Scarlett made and touch a little bit more on that. I mean, that's something that we've seen has massively grown this year as we've seen hyperscalers kind of draw down on some of their cash reserves, right? And you know, that's something that's filtering across to the bond market. We've seen 30-year yields in the Treasury market hitting some of those multi-month, multi-year highs here. What are we reading from the bond markets now? Is it purely an inflation signal? Is it a fiscal signal? Or is it more of the state of just debt markets in general where you have these hyperscalers competing now with Treasuries? Sure. In terms of what we're seeing in the bond markets, we are seeing more issuance from these hyperscalers and from tech companies that had not tapped debt markets in the past. So there is a shuffling within the investment-grade side of the market. And you're just seeing competition that you hadn't seen in the past. I think investment grade is going to be at least about 8% of the overall new issuance this year and going into next year.

Analysis

The bond market is experiencing increased issuance from hyperscalers and tech companies, leading to competition that hasn't been seen previously. This shift is contributing to rising 30-year Treasury yields, which are hitting multi-month and multi-year highs, signaling potential inflationary pressures and fiscal concerns.

Smart money should note that investment-grade issuance is expected to account for at least 8% of overall new issuance this year and into next year, indicating a significant shift in how tech companies are engaging with debt markets. This could reshape the landscape for both equity and bond investors as competition intensifies.

12:52
PDT

S&P 500 retracing gains due to jobs report.

S&P 500 VIX Federal Reserve Bank of Japan Ayako Yoshioca Wealth Enhancement Group US AI And Ayako Hi Scarlett S&P 500 FEDFUNDS DXY

– VIX slightly up but remains low.

– Two-year yield nearing 4.42%, sensitive to Fed policy.

– Dollar strengthens against yen; yen rallies on rate hike expectations.

– Technology build-out is creating inflationary pressures.

Fed policyinflationary pressurestechnology impact

▸ Full transcript

Price increase as a result of that whole process. Maybe down the road that'll be what happens. A 20-year story maybe. A long arc regardless. Let's take a look at how things are shaping up as we head into the final 10 minutes of trading here in the US. The S&P 500 is giving back some of yesterday's gain because of that stronger-than-expected jobs report, which has revisited the idea of the Federal Reserve hiking rates later this month. The VIX is moving up slightly but is still very much in that 14 range. The two-year yield, the big move there, relatively speaking, did get at one point close to 4.42%. This tenor is most sensitive to Fed policy, and the dollar is stronger versus the yen today, but for the week, the yen has had a massive rally, a lot of that because of expectations that the Bank of Japan will be the next to hike rates as well. Now for more market analysis, we want to welcome Ayako Yoshioca. She is a senior investment strategist at Wealth Enhancement Group. And Ayako, what is the conversation that you're having with your clients right now when it comes to technology's role in stoking inflation or perhaps bringing about lower prices down the road for the economy? Sure. Hi Scarlett. So, you know, when it comes to technology and the whole AI build-out, we know that this time around it's a very physical build-out that is creating inflationary impulses in the overall economy. This is not dissimilar to what we saw in the early 90s and the mid-90s when the internet was being built out. It was just, you know, it was more fiber-related.

Analysis

The S&P 500 is giving back some gains due to a stronger-than-expected jobs report, raising concerns about potential Federal Reserve rate hikes. The VIX has increased slightly, while the two-year yield approached 4.42%, reflecting sensitivity to Fed policy amidst a stronger dollar against the yen, which has rallied this week on expectations of a Bank of Japan rate hike.

Investors should note that the current inflationary pressures are linked to a physical build-out of technology, reminiscent of the internet boom in the 90s. This suggests that while technology may drive costs higher in the short term, it could lead to lower prices in the long run as efficiencies are realized.

12:48
PDT

Airline stocks firming ahead of the long weekend.

Delta Airlines President Trump Bloomberg Iran Bloomberg Insight Bloomberg Power Players New PRIVATE

– Jet fuel prices near five-month highs at $4.05.

– Delta Airlines recovering half of rising fuel costs through premium pricing.

– Demand expected to decline in fall and winter.

– Airlines face challenges in maintaining profitability.

airline profitabilityfuel price volatilityconsumer spending

▸ Full transcript

The locker room, a place for bold ideas, powerful insights, and high-impact conversations. Every sport grounded in Bloomberg Insight. Join us, Bloomberg Power Players New York, September 10th, 2026. He touches on everything that we care about: the economy, media and information, markets, trade, geopolitics. It's easier to justify building more and more restaurants, whether you do it yourself or you have a franchise. The opportunity here isn't so much operationally; we think they do a great job there. The opportunity is to continue their mid-teens growth and accelerate it even further. Don't miss Bloomberg deals live every week. Everybody has a moment where they put into action all they've practiced, where they step up to a challenge and either succeed or fail. But what are those moments for some of the world's most influential leaders? It was a rough and tumble world, and I thought, okay, I can rise up, I can play this game, and I did play the game. It was great, and it was depressing.

Analysis

Airline stocks are experiencing a temporary boost as jet fuel prices fall, but the overall outlook remains cautious due to persistent high fuel costs and potential demand declines in the latter half of the year. Delta Airlines is leveraging its pricing power to offset rising fuel costs, but the broader airline industry may struggle to maintain profitability as budget-conscious travelers pull back.

12:46
PDT

Airlines are experiencing strong demand during the summer season.

George Ferguson Bloomberg Intelligence Delta Airlines U.S.Iran Becky Blaine Labor Day Ayako Yoshioca PRIVATE

– Fuel prices are a significant concern, with Gulf Coast jet fuel nearing $4.05.

– The airline industry may struggle to maintain profitability as budget travelers decline.

– Delta Airlines is leveraging pricing power to offset rising fuel costs.

– The second half of the year may present challenges for airlines.

airline profitabilityfuel price impactconsumer behavior

▸ Full transcript

Less capacity in the marketplace is keeping ticket prices high enough to regain profitability. It's a difficult situation for airlines right now. All right, George, thank you so much. George Ferguson, global head of aerospace defense and airline analysts at Bloomberg Intelligence, mentioned that airlines are in a good position right now due to the tailwind of summer fares and demand, but things will slow down considerably as we head into the later part of this year, getting closer to the holidays. We'll see if some of those premium offerings make up for the anticipated decrease in more budget-conscious customers, shall we say? Absolutely, we're going to talk about this a little more with Becky Blaine in the next hour to discuss travel during this Labor Day weekend and how to plan ahead. In the meantime, Ayako Yoshioca will be joining us next as we count you down to the close. This is a close on Bloomberg. As a small business owner, I need my payment process to work seamlessly. Tap to pay on iPhone is simple to use. Instead of chasing invoices, I can accept all types of contactless payments right on my iPhone.

