Closing Bell - Closing Bell Overtime: Stocks Sink to End Week; Fed Drama & AI's Corporate Impact 8/29/25

Episode Date: August 29, 2025

PCE data drives bond market reactions analyzed by Rick Santelli. Kristina Partsinevelos sets market themes while Unlimited’s Bob Elliott provides weekly market perspective. Eamon Javers and Steve Liesman team up on Lisa Cook hearing coverage and Fed reaction with analysis from Global Situation Room President Brett Bruen. Mackenzie Sigalos examines AI's expanding impact up the corporate ladder, followed by an on-set conversation with Gecko Robotics CEO Jake Loosararian about data -- "AI's dirty little secret." SentinelOne CEO Tomer Weingarten discusses quarterly results and cybersecurity trends. Vital Knowledge's Adam Crisafulli rounds out the show with next week's key market catalysts.

That bell marks the end of regulation. New York City Parks Department ringing the closing bell with the New York Stock Exchange, D-Fi Development, doing the honors at the NASDAQ, and it's a down day for the markets. The Dow is off about 125 points, I believe, S&P 500, down about a percent, nearly. NASDAQ getting the worst of it falling about one and a quarter.

InVIDIA pulling back 3.5% after its results on Wednesday. Now, today's losses drag all three major averages into the red for the week, but not too far. And since this is the last trading day of the month of August, let's look at how it's going out. Gains across the board, the Dow, the biggest gainer has got something of a reversal throughout the month, but check out the Russell 2000 up 7% in August. That's its fourth straight monthly gain, longest windstreet since 2021.

Gold, also a big winner in August. We've got somebody who likes gold coming up. Right now, trading just below the all-time high of 35, 34 an ounce. It's set earlier this month. That is a score caught on Wall Street, but winter state late. Welcome to closing belt overtime. I'm John Fort. Morgan Brennan is off today.

President Trump takes his problems with the Fed to court today. A hearing on whether he can fire Fed Governor Lisa Cook. We're taking a closer look at the public perception of that situation. Plus shares of Sentinel 1 rising after reports last night of its earnings up 7%. The company's CEO, Tomar WynGarten, is going to join me coming up. Also, we'll be joined by the CEO of Gecko Robotics. He's got a different take on the impact. AI than what you might be hearing.

But let's start with these big numbers, a 1% drop for the NASDAQ, 3% for NVIDIA. Christina Parts, Nevelas. What's going on? I want to start with Nvidia. I have to. Solid earnings, but fell like you said, 3.5% anyway. Data Center sales came in bit light. There's still that China overhang. It's a classic case of good news was not good enough, and it has an outside impact on markets. Investors, though, are looking past the

chips to the connectivity layer. Companies like Astaire Labs that build the high-speed data highways between chips are just having their moment instead this week. Estera Labs just a few weeks ago posted record revenue up 150% from last year. CRETO, and that's also why you're seeing other names like CRETO and connectivity names like Lumenum outperforming NVIDIA this week as investors really just target the plumbing between AI chips.

Dell also validates this AI infrastructure boom, doubling its AI server forecast to $20 billion for fiscal 2026. The problem is, margins are getting squeezed as they really just duke it out with Super Micro and Asian manufacturers who will take any deal to win market share. That's why shares closed over 8% lower today. And then there's Marvell sitting this party out. Their data center business missed estimates at $1.5 billion and their guiding flat for next quarter. Management calling it lumpiness in AI sales, but that's not what investors wanted to hear.

Shares close almost 19% lower today, really. The AI Gold Rush is real, no doubt. It's shifting from who makes the chips to who connects them all together this week. And right now, everybody's fighting so hard for deals that profits are just taking a little bit of a backseat. John? For sure. Christina, thank you. Well, let me revisit the Dow here. It actually closed down less than 100 points.

A little rally there into a close. Think about 92 points. Now, let's turn now to the bond market as the latest reading on inflation comes right in line with expectations. Rick Santelli. Scott more on that from Chicago. Hey, Rick. Yes. John, it's the tale of two different maturities when it comes to treasuries.

The first maturity I'll discuss is the long end. If you look right now, everything above a five-year note yields are higher, even though all maturities yields are lower for the week. Why is that? Because the long end, 10-year, 30-year, they looked at the notion of not inflation moving down, but growth moving up. And where was that growth moving up? Point four on income.

half a percent on spending, up three-tenths on real spending. These are really good numbers on the personal income and spending. But the short end, most closely associated with the Fed, it was looking at what was going on that would affect the ease that's coming up in a couple of weeks. Look at a two-year note chart. And what you should notice is it made its first low yield when it saw there was no surprises on the personal PCE inflation number. Then the next chart, well, this chart, you can see.

