Closing Bell - Closing Bell Overtime: Stocks Power Higher to Fresh Records 5/6/26

Episode Date: May 6, 2026

Markets push higher on the back of AI momentum and a fresh wave of earnings. Melius Research’s Ben Reitzes examines whether the semiconductor trade can keep running as momentum builds across the space. Tom Hancock of GMO joins to break down how to play a market increasingly driven by AI concentration and where he still sees opportunity including semis, mega cap tech, healthcare and payments. Earnings results from Arm, DoorDash, Snap, Zillow and AppLovin shaping sentiment across tech, housing and consumer platforms. Yie-Hsin Hung, CEO of asset-management giant State Street Asset Management, discusses the growing push into private markets and what it means for investors. Jeremy Wacksman, CEO of Zillow, breaks down the state of housing and the company’s outlook as the stock faces pressure this year. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

How about the gals? When it's try and close back above 50K, doesn't look like we're going to get there, though. See the tomorrow brings. Send it in overtime. We do have some earnings coming with Mike and now. The bells bringing in end to the training day at the NYSC. No Kid Hungry, doing the honors.

And at the Nazak, realloys, closing out the day. Welcome to closing bell overtime. We're live from Studio B at the Nazak market site. I'm Melissa Lee, along with Mike Santoli. It was a risk-on rally today with S&P NASAC and Russell hitting all-time highs. Nazak up 2%. S&P up about 1.5. SEMI is a standout once again on the back of strong earnings results from AMD.

We'll hear from ARM in just a few minutes. A drop in oil and bond yields also giving a boost to equities following some positive developments on Iran peace talks. We're going to have more on all of that just ahead. On our radar at the close, a seemingly unstoppable semi-surge, a surprisingly resilient economy, and betting on beef. We've got to talk to this rally. I mean, we had a sniff of a cease, not a ceasefire, but the end of the war. and look what happens. Exactly. I mean, this is a market we should remember that bought the rumor of a ceasefire. It bought the ceasefire. It had continued to buy the continued kind of stalemate

part of the ceasefire. And now we have marginal incremental developments that look like they might be positive. I think one thing the market did, of course, is rely on the AI trade for about five or six weeks. And now it's a little bit, it's broadening out, but it's still so dominated by semis up five percent today. I think you have to keep that. One reason I think the market has been, able to kind of gather strength through what is now a historic six-week rally is it's not up that much on a six-month basis. So you have to keep in mind, we had this base. We're up like six percent on the S&P 500 since the high of the fourth quarter in October. So that shows you that we haven't really gotten escape velocity yet at the same time. Some stuff's crazy inside the market. And the

vertical movement, semi is number one. Since the low during the war, semis are up 40-something percent. I mean, it's been nuts. Invidia finally participated today. That was interesting. And also this the old sort of the better AI is, the more dead software is kind of trade took effect today. It did. We did see SaaS names and the IGV under some pressure today. Software making new relative lows. Absolutely, Microsoft can't get out of its own way. I'll also point out Bitcoin didn't do anything. Maybe it's now kind of a risk-conscious trade. Robin Hood kind of lagging. So there were a little pockets there. Also, the VIX's unable to get below 17 on a day when we're ripping higher.

Maybe because we're up so big. But I do think all that makes you sort of wonder. if we're starting to run on some fumes on this very short-term part of this rally. Let's get to Sima Modi for a look at today's big movers. Seema. Melissa and Mike, yesterday it was Micron. Today it is AMD that Wall Street cheered following the company's blockbuster sales forecast. The company revealing its new lineup of CPUs over the past couple of months, and that's certainly winning back investor confidence.

It's been a banner year for the stock in general, quietly winning back. Again, expectations and confidence from analysts as well. Get this, since the March 30th low, AMD has more than doubled since then, while Nvidia is up about 25%. Elsewhere, Uber said trips jumped 20% year over year and upped its booking guidance, seen as a relief to investors, given the heightened geopolitical backdrop, shares ending higher by 8.5%. Hyper-scalers, big tech, in general, all enjoying sizable gains, helping fuel the NASDAG once again to a new record high. But not all tech traded up. Take a look at Skyworks, seeing its worst day. in over a year on concerns over demand and the indirect impact of higher memory prices, shares ending down 10%. Melissa, Mike.

