Closing Bell - Closing Bell Overtime: Chip Rally Takes a Breather But Markets Stage Midday Turnaround 6/4/26

Episode Date: June 4, 2026

Investors look beyond semiconductors and ask whether the rest of the market can carry the rally forward. Charles Kantor of Neuberger weighs whether leadership can broaden beyond AI and chips and identifies where investors may find the next opportunities. Lululemon headlines earnings. Janine Stichter of BTIG reacts to the results. Other stories include Blackstone restricting withdrawals from a flagship fund, pressure on Netflix, and whether Bitcoin may finally be finding a bottom. Our Pippa Stevens reports on the spread of flesh-eating parasites from Texas while Elanco Animal Health CEO Jeffrey Simmons discusses the risks to agriculture and livestock. Our Leslie Picker examines Wall Street's growing obsession with SpaceX and what it means for private markets. The show also explores Coinbase's move into perpetual futures tied to pre-IPO companies. John Kolovos, Head of Technical Strategy at Macro Risk Advisors, breaks down market internals and explains what the charts are saying about the rally's durability. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The bell is bringing in to the trading day at the NYSC, room to grow, ringing the bell at the NASDAQ. The CEO of today's big IPO, Continuum, is doing the honors. Welcome to closing bell over time. We're live from studio at the NASAC market site. I'm Melissa Lee, along with Mike Santoli. The Dow up with a big gain, 900 points, 1.8%. That's a record close. The SMB 500 up about half a percent.

The NASAC right near the flat line, the Russell adding more than one and a half percent. On our radar at the close, Lulu Lemon earnings due out in moments. We're also watching for results from several. software names, including DocuSign, and we'll bring you the latest on the SpaceX IPO Roadshow, as we're about a week away from that deal's pricing. And the flesh-eating parasite, everyone is talking about. How big a threat is the screw worm? We're going to ask the CEO of Elonco, Animal Health. Yeah, the big, everybody's talking about it. It's not the latest YouTube horror series. The big story for the markets, a change in leadership, at least for today, tech tumbles on

Broadcom, United Health, Leads Healthcare, Credit Card Stocks, Boost Financials, the pullbacks, though, that we saw within the tech sector might seem pretty rational, mostly semiconductors. Software was actually hired today. Surgical weakness in the likes of Broadcom, Micron, AMD. And then you have the S&P healthcare sector of 3%. Right? What that tells you is, and there's no real news there, this is not about a macro shift that got people out of semis and into health care. It is the market reacting to its own extremes of outperformance by semis and trying to rebalance itself that way. It's healthy if it can continue that way. I mean, I think you have to say S&P up 20% from the intraday low March 30th.

The risk reward has to be a little bit more mixed looking out ahead. Summertime, you also get a little bit of a jolt sometimes. But right now, the market action itself is pretty benign. Yeah, financial, some notable moves there within there. Goldman Sachs, highest level since its IPO back in 99. Morgan Stanley, highest level since it merged with Dean Witter, Discover, back in 1990. I remember it well. And J.P. Morgan, which has kind of just been sitting around up like 3% as well.

So everyone's excited about the capital markets being pretty kinetic right now. We'll see if it's more than a one-day phenomenon. Let's get more on this market reversal. Christina Partsenevelas is here with that. Well, you guys talked about the Dow surging over 900 points to a record close today. As investors really rotated out of technology and some of the other big areas of the market, healthcare, like you mentioned, led the way you had United Health jumping roughly 5%. There were some bullish calls from Bank of America and Morgan Stanley that helped push the sector to the top of the board.

They're calling for about $450 a share. In terms of financials, the second strongest sector with Goldman Sachs, American Express, Visa, all among the top performers. Tech, on the other hand, got hit hard. Broadcom's, dare I say, mediocre revenue guidance raised questions about how fast AI demand really can grow from here. And that weakness spilled over into the entire chip space. Micron fell as well as investors kept their own. on whether the menly chip cycle may be peaking. It's crazy how quickly we can change our narrative. But CrowdStrike, another name that actually fell off over 3% after its earnings just barely beat

expectations, as some investors took profit just after a big run as well. InVIDIA, though, did manage to turn higher, climbing over 2% and snapping a two-day losing streak. And in another pocket of the market completely, Blackstone, jumping roughly 7.5% after withdrawal requests from its flagship private credit fund were less than a little. than fear. That also helped lift Blue out, KKR areas. After all four had actually been hit pretty bad the day before after Blackstone

capped their withdrawals. Christina, thanks. Christina Parts Nevelas. Now to the bond market yields pulling back ahead of tomorrow's jobs report. Rick Santelli, Sandy, by, in Chicago. Rick. Indeed, they are pulling back a bit. And everybody, of course, is talking about the wild path of percentages and probabilities

that may lie ahead for future meetings. For the July meeting, over the last four weeks, We've seen 4% chance of an ease for July. 12% chance of a hike currently stands at 8% chance of a hike. And the conflict, of course, has boosted yields everywhere. Maybe tomorrow's job report will help bring them down even more. But here's the scorecard. Since the conflict began, U.S. 10-year yields are up about 10.5%.