Analysis

Airlines are currently benefiting from summer travel demand, but challenges loom as fuel prices rise and budget-conscious customers may decrease. The anticipated slowdown in the second half of the year could pressure profitability despite premium offerings.

12:44
PDT

Airlines are seeing temporary momentum from falling fuel prices.

Delta Airlines Iran Gulf Coast airlines So George

– Current Gulf Coast jet fuel prices are around $4.05, close to yearly highs.

– Delta Airlines is recovering half of rising jet fuel costs through premium pricing.

– The airline industry may face challenges in the fall and winter due to high fuel costs.

– Geopolitical tensions, particularly with Iran, could further impact fuel prices.

fuel price volatilityairline profitabilitygeopolitical risk

▸ Full transcript

If that's going to continue through the rest of the year, it's a little bit of a paltry game compared to years past. But how does that place the airline industry as a whole heading into the fall season? Do you think they're still going to continue that momentum? Yeah, so I think that you're seeing a little momentum today because fuel prices are falling. But really, I mean, the big overhang on airlines is fuel prices, right? We're back up around, we watch sort of the Gulf Coast jet fuel price the most. We're back up around $4.05 for that. The high for the year was about $5, just a little shy of it. So we're pretty darn close to getting back to highs. We don't see an end to the Iran situation yet, which means airlines are gonna be sort of managing this fuel environment where they're sort of, you know, lurking from really high prices to moderating prices. My guess is that we're gonna, you know, we're seeing the strongest demand now as we're going through summer vacation travel season. And then I think as you get into the fall and winter, I think airlines can have a hard time sugar recouping their, you know, the prices they need to cover that increased fuel cost. Yeah. So I think actually the end of the year gets a little more difficult for the airlines. It's a little bounce today, but I don't think this persists. So George, it feels like everyone's been taking their cue from Delta, which has a lot of pricing power chasing the premium customer. Delta says it's been able to recover to half of rising jet fuel costs through pricing because travelers are paying up for those premium seats and premium...

Analysis

Airlines are experiencing a temporary boost in momentum due to falling fuel prices, but the overall outlook remains cautious as they face high fuel costs and geopolitical uncertainties. The end of the year may present challenges for airlines in maintaining pricing power and recovering costs as demand wanes post-summer travel season.

Smart money should note that while Delta Airlines is currently leveraging its pricing power effectively, the broader airline industry may struggle to sustain profitability amidst fluctuating fuel prices and potential demand declines in the fall and winter months. The geopolitical situation, particularly regarding Iran, adds an additional layer of risk that could impact fuel prices and operational costs for airlines.

12:42
PDT

Airline stocks are gaining traction ahead of the long weekend.

President Trump U.S.airlines Power Players New York

– Jet fuel prices are at a five-month high, impacting airline costs.

– President Trump emphasized the positive summer travel trends.

– Increased travel demand may not offset rising operational costs.

– Investors should prepare for potential earnings volatility in the airline sector.

travel demandfuel prices

▸ Full transcript

Power Players New York, September 10th, 2026. He touches on everything that we care about: the economy, media and information, markets, trade, and geopolitics. Stocks of the hour are airlines, and shares are firming ahead of the travel-heavy long weekend. Of course, investors are watching jet fuel prices, which are near their highest level in five months. President Trump hailed the U.S. summer travel bump in a meeting with industry executives earlier this week. So let's break down those themes with...

Analysis

Airline stocks are firming ahead of a travel-heavy long weekend, with jet fuel prices nearing a five-month high. President Trump highlighted the U.S. summer travel surge during a meeting with industry executives, signaling strong demand in the sector.

Investors should note the potential impact of rising jet fuel prices on airline margins, which could pressure profitability despite increased travel demand. The combination of high fuel costs and strong consumer travel trends may lead to a volatile earnings season for airlines.

12:40
PDT

Contactless payments are gaining traction among small businesses.

iPhone

– Mobile payment solutions reduce the need for chasing invoices.

– Seamless payment processes can improve customer satisfaction.

– The trend indicates a shift towards digital financial solutions.

– Small businesses are increasingly adopting technology to enhance operations.

digital paymentsfintech growth

▸ Full transcript

As a small business owner, I need my payment processes to work seamlessly. Tap to pay on an iPhone is simple to use; instead of chasing invoices, I can accept all types of contactless payments right on my iPhone.

Analysis

The adoption of contactless payment solutions on mobile devices is streamlining payment processes for small business owners, allowing them to accept various payment types effortlessly. This shift indicates a growing trend towards digital payment solutions that enhance operational efficiency and customer convenience.

12:38
PDT

Zscaler's stock fell despite strong earnings due to conservative growth guidance.

Zscaler Jay Choudhury Fortune 500 AI NPS Zero Trust DXY

– AI is seen as a major growth driver for Zscaler's cybersecurity solutions.

– The company has over 785 customers spending more than $1 million annually.

– Zscaler emphasizes the importance of innovative solutions to consolidate cybersecurity spending.

– Customer satisfaction is high, with an NPS score above 80.

AI in cybersecuritycustomer expansionrevenue growth

▸ Full transcript

Revenue last year was 20%. Can you continue to generate 20% growth organically, or do you expect a need to make acquisitions to maintain that 20%? So we do not depend upon acquisitions for our revenue growth. Typically, most of our acquisitions have been early-stage companies acquired for new innovations. We have a sizable platform, Zero Trust everywhere from users to branches to workloads, not for agents. We have an amazing business for data security. It's growing very rapidly. Security for AI is growing well, and the new solution area we're launching, that is agent exec ops, will offer a big opportunity. We have plenty of products, great customer relationships, and these customers are very happy with an NPS score of 80 plus. I think we have a wonderful opportunity in front of us. And of course, I know that you've landed more one million dollar plus deals. Is that something that you see continuing, and what would be the main driver for that moving forward? This is our customers wanting to buy more and more of a platform. It's the expansion of the platform and the elimination of a lot of point products. We also reduce a lot of costs while we do so. I'll mention that the number of customers who spend over a million dollars with us has now approached 785 customers. This is a wonderful opportunity. Happy customers buy more; happy customers tell others.

Analysis

Zscaler's stock is down over 6% despite beating earnings estimates, as the CEO highlights AI's significant impact on cybersecurity. The company is experiencing rapid growth in AI security solutions, but analysts view its guidance of 16-17% growth as conservative, contributing to market skepticism.

