Stocks Churn in Final Minutes of Big Options Day | Bloomberg: The Close 9/20/2024

>> HAPPY FRIDAY, EVERYBODY. TRIPLE WHICH INCOME INDEX REBALANCING. >> WE ARE COUNTING YOU DOWN TO THE CLOSE. >> IT SEEMS EXCITING, STUFF HAPPENING, BUT ON A HEADLINE LEVEL, IT IS PRETTY TAME. THE S&P IS DOWN .3%. TRY TO MAKE A RUN INTO RECORD TERRITORY. BEST PERFORMING SECTOR IN THE S&P, DEFENSIVE PLAY OR GROWTH PLAY? WE WILL TALK ABOUT CONSTELLATION ENERGY THROUGHOUT THE SHOW. 2-10 SPRINT CONTINUED TO STEEPEN ITS WAY UP. VIX IS CALM. IF WE WERE TO LOOK AT THE DAY, PRETTY BORING, BUT UNDERNEATH THERE IS A LOT GOING ON. >> WE ARE SEEING HEALTHY

VOLUMES TODAY. MORE THAN $5 TRILLION WORTH OF OPTIONS EXPIRING TODAY. THE MARKET FACING ITS BIGGEST INDEXER YET -- REBALANCING IN YEARS. AS OF RIGHT NOW, THE S&P 500 IS DOWN .3%. THE NASDAQ IS DOWN .4%. AS YOU CAN SEE, THE VIX NOT DOING TOO MUCH. THERE IS A LITTLE BIT OF WAIT AND SEE, ALSO SOME FED COMMENTS THAT WE HAVE TO PARSE. MEANWHILE, EUPHORIA IN EQUITY MARKETS FOLLOWING THE FED'S RATE CUT IS STOKING A BUBBLE, ACCORDING TO ONE STRATEGIST. HE WRITES, IT DOESN'T GET MUCH BETTER THAN THAT FOR RISK, SO INVESTORS ARE FORCED TO CHASE

THE RALLY. HIS ADVICE, BUY THE DIP IN BONDS AND GOLD. WITH 46 DAYS UNTIL THE ELECTION, TRUMP AND HARRIS CONTINUED TO HIT SWING STATES. IN NORTH CAROLINA, IT'S BEEN A DEAD HEAT BETWEEN THE CANDIDATES. ROY COOPER SPEAKS TO BLOOMBERG LATER THIS HOUR TO TALK ABOUT THE RACE AND THE CONTROVERSY SURROUNDING MARK ROBINSON. ALIX: LET'S TAKE A LOOK AT THE VOLUME, TRIPLE WITCHING. HERE IS WHERE WE ARE WITH THE S&P, YOU CAN SEE THE RISE HIGHER. THIS IS THE VOLUME FOR THE INDEX. HIGH VOLUME DAYS WHEN WE GET OPTIONS EXPIRATION. WE MIGHT SEE THAT SPIKE. AT

THE OPEN, I WAS FLOORED, YOU SAW TRIPLE DIGIT VOLUME ABOVE THE 10-DAY MOVING AVERAGE IN THE DOW, S&P, NASDAQ. NOW IT IS RELATIVELY CALM, ABOVE AVERAGE VOLUME, BUT THE LAST FIVE MINUTES, INTERESTING ABOUT ANY ACTION THAT WE WILL SEE. INDEX REBALANCING. WILL WE SEE MORE OF THAT AT 4:00? VONNIE: AND BEYOND INTO NEXT WEEK. LET'S KICK THINGS OFF WITH SARAH HUNT, PARTNER AT ALPINE SAXON WOODS. WE DID GET SOME LEVEL OF VOLATILITY TODAY BECAUSE WE GOT COMMENTS FROM FED GOVERNOR WALLER, NIKKI BOWMAN, A STATEMENT THAT SHE WAS THE DISSENTER ON THE FOMC. ANYTHING ABOUT THE

EMPLOYMENT OR INFLATION PICTURE THAT STOOD OUT TO YOU? SARAH: THAT IS THE BIG QUESTION RIGHT NOW, WHAT IS THE MOST IMPORTANT THING? IT SEEMED LIKE INFLATION HAS BEEN SIDELINED, PEOPLE MORE CONCERNED ABOUT EMPLOYMENT, BUT THERE IS THAT TENSION. YOU CAN SEE IT FROM THE DIFFERENT OPINIONS ON THE BOARD RIGHT NOW. VONNIE: WE HAVE THE 2-YEAR YIELD ROUGHLY BACK TO WHERE IT WAS BEFORE WE GOT THIS 50 BASIS POINT CUT. WHAT DOES THAT SAY TO YOU THAT WE ARE NOT GETTING THAT MUCH MOVEMENT? IS THE MARKET GOING TO PUSH FOR ANOTHER 50, OR CONTENT TO SEE

WHAT HAPPENS NEXT? SARAH: THE MARKET WAS SO PROUD FOR THAT 50, 25 WOULD HAVE BEEN A SURPRISE, NOT A POSITIVE ONE. YOU HAVE SEEN THE YIELD COME DOWN SINCE JUNE. WHAT IT WAS DOING IS PUTTING THAT BACK IN LINE WITH WHERE THEY THINK RATES ARE GOING, WHICH WILL CONTINUE TO COME DOWN. I THINK CHAIR POWELL WAS TRYING TO TELEGRAPH, WE ARE GOING TO DO ANOTHER 25, DON'T LOOK FOR 50 AS A BASE CASE. I THINK YOU HAVE TO SEE THE DATA CHANGE A LOT FOR THAT TO CHANGE. HE WAS BARELY EXPLICIT ABOUT THE WAY THAT

HE TALKED ABOUT IT AT THE PRESS CONFERENCE. ALIX: RECORD RALLY YESTERDAY. YOU CAN MAKE THE ARGUMENT THAT YESTERDAY'S RALLY WAS RELATED TO OPTIONS, POSITIONS AHEAD OF OPTIONS EXPIRATION, OR YOU CAN SAY THAT IT IS A REACTION TO THE FED. SARAH: THE REACTION WHEN THE RATE CUT CAME ON WEDNESDAY, YOU SAW THE MARKET RUN UP AND THEN COME DOWN, UP AND DOWN, AND THAT THE DAY IN THE RED. I THINK IT WAS A DIGESTION OF THAT INFORMATION, WHAT IS THE FED REALLY SAYING? THAT EQUITY RALLY WAS, THINGS ARE GOING TO BE ALL RIGHT, WE ARE IN

THAT SOFT LANDING CAMP. I THINK THAT IS WHAT YESTERDAY'S ACTION WAS AROUND. NOW YOU HAVE, LET'S LOOK AT THAT FROM A DIFFERENT PERSPECTIVE, AND QUESTIONS HAVE COME UP ABOUT WHAT THE EMPLOYMENT PICTURE REALLY LOOKS LIKE. THAT IS WHERE YOU HAVE SOME UNDERNEATH QUESTIONS. WE ARE AT ALL-TIME HIGHS IN ALL INDICES, SO NOT SURPRISING TO SEE A LITTLE BIT OF A PULLBACK. ALIX: WHAT DO YOU LIKE RIGHT NOW? SARAH: EVEN IF YOU LIKE IT, YOU HAVE TO ASSUME THAT THE ECONOMY WILL ROLL WITH YOU, THE GROWTH IN EARNINGS WILL COME, BECAUSE IF NOT THE MULTIPLES ARE

STILL HIGH. YOU LOOK AT WHERE THERE IS ROOM FOR THEM TO MOVE IN A POTENTIALLY SLOWER ECONOMIC BACKDROP, BUT IT IS TOUGH RIGHT NOW WITH WHERE EQUITIES ARE PRICED. HARD TO DECIDE WHAT LOOKS GOOD HERE. VONNIE: HOW ARE YOU THINKING ABOUT THE EMPLOYMENT PICTURE? IT IS CLEAR THE REVISIONS TO THE DATA WAS A SURPRISE AS WELL. CHAIR POWELL SAID SO AT THE NEWS CONFERENCE, SAYS THAT WE MAY GET MORE REVISIONS IN THE FUTURE. WHAT IS TO SAY THAT IF WE DON'T GET A TERRIBLE JOB SPRINT, THAT IT WILL NOT BE REVISED DOWN AGAIN? SARAH: THE

PEOPLE WHO ARE CONVINCED THAT THE FED IS MORE WORRIED ABOUT EMPLOYMENT THEN IT LEADS ON, TAKING THOSE COMMENTS, ALSO THE REVISIONS, THE ISSUE IS THAT WE STARTED FROM A LOW UNEMPLOYMENT RATE. IF WE WERE AT FIVE OR SIX AND WE SAW THOSE REVISIONS, IT WOULD BE A DIFFERENT STORY. SINCE WE ARE IN THE LOW 4'S, IT SEEMED LIKE LESS OF A PROBLEM. I THINK SOME OF THE ISSUES WILL COME BETWEEN THE PART-TIME AND FULL-TIME JOBS, WHAT CONSUMERS WILL DO. WHEN CONSUMERS ARE COMFORTABLE, THEY SPEND. RIGHT NOW, THE CONSUMER SEEMS TO BE CONTINUING TO SPEND, BUT

I DON'T DISAGREE. THERE MAY BE SOME REVISIONS. THAT IS MY THE FED WANTED TO MOVE FASTER, AND A LITTLE BIT OF CATCH-UP FROM JULY. ALIX: MID-CAPS, SMALL CAPS, IS THAT THE PLACE TO BE? SARAH: THAT DEPENDS ON YOUR VIEW OF THE ECONOMY. IF WE GET THE SOFT LANDING, BIG CAPS AND SMALL CAPS ARE IN A GOOD PLACE. YOU HAVE INTEREST RATE HEALTH, A BUNCH OF THINGS GOING ON THAT ARE POSITIVE TO THAN. IF YOU HAVE A SLOW DOWN AND CONTRACTION, NOT SO GOOD FOR THE MIDS AND SMALLS. VONALIX: FEDEX SAYS IT WAS A HARBINGER. LARGE-CAP

TECH? SARAH: YOU ARE NOT GOING TO SAY WE HAVE TO GET AWAY FROM TECH. YES, THERE HAS BEEN A CORRECTION BUT THAT IS STILL WHERE THE GROWTH IS. IT'S REALLY A QUESTION ON WHAT ELSE YOU DO WITH YOUR MONEY AS OPPOSED TO THAT. WITH FEDEX IT IS HARD TO FIGURE OUT IF THAT IS A HARBINGER OR IDIOSYNCRATIC BECAUSE OF THE PROBLEMS, STILL SEEING HEALING IN THE SUPPLY CHAIN. PEOPLE WERE OVER FEDEX, BIG AND HEAVY THINGS, BECAUSE THEY NEEDED TO GET THINGS, SO HARD TO SEE WHAT IS NORMAL FOR FEDEX. ON THE OTHER HAND, YOU DON'T

WANT TO SEE FREIGHT DO BADLY. ALIX: I APPRECIATE IT, SARAH HUNT, CHIEF MARKET STRATEGIST OVER AT ALPINE SAXON WOODS. COMING UP, WE WILL TALK TO A MAN AT THE HELM OF THE COMPANY THAT MAKES MEDICINES FOR SO MANY OF OUR BELOVED PETS. JEFF SIMMONS, CEO OF ELANCO ANIMAL HEALTH JOINING US. VONNIE: NIKE SHARES HIGHER AFTER ANNOUNCING THAT CEO JOHN DONAHOE IS OUT AND ELLIOTT HILL IS IN. ALIX: ELECTION DAY INCHING THE ROOM WITH EARLY VOTING ALREADY UNDERWAY IN SOME STATES. WE WILL HAVE A CONVERSATION WITH NORTH CAROLINA GOVERNOR ROY COOPER. ALL THAT AND MORE COMING

UP. THIS IS "THE CLOSE" ON BLOOMBERG. VONNIE: SOME POSITIVE NEWS TODAY FOR ELANCO ANIMAL HEALTH. THE ANIMAL PHARMA COMPANY FETCHING FDA APPROVAL FOR ITS CANINE DERMATOLOGY DRUG ZENRELI A, OPENING THE DOOR FOR THEM TO TAP INTO THE CANINE DERMATOLOGY MARKET. IT HAS BEEN A TOUGH DAY FOR THE OVERALL MARKET. SHARES ARE DOWN 6%. JOINING US NOW IS JEFF SIMMONS, PRESIDENT AND CEO OF ELANCO. I HAVE TO ASK ABOUT THE STOCK MARKET REACTION. DO YOU THINK IT'S RELATED TO THE NEWS, IS IT RELATED TO SOMETHING ELSE? JEFF: WE BELIEVE THIS IS A GREAT PRODUCT COMING IN,

SPENDING TIME WITH INVESTORS BUT IT IS REALLY A DRUG COMING INTO A MAJOR MARKET WITH A NEED. WE SEE VETERINARIANS TODAY LOOKING FOR ANOTHER OPTION. THERE ARE VERY FEW OPTIONS. THIS IS THE NUMBER ONE REASON THAT PET OWNERS GO TO THE VET, E.G. DOGS. -- ITCHY DOGS. ZENRELIA BRINGS EXACTLY WHAT PET OWNERS ARE LOOKING FOR. MORE EFFICACY, MORE CONVENIENCE ON A LOWER COST. THAT IS EXACTLY WHAT ZENRELIA DOES AND WE ARE EXCITED TO SHARE THAT. WHEN I LOOK AT THE STOCK IN THE MARKETPLACE, WE ARE THE MOST COMPELLING VALUE PROPOSITIONS IN ONE OF THE MOST

EXCITING INDUSTRIES, ANIMAL HEALTH. WE ARE IN THE MIDDLE OF HISTORIC INNOVATION. SIX BLOCKBUSTERS BETWEEN NOW AND THE END OF 2025, ONE PER QUARTER IN MAJOR MARKETS. WE HAVE ONE IN METHANE WITH CATTLE. NOW WE ARE GOING TO CLOSE TO $2 BILLION DERM MARKET WITH ZENRELIA. $6 BILLION MARKET WITH ANOTHER DRUG, APPROVAL IN THE FOURTH QUARTER, LAUNCHING IN THE FIRST QUARTER. HISTORIC LAUNCH IS COME INNOVATION. THAT WILL DRIVE OUR STOCK PRICE OVER THE MEDIUM AND LONG TERM. ALIX: METHANE FOR COWS, WE HAVE TO TALK ABOUT THAT IN A SECOND. FOR THIS DRUG, MOST ANALYSTS WERE POSITIVE

ABOUT WHAT THIS REPRESENTED FOR YOUR PIPELINE. I WONDER IF YOU HAVE TO SELL AT A DISCOUNT TO GET THE UPTAKE IN THE INITIAL LAUNCH AND WHAT THAT MIGHT LOOK LIKE? JEFF: AVALANCHE PRICE IS LOOKING AT THE MARKET RESEARCH, DOING TWO THINGS. WE WILL EXPAND THE MARKET. TODAY, THERE ARE STILL DOGS THAT DON'T HAVE ACCESSIBILITY TO MODERN INNOVATION. THIS STARTS TO BRING MORE DOG OWNERS WHO CANNOT AFFORD TODAY A GOOD INNOVATION LIKE ZENRELIA. THAT IS NUMBER ONE. NUMBER TWO, WE ARE DOING THIS TO DRIVE MORE VETERINARIANS TO BRING IT IN INITIALLY BECAUSE OF WHAT WE'VE SEEN.

