Closing Bell - Closing Bell Overtime: 8/12/25

Episode Date: August 12, 2025

From the open to the close, “Closing Bell” and “Closing Bell: Overtime” have you covered. From what’s driving market moves to how investors are reacting, Scott Wapner, Jon Fortt, Morgan Brennan and Michael Santoli guide listeners through each trading session and bring to you some of the biggest names in business.

That bell marks the end of regulation global and inspire leadership network, ringing the closing bell at the New York Stock Exchange, JPMorgan Asset Management, doing the honors at the NASDAQ, and stocks ending the day with some nice gains. The NASDAQ and S&P hitting all-time highs, small caps. The Russell, the big winner, up about 3%. Best Day since May. Just barely shy of 3% as a matter of fact. 10 out of 11 S&P sectors higher, communication services, and financial.

is leading. Staples, the only sector lower. Another bullish day for Bitcoin and Ether, ether adding to yesterday's gains, highest level versus the dollar in, let's see, about four years almost. The metals and mining ETF hitting the highest level since 2008, led by shares of Alcoa and Cleveland Cliffs, the ETF, now up 40% this year, and a bullish day for transports.

Without Jones Transportation Index, posting its best day since May with all components ending higher. Well, that's the scorecard on Wall Street. Welcome to Closing Bell overtime. I'm Morgan Brennan, along with John Fort. A couple earnings we're watching this hour, Kava and Corweave. Corweave, part of a wave of IPOs that we've seen this year. A wave expected to continue as we await pricing from bullish this hour, too.

And we'll be joined by Tom Siebel of C3AI. That stock getting crushed yesterday after preliminary results. What went wrong? We'll find out. But let's begin with the markets once again rising to new highs, this time driven by CPI and the hopes that's lower inflation will lead to more Fed rate cuts. Well, Christina Parts Navalis is at the NASDAQ, and she has more. Christina.

Yeah, so no doubt the July core CPI came in largely as expected. But what that's keeping the Fed on track, as you mentioned, for a September rate cut with markets now pricing in an over 90% probability. That's why you saw the S&P 500 break above $64,000 for the first time. But the real action was actually in small caps. Don mentioned it. The Russell 2000 showed that investors are really betting on. the rate relief. And small caps carry nearly triple the leverage of large caps. That's why you saw

it jump up, making them incredibly sensitive to borrowing costs. When rates come down, it's a direct boost to their bottom line, which is why you saw it almost closed 3% higher today. Transportation stocks are another standout with the sector ETF, IYT, you're seeing on your screen, up closing at 3%. American and United led the charge after airline fares jumped 4% month over month in July. This is from the CPI report, the first increase after five straight monthly declines. That pricing power is exactly what investors want to see. And then you also have Spirit Airlines raising alarms about staying afloat and that lifted other names who could potentially steal market share. Last but not least, semiconductor SMH ETF also hitting an all-time

high today, outpacing both the spy, which tracks the S&P 500 and the broader tech ETF, the XLK, both of those not as good as SMH just year-to-date. Texas Instrument was a key driver surging our reports as hiking prices of 40% of its price. products. But really, today's inflation data was this Goldilocks scenario, not too hot to derail rate cuts, but showing enough pricing power in key sectors to support corporate margins. That combination sent risk assets soaring across the board again today. John? All right, Christina, thank you. And now let's talk bonds, yields on the 10 and 30 years, both moving higher, despite what the markets perceive as increased likelihood of a rate cut. Our Rick Santell is in

Chicago to explain, Rick. Yeah, hey, listen, if you're looking for for a rate cut, don't make the long end go down as well, because if you think that you may be wrong, remember, we cut 50 basis points a year ago, September, long rates went higher. The market has a mind of its own. Let's start with the data today. If you look at year over year headline,

well, 9.1% was high watermark in mid-22. That's where the chart is on the left side. Look at the right side. There is very little doubt that nothing really has changed. We've been mostly going sideways. And if you look at year-over-year core from its high watermark, which was sep of 22 at 6.6%. Yes, it turned up a little bit at the end. Listen, there's no dismissing. The number was a little warmer on the year-over-year core. But it isn't only the fact that

the whisper number was worse, much worse, and it didn't turn out that way. There's also a lot more benefits to the economy than just lowering quarter-point or 50 base points in September. What is it? Rags after the big, beautiful bill. There's a lot of tax issues that businesses are finding very, very fruitful. And if you look at twos and tens today on a 12-hour chart, wow, look at how 10-year yields bounced much more aggressively after that CPI. And that makes sense. We have a day off tomorrow in terms of inflation. We'll be coming back on Thursday with the cousin of the CPI in the form of the PPI.