Now, let's look at all the big economies outside the U.S. The EU, it's up about 11.5%. The U.K., 13 and change. The big loser in all of this have been Japan. The JGB yields are up about 25% since the conflict began on the 27th of February. We want to pay close attention. There's many more variables that have pushed these

rates up, but ultimately, Central Bank's behavior and inflation adjustments, obviously all affected by the conflict. Tomorrow's jobs report, you want to see which side of 4.5% tenure closes the week. Mike, Melissa, back to you. Absolutely. There's the the line. Rick, thank you very much. As investors rotated out of the bigger chip stocks today, the rest of the market stepped up to pick up the slack. Is this the start of a bigger trend

where the prominent AI players take a back seat? With us now is Charles Cantor, Newberger, senior portfolio manager. Charles, good to see you. Good afternoon, Mike. You know, we've had some false starts here. AI hardware has been kind of dominating things pretty handily for a while. How are you viewing kind of the imbalances in the market or the efforts to rebalance here? Look, some of it is, a lot of it's fundamentally driven. The earnings have been spectacular out of many of the sectors that are all the best, and there's just a massive shortage of computing power, and earnings have continued to be just spectacular.

And as good as you would typically see coming out of a cyclical recovery, and we're not in a cyclical recovery. And so, look, a lot of us would prefer a broadening of the market. And when we say that, I think it's no longer broadening away from MAC 7. It's really a broadening away from semi-cap equipment and hardware. And the low-volve, high return on capital, lower beta stocks have had just tremendous underperformance coming out of Liberation Day. I mean, historic underperformance versus the higher beta, more cyclical side of the market. So those of us focus on those types of businesses are looking forward to more broadening.

You had a little bit of that today. But the pipeline of demand for stuff related to building out compute and data centers from now, even into 2030, is a powerful force. Charles, stay right there. We want to get to Lulu Lemon. The earnings are out here. $1.69 a share. That's one cent better than expected. Revenue of $2.47 billion, also a narrow beat.

But margins falling short. and the forward guidance is also short of consensus for the second quarter. The high end is a range of $1.81 compared to the current forecast of $268. Revenue, similar story, high end of the range below what analysts we're looking for. Same thing for full year earnings and revenue guidance, of course. We're in sort of a no man's land when it comes to management. The new CEO is going to start in September, so it's maybe not a surprise that this earnings report is not, you know, anything to write home. And I guess you'd have to do the game theory of do they want to really set a very low bar for the

becoming CEO in September, and I've certainly done that, given how the stock's already performed and had down another 8.5%. Yep. Charles, back to the markets. Obviously, everybody's talking about the SpaceX IP, and I'm wondering how you think about that in the impact of the markets, whether it be investors having to sell other things, to participate in SpaceX, or just the impact. I mean, it's multivarable.

It's a very large company. It's combined with a lot of changes in the indexes, which is kind of, of creating lots of technical maybe imbalances. But at the end of the day, I mean, risk appetite at this moment, given almost 10 weeks now of weekly gains, which I think marks a record since 1985, sets up really well for SpaceX. But it will be a test on risk preferences.

And I think on the deal itself, I think lots of us are kind of doing the technical analysis, and then we'll get to the fundamental analysis. and I think the technicals are pretty strong, despite the fact that they're raising, you know, $75 billion. And the harder questions around, you know, the nature of the business, I think will come a little later. But, you know, stocks are stories, right?

And Elon and others are some of the best storytellers ever. I think the difference with Elon is he's just an amazing, once-in-a-generational entrepreneur, risk-taker, and an operator of very great. complex businesses, and he's earned the right. I mean, I think his superpower is the market's willingness to recognize that and to provide capital to him at what feels like amazingly cheap levels. Right, exactly. And so I guess the other way of looking at it is he is crystallizing that advantage that he has, having had this company as a private business for 25 years,

and placing this initial valuation out there and saying take it or leave it at this valuation. For sure. And I think for now he's earned that right. I think a lot of, Mike and I, we've come across a lot of great storytellers that when, when halfway through the book, you realize it's going to end terribly. Right. So, so we are in a storytelling environment. We're doing lots of math around 2029 and 2030 for lots of businesses. But Elon's earned that right. And the market's going to give him the benefit of the, the doubt and risk preferences are insane. I mean, interestingly, it's not just SpaceX that's coming. We've got, we've got a, you know, maybe another two or three hundred billion dollars come in with Anthropic and Open AI. And what is true is I think all these businesses add risk to the market. If you think of the market through the lens of the index, whatever

index you pick, just given the size of these companies. And I do worry a great deal about we have risk is being priced very cheaply, and the many of the things we folks think about as the market is getting riskier and riskier every day. Charles, great to see you. Thanks for your thoughts. Charles Cantor, New Burger. All right, well, DocuSign earnings are out. Sima Modi has those numbers.

