WE CONTINUE ON "BLOOMBERG BUSINESSWEEK." ♪ ♪ ♪ ANNOUNCER: THE COUNTDOWN IS ON. EVERYTHING YOU NEED TO GET THE EDGE AT THE END OF THE MARKET DAY. THIS IS "THE CLOSE." ♪ JUST ONE HOUR LEFT IN THE TRADING DAY SCARLET: IN SIX HOURS LEFT TO VOTE IN NEW YORK.
LIFE FROM STUDIO 2 IN BLOOMBERG HEADQUARTERS IN NEW YORK, I AM SCARLET FU. KATIE: AND I AM KATIE GREIFELD. IF YOU THOUGHT THAT AFTER I WAS BE MORE EXCITING THAN THE DAY, YOU WERE OFF. THE RALLY IS BUILDING MOMENTUM. THE S&P 500 IS UP NEARLY ONE PERCENT. A LOT OF GAINS COMING FROM TECH.
NVIDIA LEADING THE WAY HIGHER, NASDAQ 100 HIGHER BY 1%. THE BOND MARKET HAS BEEN INTERESTING. WE HAVE BEEN HIGHER IDEALS. NOW WE ARE ALMOST COMPLETELY UNCHANGED ON THE 10-YEAR YIELDS, BUT IT'S ALL ABOUT THE LEVEL. JUST BELOW 4.30. YOU HAVE VOLATILITY LEAVING THE MARKET. THE VIX AT A 21 HANDLE.
SCARLET: AI ENTHUSIASM THANKS TO PELLETIER AND BIG-TECH ARE UNDERPINNING THE ADVANCE. AND FOR NOW, MARKETS SEEM TO BE FOLLOWING THE TRUMP TRADE. CRYPTOS'S PRODUCTS ARE CHARGING HIGHER AFTER DATA SHOWED THE U.S. SERVICE SECTOR EXPANDED AT THE FASTEST PACE IN TWO PLUS YEARS SO IT IS NOW A GAME TO SEE WHEN THE RACE WILL BE CALLED AND IN WHOSE FAVOR.
TIGHT POLLS SHOW IT'S A TOSSUP BETWEEN KAMALA HARRIS AND DONALD TRUMP WITH THE PREDICTOR LIKELY PRESIDING OVER A SPLIT CONGRESS. VOLATILITY HAS BEEN STEADILY TRENDING UP SINCE THE START OF SEPTEMBER AND IT WOULD EASE AFTER VOTES HAVE BEEN CAST. KATIE: AND ONE OF THE BATTLEGROUND STATES WE ARE KEEPING AN EYE ON IS MICHIGAN, WHERE ALL POSIES WILL BE CLOSED AT 9:00 EASTERN TIME, 8:00 P.M. LOCAL TIME, WHERE WE FIND
ROMAINE BOSTICK. HE IS IN THE CITY OF DETROIT. LET'S TALK ABOUT TURNOUT. YOU HAVE BEEN WATCHING TURNOUT IN MICHIGAN. WE COULD SEE A RECORD TODAY. WHAT DO WE KNOW SO FAR? ROMAINE: YEAH, THAT IS THE ANTICIPATION . POLLS OPENED ABOUT FIVE HOURS AGO. ELECTION OFFICIALS ARE EXPECTING NEAR OR RECORD TURNOUT. REMEMBER THE RECORD FOR THE STATE OF MICHIGAN WAS SET BACK IN 2020 170% OF THE ELECTORATE CAME OUT TO CAST THEIR VOTES.
THIS IS THE FIRST ELECTION CYCLE WHERE MICHIGAN ALLOWED EARLY VOTING, STARTED AS EARLY AS OCTOBER 19. OCTOBER 26 IN OTHER PARTS OF THE STATE. MORE THAN HALF OF THE ELECTORATE ALREADY CAST THEIR VOTES BEFORE WE CAME INTO TUESDAY. I SPENT TIME THIS MORNING AT A POLLING PLACE IN NORTHWEST DETROIT. WE NOW RELOCATED TO DOWNTOWN DETROIT, A REVITALIZED DOWNTOWN.
YOU CAN SEE BEHIND ME, A FREEWAY. SIGNIFICANT BECAUSE THE CANDIDATES HAVE SPENT A LOT OF TIME GOING UP AND DOWN THAT FREEWAY, ALL THE WAY DOWN TO FLORIDA AND MIAMI. BOTH CANDIDATE SPENDING AN INORDINATE AMOUNT OF TIME HERE IN THE STATE OF MICHIGAN AND NO OTHER STATE HAVE THEY SPENT MORE TIME OTHER THAN PENNSYLVANIA. KATIE: IT'S PRETTY WILD WHEN YOU PUT IT LIKE THAT, WE KNOW THE STATES ARE VERY HIGH. WE HAVE TALKED ABOUT HOW PEOPLE ARE VOTING. LET'S TALK ABOUT WHAT THEY ARE VOTING ON, THE ISSUES DRIVING PEOPLE, SPECIFICALLY IN MICHIGAN, TO THE POLLS.
WHAT ARE SOME OF THE TOP PRIORITIES? ROMAINE: WHEN YOU HAVE TO BREAK IT DOWN, IT'S TWO SEPARATE THINGS. ONE IS AT THE PRESIDENTIAL LEVEL, MOST PEOPLE ARE WORRIED ABOUT THE ECONOMY, THEY HAVE ISSUES WITH REPRODUCTIVE RIGHTS AND ISSUES WHEN IT COMES TO IMMIGRATION POLICY. FOREIGN POLICY WILL ALSO BE A BIG DETERMINANT OF WHO WINS THE ELECTION. BUT WHEN YOU GO DOWN BALLOT TO A KEY SENATE RATE, ELISSA SLOTKIN AND HER CHALLENGER, MIKE ROGERS, THE TWO BIG HOUSE DISTRICTS THAT ARE OPEN SEATS RIGHT NOW, THAT WILL BE MUCH MORE DETERMINANT BY JOBS. MANUFACTURING JOBS, EDUCATION, AND, MORE IMPORTANTLY, WHO SUPPORT TO THE AUTO INDUSTRY AND IN WHAT FASHION. BOTH CANDIDATES IN THAT SENATE RACE, ELISSA SLOTKIN AS WELL AS MIKE ROGERS, HAVE PUSHED BACK ON THE EV MANDATES COMING DOWN FROM THE FEDERAL GOVERNMENT.
BOTH HAVE DIFFERENT APPROACHES. MIKE ROGERS SAYING THAT BASICALLY WE FOCUS ON GAS AND TRADITIONAL-FUELED CARS. ELISSA SLOTKIN IS SUPPORTIVE OF GAS POWERED VEHICLES, BUT WANTS TO SEE MORE OF A MIX WITH HYBRIDS AND EV'S AS A WAY TO COUNTER THE POTENTIAL ONSLAUGHT OF VEHICLES COMING OUT OF CHINA. SCARLET: YEAH, IT'S AN IMPORTANT REMINDER THAT THE DOWN-BALLOT RACES ARE JUST AS CRITICAL IN MICHIGAN AS THE PRESIDENTIAL RACES. TALK ABOUT MICHIGAN IS
IMPORTANT TO THE OVERALL ELECTORAL COLLEGE. 15 ELECTORAL VOTES BUT REALLY IT IS A HARBINGER OF HOW THE NATION VOTES AS A WHOLE. ROMAINE: MICHIGAN HAS BEEN A DEMOCRATIC STRONGHOLD FOR DECADES NOW, BUT IT HAS ALWAYS BEEN A BIG PURPLE. , IN FACT, IF YOU LOOK AT WHO THEY VOTED FOR IN PRESIDENTIAL RACES, IN THE SENATE, AND AT THE HOUSE LEVELS IT KIND OF ALTERNATES BETWEEN DEMOCRATS AND REPUBLICANS EVERY FEW YEARS. MOST RECENT YEARS, THIS HAS BEEN A SOLIDLY DEMOCRATIC STATE. THAT BLUE WALL, IF YOU WILL,.
TRUMP'S FINALLY CRACKED IN 2016, BUT BY OWNING A MARGIN OF 11,000 VOTES. , IN FACT, THAT WAS THE NARROWEST ON A PERCENTAGE BASIS THE NARROWEST VICTORY BY A PRESIDENTIAL CANDIDATE IN THIS STATE IN HISTORY. IN FACT THERE HAS ONLY BEEN TWO OTHER TIMES WHEN WE HAD A PRESIDENTIAL RACE DECIDED IN THIS STATE BY LESS THAN 1%. . YOU HAD TO GO BACK TO WENDELL WILKIE, WHEN HE RAN AGAINST FDR. HE WON MICHIGAN THAT YEAR. BUT, OF COURSE, FBI WON THE NATIONAL ELECTION. PRIOR TO THAT, YOU HAD TO GO BACK TO THE 1800S WHEN GROVER CLEVELAND LOST THE STATE OF MICHIGAN. SCARLET:
FANTASTIC CONTEXT. ROMAINE BOSTICK APPRECIATE YOU JOINING US, ANCHOR, OF "THE CLOSE." WE WILL BE CHECKING IN WITH HIM IN THE NEXT HOUR. INVESTORS ARE TRYING TO GAME THE ELECTION WITH THEIR INVESTMENT PICKS.
OUR NEXT GUEST IS DAVID BIANCO, CIO AT DWS GROUP. HE SAYS IF HARRIS WINS, IT WILL BE UTILITIES, REITS AND STAPLES THAT WILL OUTPERFORM. HE JOINS US NOW. I THINK WHAT IS SURPRISING TO PEOPLE IS HOW STRONG THIS MARKET RALLY IS ON ELECTION DAY. AS THIS MARKETS HAVE DECIDED WHAT WE ARE GOING TO GET. DAVID: HAPPY ELECTION DAY. MARKETS SEEM QUITE CONFIDENT IN THE OUTCOME.
ALTHOUGH THAT IS SURPRISING. THE POSIES ARE TIGHT. HOW DO YOU READ MARKETS? IF YOU LOOK AT THE EQUITY MARKET AND BELOW THE SURFACE, CERTAIN SECTORS, SEEMS LIKE THE EQUITY MARKET IS CONFIDENTLY PRICING A TRUMP WIN. THAT MAY BE PUTTING TOO HEAVY ODDS ON THAT OUTCOME. WE HAVE TO TAKE THIS DAY BY DAY.
I AM THINKING THAT THERE'S A GOOD CHANCE, 20% OR MORE CHANCE THAT WE DON'T KNOW THE OUTCOME IN A DECISIVE WAY BY THE OPENING BELL TOMORROW. IT'S IMPORTANT TO TAKE THIS DAY-BY-DAY. I AM SURE WILL BE TALKING MORE ABOUT THIS. SCARLET: NOT JUST GETTING A NOT COME BY TOMORROW MORNING, IF WE DON'T GET AN OUTCOME BY TOMORROW'S CLOSE, WHAT IS THE DATA SHOW IN TERMS OF EQUITIES? DAVID: IF WE DON'T GET AN OUTCOME BY THE CLOSE TOMORROW, I THINK THE S&P IS DOWN A FEW PERCENT BECAUSE IT'S AN INDICATION THAT THIS IS A CONTESTED ELECTION AND IT WILL TAKE SOME TIME. THE 2000 ANALOG, THE S&P 500
FELL 8% FROM ELECTION DAY UNTIL IT WAS RESOLVED, AND IT TOOK A FEW WEEKS. THIS TIME AROUND IT MAY BE MORE NERVE-RACKING EVEN THOSE INVOLVED HERE. I THINK THAT IS A SIGNIFICANT RISK JUST FOR TOMORROW MORNING AND THE REST OF THE WEEK. THEN WE HAVE A LOT TO LEARN OVER THE COMING DAYS AND WEEKS AND MONTHS ABOUT WHO THE CANDIDATE IS, VERSUS THE WAY THEY CAMPAIGNED -- THE WAY THEY CAMPAIGNED VERSUS THE WAY THEY WILL GOVERN IF THEY WIN SOMETHING INVESTORS, ARE VERY CURIOUS ABOUT. KATIE: LET'S TALK ABOUT THE PRICE ACTION.