Seema, thank you. A big driver of today's rally was positive developments on a potential peace deal with Iran. Megan Kassel is at the White House with the latest. Hi, Megan. Guys, there's definitely a fresh dose of optimism here today around the possibility of a deal between the U.S. and Iran. The U.S. proposed a 14-point peace plan, and the Iranians say they're evaluating it. That also comes, as there's been a real real. shift in tone here from administration officials over the last day or so appearing to lean away from the idea of resuming military combat. But guys, there's also no indication yet that the Iranians will agree to anything the U.S. has laid out. And the president himself said in the last hour or so

that while there have been good talks, he says over the last 24 hours, he says they've also had good talks before. And then all of a sudden the next day, he says it seems like the Iranians forgot what happened. So as for what's included in this proposal, the president said this morning that Iran would export its highly enriched uranium to the U.S. That's something that has been a red line for Tehran in the past. Trump also said Iran would agree not to operate its underground facilities and would operate in goodwill for a long period of time. He did not include any specific timeline there.

So one key point here, guys, is that the negotiations for now are focused on a one-page memo to end the war. Then a 30-day clock, according to reports, would start for negotiations on more difficult issues, including Iran's nuclear program. So in a sense, yes, there's a lot of optimism. today, but even if today's deal is agreed to, it could simply push things further down the road. Guys. Megan, thanks. Megan Casella.

Arm holdings are out. Let's get the numbers from Christina Parks and Nevels. Christina. Well, Arm beat on earnings, 60 cents adjusted versus 58 cents expected, and revenue came in just above estimates at $1.49 billion, which was a record quarter for the company. The segment mixed, though, tells a little bit of a different story. Royalty revenue missed, which lines up with the handset in DRAM. memory shortage concerns analysts had flagged heading into this print, but licensing more than offset

it suggesting strong demand for the ARM platform. The Q1 guide is roughly in line on revenue, but the EPS guide of 40 cents came in just above the 36 cent consensus. On the data center CPU that ARM launched just this past March, management says customer demand across fiscal 2027 and 2028 now tops $2 billion, more than double what they cited at launch just six weeks. weeks ago. Data Center royalties more than doubled as well year over year, and Arm says it now holds about 50% CPU compute share among the top hyperscalers, possibly a negative for Intel named D. And the company reiterated its $15 billion chip revenue target saying data center revenue will soon become its largest business. The stock, though, ran up about 91% just in the last

three months. Share is selling off a little bit over 3% right now, guys. All right, Christina, thanks. parts nebillus. Oil taking a leg lower on those developments out of Washington today, but closing off the lows after a double-digit percent move lower, Pippa Stevens has that for us. Pippa. Hey, Melissa, WTI did close well off the low of the day, which was 8866, but still down sharply on the session on perceived progress on a resolution. Now, we did just get the latest inventory report that showed U.S. energy exports did decline a bit last week to 12.97 million barrels per day, but that is still well above 2025's average of about 10.5 million, and probably, products, those hit a record 8.22 million barrels per day as countries, especially Asia,

previously dependent on Middle East exports, look elsewhere for fuel. Now, here in the U.S., gasoline inventories are now at the lowest level for this time of year since 2014. That's according to ING. The administration also pausing Project Freedom, which was the initiative to guide ships through Hormuz, in a move that BIMCO, that's the largest international shipping association, called a surprise, saying changes at short notice are a challenge for ship owners. and French shipping company, CMA, CGM, confirming that one of its vessels was the target of an attack yesterday while transiting Hormuz resulting in injuries among crew members and damage to the vessel. Guys?

Pippa, thank you. As oil sold off, bonds rallied as yields fell. Rick Santelli in Chicago with more on that. Hey, Rick. Hi, Mike. It is amazing how the markets grab into the news even before, of course, the details are finalized. It really does show an underpinning. of a strong economy in the U.S.

And don't forget that prior to the conflict, literally the day before, we had cycle-low-yield closes on the Treasury complex, which means if we see peace breakout, maybe we'll revisit those. Look at a two-day of twos and tens, clearly big moves. No curve implications, though, Mike. Tews and tens each down about seven basis points. But when you look overseas, and believe me,

global sovereign rates drop, They were mostly led by short maturities, flattening their yield curves due to the implications of potential higher energy prices and how that may affect their central banks. So here's the guilt in the UK, the booned in Germany. These are their two-year maturities, and boy, they dropped aggressively. And finally, the dollar index. You know what risk gone? The flight to safety aspects that existed in the dollar index quickly diminished. If we stay below 9805, as we are now barely, it will be a 10-week low close. It will be the lowest closed since the day before the war broke out. Mike, Melissa, back to you. Rick, thanks, Rick Santali.