Sima. Mike, shares of DocuSign lowered despite a Q1 beat, a $1. A $1.9 adjusted versus the estimate of $0.99. So about a 10 cent beat, revenue coming in higher expectations. About a 9% year-over-year sales growth. at $830 million. The estimate was for $824. And if we look ahead to its outlook, the second quarter revenue guidance,

the range of $865 to $869, that is roughly in line with the estimate of $866, although I would point out that the non-gap operating margin that it's indicating for the second quarter, that range is higher than the estimate of 29.2%. Yet shares are sort of down fractionally some comments here from CEO, Alan Tigason. He talks about how they're continuing to see growing demand. for its AI platform, 40,000 customers. He knows investing in the company's rapidly expanding roadmap. We'll get more details when the call starts.

Melissa, for now, back to you. Keep us posted. Sima, thanks, Sima Modi. Let's get back to Lulu Lemon. Those shares sharply lower right now after a week forward guidance and compressed margins. Joining us now, Janine Stichter, BTIG, Consumer Retail and Lifestyle Brands Analyst. She's got a buy rating on Lulu. Janine, great to have you with us.

You're expecting a hard reset given a new CEO who's coming in the fall. Was this it? Or should we expect more reset to come? I think time will tell on that, but this is definitely a step in the direction. We look at the guidance they've previously given. It assumes sequential improvement throughout the year, despite the fact that they're pulling back on promotions, which naturally makes it harder to drive revenue growth. So I think the question was, would they reset guidance now or wait until Heidi O'Neill,

the incoming CEO comes in September? And it seems like they're taking a hard look at what's realistic at this point in time and saying, let's cut now. And hopefully this is it. don't know that yet, but this is them taking a more realistic view of what they can actually execute on the remainder of the year. What do you think should be the order of priorities for the new CEO coming in? I mean, is it a broken brand? Is it more operational? Is it just resetting expectations? I think it's not a broken brand, but one that is in need of a tune-up. They've certainly

lost a bit of the relevance that they once had, and I think that should be priority number one. And what that ties to, and I talked about it a bit in the press release here, is really reducing their reliance on promotions. We've seen over the past year or two that they've become more and more promotional. It's not over. They're doing it mostly through clearance on their website and clearance in stores. But this is a brand that was once a really full-price premium brand. They've lost that luster. So I think it really comes down to restoring the promotional integrity.

And with that, bringing back the product that really used to stand for something being unique and innovative, and they've lost that cutting edge at this point. Did you think that things looked like they were inflecting when you take a look at credit card and store traffic data? It did look like there was a turn higher and monthly unique visitors to the website as well as in monthly visits. Yeah, one thing we had noted was we had seen that increase online in improvement in traffic and visitors. But our reason is that it was lower quality traffic, kind of once again going back to what are people buying on the website. They were really visiting though we made too much page, which is the sale page. And what they need to do is drive business back, drive customers back to the full price side of the business. So we did see an improvement in traffic online, but I think that was a lower quality customer,

one that they probably need to almost fire and work on bringing back that full price customer. I was good. That sounds like a pretty tough job for any brand. I mean, that once did, you know, they used to boast about how everybody was looking to pay first day first price for the new product. and now you have to recondition customers in a more crowded market. Yeah, I think it's challenging, but it all comes back to product and marketing, and that's really where they've lapsed over the past few years. I mean, we look at something as simple as they had the get low launch earlier this year, and that had the opportunity to be something that was really big for them.

And what we saw instead was that it was pulled from the shelves. The marketing didn't really fit with the product that they had. If you went into the stores, there was no one really there to explain to you what the product was. So it just felt like they were missing on multiple fronts. when they had actually something that maybe was new and innovative, but they just didn't really know how to properly market it to the consumer. And there's a lack of cohesiveness internally that is leading things like this to fall through the cracks. Janine, great to have you.

Thanks for your initial thoughts to the earnings release. Janine's stick to her BTIG. And we should note the stock is at after our recession lows down by about 9.7%. So we'll certainly be listening to that conference call and keep you posted on that. Meantime, take a look there. That's Chicago. Basebo. Closing bell about to happen.

ending the regular day of trading four options. There you go. Well, Netflix today is saying goodbye to Chairman Reid Hastings. Also saying goodbye to an eight-session losing streak with a three-cent gain. We'll take a look at where those two events leave the stock right now. You're watching closing bell overtime, live from the NASAC market site. Ahead of tomorrow's jobs report, new May data from Challenger Gray and Christmas paints a softer picture of the labor market. Layoffs increased by 16% versus April, marking a third straight monthly increase. Tech accounted for nearly four. 40% of all job cuts. That's the highest monthly total for the sector since last August. The firm also says more than 87,000 layoffs this year have been tied to AI, already surpassing all of last year's total. Economists are expecting a net gain of 80,000 jobs for May in tomorrow's official data. I think some of the estimates are up toward 100,000. So it would be a consistent picture of a firmer labor market. The layoffs numbers, sometimes you have to kind of slice through them. It's announced layoffs.