Smart money should note that Zscaler's customer base is expanding, with a notable increase in high-value contracts, indicating strong demand for its platform. The company's focus on consolidating cybersecurity solutions may position it favorably as organizations seek efficiency amidst rising AI adoption.

12:36
PDT

Zscaler reported 25% annual recurring revenue growth.

Zscaler Jay Choudhury AI ARR

– Guidance for 16-17% growth this year is seen as conservative.

– CEO highlights resource reallocation towards AI priorities.

– Over 90% of assessed organizations have AI assets exposed to the internet.

– Shorter sales cycles for AI security solutions are noted.

AI investmentcybersecurity spending

▸ Full transcript

Getting resources towards AI and growth. How much of that is AI itself allowing Zscaler to operate with fewer people? So first of all, restructuring and rebalance some of your resources for the priorities of business is a normal course of business for us. It's not a significant change. AI is providing automation. It's playing some role in it. It's essentially prioritizing where our investment should go. And is that something that you expect to maybe reverse at some point if you do indeed see revenue keep growing from here? So this is not a reduction. This is actually reallocation. We are taking those investments and aligning with some of the AI-focused priorities and some of the products we're building at a faster pace and go-to-market programs we're building. Okay, I want to talk about your financials for a moment. You did report results and you just closed out the year with annual recurring revenue of 25 percent. But you are guiding for growth of 16 to 17 percent for this year. Analysts say that this is a conservative forecast and a lot of them say that's the reason why your stock is down today. What's driving the slowdown? Look, we had a great performance. I mean, our numbers are great from any point of view, whether it's our revenue growth, ARR growth, or even some of the other numbers that I'm very proud of. We crossed 50% of Fortune 500 companies.

Analysis

Zscaler's stock is down despite reporting a 25% annual recurring revenue growth, with guidance for a more conservative 16-17% growth this year. The CEO emphasized that the company is reallocating resources towards AI-focused priorities rather than reducing them, indicating a strategic pivot rather than a downturn in business prospects.

Smart money should note that while Zscaler's growth forecast appears conservative, the underlying performance metrics remain strong, suggesting potential undervaluation. The rapid deployment of AI assets among organizations, coupled with security vulnerabilities, positions Zscaler favorably in the cybersecurity market as demand for innovative solutions increases.

12:34
PDT

Over 90% of organizations have AI assets exposed to the internet.

Zscaler Jay Choudhury AI Zero-Touch Exchange MCP Touch Exchange

– A third of these AI assets have exploitable vulnerabilities.

– Zscaler's Zero-Touch Exchange offers significant security advantages.

– Shorter sales cycles for AI security indicate urgent spending.

– Companies are prioritizing innovative cybersecurity solutions.

cybersecurityAI deploymentinvestment in security

▸ Full transcript

Customers talk to me about this, and we have some wonderful, highly differentiated solutions for that. One interesting finding was that more than 90% of organizations that Zscaler has assessed had AI assets exposed to the internet. What does that tell you about companies' deployment of AI? Are they deploying it faster than they can secure it? They are deploying faster than some of them can experiment. For example, the number of assets we found was MCP servers deployed out there, and they're exposed, so they want to do something. But what's even more alarming is that a third of them could be exploited; they had vulnerabilities. So we are engaging with customers to show them what assets they have from an AI point of view, how much exposure they have, and how we can hide those assets behind Zscaler's Zero-Touch Exchange. If they can't reach those assets, they can't reach them. One of the big values we bring to our customers that others cannot is hiding your applications and attack surface, which provides excellent security. I can imagine this is great for Zscaler's business, and in fact, you are seeing shorter sales cycles for AI security. Do you think that this is one of those areas where companies just really cannot afford to delay their spending? Indeed, things are moving fast, and innovations are happening quickly.

Analysis

Zscaler's CEO highlighted that over 90% of organizations assessed have AI assets exposed to the internet, indicating a rapid deployment of AI outpacing security measures. Alarmingly, a third of these assets have vulnerabilities, emphasizing the urgent need for enhanced cybersecurity solutions like Zscaler's Zero-Touch Exchange.

Smart money should note that shorter sales cycles for AI security solutions suggest a growing urgency among companies to invest in cybersecurity, driven by the fear of vulnerabilities in their AI deployments. This trend indicates a potential shift in spending patterns, favoring innovative vendors that can consolidate security solutions effectively.

12:32
PDT

AI is seen as a major opportunity for productivity and cost savings.

Zscaler AI Mythos CIO CEO

– Concerns about AI vulnerabilities are driving demand for cybersecurity solutions.

– Spending on cybersecurity is expected to grow, not consolidate.

– Companies prefer innovative vendors that can consolidate security solutions.

– Zscaler is experiencing rapid growth due to increased customer engagement.

cybersecurity growthAI adoption

▸ Full transcript

Will make parts of traditional software obsolete? Well, first of all, AI is the biggest opportunity because every CEO, every CIO, and many of the boards I talked to, they all want to take advantage of AI for two reasons: productivity on one side and cost savings on the other side. What's holding them back is fear that these new AI models, like Mythos of the World, will create vulnerabilities that they could get breached. Number two, they're also worried that the application they put in place will be hacked or hijacked. So they're looking for companies like Zscaler to protect them, and that's why we have so many engagements with customers on our business for security for AI. He is growing rapidly, and we're very excited about the opportunity. There's no such thing as AI minimizing the need for security. In fact, it's just the opposite. So does AI ultimately expand the amount of money that companies will spend on cybersecurity? Or does it consolidate that spending around fewer vendors? So first of all, the AI, sorry, first the spend on cyber is growing. Absolutely it is growing. That's number one. Number two, customers look for vendors who have innovative solutions, who can consolidate point products in a platform, but not in a smorgasbord of so many products by buying companies and not.

Analysis

Zscaler's CEO highlighted that AI presents a significant opportunity for cybersecurity, as companies seek to leverage AI for productivity and cost savings while fearing potential vulnerabilities. The demand for innovative security solutions is rising, indicating that spending on cybersecurity is expected to grow rather than consolidate around fewer vendors.

Smart money should note that while AI is perceived as a threat to traditional software, it simultaneously drives increased investment in cybersecurity solutions. Zscaler's engagement with customers reflects a broader trend where companies prioritize security in their AI adoption strategies, suggesting a robust market for cybersecurity firms.

12:30
PDT

Zscaler's shares down 6.25% despite earnings beat.

