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Speaker 2: This is a breaking news update from Bloomberg instant reaction
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Speaker 1: Almost nothing was spared here on this Thursday afternoon, the
Speaker 1: first full day of trading. Once we learned about the
Speaker 1: new US tariff regime, an SMP five hundred that is
Speaker 1: going to pose the day lower by about four point
Speaker 1: eight percent. That's the worst day for the index going
Speaker 1: back to June of twenty twenty. It pushes the S
Speaker 1: and P five hundred back into correction territory down twelve
Speaker 1: percent from its all time high fifty three ninety six,
Speaker 1: and change is where it settles. On the day. The
Speaker 1: Dow Jo's Industrial average lost more than sixteen hundred points
Speaker 1: on the day, taking it down by four percent on
Speaker 1: the day. The Nazak composite down one thousand points or
Speaker 1: six percent, the Nazak one hundred down a thousand points
Speaker 1: or five point four percent, the Russell two thousand down
Speaker 1: more than one hundred points or seven percent, s and
Speaker 1: P four hundred mid caps down seven percent down, transports
Speaker 1: down nine percent. And I know, Alex you like to
Speaker 1: look at the equal weighted index that was underperformer relative
Speaker 1: to the S ANDP down four point a pers.
Speaker 3: I'm just tech, yeah, yeah, just across the board. Unbelievable.
Speaker 3: I don't even know that I should even mention how
Speaker 3: many year down in the S and P, but I'll
Speaker 3: go there. You got four hundred and seven names losing ground.
Speaker 3: You do have ninety five names to mention, some hitting
Speaker 3: fifty two week highs in the S and P, but
Speaker 3: ninety five names alex higher in the S and P
Speaker 3: five hundred yep.
Speaker 4: Taking a look that IMAM function really crystallizes the move
Speaker 4: that we're seeing within the equity market today. All sectors
Speaker 4: in the red except for consumer staples, as we just
Speaker 4: talked about, those are the kind of the only gainers,
Speaker 4: some hitting fifty two week highs, but energy, tech, discretionary,
Speaker 4: and industrials and financials all getting hit extraordinarily hard. Energy
Speaker 4: sectors off by over seven percent.
Speaker 1: And just to to those superlatives, a KBW Bank index
Speaker 1: down ten percent, the biggest drop going back to March
Speaker 1: of twenty twenty three. The Philadelphia Semiconductor Index Carol and
Speaker 1: TIM had their worst day since March of twenty twenty,
Speaker 1: down nine point nine percent.
Speaker 3: YEP dollar wiping all of its gains out since the
Speaker 3: president's win on November fifth, that election win. So yeah,
Speaker 3: a lot of superlatives, no doubt about it. On this Thursday,
Speaker 3: I actually found some gainers, guys, and let's go to it.
Speaker 3: We were talking about certainly the consumer staples area, which
Speaker 3: was an outperformer easily the group overall. Coca Cola among
Speaker 3: that list, up two point six percent here in today's session,
Speaker 3: so that was gaining. Another consumer staples Philip Morris, that
Speaker 3: one was up just shy of four percent here at
Speaker 3: the close. And then actually some fundamental reasons or at
Speaker 3: least something that could possibly change maybe the outlook for Intel.
Speaker 3: This one up at its highs almost nine percent today,
Speaker 3: finishing with about a two percent gain at the close.
Speaker 3: The information coming out and reported that the company tentatively
Speaker 3: agreed to a chip making joint venture with TSMC Taiwan
Speaker 3: Semiconductor Manufacturing. Bloomberg News, you might remember back in February
Speaker 3: reported that the companies were talking about the idea at
Speaker 3: the request of the Trump administration. And in this one,
Speaker 3: the number one gainer in the S and P five
Speaker 3: hundred French fries YEP gotta love it. LAMB Weston Holdings
Speaker 3: up ten percent here at the close. The company came
Speaker 3: out and it posted fiscal third quarter results top estimates,
Speaker 3: and the management hired a consulting firm to look for
Speaker 3: cost saving. So even in a sell off, guys, fundamentals
Speaker 3: still do matter.
Speaker 1: And can I just add an honorable mention to there,
Speaker 1: and is actually on a sec on a country basis, please, Actually,
Speaker 1: one of the Mexico's main benchmark index actually had stage
Speaker 1: a pretty decent rally earlier in the day. It ended
Speaker 1: up flat on the day, and you actually saw some
Speaker 1: Indicas in Canada rally largely because of the fact that
Speaker 1: they did not get the worst of those reciprocal terists,
Speaker 1: if you will, that Trump laid out yesterday.
Speaker 2: All right, well, let's go to some of the decliners.
Speaker 2: I had the easy job today, and in fact, there
Speaker 2: were so many decliners. I went with an entire index,
Speaker 2: the Bloomberg mag seven Total Return index following dated by
Speaker 2: six point seven percent. It's worst day in more than
Speaker 2: three years. Everything in there in the red. Apple down
Speaker 2: more than nine percent, Amazon and meta platforms down nine percent,
Speaker 2: and video down close to eight eight percent. Tesla down
Speaker 2: six five and a half percent, Alphabet down four percent,
Speaker 2: Microsoft down two point four percent, all the biggest weights
Speaker 2: on the major indices and all among the most actively
Speaker 2: traded stocks today. Also did want to focus on retail
Speaker 2: today because we saw some deep, deep moves there, Nike
Speaker 2: following by fourteen point four percent. In fact, it's now
Speaker 2: trading at the lowest level going all the way back
Speaker 2: to twenty seventeen. It was among the US and European sneaker,
Speaker 2: clothing and jewelry makers that plunged amid this shock to
Speaker 2: supply chains. Vietnam is the issue for Nike. It's the
Speaker 2: largest supplier of footwear for Nike. Today half of Nike
Speaker 2: branch shoes are made in Vietnam. Nike also faces additional
Speaker 2: challenges because it's so dominant in the US, which is
Speaker 2: the world's biggest single sports market. And finally, another retailer,
Speaker 2: RH plunging the worst day ever the owned company of
Speaker 2: Restoration Hardware. They plunged as much as forty five percent,
Speaker 2: a record declined. This after the annual revenue growth forecast
Speaker 2: trailed Wall Street expectations. Fourth quarter sales and profit also
Speaker 2: missed the average analyst estimate. Trading now at levels last
Speaker 2: seen in twenty twenty, shares falling today by more than
Speaker 2: forty percent.