YOU MENTIONED THE EQUITY MARKET SEEMINGLY PRICING IN A TRUMP SAW QUINN. SIMILARLY YOU COULD MAKE THE CASE FOR THE BOND MARKET, THE BIG CLIMB UP IN YIELDS SINCE SEPTEMBER. WITH THAT IN MIND, IF TRUMP ACTUALLY WINS, IS THAT ALREADY PRICED IN? DAVID: LARGELY. ANYTHING AT ABOUT 5800 IS PRETTY MUCH A FULLY PRICED IN TRUMP VICTORY, PARTICULARLY UNTIL WE FIND OUT MORE THINGS LIKE TARIFFS AND THE GEOPOLITICAL CIRCUMSTANCES. IT'S EASY FOR THE S&P TO FIND ITS WAY TO 5500 OR EVEN LOWER SHOULD IT TAKE TIME TO RESOLVE THE OUTCOME OF THE ELECTION. IF HARRIS WINS, EVEN IF IT
TURNS OUT TO BE A REPUBLICAN SENATE WHICH REPUBLICANS ARE COUNTING ON TO PREVENT TAX HIKES, NO TAX HIKES ARE PRICED INTO THIS EQUITY MARKET, PARTICULARLY NOT FOR CORPORATE TAXES. BUT I CAN SEE HARRY'S CONVINCING TWO OR THREE RED-STATE SENATORS TO RAISE THE CORPORATE TAX RATE AND THE INCOME TAX RATES ON BLUE STATE HIGH INCOME EARNERS. SO A LOT OF FIND OUT. IT IS AN UNCERTAIN PERIOD, FOR
SURE. KATIE: THE CORPORATE TAX, THERE IS A LOT OF DAYLIGHT BETWEEN WHAT KAMALA HARRIS IS PROPOSING AND WHAT DONALD TRUMP IS PROPOSING. WE HAVE SEEN SOME BANKS GAME OUT HOW THAT WOULD IMPACT EARNINGS POWER.
I AM CURIOUS WHAT YOUR TAKE IS WHEN YOU LOOK AT THE S&P 500 UNDER A HIGHER TAX RATE SUCH AS 28%, WHAT DOES THAT LOOK LIKE? DAVID: RIGHT NOW THE STATUTORY RATE IS 21%. TRUMP, WE WOULD EXPECT THAT HE DEFENDS THAT AND EVEN USES A VETO TO PROTECT THAT TAX RATE. IF HARRIS WINS, 28% TAX RATE, THAT WITH HIS S&P PROFITS BY 7%.
VARYING BY COMPANY AND INDUSTRY GIVEN THE GEOGRAPHY MIX. IN CERTAIN INDUSTRIES LIKE REITS DON'T PAY TAXES, SO IF SHE WINS, THE BOND MARKET PROBABLY TAKES SOME DEGREE OF COMFORT THAT THERE WILL BE TAX HIKES THAT SOME OF THE ECONOMY AND KEEP INFLATION LOW. THE 10-YEAR YIELD WOULD COME DOWN A BIT AND YIELDS AND STAPLES AND REITS BENEFIT. SCARLET: WE ALSO HAVE A FED MEETING BEGINNING TOMORROW AND CONCLUDE THURSDAY.
YOU MENTIONED YOU ARE KIND OF SURPRISED THAT THE FED HAS BEEN UNWILLING TO EVEN DISCUSS THE DEFICIT AND HOW WE ADDRESS THAT. DAVID: IT IS SURPRISING. IT'S HARD TO UNDERSTAND WHY THEY WERE REALLY GOING TO CUT TWO DAYS AFTER THE ELECTION. I WOULD THINK THEY SHOULD TAKE
SOME TIME TO FIGURE OUT THE CIRCUMSTANCES AND WHAT TYPE OF POLICIES WERE TO COME AFTER THE SELECTION. BUT IF IT IS A CONTESTED ELECTION AND THERE IS NO DECISION BY 2:00 P.M. THURSDAY, MAY BE A 50-BASIS POINT CUT WOULD BE APPROPRIATE, BUT I THINK THIS ELECTION ABSOLUTELY HAS ELECTIONS. BECAUSE MONETARY POLICY NEEDS TO CALIBRATE BASED ON WHAT THE FISCAL POLICIES ARE. WE DON'T KNOW. SCARLET: JIM BIANKA -- DAVID BIANCO, WE
APPRECIATE YOU JOINING US TODAY, CIO OF THE AMERICAS AT DWS GROUP. APPRECIATE YOU JOINING US TODAY. THIS IS "THE CLOSE" ON BLOOMBERG. KATIE: KATIE: WE ARE KEEPING AN EYE ON SUPER MICRO. THE COMPANY GETTING READY TO RELEASE A BUSINESS UPDATE LATER TODAY. OF COURSE, THE SERVER
MAKER'S RESULTS ARE LIKELY TO BE OVERSHADOWED BY QUESTIONS OVER DELIST AND CONCERNS, AFTER IT FAILED TO FILE ITS ANNUAL 10K REPORT, AND THEIR AUDITOR RESIGNED. JOINING US TO DISCUSS IN THE BLOOMBERG INTELLIGENCE'S SENIOR HARDWARE AND NETWORKING ANALYST, WOO JIN WOO. YOU WERE REMINDING US DURING THE COMMERCIAL BREAK THAT IS NOT A REPORT, IT'S A BUSINESS UPDATE. WHAT ARE WE HOPING TO LEARN AFTER THE CLOSE TODAY? >> QUITE FRANKLY, I DON'T KNOW WHAT WILL BE DISCLOSED BECAUSE THEY DON'T HAVE AN AUDITOR. THEY MIGHT JUST HAVE A PRESS RELEASE. NOT EVEN SURE IF THEY WILL HAVE AN EARNINGS CALL. ONE THING I WILL SAY IF THEY
HAVE PROVIDED AN UPDATE IN TERMS OF BUSINESS ACTIVITY BACK IN EARLY OCTOBER OF THE NUMBER OF SERVERS THAT THEY HAVE SOLD AND HOW MANY GPUS -- THEY SOLD 100,000 GPUS SINCE JUNE. IF THEY CAN REPORT DECENT NUMBERS, THE QUESTION IS, ARE THEY GOING TO PROVIDE AN OUTLOOK? I DOUBT THAT. SCARLET: YEAH,. NO AUDITOR, A REMINDER. SUPER MICRO WAS A BENEFICIARY
OF ALL THE AI EXCITEMENT AND AS A SERVER MAKER, IT IS IN THE RIGHT BUSINESS LINE. IT ACCOUNTS FOR A PERCENT OF NVIDIA SALES. DO WE THINK THERE WILL BE ANY DISRUPTION THAT THIS MIGHT CAUSE TO NVIDIA, WHICH IS DUE TO REPORT EARNINGS LATER THIS MONTH? WOO JIN: THAT'S A GOOD QUESTION. FROM AN NVIDIA STANDPOINT, I DON'T THINK SO. WE CAME BACK FROM A CONFERENCE
A COUPLE OF WEEKS BACK, AND WHAT WE SAW WAS A LOT MORE AIA SERVER VENDORS. THIS WAS NOT THE CASE A YEAR AGO WHERE SUPER MICRO AND DELL WERE AMONG THE LEADERS. NVIDIA SEEMS TO HAVE SECURED THE SUPPLY CHAIN SO THEY CAN REALLOCATE THOSE GPUS TO SOMEBODY ELSE, TO A TAIWANESE ODM OR SOMEBODY ELSE. KATIE: A NICE REMINDER THAT THE DAISY CHAIN BETWEEN THE DIFFERENT COMPANIES IS PRETTY INTRICATE. LET'S TALK ABOUT WHAT A FALL FROM GRACE IT HAS BEEN FOR SUPER MICRO.
EIGHT MONTHS AGO WE WERE TALKING ABOUT SHARES AT A RECORD HIGH. NOW WE ARE TALKING ABOUT THE POSSIBILITY OF AN S&P 500 REMOVAL. SHARES WERE JUST ADDED IN MARCH. IT HAS BEEN PRETTY SPECTACULAR. WOO JIN: IT HAS BEEN. I WILL SAY THAT THE SHARE DROP DOESN'T ALIGN WITH THE FUNDAMENTALS. THERE ARE SOME TECHNICAL FACTORS THAT ARE DRIVING THE SHARES DOWN.
IF YOU THINK ABOUT IT, A DE-LISTING , WHICH HURTS SOME SHARE PROVENANCE. KEEP IN MIND, 51% OF THE SHARES ARE OWNED BY ITS ADDITIONS. THEY MAY BE FORCED TO SELL. THERE ARE ABOUT 24% OF THE
SHARES OWNED BY PASSIVES. IF THEY GET KICKED OFF THE S&P, THERE IS ANOTHER FOR SELLING ACTIVITY -- ANOTHER FORE-SELLING ACTIVITY. SCARLET: ITS AUDITOR RESIGNED AND THEREFORE THEY CAN'T RELEASE FINANCIAL RESULTS. WHAT ARE YOUR THOUGHTS WHEN IT COMES TO CORPORATE GOVERNANCE AND HOW SERIOUSLY SHOULD WE BE CONCERNED ABOUT THAT? WOO JIN: SO THIS IS THE SECOND TIME THAT -- WELL, THEY HAVE ALREADY BEEN DELISTED ONCE FOR ACCOUNTING FRAUD OR OTHER ISSUES. WHEN YOU READ THROUGH THE FILING, IN TERMS OF THE EARNST & YOUNG RESIGNATION, THERE WERE WORDS THAT INCLUDED INTEGRITY OF THE BOARD. I HAVEN'T READ ANYTHING LIKE
THAT FOR QUITE SOME TIME NOW. SO I AM NOT GOING TO POINT TO FRAUD RIGHT AWAY. BUT WHEN THE AUDITOR HAS A TOUGH TIME SIGNING OFF ON THE 10K FILING BECAUSE OF INTEGRITY ISSUES, WHERE THERE IS SMOKE, THERE MIGHT BE SOME FIRE. SCARLET: BLOOMBERG INTELLIGENCE OFFICIALS WOO JIN HO GIVING US MORE ON SUPER MICRO.
COMING UP, THE 53-DAY STRIKE AGAINST BOEING IS FINALLY OVER. NEXT WE WILL TALK ABOUT THE LONG-TERM RAMIFICATIONS FOR THE AIRCRAFT MAKER. THIS IS "THE CLOSE" ON BLOOMBERG. ♪ SCARLET: TIME NOW FOR OUR TOP CALLS, A LOOK AT SOME OF THE BIG MOVERS OFF THE BACK OF ANALYST RECOMMENDATIONS. WE START WITH CARVANA, RAISED TO EQUAL WEIGHT AT MORGAN STANLEY, GETTING HUGE BOOST TO 200 $60 FROM 10. THE ANALYST SAYS THE QUARTERLY
REPORT WAS FAR STRONGER THAN EXPECTED AND ITS INCREASED PROFITABILITY TOOK THE MARKET BY SURPRISE AND JUSTIFIES THE STARK'S RERATING. SHARES OF 5.5%. KATIE: BURSTING UPGRADED EBAY TO OUTPERFORM FROM MARKET PERFORM. THE ANALYST SAYS HE IS INCREASINGLY ENCOURAGED BY EBAY'S PROGRESSION ON GROSS MERCHANDISE VALUE GROWTH AFTER LAST WEEK'S SELLOFF FOLLOWING ITS QUARTERLY REPORT. THE ANALYST NOW SEES IT AS AN ATTRACTIVE BUYING OPPORTUNITY FOR INVESTORS AND AID THEY SEEM TO AGREE BECAUSE SHARES ARE UP. SCARLET: AND DOLLAR TREE, A DOWNGRADE AFTER THE CEO ANNOUNCED HE WAS STEPPING DOWN. TELLS THE ANALYSTS SAYING THAT
HIS DEPARTURE RELEASES CONFIDENCE IN DOLLAR TREE SHOW STRATEGY HEADING INTO THE HOLIDAY SEASON. SHARES OF 0.5% RIGHT NOW. THOSE ARE SOME OF OUR TOP CALLS. LET'S PROVE IT TO ONE OF THE MOST TALKED ABOUT COMPANIES. . BOEING 38% WAGE INCREASE OVER FOUR YEARS, FINALLY ENDING THE STRIKE. THE UNION PRESIDENT WAITED IN AFTER THE VOTE. >> THEY SECURED A VICTORY, VOTED BY 59% TO ACCEPT THE AGREEMENT AND THEY GET TO MOVE FORWARD.