Got to get to DoorDash earnings they are out. McKenzie Segalis got those numbers. Mack. Hey, Mel, so it's a mixed print for DoorDash with those shares up almost 10% now. The company posting earnings of 42 cents per share, a 6 cent beat on that. but it was a miss on revenue, $4.04 billion for the quarter, falling short of the $4.14 billion street estimate as total orders were light. That's a contrast Uber this morning, which reported a stronger delivery quarter. Now, the key metric here for DoorDash is Marketplace Gross

Order Value, and that was only a slight beat, $31.6 billion versus the $31.5 billion estimate. Profitability was better with adjusted EBITDA topping estimates, though still below the high end of DoorDash's own forecasted range. And then looking ahead, Dash's Q2 guidance was basically in line, GOV of $32.4 billion to $33.4 billion, with the adjusted EBIT of midpoint slightly below consensus. Now, one thing to watch, DoorDash says its Dasher gas relief program will cost more than $50 million in Q2,

which it plans to partly offset by pulling back investment elsewhere. But still, those shares up 9.5% after hours. Back then. I was going to say they've been weak, and obviously people braced for a little bit worse than that, at least on first blush. Mack, thank you. Apluven earnings are out. Simam Modi has the numbers. Mike, Abloven for the first quarter delivering a 16-cent beat on earnings, revenue two coming in ahead of consensus at $1.84 billion.

The street was looking for $1.76. And if we look to guidance strong for the first quarter and second quarter when looking at EBITDA, so the companies guiding higher than what the street was expecting, the earn. earnings call begins at 5 p.m. Eastern, and the main focus will be on the company's competitive positioning in the mobile gaming advertising market. The stock down about 30% year-to-date on these broader displacement AI fears. Stock higher, though, on this report, by around 7% in overtime. Guys, back to you. Seema, thanks, Sima Modi. Let's get to the headline story today, and that would be the big rally in chips. AMD taking the spotlight after last night's earnings.

It ended the day as the top stock in the SMH-ETF and the NASAC-100. Intel, Invidia, Micron, moving higher on the back of AMD's gains. Spoke pointing out that the market cap of stocks in the Philly Semiconductor index was just 6% of the S&B 500 market cap in October 2022. That's pre-chat GPT. Now it makes up 22%. So could the semis trade be getting stretched or is there still more room to run? Joining us now on set, Ben, writes us from Mellius Research.

Ben, always great to have you. Thanks. It seems like there is a case for the re-rating of semis. Even higher from here? I mean, you're even saying some of the memory makers could be two to three turns higher from what we've already seen. Well, absolutely. I think that the game has changed. I mean, we have companies now completely willing to subscribe to memory, do long-term agreements, and put visibility on memory like we've never seen before. And we do think it's worth a few more turns. The memory is critical to AI. It makes AI better. The more you use memory, the better your AI gets.

It's that simple, and agents are causing it to explode, and it's becoming as important as like the CPU. And some think it's going to rival a GPU in importance. So we think those go higher. Sandus, Micron. We launched a week and a half ago. I think they're up huge amount and still like them. I mean, big picture, I like to dial back and say basically what's been going on is the biggest companies in the world are taking like 10 years of their retain. earnings and just spending it and dumping it out. And it's going into the earnings of all these

other companies. I just wonder how sustainable it is to have those hardware companies, the chip makers, and even though maybe what had traditionally been lower value added parts of chips, kind of command much higher returns from this AI investment trend than the company's building the models even. This is the greatest wealth transfer in history that you've ever seen. I know people say that some stockbrokers say it about generations. That's nothing. This is the greatest shift of wealth where you're taking the operating cash flows of these hypers and pouring it into semis at a rate that's like, you know, one for one. I mean, almost. And it's insane. It's going to continue for a while because the Tam here is labor. Okay,

labor is tens of trillions of dollars. Now, it's not all going away. It'll be either augmented or replaced. And that's the return. And it's tens of trillions of dollars. So the hyperscalers see it. The smartest people on earth are the people that work at these companies. And they all see it and they're going for it. And they're willing to sign long-term agreements on CPUs, memory, GPUs. And they're not doing it for charity. They're doing it to make money long-term and even survive. And they feel if somebody else gets it and they don't, they're left out. This is going to continue. This is the one. This is the one for the ages. We bet our whole career on this a couple years ago. And software, you know, is going to continue to get eaten and some of the other things because we are tokenizing labor in the form of a new form of software that is going to revolutionize the world. And we, I don't know what inning we're in, but we just start. Is there a way for software companies to save themselves? Some are moving towards a work-based model instead of a C-E.

based model. Is that possible? Do you see that transition being successful? I think whenever you go through a paradigm shift like this and you go through a transition, it's really tough because when SAS started, actually Adobe went down every day for about a year or two. Ask them. It was painful. And nobody knew it was going to come out the other side. And it's so easy now. He goes SaaS. It's so valuable. But back then, early in the 2010s, we didn't know what the heck was going on. That same thing is going to happen now in software. All the companies are going to go to consumption, some layer of license, some layer of consumption on top. And then there's going to be startups who just start with consumption and disrupt them, sometimes with five people, sometimes with

10, sometimes with a lot of people. And it's going to be very disruptive and it's really just going to be touch and go. Yeah, by the way, this is the live picture in Chicago at the CBO Fidelity Investments, ringing the closing bell there, marking the end of the trading day for the options market. AMD, I mean, you mentioned some think CPU can rival GPU, and they, Lisa Sue today on our air, kind of increased what she believes is the TAM. At these levels, I mean, the way it's valued right now, how much runway is there? Well, the way it's valued is semis are a perception of what the long-term earnings power is. And it's so you may look at a P and go, oh, that looks expensive, like Intel or something.

