1
00:00:02,520 --> 00:00:07,040
Speaker 1: Bloomberg Audio Studios, podcasts, radio News.

2
00:00:09,200 --> 00:00:13,840
Speaker 2: This is a breaking news update from Bloomberg instant reaction

3
00:00:14,120 --> 00:00:17,919
Speaker 2: and analysis from our three thousand journalists and analysts around

4
00:00:18,000 --> 00:00:18,480
Speaker 2: the world.

5
00:00:19,720 --> 00:00:23,759
Speaker 1: Almost nothing was spared here on this Thursday afternoon, the

6
00:00:23,800 --> 00:00:26,840
Speaker 1: first full day of trading. Once we learned about the

7
00:00:26,920 --> 00:00:30,639
Speaker 1: new US tariff regime, an SMP five hundred that is

8
00:00:30,640 --> 00:00:33,040
Speaker 1: going to pose the day lower by about four point

9
00:00:33,080 --> 00:00:35,720
Speaker 1: eight percent. That's the worst day for the index going

10
00:00:35,760 --> 00:00:38,680
Speaker 1: back to June of twenty twenty. It pushes the S

11
00:00:38,760 --> 00:00:42,280
Speaker 1: and P five hundred back into correction territory down twelve

12
00:00:42,280 --> 00:00:44,720
Speaker 1: percent from its all time high fifty three ninety six,

13
00:00:44,960 --> 00:00:47,000
Speaker 1: and change is where it settles. On the day. The

14
00:00:47,080 --> 00:00:51,280
Speaker 1: Dow Jo's Industrial average lost more than sixteen hundred points

15
00:00:51,479 --> 00:00:54,800
Speaker 1: on the day, taking it down by four percent on

16
00:00:54,880 --> 00:00:58,040
Speaker 1: the day. The Nazak composite down one thousand points or

17
00:00:58,080 --> 00:01:01,080
Speaker 1: six percent, the Nazak one hundred down a thousand points

18
00:01:01,200 --> 00:01:04,040
Speaker 1: or five point four percent, the Russell two thousand down

19
00:01:04,080 --> 00:01:06,880
Speaker 1: more than one hundred points or seven percent, s and

20
00:01:06,920 --> 00:01:10,600
Speaker 1: P four hundred mid caps down seven percent down, transports

21
00:01:10,760 --> 00:01:13,880
Speaker 1: down nine percent. And I know, Alex you like to

22
00:01:13,880 --> 00:01:17,080
Speaker 1: look at the equal weighted index that was underperformer relative

23
00:01:17,120 --> 00:01:19,000
Speaker 1: to the S ANDP down four point a pers.

24
00:01:19,000 --> 00:01:22,920
Speaker 3: I'm just tech, yeah, yeah, just across the board. Unbelievable.

25
00:01:23,160 --> 00:01:25,520
Speaker 3: I don't even know that I should even mention how

26
00:01:25,560 --> 00:01:26,920
Speaker 3: many year down in the S and P, but I'll

27
00:01:26,959 --> 00:01:29,959
Speaker 3: go there. You got four hundred and seven names losing ground.

28
00:01:30,400 --> 00:01:33,119
Speaker 3: You do have ninety five names to mention, some hitting

29
00:01:33,120 --> 00:01:35,040
Speaker 3: fifty two week highs in the S and P, but

30
00:01:35,160 --> 00:01:37,399
Speaker 3: ninety five names alex higher in the S and P

31
00:01:37,520 --> 00:01:38,280
Speaker 3: five hundred yep.

32
00:01:38,319 --> 00:01:42,039
Speaker 4: Taking a look that IMAM function really crystallizes the move

33
00:01:42,080 --> 00:01:45,080
Speaker 4: that we're seeing within the equity market today. All sectors

34
00:01:45,120 --> 00:01:47,319
Speaker 4: in the red except for consumer staples, as we just

35
00:01:47,360 --> 00:01:49,279
Speaker 4: talked about, those are the kind of the only gainers,

36
00:01:49,280 --> 00:01:52,960
Speaker 4: some hitting fifty two week highs, but energy, tech, discretionary,

37
00:01:53,040 --> 00:01:57,000
Speaker 4: and industrials and financials all getting hit extraordinarily hard. Energy

38
00:01:57,040 --> 00:01:59,520
Speaker 4: sectors off by over seven percent.