THE STRIKE WILL I'M NOW IT. IS OUR JOB TO GET BACK TO WORK AND START BUILDING AIRPLANES AND BRING THIS COMPANY BACK TO FINANCIAL SUCCESS. SCARLET: JOINING US FOR MORE IS DAVID STRAUSS FROM BARCLAYS WITH AN EQUAL-WEIGHT RATING ON BOEING.
THE S&P 500 IS GAINING 1% AND EVERYTHING IS MOVING HIGHER. SHOULDN'T THE FACT THAT THE STRIKE ENDED BECAUSE FOR A RELIEF RALLY IN THE STOCK? DAVID: THANKS FOR HAVING ME. WE ARE A LITTLE SURPRISED THAT THE STOCK IS DOWN. AT THE SAME TIME, BOEING JUST DID A LARGE EQUITY OFFERING ABOUT 5% BELOW WHERE THE STOCK IS CURRENTLY TRADING, SO WE THINK THIS COULD REPRESENT SOME PROFIT TAKING BY INVESTORS THAT GOT INTO THE STOCK AT AROUND 140 THREE DOLLARS, WHICH IS WHERE THE EQUITY OFFERING WAS. WITH THE STRIKE OUT OF THE WAY, THE HARD WORK BEGINS FOR BOEING. THERE ARE NO SPECIFIC -- FROM
HERE. THEY SEEM TO GET BACK TO BUILDING AND DELIVERING AIRPLANES. WE THINK IT IS JUST SOME SHORT-TERM TRAFFIC TAKING -- PROFIT TAKING. SCARLET: UNION PRESIDENT JON HOLDEN SAYING LET'S GET BACK TO WORK. WHAT DO YOU THINK IN TERMS OF HOW LONG IT WILL TAKE TO RAMP UP PRODUCTION TO GET BACK TO HER THEY NEED TO BE? DAVID: IT WILL TAKE A WHILE. LAST THINGS BOEING CAN AFFORD TO DO IT NOW IS TO GO TO QUICKLY AND HAVE QUALITY ISSUES OR MANUFACTURING ISSUES.
WE EXPECT THE NEW CEO TO TAKE IT VERY SLOW. THE COMPANY BASICALLY WARNED ABOUT THAT IN THE LAST CALL. THEY SET EXPECTATIONS ARE VERY LOW FOR CASH FLOW THIS YEAR AS WELL AS FOR NEXT YEAR. THE EXPECTATION IS THAT THEY WILL GO SLOWLY PLUS, YOU HAVE THE THANKSGIVING HOLIDAYS. CHRISTMAS HOLIDAYS WHICH WOULD NORMALLY SLOW THINGS DOWN ANYWAY. WE THINK IT'S GOING TO TAKE A
WHILE TO GET BACK TO THE 25 PER MONTH RATE THAT BOEING HAD ON THE 737 MAX. THE STRIKE. KATIE: YOU SAID THE CEO WILL TAKE THINGS SLOW. BUT THE COMPANY ALREADY
ANNOUNCED A 10% REDUCTION IN THEIR WORKFORCE. IT HAS BEEN REPORTED THAT THEY ARE LOOKING AT DIFFERENT BUSINESSES TO SEE WHAT MIGHT CHANGE. WHAT ARE YOU KEEP AN EYE OUT TO MARK THE NEXT AGE OF PROGRESS? DAVID: BY FAR THE MOST IMPORTANT THING FOR BOEING'S TO GET BACK TO BUILDING 737 MAX AIRPLANES AND DELIVER. THEIR LINES ARE WAITING. BOEING HAS A HUGE BACKLOG THAT IS THEIR MAJOR SOURCE OF CASH GENERATION. SO BY FAR AND AWAY, THAT IS
THEIR BIGGEST ISSUE. WE ARE GOING TO BE TRACKING THE NUMBER OF AIRPLANES THAT FLY OFF THE LINE AND TRACKING HOW MANY THEY ARE ABLE TO DELIVER TO THE AIRLINES. BEYOND THAT, THEY PROVIDED ENOUGH CUSHION IN TERMS OF THE BALANCE SHEET THROUGH THE OFFERING. BUT THERE IS THE POTENTIAL FOR THEM TO THE BEST OUT OF THINGS GIVEN WHERE VALUATIONS ARE TODAY FOR THIS KINDS OF PROPERTIES, THAT COULD BRING MORE VALUE AND GIVE MORE CREDENCE TO WHERE BOEING IS CURRENTLY TRADING. KATIE: LIKE YOU SAID, THE FOCUS HAS TO BE GETTING MANUFACTURING UP TO SPEED AND, OF COURSE, PRODUCTION QUALITY. WHEN YOU THINK ABOUT IT THINGS PEOPLE MIGHT CONSIDER ON THE SIDE, THE SPACE BUSINESS, FOR EXAMPLE, DO YOU THINK WE COULD SEE BOEING EXPLORE A SALE THERE THEY HAVE? DAVID: A JOINT VENTURE WITH LOCKHEED MARTIN, APPARENTLY IT HAS BEEN UP FOR SALE FOR QUITE A WHILE.
WE ARE NOT THAT SURPRISED IT IS PROBABLY A BIT DIFFICULT TO SELL THE BUSINESS RIGHT NOW DUE TO COMPETITION WITH SPACEX. BEYOND THAT, ITS PORTFOLIO IS RELATIVELY SMALL. THEY HAVE A PROBLEM THAT HAS BEEN -- A PROGRAM THAT HAS BEEN PROBLEMATIC. IT MIGHT BE POSSIBLE TO SHRINK THE LOSSES THERE.
THE MORE MEANINGFUL SERVICES WOULD PROBABLY COME OUT OF THEIR SERVICES PORTFOLIO. KATIE: DAVID STRAUSS OVER AT BARCLAYS. COMING UP, MILLIONS OF VOTERS ARE HEADING TO THE POLLS RIGHT NOW. SCARLET: IT IS JUST ABOUT 3:30 P.M. IN NEW YORK. THIS IS THE "COUNTDOWN TO THE
CLOSE." I AM SCARLET FU. KATIE: AND I AM KATIE GREIFELD. IT'S ELECTION DAY AND YOU CAN SEE THAT IN THE STOCK MARKET. LOOK AT THE TWO MOST ACTIVELY TRADED SHARES, DJT AND PALANTIR. COULD BE A TRUMP PLAY. SCARLET: BECAUSE OF PETER THIEL. HE IS A BIG BOOSTER OF DONALD TRUMP I WANT TO GO TO DJT FOR A MOMENT BECAUSE THAT STOCK HAS BEEN ALL OVER THE PLACE TODAY. IT WAS FLYING HIGH AND THEN A TANK ABOUT 30 MINUTES AGO AND WAS SUSPENDED FROM TRADING BECAUSE OF THE VOLATILITY.
IT'S NOW BACK IN THE GREEN AGAIN. 4.5 PERCENT HIGHER. IT'S BECOME A PROXY FOR THE ODDS OF DONALD TRUMP WINNING THE ELECTION. KATIE: IT'S BEEN WILD. FIRST OF ALL, THE VOLATILITY.
ALSO THE VOLUME. AT ANCHOR IN A SHOW EVERY DAY. EVERY DAY PREMARKET, IT'S AMAZING. IT'S OFTEN DJT THAT IS THE MOST POPULATED TRADE. THERE IS BIG MONEY BEHIND THIS EVEN IF IT'S ALL RETAIL. A LOT OF VOLUME. WE WILL CONTINUE TO WATCH THAT ONE TODAY, HIGHER TODAY BY 5%. PEDESTRIAN WHEN YOU CONSIDER
THE HISTORY OF THE STOCK. LET'S CONTINUE ON THE ELECTION RIGHT NOW BECAUSE MANY ARE TURNING TO THE HISTORY BOOKS ON INSIGHT -- FOR INSIGHT ON HOW THIS ELECTION CYCLE WILL PLAY OUT. YOUR RESEARCH FROM GOLDMAN SACHS FINDS THAT THE INCUMBENT PARTY WINS THE PRESIDENTIAL ELECTION IN THE POST-WORLD WAR II ERA UNLESS THERE IS. A RECESSION SINCE 1951 THE
INCUMBENT HAS LOST WHEN THE ELECTION TOOK PLACE SOON AFTER A RECESSION. THERE IS ALSO TWO INSTANCES WHEN THE WHITE HOUSE PARTY LOST, WHEN THE INCUMBENT CANDIDATE WAS NOT ON THE BALLOT. SO, WILL HISTORY REPEAT ITSELF OR WILL THIS YEAR'S RESULTS BUCK THE TREND? LET'S TALK ABOUT THAT WITH JIM LINDSAY, DISTINGUISHED SENIOR FELLOW AT THE COUNCIL ON FOREIGN RELATIONS. WHEN YOU TALK ABOUT THIS STRANGE ECONOMIC CYCLE WE HAVE BEEN LIVING IN SINCE THE PANDEMIC, HOW DO YOU THINK THAT WILL FACTOR INTO THE VOTES TODAY? JIM: THANK YOU FOR HAVING ME ON. CLEARLY THE ECONOMY IS ISSUE NUMBER ONE WITH AMERICAN VOTERS. IF YOU LOOK AT THE POLLING
DATA, A LOT OF AMERICANS ARE CONVINCED THAT THEY ARE WORSE OFF THAN THEY WERE FOUR YEARS AGO EVEN THOUGH BY MOST STANDARD MEASURES OF ECONOMIC PERFORMANCE, THE U.S. ECONOMY IS GOING GANGBUSTERS. I THINK IT IS GOING TO GREATLY INFLUENCE THE OUTCOME. THAT BEING SAID, ECONOMICS IS NOT THE ONLY ISSUE ON THE BALLOT TODAY. KATIE: WELL, TALK TO US A BIT ABOUT WHAT THOSE OTHER ISSUES ARE, WHAT IS HIGH ON THE PRIORITY LIST AS AMERICANS HEAD TO THE POLLS? OF COURSE WE TALK ABOUT INFLATION AND THE LABOR MARKET ALL THE TIME, BUT YOU MAKE A GOOD POINT THAT IT IS NOT THE ONLY THING. JIM: OBVIOUSLY, A LOT OF THE RECENT ECONOMIC NEWS HAS BEEN GOOD, BUT THE OTHER ISSUE THAT WILL BE DRIVING PEOPLE TO THE POLLS -- ABORTION, WITH THE OVERTURNING OF ROE V.
WADE, THE DOBBS DECISION HAS BEEN A MAJOR ISSUE ACROSS THE COUNTRY. WE HAVE SEEN DEMOCRATS BENEFIT AT THE POLLS IN THE WAKE OF THAT. OBVIOUSLY THE CONDITION, THE SITUATION AT THE SOUTHERN BORDER IS A MAJOR ISSUE FOR PEOPLE.