Zscaler Jay Choudhury Bloomberg CEO AI Watch Bloomberg Real Yield New York Scarlett Foo Christina Kino PRIVATE

– CEO emphasizes AI as a major growth driver.

– Market sentiment reflects caution despite strong performance.

– Analysts may need to reassess growth expectations in AI context.

– Potential volatility in tech stocks as AI impacts sector dynamics.

AI impact on cybersecuritytech sector volatility

▸ Full transcript

Technology touches on everything that we care about: the economy, media and information, markets, trade, and geopolitics. It's between what I'm doing today and what Claire needs to do tomorrow. Your fixed income fix. Watch Bloomberg Real Yield every Thursday at 5 p.m. London time, right here on Bloomberg. Context changes everything. It's about 3:30 p.m. in New York. This is the Countdown to the Close. I'm Scarlett Foo. And I'm Christina Kino. Shares of Zscaler are down about 6.25% today, even after beating top and bottom line estimates for its fourth quarter earnings. The CEO, Jay Choudhury, flagged the impact that AI is having on the cybersecurity sector, saying on the conference call, 'AI is quickly becoming the largest tailwind we have ever seen.'

Analysis

Zscaler shares fell approximately 6.25% despite beating earnings estimates, as CEO Jay Choudhury highlighted AI's significant impact on the cybersecurity sector, calling it the largest tailwind they have ever experienced. This suggests that while Zscaler is performing well, market sentiment may be cautious about future growth potential amid broader industry shifts towards AI.

12:26
PDT

Oracle is moving to a lower-margin business model focused on AI.

Oracle Larry Ellison Amazon Google Microsoft Brent Thill Jeffries AI CEO Alright Brent AMZN GOOGL MSFT PRIVATE

– Concerns exist about Oracle's profitability during this transition.

– Larry Ellison's strategy is viewed skeptically by some investors.

– Oracle is expected to be a top player in AI infrastructure.

– The company currently lags behind Amazon, Google, and Microsoft.

AI transitiontech sector dynamics

▸ Full transcript

They are transitioning from a high-margin business to a lower-margin business in infrastructure. What is this going to do to the business model? Bottom line, we like the name. There are a lot of concerns. Larry Ellison has done a great job through many tech cycles that we follow him in. Wow, one of the great books called Software, which is a book about Larry and the success of Oracle. This book is 20 years old. Larry said, 'I like it when people think I'm nuts, because that means we're doing something right.' Right now, a lot of people think that he's nuts. They think he's nuts for what he's doing and transitioning this from a really high-margin business to a low-margin business towards AI. I think there's a lot of concern. Again, there are better executing stories. So what we've said is they're going to be among the top five building this AI infrastructure. They are not in the top three, right? Amazon, Google, and Microsoft are in that. Alright Brent, thank you so much. Brent Thill, tech sector leader and software and internet research analyst at Jeffries, giving us a glimpse into what we might expect from Adobe and Oracle next week. Coming up on the close, we're going to stick with tech because the CEO of Zscaler will be joining us live to break down the cybersecurity company's latest results. This is the close on Bloomberg.

Analysis

Oracle is transitioning from a high-margin business model to a lower-margin one focused on AI, raising concerns among investors about its future profitability. Despite skepticism, the company is expected to be among the top players in building AI infrastructure, although it currently trails behind Amazon, Google, and Microsoft.

Smart money should note that while Oracle's shift may seem risky, it reflects a broader trend in tech where companies are adapting to AI demands. The skepticism surrounding Larry Ellison's strategy could present a buying opportunity if Oracle successfully navigates this transition and capitalizes on its AI initiatives.

12:24
PDT

Adobe's new CEO announcement disappointed investors.

Adobe Oracle Brent Thill Dave Wadwani Google Amazon CEO AI Wall Street GOOGL AMZN

– Market sentiment indicates a need for a more dynamic leadership at Adobe.

– Oracle's upcoming earnings report is highly anticipated.

– Oracle's significant debt could hinder its growth potential.

– Concerns about the overall direction of both companies are prevalent.

leadership changedebt managementearnings expectations

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The CEO prior was going to be the pick. So I think the street's disappointed; stocks are obviously off 6%. He is a good leader, but certainly isn't, in our opinion, the dynamic leader that Wadwani is. And so it's unfortunate that you lose a great athlete like Dave Wadwani to leave the company going to his next pursuit. So I think the street is obviously, just quite frankly, bummed out at the decision. And my personal opinion is I think the Adobe board needs an overall. I think everyone on Wall Street feels like they could have put a little more excitement into this pick. I think you've seen it just repeatedly. You know, there's just a lot to be said here. It would take a long time to go through it. All right, Brent. And of course, we have Oracle reporting next week as well. Now, the story there is, of course, growth, which could exceed already huge expectations. But what does the company need to deliver on those expectations and for this AI infrastructure story to keep working? Oracle's mass Atlanta performing its peers, Oracle, Google, Amazon, all the top hyper scale. There's a couple of years. One is the debt and they have 130 billion in debt and 30 in cash, 30 in cash flow. So 130, 30, 30, everyone's like the debt.

Analysis

Adobe's stock is down 6% following the announcement of a new CEO, which disappointed the market as many expected a more dynamic leader. The sentiment on Wall Street suggests that the board could have made a more exciting choice, reflecting broader concerns about the company's direction.

Oracle is set to report next week, and while growth expectations are high, the company faces significant debt challenges with $130 billion in liabilities against only $30 billion in cash flow. This financial strain could impact its ability to sustain growth in the competitive AI infrastructure space.

12:22
PDT

Lululemon's price target cut reflects ongoing concerns about its guidance.

Lululemon Morgan Stanley SiriusXM Deutsche Bank Amazon YouTube Ambarella Craig Hallam The Transactions Technology Bloomberg Crypto Tuesdays Scarlett Foo Analyst Recommendations PRIVATE AMZN

– SiriusXM's upgrade is driven by strategic partnerships that may enhance growth.

– Ambarella faces supply constraints affecting its demand outlook.

– Market reactions vary significantly between growth potential and supply chain issues.