We've basically touched this 360 area recently. We touched it in April of this year. We touched it last September. So basically, you see that we have this long-term downward pressure on two-year no yields. And that really is, whether it's the growth is pretty good, but the labor market is questionable in the Fed's eyes. Inflation doesn't seem to be a problem,

and the yields are moving down. So what did that do to the Fed expectations? Well, right now, these Fed Fund futures, you see that one week chart there, the higher it goes, more easings built in. And right now, it's got almost a 90 percent, closing in a 90 percent chance that on the 17th, we're going to get a quarter point ease. So the curve has steepened. And this type of steepening is a good type of steepening. Long end likes growth, short end likes that the Fed can still ease with the combination of growth and less inflation. John Fort, back to you.

Sounds like we can have a weekend then. Rick Santelli, thank you. Well, let's stay on the market, bring in Unlimited CEO and CIO, Bob Elliott, the gold bug I mentioned before. But let's start with the Fed and what's going on there. You think Powell's caving? Well, I think basically when you look at the change in his statement at Jackson Hole versus where he was just a few weeks before in the presser,

it seems like there was a pretty material shift in the positioning, particularly getting to a focus on. on the labor market. I mean, I don't know how many times of the last presser. He basically said the labor market's strong. It's tight. There's nothing to be concerned about. And then all of a sudden he changes his mind. But we got those jobs numbers right after that, didn't we? And those revisions too. Yeah. I mean, those job numbers, I think most people who follow the jobs numbers would have expected some revisions that are not that far off of what happened. And remember, the Fed traditionally focuses on labor market tightness, meaning the unemployment rate. And that's remained relatively

stable because of the, how to describe it, the curious slowdown in labor supply at the same time that there's been a slowdown in labor demand. And so if the Fed was really focused on its traditional mandate, the unemployment rate, there wouldn't be much to do here. I think the main thing that is a notable shift in the reaction function is focusing on the overall growth rate in jobs rather than focusing on tightness. So what's the impact on equity investors then and how much is riding on that next jobs number due a week from today? Well, I think for most equity investors that are really hoping for these cuts to come, the type of numbers that are going to deliver the Fed cuts are probably not the type of numbers that they're going to be happy with from a

growth perspective. Look, if we start to get, you know, very low or even negative prints in jobs, which is what Waller suggested earlier this week, looking at some timely numbers, that's a pretty bad environment for equities, particularly as they continue to press. near all-time highs. And so I think that's the basic tension that exists here, which is that the cuts may come, and that may be good for the economy over a longer time frame. But it may not be good enough, fast enough, for the equity market that's expecting strong growth ahead. What did you think of these inflation numbers? Well, I mean, who cares about inflation anymore? The only thing that matters is jobs, right? I mean, I think that's basically what Powell said

in the Jackson Hole speech, which was essentially, no matter, what the inflation numbers are, at least for the next year, while tariffs are on the table, they're looking through those numbers. Well, that's what Powell said, but look at Caterpillar, look what Gap is saying about the impact of tariffs on pricing and on their profits. What should investors take away from that about what to expect out of these companies and out of the economies in the quarters to come? Well, I think the main concern for equity market investors is that that rising inflationary pressure as the tariffs sort of, you know, are going through the Python out the end to face consumer prices, to raise consumer prices, is that unless consumers are

increasing their incomes, which, you know, with a weak labor market, they're probably not, that basically has to come, that higher prices has to come out of real spending. And so we've seen a pretty weak consumer. I agree today's data was marginally positive, but if you look over the course of the first half of the year, consumers were already spending on a real basis about half the pace that they were in the previous two years. And so if inflation passes through, we see prices rise and consumers don't have more to spend, that's probably going to hit real consumption. And real consumption really is the backbone of the whole economy. There's only so much this economy can do without

the, you know, consumers consuming. Curious, what we get in Q4 then the holiday season. We'll talk about gold, if you will. What's the function in your portfolio? Does it change at all under these conditions? Well, I think gold's really proving out that of all the assets that you can hold to protect yourself against, let's say, interference in the Federal Reserve and the devaluation of the dollar that's inconsistent, let's say, with overall economic conditions. Gold's the only asset here. You know, you look at the board today and you basically say, you know, gold is proving itself as a contra currency as concerns about the Fed rise. And, you know, things like cryptocurrencies, which are claimed to be digital gold