FOR MANY AMERICAN SOX IT COMES DOWN TO THE TWO CANDIDATES AT THE TOP OF THE TICKET, WHETHER YOU BELIEVE THEY WILL STRENGTHEN AMERICAN DEMOCRACY OR POSE A THREAT TO IT. SCARLET: WE CAN DEFINITELY FOCUS ON THE TWO CANDIDATES AT THE TOP OF THE BALLOT FOR THE U.S.. BUT WHEN YOU LOOK AT THE ELECTIONS THAT HAVE TAKEN PLACE ACROSS THE GLOBE IN 2024, INCUMBENTS EVERYWHERE HAVE BEEN PRETTY UNPOPULAR. YOU SAW IT IN THE U.K. WHERE THE INCUMBENT DIDN'T
WIN, FRANCE'S COALITION LOST SEATS AND MOST RECENTLY IN JAPAN, THE LDP SUFFERED ONE OF ITS WORST ELECTORAL RESULTS. WHAT DOES IT MEAN THAT VOTERS ARE DISILLUSIONED WITH THE INCUMBENT ACROSS THE GLOBE AND HAVE CHOSEN THEIR CHALLENGERS TO LEAD THE COUNTRY? JIM: I THINK IT'S PART OF THE FALLOUT FROM COVID-19 WHICH SHOOK UP A LOT OF ECONOMIES AROUND THE WORLD AND CHALLENGED GOVERNMENTS WITH MANY ISSUES AND SOME OF THEM DIDN'T HANDLE THEM TERRIBLY WELL. WE HAVE SEEN THE RESULTS OF THE, "AT THE BALLOT BOX. I THINK IF YOU LOOK AT THE U.S., IN SOMEWAYS IT MAY BREAK THE TREND. IF YOU LOOK AT PUBLIC OPINION POLLS, OBVIOUSLY THIS ELECTION IS A NAILBITER. IT COULD GO EITHER WAY. I THINK A LOT OF THE OTHER ELECTIONS YOU REFERRED TO, THE FACT IS THAT GOING INTO THE YEARLY ELECTION, IT WAS CLEAR THAT INCOME IT WAS GOING TO LOSE AND LOSE SIGNIFICANTLY.
I THINK WHAT IS DIFFERENT HERE IS THAT UNLIKE THE OTHER COUNTRIES, THE AMERICAN ECONOMY IS ACTUALLY PERFORMING PRETTY WELL. AND TO SOME EXTENT, KAMALA HARRIS IS BOTH AN INCUMBENT AND NOT AN INCUMBENT. BEFORE JOE BIDEN DROPPED OUT, IT LOOKED AS IF DONALD TRUMP WAS GOING TO RUN AWAY WITH THE ELECTION. THE SHIFT FROM BIDEN TO HARRIS CREATED THE OPPORTUNITY FOR HER AND DEMOCRATS MORE BROADLY TO ARGUE THAT THEY ARE THE AGENTS OF CHANGE. SCARLET: AND I AM GLAD YOU BRING THAT UP, IT'S HARD TO MAKE A CASE THAT HARRIS IS THE STATUS QUO WHEN, IN FACT, IS A VERY DIFFERENT CANDIDATE THAN JOE BIDEN.
NOW THAT SHE HAS TEAMED UP WITH LIZ CHENEY AND OTHER REPUBLICANS WHO HAVE FALLEN OUT WITH DONALD TRUMP, DOES NOT CREATE ENOUGH OF A CHANGE? A DIFFERENT CANDIDATE FROM THE STATUS QUO? JIM: I THINK WE WILL FIND OUT ONCE ALL THE VOTES ARE COUNTED. THIS IS THE BIG QUESTION HANGING OVER THE ELECTION. AGAIN, THE POLLS MAY HAVE GOTTEN IT RIGHT OR THEY MAY BE OFF BUT CLEARLY, PUT INTO THIS ELECTION, IT IS NECK AND NECK. KATIE: LET'S TALK ABOUT THE POLLS. LOOKING AT YOUR RECENT WRITING, HE POINTED AT 2016 AND 2020, ESPECIALLY IN 2016 WHEN THE POLLS DIDN'T INFORM REALITY. FEELS LIKE WE HAVE BEEN WITHIN THE MARGIN OF ERROR, A DEAD HEAT FOR MONTHS.
FOR THE AVERAGE VOTER, WHAT IS ONE TO TAKE FROM THAT? JIM: I THINK YOU HAVE TO UNDERSTAND THE HISTORY OF POLLS. POLLS IN 2016 AND 2020 CLEARLY UNDERESTIMATED DONALD TRUMP STRENGTH. THAT HAS A LOT TO DO WITH THE DIFFICULTY IN REACHING OUT AND ACTUALLY GETTING RESPONSES FROM TRUMP VOTERS. BUT 2022, DURING THE CONGRESSIONAL MIDTERMS WHAT HAPPENED WAS POLLS UNDERESTIMATED THE STRENGTH, OF DEMOCRATS AND INDEED DOING THIS PRIMARY SEASON, POLLS, DID NOT UNDERESTIMATE DONALD TRUMP STRENGTH. THEY EXAGGERATED DONALD TRUMP
STRENGTH. SO GOING INTO THIS, THAT PERSON IS HOW ARE THE POLLS GOING TO END UP? AND I WILL NOTE THAT THE POSTERS HAVE TRIED TO LEARN FROM THEIR MISTAKES AND THEY ARE TRYING TO IMPROVE THE WAY THEY GO ABOUT AND DO THOSE POLLS. HOWEVER THE POLLS TURN OUT AFTER THE VOTE IS COUNTED, THEY WILL BE GOING BACK THROUGH THEIR METHODS AND ASKING WHAT NEEDS TO BE TWEAKED FOR 2026 AND 2028. SCARLET: I WANT TO GO BACK TO THE IDEA OF CHALLENGER VERSUS STATUS QUO, BECAUSE WE TALKED ABOUT HOW HARRIS REPRESENTS A CHANGE FROM THE STATUS QUO, CAN DONALD TRUMP REALLY BE CONSIDERED A CHALLENGER WHEN HE IS A KNOWN QUANTITY, WHEN HE HAS ALREADY PRESIDED OVER THE ADMINISTRATION? WHAT IS IT ABOUT THE PLATFORM HE HAS BEEN RUNNING ON, THE NARRATIVE THAT HE HAS BEEN ABLE TO PUSH THAT HAS CONVINCED A SIZABLE PORTION OF THE ELECTORATE THAT HE IS HH CANDIDATE? JIM: HE IS ARGUING THAT HE IS THE CHANGED CANDIDATE BECAUSE HE HAS BEEN OUT OF OFFICE FOR FOUR YEARS. .
HIS PITCH TO THE PUBLIC HAS BEEN HE WOULD HAVE BEEN BETTER OFF IF I HAD STAYED ON SO BRING ME BACK IN. ONE OF THE INTERESTING THINGS ABOUT THE HARRIS CAMPAIGN IS HOW THEY HAVE TRIED TO POSITION HER AS THE CANDIDATE OF CHANGE. HER ARGUMENT TO THE AMERICAN PUBLIC IS THAT IT IS TIME TO BREAK. . FROM THE TRUMP-ERA AND MOVE ON. HAVE A NEW GENERATION OF
LEADERSHIP. NEW GENERATION THAT IS FOCUSED ON TRYING TO FIND SOLUTIONS AND TO BRING AMERICA TOGETHER RATHER THAN FOCUSING ON AMERICA'S DIVISIONS. AND, AGAIN, WILL FIND OUT IN THE NEXT DAY OR TWO, WHICH OF THOSE ARGUMENTS PERSUADED ENOUGH OF VOTERS TO GIVE VICTORY IN THE ELECTORAL COLLEGE TO ONE CANDIDATE OR THE OTHER. SCARLET: JIM LINDSAY IS THE DIRECTOR OF FELLOWSHIP AFFAIRS AT THE COUNCIL ON FOREIGN RELATIONS.
THANK YOU. COMING UP,, WE ARE LOOKING AT SHARES OF PALANTIR POPPING HIGHER AFTER DELIVERING THIRD-QUARTER RESULTS THAT BEAT ESTIMATES THEY ALSO RAISED THEIR FULL-YEAR FORECAST IT IS OUR STOCK OF THE HOUR. THE STOCK IS UP 25%. THIS IS "THE CLOSE" ON BLOOMBERG. [APPLAUSE] SCARLET: YOU ARE LOOKING AT HARRIS CAMPAIGN HEADQUARTERS IN WASHINGTON WHERE VICE PRESIDENT KAMALA HARRIS JUST WAS, SHE WILL MAKE HER WAY TO HOWARD UNIVERSITY LATER ON THIS EVENING FOR HER FINAL ELECTION WATCH RESULTS. ALTHOUGH THAT COULD GO LATE TONIGHT. KATIE: SHE MIGHT BE THERE FOR A WHILE
BECAUSE WHO KNOWS WHEN WE'LL ACTUALLY GET A RESULT? IN ANY CASE WE WILL KEEP AN EYE ON YOU ON THE -- AN EYE ON THE DIFFERENT CANDIDATES. MEANTIME WE ARE WATCHING THE MARKETS. SHARES UP AND HITTING A RECORD HIGH AFTER REPORTING BETTER-THAN-EXPECTED QUARTERLY REVENUE AND CITING STRONG DEMAND FOR AI SOFTWARE IN THE U.S. ABIGAIL DOOLITTLE HAS BEEN TRACKING THE COMPANY AND JOINS US NOW. THIS IS REALLY ABOUT HOW THEY ARE BUILDING OUT THEIR COMMERCIAL BUSINESS IN ADDITION TO THE GOVERNMENT BUSINESS WHICH IS DOING VERY WELL.
ABIGAIL: I WOULD SAY THAT GOVERNMENT BUSINESS IS THE BIG DEAL. THEY ALSO RAISED OPERATING INCOME FOR THE FULL YEAR. AND THERE IS LANGUAGE AROUND AI THAT REALLY APPLIES TO 40% OF THE BUSINESS. 60% OF THE BUSINESS IS THE GOVERNMENT -- DEFENSE, ESPIONAGE AND INTELLIGENCE UNITS, LOCATION. WHAT HAPPENED HERE IS A TON OF GROWTH. TWO YEARS AGO THEY PUT UP SIX PERCENT FOR THIS QUARTER SALES GROWTH. THE QUARTER A YEAR AGO THEY PUT
UP 20% GROWTH. NOW IT IS 30% GROWTH. THAT IS MOVING IN THE RIGHT DIRECTION AND THEY ARE CLEARLY A LOT OF GEOPOLITICAL TENSIONS FOR THIS COMPANY TO POTENTIALLY BENEFIT FROM. WHAT THEY DO, WE OFTEN TALK ABOUT PALANTIR AS A RAW DATA COMPANY, THEY TAKE THE DATA AND PUT IT INTO A VISUALIZED FORM FOR FOLKS SO THAT THOSE PEOPLE CAN MAKE INFORMED DECISIONS. KATIE: IT IS WILD LOOKING AT THE FIVE-YEAR CHART. I FEEL LIKE IT WAS ONE OF THE FIRST COMPANIES WE ATTACHED A KEY TO AND WAS THE START OF THE CRAZE. IT'S INTERESTING BECAUSE WE ARE TALKING ABOUT SOFTWARE WITH PALANTIR. WHEN WE TALK ABOUT AI INVESTING
WE TALK ABOUT HARDWARE, PICKS AND SHOVELS AND CHIPS BUT WE. ARE TALKING ABOUT A SOFTWARE COMPANY HERE. MAYBE SOME OF THE AI INVESTMENT ADDITION IS HEADING MORE TOWARDS SOFTWARE. ABIGAIL: IT'S INTERESTING. I WAS SPEAKING TO AN ANALYST WHO SAID THAT IN TERMS OF AI FOR THIS COMPANY, HE DOESN'T COMPLETELY GET IT. THE COMPANY OFTEN TALKS TO WALL STREET ANALYSTS AND SAYS, "YOU DON'T FULLY UNDERSTAND OUR STORY." BECAUSE OF THE INTERACTION AROUND AI, THE ANALYST WAS SAYING HE WASN'T SURE THAT THE AI DEMAND BEING TALKED ABOUT IS QUITE AS REAL. THAT IT COULD BE JUST THE
ROBUST GROWTH FOR THE GOVERNMENT SIDE. SO WE WILL HAVE TO SEE WHETHER OR NOT THEY CAN CREATE MORE TRANSPARENCY AROUND THE SOFTWARE DEMAND AND THE GOVERNMENT PERK BUSINESS AT LEAST. KATIE: RIGHT NOW SHARES ARE FLYING, UP NEARLY 25%. ABIGAIL DOOLITTLE, THANK YOU.
WE WENT TO BRING YOUR BREAKING NEWS OUT OF APPLE. WE JUST GOT THIS HEADLINE THAT APPLE IS GOING TO FACE ITS FIRST E.U. FINED UNDER THE DIGITAL MARKETS ACT. TAKE A LOOK AT APPLE, IT'S BEEN PRETTY RESILIENT. SHARES ARE UP 0.4%.