– Analyst ratings are influencing stock movements in contrasting directions.

analyst ratingssupply chain riskgrowth potential

▸ Full transcript

The Transactions and the Technology Bloomberg Crypto Tuesdays only on Bloomberg. Bringing you the latest business news wherever and whenever it happens. I'm Scarlett Foo reporting from America's biggest military shipyard. This is Bloomberg. Time now for our top calls and a look at some of the big movers on the back of Analyst Recommendations, and let's begin with Lululemon. Morgan Stanley cut its price target to $83 from $93 on the back of the company, with the firm maintaining an underweight rating on the stock, writing, "the outsized guidance cut lower the bar meaningfully, but we don't think the reset is done." The shares are now down 18%. Next up is SiriusXM, with Deutsche Bank boosting its rating on the satellite radio stock to buy from hold, citing its underappreciated partnerships with Amazon and YouTube. The analysts say these relationships should boost growth for the name, raising the price target to $45 from $31. The shares are down about 2%. And last but not least is Ambarella, with Craig Hallam downgrading the chip company to hold from buy following a second-quarter result, or I should say downgrading it to hold from buy. The price target was cut to $70 from $95, with the firm saying supply constraints around memory chips "should have an impact on Ambarella's unit demand." Thank you for watching!

Analysis

Lululemon's stock is down 18% after Morgan Stanley cut its price target to $83 from $93, maintaining an underweight rating due to concerns that the company's guidance reset is not yet complete. Conversely, SiriusXM saw a boost in its rating from Deutsche Bank, which upgraded it to buy from hold, citing strong partnerships with Amazon and YouTube that are expected to enhance growth prospects.

The downgrade of Ambarella by Craig Hallam to hold from buy, with a price target cut to $70 from $95, highlights ongoing supply constraints in the memory chip sector that could impact demand. Smart money should note the contrasting analyst sentiments, as the market reacts differently to growth potential versus supply chain challenges, indicating a divergence in sector performance expectations.

12:18
PDT

August job growth was 162,000, three times the consensus estimate.

Diane Swank KPMG Bloomberg AI Canada And August

– New graduate unemployment remains high, with 89% blaming AI for job difficulties.

– The labor market shows low hire, low fire dynamics, limiting opportunities.

– Service sector inflation remains a concern amid rising costs.

– Economists are struggling to accurately forecast labor market conditions.

labor market dynamicsAI impact on employmentinflation concernseconomic forecasting challenges

▸ Full transcript

Programmers rather than the numbers of programmers have shed a lot of computer programmers in the tech sector, but outside of that, we've not really seen much. Now that doesn't sway new graduates because the new graduate unemployment rate, the gap between that and the overall unemployment rate is high. It's more like the early 2010s, and they are, for better or worse, scapegoating AI. I don't think AI is taking their jobs; I think it's more right now the residual of a low hire, low fire, low churn labor market. We've just never seen anything like this. You can't get your foot in the door and get a new opportunity, and that's understandable that they're frustrated. That said, 89% of new college grads now blame AI for them not getting a job. AI uncertainty in the business sector may also be playing a role, but I don't see that yet. We can't find the sort of evidence of it yet in the overall labor market. Diane, before we let you go, a quick question on how it is that economists got it so wrong. The print was 162,000 jobs for the month of August. That was three times the consensus estimate. The highest economist estimate in our survey was 125,000. Is there anything specific to the current conditions that makes it difficult for forecasters to read the labor market? Everything. To be honest, I'm a labor economist. I've never seen anything like this. And August is historically a month that...

Analysis

The August jobs report revealed a surprising addition of 162,000 jobs, significantly exceeding expectations, which raises questions about the current labor market dynamics. Despite the positive headline, the underlying issues such as high new graduate unemployment and the blame placed on AI for job scarcity indicate a complex economic landscape.

Smart money should note that while the job growth is robust, the frustration among new graduates and the low churn in the labor market suggest potential long-term structural issues. The uncertainty surrounding AI's impact on employment may be contributing to a cautious hiring environment, complicating the economic outlook.

12:16
PDT

Service sector inflation is being buoyed by wage growth despite overall economic challenges.

Julie Beall Cane Anderson-Rudnick Investment Management Diane Swank KPMG Zscaler Michael Stiefer Sunni Purchase Canada AI FEDFUNDS

– Trade tensions, particularly with Canada, could exacerbate inflationary pressures.

– AI's impact on job creation and displacement varies significantly across industries.

– The labor market shows signs of both strength and underlying weaknesses, particularly in healthcare.

– Sticky inflation remains a key concern for the Federal Reserve.

service sector inflationtrade tensionsAI impact on jobs

▸ Full transcript

That's where wages accelerated, and that's in the service sector. So even though low and middle-income households are really feeling the pain from higher inflation and its compounding effects over five years, there still are these pockets out there, and that's buoying the service sector inflation. In the healthcare sector, we saw that kind of hiring slow down, and that reflects again them not being able to bid and compete in some of the low-wage areas, and that's pushing up costs as well in the service sector. That's what I'm worried about, and that's what hawks at the Fed are worried about: sticky service sector inflation on top of continuous shocks. We're seeing sort of the cost of transportation pick up where tariffs left off, and threats of new tariffs out there. We've got a trade war with Canada coming up next week. Those are all things; it's not harder on Canada than it is on us, but at the end of the day, all of that is going into more inflation in a world where inflation has already been too high for too long. I appreciate your bringing up the temporary protected status workers, such as those from Haiti, and also these specific factors that we need to consider in this jobs report. I want to talk about AI, the impact of AI, and whether you see it show up in terms of job creation in certain industries or in displacing workers in other industries. What are you seeing? Well, you know, in the information sector, we have seen, you know, since...

Analysis

Service sector inflation remains a concern as wages accelerate, particularly affecting low and middle-income households. The potential for sticky inflation is compounded by external factors such as trade tensions and tariffs, which could further elevate costs in an already high-inflation environment.

The interplay between AI and job dynamics is complex, with potential job creation in some sectors while displacing workers in others. This duality highlights the need for investors to closely monitor sector-specific impacts of AI as they could influence labor market trends and inflationary pressures.

12:14
PDT

Unemployment rate stable at 4.1%.

Federal Reserve Kevin Moore Christopher Waller Jackson Hole Fed Governor Christopher Waller Beige Book FEDFUNDS

– Participation rate highest since May.

– Under-employment rate fell to 7.7%.

– Long-term unemployment increased to 1.9 million.