are pretty clearly showing themselves as risk assets, to be clear as they have time and time again. There's only one gold and that's the yellow metal. All right. I know you love it. Bob Elliott, thank you. Thanks. Have a great weekend. Well, coming up, we're going to get the latest on President Trump's effort to fire Fed Governor Lisa Cook, but we'll also

ask the questions people on Wall Street and Main Street are asking, should government officials be held to a higher standard? Or do we just have to accept that even Fed officials and politicians aren't perfect? Overtime's back in two. Welcome back to overtime. President Trump wants to fire Fed Governor Lisa Cook.

Does he have the authority? A court will decide, and the process began this morning. Amen Jabbers has details. Amen. Hey there, John. Yeah, the court hearing today ended inconclusively in the sense that the judge here did not issue a temporary restraining order or any other legal action to stop the president from firing Lisa Cook from the Federal Reserve Board. There you see Abby Lowell, Lisa Cook's attorney, leaving as.

after the lengthy hearing, about two hours of debate about the president's authority to fire people for cause. What does for cause mean is really at issue here? One of the discussions, John, that they got into here, was the question of motive. And that was one of the rare places where we saw agreement in this hearing, more or less. What the government said is it doesn't matter that the president has said it's a good thing for him to have a vacancy to fill on the Fed. It doesn't matter as long as the underlying allegation is there. We saw the president at this cabinet meeting earlier this month, and the president said that he wants a majority. And here's what the president said in the cabinet meeting.

He said, we'll have a majority very shortly on the Fed he's referring to. Once we have a majority, housing is going to swing and it's going to be great. People are paying too high in interest rates. That's the only problem with housing. We have to get the rates down a little bit. So the Department of Justice said, look, the president can be happy to have a position to fill here, but that doesn't bear on the underlying allegation or his authority to fire or not fire. And interestingly, Abby Loll here, the lawyer that you just saw on your screen, conceded that the president could have what he called a bad motive.

He said presidents can have a bad motive, and he put a little dig in there by saying, and especially this president could have a bad motive. But the underlying allegation stands as cause. So the question now is, what does four cause mean? That's going to be up to the judge here to decide. She's expecting some more filings early next week. We may get a decision on this in relatively short order next week in terms of whether she issues some kind of injunction to stop the president or lets that firing go forward, John.

Back over to you. All right. Amen Jabbers, thank you. Now let's turn to the Fed side of the equation. The attempted firing with Cook is the latest attack on the Fed from the president, Steve Leasman with me now, Steve? Yeah, John, I'm going to say Fed officials and investors are watching these Cook proceedings with the same questions. Is this a big issue where Fed independence is at stake, or is this a one-off limit to the specific mortgages and alleged wrongdoing of Fed Governor Lisa Cook?

Here's the bigger view that the President has hounded the Fed to lower rates repeatedly. The President has asserted authority to fire almost anyone who he deems his executive. exercising executive authority. And administration attorneys argued today, as Amund just said, that for cause is broad, linked to the president's judgment of the ability of a person to do the job, but not a policy disagreement. In that case, the Fed independence could be at risk. Depending upon how the judge rules, the president could end up with substantial authority

to fire Fed officials, quote, for cause, and that could mean without any due process. But the Cook case can also be seen in smaller terms. Cook has issues surrounding three mortgages. We know that to be true. She has not explained these issues, and the firing could just be limited to a Fed governor with obvious issues. In that case, Fed independence is less at risk. Even if Fed officials and investors see this as small, there are still potentially big

implications unique to this presidency. Cook's firing would give the president a four to three majority on the board. Depending upon who he picks, these officials could end up having less loyalty to the Fed as an independent institution, and more to the president. and his desire for lower rates. That may be the case, no matter what the judge decides. Given the public relations, it could be difficult for Cook to stay in office unless she sufficiently answers the questions about her mortgages.

Even then, the diary ready may be cast. So next stop, the Senate and Senate banking, and especially Senate Republicans, and what criteria they demand of one or John now, potentially two new Trump nominees. And I'll just say one thing, John, I've been hounding all week, this issue of the administration did not ever question, as far as we know, Lisa Cook. And the judge made a pretty big deal of that. And I'd say if she does get some relief, it could be because of that failure

on the part of the administration. If she doesn't, it could be because she never really made her case. It seems there's another interesting aspect of this, at least for me. And we have this whole idea right now of what cancel culture is in the Internet era. There's so much more information that's findable about everyone.