Listen, it isn't only what's going on in the U.S. Look at the boon. This is a 10-year boon. It closed about two and three quarters today. Basically, the highest yield closes going back to the second week in March, almost five months. Germany has to borrow a lot. Lots of countries are debt spending. We need to continue to pay attention because today's warmer than expected CPI, it's steep in the curve. The long end is awake. Morgan, back to you. It's such a key point. We do need to keep our eyes around the world as well. Rick Santelli, thank you. today's data is telling us about the U.S. economy. Let's bring Daniel Hornung, former deputy director of the NEC, and a current research fellow at MIT. Daniel, it's great to have you on, and let's start right there. What was your read-through for CPI and specifically for core CPI, which did on an annualized basis come in a little

hotter than expected and actually at the highest since February, but not necessarily spiking or not necessarily spiking to the extent that I think some people have been expecting that we would see well it's good to be with you you know the market certainly took the report very well I do think as you know when you look at that core CPI figure one of the things that we are starting to see is after really two years of moving closer to that Fed target we are seeing a little bit of an uptick in the sequential core inflation and underlying inflation data and I think a large part of that is the moderate impact we're seeing

of tariff pass-through that is likely to grow in the months ahead. You know, if you look particularly at import-sensitive categories, things like furniture, appliances, car parts, we're seeing a kind of shift in the inflation data there towards higher inflation. And when you couple that with the economic data that we've gotten over the last few weeks showing some labor market weakening, showing some slowing in economic activity and growth, I do think that despite the excitement today about the fact that the Fed will likely cut in September, there are some medium-term questions that really remain about the effect of tariffs,

both on the inflation side of the Fed's mandate and on the economic growth and employment side of their mandate. Can you trust the data? Look, I think you can certainly still trust the data. I do think that we are in an important moment, though, where it's going to be critical that members of the U.S. Senate really do interrogate this nominee and press him on whether he can commit to providing credible, nonpartisan data completely free from political interference. And if he can't, I think it's incumbent on them to vote no. And I think it's incumbent, too, on business leaders, on market participants and others who

really understand that U.S. economic data is the envy of the world because of how accurate and timely it is to make their voices heard about the importance of this data being respected. Well, people say what they need to say in a job interview, it seems to me. My question on these numbers is pressure in the economy, particularly on the working class, on the consumer. Thus far, employment has covered a multitude of sins when we've seen other pressure showing up in the macro data. But you mentioned tariffs signal starting to show up. consumers have kept spending thus far. At what point do we really get to see whether the consumer and the job market are going to be able to power through this? I think you're going to see that

tested in the immediate period, both because the impacts of tariffs we know disproportionately affect low and moderate income households. We also see in some of the data like the Atlanta Fed data, for example, that after a period where wage growth was actually more robust, at the bottom of the income distribution. We now see wage growth really slowing down at the bottom of the income distribution. We over the last six months or so have seen almost flat consumer spending

in the aggregate. I suspect it's even weaker at the bottom of the distribution. So that's really an important measure to watch going forward. And I will add that the tax bill that was just passed has some aspects to it that will make things, I think, more difficult.

Yeah. What about health care costs? and even outside of that, well, maybe included student loan payments coming due and having an impact on credit scores. At what point do we get to see the full impact of those things flowing through? Well, I think one of the first things we'll start to see is on the health care front, as you mentioned, that folks who are getting their health care through affordable care act exchanges will start to get notices this fall that their premiums will increase in some cases by 10, 15, 20 percent starting in 2026. That will be a significant, I think, burden on those households.

And so that will be an issue to watch very closely. And as you note, the turning off of the student loan pause is already starting to show its way in some of the credit score data. So again, I think there really is a question here, not just about the macro performance, but about the distribution in the economy as well. And we are seeing some challenges in the bottom half of the distribution that policymakers will need to be attuned to. We'll watch the data as the year closes out. Daniel Hornung, thank you. And be sure to catch CNBC's live coverage of the Fed's Jackson Hole Economic Symposium

beginning one week from tomorrow. Well, meantime, Corrieve earnings are out, and Christina Parts and Nevelis is back with the numbers. Hi, Christina. Hello, Corey, revenue beating, $1.21 billion, higher than street estimates. So this is a company that rents out GPUs and provides infrastructure for AI workloads. They also posted a gap loss for the quarter of 60 cents per share, but we're not going to compare to estimates since analysts use non-gap numbers. For their revenue backlog in the earnings release, they're saying it's at about $30 billion, which was clutch. It's up