THIS PRODUCT IS MORE EFFICACIOUS. IN A HEAD-TO-HEAD STUDY WITH THE CURRENT JAK INHIBITOR ON THE MARKET, WE BROUGHT 77% OF DOGS BACK TO NORMAL VERSUS THE COMPETITOR AT 53%. BECAUSE OF THAT, ALSO ONE DOSE A DAY, NOT TWO, WHICH IS NEEDED BY THE CURRENT MARKET PRODUCT -- PRODUCT ON THE MARKET. WHAT EXCITES ME MOST IN THE LAST 24 HOURS IS THE RESPONSE FROM VETERINARIANS AND PET OWNERS HEARING ABOUT THIS PRODUCT. WE HAVE OVER 2000 VETERINARIANS ON OUR FIRST CALL THAT WE WILL HAVE OVER THE WEEKEND. ALIX: WONDERFUL NEWS FOR DOGS. DO YOU THINK MARKET PARTICIPANTS

THINK THAT YOU ARE BEING TOO OPTIMISTIC FOR YOUR OUTLOOK $67 MILLION IN REVENUES FROM NEW PRODUCTS THIS YEAR? ARE YOU STANDING BY THAT OUTLOOK? JEFF: WE ARE. THAT DATE IT COMING OUT OF 2021, HOUR INVESTOR CALL. WE HAVE BEEN SIGNIFICANTLY INCREASING THAT OVER TIME. WE INCREASED OUR INNOVATION GUIDANCE THIS YEAR, SO WE ARE WELL ON TRACK. THAT IS A 150 MILLION JUMP FROM 23TO 24. WE ARE GOING UP TO 600 MILLION. ALL THE PRODUCTS THAT WE HAVE ARE CONTINUING TO GROW NICELY, KEY DRIVERS. NOW WE HAVE THREE PRODUCTS. YOU HAVE THIS METHANE PRODUCT THAT WE

SEE AS A 100 TO $200 MILLION POTENTIAL PRODUCT. ZENRELIA, $1.7 BILLION DERM. AND THEN THE OTHER ONE WILL BE THE BROADEST SPECTRUM PRODUCT IN THE LARGEST ANIMAL MARKET, PARASITES, TICKS, FLEAS, HEARTWORM. THOSE THREE DRUGS ON TOP OF THE INNOVATION THAT WE CURRENTLY HAVE, WE ARE WELL ON TRACK TO THAT 600 MILLION. THAT IS THE BIG DRIVER. VONNIE: IT WILL DO YOU WILL TO GET YOUR DEBT DOWN AS WELL. WHAT ABOUT THE FARM ANIMAL PRODUCTS SIDE? YOU MENTIONED THE METHANE PRODUCT BUT IS THERE MORE YOU CAN DO THERE? JEFF: ABSOLUTELY. WE ARE COMING UP ON 70

YEARS, BEING THE LEADING BRAND FOR FARMERS AND VETERINARIANS, PET OWNERS, LONG LEGACY WITH THE ANIMAL FARM BUSINESS. WE ARE TAKING SHARE IN THIS MARKET. IT HAS BEEN ONE OF OUR GROWTH DRIVERS HERE IN 2024. WHEN YOU LOOK AT POULTRY, DAIRY, BEEF, SWINE, WE ARE A LEADER. WE LOOK AT SAFETY, FEED EFFICIENCY, AND NOW WE ARE LOOKING AT HOW WE CAN REDUCE METHANE AND AMMONIA. WE HAVE THE FIRST PRODUCT APPROVED BY THE FDA FOR BEEF FARMERS. THE PRODUCT WILL BE OUR NEXT BLOCKBUSTER, SHOULD GET NEAR $100 MILLION IN SALES THIS YEAR. NOW IT WILL BE USED

TO REDUCE METHANE. METHANE IS A SHORT-LIVED GAS. WE HAVE CREATED AN INSET MARKET WHERE DAIRY FARMERS WILL GET ANOTHER MONETARY INSTREAM. IN ADDITION TO A MILK CHECK, THEY ARE GETTING A CARBON CHECK WHICH WE HAVE ESTABLISHED. EXCITING TIMES ON THE FARM ANIMAL BUSINESS. YOU ARE RIGHT, GROWTH, INNOVATION, CASH IS WHAT DRIVES ELANCO. WE ARE DRIVING FOR GROWTH THE REST OF THE YEAR WITH ALL THE INNOVATION WE HAVE TALKED ABOUT. FREE CASH FLOW CONVERSION IS UP. THAT WILL ALSO BE A KEY DRIVER. WE ARE AN EXECUTION STORY. A LOT OF MOMENTUM. TODAY IS A GREAT PROOF

POINT OF ANOTHER MILESTONE FOR THIS COMPANY. ALIX: THANK YOU SO MUCH, JEFF SIMMONS. BREAKING NEWS FROM THE WALL STREET JOURNAL. QUALCOMM HAS APPROACHED INTEL ABOUT A TAKEOVER IN RECENT THERE DAYS. UNTIL SHE WAS JUMPING TO A SESSION HIGH. THIS IS COMING FROM THE WALL STREET JOURNAL BUT QUITE INTERESTING. VONNIE: AS WE KNOW, INTEL HAS BEEN HAVING A DIFFICULT TIME OF THINGS TURNING THINGS AROUND. IF QUALCOMM WERE TO TAKE OVER A MUCH SMALLER INTEL NOW, A FRACTION OF THE SIZE IT WAS, WOULD THAT SOLVE INTEL'S PROBLEMS, WOULD THEY WANT TO FIND A WHITE KNIGHT? WHAT WOULD

REGULATORS SAY ABOUT IT? ALIX: DEFINITELY A CONVERSATION PARTICULARLY WHERE THE GOVERNMENT WANTS TO SUPPORT INTEL AND THE BOUNDARIES IT IS BUILDING HERE IN THE U.S. QUALCOMM STOCK IS DOWN BY ALMOST 5%, BUT OVER THE LAST YEAR, UP 53%. IT TIES, BUT YOU WONDER ABOUT THE CURRENCY THAT QUALCOMM NOW HAS. VONNIE: WE HAVE A PAUSE IN INTEL TRADING RIGHT NOW. ALIX: WE WILL KEEP OUR EYES ON THAT HEADLINE. QUALCOMM APPROACHING INTEL ABOUT A DEAL IN RECENT DAYS. NIKE CHANGED CEOS. WE WILL DISCUSS WITH THE INCOMING CEO CAN BRING TO THE TABLE. THIS IS "THE CLOSE" ALIX:

TIME FOR A BECAUSE CAUSE, A LOOK AT SOME OF THE BIG MOVE WAS ON THE BACK OF ANALYST RECOMMENDATIONS. FIRST WE HAVE SNAP. B RILEY GIVING A NEUTRAL RATING AND $11 PRICE TARGET. THE ANALYST SAYS THAT SNAP IS TRADING AT A PREMIUM OF COMPARED TO ITS PEERS. HE ALSO WARNED THE BRAND ADVERTISING CAN BE AN OVERHANG TO THEIR OVERALL GROWTH. SNAP CAN INCREASE ENGAGEMENT FROM DAILY ACTIVE USERS. NEXT IN LINE, A FIRM NEW ANALYST COVERAGE, CASHING OUT ON A POSITIVE RATING FROM SUSQUEHANNA. THE ANALYST SAYS THE BUY NOW PAY LATER COMPANY HAS VARIOUS LANES OF

GROWTH AND MORE INTEREST RATE CUTS FROM THE FED COULD PROVIDE A TAILWIND TO CONSUMER SPENDING, LEADING TO MORE GROWTH FOR OUR FIRM -- AFFIRM. FEDEX COULD NOT DELIVER WHAT ANALYSTS AT MORGAN STANLEY WANTED TO SEE. THE FIRM CUTTING ITS RECOMMENDATION FROM UNDERWAY TO EQUAL WEIGHT ACROBATICS FLASHED ITS ANNUAL SALES FORECAST. THE ANALYST IS CONCERNED ABOUT THE MAGNITUDE OF THE MISS AND SAYS THE ISSUES MAY BE STRUCTURAL NOT CYCLICAL WHICH MEANS THEY MAY NOT GO AWAY ANYTIME SOON. SHARES DOWN 14%. THOSE ARE SOME OF OUR TOP CALLS. VONNIE: ONE STOCK THAT HAS ANALYSTS SOMEWHAT EXCITED BY

THE OTHER DISAPPOINTED IS NIKE. SHARES UP TODAY AFTER THE RETAILER ANNOUNCED CHANGES TO ITS LEADERSHIP. JOHN DONAHOE WILL RETIRE NEXT MONTH. FORMER NIKE EXECUTIVE ELLIOTT HILL WILL RETURN TO THE COMPANY. BUT IS DOING IT A WIN FOR NIKE? TO HELP US ANSWER THE QUESTION IS JIM DUFFY, TO HELP US ANSWER THE QUESTION IS JIM DUFFY., HE HAS A HOLD RATING. WHAT DOES ELLIOTT NEED TO DO IN ORDER TO -- IS IT MORE ABOUT TECHNOLOGY OR MARKETING AND BRAND AMBASSADORS? >> THERE IS A LOT HE NEEDS TO DO. THOSE IN THE MARKET ARE HAPPY TO SEE

A NIKE INSIDER AS CEO AGAIN. ELLIOTT HILL HAS A GOOD BACKGROUND. WE WERE WRITING ABOUT HIM AS A POTENTIAL CEO CANDIDATE IN 2018 POTENTIALLY SUCCEEDING MARK PARKER. HE IS KNOWN AS A CHARACTER GUY, PEOPLE PERSON, GOOD LEADER. THAT IS A REALLY IMPORTANT SKILL SET. A LOT OF WHAT NIKE NEEDS TO DO IS REINVIGORATE THAT ENTREPRENEURIAL CULTURE THAT MADE THEM THE GREAT COMPANY THEY HAVE BEEN FOR SO MANY YEARS. ALIX: HOW LONG DO YOU THINK HE HAS TO MAKE SOME PROGRESS, WHAT WILL BE THE METRIC WITH WHICH HE IS JUDGED ON THAT? JEFF: THE METRIC WILL

BE TOP LINE. NIKE IS SEEING REVENUE DECLINES IN THE MARKET. 2025 IS A TURNAROUND YEAR FOR NIKE. THEY HAVE AN INVESTOR DATE COMING UP IN MID-NOVEMBER WITH THE NEW CEO APPOINTMENT AHEAD OF INVESTOR DATE, WE EXPECT TO SEE ADDITIONAL LEADERSHIP SHAKEUP AT NIKE. WE THINK THAT THERE IS GOING TO BE A FOCUS ON BREATHING NEW LIFE INTO THE PRODUCT ENGINE, EXCITING NEW PRODUCTS TO MARKET, TELLING STORIES BEHIND THAT. BUT THE PRODUCT CYCLE HERE IS 15 TO 18 MONTHS. IT WILL TAKE SOME TIME. VONNIE: ON IS COMING FOR NIKE. THEY HAVE SIGNED ZENDAYA, PEOPLE IN THE

YOUTH DEMOGRAPHIC THAT COULD BRING IN NEW CUSTOMERS. IF NIKE HAS ALL OF THAT TO DO, HOW MUCH CAN IT SPEND, HOW FAST CAN IT DO SOMETHING LIKE THIS? JEFF: YOU BRING UP COMPETITION. ON IS A GREAT COMPETITOR WITH MOMENTUM IN THE MARKETPLACE, ANOTHER ONE IS HOKA. I WILL POINT OUT THAT NIKE HAS HISTORICALLY MADE THEIR LIVING WITH YOUNGER CONSUMERS WHEREAS ON AND HOKA ARE SELLING TO CONSUMER 35 PLUS. WHERE NIKE SEES COMPETITIVE PRESSURE IS FROM ADIDAS, NEW BALANCE, THE YOUNGER CONSUMERS. THOSE YOUNGER CONSUMERS HAVE NOT BEEN EXCITED BY THE PRODUCT OFFERING. THERE HAS BEEN A

LACK OF NEWNESS THAT HAS OPENED THE APERTURE FOR COMPETITORS TO GAIN MARKET SHARE. ALIX: JIM DUFFY, APPRECIATE IT. I WANT TO POINT OUT, INTEL HAS RESUMED TRADING AFTER THAT TRADING PAUSE. UP ALMOST 6% FOLLOWING THAT REPORT THAT QUALCOMM HAS APPROACHED INTEL ABOUT A TAKEOVER IN RECENT DAYS. VONNIE: BREATHING LIFE INTO THE NASDAQ. WE ARE UP ALMOST 7% ON INTEL. ALIX: DEFINITELY KEEPING AN HEADLINES. INTEL IS UP 3% -- 7%. QUALCOMM IS DOWN 3% ON THE NEWS. HALF AN HOUR FROM THE CLOSE OF THE DAY. VOLUME HOLDING IN EVEN THOUGH MARKETS ARE NOT DOING MUCH. VOLUME

IS STILL HIGHER THAN THE 10-DAY MOVING AVERAGE, 40% FOR THE NASDAQ. COMING UP, SPECIAL CONVERSATION WITH NORTH CAROLINA GOVERNOR ROY COOPER, AS SWING STATES GEAR UP FOR A CRITICAL ELECTION SEASON. >> AS ELECTION DAY NEARS PRESIDENTIAL CANDIDATES ARE CRISSCROSSING THE SEVEN SWING STATES, NORTH CAROLINA ONE OF THEM. WE BRING IN ANNMARIE HORDERN JOINED BY NORTH CAROLINA GOVERNOR ROY COOPER. >> WE WELCOME OUR BLOOMBERG TV AND RADIO AUDIENCES. WE ARE WITH GOVERNOR ROY COOPER. THANK YOU FOR JOINING BLOOMSBURG TV. GOVERNOR COOPER: I'M GLAD TO BE HERE. ANNEMARIE: THERE HAS BEEN AN EXPLOSIVE REPORT OVERNIGHT FROM CNN

ABOUT THE SITTING LIEUTENANT GOVERNOR ROBINSON THE GUBERNATORIAL CANDIDATE ON THE REPUBLICAN SIDE. SALACIOUS, VERY OFFENSIVE WORDS HE WAS USING ON A PORN FOR HIM. HE HAS SAID THIS IS TRASH TABLOIDS. DOES IT CHANGE THE RACE? GOV. COOPER: THE COMMENTS WERE SHOCKING, BUT NOT SURPRISING, FOR MARK ROBINSON. HE HAS A HISTORY OF THESE KINDS OF INFLAMMATORY COMMENTS THAT COMPLETELY DISRESPECT WOMEN, THAT INCITE VIOLENCE. WE HAVE NAMES -- KNOWN FOR A WILD THAT HE WAS UNFIT FOR OFFICE. NOT ONLY SHOULD HE HAVE NOT BEEN ELECTED TO THE OFFICE HE IS IN, HE CERTAINLY DOES NOT NEED TO

BE GOVERNOR. IT MAKES IT EVEN MORE CERTAIN THAT JOSH STEIN, OUR ATTORNEY GENERAL, WILL BE ELECTED AS GOVERNOR. AND I ALSO THINK THAT DONALD TRUMP AND NORTH CAROLINA REPUBLICAN LEADERS HAVE CONTINUED TO ENCOURAGE AND SUPPORT MARK ROBINSON AND NOW THEY ARE HAVING TO REAP WHAT THEY ARE SELLING. ANNMARIE: IS IT A DISTRACTION SHORT-TERM OR LIABILITY COME NOVEMBER 5? GOV. COOPER: FOR ANYBODY WHO HAS BEEN A SUPPORTING OR ENCOURAGING MARK ROBINSON IT IS A LIABILITY. VOTERS WILL KNOW THAT DONALD TRUMP BAD THESE -- TRUMP AND THESE REPUBLICAN LEADERS KNEW MARK ROBINSON'S CHARACTER AND THE KINDS OF