But that's not how it's trading. I mean, Intel and AMD trade on future earnings power, maybe perception a year or two out. And the narrative on AMD is moving from $20 towards $30. And if it moves towards $30, you know, a few years out by the end of the decade, this stock's got a lot more to run. We just put our target at 500. I mean, that could put it, though, at 600 pretty quick. So they did a great job, raising margins, raising TAM, raising GPU guidance long term. Stock's going to work.

And you still like Nvidia? We still like Nvidia. Big catch-up trade here. Invita, Nvidia, because it hasn't moved, and they're going to beat and raise, and there's a catch-up to be done. Ben, great to see you. Thank you. Thanks a lot. I'm very much to see you guys. All right, well, so if the tech trade stalls, are there other drivers that can continue to push these markets to new highs? Joining us now is GMO U.S. Quality ETF portfolio manager, Tom Hancock. Tom, it's good to see you. Let's just start right there. I mean, it's a market that has seen to be just fixated on one

prevailing theme, that's where a lot of the upside earnings revisions are happening and all the rest of it. How do you either play it or sidestep it or look elsewhere to what's being neglected? Yeah, we're definitely trying to play it, not sidestep it. I think we want to be a little bit cautious. There's a lot of froth out there, but there's also a lot of what I call AI beneficiaries.

It really aren't caught up in a lot of froth. Microsoft, to make the obvious one, the biggest stock in our portfolio is just coming off a period that was biggest downturn draft since 2008. And they have a lot of great non-AI exposure, but we see them as being a winner in AI as well. They have, I think, moving away from that dependence on open AI is going to be a good thing for them. So that's only one AI stock we like.

Another AI stock we like a lot is Taiwan Semiconductor. They, of course, get a lower multiple because of that overhang of Taiwan risk, and that's a real risk. But if all of Nvidia's chips are made there, it's not a risk that's you mean. neat to them and you get pretty well compensated in terms of a lower multiple. So those are two examples of things that we like in the AI world. But yeah, we're seeing a lot of opportunities elsewhere, you know, healthcare. We're seeing some stuff in Staples, the Visa and MasterCard, Uber, we saw have a great report this morning. So those are the examples, even some software company. So

there's a lot out there. We're probably about as excited about when we think of as high quality opportunities as we've been in quite some time. Just to drill down on Microsoft, since it is a top holding, we were just talking to Ben Wrights, about the SaaS trade, the difficulty software stocks have had because the notion that, you know, the stronger AI gets, the more displaced software will be. Microsoft is AI, but it's also software. I mean, that's the core of the business, Tom. So how do you sort of, how do you reconcile that?

And Broadcom is diversified, but maybe to its, go ahead, sorry. Yeah, Broadcombe is going to say it's another stock in that category. where close to half its profits come from software that people don't talk about as much. But we haven't really seen any evidence of AI disrupting and entrenched software companies yet. So far, it's really just a story. And I would say there are a lot of advantages

about being built in with enterprise customers. A lot of these software companies, these are the ones we like. They have a lot of proprietary data. In some cases, they have regulatory lock-in. Some of the more vertical software names have rules. domain knowledge, it's kind of hard for a new AI system to come in. So we're actually pretty

optimistic around a lot of the software space, certainly not everything, but just the breadth of the sell-off and that kind of speaks to us that this is a matter of panic rather than people actually analyzing the companies one by one and really identifying losers. So we are kind of playing both sides of the trade and that we have AI and software, but I don't think those are, you know, conflicting views because I think software can win at the same time that AI wins. Well, while we're talking about stocks that have, you know, been seen as potentially disrupted time, I was interested to see Visa MasterCard are a couple that you like as well. Now, here you have a little bit of an overhang of potential regulatory changes in addition

to whatever people think AI means for the payment networks, but how do you view them? Yeah. Well, first off, the long-term transition of cash to card is going and still going on around the world. So there's this basic. tailwind, and these stocks are at 10-year multiple lows. So that's a good place to start. The regulatory stuff like caps on credit card ratings, interest rates, that seems very unlikely does to happen. A lot of the fintech disruption or potential disruptions, really systems that live on top of the existing payment rails. I think sometimes people look at the amount of money that is charged for a card swipe, and they think of that as a profit pool to be disrupted. But really a lot of

that is financing either card benefits that the users love or financing just the float, the free loan that's involved with credit. So there's not really that much to disrupt and that big a profit pool to disrupt. And these companies are pretty entrenched everywhere. So we see them kind of about as invulnerable as any companies out there. All right. Tom, great to speak with you. Thanks, Tom Hancock. Snap results are out. Let's get to them. Company reporting a loss of five cents a share, although we are not competing. carrying the number to the estimates. Revenue coming in as expected at 1.53 billion. Daily active users beating expectations coming in at 483 million, but average revenue per user came in weaker than expected.