Speaker 4: Where do you go. You go to lam Weston and
Speaker 4: you also go to the bond market. It was the
Speaker 4: front end that really outperformed here. The two year yield
Speaker 4: at one point was down by about seventeen basis points.
Speaker 4: It fell the most since August of twenty twenty four,
Speaker 4: and we're now at the lowest level since October, so
Speaker 4: before the election. But overall, guys, we're looking at a
Speaker 4: twenty one basis point moved to the downside for the
Speaker 4: two year in just these four days alone, not even
Speaker 4: taking into account we're going to see tomorrow with the
Speaker 4: jobs number.
Speaker 1: It was interesting too if you were looking for any
Speaker 1: bright spots, I mean, I'll leak you saw a lot
Speaker 1: of healthcare stocks move higher. Of course, again that defensive trade.
Speaker 1: In fact, that managed Healthcare index, the one that tracks
Speaker 1: the ones in the smb I, had a really good day.
Speaker 1: And it gets to that question as to if you
Speaker 1: do want to stay invested, you want to keep that
Speaker 1: money there you go, I mean, is there a safe
Speaker 1: spot out there right now other than you know, consumer
Speaker 1: staples and healthcare?
Speaker 2: I don't know.
Speaker 3: It's a good question, right, And I also do wonder
Speaker 3: if you do move that money at this point, you know,
Speaker 3: with what's certain, dear, what will it take for you
Speaker 3: to get more actively back into the market at some point. Certainly, again,
Speaker 3: you go back to so much coming out of the
Speaker 3: White House, so much coming out of Washington, and we
Speaker 3: know that this stuff can change, and so when do
Speaker 3: you believe that, Okay, this is the policy, this is
Speaker 3: what stays in place. And I think that's what's going
Speaker 3: to continue to make it tricky, certainly for investors in businesses.
Speaker 1: I just add though too, I'm sorry to interrupt, but
Speaker 1: just on the consumer staples front, because I think a
Speaker 1: lot of people were flocking there. You saw the rally
Speaker 1: and Pepsi and some of those names. But then you
Speaker 1: have the CEO of ConAgra was talking a little bit
Speaker 1: earlier today who really talked about how he's concerned. He said,
Speaker 1: right now, they're not being hurt. Right now, they don't
Speaker 1: have to make a lot of changes. But he basically
Speaker 1: said that you know, once the dust starts to settle here,
Speaker 1: you know, things may not look good. And he actually
Speaker 1: talked about this idea of not really being able to
Speaker 1: give firmer guidance, and that might be the story of
Speaker 1: this earning season which really kicks off and in just
Speaker 1: about the four or five days.
Speaker 2: Yeah, we'll certainly look forward to hearing from the executives
Speaker 2: of those companies and certainly the commentary from the banks
Speaker 2: about how consumers are doing in the meantime. Romayne, in
Speaker 2: your question about where actually to invest your money is
Speaker 2: a question we've been posing to our guests throughout the day.
Speaker 2: We did speak to Mace McCain over at Frost Advisors,
Speaker 2: who's actually not buying the trade of going to Europe
Speaker 2: right now. He thinks that's going to end very soon
Speaker 2: and it's going to end poorly. He's sticking with US companies,
Speaker 2: but midcaps because they have less exposure to international markets.
Speaker 2: He's still bullish on the US in the long run.
Speaker 1: But does that take into account economic slowdown though?
Speaker 2: Yeah, I mean, look, he's staying invested right now. He's
Speaker 2: getting a lot of calls from clients. They're obviously very concerned.
Speaker 2: They want explanations of what's happening to the market. But
Speaker 2: he's staying invested.
Speaker 4: Well, here's my thing too. And then in the short term, though,
Speaker 4: I wonder if we're going to see a lot more
Speaker 4: downside in that. When you have volatility spikes like this
Speaker 4: guy so and we're up to nearly thirty for the vics,
Speaker 4: you have funds that rebalance. Whether you're looking at ETPs
Speaker 4: or etns, or whether you're looking at say CTA's commodity
Speaker 4: trading advisors, or you're looking at volatility funds. They have
Speaker 4: to rebalance when volatility spikes and they have to sell stocks.
Speaker 4: That's on a long term call, right, but that churn
Speaker 4: could continue through the next couple of days and they're
Speaker 4: forced to kind of rebalance here.
Speaker 3: Actually, we put that question to Peter at Order over
Speaker 3: at William and Mary. You know, he's worked on Wall Street,
Speaker 3: he's now an academia, runs his own investment firm as well.
Speaker 3: And we said, you know, especially with the S and
Speaker 3: P five hundred from peak to trough down more than
Speaker 3: ten percent? Was it of almost twelve percent? So was
Speaker 3: this a bear market? Could it go lower? And his
Speaker 3: expectation was that, yeah, he thought things could actually go
Speaker 3: lower from here. So I think that's a really good point.
Speaker 3: You know, have we bottomed out? And that's the question,
Speaker 3: all right, Dot that dot