THINGS HE WAS SAYING. THIS IS VERY ON BRAND FOR MARK ROBINSON. IT SHOULD HURT THEIR CANDIDACIES AS WELL AS MARK ROBINSON'S. ANNMARIE: YOU THINK IT WELL? GOV. COOPER: YES. ANNMARIE: COULD KAMALA HARRIS BENEFIT FROM THIS? GOV. COOPER: EVEN BEFORE THIS SHE WAS ON TRACK TO MAKE HISTORY AND WIN NORTH CAROLINA. THE LAST DEMOCRATIC NOMINEE TO WIN NORTH CAROLINA WAS BARACK OBAMA. THERE IS THE SAME EXCITEMENT I FELT IN 2008 HERE IN NORTH CAROLINA IN 20 I THINK NORTH CAROLINA CAN24. THIS MAKES IT MORE LIKELY BECAUSE DONALD TRUMP HAS EMBRACED MARK ROBINSON FOR QUITE A WHILE

AND STILL, TO THIS DAY, HAS NOT SAID ANYTHING NEGATIVE ABOUT MARK ROBINSON. ANNMARIE: HE WILL BE HERE TOMORROW. ABOUT WINNING NORTH CAROLINA FOR THE DEMOCRATS. BARACK OBAMA ONLY WON IT IN 2008, ONLY HIS FIRST TERM. WHY IS THIS A STATE WILLING TO VOTE FOR DEMOCRATS AT THE STATE LEVEL? YOU HAVE BENEFITED FROM THAT. BUT NOT THE NATIONAL LEVEL? GOV. COOPER: NORTH CAROLINIANS ARE VERY INDEPENDENT AND WILL SPLIT THEIR TICKET. WE HAVE SEEN THIS TIME AND AGAIN. WE ARE A VERY PURPLE STATE. WE WILL ALWAYS BE CLOSE. DONALD TRUMP HAS TO WIN NORTH CAROLINA TO BE

PRESIDENT. IF KAMALA HARRIS CAN WIN HERE SHE IS AT THE NEXT PRESIDENT OF THE UNITED STATES. ANNMARIE: THE TOP ISSUE IN NATIONAL AND LOCAL POLLS HAS BEEN INFLATION. DO YOU FIND VOTERS ARE MORE WILLING TO BLAME THE POLITICIANS IN WASHINGTON, D.C., NOT THE LOCAL ONES? GOV. COOPER: PEOPLE ARE FRUSTRATED WITH PAYING MORE AT THE GROCERY STORE, FRUSTRATED THEIR DOLLAR DOES NOT GO AS FAR. IT IS CLEAR THAT KAMALA HARRIS HAS WORKED VERY HARD TO HELP CONTROL COSTS. SHE HAS WORKED TO MAKE SURE WE GOT A BETTER PAYING JOBS FOR PEOPLE. NOW, SHE CAME TO NORTH

CAROLINA TO ROLLOUT HER ECONOMIC PLAN THAT WILL HELP SMALL BUSINESSES, TO HELP FIGHT HIGHER PRICES AT THE GROCERY STORE. I THINK IT IS HAVING AN EFFECT ALREADY. INFLATION IS COOLING IN OUR COUNTRY. I THINK IT WILL BE POSITIVE FOR HER. I THINK THAT PEOPLE HAVE LISTENED TO HER AND BELIEVED SHE CARES ABOUT MIDDLE-CLASS NORTH CAROLINIANS. DONALD TRUMP ONLY CARES ABOUT THE WEALTHY AND CORPORATIONS AND HIMSELF. ANNMARIE: THE RATE OF INFLATION HAS COME DOWN, BUT PEOPLE ARE STILL STRUGGLING WITH PRICES. THAT'S NOT COMING DOWN. A LOT OF THINGS KAMALA HARRIS TALKS ABOUT, YOU NEED COMMERCIAL SUPPORT.

IT IS VERY SLIM ON DETAILS. DOES SHE NEED TO DIVE DEEPER INTO POLICY DISCUSSIONS? GOV. COOPER: SHE HAS ROLLED OUT A VERY SPECIFIC PLAN. SHE IS AWARE THAT GETTING LEGISLATION THROUGH CONGRESS REQUIRES A LOT OF WORK AND CONSENSUS BUILDING. SHE WAS A KEY PART OF THE BIDEN HARRIS ADMINISTRATION THAT GOT THROUGH THE INFLATION REDUCTION ACT, THE BIPARTISAN INFRASTRUCTURE ACT, AMERICAN RESCUE PLAN, CHIPS AND SCIENCE, ALL OF THESE LEGISLATIONS THAT WILL MAKE GENERATIONAL INVESTMENTS. SHE CAST THE DIVIDING VOTE SOMETIMES. SHE UNDERSTANDS SHE WILL HAVE TO GET DOWN TO THE DETAILS AND FIND IDEAS THAT WORK. PEOPLE

TALK ABOUT TRYING TO FIGHT HIGHER PRESSURES THAT -- HIGHER PRICES AT THE GROCERY STORE. SHE HAS TALKED ABOUT TRYING TO FIGHT THOSE PRICES. THERE ARE WAYS TO DO THAT. I'M EXCITED THAT SHE'S READY TO TAKE THIS ON. ANNMARIE: THE OTHER TOP ISSUE IN THIS RACE, ESPECIALLY NORTH CAROLINA, WHEN YOU LOOK AT THESE POLLS, IS ABORTION, ONE THING YOU HAVE BEEN FOCUSED ON. VOTERS IN NORTH CAROLINA SEEM TO WANT A MIDDLE GROUND. THEY SEEM TO BE COALESCING AROUND 15 WEEKS AS A CUT OFF FOR ABORTION. DO YOU THINK IT IS SOMETHING DEMOCRATS AND REPUBLICANS CAN COMPROMISE

ON? GOV. COOPER: YOU CAN'T COMPROMISE ON WOMEN'S RIGHT TO CHOOSE. I DO NOT THINK YOU CAN COMPROMISE ON THE FACT THAT WE HAVE WOMEN WHO ARE IN DANGER OF DYING BECAUSE DOCTORS ARE AFRAID OF THE GOVERNMENT COMING IN AND GETTING BETWEEN THEM AND THEIR PATIENTS. THIS IS EXACTLY WHAT IS HAPPENING ACROSS THE COUNTRY. WE HAVE A 12 WEEK ABORTION BAN. WITH MORE REQUIREMENTS, A 72 HOUR REQUIREMENT -- MANY WOMEN HAVE A DIFFICULT TIME FACING, THEY HAVE PUT IN AND A LOT OF OTHER RESTRICTIONS. THERE IS AND ABORTION BAN IN NORTH CAROLINA THAT PASSED OVER MY

VETO BY ONE VOTE. EVERY REPUBLICAN VOTED TO OVERRIDE MY VETO. EVERY DEMOCRAT VOTED TO SUSTAIN IT. ANNMARIE: IT CAME FROM 20 TO 12. COULD THERE BE A COMPROMISE FOR 15 OR 16 WEEKS? GOV. COOPER: YOU CAN'T TALK ABOUT WOMEN'S HEALTH IN THAT WAY. MANY OF THESE CASES ARE VERY COMPLICATED AND OFTEN INVOLVE PARENTS THAT REALLY WANT TO HAVE CHILDREN, BUT HAVE EXTRAORDINARY COMPLICATIONS. THIS ISSUE SHOULD BE LEFT WOMEN AND THEIR DOCTORS. THAT IS WHY PEOPLE LIKE DONALD TRUMP, PEOPLE LIKE MARK ROBINSON ARE DANGEROUS. THEY BELIEVE POLITICIANS SHOULD BE IN THAT EXAMINING ROOM WITH WOMEN AND

THEIR DOCTORS AND THAT THERE SHOULD BE HARD AND FAST RULES. THEN WHAT HAPPENS IS YOU IN DANGER WOMEN'S LIVES. YOU TAKE AWAY WHAT SHOULD BE THEIR CONSTITUTIONAL RIGHTS. ANNMARIE: THE FORMER PRESIDENT HAS SAID HE WANTS TO LEAVE IT UP TO THE STATES. THAT IS SOMETHING YOU ARE DEALING WITH NOW. I WANT TO END ON YOUR FUTURE. IF YOU THINK ABOUT HER AS WELL WIN NORTH CAROLINA YOU WILL BE THE MAN TO HELP DELIVER THOSE ELECTORAL VOTES TO HER. WHAT DO YOU HAVE IN MIND? ATTORNEY GENERAL? GOV. COOPER: THE FINISH LINE OF MY TERM AS GOVERNOR.

I WANT TO RUN THROUGH THE TAPE. EVERY SO MUCH HAPPENING HERE, INVESTING THESE GENERATIONAL DOLLARS FOR OUR CHILDREN AND GRANDCHILDREN. I LOVE PUBLIC SERVICE. I WILL SEE WHAT'S NEXT AFTER THIS. ANNMARIE: SO YOU AREN'T DONE YET? GOV. COOPER: I DON'T THINK SO. I DO LIKE PUBLIC SERVICE. WE WILL SEE WHAT HAPPENS. ANNMARIE: DO YOU THINK THERE NEEDS TO ME MORE TRUST -- BE MORE TRUST NOW IN THE DOJ? IS THAT SOMETHING WE CAN BRING TO THE DEPARTMENT OF JUSTICE? GOV. COOPER: I WON'T GET INTO ANY OTHER CABINET POSITION I MAY OR MAY NOT BE INVOLVED

IN. KAMALA HARRIS HAS TO WIN BEFORE SHE CAN MAKE THOSE KINDS OF CHOICES. GOV. COOPER: GOVERNOR ROY COOPER, THANK YOU FOR YOUR TIME. GOVERNOR ROY COOPER OF NORTH CAROLINA. A VERY SWING STATE SELECTION. ANNMARIE: GREAT STAFF. THANK YOU TO BLOOMBERG'S ANNMARIE HORDERN. >> BREAKING NEWS. JOHNSON & JOHNSON SAYS ABOUT 83% OF CLAIMANTS HAVE A SUPPORT OF SUPPOSED BANKRUPTCY PLAN. RED REV OR THE UNIT OF J&J FILED FOR CHAPTER 11 BANKRUPTCY TO FULLY AND FINALLY RESOLVE ALL CURRENT AND FUTURE CLAIMS RELATED TO OVARIAN CANCER THAT AROSE FROM COSMETIC TALC LITIGATION. RED RIVER INCREASED COMMITMENT TO A

TOTAL OF $8 BILLION. THE PLAN WOULD RESOLVE 99.75% OF ALL PENDING TALC LAWSUITS AGAINST THE COMPANY AND ITS AFFILIATES IN THE U.S.. THE STOCK IS DOWN BY ABOUT .5%. >> INTEL HAS BEEN APPROACHED BY QUALCOMM ABOUT A TAKEOVER. IT'S TIME FOR THE STOCK OF THE HOUR. FOLLOWING THE BREAKING NEWS ITEMS LET'S GET MORE CONTEXT FROM BLOOMBERG'S ED LUDLOW FROM SAN FRANCISCO. QUALCOMM APPROACHED INTEL ABOUT A TAKEOVER APPARENTLY. IT WOULD BE A NICE DEAL IF QUALCOMM COULD GET ITS HANDS ON INTEL AT A FRACTION OF THE PRICE IT WAS AT A COUPLE YEARS AGO. ED: I

WOULD SAY IT IS ALL ACCORDING TO A WALL STREET REPORT THAT IS QUITE THIN ON DETAILS, SIMPLY THAT QUALCOMM MADE AT APPROACHED INTEL IN RECENT DAYS. THEY CITED PEOPLE FAMILIAR WITH THE MATTER WITHOUT NAMING THEM. LOOK AT THE BASICS. QUALCOMM HAS ABOUT $13 BILLION OF CASH AND CASH EQUIVALENTS ON ITS BALANCE SHEETS. IT HAS A MARKET CAP OF AROUND $137 BILLION -- SORRY $138 BILLION. INTEL HAS JUST ANNOUNCED IT IS RESTRUCTURING. WHEREBY, THEY PULLED BACK ON SOME PROJECTS. NAMELY IN EUROPE. THEY SECURED A FAB CUSTOMER IN INTEL AND SEPARATED OUT THE FAB UNIT. I WOULD

SAY THE CONTEXT YOU ASKED FOR IS THAT THIS DOESN'T MAKE A LOT OF SENSE IN THE CONTEXT OF WHAT QUALCOMM HAS BEEN DOING HISTORICALLY. QUALCOMM IS A SMART PHONE TO. IT WANTS TO BE A PC CHIPMAKER, EMBARQ IT INTEL HAS DOMINATED. IT WANTED TO DO IT WITH ITS OWN TECHNOLOGY, NOT NECESSARILY THROUGH MNA. WE CAN TALK ABOUT THE LOGIC ON BOTH SIDES, BUT YOU CAN SEE THE MARKET REACTING. >> WHAT WOULD BE THE LOGIC IN QUALCOMM? DOES IT HAVE TO BE THE WHOLE COMPANY? WOULD BITS AND PIECES OF INTEL MAKE MORE SENSE? ED: QUALCOMM HAS

NO EXPERIENCE OF MANUFACTURING. WE CALL IT A CHIPMAKER, BUT IT'S NOT. IT'S A CHIP DESIGNER. INTEL HAS U.S. PRODUCTION OF ITS OWN CHIPS. WHITE ESTABLISHED, IN OREGON, FOR EXAMPLE. IT COULD BE CONSOLIDATION OF THAT FOR QUALCOMM. IT SAYING, INTEL HAS A FAB AND WE COULD FILL IT WITH CHIPS IN AMERICA, TAKING ADVANTAGE OF THE POLITICAL INDUSTRY ENVIRONMENT. FROM INTEL'S ASIDE, THE COMPANY IS AND COMMENTING. WE HAVE NOT VERIFIED THIS REPORT AT BLOOMBERG. VONNIE: WE DON'T WANT TO GO TOO FAR INTO SPECULATION AS TO IF AND WHEN ETC.. INTEL SAID IT WASN'T GOING TO GET RID

OF MOBILEYE'S. IT WANTS TO KEEP THE PARTS OF IT IT HAS DECIDED TO KEEP. IT DOES THAT MEAN IT WOULDN'T BE AMENABLE TO A DEAL LIKE THIS? ED: THAT'S AN ISSUE OF CHRONOLOGY. INTEL CAME OUT AFTER MARKET CLOSE EARLIER THIS WEEK SAYING IT'S OUR PLAN TO PULL BACK IN EUROPE, SEPARATE THE FOUNDRY BUSINESS, AND AWS HAS AGREED TO BE A FOUNDRY CUSTOMER. THEY LATER ISSUED A STATEMENT SAYING THEY HAD NO PLANS TO SPECIFICALLY DIVEST THEIR STAKE. IT HAS BEEN NORMAL PRACTICE FOR INTEL TO SELL SMALL TRANCHES OVER -- OF THEIR GLOBALIZED ESTATE OVER A PERIOD