WE WILL CONTINUE TO FOLLOW THIS STORY. COMING UP, WE TAKE YOU TO THE CLOSING BELL WITH KIMBERLY FORREST, FOUNDER AND CHIEF INVESTMENT OFFICER WITH BOKEH CAPITAL PARTNERS. THIS IS "THE CLOSE" ON BLOOMBERG. ♪
TRIP>> MARKETS DO SEEM TO BE QUITE CONFIDENT OF THE OUTCOME. ALTHOUGH THAT IS SURPRISING. THE POLICE ARE TIRED. ALTHOUGH SOME MIGHT SAY, "HOW DO YOU READ MARKETS?" YOU LOOK AT THE BOTTOM MARKET, THE EQUITY MARKET, AND BELOW THE SURFACE CERTAIN SECTORS, SEEMS LIKE THE EQUITY MARKET IS COMPLETELY PRICING IN A TRUMP WIN. SCARLET: THAT WAS DAVID BIANCO, CHIEF INVESTMENT OF THE AMERICAS AT DWS GROUP KICKING OFF THE SHOW AND TALKING ABOUT HOW THE MARKETS HAVE BEEN PRICING IN A TRUMP VICTORY. THE TRUMP TRADE CONTINUES.
TO THE EXTENT WE GET A RESULT BY THE END OF THIS EVENING,. KATIE: BY THE END OF THIS EVENING. SCARLET: MAY BE THEY GAINS HOLD. IF NOT, HE WAS EXPECTING
DECLINES TOMORROW AND IT MAY BE A COUPLE OF DAYS BEFORE WE GET ANYTHING. KATIE: SUPER INTERESTED TO SEE THE MARKETS REACTION FUNCTION HERE, BECAUSE WE HAVE SEEN A LOT OF VOLATILITY THIS WEEK. EVEN TODAY. . THE S&P 500, SUDDENLY WE ARE LOOKING AT BIG GAINS, THAT WAS IN THE CASE WHEN TRADING FIRST KICKED OFF. NOW UP MORE THAN 1% ON THE S&P 500.
THOSE GAINS BEING LED BY THE TECH NAMES. YOU CAN SEE THAT IN THE NASDAQ 100. HOW ABOUT THE BOND MARKET? LOOK AT. SCARLET: THE 10-YEAR YIELD NOTHING RIGHT NOW. KATIE: SURPRISING, BECAUSE THE MARKET HAS BEEN ALL OVER THE PLACE. STILL AT PRETTY HIGH LEVELS,
JUST BELOW 4.3 0%. THEN LOOK AT THE VOLATILITY INDEX. THE VIX HAS BEEN A BIT HIGHER RELATIVE TO RECENT HISTORY BUT ARE AT LEAST FOUR TODAY, TAKING A BREATH, CURRENTLY TRADING JUST BELOW THE 21 HANDLE. SCARLET: WE CAN CHARACTERIZE THE BOND MARKET IS TAKING A BREATH AFTER THAT MASSIVE SELLOFF, RIGHT? [LAUGHTER] LITTLE CHANGED[LAUGHTER] AT THE MOMENT. MEANTIME, LET'S BRING IN KIMBERLY FORREST, FOUND HER AND CISO OF BOKEH CAPITAL PARTNERS. SHE US FROM PITTSBURGH.
I KNOW YOU HAVE JUST BEEN SWAMPED BY POLITICAL ADS OVER THE PAST COUPLE OF WEEKS AND FINALLY, THAT WILL COME TO AN END SOON, RIGHT? KIMBERLY: OH, FROM YOUR LIPS TO THE PROGRAMMERS' EAR AND ALL OUR LOCAL TV STATIONS. I AM SURE IT IS GREAT FOR THE LOCAL TV AND RADIO STATIONS BECAUSE THEY ARE GETTING A LOT OF AD REVENUE. AND IT'S THE VERY BEST KIND, THEY DON'T CARE. THEY ARE NOT BUYING HUGE AMOUNTS OR HUGE TIME PERIODS, THEY ARE PAYING THE RATE. AND WE ARE HAVING TO PAY THE PRICE BY HAVING TO WATCH THEM. YOU WERE TALKING ABOUT MARKETS.
I AM THINKING THEY ARE PROBABLY TERRIBLE POLL PREDICTORS, TWO FISH BECAUSE I DON'T KNOW THAT THEY KNOW ANYTHING MORE THAN THE PEOPLE WHO ARE VOTING TODAY. SCARLET: GOOD POINT. LET'S LOOK BACK AT THE TRENDS THAT HAVE BEEN IN PLACE EVEN BEFORE EARLY VOTING BEGAN. PART OF THAT IS THE SELL-OFF IN TREASURIES.
WHEN YOU LOOK AT WHAT IS GOING ON IN TREASURIES, WHEN DO YOU EXPECT TO SEE THINGS STABILIZE? WILL IT COME IN THE FORM OF A FED DECISION ON FRIDAY? KIMBERLY: THAT WILL HELP. THEY DO SET THE OVERNIGHT RATE, THEORETICALLY AT LEAST IN THE TEXTBOOKS I HAVE READ, EVERYTHING IS SUPPOSED TO GO UP FROM THERE. I THINK SOME OF THE ECONOMIC DATA THAT HAS COME IN RECENTLY IS MAKING BONDS -- THE BOND MARKET REACT, FOR SURE. BUT IT IS KIND OF A DIFFICULT
THING HERE BECAUSE NEITHER PRESIDENTIAL CANDIDATE HAS BEEN REALLY EXCITED ABOUT MAYBE LOWERING BOND ISSUANCE. BECAUSE WE ARE ACTUALLY NOT SPENDING QUITE AS MUCH. SO I THINK THE BOND MARKET IS ITS OWN KIND OF VOTING SITUATION AND TELLING US THINGS, AS IT CREPT HIGHER THIS MONTH. KATIE: YEAH, WE THINK ABOUT THE VENN DIAGRAM BETWEEN THE TWO CANDIDATES AND IT SEEMS LIKE MORE DEBT IS IN THE CENTER THERE. BUT IT'S INTERESTING, THINK ABOUT THE POLICIES THAT HAVE BEEN PROPOSED. WITH
TRUMP, WE TALK ABOUT HIS POTENTIAL TARIFFS. AND THINK OF THE INDUSTRY THAT CAN FALL INTO THE CROSSHAIRS. I THINK RETAIL NAMES AND APPAREL MAKERS.
OF COURSE WE ARE LOOKING AHEAD RETAIL EARNINGS. WHAT DO YOU THINK ABOUT WHEN YOU MARRY IT TOGETHER WITH THE FUNDAMENTALS, THE KNOWN UNKNOWNS? KIMBERLY: I LOVE LOOKING AT RETAIL AND TRYING TO PICK WINNERS AND LOSERS. IT'S REALLY FUN TO LOOK AT RETAIL. I AM SEEING STRESS IN THE LOWER
TWO-THIRDS OF THE ECONOMIC LADDER. LET'S JUST SAY. PRETTY HIGH UP IN THE LATTER. AND I THINK CLOTHING CAN BE A DISCRETIONARY ITEM. UNLESS YOU ARE A KID THAT IS GROWING OUT OF IT. I THINK IT IS A DANGEROUS --
AND WE ARE GOING INTO THE HOLIDAY SEASON WHICH IS A BIGGER BUYING TIME FOR APPAREL. SO, IT IS IFFY. I WILL TELL YOU THAT. AND I THINK THE GOOD RETAILERS ALWAYS WIN BECAUSE THEY KNOW WHAT TEMPS AND DELIGHTS PEOPLE AND WHAT MAKES THE DOLLARS COME OUT OF THEIR WALLETS FOR THE STUFF THAT THEY WANT. AND THAT REALLY IS WHAT A GOOD RETAILERS SHOULD DO.
IS GIVE CUSTOMERS THE PRODUCTS THEY NEED OR WANT. KATIE: SOUNDS LIKE IN PLAYING THE GAME OF TRYING TO PICK A WINNER IN THE RETAIL SPACE, YOU ARE LOOKING FOR THOSE NAMES THAT MOVE BEYOND DISCRETIONARY PURCHASES AND WE BEFALL MORE INTO THE STAPLES CATEGORY? KIMBERLY: RIGHT. AND I DIDN'T DISCLOSE ANYTHING. I DON'T OWN WALMART.
BUT I GO TO WALMART, AND I WILL TELL YOU, THEIR CLOTHING LOOKS REALLY GREAT ON THE RACK. I HAVEN'T PULLED THE TRIGGER AND BOUGHT ANY, BUT THEY HAVE COMPLETELY CHANGED MY LOCAL WALMART. IT'S A GOOD-LOOKING LOOKING STORE OFFERING DIFFERENTIATED PRODUCTS LIKE I HAVEN'T SEEN BEFORE. SO, EVEN THOUGH THEY ARE THE STAPLES CENTER, RIGHT, WHERE YOU GO AND BUY YOUR FLOUR AND SUGAR AND MILK AND MEAT AND ALL THAT KIND OF STUFF. BUT MAYBE THEY ARE DOING A TARGET. SCARLET: NO, NO, NO, THESE ARE ALL
IMPORTANT POINTS. THE WINNERS WITHIN RETAIL WILL JUST BECOME STRONGER, THAN THE ONES WHO RELY ON LOW-INCOME HOUSEHOLDS UNDER PRESSURE WHO ARE GOING TO FEEL A LOT OF PAIN. SPEAKING OF EARNINGS MOST OF BIG-TECH HAS REPORTED WITH THE EXCEPTION OF NVIDIA. WHAT HAVE WE LEARNED ABOUT THE
SEMICONDUCTOR INDUSTRY GIVEN THE RESULTS WE HAVE GOTTEN? IT'S BEEN FAIRLY MIXED. WHAT HAVE WE LEARNED THAT COULD SET UP EXPECTATIONS HEADING INTO NVIDIA NUMBERS? KIMBERLY: I THINK NVIDIA HAS GOTTEN A GREEN LIGHT THAT THIS IS THE COMPANY THAT IS PROVIDING THE PICKS AND SHOVELS FOR THE AI REVOLUTION, THAT IS PRETTY CLEAR. WE WILL JUST SEE HOW DEMAND LOOKS FOR THE NEXT QUARTER AND HOPEFULLY THE NEXT SIX MONTHS. I THINK THAT'S WHAT EVERYBODY IS FEARING. THE BIGGEST COMPANIES THAT ARE
BUILDING OUT AI SEEM UNDETERRED BY THE FACT THAT NOBODY IS REALLY PAYING FOR THEIR PRODUCT ALL THAT MUCH. AND I AM TALKING TO YOU, META -- [LAUGHS] AS WELL AS MICROSOFT. GOOGLE DID HAVE A BRIGHT SPOT IN THAT ITS CLOUD AND ESPECIALLY ITS AI CLOUD WAS DRIVING SALES. BUT THIS IS A BUILDOUT WITHOUT A CUSTOMER YET AND THAT IS ALWAYS FRIGHTENING. I THINK THERE IS A BIT OF THOUGHT GOING AROUND ABOUT HOW LONG THIS CAN LAST. SCARLET: ALRIGHT, KIMBERLY, THANK YOU
FOR JOINING US TODAY AND GOOD LUCK WITH GETTING TO THE REST OF TODAY. KIM FORREST IS FOUNDER AND CA GO WITH BOKEH CAPITAL PARTNERS. SHE HAS BEEN INUNDATED WITH CAMPAIGN ADS FOR WEEKS NOW. WE ARE MOVING CLOSER TO THE
CLOSING BELL AND WE HAVE FULL MARKET COVERAGE RIGHT HERE ON BLOOMBERG TELEVISION AND BLOOMBERG RADIO. ♪ ANNOUNCER: "THE CLOSING BELL," BLOOMBERG'S COMPREHENSIVE CROSS-PLATFORM COVERAGE OF THE U.S. MARKET CLOSE STARTS RIGHT NOW. ♪ SCARLET: WE ARE ABOUT TWO MINUTES AWAY FROM THE END OF THE TRADING DAY. SCARLET FU AND KATIE GREIFELD. AND OF COURSE, JOINING US TO TAKE YOU THROUGH THE CLOSING BELL WITH A GLOBAL SIMULCAST, CAROL MASSAR AND TIM STENOVEC IN THE RADIO STUDIO WERE IN OUR BLOOMBERG TELEVISION, RADIO AND YOUTUBE AUDIENCES.