– Wage growth remains contained despite labor shortages.

labor market dynamicsinflation outlook

▸ Full transcript

The month of August as well. But at the end of the day, that 4.1% unemployment rate with a higher participation rate finally, it's the highest participation rate since May. That was good news. So it was a 4.1% stable rate for the right reasons, and I think that's good as well. It's not a perfect job report underneath the hood. The good news was that the under-employment rate actually fell from 7.9 to 7.7%. But the length of unemployment for those people who don't have a job, that stigma is still there. They swelled to $1.9 million from $1.8 million in July. And the duration of unemployment went up by a week for those long-term unemployed. So this is still a job market that, overall, is low hire, low fire, economy, and not enough churn for people to feel good about. That said, at 4.1 percent, that already is an unemployment rate that Kevin Moore said at Jackson Hole was what the Fed considers full employment. Yeah, well, yeah, very interesting contrasts in those unemployment numbers. I want to take a look at the wage growth as well. I mean, that looked particularly contained in this latest set of numbers, although we are seeing pockets of labor shortages and stronger wage pressures. And of course, Fed Governor Christopher Waller pointing to inflation in general as a key signal for the Fed come September when they meet here. So what's the takeaway there from the labor market in terms of the overall inflation outlook? You know, this is one of the things that was really interesting in the Beige Book and in...

Analysis

The U.S. unemployment rate held steady at 4.1%, with a notable increase in the participation rate, the highest since May. However, the under-employment rate decreased slightly, while the number of long-term unemployed rose, indicating a job market that remains stagnant despite low overall unemployment.

Smart money should note that while wage growth appears contained, pockets of labor shortages could lead to stronger wage pressures. The Federal Reserve's upcoming decisions may hinge on these mixed signals from the labor market, particularly as inflation remains a key concern.

12:09
PDT

S&P 500 down 0.4% as job report spurs rate hike bets.

Tesla Lululemon Fair Isaac Canaan Anderson-Rudnick Investment Management Diane Swank KPMG Zscaler Michael Stiefer Sunni Purchase Federal Reserve Brent Crude Dollar Tree GOOGL PRIVATE AAPL

– Tesla shares down nearly 6% due to disappointing cyber cab launch.

– Lululemon shares hit an eight-year low, down 17.5% after outlook cut.

– Odds of a Fed rate hike in September now at 60%.

– Concerns over private company economics in tech sector.

Fed policyjob market dynamicstech sector economics

▸ Full transcript

And evenly SpaceX has been trading on what happens when we get these massive equity issuances from either new companies or existing companies as Google did. To me, the bigger concern that I have is we don't understand a lot of the underlying economics of many of these businesses. And because so much of the Magnificent Seven's revenue is tied up in two private companies with uncertain economics, we do have a certain dependence on them. So getting that information is going to help us better understand how the whole ecosystem works, but I worry that we're not going to like what we see. All right, Julie, thank you so much. Julie Beall, portfolio manager and senior research analyst at Canaan Anderson-Rudnick Investment Management. Coming up on the close, the labor market firing on all cylinders in August will discuss the economic implications of this surprise surge in job growth with Diane Swank, Chief Economist at KPMG. Plus from one estimate B to another, the CEO of Zscaler joins us live on the heels of the cybersecurity company's earnings; he will reveal the two major challenges AI poses to enterprises and where growth opportunity lies. And it's back to school season as families grapple with the rising costs of higher education; we will bring you a conversation with Michael Stiefer, president of Sunni Purchase, a public school just north of New York City. All that and more coming up; this is the close on Bloomberg.

Analysis

The stronger-than-expected August jobs report has led to increased bets on a Federal Reserve interest rate hike, with odds now at 60% for September. This has resulted in a decline in equity markets, particularly affecting stocks like Tesla and Lululemon, which are down significantly due to company-specific issues and broader economic concerns.

Smart money should note the potential disconnect between job growth and inflation dynamics, as rising Treasury yields complicate the Fed's policy decisions. The reliance on uncertain private company revenues within the tech sector raises questions about the sustainability of growth in the Magnificent Seven, suggesting a cautious approach to tech investments may be warranted.

12:07
PDT

S&P 500 down 0.4% amid job report fallout.

Tesla Lululemon Federal Reserve U.S. Open Heineken Dollar Tree Canaan Anderson Rudnick Investment Management Julie Beal Chair Warsh AI Labor Day FEDFUNDS

– Tesla shares down nearly 6% due to cyber cab launch.

– Lululemon stock drops 17.5% after outlook cut.

– Increased odds of Fed rate hike now at 60%.

– Bond market dynamics complicate Fed's interest rate management.

Fed policyinterest ratesretail sector performancebond market dynamics

▸ Full transcript

Reserve on that very issue, Julie. I mean, given all the inputs that you've highlighted into inflation, we're talking about energy prices and also some of the technology-driven dynamics there, does that just make the Federal Reserve's job much harder here because they're using such a blunt tool as interest rates? Yeah, I think that's right. And I think that's part of what Chair Warsh is trying to orient everyone towards is that they don't actually manage interest rates by themselves. The bond market actually has a much, much bigger stick to whack everyone with. And I think that that's an important distinction. Part of the struggle that we've all had is we really enjoyed getting the answers to the test in terms of all of the Fed forecast and all of the yield curves and everything that they gave us ahead of time so that we would know where they were going. But it does pigeonhole them to a certain extent. And it reduces how data dependent they really can be in terms of having discretion to make moves. So I understand the desire to move away from that and let the bond market do more of the talking. But I do think that that's a very big change after what we had before. It's not that easy to give that up. Absolutely. A different era, so to speak. I want to get your thoughts on AI before we let you go, Julie. September is going to be a big month of issuance once we get past Labor Day for all kinds of companies, but in particular, the big tech companies. How are you anticipating big tech to raise money in the latter half of September? And what will that mean for how you hold their equity or their debt?

Analysis

The stronger-than-expected August jobs report has led to a decline in equity markets, with the S&P 500 down 0.4% as traders adjust their expectations for Federal Reserve interest rate hikes. Notably, Tesla shares fell nearly 6% due to a less substantial cyber cab launch, while Lululemon's stock dropped 17.5% after a retailer cut its full-year outlook for the second consecutive quarter.

Smart money should note that the job report's implications are causing a shift in market sentiment, with increased bets on a potential rate hike as soon as this month. The bond market's influence on interest rates is becoming more pronounced, complicating the Fed's ability to manage monetary policy effectively in a changing economic landscape.

12:05
PDT

Dollar Tree up 27% YoY, reflecting strong consumer value perception.

Dollar Tree Lulu Julie Beal Canaan Anderson Rudnick Investment Management CL=F DXY

– Retail sales are holding up despite selective spending by consumers.

– Technology's role in suppressing inflation is diminishing.

– Rising oil prices pose risks to transport and supply chains.