And you can shape public opinion much faster in the age of social media. So is it possible to, in a way, invent cause for the cases that you want to? Does cause mean something different, I guess, in this environment than perhaps did a couple hundred years ago? I don't know if the judges are going to consider that or how much that bears on Fed independence, if perhaps for anyone, whether it's a real estate issue or a mortgage issue, perhaps the president can find cause.

Yeah, I mean, that was a huge, it was a big argument of the Cook camp today and in her filings that there, it's an allegation until it's proven. And then as we talk to Scott Alvarez, the general counsel for the federal, the former general counsel for the Fed, he told us, look, if the, if the four cause is untrue, there's no cause there. And one other very interesting note, John, that perhaps viewers should now make sure that they are checking Twitter on a regular basis. The judge was a little incredulous that the administration argued that Cook was informed of these charges through a tweet. And the administration argued she had five days after the tweet, actually, in some cases, a half an hour because you remember Bill Palti put up that information. And then a half an hour later, the president stepped forward and said, she should be fired. The administration said, hey, she had five days after this was public on X to respond. And the judge was like, wait, you're saying that's a response?

So we are very much, maybe, John, in this internet age here where a tweet is notice. What a world. Steve Leesman, thank you. So with all these developments, can Lisa Cook survive, Trump's ire, keep doing her job? Joining me now is Brett Bruin. He is the president of public relations firm Global Situation Room. Brett, this is a unique historical moment. No president has attempted to do this.

Do you think Cook has a shot at keeping this job, should she? Well, if she does, it may depend largely not on what happens in that D.C. courtroom, but in fact, in the Court of Public Opinion, John, and that's where I think, you know, it's interesting. It was mentioned that she has not been publicly responding to these allegations. You know, even if she cannot, I think it's important. And certainly what we're telling clients who face these kinds of accusations is you've got to have somebody, an ambassador, an amplifier, a validator, that's out there speaking on your behalf that's informed about the issues, because right now we unfortunately really just have one side of the story, and that is not a complete picture in terms of what the facts are here and certainly how this issue is going to be litigated in the court of public opinion. The court of public opinion is interesting in this situation to me because it's not convened equally in all situations. The defense secretary Pete Hegeseth certainly has had some issues with his confirmation, and then with this signal

controversy, the president stands by him, though some might argue, some in the public have argued, that he behaved in a way that was inappropriate. But in this case, with an institution that's supposed to be independent from the executive, it's a bit different. How do you parse that? Well, you know, what's interesting here, John, is it does seem to come down to a few political figures. And what we saw, for instance, with Matt Gates, is that there were certain senators that came out publicly and said, look, this is beyond the pale. Even if we support the president, we cannot have someone who has these kind of allegations out there. With Higseth, it seemed like we might get there. And yet, you know, with a number of key senators, it just didn't cross the

line. And so I think, you know, once again with Lisa Cook, it comes down to a few key political figures. If we hear Republican senators, certainly those, you know, on the Senate Finance Committee and others saying, hey, this may not be good for the economy. This may not be a precedent that we want to set. And John, I think that's an important one to keep in mind, especially as we head towards next November and the midterms. What is the kind of precedent that Republican members of Congress are going to want to be setting here? Huh. So this sounds like something different than what we thought of independence meaning before when we talked about the Fed. Public opinion and the president's unique ability to bring that to bear, no? It is. And yet, look, the president does not have

a monopoly on this. And, you know, I was just on a client call earlier where I was saying, you know, we've got to account for the fact there has been a lot of shock in awe over these first nine months, but the dust is going to start settling. So for investors, obviously also for members of the Fed. You know, it's important to look at the months ahead. We've got elections in November. That will be a barometer, one that could take a lot of air out of the president's sales. So I think, you know, the smart investors, the smart officials are going to be looking beyond the horizon

to understand what's going to happen with the president's bully pulpit three, six months from now. Okay. Brett Bruin, thank you. Sure thing. Coming up, we are tracking some of the day's big movers. We're going to tell you why our first. firm is soaring and we'll talk to the CEO Sentinel One about his company's quarter. That's being cheered by analysts at least six price target hikes. Overtime, we'll be right back. Welcome back to overtime. Shares of Caterpillar, the biggest drag on the Dow today, down about three