2x year-to-date. The release also says there's robust demand across labs, hyperscalers, and enterprises. We're also seeing their non-gap operating margins up at 16%. We rounded that number, so higher than estimates. And as well, the Q2 adjusted even. which is important because it measures profitability from core operations. That's coming in stronger at $753 million, higher than street estimates. Keep in mind, we will get guidance on the call. Shares, though, we're initially up and now they're coming down about 1% guys in extended trading hours. So kind of almost flat.

All right, Christina, thank you. Kava earnings are out. The stock is tanking. Kate Rogers has the numbers. Hi, John. So this is a mixed quarter for Kava, and as you can see, the stock down almost 18%. EPS beat 16 cents versus 13 cents estimated revenues, though, a miss. 281 million for the quarter versus the 286 million estimated, rather, by analysts.

Same store sales, likely what's moving the stock here, a big miss. They were up 2.1 percent, lower than the estimates of up 6.1 percent. Sales growth this quarter coming primarily from its menu price and product mix, with guest traffic being approximately flat. A reminder, though, for viewers, it was lapping very tough comparisons year on year. Its restaurant profit margin, 26.3% versus estimates of 26%. On guidance as well, the company cutting its full year same store sales forecast from a range of 6% to 8% to a new lower range of between 4 and 6%. It is maintaining, though, its ebada and profit margin guidance for the full year.

Also raising the number of new store openings its forecasting for the year between 68 and 70 locations. Now you can see, again, the stock down 18% on this report, down around 25%. year-to-date. The conference call is at 5, and we will bring you any highlights we get, guys. Back over to you. All right. Kate, thank you. Well, outside of that, stock soaring to record highs once again today, are the markets too optimistic about the impact of potential rate cuts? We will ask our panel. And core weave slightly lower after reporting results. We're going to talk to an analyst about the issues to watch ahead of the conference call. But that stock now down 4%. Overtimes back in 2. Welcome back to overtime, another record for the NASDAQ and meta helping to lead the way.

The stock hitting an all-time high today in trading, the company announcing that Threads has reached 400 million monthly active users. You see that stock finished up 3%. Today's gain bringing the market cap very close to $2 trillion. Well, see how engaged people are on threads as well. The major averages are rallying on a less than feared inflation print. Will a rate cut in September be enough to keep this rally going? Let's bring in Paulson Perspectives, author Jim Paulson and CFRA Research Chief Investment Strategist, Sam Stovall. Guys, welcome.

Jim, you say these numbers tell us inflation isn't so much of a problem. We were just asking a guest earlier about pressure on the working class consumer, though. Is a Fed rate cut still a game changer if we see more signs of pressure through the rest of the year? Well, I think, you know, certainly you can make a case that if inflation stays bad enough or gets worse, you know, John, then the Fed's going to be on hold. But, well, I think the data we've had over the last few months and even today, to me, tell me that there's not a big inflation problem. The bigger problem right now is lack of real growth. Real GDP through the first half of this year is up a little less than 1% annualized. job creation's up 60 basis point. It's annualized. You know, we've got inflation that's running

two and a half to three. That to me seems like much less of a problem than addressing the growth problem. And I think the Fed will opt to ease. I think that's what the choice they're going to make here next month. Sure, yeah. Sure looks like it. Sam, what extra information are we going to get from the producer price index backing up a little further in the chain here? Usually it's not as interesting as CPI, but given that we're watching the potential impact of tariffs here, is a little different this time? Well, I think it possibly is, and also a hello to Jim, haven't seen him in a while. I would tend to say that a lot of people look to the PPI as an early warning signal, if you will, for the CPI. And when we get those numbers on Thursday,

expectations are that on a month-to-month and year-over-year basis for both core and headline are likely to be a little bit hotter than the prior months. So going into today's reading, I think a lot of people had been negative on the market in general and small caps in particular, and they had to reverse course today. We'll see whether we have to do the same on Thursday. Okay. Jim, I'm looking at your notes, and there's a stat here that really jumps out to me. You say excluding the three months last year when the Fed cut rates that this is the only bull market in post-war history when the Fed has tightened throughout the bull. So if we get those cuts starting as soon as next month, what does that mean in terms of this market meltup that we're already seeing a hint at today? And what does it mean you should be owning? Is it still MAG7 or is it something else?