OF TIME, A RETURN ON INVESTMENT OR CASH FLOW THING. THEY SAY THEY REMAIN COMMITMENT -- COMMITTED TO THE DRIVING STORY OF MOBILEYE'S. TO EXTRAPOLATE OUT IN THE WALL STREET JOURNAL REPORT THAT BLOOMBERG HAS NOT VERIFIED THEY HAVE JUST GONE THROUGH A BIG STRATEGIC REASON, INTEL, ANOTHER ONE, AFTER A LONG PERIOD OF TRYING TO. THERE IS NO REPORT THAT THEY ARE SHOPPING THEMSELVES TO ARRIVAL CHIPMAKER. ALIX: THAT WAS PART OF THE CONVERSATION IN TERMS OF STRATEGIC INITIATIVES. IF ANYTHING THEY'S HAVE -- THEY HAVE SEEMED TO DECIDED AGAINST THAT. WITH INTEL GOING IT ALONE, WHAT ARE THE

KEY MARKETS YOU ARE LOOKING AT? ED: IT IS THE IDEA THAT IF THE REPORT IS ACCURATE IT IS QUITE INTERESTING FROM QUALCOMM. THEY HAD A PERIOD WHERE CRISTIANO THEM ON WANTED TO DIVERSIFY THEM AWAY FROM THEIR HISTORIC BASE. THERE IS EVIDENCE THEY HAVE DONE THAT. THEY ARE STRONG IN AUTOMOTIVE CHIPS. IT IS THE AGE OF AT A IPC. I AM USING A DELL WITH A QUALCOMM THE SNAPDRAGON IN EDGE. THEY ARE MAKING HEADWAY IN THE PC MARKET. WHY WOULD THEY DO THIS? I'M A REPORTER, NOT A BANKER. I DON'T KNOW IF THE MATH MATHS IN

TERMS OF HOW YOU WOULD FINANCE SUCH A DEAL. ALIX: QUALCOMM STOCK UP 53% OVER THE LAST YEAR EVEN THOUGH WE ARE OFF THE HIGHS WE HAVE SEEN. WE APPRECIATE YOU JUMPING ON WITH US FOR BREAKING NEWS. QUALCOMM APPROACHED INTEL OVER THE LAST SEVERAL DAYS ABOUT SOME KIND OF BUYOUT, MERGER, TAKEOVER, SOMETHING ALONG THOSE LINES. VONNIE, WE ARE 15 MINUTES FROM THE CLOSING BELL, WAITING FOR SOMETHING EXCITING. VONNIE: INVESTORS MIGHT BE TAKING THIS SERIOUSLY, OR AT LEAST TO THOSE INTERESTED IN MERGER OR WHAT HAVE YOU. BOTH STOCKS ARE HIGHER. ALIX: THAT'S INTERESTING. THE NASDAQ IS NOW

FLAT ON THE DAY ALONG WITH THE S&P. VOLUME HIGHER THAN THE 10 DAY MOVING AVERAGE BUT NOTHING TO WRITE HOME ABOUT. >> I A LOT OF CHATTER. MORE TALK. HOPEFULLY ON THE WAY TO ASAPH LANDING. -- A SOFT LANDING. ALIX: JP DIAMOND COUNTY -- NOT COUNTING HIS ED'S BEFORE THEY HATCH. I'M ALIX STEEL. VONNIE: I'M VONNIE QUINN. ALIX: THE S&P GOING NOWHERE. THE NASDAQ DOWN .2%. THE VIX IS 16 DESPITE THE MASSIVE OPTIONS EXPIRATION. THE TECHNOLOGIES SELECT SECTOR THE SLK, INDEX REBALANCING WITH A LOT OF FLOW SURRENDERED -- CENTERED AROUND TECH STOCKS BUT EVEN THAT

IS DOWN .5%. VONNIE: QUALCOMM APPROACHED INTEL FOR A TAKEOVER OFFER. QUALCOMM DOWN A 3.6%. EARLIER I CALLED IT BROADCOM. INTEL IS HIGHER. IT IS MODERATING GAINS. UP LESS THAN IT WAS EARLIER ON. JUST POSITIVE BY ABOUT 4.25%. ALIX: LET'S WELCOME STEVE SOSNICK STEVE -- CHIEF STRATEGIST AT INTERACTIVE BROKERS GROUP. STEVE: TRIPLE WITCHING DOES STILL MATTER. THE FACT WE RALLIED 30 POINTS IN THE LAST HOUR AND I HAVE PROBABLY HAD TO DO WITH GETTING READY FOR EXPIRATION. A COUPLE THINGS MAKE TRIPLE WITCHING EXPIRATION SPECIAL. FUTURES EXPIRE. THAT TENDS TO HAPPEN IN THE MORNING. THE OTHER KEY

IS, EVERY OPTIONS CLASS HAS AN EXPIRATION TODAY. YOU GET MOVES UNDER THE SURFACE YOU DON'T NECESSARILY SEE. TODAY WE HAVE A BIG S&P REBALANCE, WHICH MIGHT BE A LITTLE CHALLENGING. YOU HAVE THREE STOCKS GOING IN THAT ARE MUCH BIGGER THAN GOING OUT. PLUS, YOU HAVE APPLE GETTING ITS WEIGHTING RAISED CONSIDERABLY. THAT'S WEIRD BECAUSE BUFFETT SOLD AND NOW HIS SHARES GO TO THE FLOAT, WHICH IT WAS NOT BEFORE. IT'S KIND OF BACKWARDS. BUT, YOU WILL GET SOME OF THE MOVEMENT COMING OUT OF THAT. MARKETS KNOW HOW TO HANDLE THIS NOW. WE LITERALLY HAVE AN EXPLORATION --

EXPIRATION EVERY DAY. IT IS A MINOR ONE. WE HAVE GOTTEN BETTER AT HANDLING IT. VONNIE: WE GOT ACTION THIS MORNING AND PRESUMABLY DOORS -- PRESUMABLY THERE IS MORE ACTION AFTER THE CLOSE INTO NEXT WEEK. STEVE: THINGS COULD GO HAYWIRE AS WE SIT HERE TALKING SO I HAVE ONE EYE ON THE SCREENS. MAY BE THE FINAL PRINT IS THE LAST BIT OF CRAZINESS. IT WAS A TRICKY WEEK. ACTUALLY, BECAUSE YESTERDAY'S RALLY WAS SO EXTREME. WE ACTUALLY BLEW THROUGH A LOT OF THE STRIKES. SO, THE DRAMA, IN AN EXPIRATION, OUR STRIKES EXPIRING RIGHT AROUND THE MONEY, AT

THE MONEY, PLUS OR MINUS A LITTLE BIT. WE BLEW THROUGH THEM WITH THE RALLY. IT WON'T BE AS DRAMATIC TODAY BECAUSE SO MUCH OF THE ACTION HAPPENED YESTERDAY. ALIX: VOLATILITY CONTROLLED FUNDS, RISK PARITIES, ETA'S, HAVE THEY REPOSITIONED THEMSELVES POST SAID? STEVE: GENERALLY YEAH. THEY ARE MECHANICAL. THE ONES THAT WAITED UNTIL YESTERDAY PROBABLY HAD A PRETTY DIFFICULT TIME DOING IT. EVERY FUND IS DIFFICULT. THAT IS A RISK TO OWNING VOLATILITY CONTROLLED FUNDS A LOT OF THE CALLS, IT'S NOT NECESSARILY THE BEST CALL WRITING ENVIRONMENT BECAUSE YOU ARE GIVING UP YOUR UPSIDE IN EXCHANGE FOR RETURN, INCOME

FROM THE CALL WRITING. THAT PUTS THEM IN A LITTLE BIT OF A BIND. NOT EVERY MANAGER IS CREATED EQUAL. SOME ARE EXTRAORDINARILY GOOD AT HANDLING VOLATILITY. I AM THINKING OF A COUPLE FUNDS I KNOW RUN BY FORMER OPTIONS MARKET MAKERS. OTHERS I'M NOT SURE ABOUT THEIR OPTIONS EXPERIENCE. I WON'T NAME NAMES, BECAUSE THAT'S NOT FAIR. BUT THESE ARE THINGS YOU HAVE TO KEEP IN MIND. VONNIE: MICHAEL HARTMAN IS SAYING IT COULD BE A BUBBLE AND AGAIN. ALL THE CONDITIONS IN PLACE INCLUDING THE POTENTIAL FOR 18% GROWTH IN S&P 500 COMPANY EARNINGS NEXT YEAR. HE WOULD

CAUTION AGAINST TOO MUCH ENTHUSIASM. ARE WE IN BUBBLE TERRITORY? STEVE: I HATE TO USE THE B WORD BUT I AGREE WITH HIS BASIC PREMISE. THERE ARE A FEW PHRASES THAT I TRY TO AVOID BECAUSE THEY GET YOU IN TROUBLE. BUT I DON'T DISAGREE WITH THE BASIC PREMISE. IT IS HARD TO RECONCILE AN ECONOMY THAT MIGHT REQUIRE 50 BASIS POINT CUTS AS THE MARKET IS EXPECTING. POWELL KEEPS TELLING US LOOK AT 25, THE MARKET IS PRICING IN 50. YOU DON'T GET THAT UNLESS YOU HAVE A WEAK ECONOMY. YOU DON'T GET DOUBLE DIGIT EARNINGS GROWTH UNLESS YOU

HAVE A STRONGER ECONOMY. SOMETHING HAS GOT TO GIVE. I THINK PEOPLE ARE ENTHUSIASTIC. MARKETS LOVE THIS. THE FED ISN'T ABOUT THE MARKETS REALLY. THEY ONLY GET ABOUT THE MARKETS WHEN THE MARKETS THREATEN THE REAL ECONOMY. WHAT IT MEANS IN THE SHORT TERM AS YOU HAVE EXCESS LIQUIDITY COMING IN FROM THE MONETARY ACCOMMODATION. BUT, ULTIMATELY, THE STOCK MARKET HAS TO FOLLOW THE BROADER ECONOMY. SO, THAT IS WHERE I DON'T DISAGREE WITH HIS PREMISE. THE ECONOMY HAS TO DELIVER FOR THESE VALUATIONS TO MAKE SENSE. ALIX: IT ALSO DEPENDS ON WHY THEY CAN'T. WALLER WAS SAYING EARLIER TODAY

HE WANTED TO PUT AT 50 BASIS POINTS BECAUSE INFLATION WAS COMING DOWN, NOT BECAUSE HE WAS WORRIED ABOUT GROWTH. OTHERS ON THE FED CLEARLY ARE WORRIED ABOUT SOMETHING DIFFERENT. STEVE: I THINK THE FED IT NEEDS TO BE MORE CLEAR ABOUT WHERE NEUTRAL LIES, WHAT THEY REALLY THINK. WE HAVE BEEN SPOILED. SINCE THE GLOBAL FINANCIAL CRISIS THROUGH GLOBAL -- THROUGH COVID ESSENTIALLY ZERO REAL AND NOMINAL INTEREST RATES. THROUGH MOST OF HISTORY WE DID NOT HAVE EITHER OF THOSE. WHAT IS ACTUALLY THE NEUTRAL RATE? I WOULD ARGUE IT'S NOT A ZERO REAL RATE. WE DID FIND THROUGH

MOST OF OUR EXISTENCE SOMEWHERE BETWEEN RUN PERCENT -- 1% AND 2%. WE ARE AT THE HIGHER SIDE NOW BECAUSE INFLATION IS COMING DOWN. ALIX: THANK YOU STEVE SOSNICK CHIEF STRATEGIST AT INTERACTIVE BROKERS. THE MARKET IS OFF BY .2 PERCENT. VOLUME 28% HIGHER IN THE 20 DAY MOVING AVERAGE. VONNIE: FASCINATING. A HUGE, STUNNING RALLY YESTERDAY. TODAY MORE MUTED. THEY ARE DEFINITELY TRADING, JUST NOT PUSHING STOCKS HIGHER LIKE YESTERDAY. ALIX: UTILITIES INDEX UP BY ABOUT 2.7%, WITHIN THE S&P, DEFINITELY OUTPERFORMING. A ONE-STOP STORY LIKE CONSTELLATION ENERGY, THAT WE WILL GET TO. A SAFETY PLAY, A DIVIDEND PLAY?

VONNIE: WE WILL GET A LOT MORE NEXT WEEK. AT THE BLACKOUT PERIOD IS DONE AND DUSTED. WE WILL GET A LOT OF EXPLAINING. ALIX: EXPLAINING AND ECONOMIC DATA. PCE ALSO COMING OUT NEXT WEEK. THE LABOR MARKET WILL BE KEY FROM THAT PERSPECTIVE. I CONTINUE TO LOOK AT THE S&P OFF BY .2%. OFF ITS LOWS. NOT NEAR ITS HIGHS. WRAPPING IT UP ON THIS FRIDAY. >> THE CLOSING BELL. BLOOMBERG'S CROSS PLATFORM COVERAGE OF THE U.S. MARKET CLOSE STARTS NOW. ALIX: TWO MINUTES FROM THE END OF THE TRADING DAY ALIX STEEL AND VONNIE QUINN HERE TO TAKE

YOU THROUGH THE CLOSING BELL WITH OUR GLOBAL SIMULCAST OF CAROL MASSAR AND MATT MILLER BRINGING TOGETHER BLOOMBERG TELEVISION, RADIO, AND YOUTUBE AUDIENCES WORLDWIDE TO PARSE THROUGH NOT THAT EXCITING BUT VOLUME ELEVATED OVER THE 10 THE AVERAGE. CAROL: THE CRUCIAL VOLUME HAPPENS MINUTES AGO. QUALCOMM AND INTEL, YOU THINK THINGS ARE QUIET, AND JUST ONE HEADLINE. BOTH DOWN ABOUT 3%. YOU HAVE BEEN TALKING ABOUT IT A LOT. MATT: THE CRUCIAL MOMENT WAS NOT TRIPLE WITCHING. IT SEEMS LIKE EVERY QUARTER -- [OVERLAPPING CHTTER] WHAT WAS THE LAST TIME AN EXPIRY MADE A DIFFERENCE IN THE MARKET? >> DID

YOU NOT SEE THE MASSIVE VOLUME OF 222%? MATT: TRUE. I'M TALKING ABOUT PRICE ACTION. WHEN I LOOK AT MY 401(K), I DON'T CARE WHAT THE VOLUME WAS. >> WE WILL SEE AN IMPACT ON PALANTIRA AND DELL -- PALANTIR AND DELL. SOME OF STOCKS ENTERING THE INDICES DID NOT GET HIGHER IN THE DAY BUT THEY DID IN THE DAYS FOLLOWING. CAROL: OVERALL I'M LOOKING OUT THE DOW UP 1.6% AND THE NASDAQ UP 1.5%. OVERALL LOTS OF STUFF. MATT: THE S&P UP -- YOU LEFT OUT THE MOST IMPORTANT ONE. TALKING ABOUT THE INDEXES -- CAROL: INDECES? MATT:

THAT'S NOT RIGHT. >> THEY ARE THE BELLS. THE S&P SETTLING OUT DOWN .2%. THE NASDAQ UP BY .4%. TRYING TO MAKE A RUN INTO POSITIVE TERRITORY ON THE QUALCOMM/INTEL REPORT FROM THE WALL STREET JOURNAL. THE DOW SLIGHTLY POSITIVE. NIC CAPS -- MID CAPS HAD A RALLY YESTERDAY. CLOSING DOWN .7%. THE RUSSELL, OF PERFORMING BY 1.1%. CAROL: GOING BACK TO THE S&P 500, DIGGING DEEPER INTO THAT INDEX, 173 NAMES AND THE S&P 500 TO THE UPSIDE, MORE THAN 300 NAMES LOSING GROUND. CONSTELLATION ENERGY, YOUR BEST-PERFORMING NAME AND THE S&P 500 THIS WEEK. AT THE BOTTOM OF