Second quarter guidance was in the range of 152 to 155 billion, roughly in line with estimates. Snap saying it has ended its relationship with perplexity. The sock is down by about 3% after hours. Wazillo, just reporting earnings Q1 adjusted EPS of 53 cents, beating estimates of 46 cents. Revenue also coming in high. than expected, but Q2 profit guidance was light coming up. The CEO will break down the results in an exclusive interview before dialing into the call with analysts. Plus, the CEO of State Street Investment Management, one of the world's largest asset managers, on her outlook for both the public and private markets. You're watching closing bell overtime, live from the NASDAQ market site. Beef prices are hitting record highs as the U.S. cattle herd shortage continues to drive up

input costs, averaging around $7 per pound. In the earnings report this week, Tyson Food said sales at its beef division fell 14% year over year as consumers are shifting away from beef to chicken or pork as cheaper alternatives. But it's not just beef. Food inflation overall remains high due to rising import costs due to the war in Iran. Kraft Heinz saying today that it raised prices in some categories to offset higher input costs, warning of inflation risk. Now, Archer Daniels Midland rallied this week after raising its full year guidance as grain prices rose. Higher oil prices have pushed other commodities higher like soybean oil and Cotton both hit new highs earlier in the week impacting oil seed processors like Bungie Global

and Archer Daniels. I mean, I just, if you look at the chart watchers work, they all love this group. It seems like it's emerging from a long base. You could look at it in an ETF form, the moo or also ADM and Bungi. So it feels as if the market is kind of shifting over to this higher for longer goods inflation type of the story. It's higher nominal growth. and it's not just energy-specific.

And this looks like, at least the stocks are saying it's not going away quickly. It's not just the shortages that are being felt in things like fertilizer, but it's also just the crop conditions. The conditions have been terrible. And so some farmers are even saying, I'm not going to bother buying the expensive fertilizer to put on crops and have no hope. So we're going to have a bottleneck there in terms of just enough feed, and that will then feed into, no pun intended, higher prices for.

Yeah, and just the whole disruption with shipping. global. Things should be fungible around the world, and they're obviously not as much as they normally are. Well, from food to weight loss, Nova Nordis closing higher today after reporting first quarter sales jumping, 32 percent, the company hiking its 2026 full year guidance, thanks to increase expectations for its GLP1 products. It is expecting adjusted sales and profit to contract between 4 to 12 percent on a currency adjusted basis. That's lower than its previous projections. Compared to Eli Lilly, Nova Nordus is vastly outperforming in the last two months. months, up 19% while Lily is flat. There is somewhat of a disappointment surrounding the launch

of Lily's oral weight loss pill, and then also the valuation discrepancy between the two. Novo is about half of the valuation of Lily at this point. Exactly. It had gotten really wide, for sure. Yeah. Now, how quick are these iteration cycles? In other words, does Lily have a near-term opportunity to catch up and kind of counter any of this? Well, it'll be interesting because they haven't even launched a full-scale direct-to-consumer ad campaign yet. That happens in the third quarter. So once they start plastering subway trains and billboards in Times Square with advertisement for Fondaio, which I think a lot of consumers are not familiar with, it's not the Ozempic pill. They didn't choose the name off of Mungero. They chose a new name for the pill.

There has to be sort of this new sort of educational push. Once it happens, you know, we don't know. Yeah. So it should be interesting. A counterpunch. All right. Well, up next, a breakdown of some encouraging economic data and whether the impact of high oil prices and supply chain issues is being avoided or just delayed. Plus, new evidence from Disney and Marriott that the American consumer may not be as cash stopped as feared. Details with closing bell overtime returns. Away from the geopolitical news and the AI theme, the macro is actually held up pretty well in terms of U.S. domestic economic data. Take a look at the city U.S. economic surprise index.