39
00:01:59,400 --> 00:02:02,280
Speaker 1: And just to to those superlatives, a KBW Bank index

40
00:02:02,360 --> 00:02:05,000
Speaker 1: down ten percent, the biggest drop going back to March

41
00:02:05,000 --> 00:02:08,640
Speaker 1: of twenty twenty three. The Philadelphia Semiconductor Index Carol and

42
00:02:08,680 --> 00:02:11,680
Speaker 1: TIM had their worst day since March of twenty twenty,

43
00:02:11,880 --> 00:02:13,360
Speaker 1: down nine point nine percent.

44
00:02:13,160 --> 00:02:15,720
Speaker 3: YEP dollar wiping all of its gains out since the

45
00:02:15,760 --> 00:02:18,960
Speaker 3: president's win on November fifth, that election win. So yeah,

46
00:02:19,000 --> 00:02:21,520
Speaker 3: a lot of superlatives, no doubt about it. On this Thursday,

47
00:02:22,120 --> 00:02:24,280
Speaker 3: I actually found some gainers, guys, and let's go to it.

48
00:02:24,320 --> 00:02:27,040
Speaker 3: We were talking about certainly the consumer staples area, which

49
00:02:27,080 --> 00:02:31,079
Speaker 3: was an outperformer easily the group overall. Coca Cola among

50
00:02:31,160 --> 00:02:35,200
Speaker 3: that list, up two point six percent here in today's session,

51
00:02:35,240 --> 00:02:39,040
Speaker 3: so that was gaining. Another consumer staples Philip Morris, that

52
00:02:39,080 --> 00:02:42,000
Speaker 3: one was up just shy of four percent here at

53
00:02:42,000 --> 00:02:45,120
Speaker 3: the close. And then actually some fundamental reasons or at

54
00:02:45,160 --> 00:02:48,480
Speaker 3: least something that could possibly change maybe the outlook for Intel.

55
00:02:48,760 --> 00:02:51,400
Speaker 3: This one up at its highs almost nine percent today,

56
00:02:51,400 --> 00:02:53,960
Speaker 3: finishing with about a two percent gain at the close.

57
00:02:54,000 --> 00:02:57,440
Speaker 3: The information coming out and reported that the company tentatively

58
00:02:57,520 --> 00:03:01,200
Speaker 3: agreed to a chip making joint venture with TSMC Taiwan

59
00:03:01,280 --> 00:03:05,080
Speaker 3: Semiconductor Manufacturing. Bloomberg News, you might remember back in February

60
00:03:05,120 --> 00:03:07,640
Speaker 3: reported that the companies were talking about the idea at

61
00:03:07,639 --> 00:03:10,800
Speaker 3: the request of the Trump administration. And in this one,

62
00:03:11,160 --> 00:03:13,000
Speaker 3: the number one gainer in the S and P five

63
00:03:13,080 --> 00:03:17,079
Speaker 3: hundred French fries YEP gotta love it. LAMB Weston Holdings

64
00:03:17,160 --> 00:03:20,720
Speaker 3: up ten percent here at the close. The company came

65
00:03:20,760 --> 00:03:24,320
Speaker 3: out and it posted fiscal third quarter results top estimates,

66
00:03:24,360 --> 00:03:26,360
Speaker 3: and the management hired a consulting firm to look for

67
00:03:26,400 --> 00:03:29,600
Speaker 3: cost saving. So even in a sell off, guys, fundamentals

68
00:03:29,919 --> 00:03:31,200
Speaker 3: still do matter.

69
00:03:31,240 --> 00:03:32,960
Speaker 1: And can I just add an honorable mention to there,

70
00:03:32,960 --> 00:03:36,400
Speaker 1: and is actually on a sec on a country basis, please, Actually,

71
00:03:36,440 --> 00:03:39,040
Speaker 1: one of the Mexico's main benchmark index actually had stage

72
00:03:39,080 --> 00:03:41,320
Speaker 1: a pretty decent rally earlier in the day. It ended

73
00:03:41,400 --> 00:03:43,000
Speaker 1: up flat on the day, and you actually saw some

74
00:03:43,080 --> 00:03:46,480
Speaker 1: Indicas in Canada rally largely because of the fact that

75
00:03:46,600 --> 00:03:49,800
Speaker 1: they did not get the worst of those reciprocal terists,

76
00:03:49,840 --> 00:03:51,840
Speaker 1: if you will, that Trump laid out yesterday.