and a half percent, accountable for nearly all of the Dow's point losses. The company increased its estimated tariff impact to as much as $1.8 billion for 2025. Those tariffs on steel and aluminum imports, as well as the tariffs on products from various countries are going to weigh on Caterpillar earnings. Well, it's time for a CNBC News update with Julia Borsden. Julia. Hi, John. Secretary of State Marco Rubio says he's handing over the role of acting USAID administrator to budget

director Russ Boat. In a social media post today, Rubio said, Vote will oversee the agency's close out with most foreign assistance stopped. Vote will serve as agency head amid several lawsuits. against the agency's closure. The Trump administration likely acted unlawfully when it ended protections for 600,000 Venezuelan migrants. The three-judge panel of an appeals court

unanimously voted today to uphold a lower court ruling to keep the protected status in place while the case continued through the courts. The Department of Homeland Security said the ruling, quote, undermines the integrity of the immigration system. And ride share companies Uber and Lyft agreed to back a California bill that would allow drivers to unionize and collectively bargain. Governor Gavin Newsom said today the ride chair drivers will remain classified as independent contractors, which he said would empower drivers while making the services more affordable for residents.

Back over to you, John. All right, Julia, thank you. Well, shares of Ambrella soaring nearly 17% today as its results beat estimates and it raised guidance. to strong AI demand. And while AI has unquestionably been great for the stock market over the last couple years, concerns remain. For people, well, AI take our jobs. For companies, will the investments pay off in productivity and then profits. We will examine those issues coming up on closing bell overtime. Welcome back to overtime. Stocks closing lower for the day, dragging all three major averages into the red for the week, but August still going into the books as a positive

month for the markets. A 3% decline for Invidio weighing on tech today. Dell and Marvell also with significant declines. Golds higher by 1%, getting close to its record high. Bitcoin and Ether both falling for the day and the week, and we are two-thirds of the way through the year. S&P 500, up just south a 10%. Any gains in the next four month and 2025 will be the third straight double-digit percentage gain for the index, the sixth year in the last. the last seven. Well, two major ways AI promises to change work, shrink the workforce and boost productivity. On the productivity side, companies are seeing green shoots and small experiments, but for many, wide-scale efficiency remains elusive. On the employment side, jobs are already

shifting, especially in big tech. Mackenzie Segalos has more. Mac. Hey, John, so I've been digging into new data showing disruption up and down the employment chain. Stanford is tracking real-time payroll data from ADP, and they found a 13% drop in employment for workers under 25 in jobs most exposed to AI. And at the same time, the MAG-7 are clearing out middle management. Our Gen. Elias obtained leaked audio from Inside Alphabet, where executives disclosed they've quietly cut 35% of small team managers in the past year.

Microsoft shedding 15,000 roles just this summer, and Amazon's Andy Jassy, has been pushing since last fall to flatten their org chart. Mark Zuckerberg's year of efficiency, that's already years in. Now, cutting back middle management, that does two big things. It frees up resources for the AI race, and it removes layers of leadership that slowed down product cycles. Google's former HR chief telling me that the workplace transition underway now out here in Silicon Valley, that also shows new efficiencies inside these big tech names and how companies are deploying their own generative AI tools

internally, with one manager able to do the work of three. Sounds great. All right, now thank you, McKenzie. Well, now on to the productivity side. Why isn't AI having a bigger impact yet? Joining me here on set is Jake Lucerarian, Gecko Robotics, co-founder and CEO. Gecko came in 30th on this year's list of CNBC disruptors. They're only 50.

His piece and fortune this week is titled, AI's Dirty Secret. Without data, it's just math tricks. Jake, so many companies either don't have the data, you argue, to do a really great job with AI, or their data is siloed in a bunch of different places, is what I'm hearing also. How long does it take for that to come together? Well, it's great to have you on, or great to be on here. But I think the thing that I've been really shouting from the rooftops, I guess, ever since Davos and 12 months before that, was if you don't have great data sets, especially in these sectors like energy and manufacturing

and defense, public infrastructure, it just is impossible to be able to use your incredible algorithms to create efficiencies. And that's part of what you do. It's part of what we do. It's why I created the company. And I think what you're seeing with the job decreases for that age group in those kind of companies makes total sense, probably going to go up. But what you're seeing is a four-person leaving one person coming in those industrial sectors

that I mentioned. And there is a cry, and the reason I built the company was because I knew that AI was going to be an accelerant to reducing that barrier to entry to get folks to be able to have great, high-paying, safe jobs in these sectors. And by the way, it's extremely important right now as relates to winning the AI race. And Gecko, you've got robots that go out and crawl on infrastructure

and figure out some of how it's doing what's wrong with it, right? It's like that pill that you can swallow that goes through your insides and sees if you're healthy. but for stuff in the economy. It's interesting to me, you got Gecko, you got some sara, you got a number of companies out there that are trying to, as you put it, turn atoms into bits so that there's data that companies can do something with across the whole economy.

