Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look at some stocks on the move today.
Speaker 1: I'm Nathan Hager, joined by Bloomberg's Dan Curtis on a
Speaker 1: morning where the broader market looks like it's not moving
Speaker 1: because of the outage at CME Group. As it turns out,
Speaker 1: CME Group is a publicly traded company. So Dan, how
Speaker 1: CMME Group looking this morning?
Speaker 3: Good morning, Good morning. Yeah, as you said, it's it's
Speaker 3: been hard to get some of the some of the
Speaker 3: prices that we want. But for CMA Group shares themselves
Speaker 3: stick or CME, they're down just less than one percent.
Speaker 3: As you know, as you've been talking about, as the
Speaker 3: financial world has been discussing overnight since it happened around
Speaker 3: nine thirty ten pm New York time last night, the
Speaker 3: exchange operator has halted its trading in futures and options.
Speaker 3: It since opened up it's broker Tech US actives and
Speaker 3: broke Tech EU platforms, but all others are still halted.
Speaker 3: It comes on, you know, a day where a lot
Speaker 3: of people probably weren't going to be going into the
Speaker 3: office anyways. Especially in the US, the day after Thanksgiving
Speaker 3: tends to be light days. Obviously, this is not fun
Speaker 3: for anyone who's going through it, But I think if
Speaker 3: you had to pick a day for an exchange to
Speaker 3: go down, a super low volume day like today would
Speaker 3: probably be about the best day for a bad thing
Speaker 3: to happen. So, you know, it's something everyone's kind of,
Speaker 3: you know, trying to figure out pricing on a lot
Speaker 3: of things. But the Cmgroup CME Group Shares themselves just
Speaker 3: shrugging them off. Down less than one percent.
Speaker 1: It's going to make cash trading all the more important
Speaker 1: for those who do have to come into work this morning.
Speaker 1: A lot of tech stocks on your list, starting with Oracle.
Speaker 3: Yeah, Oracle, It's down a little bit over one percent
Speaker 3: in the pre market today. Morgan Stanley has come out
Speaker 3: with a note warning that the tech company is facing
Speaker 3: a funding gap as it spends money to build out
Speaker 3: its AI infrastructure. Oracle has borrowed eighteen billion dollars from
Speaker 3: the debt market in September. That's on top of bank
Speaker 3: providing tens of billions of loans linked to Oracle projects
Speaker 3: over the past months. So Morgan Stanley's saying, this is
Speaker 3: a lot of money for Oracle to be taking out
Speaker 3: taking out, and right now it looks like, using Wall
Speaker 3: Street estimates, about half of Oracle's revenues over the next
Speaker 3: year are going to go directly into capital expenditures, so
Speaker 3: reinvesting into this buildout. So this company's putting out a
Speaker 3: lot of cash to try and build out and expand
Speaker 3: into this AI race, and Morgan Stanley's just wondering, you know,
Speaker 3: if it might be just a bit too much. That
Speaker 3: has investors kind of debating that side of you know,
Speaker 3: how much is this going to impact the stock that's
Speaker 3: down one percent as well as debt. So we also
Speaker 3: have the insurance against Oracle's debt called a CDs that's
Speaker 3: trading out relatively expensive prices. So if you're to hedge
Speaker 3: against a default over the next five years, it's about
Speaker 3: as expensive as it's been since the global financial crisis,
Speaker 3: so nearly twenty years ago.
Speaker 1: And we have a build out that's affecting sand disk
Speaker 1: stock as well, or at least a talk of a
Speaker 1: buildout anyway.
Speaker 3: Yeah, there was a report that Japan and the US
Speaker 3: are considering building out a memory plant for one of
Speaker 3: the types of chips that sand Disc makes. Sand Disc
Speaker 3: would be a main investor in the project. There's been
Speaker 3: a lot of large demand for memory chips in the
Speaker 3: AI race. The whole space has been exploding. Prices of
Speaker 3: these chips themselves have been going very high. And on
Speaker 3: top of that, you know, just as a fun thing
Speaker 3: to note, today is sand Disc's first day on the
Speaker 3: S and P five hundred. Welcome to the S and
Speaker 3: P five hundred sand.
Speaker 1: Disc, okay. And another chip maker on your list as well,
Speaker 1: Micron Technology.
Speaker 3: Yeah, Mike Ron, that's also up higher again. It's just
Speaker 3: on the back of this memory demand. We've seen memory
Speaker 3: prices just skyrocketing, keep going up really high. It's going on.
Speaker 3: It's just this massive boom again around the AI space,
Speaker 3: and I still see. Just to circle back to something earlier,
Speaker 3: CME Group has just said that the EBS market will
Speaker 3: reopen at twelve o'clock. GMT shares are still down about
Speaker 3: that two thirds of a percent after that announcement.
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