Yeah, Morgan, I think it's been, I think the reason the market has been so narrow in this bull market. is because of the fact that the Fed's been tightening throughout the whole thing. Even though inflation's been coming down, and even though real GDP growth has been weakening the whole bowl, they've still retained a tightening force. It just hasn't happened before. They've left a lot of potential supports on the shelf that we normally get. If the Fed cuts the funds rate, it won't just be the funds rate coming down. When they cut that thing, long-term bond yields could come down.

The mortgage rate can come down. The dollar will weaken further. The money supply will pick up. These are all positive forces for stocks and for the economy that we just haven't had yet. And so I think, yeah, I think if they cut, it's a game changer. It's kind of like starting a new bowl. I realize markets are high, but we don't generally have this much stimulus this late. I don't expect Mag 7 and tech to collapse because I think there's good fundamentals there,

but I think they do underperform. And this leadership broadens out to small caps, international value. plays in a bigger way like the start of a new bowl. The last time the Fed East, really, was 2021 and small caps led. And I think that that's what we'll get again if we get a change and finally get Fed support here for this bowl. What say you, Sam? How do you position yourself ahead of that? Well, I think that small caps and midcaps offer a very attractive relative PE discount. Both are trading at more than 30% discounts to their average 20-year relative PE with the S&P 500. And normally, what we find 12 months after the Fed has started to cut interest rates is a gain

for large caps of less than 4%. Yet this time, they're up more than 14%, whereas the small caps are definite laggards up about 3%. So an awful lot of room to move for the small caps given the opportunity. Okay, Sam Stovall and Jim Paulson. Thank you for joining us. As all the major averages finish the day higher in every sector in the S&P in the green. Well, coming up, another big mover as of late. Ether, continuing to soar to record highs as more and more companies race to become the Ether Treasury. We're going to look at some of the names that have been soaring today. And check out shares of big bear.a.I. getting clobbered after posting disappointing revenue figures down almost 16%.

Latest example of a stock making a big move after earnings. Up next, Mike Santoli, you'll take a closer look at how stocks are performing relative to earnings. Stay with us. Welcome back to overtime. Bitcoin higher again, still hanging around that 120,000 level just below. Real crypto action is in Ether, jumping once again today and up 25% in a week. We're seeing more companies trying to become Ether Treasuries, the micro-strategy model, but for Ether instead of Bitcoin, BitMine looking to raise $24.5 billion to buy more Ether

by selling more stock. That stock has doubled in a week, but the market cap is still only about $7 billion. And a company called 180 Life Sciences is in the process of rebranding itself as ETHZILA, jumping 3X today as founders fund disclosing a 7.5% stake in that company. The fund also has a stake, Morgan, in Bitmine. It's definitely an original name. All right. Well, from crypto to stocks, let's bring in senior markets commentator Mike Santoli

for a look at the interplay between stock performance and earnings. Mike. Yeah, Morgan, it's been a bit of a challenge, despite the fact that the indexes have done very well. We know that earnings really delivered. Their beat rates were very high in the margin of outperformance among earnings. reporters has been wide. Problem is, the market seemed to figure that out before we got into earnings season. So this from Raymond Jane shows the percentage of S&P 1500 companies, that's

large, mid and small cap companies that are outperforming the index during earnings reporting season. It's down around a third of all companies, and it's about as low as it gets, as you see, going back quarters to the beginning of 2017. So that does show you that we got priced for good stuff. You're getting punished if you have anything less than stellar guidance. But I guess it's overall moving the chains and the market is managing to move forward even despite that. Now, take a look at where valuations have settled. This is for the NASDAQ 100, of course, which is mostly driven by those Mag 7 type companies. And it is back to just about got to 28 times forward earnings again. This is a three-year look. And I wanted to point it out because this is

basically the duration of the current bull market, the AI bull market, as you might call it. And It's basically been around the ceiling. Now, there's no rule about this. We were higher during the pandemic when earnings were depressed. Obviously, we were higher during the tech bubble versus now. But it seems as if this has been as much as the markets wanted to pay. Obviously, earnings for these companies still growing. We're going to dial it forward, and the earnings estimates will come up so the PE can get some room to rise again.