THE PACK, WHEN WE TALK ABOUT LAST NIGHT AND THIS MORNING AND THROUGHOUT THE DAY, FEDEX, DOWN ABOUT 11%. >> IF YOU LOOK INTO THE S&P 500, THERE'S QUITE A LOT OF RED. MANY SECTORS IN THE RED TODAY. NOT DOWN BY AS MUCH AS SOME SECTORS WERE UP YESTERDAY. NOT A HUGELY DOWN DAY. SOME DEFENSIVE PLAYS WERE LOWER. REAL ESTATE FOR EXAMPLE, INDUSTRIALS. INFORMATION-TECHNOLOGY, A LITTLE BIT OF PROFIT-TAKING BEFORE THE WEEKEND. THE WHOLE SECTOR IS DOWN HALF A PERCENT. LET'S NOT FORGET THE QUALCOMM/ INTEL STORY THAT HAD AN IMPACT ON CERTAIN STOCKS. CAROL: A LOT OF

RED. MATT: THAT'S A WEIRD VIEW, THE IMAP, WHY DON'T YOU USE GRR? >> WE LIKE THE VISUALS. THE COLORS. IT'S EASIER TO SEE SOMETIMES. CAROL: IT'S A REALLY GREAT VISUAL. >> WE DON'T GO ON YOUR SHOW AND CRITICIZE YOUR GRAPHICS. CAROL: HE'S NOT FEELING WELL TODAY. HE'S GOT SOME COLD MEDICINE. >> [INDISCERNIBLE] WAS THE TOP PERFORMER. EXPLAIN WHAT THAT IS -- IS TO US. CAROL: YOU GUYS TAKE THIS OUTSIDE. I'M GOING TO GET TO THE INDIVIDUAL GAINERS. NIKE IS UP 7% IN TODAY'S SESSION. WE KNOW THE STORY. WE TALKED ABOUT THIS YESTERDAY. LATE YESTERDAY. THE

COMPANY'S CEO IS OUT. THEY ARE BRINGING BACK ELLIOTT HILL OUT OF RETIREMENT TO HELP THIS COMPANY THAT'S HAD STRUGGLES IN TERMS OF SALES. THIS ONE DEFINITELY AN OUTPERFORMER TODAY. CONSTELLATION, THE BEST-PERFORMING NAME IN THE S&P 500. NOT ONLY IN TODAY'S SESSION BUT ALSO THE WEEK OVERALL, UPP 22% TODAY. THIS HAS TO DO WITH CONSTELLATION ENERGY, THE OWNER OF THREE MILE ISLAND, IT'S GOING TO INVEST $1.6 MILLION. AGREEING TO SELL ALL OF THE OUTPUT TO MICROSOFT. MICROSOFT LOOKING TO POWER ALL OF ITS COMPUTING NEEDED FOR AI. THAT WAS A BIG PERFORMER, CONSTELLATION ENERGY. ONE MORE, CROWDSTRIKE,

A TOP PERFORMER. OF 8%. . -- UP 8%. NEMO CAPITAL MARKETS, UNDERSCORING THE NAME FOR CONSOLIDATION IN THE CYBERSECURITY MARKET AND THE TECH COMPANY WILL LIKELY HELP LEAD IT, SPECIFICALLY CROWDSTRIKE. >> CONSTELLATION ENERGY NOT ONLY HAS DONE SO WELL, BUT IT IS THE TOP -- THE NUMBER THREE BEST-PERFORMING STOCK IN THE S&P SO FAR THIS YEAR. CAROL: FOR THE YEAR OVERALL. >> WHO WOULD HAVE THOUGHT? CAROL: HUGE. PRETTY COOL STUFF. MATT: THAT IS COOL ESPECIALLY WHEN YOU FEEL LIKE ENERGY IS ONE OF THE BIGGEST LOSING SECTORS. >> I SHOULD MENTION INTEL ON THAT HEADLINE UP

ABOUT 3% AT THE CLOSE. MATT: YOU WANT TO KNOW THE LOSERS? FEDEX, OBVIOUSLY. CAROL: WE CALL THEM DECLINERS. NOT LOSERS. MATT: BUT IF YOU ARE DOWN 15% IN A DAY -- BIG L THERE. WE KNOW THE STORY. WE BROKE IT YESTERDAY ON THIS PROGRAM. THE BIGGEST DROP IN TWO YEARS AFTER WARNING BUSINESS WAS SLOW IN THE YEAR AHEAD, ALSO MISSING EXPECTATIONS FOR THE QUARTER THAT WAS. IT'S AN OMINOUS SIGN FOR THE DIRECTION OF THE U.S. ECONOMY AS A BELLWETHER. FEDEX LIKE UPS WHICH SAID EARLIER THIS YEAR WAS HURT BY A PULL BACK ON PRIORITY SERVICES.

CUSTOMERS TRADED DOWN A CHEAPER SHIPPING OPTION. WE HEARD ABOUT A COUPLE OF THEM TODAY ON TRACK APPARENTLY IS THE SHIPPER YOU COULD USE. >> NEVER HEARD OF THEM. BUT THEY ARE TRYING TO BUILD UP. >> I THINK PEOPLE ARE LESS CONCERNED ABOUT GETTING THEIR ABSOLUTELY POSITIVELY TOMORROW MORNING -- ECHO TAKE A COUPLE OF DAYS. ---- IT COULD TAKE A COUPLE OF DAYS. ANOTHER LOSER TODAY IS DANA. I LOVE THIS COMPANY. THEY MAKE THE MOST FAMOUS AXLES IN THE WORLD. A DANA 44, A 60 WILL NOT BREAK THAT DIFFERENTIAL. >> WERE WE NOT JUST TALKING ABOUT

THIS COMPANY? >> I DIG MY AXLE. GO AHEAD. [LAUGHTER] >> I BELIEVE ALIX KNOWS ABOUT IT. >> SHE TOTALLY WOULD KNOW. >> IT'S A SUPPLIER TO THE AUTO INDUSTRY. IT WAS DOWN AFTER WELLS FARGO DOWNGRADED THE STOCK TO UNDERWEIGHT. ESSENTIALLY A NICE WAY OF SAYING SELL. SETTING EXPECTATIONS FOR FALLING SALES ON THE NORTH AMERICAN HEAVY TRUCK AND SUPER DUTY MARKETS. LENNAR SHARES FELL THE MOST INTRADAY SINCE AUGUST, WHICH WAS ONLY LAST MONTH. TRADERS DIGESTING FOURTH-QUARTER FORECASTS THAT WERE SHORT OF THE HIGHEST ANALYST EXPECTATIONS. IF THE MARKET IS PRICE TO PERFECTION, YOU HAVE TO DO BETTER

THAN ME. . YOU REALLY HAVE TO BEAT. LENNAR SHARES ARE DOWN FIVE AND A THIRD PERCENT AT THE CLOSE. >> WE ALL KNOW THE STORY, STEEPER CURB, THAT CONTINUED TODAY. YOU HAD 15 BASIS POINTS BETWEEN THE TWO AND ATTENDS. ON A WEEKLY BASIS, THE 210 SPREADS STEEPENING FOR FIVE STRAIGHT WEEKS. WE HAVE NOT SEEN THAT KIND OF RALLYING -- CONSISTENT RALLY SINCE OCTOBER OF 2021 WITHIN THE YIELD MARKET. YOU ARE TAKING A LOOK AT 15 BASIS POINTS IS THE SPREAD THERE. THE HIGHEST SINCE JUNE OF 2022. >> LET'S GET TO SOME OF THE STORIES POPPING

ON OUR RADAR. THIS ONE AMONG THE MOST READ HAS TO DO WITH JP MORGAN'S JAMIE DIMON SPEAKING IN WASHINGTON, BASICALLY SAYING HE REMAINS SKEPTICAL ABOUT A SOFT LANDING FOLLOWING THE 50 BASIS POINTS CUT WE GOT BY THE FED. I THINK HE MEANS HE WOULD PUT ALL HIS EGGS IN THAT BASKET? >> I THINK HE MEANS, DON'T COUNT YOUR CHICKENS -- >> BEFORE THEY HATCH. >> SOMETHING LIKE THAT. >> IT'S INTERESTING TO ME BECAUSE LARRY SUMMERS SAID ESSENTIALLY THE SAME THING ON WALL STREET WEEK, WHAT YOU WILL SEE A BRAND-NEW EPISODE OF WALL STREET WEEK AND

A NEW FORMAT TONIGHT AT 6 P.M. LARRY TOLD DAVID YESTERDAY ON THE DAY BEFORE THAT INFLATION COULD BE A REAL PROBLEM AND COULD KEEP THE FED FROM GOING AS DEEP AS IT ONCE IN TERMS OF THE TERMINAL RATE -- WANTS IN TERMS OF THE TERMINAL RATE. THE MORTGAGE RATE YOU ARE GOING TO GET RIGHT NOW COULD BE THE BEST DEAL YOU ARE GOING TO GET OVER THE NEXT FIVE YEARS. >> OH, BOY. >> IF YOU'RE LOOKING TO REF-, -- YOU MIGHT WANT TO CONSIDER NOW RE-FI, YOU MIGHT WANT TO CONSIDER NOW INSTEAD OF WAITING. >>

[INDISCERNIBLE] MAYBE WE SHOULD TAKE NEXT WEEK OFF. BECAUSE THAT'S EXACTLY WHAT WE SHOULD DO FOR TRYING TO GET INTO MANHATTAN FROM PRETTY MUCH ANYWHERE. THE UNITED NATIONS GENERAL ASSEMBLY IS ALSO CLIMATE WEEK. IT'S GOING TO BE A COMPLETETRAFFIC NIGHTMARE . THEY ARE ALREADY CALLING IT A GRIDLOCK ALERT DAYS FOR THE ENTIRE WEEK. IT SOUNDS HORRIBLE. >> IT'S NOT FUN. DON'T THINK ABOUT GETTING IN A CAB. IT'S ABOUT WALKING OR TAKING THE SUBWAY. >> IT IS THE WORST -- UNGA, I PREFER SANTA CON. IT'S LIKE THE WORST THING THAT HAPPENS IN NEW YORK CITY. >> SANTA

CON? >> ARE YOU SAYING THAT UNGA IS BETTER THAN SANTA CON? >> I PREFER SANTA CON TO UNGA. >> AT LEAST UNGA'S TRYING TO HELP THE WORLD. [LAUGHTER] >> EXACTLY. >> I WILL TAKE GRIDLOCK FOR HELPING THE WORLD. >> IT WILL BE ROUGH IN TERMS OF TRAFFIC NEXT WEEK. THAT IS A WRAP ON THIS FRIDAY'S CLOSING BELL. WE WILL SEE YOU GUYS ALL ON MONDAY. >> COMING UP, IT IS BACK TO BLOOMBERG INTELLIGENCE, BREAKING DOWN WHICH FACTORS ARE DOING WELL AND HOW THAT SETS US UP FOR NEXT WEEK. THIS IS THE CLOSE ON BLOOMBERG. >>

WELCOME BACK TO THE CLOSE. >> LET'S TAKE A LOOK AT WHERE MARKETS CLOSE OUT THE DAY. WE CLOSED LOWER BUT THAT'S NOT TO SAY WE DID NOT HAVE A GREAT DAY YESTERDAY. WE HAVE A TINY AMOUNT OF GAINS. IT WAS A 39TH RECORD FOR THE S&P YESTERDAY. WE SHAVED .2%, 11 POINT. THERE WAS FED SPEAK AS WELL AS THE OVERHANG OF EARNINGS LIKE FEDEX AND LENNAR THAT DID NOT PERFORM LIKE PEOPLE EXPECTED. WE HAD THE STOCKS INDEX RESPONSIBLE FOR MOST OF THAT. ALL COMPONENTS WERE LOWERED. NOT A GREAT DAY FOR CHIP STOCKS. THE TWO-YEAR YIELD,

3.591%, NOT MUCH OF A DIFFERENCE DAY-TO-DAY. BUT INTRADAY THERE WAS A LITTLE BIT OF A TURNAROUND. WE SAW CHRIS WILDER WITH COMMENTS TO THE EFFECT THAT HE WAS LESS WORRIED ABOUT INFLATION AND NIKKI BOWMAN OF THE FOMC SAYING BASICALLY SHE WAS NOT QUITE A SANGUINE AS SANGUINE ABOUT INFLATION AND THAT'S WHY SHE DISSENTED. >> IT IS A STARK DIFFERENCE BETWEEN THE BEST-PERFORMING AND WORST PERFORMING STOCKS IN THE S&P. CONSTELLATION BRANDS, A RECORD RALLY AND RECORD HIGH. IT UNVEILED TODAY WITH MICROSOFT IT IS GOING TO INVEST ABOUT $1.6 BILLION TO REVIVE THREE MILE ISLAND, THEY HAD

SHOT ONE OF THE NUCLEAR FACILITIES BACK IN 2019, IT'LL PUT A LOT OF MONEY INTO OPENING IT BACK UP. IT IS ABOUT HOW TO POWER THE HYPER SCALERS AND DATACENTERS. IT IS ALSO THE THIRD PERFORMING STOCK FOR THE S&P FOR THE ENTIRE YEAR. ANOTHER POWER PLAYER IS NVIDIA. THE WORST PERFORMING STOCK IS FEDEX. SOME ISSUES, IDIOSYNCRATIC, AND SOME COULD BE MORE CYCLICAL. THAT'S KIND OF A DOUBLE WHAMMY. MORGAN STANLEY SAYING HE WAS NOT SURE HOW MUCH IT WAS STRUCTURAL OR CYCLICAL BUT EITHER WAY IT IS NOT GOING TO BE A BIG FIX. OUR TOP STORY

THIS HOUR -- THE MARKET ACTION. BANK OF AMERICA WARNING OF A BUBBLE AND MARY BANNISTER AT STATEFUL AGREES -- BARRY BANNISTER AGREES, THIS LOOKS LIKE A 1990'S DOT-COM BUBBLE ALL OVER AGAIN. . HE SAYS THE S&P COULD SLIP TO THE VERY LOW 5000'S BY THE FOURTH QUARTER. THAT WOULD BE A PRETTY BIG JUMP, A 13% DECLINE FROM YESTERDAY. THIS COMES AFTER A SUBDUED TRADING DAY ON WALL STREET AMID HIGH VOLUME AND TURNOVER. >> ABSOLUTELY, ALIX, ANOTHER EXCITING WEEK NEXT WEEK TO COME. TIME FOR FACTOR FRIDAY. JOINING US WITH MORE IS CHRIS KANE OF BLOOMBERG INTELLIGENCE.