We got a pretty strong EDP Private Payrolls report. today adding to this. So remember, when it's above zero, it means the economic numbers are coming in better than forecast. And you're pretty close to the upper end of a two-year range here in terms of the pace of positive surprises, which one reason I'm assuming the market's been able to handle kind of higher treasury yields and depletion of expectations for Fed rate cuts. Now, one way that it's kind of manifest, if you take a look at the industrials versus the consumer discretionary sector, this is both an equal weighted basis, they were moving very much together coming in. into this year, both these cyclical bellwether sectors. And then you see industrials really benefiting

and outperforming based on that Cappex cycle. It is a Cappex over consumer market right now. And equal weight of consumer cycles definitely feeling the pressure from higher gas prices and lower real disposable incomes. Now, they did pop today, the discretionary up about 2%, but there's a pretty big gap here. So is a read-through then that the City Surprise Index is doing well or popping higher despite the consumer feeling the drag? To some degree, yes. Now, remember, it's relative to forecast. And so a lot of it is overall GDP type data. The ISMs have improved. Hiring was expected to be almost nil, and it's been slightly better than that. So it's not as if things are so strong in terms of momentum on a macro front. But I do think you could also ask the question,

are we seeing somewhat stale data here? Because you haven't necessarily seen the full effect of a few months of supply chain and energy prices. patients. We've got a newslet we want to get to on Anthropic. Kay Rooney has that for us. Kate. Hi, Melissa, so we're here at Anthropics Developer Conference in San Francisco. Dario Amade, the CEO of this company on stage just now is saying that the company has seen 80x growth. Here's what he said. We saw, if you were to annualize it, 80x growth per year in in revenue and usage. And so that is the reason we have had difficulties with compute, right? We've planned for anything from it only grows a little to it grows 10x, and yet we saw 80x.

And so, you know, as you saw it today with the SpaceX compute deal, we're working as quickly as possible to provide more compute than we have in the past. As you heard, guys, that exponential growth, as you said, is the reason they have had difficulties with compute highlighted that SpaceX deal. We heard about that this morning with Anthropic. Anthropic is getting access to Elon Musk's Colossus. One data center in Memphis, Tennessee, says that will directly improve capacity going forward, says that they are also working as quickly as possible to provide more compute than they have in the past

and says we will continue to do that. So maybe expect more deals in this space says he's going to pass that on to you, meaning the developers here in San Francisco as soon as they can. And finally, a mention of Mythos, Cybersecurity, model from Anthropics, Daniela Amade, his sister and co-founders up there as well on stage, said that they're going to be careful about how they release that and described it as a complicated dance. She said, we want to get things right. We want to get them out quickly and release the most powerful models responsibly, guys. Back to you. Any comment, Kate, about the report that the

government wants oversight over these models before they're released? No, it was a very friendly moderator that had a product so she didn't get into the, uh, that, that, headline, but fascinating one. And they did not speak about the White House avoided that topic other than a very, I would say, diplomatic answer on mythos saying we want to release it responsibly, but we didn't get any big headlines on that, Mel.

Okay. Okay, thanks. Okay, Rudy. Time for CNBC News update with Angelica People's, Angelica. Good afternoon, Melissa. Last month, Meta platforms and YouTube lost a landmark jury trial over the design of their platforms and the potential harm to users.

Today, META asked a judge in Los Angeles to throw out the verdict or grant a new trial. In the filing, META argued that it was protected from the claims by Section 230 of the Communications Decency Act. That law generally shields online platforms from liability over user-generated content. Federal prosecutors in Boston today unsealed charges against 30 defendants alleged to be part of a decade-long insider trading scheme that led to tens of millions in illegal profits. prosecutors say the defendants include corporate attorneys and other financial professionals. They are alleged to have used confidential information from some of the country's biggest law firms on almost 30 million in deals. And in sports news, the professional women's hockey league added a ninth franchise today expanding to Detroit next season. No name for the club yet, but the team colors will include red and white in a nod to the NHL's Detroit Red Wings.

Guys, back over to you. All right, Angelica, thank you. Up next, a rare and exclusive interview with the CEO of State Street Investment Management, who oversees $6 trillion in assets. We'll get her take on the market and what is set to be a mega year for IPOs. Welcome back to closing bell overtime live from the NASDAQ market site. Stock's rallying today with tech once again the leader. The NASDAQ and S&P closing at record highs with the NASDAQ up 2% on the day. As we discussed, the semi-stocks were the breakout with the semi-ETF SMH hitting a new record. Intel, AMD, Broadcom, and Micron, also at all-time highs.