77
00:03:52,200 --> 00:03:54,320
Speaker 2: All right, well, let's go to some of the decliners.

78
00:03:54,320 --> 00:03:56,760
Speaker 2: I had the easy job today, and in fact, there

79
00:03:56,760 --> 00:03:59,160
Speaker 2: were so many decliners. I went with an entire index,

80
00:03:59,200 --> 00:04:02,240
Speaker 2: the Bloomberg mag seven Total Return index following dated by

81
00:04:02,280 --> 00:04:05,200
Speaker 2: six point seven percent. It's worst day in more than

82
00:04:05,240 --> 00:04:07,800
Speaker 2: three years. Everything in there in the red. Apple down

83
00:04:07,840 --> 00:04:10,800
Speaker 2: more than nine percent, Amazon and meta platforms down nine percent,

84
00:04:10,800 --> 00:04:14,080
Speaker 2: and video down close to eight eight percent. Tesla down

85
00:04:14,280 --> 00:04:16,719
Speaker 2: six five and a half percent, Alphabet down four percent,

86
00:04:16,800 --> 00:04:20,679
Speaker 2: Microsoft down two point four percent, all the biggest weights

87
00:04:20,680 --> 00:04:23,200
Speaker 2: on the major indices and all among the most actively

88
00:04:23,240 --> 00:04:26,840
Speaker 2: traded stocks today. Also did want to focus on retail

89
00:04:26,839 --> 00:04:29,440
Speaker 2: today because we saw some deep, deep moves there, Nike

90
00:04:29,520 --> 00:04:31,800
Speaker 2: following by fourteen point four percent. In fact, it's now

91
00:04:31,839 --> 00:04:34,040
Speaker 2: trading at the lowest level going all the way back

92
00:04:34,040 --> 00:04:37,480
Speaker 2: to twenty seventeen. It was among the US and European sneaker,

93
00:04:37,520 --> 00:04:40,120
Speaker 2: clothing and jewelry makers that plunged amid this shock to

94
00:04:40,160 --> 00:04:44,200
Speaker 2: supply chains. Vietnam is the issue for Nike. It's the

95
00:04:44,240 --> 00:04:47,240
Speaker 2: largest supplier of footwear for Nike. Today half of Nike

96
00:04:47,320 --> 00:04:50,440
Speaker 2: branch shoes are made in Vietnam. Nike also faces additional

97
00:04:50,480 --> 00:04:52,680
Speaker 2: challenges because it's so dominant in the US, which is

98
00:04:52,680 --> 00:04:57,000
Speaker 2: the world's biggest single sports market. And finally, another retailer,

99
00:04:57,160 --> 00:05:00,560
Speaker 2: RH plunging the worst day ever the owned company of

100
00:05:00,600 --> 00:05:03,320
Speaker 2: Restoration Hardware. They plunged as much as forty five percent,

101
00:05:03,760 --> 00:05:06,560
Speaker 2: a record declined. This after the annual revenue growth forecast

102
00:05:06,560 --> 00:05:10,320
Speaker 2: trailed Wall Street expectations. Fourth quarter sales and profit also

103
00:05:10,400 --> 00:05:14,000
Speaker 2: missed the average analyst estimate. Trading now at levels last

104
00:05:14,040 --> 00:05:17,000
Speaker 2: seen in twenty twenty, shares falling today by more than

105
00:05:17,000 --> 00:05:17,640
Speaker 2: forty percent.

106
00:05:17,800 --> 00:05:19,359
Speaker 4: Where do you go. You go to lam Weston and

107
00:05:19,400 --> 00:05:21,599
Speaker 4: you also go to the bond market. It was the

108
00:05:21,640 --> 00:05:24,280
Speaker 4: front end that really outperformed here. The two year yield

109
00:05:24,279 --> 00:05:26,680
Speaker 4: at one point was down by about seventeen basis points.