HOW'S THE MOMENTUM FACTOR PERFORMED YEAR TO DATE? >> I WOULD NOT CHARACTERIZE IT AS A TALE OF TWO MARKETS WITH MOMENTUM. IT ROCKETED HIGHER OUT OF THE GATE THIS YEAR. FROM JANUARY TO JUNE, IT WAS 14%, HIGH MOMENTUM STOCKS. THAT'S A HUGE TRACTOR MOVE. WHEN YOU LOOK AT ALL ROLLING SIX MONTH RETURNS, THAT WAS IN 90TH PERCENTILE, THE HIGHEST WE'VE EVER SEEN -- 98TH PERCENTILE, THE HIGHEST WE'VE EVER SEEN. SINCE THEN IT'S BEEN HARMED. IN JUNE, IT WAS PRETTY RISKY, A LOT OF HIGH BETA STOCKS, CYCLICAL STOCKS, GROWTH LIKE STOCKS. UNDERNEATH THE MARKET, IT'S BEEN

PRETTY DEFENSIVE. THINGS LIKE LOW BETA HAVE BEAT HIGH BETA OVER THE LAST COUPLE MONTHS. MORE DEFENSIVE, STUFF LIKE THAT. THAT HURT THE MOMENTUM FACTOR. IT IS UP 7% ON THE YEAR. STILL GOOD PERFORMANCE BUT NOT NEARLY AS GOOD AS IT WAS IN JUNE. >> WHERE ARE THE TAKEAWAYS WHEN IT COMES TO MOMENTUM AT THE MOMENT? >> MOMENTUM IS CHANGING, AS IT ALWAYS DOES. I CALL MOMENTUM THE CHAMELEON FACTOR BECAUSE YOU CANNOT NAIL IT DOWN. BUT CURRENTLY WITHOUT BORING YOU WITH NUMBERS, I'D CHARACTERIZE IT AS MORE EXPENSIVE THAN THE INDEX AND MORE PROFITABLE THAN THE INDEX,

HIGH ROE, ROIC, IN THE HIGH MOMENTUM GROUP, YOU SEE POSITIVE LOADINGS ON GROWTH FACTORS, GROWTH LIKE, CYCLICAL FACTORS, NEGATIVE EXPOSURE TO VALUE, MEANING IT IS EXPENSIVE. BUT THAT IS CHANGING. >> HOW IS IT CHANGING? >> WHEN YOU TALK ABOUT THE MOMENTUM FACTOR, I THINK ABOUT IT IS AN INTERMEDIATE-TERM THING -- IS NOT LIKE MOMENTUM MEETS THE LAST TWO WEEKS. MOMENTUM IS LIKE THE LAST 6-12 MONTHS. IT TAKES MONTHS FOR THE PORTFOLIO TO UPDATE AND REFLECT THE LEADERSHIP. SO AS WE'VE SAID OVER THE LAST 2-3 MONTHS, THOSE DEFENSIVES HAVE LED THE MARKET SO THEY WILL GO

TOWARD THE HIGH MOMENTUM OR LONG SIDE OF THE GROUP SO WE PROJECT THAT -- AND THIS COULD CHANGE -- THAT THE HIGHEST OVERWEIGHTS IN MOMENTUM BE THINGS LIKE REAL ESTATE AND UTILITIES, THE VALUATION TO COME DOWN AND THE RISK TO COME DOWN, REFLECTING THE DEFENSIVE NATURE OF THE MARKET. >> THAT'S INTERESTING. WHERE DOES THAT LEAVE TECH, FOR EXAMPLE? >> TECH HAS BEEN FALLING OUT. YOU COULD DO IT SECTOR -- . . A SECTOR NEUTRALIZE OR NOTTECH HAS BEEN DECREASING THE LAST FEW MONTHS AND I CONTINUE -- I EXPECTED TO CONTINUE TO DECREASE. >> NEXT WEEK

WE SEE AN IMMEDIATE IMPACT -- COULD WE SEE AN IMMEDIATE IMPACT? >> TYPICALLY MOMENTUM REBALANCE IS ONCE A MONTH. IT'S NOT A HIGH-FREQUENCY TRADING TYPE THING. WE WOULD WAIT UNTIL NEXT MONTH TO REBALANCE. BUT GIVEN THE TRENDS, IT SEEMS LIKE A PRETTY GOOD BUT THE HIGH MOMENTUM GROUP WILL BE GETTING MORE DEFENSIVE, LOWER FALL AND LESS GROWTH AND CYCLICALLY ORIENTED. >> SO GREAT ALWAYS GET YOU ON FRIDAY TO BREAK IT DOWN FOR US, CHRIS KANE OF BLOOMBERG INTELLIGENCE. APPARENTLY, WE SURVIVED ANOTHER TRIPLE WITCHING, WALL STREET TRADERS WHO SPENT THE WEEK WITH THEIR EYES ON THE

FED ARE TURNING TO -- TURNING THEIR ATTENTION TO VOLATILITY. JESS MENTON JOINS US NOW. WHAT HAPPENED IN THE MARKET? ON THE HEADLINE LEVEL, IT LOOKED A LITTLE BORING. >> WE ARE COMING OFF THE BEST DAY FOR THE S&P 500 THE NASDAQ, YESTERDAY, IN ABOUT A MONTH. WHEN YOU LOOK AT THE TOP LINE, IT DID NOT LOOK LIKE THE S&P 500 DID TOO MUCH BUT IT WAS NOT JUST IMPORTANT FOR TRIPLE WITCHING BUT ALSO THE REBALANCE, THE ETF TRACKING, THE TECHNOLOGY SECTOR IN THE S&P 500. THERE HAVE BEEN ISSUES WITH THE WEIGHTINGS THERE WITH NVIDIA AND

MICROSOFT AND APPLE. WARREN BUFFETT HAD A STAKE IN APPLE AND THAT OPENED UP WHEN IT COMES TO INDEXES COMING IN TO BUY SOME OF THAT FOR THE VOLUME, AS WELL AS THE WEIGHTING OF THAT INDEX. OVER THE PAST -- BEFORE JUNE ACTUALLY, NVIDIA HAD ABOUT SIX STRAIGHT QUARTERS WHERE IT HAD A 4.5% WAITING, UNTIL THAT HAPPENED IN JUNE ACTUALLY, SO NOW THAT ITS WEIGHTING IS BIGGER, IT IS WONKY IN THE CORNER OF ETF BECAUSE THE TOP FIVE COMPANIES CAN HAVE A LARGER THRESHOLD -- CANNOT HAVE A LARGER THRESHOLD THAN 50%. WHEN NVIDIA SKYROCKETED LAST YEAR,

IT HAD A SMALLER WEIGHTING, NOW IT IS LARGER, BUT IT HAD ITS STOCK SPLIT BACK IN JUNE SO IT UNDERPERFORMED APPLE. THAT PARTICULAR CORNER FOR THE ETF HAS NOT PERFORMED QUITE AS WELL AS YOU WOULD'VE THOUGHT IT WOULD'VE. >> GETTING BACK TO THE EXPIRATION OF ALL THE OPTIONS, APPARENTLY THERE WAS A CLUSTER OF NVIDIA, $120, DO WE HAVE TO WAIT UNTIL NEXT WEEK TO SEE WHAT WILL HAPPEN WITH THOSE? IF THEY PUSH THOSE OUT? ? >> THE IMPORTANT THING WITH NVIDIA IS WHAT'S HAPPENING WITH THE CALL OPTIONS BECAUSE COMING INTO THIS PARTICULAR EVENT FOR TRIPLE

WITCHING, LOOKING AT THE RATIO OF CALLS AS FAR AS RELATIVE TO PUTS, IT WAS A FOUR TO ONE RATIO FOR THE S&P 500 BUT THERE WAS A HIGHER ELEVATION FOR THE CALLS FOR NVIDIA. SOME OPTIONS AND DERIVATIVES TRADERS ARE REPORTING OUT AS FAR AS SOMETHING THAT COULD REPORT THE MARKET -- A LOT OF PEOPLE WANT TO TALK ABOUT SEASONALITY IN SEPTEMBER OVER THE LAST TWO WEEKS, THE WORST WEEKS OF THE YEAR. WHAT WE HAVE SEEN THE TREND, BUCKING THE TREND, ROLLING TOWARD THE END OF THE QUARTER THAT'S IMPORTANT BECAUSE THE S&P 500 IS UP MORE

THAN 4% SO FAR. >> ALSO MUTUAL FUNDS REBALANCE. >> THAT'S TRUE. >> THAT'S GOING TO DESTROY THE SEASONALITY POTENTIALLY BASED ON WHAT IS DOING WELL. >> OCTOBER CAN ALSO BE NOTORIOUS FOR BEING WEAK BUT IT'S ACTUALLY MORE VOLATILE. IT IS SEPTEMBER AND AUGUST ARE THE WEAKER MONTHS OF THE YEAR. VOLATILITY COULD PICK UP NEXT MONTH BUT YOU ALSO HAVE EARNINGS SEASON KICKING OFF OCTOBER 10TH. WE STILL HAVE MORE WEEKS BUT NOT A LOT OF EARNINGS NEXT WEEK. YOU JUST HAVE MICRON TECHNOLOGY AND AUTOZONE FOR INSTANCE. >> I LIKE AUTOZONE. . I WAS MENTIONING IT TO

MY TEAM. [LAUGHTER] >> [INDISCERNIBLE] YOU GOT TO SEE WHAT KIND OF CARS PEOPLE ARE BUYING AND A LOT OF CHURN IN THAT MARKET RIGHT NOW. WE'VE GOT FEDEX AND LENNAR YESTERDAY, HOW MUCH DID THAT OVERHANG THE MARKET TODAY? >> THOSE WERE MORE FOR THOSE PARTICULAR CORNERS OF THE MARKET THAT THEY HOLD WEIGHTINGS AND. WHEN IT COMES TO VOLUME, YOU CAN SEE AVAT WITH THE S&P 500, IT'S ACTUALLY ROUGHLY AROUND 140% HIGHER. EVEN THOUGH YOU'RE TALKING ABOUT THE INDEX LEVEL NOT MOVING A WHOLE LOT, YOU STILL SAW A LOT OF MOVEMENT WITH THE VOLUME. >> ALL

RIGHT, JESS, THANK YOU SO MUCH. WE WILL BE BACK TO CHAT WITH YOU NEXT WEEK TO SEE HOW THINGS PROGRESS. THAT IS BLOOMBERG'S JUST MENTIONED -- JESS MENTON. COMING UP, WE ARE SPEAKING TO STEVE LABORATORY FROM NUVEEN -- LIBERATORE FROM NUVEEN AHEAD OF CLAIMANT WEEK. >> THE DESTINATION FOR THE SMART INVESTOR, SEEKING TO THINK WE ARE DEEPLY -- MORE DEEPLY ABOUT THE ECONOMY AND FINANCIAL MARKETS. WE ARE JOINED BY THE HOST, DAVID WESTIN. CONGRATS ON THE RELAUNCH. HOW IS THIS GOING TO BE DIFFERENT FROM YESTERDAY? DAVID: SIMPLY STATED, IT IS STORIES RATHER THAN INTERVIEWS. AS

YOU SAW THE TAPE -- IN THE TAPE, IT IS A STORY, BUT WHO ARE THE PEOPLE THAT CAN BRING THAT STORY THE BEST, WITH THE RIGHT NARRATION AND VIDEO? THAT'S WHAT IT IS. IT IS A TRUE NEWSMAGAZINE FOR BUSINESS AND ECONOMY. >> YOU ARE TAKING ON HUGE TOPICS. WHAT ARE SOME OF THE TOPICS THAT WE SHOULD BE THINKING ABOUT RIGHT NOW? DAVID: THIS WEEK WE TAKE ON THE BUSINESS OF RESTAURANTS TO EXPLAIN WHAT IS BEHIND THIS. >> I USED TO WORK IN A RESTAURANT, BY THE WAY. >> WE ALSO DEAL WITH THE BUSINESS OF HIGHER

EDUCATION, IT IS A CHALLENGE RIGHT NOW. A BIG STORY IS THE AUTO INDUSTRY, FOR ME COMING FROM MICHIGAN, BUT THE STORY OF DETROIT AND ITS DECLINE AND REVIVAL AND THE AUTO INDUSTRY, BASICALLY OF EV'S AND WHAT THE TRANSITION IS, WE TALKED TO JIM FARLEY, THE CEO OF FORD. EXACTLY WHAT HE KNOWS, WHAT HE'S LEARNED ABOUT IT. HIS GRANDFATHER WORKED AT THE RIVER ROUGE PLANT IN FORD IN DOWNTOWN DETROIT. HE WENT TO WORK FOR TOYOTA WHICH WAS TREASON AT THE TIME. HERE'S SOME OF WHAT HE HAD TO TELL US. >> WORKED FOR TOYOTA FOR A COUPLE

OF DECADES. I'VE NEVER SEEN A COMPETITION LIKE THIS. THEY HAVE FULL SPONSORSHIP OF THEIR GOVERNMENT. THE Y ARE THE LARGEST MARKET IN THE WORLD AND NOW THEY ARE THE MOST IMPORTANT MARKET IN THE WORLD. DAVID: THE COMPETITION HE'S TALKING ABOUT IS NOT JAPAN OR TOYOTA, IT IS CHINA. HE IS SAYING THAT IS THE NEXT LOOMING CHALLENGE FOR THE AUTO INDUSTRY, CHINA. BECAUSE THEY ARE SUBSIDIZED BY THE GOVERNMENT. HE'S THE FIRST TO ADMIT THEY ARE MAKING A GOOD PRODUCT IN EV'S AND FOR A VERY LOW PRICE. SOMEHOW THEY'VE GOT TO CATCH UP WITH THEM. >> HOW

DO YOU COME UP WITH THE STORIES? WHAT'S THE PROCESS LIKE FOR YOU? DAVID: WE TURN TO EVERYBODY -- I'M SOLICITING ALL IDEAS FOR STORIES. BUT WE TALK ABOUT THINGS THAT WE THINK ARE RELEVANT TO INVESTORS, IT IS A BLOOMBERG STORY. >> THE BIG THEMES. DAVID: THINGS THAT ARE LARGER AND THAT WILL LAST A LITTLE LONGER, NOT JUST THE DAY OR THE WEEK OF AIR, BUT IN MONTHS' TIME, WILL STILL BE RELEVANT. >> WHAT ELSE CAN WE LOOK FORWARD TO FROM THE FIRST EPISODE, MORE THAN 90 MINUTES FROM NOW? DAVID: RESTAURANTS, HIGHER EDUCATION AND FORD AND

THE STORY OF THE AUTO INDUSTRY. THEN NEXT WEEK, WE GO TO PITTSBURGH AND TELL THE STORY OF REGIONAL BANKS THROUGH THE EYES OF PNC, ONE OF THE LARGEST REGIONAL BANKS YET. PNC WAS THERE BEFORE THE COMPANY EXISTED AND NOW IT'S AN OVER $1 BILLION BUSINESS. WE ALSO TALK ABOUT SOCIAL MOBILITY. THE LAND OF OPPORTUNITY, IT'S GOING DOWN IN THE U.S. THE ABILITY OF THE PEOPLE IN LOWER INCOMES TO MOVE UP. WHY THAT HAPPENS AND WHAT CAN BE DONE. A FASCINATING STORY ABOUT ARIZONA STATE UNIVERSITY. A A LOT OF ONLINE ALLOWING PEOPLE FROM LOWER SOCIOECONOMIC CLASSES

TO MOVE UP. >> I DID NOT KNOW ABOUT THAT ONE. THAT'S AWESOME. DAVID AND I TALK ALL THE TIME. SURPRISE I DID NOT KNOW THAT. THANK YOU FOR JOINING US. BE SURE TO CATCH THE RELAUNCH OF "WALL STREET WEEK" TONIGHT AT 6 P.M. IN NEW YORK. DO NOT MISS IT. COMING UP, WE TALKED TO TRACY CAMPBELL ABOUT THE TRENDS SHE IS SEEING AND GLOBAL PETROCHEMICALS MARKET. ALIX: SUNDAY CLICKS OFF CLIMATE WEEK IN NEW YORK CITY ALONGSIDE THE U.N. GENERAL ASSEMBLY. THE GOAL IS TO BRING TOGETHER THOUGHT LEADERS, OFFICIALS, INVESTORS, AND BUSINESSES TO TACKLE ONE THE

BIGGEST ISSUES OF OUR TIME. ONE OF THOSE COMPANIES IS A $30 BILLION CHEMICAL COMPANY THAT USES THE FOOD IN THE WORLD, CAR BUMPERS, MATERIALS FOR YOUR SURFBOARDS, SNOWBOARD, AND THEY ARE FOCUSING ON PRODUCTS FOR A LOW CARBON ECONOMY. I WANT TO BRING IN TRACY CAMPBELL, THE EXECUTIVE VICE PRESIDENT OF SUSTAINABILITY AND CORPORATE AFFAIRS. THANK YOU FOR JOINING US. BROAD GROWTH, ETC., CHINA CONTINUES TO BE WEAK. EUROPE HANGING ON BY A THREAD. THE U.S. SEEMS TO BE DOING ALL RIGHT. LOOKING AT THE GLOBAL ECONOMY, WHERE IS THE WEAKNESS AND STRENGTH? >> THE STRENGTH IS IN AMERICA.