Industrial is also a standout up more than 2.5% as Uber, GE Aerospace, Cummins, and Rockwell all jump more than 5%. Some after-hours moveers to highlight the whirlpool moving lower as revenue comes in light. The company saying the war in Iran resulted in recession-level industry declines in the U.S. as consumer confidence collapsed in late February and March. Shares down about 17%. Cybersecurity company Fortinet jumping in. after hours trading. EPS revenue and billings beating estimates. The company raising its full year guidance as well. It is up almost 12 percent. Software company fastly falling close to 30 percent

after hours. While it did beat on EPS and revenue, network services revenue came in light. Well, we just mentioned those record highs. We were seeing ETF inflow surge and risk appetite build at the same time. Investors dealing with a complex geopolitical backdrop and a new Fed chair set to take over in the coming week. joining us here on set for an exclusive interview on all this and much more Safe Treat Investment Management CEO. Yishin Hung, she oversees nearly $6 trillion in assets. Yishin, great to have you with us. It's great to be here.

What have you noticed, particularly in the past couple of weeks, in terms of flows, and also the kinds of products that investors are demanding right now? You know, it's very interesting. In beginning of the year, there was much more interest in moving overseas into international markets, into the broader market. that has shifted almost entirely. It is a risk on an environment. So U.S. equities is gathering the lion's share of flows in this last month, followed by very small flows into fixed income, but not a lot overseas. And what about in terms of, I mean, I know you have kind of a mix of asset class, active, passive,

all the rest of it, where within that looks like it's most right for attracting investor money now? You know, the trends have continued where about half the flows are going into low-cost, index-oriented strategies. Active ETFs are really picking up a lot of steam, and that's taking a variety of forms, whether it's fundamental or derivative type of strategies. And that's maybe a quarter of it. And then the balance is pretty much everything else. What do investors want in terms of ETF exposure? I mean, you just launched a private credit ETF just about a year ago, which seems to be interesting timing, given all the concerns about private credit recently and about Gates, etc.

I mean, how is investor sort of perception and uptake of this particular product been over the past, let's say, six months? It's been very good. We launched a product just about a year ago. It's almost near a billion dollars in total size. It's gathered quite a deal of interest. And, you know, private credit obviously has been in the headlines a lot, focused primarily on direct lending, so the non-investment grade sector.

this ETF is very much focused on investment grade. And that's where there's ample supply. And we're also seeing really good quality private credit paper coming in. The performance of the ETF has really delivered exactly what we expected in terms of its peer group, which tends to be in the core plus space. You're getting the plus from the private side and then even on an absolute basis. So we've been really pleased about that. And, you know, broadly speaking, you know, this year is already, I think, 600 billion of flows into U.S. ETS.

So it's set up to be close to a $2 trillion year, which is going to be the third year of record ETF. How do you make the case to an investor or an advisor that the ETF is the correct vehicle to own things like alternative assets? Yeah. Well, it isn't the vehicle to own every alternative asset because what we have to be very careful of is daily valuation. the interday liquidity, and we felt investment grade was the right arena. And this product is also crafted where there's a very big public component to it, call it 70, 80%, 20% in privates. But at the end of the day, ETFs trade incredibly well, right?

The liquidity is mostly in the secondary market. So you're not necessarily looking at the underlying investments for liquidity, and that's what I think makes this vehicle so interesting and attractive. How do you make the case that an ETF from State Street is superior to an ETF from someplace? I mean, there's so many ATF that compete against each other. Does it just boil down to expense ratios? I mean, how much is the pressure on this industry to get those expense ratios down even more, even though they're pretty low as they are?

It really depends on the use cases. You know, we're very well known for our S&P 500 ETS, and we have two in particular. One, which has tremendous trading volume. It is magnitudes relative to its. peers, huge derivatives options environment. That's for those that are really trading very actively and want that total transaction costs to be very low. Now, on the other hand, if you're looking for a buy and hold, we also have that equivalent at the lowest base point out there. So it really depends on the use case what investors are willing to pay in terms of fees. As a huge index

manager, I've been fascinated by this anticipation of these very large IPOs and a lot of lot of talk in advance of trying to maybe speed their way into some of the indexes. I mean, how do you feel about that in terms of whether the liquidity effects or the quality effects of some of that activity? I mean, obviously, these companies are massive companies. If you look at just the handful that are privately owned, likely to go public, probably evaluations anywhere between $3 and $5 trillion. So, you know, these are substantial companies. I'm like, perhaps if you wound the clock back 10 years, 15 years ago. So it makes sense to be in included in the indices.

But I think what people fall, even if we have to weigh certain things that have been in place for a long time. The sheer size and impact on the economy because if you look at that market cap, let's say it's $3.30, it's 5% of the S&P 500. It's hard to ignore. But at the same

time, the IPOs aren't going to be a hundred percent public float. They're likely to be 10, 15%. And the indices are constructed based on a float-adjusted market cap. So even if we saw all of them go public, it's maybe half a point in terms of his representation in, say, the S&P 500. So it won't really move the needle as much as the sheer size of these companies. All right.