But just wanted to point out where we've come to after this long rally since April of building in a pretty benign outlook. So does the story, especially when you start to think about earnings and valuation for the market, are folks looking past the rest of 2025 and into 2026 then in terms of forecasts? It's around the time of year when that becomes more relevant. Yes, Morgan. I mean, look, we have two earnings reporting seasons that are still for 2025. A lot matters in terms of how we get there. Everyone knows, you know, fourth quarter tends to be strong for stocks.

We tend to finish strong years in good fashion. The problem is you don't always go in a straight line and we have to maybe sometimes reconcile some complicating factors along the way. So look, valuation hasn't really helped you very much in terms of whether to be in or out of the market. But to set your expectations for how much you might get in terms of valuation expansion from here versus earnings growth, I think it does help to filter that in. Okay. Mike Santoli, thank you. We'll see you later this hour. Well, coming up, we're going to talk to an analyst about what he's seeing in CoreWeave's results with that stock now down about 5.5.6%. And the markets punished C3 AI big after it announced preliminary results and a global restructuring CEO Tom Siebel calling the results completely unacceptable. We're going to talk to him ahead about what went wrong.

Overtime, we'll be right back. Welcome back to overtime. Record day for the NASDAQ and the S&P 500. The S&P's first close, about 6,400. It comes after this morning CPI inflation data appears to clear the way for the Fed to cut rates. And the impact really helping the small caps, the Russell 2,000, up 3%. We've got a couple of earnings reports earlier in the hour. Shares are falling sharply in Corweave and Kava.

Earnings were slightly better than expected, but at Kava, revenue came up short. Well, we also heard from Corweave. That's the stock is moving lower right now and overtime, following results just moments ago. The company posted a loss. We're not comparing that to estimates, but revenue was better. than expected. The CEO saying it's scaling rapidly to meet, quote, unprecedented AI demand. So let's bring in Nick Deldeo of Moffat Nathanson. Nick, it's great to have you on. Cash flow came in better than expected, too, because they didn't spend as much as they set out to on CAPEX either.

Why is the stock falling? Yeah. Thanks for having me, Morgan. I think, you know, if there's a number that stands out in the earnings report that might have been a little shy of expectations, it's probably the remaining performance obligations or their backlog, which, you know, is in Dick, it's a function of how much new revenue they book in the quarter, less what they reflect in the P&L. So to the extent that folks thought that there would be substantial new bookings in the quarter, that that's probably what is driving the movement in the stock. How closely are you watching this timing between large bookings and buildouts of data centers? How much does that matter to the future for CoreWeave here? Oh, it's critical. You know, people typically think about CoreWeave in the context

of chip supply, but I would argue that data center supply is just as critical because you can't bring GPUs online without data center capacity. So, you know, one of the metrics that we look at closely is their committed data center capacity, which I believe is 2.2 gigawatts as of the end of Q2 versus, I think, in the range of 500 megawatts active. So all SQL, that would point to roughly, you know, a 5X increase in the business's capacity over the coming years. Obviously, to the extent they're gated by the cadence at which they can bring that capacity online and match it up with the GPUs they can, they can procure and put in those facilities. Is the suggestion here, Nick, that it is a procurement issue, perhaps?

I mean, AWS was capacity constrained famously in the most recent quarter. Why would CoreWeave's pipeline come up short? Well, in terms of new bookings, look, deals are lumpy. It could be that simple. We'll see what the company has to say on their earnings call at the top of the hour. It could be a capacity constraint issue in the near term. Any one of those factors could be responsible. So what should investors listen for in particular?

What would be the better news as to the cause of that bookings issue? Yeah, look, I suspect that the company will address it on the call directly. So we'll hear from that. We'll hear if they've had any large bookings after quarter end. But, you know, again, if a booking came in, say, you know, on July 1st, as opposed to June 30th, if that could push it from Q2 to Q3. I think thinking about 2025 guidance would also be important. It seems like the company may have brought some capacity.

some GPU capacity online ahead of expectation to drive the revenue beat. So the degree to which that rolls into guidance will also be something to watch out for. I mean, this is a company that critics have said does not have a lot of diversification in terms of the revenue stream and future revenue stream, at least through the end of the decade. So what does core scientific and the acquisition of that company bring to the table? Yeah. So as we talked about a moment ago, So, Corrieve's growth is, in a way, constrained by the amount of data center capacity it can bring online. And as you guys know, power supplies are a real issue for the data center space today. So what Corrieve has done is kind of broadened its aperture and look to do deals with former Bitcoin miners, like For Scientific, like Applied Digital, like Galaxy Digital, as an alternate way to bring capacity online.