Sometimes it just means general position eliminations, headcount reductions. And some companies, I think, want to portray things as a result of their AI adoption. So we don't really know. The other piece of it is the job openings numbers were very strong for business services and things like that. This week, of course, that's April data. So it's a mixed picture for sure. But it does seem as if companies are pretty headcount aware at this point. and they want to keep things pretty tight going into this summer.

And you have to think the consumer is very aware of this too. I mean, that's the thing. I mean, what's interesting about this is that, you know, we get so many aggregate numbers in terms of, you know, readings on the jobs market, such as tomorrow's report. But this really gives you, granted, with all the caveats, a much more granular look at where the layoffs or the expected layoffs are happening. And it is happening in technology.

These are higher paid jobs, presumably. And the impact on the economy could actually be pretty significant. Yeah, there's absolutely no doubt that anybody who's coding for a living is feeling it for sure. And there was a bit of an uptick in weekly unemployment claims this morning, too. Well, it is an end of an era for Netflix. Co-founder and former co-CEO, Reid Hastings, will no longer be on the company's board starting tomorrow. This afternoon will mark his last annual shareholder meeting. The sock ended higher today, although just barely.

Breaking its longest losing streak since November of 2022, the stock is now down, around 13 percent this year. year is down 40% from its 52-week high. Today, Bernstein reiterating its outperform rating on the stock calling it a durable engine, saying it could rise more than 60% over the next two to three years. Didn't do much, though, to help the stock year, which has really been beleaguered since the last earnings report. It has, yeah. I mean, it had this big rebound after it walked away from the Warner Brothers Discovery acquisition. Really cheap, I mean, I think relative to its own history, it's down at a market multiple around 22 times forward earnings. And it's the kind of stock is, you know, Charles Candid was just saying that sort of steady, high return on capital,

you know, sort of compounder type business. Market doesn't want much of those anymore. It's those feel too defensive for a world where, you know, you're seeing, you know, revenue numbers go up 80% in these hardware names. Also, the narrative on Netflix might have changed a bit, particularly after walking away from Warner's Brothers' discovery. And if you think they were doing a deal for a reason, then they walk away and they don't have a grand plan as to what is next, then growth investors who have been in the stock might think, you know, What is next? We don't know. It's true. It's more of the same. They're already the incumbent, and, you know, growth is long. Well, shares of continuum, Quentinium, closing the day flat after raising $1.6 billion in an upsized IPA that priced at $60 a share.

The quantum computing company is a spin-off from Honeywell, which recently got a $100 million investment from the U.S. government to develop a supply chain for quantum chips. The sector overall has been doing well in the last month. INQ up 44% Raghetti at 36% D-Wave Quantum of 32%. What do you call this, Mike, the sector where you squint and you look out into the future and you're hoping? Yeah, exactly. That's where you put the money. No, that's right. The little specs on the horizon and it's going to be kind of magic at some point.

I mean, it is one of the next big things potentially. I think one of the arguments has been, is it going to be some of these smaller startup-y, you know, kind of penny stocks that work? Or IBM, the former home? Honeywell, Google, which has had a quantum computing skunk works forever, are they going to come up with a commercialized version of what this is always? And IBM certainly has seen that run on the back of this, on this hope, and this notion that they are going to build a foundry for quantum chips. Yeah. So we'll see where that. Yeah, they're going to keep making.

We'll see if it becomes cost effective, and that's down the road. Well, coming up, shares of Tyson Foods have been slumping over the past week as a parasite threatens to drive up beef prices. Up next, we'll talk to the CEO of Ilanko about. how big a problem this could be and the possible remedies. Closing bell over time. Be right back. All right, welcome back. Now to that story that's gotten everyone talking,

a flesh-eating screw worm arriving in the U.S. Pippa Stevens has a story. So how worried should we be, Pippa? Well, Mike, this is the first case in cattle in the U.S. since 1966 found in a three-week-old calf down in Texas. Now, the industry had been preparing for this for more than a year as the screwworm slowly moved north through Mexico. Strict protocols have already been implemented to contain the spread,

including a roughly 12-5-mile quarantine zone around the animal, as well as an expedited, targeted release of sterile screw worm flies. This comes after cattle futures hit a record last month. The U.S. herd size is at its lowest since the 1950s, while consumer beef demand has been very strong, pushing up prices. Now, this is not a food safety issue in animals that recover from screw worm can enter the food supply. But you do have to wonder if this could curb consumer appetite a little bit.