Do you have customers who are now able to bring AI to bear on the data that they're collecting and kind of case study examples you can give the show it's working? I do, and this is where the real conversations, that I have is a lot of frustration actually from the CEOs of whether it's the biggest metal manufacturing companies in the world, energy companies, mining companies, and even the folks in the defense side, it is, look, we're getting sold to build of goods that are being sold to us, the return is not there, the R.R.W. is not practical. So what are you doing? Why are you

different? And I think the thing that we have to understand is that while the algorithms are incredible, and we see that every day with the functions in everyday life that we use chat dbt4, that sort of impact, this is not happening in the industrial sectors. The questions that they're asking me are, how can you help me improve my heat rates so I can reduce the BTOs, increase the kilowatts, my power plant, how can I reduce days of shutdown, how can I eliminate force outages and explosions at my facilities to kill or reduce their production? And I think the answers that we're able to give is, you know, you give us one X in terms

of the data sets that you already have, we'll give you 10x by sending wall climbing robots and walking dog robots and drones and fixed sensors that are looking at vibration and temperature and the integrity of the metal that's running all these things and we will help unlock the efficiencies of predictive maintenance and also efficiencies gains in the way that they run their facilities so that time and time and time again. There are some industry, some companies that have a huge incentive

because of the profits that they make or just the revenues, I guess, that they charge to go ahead and invest in this and drive it. I imagine there are other sections of the economy where they might not have the capital to have robots go out and crawl and do that. Is this something where the society where governments need to decide this is worth investing in because of the efficiencies that our economy is going to get from having that data. Yeah, look, I mean, I spoke on stage at the winning the AI race out in D.C., and this is the big thing I was talking about is those that win the data race are going to win the AI race. Most people think about algorithms are much more important. Data will always be there.

And in the physical space, the world that we live in and drive over every single. single day like a bridge, the data just isn't there. And you cannot drive these Ferrari-like algorithms if you don't have any fuel to put inside of them. And that is the data. You have to lay the rail before you can drive the engine over it. And so that means decoding the real world, decoding the physical world. This world that was forgotten about by Silicon Valley, that's not digital. It didn't experience the fourth industrial revolution. And now it's time because now you can realize the impact and importance that AI can derive and bring in these sectors. And now the winners and losers are going to be more clear.

And I think what's interesting now is I'm seeing a motivation from these CEOs with the impacts that companies like ours are being able to show that, okay, this is a real chance where winners and losers and the big companies that exist today might get usurped coming forward for those that adopt the quickest. All right. It must be pragmatic or it's worthless. Jake, thank you. Yeah, thank you.

Jake Lusrarian from Gecko. Well, up next, how one fintech company is helping to offset some barriers. are doing business that are being raised by President Trump's tariffs. Plus, Wall Street will face a barrage of jobs data next week. Coming up, we'll discuss whether those numbers will be the next catalyst for this market. Over time, we'll be right back. Financial Technology Upstart, a firm soaring 10.5% today on results that gruesome investor confidence that it can gauge consumer creditworthiness better than traditional credit card companies.

Today, let's take time out with a founder whose company's making similar moves in global remittances. Matt Oppenheimer's CEO of Remitly, a fintech with a market cap, around $4 billion. He started Remitly after a stint working in Kenya as Barclays Banks' head of mobile and internet banking initiatives. The experience showed him that moving money globally was just much too hard. Because I was getting paid in British pounds, because I was working for Barclays, I was living in Kenyan Chillings. I eventually had to get money back to U.S. dollars. It's expensive, it was inconvenient, all the things you'd expect. But more important, a lot of my, like, Kenyan friends were receiving money from their loved ones in primarily Europe and North America.