THE STOCK MARKET IS HIGHER. THE BOND MARKET HAS BEEN STRUGGLING TO FIND DIRECTION AFTER THAT 10 YEAR BOND AUCTION. BUT ONE THING TO KEEP IN MIND IS THAT THE STOCK MARKET TENDS TO RALLY ON ELECTION DAY, IT WAS UP NINE OUT OF THE LAST 11 ELECTION DAYS. CAROL: I LOVE THAT STATISTIC FROM RYAN
DIETRICH OVER AT THE CARSON GROUP. I AGREE WITH YOU. IT IS HOW WE KICKED OFF OUR BROADCAST AT TWO :00 P.M., IT'S A WAY TO REMIND EVERYBODY. TRYING TO GET AN IDEA OF WHAT IT SAYS ABOUT THE OUTCOME. LOOK AT TRUMP MEDIA. THAT STOCK ALONE HAS BEEN ALL OVER THE MAP TODAY, SO IT IS HARD TO READ IN THE MARKET TEA LEAVES RIGHT NOW. TIM:
WE TALKED TO JOHN AUTHERS EARLIER AND ASKED HIM SPECIFICALLY ABOUT HOW TO READ INTO DJT, WHETHER IT IS ACTUALLY A BELLWETHER FOR HOW PEOPLE THINK TRUMP IS GOING TO DO IN THE ELECTION. HE SAID THAT IS ONE YOU HAVE TO TAKE OUT OF THE TRUMP TRADE BECAUSE IT IS SO DETACHED FROM FUNDAMENTALS I AM. KATIE:. KATIE: GLAD HE GAVE YOU A REAL ANSWER. I FEEL LIKE IT IS HARD TO READ INTO THAT SERIOUSLY BECAUSE IT HAS BEEN SO VOLATILE. BIG VOLUME WE HAVE SEEN IN THAT
STOCK. LOOK AT THE BROADER INDEXES. NOT TOO BAD WHEN IT COMES TO VOLUME, PRETTY CLOSE TO THE 20 DAY AVERAGE. PEOPLE NOT SITTING ON THE SIDELINES RIGHT NOW, THEY ARE ACTIVELY TRADING INTO THESE RESULTS. SCARLET: AND WE WILL SEE HOW THEY
ACTIVELY TRADED ONCE WE GET ANY HINT OF THE OUTCOMES. [CLOSING BELL RINGING AND CHEERS] THERE YOU HAVE THE CLOSING BELLS. GAINS IN EXCESS OF 1% FOR THE DOW, THE S&P AND THE NASDAQ THE NASDAQ, THE BEST PERFORMING OF THE THREE, AT 1.4%.
S&P 500 GAINING AT .25%. DOW INDUSTRIALS WHICH GET SOME NEW CONSTITUENTS ON FRIDAY, GAINING 2%. THE WINNER OF THE BUNCH IS THE SMALL CAPS! , RUSSELL 2000 GAINING 1%. THESE ARE PART OF THE TRUMP TRADE AS WELL BECAUSE THEY ARE SEEN AS BEING AT THE SENSITIVE TO INTEREST RATE CUTS CERTAINLY, BUT ALSO PROTECTIONIST MEASURES WOULD BENEFIT THEM. CAROL: SO INTERESTING. GOING BACK TO THE BIG CAPS, IT IS PRETTY BROAD-BASED IN TERMS OF THE RALLY.
443 NAMES IN THE S&P 500 TO THE UPSIDE. ONLY ABOUT 60 NAMES TO THE DOWNSIDE. KATIE: AT THE SECTOR LEVEL, A LOT OF GOOD NEWS. EVERY SECTOR IS IN THE GREEN RIGHT NOW! [LAUGHTER] CAROL: UNLESS YOU ARE SHORTING THE MARKET. KATIE:
TRUE, THEN YOU ARE PROBABLY NOT HAVING A GOOD TIME. IN ANY CASE LEADING YOUR WAY HIGHER, YOU HAVE DISCRETIONARY NAMES, A RISK-ON DAY ON OUR HANDS. . INDUSTRIALS, UTILITIES ALSO THE BIGGEST GAINERS YOUR LAGGARDS ARE MATERIALS AND ENERGY. BY FAR AND AWAY, WE HAVE AN
ELECTION TODAY, BUT WE ALSO HAVE A EARNINGS SEASON. LET'S TALK ABOUT LUMEN TECHNOLOGIES. IT'S AN INTERESTING ONE. THIS STOCK HAS BEEN ON FIRE.
LOOK AT THE RESULTS. THIRD-QUARTER ADJUSTED LOSS PER SHARE COMING IN AT $.13. THE ESTIMATE HAD BEEN FOR 8.5 CENTS. SO A DISAPPOINTMENT THERE. SHARES MOVING LOWER. REVENUE COMING IN JUST AS
EXPECTED, 3.2 2 BILLION DOLLARS. THIS COMPANY SIGNED A LOT OF PARTNERSHIPS WITH A LOT OF BIG TECH, TELECOM COMPANY TRYING TO CAPITALIZE ON AI. CURRENTLY A LOT OF DISAPPOINTMENT IN THE SHARES. CAROL:
ALRIGHT, WE HAVE ANOTHER ONE CROSSING THE BLOOMBERG TERMINAL, NVIDIA. TIM: IT IS SOME NVIDIA NEWS. CAROL: SCARED ME. I THOUGHT IT WAS AT THE END OF THE MONTH! OK NVIDIA OVERTAKING APPLE TO BECOME THE WORLD'S MOST VULNERABLE STOCK.
AMAZING REALLY THINK ABOUT HOW MASSIVE APPLE IS AND HOW LONG IT'S BEEN AROUND. NVIDIA HAS BEEN THE TALK OF THE TOWN FOR THE LAST ONE AND HALF YEARS AND IT IS AMAZING TO SEE THE BACK AND FORTH BETWEEN THESE TWO NAMES IN TERMS OF MARKET CAP. AND VIDEOS MARKET CAP IS NOW $3.43 TRILLION. THE STOCK ALONE AT 182% -- UP 182%.
WHY DID NOT HAVE IT AS AGAIN OR TODAY? I DO NOT KNOW. HAVING SAID THAT, INDIVIDUAL GAINERS, PALANTIR. WE TALKED ABOUT EARNINGS YESTERDAY, UP 23 PERCENT.
TOP GAINER IN THE S&P 500. THE COMPANY -- OBVIOUSLY A LOT OF REVENUE FROM GLOBAL GOVERNMENTS. THIRD-QUARTER RESULTS BEAT EXPECTATIONS. IT RAISED ITS FULL-YEAR FORECAST, CITING HIGH DEMAND IN THE U.S. FOR ITS AI SOFTWARE. THE STOCK IS UP TO HUNDRED PERCENT SO FAR THIS YEAR. GLOBALFOUNDRIES, UP 15% IN
TODAY'S TRADE. IT MAKES MADE-TO-ORDER SEMICONDUCTORS. THE TOP GAINER IN THE NASDAQ 100. DELIVERING A SURPRISINGLY, UPBEAT FORECAST THIS IS THE NAME THAT HAS BEEN IN A TWO-YEAR SLUMP, SO THE UPBEAT OUTLOOK SHOWING SOME UPWARD MOMENTUM. IF MATT WAS HERE, I WAS DOING THIS FOR HIM, THE REALREAL IS UP 20% IN TODAY'S TRADE. HE [LAUGHTER]
IS UPSET BECAUSE HE IS LIKE IT'S A SMALL BUSINESS, HOW MUCH DOES IT GROW? STORING THE MOST IN EIGHT MONTHS INTRADAY. THE COMPANY FORECAST ADJUSTED EBITDA FOR THE FULL YEAR THAT BEAT ESTIMATES, $393 MILLION. IT IS UP 80% SO FAR THIS YEAR THOUGH KATIE: KATIE: . SO A SLIGHTLY BIGGER CAP. [LAUGHTER] CAROL:
THIS IS KIND OF THE SET UP FOR TIM, BECAUSE TRUMP MEDIA TECHNOLOGY, GUYS, IT WAS UP 18%. AT ITS LOW, DOWN 8.5%, FOR AN AGENT DOWN ABOUT ONE PERSON. AND THERE WERE TWO TRADING HALTS TODAY. TIM: ALWAYS A RISK PUTTING SUCH A VOLATILE -- VOLATILE STOCK. CAROL: IT'S A WINNER AND LOSER, A GAINER AND A DECLINE OR. TIM: WE DON'T HAVE WINNERS AND
LOSERS HERE. SOME DECLINERS TODAY. 60% TO THE DOWNSIDE, A DM SAYING IT WILL AMEND PREVIOUS FINANCIAL STATEMENTS. IT UNCOVERED ACCOUNTING ISSUES PROMPTING THE COMPANY TO CANCEL THE EARNINGS CALL WITH ANALYSTS 14 HOURS BEFORE IT WILL DUE TO START. ADM SAID ON MONDAY THEY HAD IDENTIFIED ERRORS IN THE WAY THEY REPORTED SALES BETWEEN AG SERVICES AND OTHER SEGMENTS WHILE TESTING A NEW INTERNAL CONTROLS. SHARES FELL TODAY BY CLOSE TO SIX PERCENT.
WYNN RESORTS FOLLOWING 9.3%, AFTER THE CONSUMER OPERATOR REPORTED EPS FOR THE THIRD QUARTER THAT MR. THE AVERAGE ANALYST ESTIMATES. I KNOW SCARLET, YOU HAVE YOUR EYE ON SOME COMPANIES REPORTING RIGHT NOW. SCARLET: THIS COMPANY IS THE HOME OF THE GREEN GIANT VEGETABLE COMPANY, AND FROZEN FOOD IS AN IMPORTANT INDICATOR AS WE LOOK AT HOW PEOPLE GO THROUGH AND DEAL WITH INFLATION. WHAT CAN WE TELL YOU? IT CUT ITS FULL-YEAR ADJUSTED EPS FORECAST. PROBABLY WHY THE
STOCK IS DOWN 6% IN AFTER-HOURS TRADING. IT HAD SEEN 350 MILLION DOLLARS FOR THE FULL-YEAR ADJUSTED EBITDA, NOW IT IS LOOKING FOR 295 TO $305 MILLION. THIRD-QUARTER ADJUSTED EPS WAS $.13 MISSING THE AVERAGE ANALYST ESTIMATES OF $.70 A SHARE. TIM: AND THIS IS A HEALTH TECH COMPANY THAT YOU MIGHT KNOW ABOUT BECAUSE IT'S BEEN IN THE NEWS WITH REGARD TO AN APPLE LAWSUIT. THE COMPANY SEEING THIRD-QUARTER REVENUE FROM 581 MILLION TO $611 MILLION, IN LINE WITH ESTIMATES OF $607 MILLION. ADJUSTED OPERATING INCOME FOR
THE FISCAL YEAR WILL BE 325-3 $36 MILLION WHICH IS ABOVE ESTIMATES OF $322 MILLION. THE STOCK IS UNCHANGED THOUGH IN THE AFTER HOURS. SCARLET:. SCARLET: LET'S LOOK AT YIELDS. IT'S BEEN AN INTERESTING STORY. WE HAD A BETTER THAN IS NUMBER WHICH CAME IN AND ASKED STAND TREASURIES DOWN, PUSHING YIELDS UP. THAT WAS THE STORY UNTIL WE GOT THE 1:00 P.M. BOND AUCTION. $42 BILLION OF TEN-YEAR NOTES, DECENT DEMAND. THE 2-YEAR YIELD ON THE SHORTER
END CONTINUING TO MOVE HIGHER. BY THE 10-YEAR YIELD IS A LITTLE CHANGED AND AT THE LONG END YOU CAN SEE YIELDS COMING DOWN. . KATIE: WHICH IS FUNNY. WE WERE TALKING ABOUT DECENT DEMAND AT THE 10 YEAR OPTION. WE'VE BEEN TALKING ABOUT BOND VIGILANTES. THERE HAS BEEN AN INCREDIBLE RUN-UP IN TREASURY YIELDS THE PAST MONTH AND A HALF PEOPLE CONCERNED ABOUT THE TRIP DEFICIT -- ABOUT THE DEFICIT. BUT IT IS A REMINDER THAT THERE STILL AMOUNT OF PEOPLE OUT THERE WILLING TO BUY U.S.