For the time being, this remains an isolated instance, but the industry is on alert. I just spoke to Dr. Bernard Hodges, a vet and cattle owner down in Georgia, who told me when he graduated from veterinary in school more than two decades ago, they said screw worm is something you are not going to see, and now, lo and behold, it is here. Now, I know that you're now the expert, chief screw worm correspondent, but for people at home, I mean, this is a fly.

and they call it a screw worm because of the larva, the larva basically twist its way into the flesh in order to consume. Yes, it is a very unpleasant parasite. And so unlike other parasites that, you know, that feast on dead flesh, this is feasting on live flesh. And so really the containment in the first couple of days is really important. And so this has been a problem going back decades. You know, we think back to the 1930s. And what you would do is you would inspect your herd every single day during fly season to be aware of what's going on. And in this calf that it was detected in, it was around the umbilical cord. So that is an open wound. So it is visible. You can catch it. And so that's a really important measure. But then from a ranching perspective, that does increase your cost. You know, you have to be out there. Maybe you have to hire extra help. You have to be monitoring this. And so those first couple days are really key. And right now it very much seems like it's all hands on deck. And everyone is now, you know, in position to fight this. We have a new facility coming online in Texas to release 300 million more of these flies every single week starting next year. Exactly. The emails only meet once. Exactly.

Yeah, they only made once. And that was discovered back in the 30s. So this goes back a very long way and that, you know, the STI was first implemented back in the 60s. So there is precedent for this, but definitely on high alert right now. Pippa, thank you. Pippa Stevens. While there is no vaccine for Screw Worm, there are three companies that make treatments for it, including Zawettis, Merck, and Alonco.

Joining us now is Alonco CEO, Jeffrey, great to have you with us. Great to be with you. Thank you. PIPO is just saying how this is something that we haven't seen for decades. And so I'm wondering, you know, in terms of your company's response, you know, how much demand is there now? And were you ready to go to meet demand? Yes, we're ready to go in a real call out here to Secretary Rollins, the USDA, the cattle industry, all the livestock industry and the animal health industry. I think it was November of 2024.

We started this initiative working together, private, public, partnership. to be able to prepare. It was probably more of a matter of when, not if. This is hard to contain, but it is manageable. And I think it's what was just shared is very important. This is not anything about the food safety. The safety and the quality of our food supply is sound. It's as good as anywhere in the world. And the American farmers have a hold of that. And this is a good coordinated effort overall. And we are prepared. We do have the largest portfolio of products for livestock and pets and we're prepared. And APHIS, the USDA is actually creating a stockpile today to get the right supply closest to the cases. And a great effort's already initiated. But again, this has been

over a year in preparation. We are ready and I have confidence. The other thing is this has been going on in Mexico, other Latin America countries. We've got facilities there. Our products that we're here in the U.S. we're using there. So we've been battling this challenge down in Latin America, South America for some time. You mentioned so that you're prepared, you know, the authorities have been on this. Are ranchers prepared in the sense that they already have the treatments on hand, the products that you make, or is this now going to be a matter of everybody has a precaution going out to stock up?

It's a great question. We've coordinated our supply chain as well as other companies, so to have the products enabled and not just with the USDA, but with all of our supply chain and cattle. We've been in Elenko's been serving the U.S. cattle industry for 70 years, and our supply chain is there. And some producers, yes, have maybe enabled supply. Others are getting ready, depending on the proximity of where they are. And really, on a cattle operation, there's three things, or it's highlighted earlier. It's monitoring, monitoring, scratches, cuts, bites, wounds, anything, any surgery. And then it is implementing a protocol to manage, you know, the ticks and flies.

that are on that operation. And lastly, just mobilizing a lot of cross-collaboration on communication right now. The Texas Cattle Association, the NCBA, do this extremely well. And that's what is happening right now. What stage of response are we in, Jeffrey? Can you give us an idea? You know, there's one calf that was, you know, officially confirmed with the case of screwworm. So are we instill in the preventive measures? And if that's the case, do we use some of your treatments that that kill the larvae, for instance, and the flies? Yeah, most of the treatments are our treatments. So you're going to lean in on when you need that.

I think what the USDA has done with the fly program does mitigate. It does slow. And then we've got the best monitoring, you know, anywhere. We've been monitoring in Mexico as it's moved towards the border. So we're in the early phases. I think the prevention mitigations are going to continue. We will have our treatments ready to go. We've mobilized our veterinarians in Texas to be there to enable and, you know, the USDA as well.