They struck deals for worth about $10 billion for 600 megawatts of capacity with core scientific. uh... essentially by buying course scientific what that does is it allows core we have to make those rent payments go away uh... it helps it to arguably bring some of that capacity online sooner

and take control of capacity that core scientific may have otherwise wanted to lease to other players in essence i think the other company is issuing richly valued equity to bring on uh... art assets nick to what degree should investors be concerned about risk leverage to risk here

i mean the a i'd trade has been hot and maybe even frothy at times. And you just mentioned crypto being a piece of this. We were just talking about some of the wild stuff happening in ether right now. Is there a chance that some kind of disruption in one of these areas could bleed over into another? Oh, you mean between crypto and Corey's business? I wouldn't say that's likely. Again, I think that the folks that Corey is dealing with are primarily former Bitcoin miners

that are trying to repurpose their power capacity to serve high-performance. computing needs. I'd say in a broader sense, to the extent that you view the AI theme is frothy. I mean, Corrieve is kind of ground zero for that trade. You know, it's harder to find a pure expression of AI infrastructure in the market. I would say, you know, in Corrieve's defense, I think they do have multi-year contracts with their key customers, which will have to insulate their financials from near-term swings. They're much less reliant on leasing outcapacity on a spot basis. It tends to be contracted over a longer time, and that certainly helps to mitigate some of the risk. For sure. Makes sense. Nick Deldeo, thank you. Yeah, thank you. And Circle is another company

going public recently and soaring since its debut. Now the company is looking to capitalize by selling more shares, announcing that it plans to sell 10 million shares. You can see it off there a little more than 6% here in overtime. Well, we're going to keep sticking with crypto because crypto exchange bullish is set to price its IPO at any moment. This is the owner of CoinDesk. Up next, what investors should expect when this highly anticipated new offer, offering starts trading tomorrow. Plus, C3AI shares sinking yesterday after releasing preliminary results that one analyst called catastrophic. Coming up, company's CEO, co-founder Tom Siebel, is going to join us exclusively to discuss the turnaround of the company. Be right back.

Welcome back to overtime. Breakfast and Burritos on the move today. Shares of Chipotle higher after Piper Sandler upgraded it to overweight from neutral, $50 price target implies 20% upside. Analysts there saying the risk reward is too attractive to ignore. And shares of Starbucks in the green as Baird ups the stock to outperform from neutral, saying the turnaround under the new leadership is finally underway. And the common theme at both companies besides the letter B, breakfast and burritos, Brian, Nickel.

He's now the CEO of Starbucks after leaving. chipotle to run it well the ipo market she said has been heating up and that trend keeps rolling tonight we've got crypto exchange bullish set to price its IPO any moment now and today maciel is here on set with the details yeah that's right a lot happening with crypto and the IPO market morgan bullish aiming to raise 990 million dollars offering 30 million shares priced between 32 and 33 dollars a piece and giving it a total market value of 4.8 billion dollars. So that's according to a filing yesterday, but we should be getting updates on those figures very shortly. And you can see demand for this IPO has really grown. Originally,

the company had marketed just about 20 million shares in a proposed range that began at $28 a share. And both Black Rock and Kathywood's arc have indicated interest in buying up to $200 million of the shares. Now, this is Bullish's second attempt at going public. They're looking to take advantage, of course, of the Trump administration's crypto-friendly stance, which has really invigorated capital markets this year. It's not exactly a household name, you guys. Bullish just launched in 2021. You or I usually hear it talked about as a crypto exchange, although it's also the parent of the crypto news and data site CoinDusk. And the exchange is headquartered in the Cayman Islands. It's really focused on institutional investors and blending defy or decentralized finance offerings

with the security of a company that is centralized, so a little different from what you think about when you think of a coin base. Yeah. And it's interesting because it's, the first of two exchanges, crypto-related exchanges that begin trading this week, Miami International and Options Exchange coming in a couple of days as well. But I want to go back to the fact that they basically said, Bullish has said, that they plan to convert a significant portion of the IPO proceeds to U.S. dollar-denominated stable coins. Yeah.

It seems like everybody's funneling money into, among these companies, into the broader crypto ecosystem, and it's creating its own sort of flywheel effect. Yeah, definitely. Stable coins are just, they continue. to be such a hot topic. And today you saw, you know, the first earnings report from Circle. You have all of these brands becoming more and more interested, not just brands, but big institutions.