110
00:05:26,920 --> 00:05:29,320
Speaker 4: It fell the most since August of twenty twenty four,

111
00:05:29,600 --> 00:05:32,680
Speaker 4: and we're now at the lowest level since October, so

112
00:05:32,800 --> 00:05:35,240
Speaker 4: before the election. But overall, guys, we're looking at a

113
00:05:35,279 --> 00:05:37,320
Speaker 4: twenty one basis point moved to the downside for the

114
00:05:37,360 --> 00:05:40,159
Speaker 4: two year in just these four days alone, not even

115
00:05:40,520 --> 00:05:42,960
Speaker 4: taking into account we're going to see tomorrow with the

116
00:05:43,040 --> 00:05:43,560
Speaker 4: jobs number.

117
00:05:43,720 --> 00:05:45,440
Speaker 1: It was interesting too if you were looking for any

118
00:05:45,440 --> 00:05:47,240
Speaker 1: bright spots, I mean, I'll leak you saw a lot

119
00:05:47,240 --> 00:05:50,240
Speaker 1: of healthcare stocks move higher. Of course, again that defensive trade.

120
00:05:50,279 --> 00:05:52,360
Speaker 1: In fact, that managed Healthcare index, the one that tracks

121
00:05:52,360 --> 00:05:54,680
Speaker 1: the ones in the smb I, had a really good day.

122
00:05:54,839 --> 00:05:56,680
Speaker 1: And it gets to that question as to if you

123
00:05:56,720 --> 00:05:58,800
Speaker 1: do want to stay invested, you want to keep that

124
00:05:58,880 --> 00:06:01,440
Speaker 1: money there you go, I mean, is there a safe

125
00:06:01,440 --> 00:06:03,640
Speaker 1: spot out there right now other than you know, consumer

126
00:06:03,680 --> 00:06:04,599
Speaker 1: staples and healthcare?

127
00:06:04,720 --> 00:06:05,080
Speaker 2: I don't know.

128
00:06:05,120 --> 00:06:07,119
Speaker 3: It's a good question, right, And I also do wonder

129
00:06:07,200 --> 00:06:09,320
Speaker 3: if you do move that money at this point, you know,

130
00:06:09,400 --> 00:06:11,120
Speaker 3: with what's certain, dear, what will it take for you

131
00:06:11,160 --> 00:06:15,559
Speaker 3: to get more actively back into the market at some point. Certainly, again,

132
00:06:15,640 --> 00:06:17,560
Speaker 3: you go back to so much coming out of the

133
00:06:17,560 --> 00:06:20,039
Speaker 3: White House, so much coming out of Washington, and we

134
00:06:20,120 --> 00:06:22,359
Speaker 3: know that this stuff can change, and so when do

135
00:06:22,400 --> 00:06:24,919
Speaker 3: you believe that, Okay, this is the policy, this is

136
00:06:24,920 --> 00:06:26,920
Speaker 3: what stays in place. And I think that's what's going

137
00:06:26,960 --> 00:06:29,839
Speaker 3: to continue to make it tricky, certainly for investors in businesses.

138
00:06:29,960 --> 00:06:31,839
Speaker 1: I just add though too, I'm sorry to interrupt, but

139
00:06:31,880 --> 00:06:33,760
Speaker 1: just on the consumer staples front, because I think a

140
00:06:33,760 --> 00:06:36,159
Speaker 1: lot of people were flocking there. You saw the rally

141
00:06:36,160 --> 00:06:37,640
Speaker 1: and Pepsi and some of those names. But then you

142
00:06:37,680 --> 00:06:40,960
Speaker 1: have the CEO of ConAgra was talking a little bit

143
00:06:41,000 --> 00:06:44,280
Speaker 1: earlier today who really talked about how he's concerned. He said,

144
00:06:44,480 --> 00:06:46,320
Speaker 1: right now, they're not being hurt. Right now, they don't

145
00:06:46,360 --> 00:06:48,440
Speaker 1: have to make a lot of changes. But he basically

146
00:06:48,440 --> 00:06:50,600
Speaker 1: said that you know, once the dust starts to settle here,

147
00:06:51,160 --> 00:06:53,080
Speaker 1: you know, things may not look good. And he actually

148
00:06:53,080 --> 00:06:55,359
Speaker 1: talked about this idea of not really being able to

149
00:06:55,360 --> 00:06:57,520
Speaker 1: give firmer guidance, and that might be the story of

150
00:06:57,560 --> 00:07:00,440
Speaker 1: this earning season which really kicks off and in just

151
00:07:00,480 --> 00:07:01,720
Speaker 1: about the four or five days.