So we're prepared, we're ready, and we'll continue to monitor this. This is manageable, and I'm confident we'll do that. And I will also bridge this to say this impacts warm-blooded animals and pets as well. And I just want to call out Blanco's been approved the first conditionally approved product for treatment, Cordelia O'Quatro, of New World Screw Worm. just highlight for pet owners to do the same. We believe in 12-month, you know, flea-and-tick-worm programs. This product, Crenelio-Quatro, is used monthly as an oral dose, and it prevents and it treats. And I encourage all pet owners, dogs and cats, to also be on that 12-month

flee-and-tick heartworm programs. It's absolutely essential or get to your veterinarian. I think that's very important. This screw worm can impact as small as even a tick bite. It can actually create that infestation. And we want to make sure all pet owners are taking care of as well. Yeah, I'm sure. Many of them were wondering exactly that. Jeffrey, thank you so much for coming on. Jeffrey Simmons. Thank you. Time for a CBC News update with Kate Rune. Kaye. Hey there, Mike. Kennedy Center officials today ordered employees to remove President Trump's name from that building. The Washington Post now reports The Center's General Counsel ordered all references to Trump to be removed from signs, brochures, and other materials by June 12th to comply with the judge's order.

Last week, a federal judge ruled the Kennedy Center's board exceeded its authority by adding Trump's name. Meanwhile, the Pentagon is reportedly expected to cancel a plan to send Tomahawk missiles to Germany. That is according to Politico, which says the decision is in part due to concerns that Russia would view it as an escalation and because of the shrinking U.S. stockpile over the war with Iran. The deal was originally made during the Biden administration and comes as Germany is trying to monetize its forces amid Russian aggression. And finally, an unbelievable sight over on Everest, a Sherpa who was missing for six days on the mountain with no supplemental oxygen, food or water was found alive as he was crawling back to base camp today. The 52-year-old hiker was then airlifted to a hospital in Kathmandu where he is said to be suffering from exhaustion and severe frostbors.

on his hands, guys. Unbelievable. Back over you. It is incredible. Kate, thank you. The SpaceX IPO is just about a week away, and broken firms are rolling out the red carpet for its roadshow. We've got a live report coming up on Closing Bell Overtime. Welcome back to Closing Bell Overtime, live from the NASAC market site. Big jump for the doubt today, of 875 points. The S&B 500 with a small gain, the NASAC does slightly in the red.

Broadcom weighed on tech following its earnings and guidance last night, but money moved into health care and financials, big game. in United Health and Goldman Sachs. In the meantime, Lulu Lemon falling after its report, it beat for the first quarter, narrowly topping lowered estimates, but its guidance for the second quarter in full year well below what the street was looking for in both earnings as well as revenue. That stock down 10 plus percent.

We're also watching a big decline in guideware, guide wire software, I should say. Earnings, 8 cents better than expected revenue topping the estimate as well, but the company missed on gross margins and its annual recurring revenue, a key measure for software companies, right in line with the estimate. 15%. Well, from silver rockets and lobbies to branded turnstiles and samplcasted presentations, Wall Street banks are going all out to tout a participation in the massive SpaceX IPO. Leslie Picker is live inside J.P. Morgan's headquarters as they prepare to pull out all the stops to pitch SpaceX. Leslie.

Hey, Mike, yes. In about 90 minutes time, this room at J.P. Morgan's brand new headquarters in Midtown Manhattan will be filled with some of New York's top investor. On this stage behind me is going to be J.P. Morgan, chairman and CEO, Jamie Diamond, and other executives from the firm. Plus, SpaceX leadership will also be here to talk about the IPO. And that conversation will be broadcast to about 90 locations across 26 states. But as you mentioned, guys, Wall Street is pulling out all the stops. We took a tour of everything here, which includes space artifacts like moon rocks and sculptures. There are 40-foot rocket installations in the elevator banks, and they have some branded merchandise like this SpaceX bomber jacket I have in my hand here. It says all systems go. It's only been about five or six hours since the books opened for retail investors, which are expected to comprise about 30% of the allocation of this $75 billion IPO. I'm told that the fixed price that they set, that $135 per share, has been easier for retail investors to understand versus the typical

price range that you usually see at this stage. In the roadshow video posted online SpaceX giving some future projections indicating significantly higher revenue growth and much wider margins. Guys. Yeah, I noted that that video that has been making the rounds a little bit, Leslie. It's fascinating how the industry has essentially decided to use this as a big marketing opportunity. Now, naturally, it's a way of, as you say, broadcasting a firm's participation in all this. I guarantee there are people, a lot of people who are clients of J.P. Morgan in wealth management and private banking that have owned SpaceX a long time. And they're looking for this as an exit as other clients are saying, give me a piece of it. Yeah, that's part of it too. Obviously, if you've owned it pre-IPO, you are locked up for some period of time.

There's a kind of a stair-step approach in terms of that lockup. It's looser than your typical 180 days that you might see in an IPO like this. Elon Musk himself is locked up for about a year. after this company goes public. But you're right, this is a big marketing opportunity. And there's a lot at stake, too, guys, because we have, you know, this is the first in what is expected to be three massive trillion-dollar-plus valuation IPOs that we could see within the next year.