And Circle even saying today in their earnings that, you know, they are launching a proprietary blockchain to be able to kind of further that flywheel. So really a moment to capitalize on. And we're also talking about this. You guys talked about it just a couple segments ago, the explosion in ETH Treasury companies. We are seeing ETH right now at this moment, I think, hit a new disqualify. December 2021 high. I'm really inching closer to its record. And of course, ETH is kind of the backbone of a lot of the stable coin activity that you see. All right. Tena, thank you. Thank you.

Well, up next, C3AI CEO Tom Siebel calling preliminary first quarter sales guidance that sank the stock yesterday, completely unacceptable. He joins us next, an inclusive interview. Tell us what comes next. And later, we will look at whether pharma stocks could finally be on the mend after, well, a disastrous year so far. Overtime, we're right back. Welcome back to overtime. Check out shares of Haynes brand's huge move for this stock today. Finishing up 28% storing on a Financial Times report that Gildan Activewear is in talks to acquire the underwear maker for roughly $5 billion, including debt.

You can see Gildon actually finished down lower. today on the news. But despite today's gains, Haynes brand shares are still down more than 20% this year as it deals with weak sales and higher costs from the Trump administration's tariffs. John, the takeaway here, and we're hearing it from a number of strategists and analysts is that you are seeing an uptick in M&A, and a lot of it is tied to industries and companies that are navigating tariff dynamics. Indeed. Well, wait till Gilden gets their haines on you. And turning over to software, shares of C3AI, getting a little bumped to. Today, up better than 2.5% after a huge 25% drop yesterday.

Stock fell after the company announced preliminary first quarter results and a reorganization of its sales and services teams. And joining us now is C3AI CEO, Tom Siebel. Tom, welcome. Hello, John. So the stock is at the lowest level in more than two years since early 2023. May 23 was also the last time the revenue number was this low. What happened?

honestly john the sales execution was just completely unacceptable i mean the market is huge the product is great the customers are satisfied we had a huge pipeline and the execution was just dreadful the stock the company stock is taking a beating by the market and honestly i think it's well-deserved so help me decode what happens here it sounds like based on your statement you were saying the sales process needed you directly more than you realized your health challenges earlier this year really took a toll. So did you see the sales challenges bring in these new hires to fill the gap and in the handover things worsened? Well, in the course of the last six months, we've brought in an entirely new generation of very senior sales leadership, most of whom joined in the last, in the

course of the last quarter. General manager, Amea, general manager for the Nordics, some very senior leadership in federal, chief commercial officer, global. So, I mean, a lot of very senior people kind of came in in mid-quarter. Now, in hindsight, I think that caused some confusion in sales management. I think in hindsight also, the other element that definitely, affected the quarter and I didn't really realize it at the time but you know as you know in the last say seven eight months I've gone through a number of health issues I had a a autoimmune attack you know open heart surgery pulmonary surgery was kind of one disaster after another but I'm in good shape now okay but the bottom line is you know I was not able to participate nearly as active actively as I always

used to in the sales process in terms of structuring deals, visiting accounts, talking to customers, what have you. And in hindsight, I think maybe I had a little bit more impact on the sales process than I thought. Going forward, I think we have the sales leadership that can get this job done with me or without me. So I think the company is in great shape going forward. But the sales performance last quarter, John, was just inexcusable. So, Tom, if I were an investor, I would be wondering, is this a reset back to two years ago, or is this a sort of fall off the bike moment, but you get back on and keep peddling? Is the rate of sales going to go back to where it already was in 2025, or are we resetting

and rebuilding for more of a 2023 level? Great question, John. This is a punctuation mark. It's not the end of the story. I mean, I remember in 1989 in Oracle when the stock went from 27 to 3, and it was the end of the world. And, oh, by the way, Oracle has missed 35 quarters since that, okay? Amazon has missed 23 quarters. Invidia has missed 10.

Apple has missed 15. There's the first quarter that C3A has missed. I suspect it won't be the last quarter that C3A will miss. You remember that about seven months ago, Salesforce had a pretty good miss, and it was the end of the world. And now nobody even remembers it. George Forders from now, nobody will remember this, and we'll be on it, and we'll be back to the races. Well, Tom, I know your story well. You have conquered health issues and challenges before.