152
00:07:01,800 --> 00:07:04,320
Speaker 2: Yeah, we'll certainly look forward to hearing from the executives

153
00:07:04,320 --> 00:07:06,719
Speaker 2: of those companies and certainly the commentary from the banks

154
00:07:06,720 --> 00:07:09,480
Speaker 2: about how consumers are doing in the meantime. Romayne, in

155
00:07:09,480 --> 00:07:11,720
Speaker 2: your question about where actually to invest your money is

156
00:07:11,720 --> 00:07:14,360
Speaker 2: a question we've been posing to our guests throughout the day.

157
00:07:14,600 --> 00:07:17,800
Speaker 2: We did speak to Mace McCain over at Frost Advisors,

158
00:07:18,040 --> 00:07:21,560
Speaker 2: who's actually not buying the trade of going to Europe

159
00:07:21,640 --> 00:07:23,360
Speaker 2: right now. He thinks that's going to end very soon

160
00:07:23,400 --> 00:07:26,360
Speaker 2: and it's going to end poorly. He's sticking with US companies,

161
00:07:26,360 --> 00:07:30,400
Speaker 2: but midcaps because they have less exposure to international markets.

162
00:07:30,560 --> 00:07:32,560
Speaker 2: He's still bullish on the US in the long run.

163
00:07:32,600 --> 00:07:35,400
Speaker 1: But does that take into account economic slowdown though?

164
00:07:35,760 --> 00:07:38,480
Speaker 2: Yeah, I mean, look, he's staying invested right now. He's

165
00:07:38,480 --> 00:07:41,360
Speaker 2: getting a lot of calls from clients. They're obviously very concerned.

166
00:07:41,360 --> 00:07:43,840
Speaker 2: They want explanations of what's happening to the market. But

167
00:07:43,880 --> 00:07:44,760
Speaker 2: he's staying invested.

168
00:07:45,320 --> 00:07:47,920
Speaker 4: Well, here's my thing too. And then in the short term, though,

169
00:07:47,960 --> 00:07:49,360
Speaker 4: I wonder if we're going to see a lot more

170
00:07:49,440 --> 00:07:52,360
Speaker 4: downside in that. When you have volatility spikes like this

171
00:07:52,440 --> 00:07:55,480
Speaker 4: guy so and we're up to nearly thirty for the vics,

172
00:07:55,760 --> 00:07:58,480
Speaker 4: you have funds that rebalance. Whether you're looking at ETPs

173
00:07:58,520 --> 00:08:01,480
Speaker 4: or etns, or whether you're looking at say CTA's commodity

174
00:08:01,760 --> 00:08:04,880
Speaker 4: trading advisors, or you're looking at volatility funds. They have

175
00:08:04,960 --> 00:08:08,480
Speaker 4: to rebalance when volatility spikes and they have to sell stocks.

176
00:08:08,600 --> 00:08:11,960
Speaker 4: That's on a long term call, right, but that churn

177
00:08:12,200 --> 00:08:14,160
Speaker 4: could continue through the next couple of days and they're

178
00:08:14,200 --> 00:08:15,640
Speaker 4: forced to kind of rebalance here.

179
00:08:15,720 --> 00:08:18,000
Speaker 3: Actually, we put that question to Peter at Order over

180
00:08:18,040 --> 00:08:20,200
Speaker 3: at William and Mary. You know, he's worked on Wall Street,

181
00:08:20,200 --> 00:08:23,000
Speaker 3: he's now an academia, runs his own investment firm as well.

182
00:08:23,400 --> 00:08:25,840
Speaker 3: And we said, you know, especially with the S and

183
00:08:25,880 --> 00:08:29,680
Speaker 3: P five hundred from peak to trough down more than

184
00:08:30,240 --> 00:08:32,840
Speaker 3: ten percent? Was it of almost twelve percent? So was

185
00:08:32,840 --> 00:08:34,760
Speaker 3: this a bear market? Could it go lower? And his

186
00:08:34,880 --> 00:08:37,840
Speaker 3: expectation was that, yeah, he thought things could actually go

187
00:08:37,880 --> 00:08:40,520
Speaker 3: lower from here. So I think that's a really good point.

188
00:08:40,840 --> 00:08:43,000
Speaker 3: You know, have we bottomed out? And that's the question,

189
00:08:43,520 --> 00:08:50,800
Speaker 3: all right, Dot that dot