DEBT. SCARLET: IT WILL NOT MATTER AT ALL FOR A WHILE. AND THEN ALL OF A SUDDEN IT MATTERS AND EVERYONE JUMPS ON THE BANDWAGON. TIM:
IT WILL MATTER WHAT HAPPENS IN CONGRESS. YOU SAID NO? SCARLET: NO, GO ON. TIM: IF THERE IS A RED SWEEP OR A BLUE SWEEP, IT GIVES THE GREEN LIGHT TO A CERTAIN EXTENT, TO THESE POLICIES. THE BOND VIGILANTES CAN SAY NO, NO, NO, DO SOME OF THESE POLICIES. CAROL:
THAT IS NOT IMPORTANT POINT. WHAT HAPPENS IN CONGRESS WILL DETERMINE WHAT WHOEVER WINS IN THE WHITE HOUSE CAN DO. ALL RIGHT, THAT'S A WRAP UP OF OUR CROSS-PLATFORM COVERAGE ON RADIO, TV, YOUTUBE AND BLOOMBERG ORIGINALS. A FEW EARNINGS COMING OUR WAY AND THEN WE ARE ON TO THE ELECTION OUTCOME. WE WILL SEE YOU AGAIN SAME
TIME, SAME PLACE TOMORROW. SCARLET: COMING UP ON THE CLOSE , ANIMAL -- A BREAKDOWN OF WHAT THE ELECTION TRENDS ARE SAYING SO FAR. THIS IS "THE CLOSE" ON BLOOMBERG. SCARLET: WELCOME BACK. I AM SCARLET FU. KATIE: AND I AM KATIE GREIFELD. LET'S LOOK AT WHERE MARKETS
CLOSED ON THIS ELECTION DAY OF 2024. IT WAS A RALLY AND THEN SOME, S&P 500 1.2% HIGHER, A LOT OF GAINS FROM BIG-TECH LED BY NVIDIA WHICH OVERTOOK APPLE TODAY AS THE WORLD'S BIGGEST COMPANY. THAT LED THE NASDAQ 100 HIGHER BY ONE POINT 3%.
ALL QUIET IN THE BOND MARKET. NOT TOO OFTEN WE CAN SAY THAT. 10-YEAR TREASURY YIELD ALMOST PERFECTLY UNCHANGED. WE GOT HIGHER ISM SERVICES FIGURES AT ABOUT 10:00 A.M..
AND A STRONG ACTION. ADDED TOGETHER INTO A PERFECT EQUILIBRIUM. VOLATILITY CONTINUING TO DRAIN FROM THIS MARKET. STILL TRADING AT ELEVATED
LEVELS. THE VIX IS ABOVE 20. SCARLET: LET'S LOOK AT INDIVIDUAL MOVERS. PALANTIR, A BIG SAGGY GAINER ON THE DAY. EXCITEMENT CLIMBING TO A RECORD AFTER A BEAT AND RAISE QUARTER THANKS TO HIGH DEMAND FOR ITS AI SOFTWARE, SO IT IS BUILDING OUT ITS COMMERCIAL BUSINESS AS WELL AS ITS GOVERNMENT BUSINESS. BOEING WORKERS ENDING THEIR
53--DAY STRIKE. EVERYONE SAYS IT'S NOT LIKE FLIPPING A SWITCH. IT WILL TAKE TIME TO GET THINGS GOING. TOP STORY THIS HOUR IS THE ELECTION, STUPID. GET IT? [LAUGHTER] MILLIONS HEADING TO THE POLLS IN A DEAD HEAT PRESIDENTIAL RACE AND CONTROL OF THE HOUSE AND SENATE. BOTH TEAM TRUMP AND TIM HARRIS
EXPRESSING CAUTIOUS OPTIMISM THAT THEY WILL WIN. STATE OFFICIALS AND ELECTORAL WORKERS ARE ON HIGH ALERT FOR POTENTIAL VIOLENCE. THE ECONOMY AND IMMIGRATION TOP THE LIST OF VOTER CONCERNS. KATIE: ON THAT NOTE, LET'S BRING IN ROMAINE BOSTICK LIVE ON THE GROUND IN DETROIT, MICHIGAN. WE SPEND A LOT OF TIME ESPECIALLY IN THE RUN-UP OF THE ELECTION -- IN THE RUN-UP TO THE SELECTION TALKING ABOUT THE NATIONAL ECONOMY. BUT GIVE US THE STATE OF PLAY WHEN IT COMES SPECIFICALLY TO MICHIGAN'S ECONOMY AS VOTERS IN THE STATE HAD TO THE POLLS. ROMAINE:
AND NOT JUST MICHIGAN, BUT THE GREATER DETROIT METROPOLITAN AREA WHICH IS REALLY A MICROCOSM FOR A LOT OF THE ISSUES THAT HAVE PLAGUED THIS COUNTRY WHEN IT COMES. TO MANUFACTURING THIS WAS A GREAT, THRIVING CITY AT THE TURN-OF-THE-CENTURY BACK INTO THE 1950'S ON THE BACK OF THE MANUFACTURING AND OTHER INDUSTRY. BUT IT WENT INTO SEVERE DECLINE. BEHIND ME IS THE SKYLINE OF DOWNTOWN DETROIT, NOT AN AREA YOU WOULD HAVE WANTED TO WALK DOWN A LONE ABOUT TWO DECADES AGO. BUT IT HAS
CHANGED. FOLLOWING THE BANKRUPTCY OF THE CITY BACK IN 2015, MAJOR REVITALIZATION TOOK PLACE. THE USE OF BOTH PUBLIC AND PRIVATE FUNDS THAT INCLUDED BUILDING NEW SPORTS ARENA, INCLUDING THE LITTLE CAESAR ARENA BY ME.
AND PAUL HARRIS DETROIT, IT'S BEEN HERE FOR DECADES. AT ONE POINT IT LOOKED LIKE IT WOULD CLOSE. I HAD THE CHANCE TO TALK WITH HER MANAGER YESTERDAY AND HE TALKED ABOUT THIS IDEA OF HOW THEY HAD GIVEN UP ON THIS BUSINESS BECAUSE THERE WASN'T ANYTHING GOING ON AROUND HERE. BUT THAT TURNED AROUND JUST ABOUT 10 YEARS OR SO AGO WITH LITTLE CAESARS ARENA OPENING UP BACK IN 2017 DOWN THE STREET FROM WHERE I AM. YOU HAVE COMERICA PARK AND
OTHER SPORTS ARENAS. A CONVENTION CENTER AS WELL AS NEW OFFICE BUILDINGS GOING UP NOW THAT HAVE BROUGHT A LOT OF MONEY INTO THIS AREA AND THAT CONTINUES ON AS WE MOVE INTO 2025. SCARLET: THANK YOU FOR THAT LOCAL COLOR. REALLY APPRECIATE THE DESCRIPTIONS FROM THE GROUND THERE. YOU MENTIONED THE AMOUNT OF MONEY THAT HAS BEEN SPENT. WE KNOW THIS ELECTION CYCLE HAS CAUSED THE POLITICAL GROUP SOMEWHERE IN THE NEIGHBORHOOD OF 5 BILLION. SUPER EXPENSIVE AND A LOT OF
THAT IS SPENT ON MICHIGAN AND OTHER BATTLEGROUND STATES. WHAT CAN YOU TELL US ABOUT THE AMOUNT OF MONEY THAT HAS BEEN SPENT ON, THE STATE AND TO WHAT EXTENT OF THAT IS PAYING OFF IN TERMS OF TURNOUT. ROMAINE: I COULD TELL YOU THIS, MORE MONEY HAS BEEN SPENT ON ADS IN THE STATE OF MICHIGAN THAN ALL BUT TWO OTHER STATES, OF COURSE, PENNSYLVANIA LEADING THE CHARGE. AND IT IS INTERESTING WHEN YOU LOOK AT THE COMPLEXION OF THE ADS RUNNING HERE VERSUS OTHER PARTS OF THE COUNTRY. IN OTHER PARTS OF THE COUNTRY ARE SEEING ADS ABOUT THE LOCAL CONGRESSIONAL CANDIDATES AND SENATE CANDIDATES. HERE IN MICHIGAN YOU ARE SEEING
A LOT MORE NATIONAL-LEVEL ADS, DIRECTED EITHER AT A TRIBE OR AT KAMALA HARRIS WHETHER IT IS PAID FOR BY THE RESPECTIVE CAMPAIGNS OR BY THEIR POLITICAL ACTION COMMITTEES. TAPPING INTO HOT BUTTON ISSUES WHETHER IT IS THE ECONOMY, IMMIGRATION, REPRODUCTIVE RIGHTS, OR, QUITE FRANKLY, THE INTEGRITY OF OUR DEMOCRACY. THOSE ARE THE ADS RUNNING ON REPEAT HERE. WHEN I TALK TO PEOPLE ON THE STREET, THEY ARE KIND OF TIRED OF IT. THEY KIND OF WANTED THIS TO BE
OVER. THEY SAY THEY HAVE BEEN INUNDATED NOT ONLY BY THE ADS BUT BY THE DOZENS AND DOZENS OF VISITS THESE CANDIDATES HAVE MADE TO THE STATE IN THE PAST. SCARLET: FEW MONTHS YEAH, THEY HAVE ELECTION FATIGUE. AND WHO CAN BLAME THEM? I KNOW YOU HAVE BEEN TALKING TO FOLKS ON THE GROUND INCLUDING THE MICHIGAN SECRETARY OF STATE. TELL US ABOUT WHAT YOU HAVE LEARNED. ROMAINE:
YEAH, THIS HAS BEEN KIND OF A HOTBED OF CONSPIRACY THEORY ACTIVITY OF COURSE THE 2020 ELECTION WAS KIND OF THE CENTERPIECE OF THE STOP THE STEAL CAMPAIGN BY TRUMP. THE IDEA THAT HE THOUGHT THERE WAS SOME FRAUD GOING ON, SOMETHING THAT HAS BEEN THOROUGHLY DEBUNKED, BUT NOW IN 2024, THOSE CONSPIRACY THEORIES HAVE BUBBLED UP AGAIN INCLUDING FROM NONE OTHER THAN ELON MUSK. I HAD A CHANCE TO CATCH UP WITH MICHIGAN SECRETARY OF STATE JOCELYN BENSON, HERE IS WHAT SHE HAD TO SAY ABOUT PROTECTING THE INTEGRITY OF THIS ELECTION WE ENCOURAGE QUESTIONS ABOUT THE PROCESS BECAUSE. WE KNOW IT IS FAIR AND SECURE. WE SET UP A WEBSITE WHERE
PEOPLE CAN GO AND SEE ALL THE QUESTIONS THEY ASKED BE ANSWERED. AND TRANSPARENCY IS OUR FRIEND. THERE ARE HUNDREDS OF OBSERVERS AND CHALLENGERS EVERYWHERE ACROSS THE STATE EVERYWHERE WHERE A BOAT IS BEING TABULATED AND THEY WILL BE THERE TO CATCH ANYTHING. OR HOPEFULLY REAFFIRM THE SECURITY OF THE PROCESS AFTER THE FACT. ROMAINE: AND OF COURSE IT'S NOT JUST CHALLENGES FROM PEOPLE IN THE STATE, HE HAD A PUBLIC BACK-AND-FORTH OF ELON MUSK ONLINE, CONSPIRACY ABOUT THE NUMBER OF VOTERS ON THE ROLLS AND THE DISCREPANCY IN THE NUMBER OF PEOPLE ELIGIBLE TO VOTE.