And so, you know, this is something that we've seen for a long time at the New York Stock Exchange and the NASDAQ with all of the branding and making it, you know, a party and a whole thing. Now that is definitely extending to Wall Street. and it's something that is important for their business in this year that is expected to be, you know, one for the record books in terms of IPOs. Important for their business, but how about their reputation, Leslie? I'm just wondering, it seems very unusual for them to actually sort of pump an IPO for the CEO to be out there sort of touting it in some way. Does it sort of cross the line, I mean, ethically for them to do that? Well, I think the investment banks, their job is to sell IPOs. And so that is kind of a piece of this. You've seen, you know, reports out there about David Solomon, you know, direct messaging Elon Musk over X in order to kind of sweeten the deal to win the mandate and so forth. And so I don't know how unusual it is. I'm not exactly sure, you know, what will be discussed on this stage tonight. I'm hoping to have a better sense of that later. The invite only event is definitely closed to the press.

but there are about 2,000 people who will be watching. But I don't think it's that unusual for them to be kind of selling the deal. That's kind of part of the job. All right. Leslie, thanks. Leslie Picker. Well, another example of how the SpaceX IPO is changing all the rules. Today, Fidelity is saying it will lower the minimum account requirement for the SpaceX IPO from half a million dollars to just $2,000, which really opens a door for most people who have an account at Fidelity to participate. Exactly.

I wonder if they needed to move towards, since, you know, the likes of Robin Hood and other retail brokers are going to be part of this, that maybe they felt like they had to come in align with what they might be offering. They know they're going to have clients clamoring for this. Exactly. And you had a great point. It could just be marketing, you know, I'll open a fidelity account for 2000 to have access to SpaceX. Right. Or even client retention for that matter. They don't have to go elsewhere.

All right. After the break, is the market rally sustainable or will be a face? Well, we face a summer swoon. and we'll take a look at the charts for some answers. If we had to break, here's a look at some stocks, sitting all-time highs in the transport sector, CSX, J.B. Hunt, Old Dominion, and United Rentals. Welcome back. Strong earnings season and AI infrastructure spend continue to boost the market this quarter. The S&P 500 up 15% in just the last two months, with the tech sector up 42%.

So is the market rally sustainable or could investors see a summertime swoon? Joining us now as macro risk advisors, head of technical strategy, Kolovis. John, good to see you. I mean, you've basically been kind of saying, look, let the market do what it's going to do. It's going to levitate to a fair degree. Are we at any kind of inflection? Well, getting pretty darn close, right? So you think about the last couple times I was on and even a couple years ago thinking that the S&P will get up to around that 77-75-ish area by midterm elections. Well, that's kind of where we are right now. So we're at a level now where there's a confluence of resistance levels that has me really on edge. Okay,

So we have a price perspective. We also have a momentum issue. We have divergences with the RSIs. When you have a divergent with RSIs, it means the uptrend is mature. It doesn't mean it's fully matured. It's going to roll over tomorrow. We also have exhaustion signals in demarks and Elliott waves that say, hey, this upswing is prime for that summer swoon. We're just waiting for that to happen.

I would say, you know, a pullback underneath the 7,500 area you get underneath there, then I would say, okay, we got the trigger. The summer swoon is starting to develop. What does software look like? It looks now like we have full participation across the software sector in terms of the swing upwards. Yes, software is definitely improved on the charts. A couple things. One, about two weeks ago, it broke out of what is known of a broadening bottom, a broadening base. The target for that was 107, which is exactly where it stopped. Also, it's at this resistance level from the December highs of last year. It has pulled back since. So what I'm looking at here is a few things. It's improved, but is it escape velocity? No, not yet. I have to see how it pulls back. I have to see. see how it pulls back, the IGV that is. If it gets down to around the 100-ish level and maintains it, that's okay. But the other thing is, it's on a relative basis versus semis. It's only like two days off of its relative low. It hasn't really outperformed at all. So until the relative

trend really sustains itself, I don't think there's going to be a lot of institutional demand for software stocks in aggregate, because long-onlys follow relative trends. They have the majority of the money into the market. So that has to do it. And the last thing I would just say is is that when it comes to software, not really getting any confirmation from things like Bitcoin. Yeah. Now, talk about that relationship

a little bit and why you think it could be talent. Yeah, so I kind of use this as like a variation of Dow theory, right? So when you have an index, like the industrial, as you look at the transfers for confirmation, right? You need an economic reason for it. For software, Bitcoin has correlated quite