Yishin, great to speak with you. Thank you. Thank you. Yishin Hung, State Street Investment Management CEO. Up next, the CEO of Zillow breaks down his weaker than expected guidance on the outlook for the housing market, which keeps facing headwinds from higher interest rates and building materials. cost. Stay tuned. You're watching closing bell overtime. Dillow, the company reporting an EPS and revenue beat, but the stock

falling in after hours trading as Q2 profit guidance was light. Purchase Sloan origination volume did see a nice jump to $1.5 billion. Joining us now in an exclusive interview before the earnings call is Zillow CEO Jeremy Waxman. Jeremy, good to see you. Talk a little

bit about the environment you're facing in the current quarter. Yeah, great to be here. Thanks for having me. Q1 was great for Zill revenue up 18% year every year. As you mentioned, mortgages are a bright spot up 56% year every year, and rental is growing 42% year over year. And the environment you asked about, you know, the housing market relatively flat, barely any growth in Q1 and we're not seeing much relief ahead in Q2. Okay. And so that's what accounts for a little bit of the cautious guidance,

I assume, in the current quarter. I have seen some numbers firming up, at least, you know, here and there in terms of turnover volumes. And the other hand, prices coming down. So do you have a forecast of how that might play out the rest of the year? Well, for us, it's important to put Q2 in context, right? Q2 revenue guidance expectations, 16% at the midpoint, again, against that flat, expected housing market. Costs coming in maybe a little bit lower than, or a little bit worse than folks were expecting in Q2, but look out at the full year. We're on track for our full year goals. Mid-teens revenue growth for the full year, EBITDA margin expansion, and end income growing even faster. It's just that the shape

but the cost curve in the quarters looks a little different this year than prior years. To your question on the housing market, I think the challenge continues to be one of affordability. We're seeing very modest gains in transaction volumes this year in the housing market. The uncertainty in the macro, I think, is keeping buyers on the sidelines. You saw a slower start to the housing market this year than many folks were expecting. But the good news for Zillow is we're able to grow right through that, right? We've been outgrowing the housing market for the last three years now. You saw that, do that again in Q1, and we're expecting to that again in,

Q2. I'm wondering, Jeremy, in this world of AI, you know, how much you are spending on technology, how much you're investing in it, and how you see AI, because I can go into any search engine, say, show me houses in Great Neck, New York, under a million dollars, and it'll list a bunch of houses, and I'll click on it, and it might be Zillow, it might be Redfin, it might be someplace else. Yeah, AI, we think, is a tremendous tail win for the real estate category. It's going to digitize, the entire transaction. And that's what we're doing here at Zillow. 80% of our traffic comes directly to us.

Those folks don't come to us because of a search query. They come because Zillow provides a transaction platform. We don't just help them find homes. We help them get free-approved for mortgages. We help them book tours. We help them virtually tour. We ultimately help them find their agents, message with their agents and closed.

That's what drives our business. And that product offering is one that we think gets better and better with AI. The content that we have at Zillow, the context on those buyers and sellers we have at Zillow, and then integrating all that together to help consumers actually take action. So yes, the queries will always come from various sources, but the reason so many buyers and sellers come directly to us and use our products and services is we can help them actually move, help them buy and sell and rent. What part of that kind of food chain do you own? What's proprietary in terms of your

relationships there? Yeah, so Zillow has the most content in the category, right? We are the only ones that have this broad measure of rental inventory, existing home for sale inventory, and new construction inventory. And increasingly more of that content is unique to us. More than 10% of existing for sale listings now have Zillow's proprietary rich media. The 3D home tours, the interactive floor plans, the drone sky tours. That's not just a better buying experience, and it isn't just something that helps sellers sell their home faster. It's also something that helps make our AI more intelligent and more capable. All right. Jeremy, great to speak with you. Thanks.

Jeremy Wachman, Zillow CEO. Up next, we'll run through what will be another huge hour of earnings tomorrow. Closing Bell overtime, live from the NASDAQ market site. Be right back. Let's get you set up with tomorrow's trade today on the earnings calendar. McDonald's, Shake Shack, Tapestry, TripAdvisor, and Unity Software Report before the Bell. And then it'll be a huge hour of earnings after the Bell, Expedia, Airbnb, B, Win Resorts, Corweave, Coinbase, Affirm, Block, Draft Kings, Lift, and Toast, all set to report during closing bell overtime. Interesting, we'll see more of a consumer sort of tilt to this next round of earnings.

For sure, a lot of kind of battleground debates in those numbers over travel, over consumer, over crypto, and things like that. So, we'll be interesting. I guess we'll get jobless claims as well in advance of the official jobs number. I've also started to see a lot of the speculative stuff really run today. Just one thing to note, quantum up. 5%. Space stocks at 5%. See if the fund continues tomorrow.

It does it for overtime today. Fast money begins right after this quick break.