And there were just these stories of, like, one of my friends, like, having her sister's Bank of America debit card that she would take to an ATM, and that's how she'd kind of get money from her sister. Now, Remitly, Oppenheimer is embracing stable coin technology and AI to make it easier for people to send money around the world. And then there's Remitly Flex, a new feature that gives some U.S. users the ability to send money overseas and repay it later. Instead of having to wait three days for the funds to arrive with our Send Now Pay Later solution, Remitly Flex, those funds are available instantly. And so we have unique data and analytics to be able to bridge the gap that has existed for a long time, which is a gap between credit access and creditworthiness. And looking at a lot of the data that we have in terms of payment. and remittance, international payments data, we have the ability to, I think, build a great product there that really benefits our customers, and that will be part of Remitly One.

So the timeout takeaway, global credit, even as tariff barriers and immigration changes are introducing new challenges in the global trade picture, technology is lowering some barriers to doing transactions. Investors can start thinking about which players will benefit in the fintech space. While Sentinel One shares popping on a profit beat and strong third quarter sales guidance. The company's CEO is going to join me next for an exclusive interview on the quarter and the outlook for cybersecurity demand. Plus, broadcom is the big name that's next up on next week's earnings calendar. We're going to discuss whether that could be the next big catalyst for this market. Later on overtime. Welcome back to overtime. A bright spot and a

down day for tech. Sentinel 1, the cybersecurity company raising its annual sales force cast after its Q3 Guide came in above estimates. Annualized recurring revenue rose 24% to a billion dollars. That's why it's up 7%. Joining me now, an exclusive interview is Sentinel 1 co-founder and CEO, Tomor Weingarten. Toma, good to see you. So execution, a big theme here, but also somewhat AI. How are these threats in an emerging AI world emerging and how is that driving demand for your product?

Well, you know, AI is accelerating everything, so obviously it's accelerating also what attackers and adversaries can do. We're seeing that companies are trying to also adopt AI, and that creates even more risk for them, especially with the current state of security for these, you know, LLM models. They are just not as primed for production usage. And I think this is where security becomes this, you know, incredibly important pillar to ever get these solutions to be production grade. So these are things that we're absolutely benefiting from.

Our AI offerings are designed to get folks to a secure adoption of generative AI. And I think that's part of the optic here. So in what way is this introducing vulnerabilities? Are these code assistance writing in secure code? It's a lot of data leakage. It's a lot of non-accurate production, I would say. If you kind of think about everything that's happening right now

with AI, this need for security, the need to know that what the model is doing for you is predictable and has the proper guardrails is just an imperative. And then the data that people share with that model can also often lead to leakage. If there's no control over what employees are putting into these models, into these applications, it becomes a nightmare for enterprises trying to wrangle what is being put into these models, both for sanctioned, but also for complete shadow AI and sanctioned usage and everybody's just clamoring for visibility and control over what's being done right now in any enterprise environment. So why is that driving more big deals for you? I think you said deals at more than $100,000

of annualized recurring revenue are now at 1,50013 representing 23% increase? Yeah, I mean, a lot of it is driven by our own AI offerings. I mean, we've been we've been building AI products for over a decade now in production across tens of millions of devices and workloads in a complete productionized way. So when customers are looking to adopt generative AI, what we can offer them today in terms of the level of control and visibility is quite unique in the market. And if you join that with the level of automation that we can provide, then you're getting it to the point that we help these enterprises get their data, sanitize their data, filter their

and get to process it in real time and layer it with AI. And that's obviously, you know, a pretty priceless component. And tell me, what is Sentinel 1 Flex as a licensing model and how is that helping on the revenue side? Yeah, Flex is, you know, our new contract vehicle for customers. It just allows them complete access to our platform and the choice to use whatever they need at the time that they needed. So it's just a superior way to transact with customers. and obviously it leads to more platform adoption, more consumption, and again, just more flexibility for customers, which is the prime thing we're trying to accomplish with this.

Is AI changing the number of employees you need? It is, it is, as it is for everybody. I think that right now, the way to think about it is that there are multiple processes that you can probably automate today. I think most generative AI usage we're seeing today is almost relegated to very narrow workforce automation and workflow automation tasks. As it becomes more accurate, as it becomes more secure, I think you can start seeing its span even beyond that. But right now, I think adoption is relatively narrow. We all need to establish more trust in these systems. They need to become more predictable.

And that's exactly why, you know, Centa One is building AI security to enable customers to deploy AI in the safest way possible. All right. Toma Weingarten, CEO of Sentinel One. Thank you. Thank you, John. Well, next week, we'll get earnings from Salesforce and Broadcom as well as the August Jobs Report. Up next, we'll look at whether there's an even bigger market catalyst that should be on your radar.