And that elephant trampled you. They said you wouldn't walk again. And yet you have, what is your role at the company going forward? You're in the search for a new CEO, but in your, in your, your chairman role, I believe. How active do you plan to be in? In what way? I will be an executive chairman. I will be, you know, I think the things that I am best at is product strategy and also partner relationships and significant customer relationships. That's what I'm best at. That's what I enjoy. And that's where I'll spend my time in assisting the CEO in any

way that I can to make sure that he or she realizes the full potential of C3 AI, which I continue to believe is going to be spectacular. All right. Tom Siebel, appreciate you joining us here on overtime to explain the CEO and co-founder of C3AI. Up next, Mike Santoli breaks down the huge sell-off in pharma stocks and whether they may finally be looking cheap to investors. And don't forget, you can catch us on the go by following the closing bell overtime podcast on your favorite podcast app. We'll be right back. Welcome back to overtime. Let's get a look at pharmaceuticals. That sector has been under pressure as President Trump ramps up demands for those companies to lower drug prices here in

the U.S. But is the recent underperformance making them attractive? Let's ask Mike Santoli. Yeah, John, I mean, look, it's a very long-term call. It's been a long-term trend where they've been kind of devalued relative to their history. The question is are they washed out sentiment-wise, valuation-wise. Here is the relative valuation of big pharma stocks brought up to all of the large-caps. This is from a Michael Sembolist big think piece from J.P. Morgan on the health care sector. It goes all the way back 50 years. And it shows you we're now trying to get a massive discount to other large caps in pharma as opposed to trading at solid premiums back when it was considered to be this growth industry, with great demographics, high-quality businesses. So it's totally unclear if that's as

low as this goes, but certainly you're paying less for every dollar of earnings than you have in the past compared to other companies. I would say there's glimmers of hope in some areas. Take a look at Johnson and Johnson, which is starting to pull away just a little bit from the rest of the pharma sector. Obviously, it doesn't have some of the overhangs of the GLP ones. It never really was in that business. So Lily has had a tough few of the market. months and then you see starting to break out or maybe on a longer term basis. I also have pointed out over the weekend in my weekly write-up that has the same market cap G&J does as Palantir, just over $400 billion. J&J 16 times earnings, Palantir, whatever, 80 times sales. So, you know,

kind of choose your fighter, what kind of investor you might be. Okay. That was a few days ago. Palantir might have gone up $100 billion in market cap. Back to that first chart on fall. I can't help but wonder, is it a sense of what technology is? Because if you flip that upside down, I have a feeling that would represent what tech has done, or at least the modern concept of tech since then. I mean, that peak around 2000, and then the drop-off. I mean, hey, that's when the Internet was taken off, and then we had the smartphone and now AI.

There's no doubt about it. There was innovations in drug discovery and the idea of the billion-dollar drug and the delivery mechanism for getting these brand-name drugs and protect those earnings streams, all that stuff absolutely did resemble tech. It's IP, right? One way or the other, it's IP, and they're finding a way to get a premium price for it.

And a lot of that business model has obviously come on hard times, and maybe policy is going to pressure that business model longer term. But, you know, again, we're still going to need them and maybe more of them as we all age. Individually, sure. Yeah. All right, Mike Santoli, thank you. Well, let's get you set up with tomorrow's trade

today. Weekly mortgage applications is the only data on the economic calendar, and on the earnings front, we will get results from Brinker, which owns the Chili's restaurant chain, Cisco and I Bada. And speaking of Brinker, I mean, that's a stock, and all the restaurant stocks are largely trading lower in sympathy right now on the heels of those Kava results, John. Sweet Green is lower, Chipotle is lower, and just looking at Kava right now. This was the weakest same store sales growth on record for Kava. And if these losses that we're seeing in the stock right now hold, it's down about 21, 22 percent into trading tomorrow. It'll be the worst day ever for the stock since it did IPO a couple of years ago. Yeah, I wonder how much of that has to do with

expectations, right? Because just a few quarters ago, we were talking about are these McDonald's value meal like price cuts going to work? And at the same time, these, I don't know whether they call them fast, casual, but, you know, we have Ron Shake on. Kava was working well. Chippo'i was working well. As we have questions about the consumer's appetite for spending, do they start to default back to the cheaper options versus even the higher quality? Don't know. Yeah. And in general, looking at the earning season, what we've gotten so far, whether it is fast food, whether it is fast casual like this, or even some of the restaurant chains, we've had some soft numbers here. So we'll continue to watch it and how consumers are spending their money as some prices for

some goods continues to rise. All right, that's for us here at overtime. Fast money starts now.