– Inflation may enter a structurally higher phase.

retail performanceinflation dynamics

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Dollar Tree is up 27% over the last 12 months. To me, that's really a function of how well each of the retailers is able to deliver actual value. It really doesn't actually matter what level of income stream. What you need is for customers to come into your store for you to execute well enough that you go in there and you can recognize, wow, that's a fair price to pay for something. That's all we're really looking for. We're so value-starved. So I think it's a little bit lazy to just say I don't want exposure to the low-income consumer because we know retail sales are broadly holding up. It's just they're being much more selective. Just ask Lulu. Well, that makes a lot of sense, of course, in this environment. Julie, I mean a lot of consumers, whether they're high income or low income, are very much focused on inflation costs at the moment. And one of your arguments is that we have lost some of that technology-driven inflation that has previously kept a lid on prices. Where do you see the inflation story developing from here? Do you think it's going to be a structurally higher era of prices from here? You know, I think it's really hard to have any kind of strength in predicting because one of the larger inputs in terms of oil prices and what that means for transports and supply chains, that is such a major question. It's really hard to pin that down. And what's difficult is that for decades, we've really relied on technology to put a lot of downward pressure on inflation. You and I don't feel it because the iPhone price is pretty much the same or goes up, but you know the way that we calculate...

Analysis

Dollar Tree and other retailers have seen a 27% increase over the last year, driven by their ability to deliver perceived value to consumers. Despite concerns about low-income consumers, retail sales remain robust as shoppers become more selective in their purchases.

The inflation landscape is shifting, with technology no longer exerting downward pressure on prices as it once did. Analysts should consider the implications of rising oil prices on transport and supply chains, which could signal a structurally higher inflation environment ahead.

12:02
PDT

Lululemon down 17.5%, eight-year low.

Lululemon Fair Isaac FICO Bill Palti Federal Housing Finance Agency Canaan Anderson Rudnick Investment Management Federal Reserve CEO Iran War Julie Beal Canaan Anderson Rudnick Investment White House FEDFUNDS

– Fair Isaac (FICO) down over 15% due to criticism on credit score costs.

– August jobs report stronger than expected, raising rate hike bets.

– Odds of a September rate hike now at 60%.

– December rate hike odds at 53%.

Fed policyconsumer credit costsemployment data impact

▸ Full transcript

Also looking at Fair Isaac, we all know it as FICO, down 15 percent more than 15 percent at the moment that is after federal housing finance agency director Bill Palti renewed his long-standing criticism on the costs of consumer credit scores. And finally, Lululemon shares also down majorly here today, 17.5 percent here, an eight-year low for the stock, after a retailer cut its full-year outlook for a second straight quarter. Yeah, it's a bit of a mess over at Lululemon that the new CEO has to clean up. Alright, let's go back to the economic data because the much stronger than expected August jobs report has traders increasing their bets that the Federal Reserve will raise interest rates as soon as later this month. Look at the white line. It tracks the odds of a rate hike in September. It's now sitting at 60 percent, partially rising since the start of the Iran War at the end of February. The blue line tracks the probability of a rate increase in December and it's now more than one in two odds at 53 percent. So with that in mind, let's kick things off right now with Julie Beal. She is portfolio manager and senior research analyst at Canaan Anderson Rudnick Investment Management. Julie, thank you so much for speaking with us. We know that rising Treasury yields is something that the government, the White House has been very focused on. This job support does not help out, does it? No, absolutely not. And I think, given all the commentary and the posturing we've heard from the Fed, everyone was a little bit nervous about where we are ending up with inflation. And before we had enough softness in the job.

Analysis

Lululemon shares plummeted 17.5%, hitting an eight-year low after the retailer cut its full-year outlook for the second consecutive quarter. Fair Isaac, known as FICO, also saw a significant drop of over 15% following renewed criticism from the federal housing finance agency director regarding consumer credit score costs.

The stronger-than-expected August jobs report has traders increasing their bets on a Federal Reserve interest rate hike, with odds now at 60% for September. This shift in expectations could lead to further volatility in equity markets as investors reassess their positions in light of rising Treasury yields and inflation concerns.

12:00
PDT

S&P 500 down 0.4%, reversing previous gains.

S&P 500 Tesla Brent Crude Bloomberg Scarlet Fu Christina Kino VIX U.S. Federal Reserve Watch Bloomberg Real Yield New York GC=F CL=F PRIVATE S&P 500 FEDFUNDS

– Stronger-than-expected jobs report negatively impacts stocks.

– Tesla shares down nearly 6% due to cyber cab launch.

– Market shows sensitivity to economic data and product performance.

– VIX decreases to 14, indicating reduced volatility expectations.

Fed policymarket volatilityeconomic data impact

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That's up about one basis point. Taking a look at commodities, silver, copper, gold, all in the red and oil right now in the green. Brent Crude, $96 a barrel. Get your fixed income fix. Watch Bloomberg Real Yield every Thursday at 5 p.m. London time. Right here on Bloomberg, context changes everything. The countdown is on. Everything you need to get the edge at the end of the market day. This is the close. A job surprise throws a wrench in the rally heading into this holiday weekend. Live from studio two at Bloomberg headquarters in New York, I'm Scarlet Fu and I'm Christina Kino. We're kicking you off to closing bell here in the U.S. All right, with an hour to go. Let's show you what's going on in equity markets. You have the S&P 500 down four tenths of one percent, giving back some of yesterday's gains as good news is bad news. That stronger than expected jobs report is sending stocks and short-term bonds lower. The VIX comes down to 14. The two-year yield, you can see up four basis points, a 4.37%. This tenor, of course, is the most sensitive to Fed policy. And dollar yen, the dollar is higher versus the yen today. The yen had a big, big rally yesterday, so this is a little bit of a give back from yesterday's move. Christine? All right, Scarlett, let's take a look at some of the equity movers today, starting with Tesla. Those shares down more than 5%, nearly 6% at the moment because of a cyber cab launch that was less substantial and more.

Analysis

The S&P 500 is down 0.4%, reversing some gains as a stronger-than-expected jobs report negatively impacts stocks and short-term bonds. Tesla shares are down nearly 6% due to a less substantial cyber cab launch, indicating market sensitivity to product performance and innovation expectations.

Investors should note the market's reaction to economic data, where good news is interpreted as bad for equities, reflecting concerns over Fed policy tightening. Additionally, Tesla's decline highlights the importance of product launches in maintaining investor confidence, especially in a competitive landscape where expectations are high.

11:58
PDT

Lululemon's stock down 17%, hitting an eight-year low.

Lululemon Adobe David Wadwani Anil Kachravarti Bill Pulte Tatiana Dari Lisa Abramowitz Tim Stenevec Molly Smith Maggie Timony Heineken U.S. Open AAPL

– Company cut full-year outlook for the second consecutive quarter.