>> YEAH, TRUTH AND FACTS ARE A ON OUR SIDE. WE POSTED A DASHBOARD, MICHIGAN.GOV/VOTINGDASHBOARD WHERE PEOPLE CAN SEE THE FACTS FOR THE SOLIDS. WE HAVE OVER 7.2 MILLION ELIGIBLE VOTERS. IT'S A GREAT THING. WE WANT EVERYONE INCLUDING ELON MUSK HIMSELF TO HAVE ACCESS TO THE TRUSTED INFORMATION THAT HOPEFULLY HE WILL CHOOSE TO SPREAD, INSTEAD OF WRITING THIS INFORMATION WITH OTHER POLITICAL AGENDAS. ROMAINE: I AM CURIOUS ABOUT THE POLICIES IN STATE, POLICIES SPECIFICALLY DESIGNED TO INCREASE VOTER ACCESS.
>> IT'S IMPORTANT THAT WE DO EVERYTHING WE CAN TO MAKE IT EASIER TO VOTE AND HARDER TO CHEAT. THAT IS WHAT WE HAVE DONE THE LAST SEVERAL YEARS. EXPANDING ACCESS TO THE VOTE, TRAINING MORE ELECTION WORKERS TO IMPLEMENT THOSE MEASURES, AND ALSO POST-ELECTION AUDITS THAT WE HAVE IMPLEMENTED THESE LAST SEVERAL YEARS TO REAFFIRM THE PROCEDURES AND RESULTS AFTER THE FACT. ROMAINE: THIS IS THE FIRST YEAR WE HAVE HAD EARLY VOTING IN THE STATE OF MICHIGAN. HOW DO YOU RATE IT SO FAR? >> IT HAS BEEN EXTRAORDINARY SUCCESS TO SEE 1.2 MILLION
MICHIGANDERS CHOOSE TO VOTE EARLY AND IN PERSON. REALLY REINFORCES THAT IF YOU MAKE VOTING MORE CONVENIENT, PEOPLE WILL SHOW UP AND USE THOSE CONVENIENT OPTIONS TO MAKE THEIR VOICE HEARD, AND THAT IS WHAT WE HAVE SEEN THIS YEAR. ROMAINE: I ASSUME IT'S GOING TO BE A LATE NIGHT FOR YOU TONIGHT? >> IT WILL, BUT WE HAVE BEEN PREPARING FOR YEARS. WE ARE READY. AND I AM OPTIMISTIC THAT WE WILL SEE A SMART ELECTION PROCESS AND WE ARE READY TO ADDRESS OR DE-ESCALATE ANYTHING THAT MIGHT ERUPT OR OCCUR. ROMAINE: SECRETARY BENSON ALSO TOLD ME SHE EXPECTS THAT FOR MOST OF THE COUNTIES AND DISTRICTS IN THE STATE OF MICHIGAN, THAT THEY SHOULD HAVE THOSE CALCULATIONS DONE IS NOT LATE TONIGHT, THEN SOMETIME EARLY WEDNESDAY, SHE SAID THERE COULD BE A FEW AREAS HERE OR THERE THAT MAY TAKE A BIT LONGER. SCARLET: ALRIGHT, FAIR WARNING.
THANK YOU SO MUCH, BLOOMBERG'S ROMAINE BOSTICK ON THE SCENE IN DETROIT. AND OF COURSE HE WILL BE IN MICHIGAN THIS EVENING WHEN WE HAVE FULL SPECIAL COVERAGE OF THE ELECTION STARTING AT 5:00 P.M. EASTERN TIME. WE HAVE BREAKING NEWS OUT OF
SUPER MICRO COMPUTER, THE SERVER MAKER THAT WAS SUPPOSED TO REPORT EARNINGS -- BUT NOT EARNINGS, IT IS IS BUSINESS UPDATE AFTER IT LOST ITS AUDITOR, ECNY. LET'S TELL YOU ABOUT WHAT HAPPENED IN THE QUARTER. SECOND-QUARTER NET SALES, $5.5 BILLION TO $6.1 BILLION. ANALYSTS WERE LOOKING FOR 6.7 BILLION DOLLARS. THAT FORECAST COMING IN MUCH LATER THAN ANTICIPATED.
SUPER MICRO SAYS IT SEES SECOND QUARTER ADJUSTED EPS, MUCH WEAKER THAN THE EXPECTED $.80. SUPER MICRO RELIES ON SALES TO NVIDIA FOR A LOT OF ITS SALES. KATIE: ON THE ACCOUNTING ISSUES, SUPER MICRO SAYING THEY SEE NO EVIDENCE OF FRAUD OR MISCONDUCT BY MANAGEMENT. THEY REMAIN UNABLE TO PREDICT WHEN THE 10K FILING WILL BE FILED, BUT THEY WILL TAKE ALL STEPS TO ACHIEVE NASDAQ COMPLIANCE. SHARES DOWN 13% AFTER HOURS. THE STOCK WAS DOWN 45% LAST
WEEK. FASCINATING STORY. WE WILL CONTINUE TO FOLLOW THAT. COMING UP, WE ARE DATING DEEPER INTO ELECTION COVERAGE WITH GOP POLLSTER FRANK LUNTZ. THAT CONVERSATION UP AHEAD. THIS IS "THE CLOSE" ON BLOOMBERG. SCARLET: IT IS ELECTION DAY, THE U.S. KAMALA HARRIS AND -- KAMALA HARRIS AND DONALD TRUMP CLOSING YOUR CAMPAIGNS. BRINGING IN FRANK LUNTZ FOR HIS TAKE ON WHAT IS HAPPENING RIGHT NOW. FRANK, YOU CAN SLICE AND DICE
THE OPTICS MANY DIFFERENT WAYS. WHAT ARE YOU FOCUSED ON AT THE MOMENT? FRANK: LATINO AND HISPANIC VOTERS. BECAUSE THERE HAS CLEARLY BEEN A REACTION TO WHAT TRUMP SAID A WEEK AGO SUNDAY IN MADISON SQUARE GARDEN. IT HAD AN IMPACT. WE DON'T KNOW HOW MUCH. SOME PEOPLE CHANGED THEIR MINDS.
THE QUESTION IS HOW MANY AND IN WHAT STATE BECAUSE IN THE END IT ONLY MATTERS IN PENNSYLVANIA, NEVADA AND ARIZONA. SECOND, WE HAVE SEEN SOME INDICATION THAT VICE PRESIDENT KAMALA HARRIS IS DOING PARTICULARLY WELL AMONG OLDER WOMEN. WE KNOW THE STORY ABOUT YOUNGER WOMEN. WE ARE JUST TRYING TO MEASURE THE TURNOUT. BUT OLDER WOMEN, NORMALLY TRUMP WOULD BE DOING WELL AMONG PEOPLE OVER AGE 60 BUT IT APPEARS OLDER WOMEN ALSO HAVE BEEN MOVING TOWARD TARIFFS AND THE REMAINING 48, 70 TWO HOURS. SO TONIGHT, I WILL BE LOOKING AT THE DEMOGRAPHIC. IN TERMS OF STATES, IT IS NOT
JUST PENNSYLVANIA BUT ALSO MICHIGAN. WHAT DID THE VOTERS OF DEARBORN, MUSLIM AND ARAB AMERICANS, WILL THEY TURN OUT FOR HARASS OR ARE THEY GOING TO REFUSE TO GIVE HER THEIR SUPPORT AS THEY DID TO JOE BIDEN EARLIER THIS YEAR IN THE DEMOCRATIC PRIMARY? EACH OF THESE GROUPS MATTER TREMENDOUSLY BECAUSE THIS ELECTION IS ON THE RAZORS EDGE. SO THE QUESTION IS TWO FOLD NUMBER ONE IS DID THEY BREAK FOR HARRIS IN THE END AND NUMBER TWO IS DID THEY COME OUT AND VOTE? IN THE END YOU CAN SUPPORT SOMEONE, BUT IT DOESN'T MATTER UNLESS THEY CAST THEIR BALLOT. SCARLET: ABSOLUTELY, I WANT TO GO TO THE OVER 65 FEMALE VOTE WHERE YOU SAY KAMALA HARRIS SEEMS TO BE GAINING GROUND THERE. HOW MUCH OF THAT IS TIED TO THE NUMBERS OUT OF IOWA, THE CELL SAMPLE THAT SHOWED SHE WAS ACTUALLY LEADING, AND KIND OF SURPRISED EVERYONE? FRANK: THAT WILL BE THE MOST SIGNIFICANT.
OF THE SELECTION BECAUSE IT IS ALONE. NO ONE ELSE HAS PROJECTED ANYTHING LIKE THAT IN THE STATE THAT HAS BEEN VOTING REPUBLICAN FOR PRESIDENT IN A NUMBER OF ELECTIONS NOW. NO INDICATION THIS COULD BE HAPPENING. EITHER THAT POLESTAR WILL FIND THEMSELVES WITHOUT WORK IN THE NEXT 48 HOURS. OR THEY ARE GOING TO BE
CELEBRATED AS SHOWING A DIFFERENT LOOK AT THE ELECTORATE. WE DON'T KNOW YET, BUT WE WILL KNOW IN A FEW HOURS. IN THE END, IT'S BEEN SO DIFFICULT TO POLL BECAUSE THE NUMBERS IN 2016 AND 2020 UNDERCOUNTED DONALD TRUMP BY A LOT. AND . POLLS ARE CLEARLY TRYING TO COMPENSATE FOR THAT IN 2024. GET IT WRONG THREE TIMES IN A ROW AND IT IS THE END OF THE INDUSTRY. THET QUESTION
ISER IF THEY OVERCOMPENSATED. WE WILL NOT KNOW THAT FOR 24 HOURS BUT CLEARLY THAT SEGMENT OF THE POPULATION WILL MATTER BECAUSE THEY VOTE IN SUCH HIGH NUMBERS. KATIE: AND THAT POLL YOU ARE A REFERENCE EXACTLY MOOD MARKET YESTERDAY, A BIG SURPRISE ACROSS THE BOND MARKET.
I WANT TO GO BACK TO UNION HOUSEHOLDS, A REALLY INTERESTING POINT. YOU HAD THE 50 PLUS-DAY STRIKE WITH BOEING FINALLY ENDING, REACHING SOME SORT OF AGREEMENT WITH THEIR UNION. WE KNOW THAT PRESIDENT BIDEN SPOKE WITH THE BOEING CEO ON THAT LABOR CONTRACT. BUT WHEN IT COMES TO HOW THE UNION HOUSEHOLDS, NOT THE UNION LEADERSHIP, ARE GOING TO VOTE, THAT IS AN OPEN QUESTION. FRANK:
EXACTLY. BECAUSE THEY ARE GOING AGAINST UNION LEADERSHIP AND OPENLY DEFYING THEM. TYPICALLY DEMOCRATS WIN UNION HOUSEHOLDS BY ABOUT 25%. THIS TIME IF YOU TAKE OUT GOVERNMENT UNIONS WHO ARE SUPPORTING HARRIS BY MEI B20, AND THE TEACHER UNIONS WHO ARE SUPPORTING HARRIS BY 25 OR 75, IF YOU FOCUS ON THE PEOPLE WHO WORK WITH THEIR HANDS, THE AFL-CIO AND THE TEAMSTERS, WE SEE IT AS ALMOST 50-50 BETWEEN THEM. AND THAT IS ABSOLUTELY ESSENTIAL IN PENNSYLVANIA AND MICHIGAN. IF THOSE NUMBERS HOLD AND IF THEY GET THE SAME KIND OF TURN OUT THAT THESE OTHER GROUPS HAVE BEEN DOING, THEN DONALD TRUMP IS GOING TO END UP ELECTED. THAT IS WHY WE ARE FOLLOWING
THAT SO CAREFULLY. BECAUSE THAT IS THE CHANGE FROM PREVIOUS ELECTIONS. KATIE: FEELS LIKE THIS ELECTION CYCLE YOU HAVE REALLY SEEN PREDICTION AND BETTING MARKETS TAKE OFF IN A BIG WAY. YOU OF COURSE HAVE BEE
2024-11-06