WE GOT A BOOST THIS WEEK FROM THE FED. I AGREE WITH EVERYTHING YOU SAID. EUROPE IS SLOW TO RECOVER, CHINA'S GROWTH IS NOT QUITE THERE. WE DON'T SUBSCRIBE TO THIS BECAUSE AS YOU ALSO SAID, THE PRODUCTS WE MAKE ARE VERY FUNDAMENTAL FOR SOCIETY, EVERYTHING WE ARE CONSUMING EVERY DAY. WE SHALL SEE A LOT OF GROWTH POTENTIAL FOR THE CORE COMMODITY PRODUCTS AND MORE SUSTAINABLE SOLUTIONS FOR THE FUTURE. VONNIE: THE FEDERAL RESERVE TRUMPS THE INTEREST RATE BY 15 BASIS POINTS, WHAT DOES IT DO FOR THE BUSINESS, SUPPLIERS? DOES IT ALLOW THEM TO BORROW MORE IN ORDER

TO BUY MORE? >> WHEN I THINK ABOUT THE FEDERAL RESERVE RATE OR QUARTER TO QUARTER RATES, WE HAD A LONG-TERM GROWTH STRATEGY, LONG-TERM INVESTMENT STRATEGY. THE ASSETS WE ARE PLAYING AND HAVE A 20 TO 40 YEAR LIFESPAN. I'M EXCITED ABOUT THE BOOST IT GIVES THE ECONOMY IN THE U.S., THAT MY KIDS CAN MAYBE AFFORD A MORTGAGE. BUT IT DOESN'T REALLY DRIVE OUR DECISIONS IN A COMPANY OF OUR SIZE. ALIX: WHAT DOES DRIVE DATA DECISIONS ARE THEMATIC STRUCTURAL SHIPS, THAT IS WHY YOU ARE IN THE CITY, CLIMATE WEEK AND SUSTAINABILITY. YOU ARE PRODUCING GREENER STUFF, LOW

CARBON STUFF. WHAT ARE SOME OF THE AVENUES YOU DO TO GET THERE? TRACEY: DIFFERENT MEANS WE NEED TO DO IN ORDER OF INVESTMENT. WE ARE FOCUSED ON CIRCULARITY, UCS A LOT IN THAT SPACE. ALIX: YOU USE WHAT YOU PRODUCE -- TRACEY: PLASTIC WASTE COMING BACK, PLASTIC WASTE OIL GRADUALLY DISPLACING FOSSIL FUELS OVER TIME. CARBON CAPTURE, RENEWABLE ENERGY. THESE ARE ALL ACTIONS WE ARE TAKING TODAY. AND WE ARE MAKING SURE THEY ARE ACCRUED OF TO EARNINGS. THE VALUE IS HAVING AN ECOSYSTEM THAT WE HAVE EQUAL INVESTMENTS TO DELIVER CARBON SOLUTIONS OR CIRCULAR SOLUTIONS THAT ALSO CREATE

COMPANY VALUE LONG-TERM. ALIX: THIS IS WHERE I THINK YOU STAND OUT IN SUSTAINABILITY SPACE. YOU TALK ABOUT AS A BUSINESS, NOT SOMETHING FLUFFY. YOU CAN GET TAX CREDITS OR OTHER STUFF FROM THE GOVERNMENT TO BUILD THINGS, RETROFIT A REFINERY, FOR EXAMPLE. WHAT IS IT LIKE ON THE END DEMAND-SIDE? DO THEY COST MORE, OUR CUSTOMERS WILLING TO PAY MORE FOR RENEWABLE PLASTIC OR SOMETHING LIKE THAT? TRACEY: THERE IS A BIG SUPPLY GET. IF YOU THINK ABOUT BRAND OWNERS AND CONSUMERS LOOKING FOR RECYCLED MATERIALS AND MATERIALS WITH A LOW CARBON FOOTPRINT, THERE'S A MARKET AN ECOSYSTEM BEING

CREATED FOR THAT. WE ARE DESIGNING AND BUILDING THE INFRASTRUCTURE IN ORDER TO MAKE THAT HAPPEN. WE SEE THIS NEW MARKETPLACE, DIFFERENTIAL FROM THE COMMODITY OR THE CORE MARKETPLACE WE ARE HAVING. THE PRICES ARE GOING TO BE DIFFERENT THAN THE COMMODITY PRICES. THE STANDARDS OF SUPPLY AND DEMAND WILL IMPACT THAT. IT IS REALLY PLAYING OUT. AND WE ARE NEW, TO ACCELERATE THAT. WE SEE GOVERNMENTS WILLING TO ACCELERATE A LOT OF INVESTMENTS THROUGH SUBSIDIES AND INNOVATION FUNDS, ETC. ALIX: PREPARING FOR COP 29, AND CLIMATE WEEK AT THE U.N., WHAT IS HAPPENING WITH THE PLASTICS AGREEMENT AND HOW

CAN YOU AS A COMPANY THAT WANTS TO MAKE MONEY CONTRIBUTE TO THAT? TRACEY: THE MOST EXCITING THING I THING ABOUT THE PLASTICS AGREEMENT, EVERY PARTICIPANT, EVERY DELEGATE ONCE AN AGREEMENT. IT DOESN'T MATTER WHETHER YOU ARE AN NGO, PLASTICS PRODUCER, OR ALL OF THE COUNTRY DELEGATES. WE WANT TO SEE AN AGREEMENT TO ADDRESS PLASTIC WASTE. I'M OPTIMISTIC ALL PARTIES WILL BE ABLE TO COME TOGETHER AND COME UP WITH A FEW POLICY WAIVERS TO ACTUALLY ADDRESS THE PROBLEM. IT MAY NOT BE PERFECT, IT MAY NOT BE AS COPPERHEADS OF AS WHAT ALL OF THE COUNTRIES WANTED TO

SEE. BUT EVERYBODY'S FOCUSED ON THE LABORS. I'M NOT SURE IF YOU ARE AWARE, BUT JUST YESTERDAY, THERE WAS A HOUSE BILL INTRODUCED IN THE U.S., A COMPREHENSIVE PLASTICS RECYCLING BILL THAT WOULD PUT NATIONAL RECYCLING CONTENT MANDATES IN PLACE, WHICH REALLY ACCELERATES THIS KIND OF TRANSITION WE ARE SEEING. VONNIE: HOW IS THE GLOBAL SOUTH DEALING WITH THIS? ? AREAS OF CLIMATE CHANGE, IT IS DIFFICULT TO COME TO AN AGREEMENT WHEN THE GLOBAL NORTH HAS HAD PLENTY OF TIME TO DO WHATEVER IT WANTS. TRACEY: WE TALKED FREQUENT THE ABOUT THAT JUST TRANSITION. PICKING UP THE WASTE PICKERS

AND HOW WE PRODUCE THEIR HEALTH AND SAFETY AND HOW WE TRANSITION THEM FROM WASTE PICKER TO HAVING MORE SUSTAINABLE SELF FUNDING MECHANISMS. WE ARE ONE OF THE FOUNDING MEMBERS OF THE ALLIANCE TO END PLASTIC WASTE. I SIT ON THE BOARD TODAY. WE HAVE A LOT OF GOOD PROJECTS TO MOVE THEM UP THE VALUE CHAIN SO THEY HAVE THESE BUSINESS MODELS THAT ARE SELF-SUSTAINING IN COUNTRIES LIKE INDONESIA AND OTHER PARTS OF THE WORLD. ALIX: WHICH BRINGS ME BACK TO THE END-USE CUSTOMER AND AGREEMENT. WHEN BIG THINGS ARE BUILT, YOU WANT OFF TICK AGREEMENTS, WHERE A CUSTOMER

SAYS I'M GOING TO PAY YOU X AMOUNT, YOU WILL GIVE ME THIS FOR THIS LONG. >> THAT IS IDEAL. ALIX: IS IT HAPPENING FOR THE GREEN PRODUCTS? IF IT IS, HOW HARD IS IT TO GET TO THE PRICE? TRACEY: I THINK IT IS DIFFICULT FOR THE GREEN PRODUCTS. THE CONVERSATIONS ARE ABSOLUTELY HAPPENING. WE ARE TRYING TO MOVE QUICKLY, MOVED TOGETHER THROUGH THE VALUE CHAIN. I THINK IN TERMS OF OUR INVESTMENTS, THE TECHNOLOGIES THEY ARE, THEY KNOW WHAT THE IMPACT IS ON THEIR END PRODUCT WHETHER IT IS A PACKAGE OR SOMETHING LIKE THAT. IT IS NOT

MORE DIFFICULT IN THE FUTURE ON THE COST OF THE PRODUCT AND IN THE PAST. WE KNOW WHAT IT IS, WE KNOW THE INVESTMENTS NECESSARY SO WE CAN CALCULATE WHAT THE PRICES NEED TO BE TO MEET THE THRESHOLDS. ALIX: HOW LONG ARE THOSE CONVERSATIONS VERSUS TRADITIONAL PRODUCTS? TRACEY: NORMAL, COULD BE SIX MONTHS TO A YEAR. WHEN A THING ABOUT DESIGNING A PRODUCT, I USED TO BE A PLASTICS DESIGN ENGINEER YEARS AGO. WE DID NOT THINK ABOUT RECYCLING. NOW WE DO. IT IS JUST ONE ADDITIONAL REQUIREMENT FOR THE FUTURE. SO THOSE CONVERSATIONS ABOUT SUPPLY AND PRICE AND

THE MARKET ARE GOING TO HAPPEN IN THOSE CONVERSATIONS WITH BRAND OWNERS. ALIX: THANK YOU FOR COMING BY, TRACEY CAMPBELL, EXECUTIVE VICE PRESIDENT OF SUSTAINABILITY AND CORPORATE AFFAIRS AT LYONDELB ASELL. VONNIE: LET'S LOOK AT HOW MARKETS CLOSED. WE HAD THE S&P 500 SHAVE A COUPLE OF PERCENTAGE UNITS OFF, .20%. THE NASDAQ 100 WAS DOWN ABOUT .25%. NOT A LOT OF MOVEMENT AS YOU MIGHT THINK. BUT THERE WAS A HUGE AMOUNT OF VOLUME AND TURNOVER OPTIONS EXPIRING. REBALANCING OF THE INDICES. YOU COULD NOT GET MORE HAPPENING ON A DAY LIKE TODAY. A LOT OF VOLATILITY THIS WEEK.

LET'S TAKE A LOOK AT YIELDS. A LOT MORE MOVEMENT TOWARD THE BACKEND. THERE WAS MOVEMENT AT THE FRONT END OF THE CURVE AFTER WE HAD WALLER AND COMMENTS FROM MICKEY BOWMAN, THE DISSENTING GOVERNOR WHO IS MORE WORRIED ABOUT INFLATION AND THE REST OF THE COMMITTEE. BACK TO WHERE WE STARTED THE DAY AT 3:59 ON THE TWO YEAR PER DIE WANT TO POINT TO THE DOLLAR INDEX. NO MOVEMENT FROM THE BANK OF JAPAN. BUT AFTER THE 50 BASIS POINT MOVE, WE SAW A SLIGHT STRENGTHENING FOR THE DOLLAR INDEX WITH SEVERAL WEEKS. THIS IS THE CLOSE ON

BLOOMBERG. VONNIE: STAYING WITH CLIMATE NOW. A KEY PART OF GETTING TO NET ZERO IS HOW TO FINANCE IT. ONE WAY IS THROUGH ESG AND IMPACT BONDS. THESE CAN BE TIED TO SPECIFIC PROJECTS, FINANCE CERTAIN GREEN INITIATIVES, FOCUS ON GENDER EQUITY, AND EVEN PUBLIC-PRIVATE PARTNERSHIPS. JOINING US TO DISCUSS IT ALL IS STEVE LIBERATORE, PORTFOLIO MANAGER AND HEAD OF ESG IMPACT. MANAGED APPROXIMATELY $25 BILLION AT FIXED INCOME IN ESG AND IMPACT STRATEGIES. I WANT TO -- IT DOES FEEL LIKE THE WHOLE UNIVERSE IS WEDGED INTO THAT ESG AREA NOW. ARE THERE ANY BONDS THAT AREN'T ESG RELATED

AT THIS POINT? >> IT DEPENDS ON HOW YOU WANT TO LOOK AT IT. THE CONCEPT OF USING AN ENVIRONMENTAL SOCIAL AND GOVERNANCE CHARACTERISTICS IS CREDIT ANALYSIS, IF YOU REALLY THINK ABOUT IT. IT IS A MATTER HOW YOU APPLY IT AND UTILIZE IT TO CONSTRUCT A PORTFOLIO AND MAKING SURE YOU'RE APPLYING FINANCIAL RELEVANCY TO THAT ANALYSIS. YOU WANT TO MAKE SURE YOU ARE FINDING SECURITIES THAT HAVE GOOD GOVERNANCE. ESPECIALLY AS A BONDHOLDER. IT IS AN ASYMMETRIC PAYOFF ASSET CLASS. YOU WANT TO MAKE SURE YOU ARE LOOKING FOR SECURITIES OR ISSUERS WILL HAVE MORE STABLE FREE CASH

FLOW OVER TIME IN ORDER TO ENSURE THE LIKELIHOOD OF THE REPAID. ALIX: AS AN INVESTOR, DO I WANT THE BONDS BECAUSE THEY WILL APPRECIATE OR BECAUSE OF THE STEADY INCOME? >> I THINK YOU WANT TO MAKE SURE YOU ARE GETTING THE STEADY INCOME. THAT IS PART OF THE THING ABOUT FIXED INCOME, THE PURPOSE ABOUT IT IN A PORTFOLIO IS RETURN OF CAPITAL. NOT NECESSARILY RETURN ON CAPITAL. YOU WANT TO MAKE SURE YOU'RE IDENTIFYING SECURITIES THAT HAVE A PROFILE THAT GOING FORWARD, THEIR BUSINESS IS MORE STABLE, THEIR ABILITY TO GENERATE STABILITY AND FREE CASH FLOW IS

CRITICAL, AND BEING ABLE TO LOOK AT THESE SECURITIES IS AN INDICATION THAT COMPANIES ARE THINKING FORWARD AND TRYING TO IMPROVE THEIR BUSINESS OPERATIONS IN THE FUTURE, NOT JUST RIGHT NOW. VONNIE: HOW WILL THE 50 BASIS POINT CUT HAVE IMPACTED THIS AREA? >> THE MOST IMPORTANT THING IS IMPACT BONDS ARE STILL BONDS. RELEVANT TO WHAT IS OCCURRING IN THE MARKET. AND FROM CONVERSATIONS WE'VE HAD WITH ISSUERS, LOOKING BACK TO THE ZERO INTEREST RATE POLICY. CORPORATE ISSUERS HAVE DONE A GREAT JOB EXTENDING OUT THE MATURITY PROFILE, REDUCING THEIR DEBT COST. YOU HAVE TO LOOK AT CAPEX NEEDS.