– Adobe's leadership change raises market concerns.

– David Wadwani's departure leaves uncertainty in Adobe's direction.

– Credit bureaus face scrutiny over pricing practices.

consumer discretionaryleadership transitionAI disruptioncredit bureau scrutiny

▸ Full transcript

Credit agency and not three of them to give you this score. So I hope your credit score is good because big changes are coming in that space. Fingers crossed. Thank you, Tatiana Dari. Always a pleasure. For more conversations like this, you can listen to our new Stock Movers podcast. Subscribe for five-minute episodes of the Biggest Winners and Losers in the Stock Market. Listen to Stock Movers on Apple, Spotify, or anywhere you get your podcasts. All right, it is time to go down to the U.S. Open and that's where we find Tim Stenevec and Molly Smith; they are holding things down courtside. How's it looking out there, guys? Oh, I see. We're holding things down. I mean, yesterday we were holding Honey Duses, today we're holding Heineken Zero Zeroes. That's because we're going to be speaking to Maggie Timony in just a minute. She's the U.S. CEO of Heineken, and they're all about the N.A. beverages this year. So that's part of the conversation. And what is Molly, the U.S. Open without food and drink? I mean, we have been eating well. We have been eating well, yes. I think we've done a little bit of a tour. I think today we're going to, we have to go for the salt tank sandwich tonight. That one's been hyped up big. So that's going to be for dinner. And no question, that's going to come up with Chris Studley. He oversees all the food and drink here. So he's going to be stopped by in just a few minutes. Don't worry, there's going to be plenty of tennis that we're going to be talking about. We just saw Emma Navarro walk by. That's right. On her way to her match. This is again, guys, where we're sitting out here outside of Vash, seeing the players go in and out of this media center where a lot of times they will be coming before and after their matches.

Analysis

Lululemon's stock has plummeted 17% to an eight-year low following a disappointing earnings report and a second consecutive cut to its full-year outlook. Meanwhile, Adobe faces leadership changes as David Wadwani departs, raising questions about the company's future direction amidst ongoing AI disruption fears.

Investors are reacting strongly to Lululemon's underperformance, indicating a lack of confidence in its management and growth strategy. Adobe's leadership transition could signal a shift in focus, but the market remains cautious given the challenges posed by AI advancements and the company's recent struggles.

11:56
PDT

Anil Kachravarti will take over as CEO of Adobe on December 1st.

Anil Kachravarti Narayan David Wadwani Adobe Fair Isaac Corp Bill Pulte U.S. federal housing finance agency CEO AI FEDFUNDS

– David Wadwani's departure raises questions about leadership choices at Adobe.

– Adobe's stock struggles reflect broader concerns about AI impacts.

– The credit bureau sector is under pressure following criticism from the U.S. federal housing finance agency.

– Fair Isaac Corp is also experiencing declines in the market.

leadership transitionAI disruptionregulatory scrutiny

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Anil Kachravarti, I hope I'm pronouncing it correctly, the leader of its marketing and analytics business, will take the post from December 1st. He's been with the company since 2020, so somewhat of a veteran right now, said to replace the current CEO Narayan, who's been leading the company for quite some time. Well, the twist here is that David Wadwani, who runs Adobe's creative business, he did not get picked. The market is kind of asking, why not? because he's leading the much bigger division, which is the creative division, and analysts thought he would be better placed for this position. Well, on his part, he said he will leave the company for another opportunity. So he's out, and now the market basically is just trying to figure out what the new transition will mean for the company. Obviously, this stock has been struggling for some time with AI disruption fears, down 60% since the pandemic, so again big shoes to fill there and that's ticker adbe adobe. Okay, Fair Isaac Corp, you have them coming in; they're also lower this morning. Yeah, there's not much good news for us too. I picked all the time movers, I'm sorry. The market is seeing a little bit of pressure, particularly hit among the credit bureau space, after U.S. federal housing finance agency director Bill Pulte issued renewed criticism of these bureaus for overcharging Americans.

Analysis

Adobe's stock is down 60% amid AI disruption fears, with Anil Kachravarti set to replace CEO Narayan starting December 1st. The market is questioning why David Wadwani, who leads Adobe's larger creative division, was not chosen for the role, as he departs for another opportunity.

11:54
PDT

Lululemon's stock down 17%, hitting an eight-year low.

Lululemon Heidi Poonam Goyal Tatiana Dari Lisa Abramowitz Carol Masser Tim Stenevec Bloomberg CEO Bloomberg Business Week Daily Bloomberg Radio Lisa Mateo PRIVATE

– Company cut its full-year outlook for the second consecutive quarter.

– New CEO Heidi faces challenges in brand differentiation.

– Investors may lack patience for a turnaround.

– Transparency and a clear vision are essential for recovery.

brand differentiationinvestor sentimentmarket volatility

▸ Full transcript

Politics, a forum for sophisticated conversation. This is Bloomberg surveillance. Bringing you up to the minute news whenever and wherever it happens. I'm Lisa Abramowitz in Rio de Janeiro, and this is Bloomberg. This is Bloomberg Business Week Daily with Carol Masser and Tim Stenevec on Bloomberg Radio and Television. All right, welcome back to Bloomberg Business Week Daily. Let's take another check of the markets right now. We have a bit of a mixed screen right now. S&P futures are in the red. We have Nasdaq futures pretty flat right now, not much movement. The two-year yield is at 4.37, that's up about four basis points. The yield on the 10-year is at 4.78, that is up about three basis points. What we want to do is take a deeper dive into the markets, and for that, we have Tatiana Dari. Okay, so let's take a look at some of these stocks on the move. Lisa Mateo, we're joined by Bloomberg News, Market's Live Strategist Tatiana Dari. Thank you for joining us. We were just talking to the CEO, I mean to Poonam Goyal about Lululemon. They have a new CEO, a lot going on with the company, and their stock isn't doing so well. Exactly. Lisa, stock down 17% right now, hitting an eight-year low. Investors are really punishing the company after an underwhelming earnings report. The company cut its full-year outlook for a second straight quarter.

Analysis

Lululemon's stock has dropped 17%, reaching an eight-year low following an underwhelming earnings report and a second consecutive cut to its full-year outlook. The new CEO, Heidi, faces significant challenges in redefining the brand and restoring investor confidence amidst increasing competition.

Investors are likely to be impatient as the turnaround plan may take up to 12 months to materialize, raising concerns about the company's ability to differentiate itself in a crowded market. The need for transparency and a clear vision from the new leadership is critical to regain customer traffic and market share.

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