closely with it up until the last couple of weeks. Bitcoin's chart is awful, right? It just just wants to work lower and lower. The property looks like maybe a 40 handle before it moves up higher, all else equal. However, software is ripping. Software's retraced two-thirds of its bare market. Bitcoin barely got a third of it. That's not right. So the economic connection is that they're both disruptors, but one is leading. So I'm kind of getting the sense that this last push up higher, why I'm here the hesitation in my voices, I think it was very retail. I don't think it was institutional

at all. So seeing an extension to like the 75 retracement level is quite normal for extension targets. So seeing it back off, I think is quite normal. How will you know if that correlation is broken for good? That Bitcoin won't track software anymore. Yeah. I mean, we'll get the acceleration. We'll just see it. I mean, it's one of those things. You know it when you see it kind of things. And that's one thing that we kind of learned in business schools like, oh, correlations are important, but they come and go, right? And it's quite possible that this was just a major head fake that Bitcoin really has no route through through anything except for maybe risk sentiment, which in turn may be reflecting some of the hesitation beneath the surface in the S&P. Like, yeah, I guess it means at new highs,

but most stocks are not. So maybe Bitcoin is still capturing something better of sentiment, and maybe that's why it's still working below it. If we do get this crack in the S&P 500, do you think it can be rescued by one of these, like, magical broadening trades like we had in the fall? It needs to. Well, it comes back to the macro, right? So this is like a broken record time. Yields need to hold, I'd say, 440. Oil needs to hold 86. If that holds it, then maybe you have a fighting chance for that, I don't know. I am hesitant to make that call quite yet. So, yeah, things have to go perfect. Yeah. Gotcha. John, thanks. Good see you, John. Thanks. Up next, we'll hear how one company is benefiting from the AI spending craze. Losing Bill Overtod. Be right back.

We are continuing to hear about sticker shot from companies when they get their AI bill. One company's helping them better balance that usage. Kate Rooney has that story. Hi, Kate. Hey, Mike. So companies really used to budget around more predictable software subscriptions, but AI spend is proving to be a lot more volatile. It's often measured by tokens. And once an employee or even one of these AI agents starts using it, costs can spike unexpectedly. And Ramp is one of the companies helping try to rein in some of that AI spending. That has been fueling investor interest in this private company. It's expense management company raising new funding today. Just announced that value in the company at $44 billion. I did speak to CEO Eric Lyman earlier, he said, budgeting for AI is really confounding a lot of CFOs. Suddenly, you have this third pillar that has showed up, which is spend through tokens and intelligence that is actually both doing works. And it's not a clean area of spend. Token certainly cost quite a bit of money. And most CFOs not only didn't plan for this in their annual plans, the steep growth, but don't have great tools to manage this. One issue, guys, is that the

labs like Open AI Anthropic, at least according Derek Gly. I mean, he says they're not incentivized to push anyone to the cheaper options. He said you might want the best models to run some critical analysis, but not to necessarily edit an email. There's also a fleet right now of cheaper models out there emerging. You have the open source models. And then recent ones, we heard from Microsoft this week. Google also going to that arena, trying to compete on price. And that is where they are increasingly trying to win is on cost, guys. Yeah. And I guess, Kate, I mean, just the backdrop of how how fast this is all grown at a time when supply was constrained, right?

So, you know, if you're the model providers, you're kind of rationing access in a way. And you have to, I guess, do that through price. It reminds me of data usage in the early time of mobile communications, right? Where everyone was obsessed with how many minutes do I have, how many more, and then eventually it became all you can eat. It's a great point. I think minutes is the perfect analogy when we talk about tokens in AI. I think one of the things that's interesting that Eric was talking about as well was sort of the

change from just the traditional software subscription model. He also mentioned Ramp does a lot of his expense management, so they have a good window on what companies are actually spending. He said the AI spend that we're seeing, even though it's high, it's volatile, it's unpredictable, it's actually not cannibalizing software spends. So it kind of flies in the face of what you've seen in public markets and some of the hit to software. So far, he says it is actually not.

eating into software budgets when they look and talk to CFOs about that. It's interesting. And he also mentioned that token maxing debate where there's employees trying to use as many tokens, burn those to try to seem like they're productive. He said companies are wising up to that. He said it's a twilight on token maxing. That's slowing down and they're not, employees aren't getting away with it anymore. Kate, thanks. Kate Rooney. Let's get you set up with tomorrow's trade today. No earnings reports tomorrow, but we do get the jobs. Report economists are expecting a rise of 80,000 non-farm payrolls, the unemployment rate

expected to say unchanged at 4.3%. We're also expecting consumer credit and natural gas mineral company White Hawk Minerals will begin trading tomorrow at the NYSC. Well, we want to take one more look at Lulu Lemon. It is now down close to 11%

and near the lows of the after hour session, of course, after giving some pretty weak guidance both for the next quarter and for the coming year. And I was looking at the price here goes back like eight years. I mean, that's when we first got to about 111 bucks for that stock. All right, that's going to do it for overtime today. Fast money starts right after this quick break.