IF YOU ARE AN ISSUER LOOKING AT AM I LOOKING TO EXPAND MY OPERATIONS AT THE MOMENT OR TRYING TO DO SOMETHING THAT WOULD INDICATE AN OPERATIONAL IMPROVEMENT, WOULD I ISSUE NOW IF I KNOW THE PATH FOR CUTS IS COMING OR PATH FOR RATES LOWER GOING FORWARD? I THINK THE CHALLENGE YOU FACE NOW IS ARE RATES GOING TO GO LOWER? WE HAVE NOT SEEN THAT IN THE LAST COUPLE OF DAYS BASED ON THE REACTION FROM TUESDAY OVER CONCERNS ON POTENTIALLY INCREASING INFLATION GOING FORWARD. ALIX: HOW IS THE ELECTION IMPACTING ISSUANCE? IN SOME WAYS, ENVIRONMENTAL GREEN STOP

IS BINARY IN THIS ELECTION. HOW IS IT IMPACTING HOW THEY ARE THINKING ABOUT STRATEGICALLY ISSUING? >> ONE OF THE THINGS WE HAVE GOTTEN SPECIFICALLY FROM ISSUERS IS THEY ARE LOOKING TO REALLY UNDERSTAND WHAT THE RAMIFICATIONS OF THE IRA ARE FOR THEM RIGHT HOW CAN THEY TAKE ADVANTAGE OF PROVISIONS HELPING THEM GOING FORWARD? I THINK THE CONCEPT OF PEOPLE WANTING TO ISSUE MORE GREEN TYPES OF SECURITIES IS ONLY GOING TO CONTINUE. THAT IS BECAUSE WE ARE TRANSITIONING, NOT BECAUSE OF THE ENVIRONMENTAL BENEFIT, BUT BECAUSE IT IS CHEAPER. AND WHEN YOU LOOK AT THINGS LIKE SOLAR, WIND,

THOSE ARE TECHNOLOGIES. THE MORE YOU INVEST, THE CHEAPER THEY BECOME. THE ADVENT IN RAPID EXPANSION OF BATTERY STORAGE IS ALSO HELPING ALLEVIATE SOME OF THE CONCERNS AROUND INTERMITTENCY. ALIX: WHAT BONDS ARE MOST POPULAR IN TERMS OF WHERE THEY ARE BACKED? >> RIGHT NOW THE MOST POPULAR SPACE WOULD BE THE TRUE LABELED GREEN BOND, OR YOU ARE INVESTING IN SPECIFIC PROJECTS TIED TO ENVIRONMENT TO PROGRAMS. NOT NECESSARILY JUST SOLAR OR WIND, IT CAN BE PUMPED HYDRO, GEOTHERMAL. YOU CAN SEE IT ACROSS SECTORS AS WELL. DISTRIBUTED GENERATION IN THE SFX SECURITY MARKET, CLEAN WATER PROGRAMS, AND PROJECTS

YOU SEE FROM THE MUNICIPAL SPACE ARE ALSO VERY INTERESTING. VONNIE: OUR PEOPLE LOOKING TO PUT ESG MONEY THAT IS TARGETED SPECIFIC FOR ESG TO WORK, OR LOOKING AT THESE PRODUCTS BECAUSE THEY OFFER A GREAT RETURN BECAUSE THEY ARE INTRINSICALLY VALUABLE? >> FOR US, IT IS ABOUT RETURN. ALIX: I WAS LIKE HE WANTS IT TO BE THE SECOND ONE. >> IT IS ABOUT RETURNS FIRST. WE ARE NOT MAKING GRANT MONEY, WE ARE NOT A CONCESSIONARY CAPITAL PROVIDER. IF YOU ARE THINKING ABOUT DOING A PORTFOLIO OR LOOKING AT A PORTFOLIO INVESTMENT IN THIS SPACE, IT HAS TO

BE ABOUT RETURN. ALL OF THIS WORKS VERY WELL TOGETHER IF YOU THINK ABOUT IT. YOU LOOK AT THE ENVIRONMENT IMPACT SOCIETY THAT IMPACTS THE ECONOMY. YOU WANT TO HAVE THAT VIRTUOUS CYCLE IN PLACE. ALIX: STEVE, GOOD TO SEE YOU. STEVE LIBERATORE JOINING US. SOME BREAKING NEWS CONCERNING BOEING. TED KOHLBERG, WHO OVERSEES ITS DEFENSE AND SPACE DIVISION IS LEAVING THE COMPANY. IT IS THE FIRST MAJOR PERSONNEL MOVEMENT SINCE KELLY AURBURN TOOK OVER AS CEO LAST MONTH. AS CFO, BRIAN WEST SAID THE DEFENSE BUSINESS WOULD DRAG ON COMPANY EARNINGS IN THE THIRD QUARTER, POSTING LOSSES IN LINE

WITH A NEARLY $1 BILLION OPERATING LOSS POSTED A QUARTER EARLIER. VONNIE: PRICED IN A SERIES OF MOVES MOST LIKELY. THE NEW CEOS MOST CHANGE. THE ONE WHO OVERSAW THE DEFENSE IS LEAVING THE COMPANY. YOU CAN ONLY IMAGINE THERE WILL BE MORE MOVES LIKE THIS COMING FRIDAY AFTER THE CLOSING BELL. ALIX: THAT IS INTERESTING AS WELL, A LOT OF COST RUNS ON FIXED PRICE CONTRACTS AND NEGATIVE HEADLINES, IT HAS BEEN A HOT MESS. YOU'RE ARE DEFINITELY SEEING THAT INDIVIDUAL LEAVE THE COMPANY. TIME FOR TOP THREE. WHERE WE NAME DROP THE PEOPLE DRIVING SOME OF THE DAYS

MOST TALKED ABOUT STORIES. DONALD TRUMP ALWAYS DRIVING THE STORIES. HE'S NOW ALLOWED TO SELL HIS $1.5 BILLION STAKE IN TRUMP MEDIA. THE PROVISIONS PREVENTING HIM FROM SELLING THE STOCK EXPIRED THURSDAY. BUT HE PROMISED HE WOULD NOT SELL. HASN'T THE STOCK BEEN HAMMERED? VONNIE: IT HAS BEEN HAMMERED. HE KEEPS SOME PROMISES. HE MAY NOT ALWAYS KEEP THEM ALL PER SO YOU CANNOT QUITE TELL WHAT HE'S GETTING OUT OF THE STOCK OR WHETHER HE'S GOT INTENTIONS TO DO THAT RIGHT NOW. BUT YOU CAN BET YOUR BOTTOM DOLLAR HE'S NOTICED THIS. HE WILL HAVE TO SIGNAL IT SOMEHOW

OR REGISTER IT SOME WAY. ALIX: WE WILL BE WATCHING. VONNIE: MY STORY IS THIS HOUSE THAT IS ALWAYS A HOUSE ON AN ISLAND. THEY KEEP POPPING UP. ALSO AROUND THE $30 MILLION MARK OR A FORMER MORGAN STANLEY CEO LISTING HIS HOME FOR 25 -- $29.5 MILLION. I'M NOT SURE WHY HE WOULD WANT TO LIST THIS PARTICULAR HOME. ALIX: DOWNSIZE -- VONNIE: HAVE YOU SEEN THIS ISLAND? ALIX: YOU CAN SCROLL THROUGH THE PICTURES THROUGH THE END OF THE SHOW. THAT IS AMAZING. I'M WATCHING SPORTS GUYS, BECAUSE IT IS COOL. L.A. DODGERS, SPECIFICALLY TO SEE SHOHEI OHTANI

WHO MAY HAVE JUST HAD THE BEST BASEBALL GAME IN MLB HISTORY. ON THURSDAY, HE HIT THREE HOMERS, TWO DOUBLES, TWO STEALS, 10 RBIS, A WIN AGAINST THE MIAMI MARLINS. HE'S ALSO STOLEN 51 BASIS AND HAS 51 HOME RUNS. THAT IS A NEW RECORD. NOW HE'S 51-51, THAT IS HUGE. VONNIE: LEBRON TWEETED OUT THIS GUY WAS HUGE. THAT IS INSANE. IF HE'S IMPRESSED, HE'S GOT TO BE AN ABSOLUTE PROGENY. >> WHAT INVESTORS NEED TO WATCH FOR, STILL SOME DATA GOING ON. THIS IS BLOOMBERG. ♪ VONNIE: THE FED DECISION IS BEHIND US. A SLEW OF ECONOMIC DATA

IN FRONT OF US. INCLUDING THE FED'S PREFERRED MEASURE OF INFLATION DUE NEXT FRIDAY. STUART PAUL JOINS US NOW. I WAS READING IN. YOU HAD A FUNNY LINE ABOUT PCE BEING CORE PCE PASSE, IS IT GIVEN HOW WE HAVE ERECTED TO THE 50 BASIS POINTS? >> I DON'T THINK IT IS. NOT FOR THE FED, SO NOT FOR ME EITHER. I THINK THE CORE PCE READING WE WILL GET WILL BE RELATIVELY FAVORABLE NEWS FOR THE FED. THE MONTHLY READING LIKELY TO REGISTER A TOUCH BELOW 0.2% ON A MONTH ON MONTH BASIS. THAT WILL BE WITH THE FEDS

2% INFLATION TARGET IF WE LOOK AT MONTHLY NUMBERS. UNFAVORABLE BASE AFFECTS WILL BE SUPPORTING THE ANNUAL NUMBER. WE ARE READING THROUGH THE ANNUAL UPTICK. WE ARE THINKING THE DRAG FROM CORE GOODS AND THE MONTHLY NUMBER CONSISTENT WITH OUR 2% TARGET WILL BE GOOD NEWS FOR THE FED. ALIX: WHAT ELSE ARE YOU WATCHING FOR NEXT WEEK? PMI, I LOVE THEM. WE KNOW MANUFACTURING HAS BEEN STRUGGLING AND SERVICES HAVE BEEN HOLDING UP. YOU THINK THAT STORY WILL EVOLVE AT ALL? >> THERE IS ROOM TO EVOLVE. THE PRODUCTION NUMBERS WERE EXCEPTIONAL FOR AUGUST. WHEN WE START THINKING ABOUT

WHAT IS GOING ON IN SEPTEMBER, THE PRELIMINARY READINGS WILL BE HELPFUL. BUT I DON'T THINK INDUSTRIAL PRODUCTION OVERALL WILL BE DRIVING THEMATIC MACRO OVER THE NEXT YEAR REALLY. INDUSTRIAL PRODUCTION HAS BEEN IMPROVING SOMEWHAT, ESPECIALLY ON THE BACK OF OTTO'S PRODUCTION, IT WAS IN AUGUST. A LOT OF IT IS DUE TO A LARGE DEFICIT OF OTTO'S DURING THE COVID PANDEMIC AND SOME CATCH UP PRODUCTION. VONNIE: WHAT ARE YOU THINKING OF BLOOMBERG ECONOMICS NOW? HOW MANY STORIES DO WE GO BY THE END OF THIS YEAR? >> ANOTHER 50 BASIS POINTS, 25 IN NOVEMBER, 25 AND DECEMBER. WE

ARE EXPECTING A QUARTERLY CADENCE. THE CADENCE IN 20 TONY FIVE. ANOTHER 100 BASIS POINTS OF CUTS . IF WE SEE A GAP UP IN THE EMPLOYMENT RATE, SOMETHING APPROACHING 5% EARLY NEXT YEAR, THAT WOULD WARRANT A FASTER PACE OF RATE CUTS. ALIX: THANK YOU FOR STAYING LATE WITH US ON A FRIDAY. STUART PAUL OF BLOOMBERG ECONOMICS. LET'S GET WHAT WE ARE WATCHING NEXT WEEK. S&P GLOBAL PMI. INTERESTING TO SEE WHEN THE TROUGH REALLY HITS PER NOT ONLY THE TROUGH FOR MANUFACTURING, BUT WHEN WE WIND UP YOU COLORING. VONNIE: CONSUMER CONFIDENCE DATA HAS BEEN EXTRAORDINARILY INTERESTING.

CONFIDENCE HOLDING UP AND INFLATION EXPECTATIONS BAKED IN AS WELL. THE YUAN GENERAL ASSEMBLY OPENING TRADE I HOPE YOU'RE NOT DRIVING ANYWHERE NEXT WEEK. ALIX: I SHOULD PROBABLY TAKE A TRAIN IN NEXT WEEK. IT WILL BE QUITE INTERESTING, ANYTHING THEY SAY ABOUT THE FED RATE CUTS AND IF IT WILL HAVE AN IMPACT ON THEIR BUSINESS. WEDNESDAY, META CONNECT DEVELOPER CONFERENCE. VONNIE: THAT IS A SEXY TITLE. SOUTHWEST INVESTOR DAY THURSDAY. AND THEN WE GET MORE DATA, INCLUDING JOBLESS GRANT -- JOBLESS CLAIMS IN GDP DATA. AND CARMEX, SHOULD YOU BE EXCITED ABOUT CARMAX? ALIX: I AM. ALSO WE

HAVE COSTCO. TYPICALLY THEY HAVE DONE WELL. A LOT OF ANALYSTS THAT ARE LITTLE BIT MORE CONSERVATIVE ON THE RETAIL SIDE STILL LIKE COSTCO ALONG THE WALMART AND TARGETS OF THE DAY. FRIDAY WE GET PERSONAL INCOME AND SPENDING AS WELL AS THE CORE PCE. THIS IS THE FINAL RATE FOR SEPTEMBER FOR UNIVERSITY OF MICHIGAN. IT TENDS NOT TO BE THAT EXCITING. I LOVE HOW THEY REVISE THE EXPECTATIONS AND AS SENTIMENT COMES ACROSS WHEN IT BREAKS DOWN ON POLITICAL LINES. VONNIE: WE WILL HAVE TO SEE HOW THE MARKET DIGESTS THIS WEEK. FASCINATING MOVES THIS WEEK. NOT LEAST

OF ALL TODAY WHERE THIS IS NOT END UP DIFFERENT FROM WHERE WE STARTED. THE S&P 500 ENDING THE SESSION DOWN .2%. THE NASDAQ DOWN ALMOST .4%. THE NASDAQ 100 DOWN ABOUT A QUARTER OF 1%. ALIX: TAKING A LOOK AT THAT, VOLUME. THE VOLUME REALLY PICKED UP INTO THE CLOSE. THE VOLUME CLOSED UP FOR THE S&P 500 126 ABOVE ITS AVERAGE. AT THE CASH CLOSE, YOU HAD THAT TURN FROM THE OPTIONS EXPIRATION. VONNIE: WE DON'T HAVE NEXT WEEK. WE DON'T HAVE A FED MEETING. THAT IS PAST US. HOW MANY WEEKS HAVE BEEN WAITING FOR THAT DECISION?

>> DO WE HAVE A TON OF FED SPEAKERS -- VONNIE: THEY ALREADY DID TODAY WITH WALLER AND BOWMAN. ALIX: THAT WRAPS UP ON THIS FRIDAY. HAPPY WEEKEND.