And don't forget, you can catch us on the go by following the closing bell overtime podcast on your favorite podcast app. Be right back. Welcome back to overtime. Let's get you set up with next week's trade. The markets are closed Monday for Labor Day, but it'll be a busy week on the economic front. We'll get ISM manufacturing and construction spending on Tuesday.

The job openings and labor turnover survey jolts, factory orders, auto sales, and the Fed's beige book will be out Wednesday. On Thursday, we'll get the ADP employment report, weekly jobless claims and ISM services, and then the week's going to close out with, of course, the highly anticipated July jobs report. On the earnings calendar, we'll get Cignant Jewelers and Z-Scaler Tuesday. Wednesday brings Salesforce HPE. American Eagle, Dollar Tree, Macy's, and Campbells, and Broadcoms the big name on Thursday, along with Lulu Lemon, DocuSign, and UiPath. Now, our next guest joins me with key things to watch next week,

which bring in Vital Knowledge Powder, Adam, Chrisafooley. Adam, let's start with the retail consumery sort of stuff, because I think Dollar Tree and Campbell's in particular, interesting because of what they do. They've got some unique issues, though. I wonder which wins out in this economy, the fact that they're kind of dealing in inferior goods or the problem if they've got to deal with tariff costs? Yeah, it's a great question.

You know, from what we've seen out of other packaged food companies and other retailers, there's definitely been a dichotomy in those two sectors. The package food companies, especially the ones we saw this week with Ormel and Schmucker, did not have great earnings of stocks suffered. The retailers have actually had a pretty decent July end quarter, you know, with very healthy sales, A lot of them are seeing pretty stiff headwinds, especially from tariffs, and that's pressuring margins, but they are managing to kind of work their way through this very difficult environment.

The stocks have not responded all that well, but as far as just the actual numbers, the retailers have had a healthy earnings season, packaged food, consumer staple companies, not so much. And then in tech, we've got Salesforce and Broadcom, and this sort of reminds me you can kind of compare in contrast with the hyperscalers like Microsoft, Amazon. on, you know, a smaller version in Salesforce. And then you've got Nvidia and a smaller version of the chip's AI play in Broadcom. I mean, do you think we're going to get insight

into how deep the AI demand goes and the AI innovation, perhaps, from these two names? Yeah, definitely. I think Broadcom is going to be crucial, especially after what happened last night. You had a bunch of kind of underwhelming reports out of the AI linked names. And so tech very much is kind of at an inflection point

right now in the space. has not traded very well. There's been evidence of a rotation out of tech and into some of the more unloved areas of the market. So, you know, Broadcom's going to have a lot of pressure on its back when it reports. And then within tech, software stocks have underperformed for the last several months,

due in part to fears that AI would disrupt a lot of your traditional enterprise vendors. And in the last couple of days, we've seen decent software earnings reports. MongoDB was a big name this week on the upside. And so for Salesforce, I think you've actually seen it set him in approval a little bit. ahead of this report Wednesday night.

So those two names very much in focus next week. Absolutely. We're going to get a little culture war action. We were talking a lot about Cracker Barrel this week, but American Eagle reports next week. We're going to have to be reminded what it means to have good genes, maybe some Sidney-Sweeney talk. But when it comes to that stock,

how much of that halo from that marketing campaign perhaps gets questioned and how it's going to translate now? Yeah, I mean, that's definitely. You know, it's a battleground name. Not only do you have Sidney-Sweeney, you have Travis Kelsey also had a marketing agreement with American Eagle. So definitely there's been a lot of noise and hype around that stock. I don't necessarily think it matters so much for the broader macro landscape, but investors

will be very curious to see the extent to which those two partnerships either hurt or helped sales in the quarter. Lula Lemon, going to be anything to watch? Yeah, definitely. I think, you know, like I said, for retailers in general, the sales environment seems to have been pretty decent. Consumers remain resilience. They're still spending, but a lot of these companies are going to be absorbing some very significant tariff headwinds, at least in the near term, before they can adjust their businesses, maybe push through some price increases to compensate

for that. So Gap last night was a great example. You know, decent sales numbers over the athlete of brand underperforming expectations. And they acknowledge that, you know, they're going to have a very large tariff headwin in the second half of this year. And that's going to probably the story that Lulu Lemon tells as well. We'll see if DocuSign is making the that turnaround continue to happen, yes? Yeah, DocuSign as well as another enterprise software name that people will be watching closely. Appreciate it.

Adam, Chrisafouli, thank you. Well, before we go, take a look at shares of Spirit Aviation, Spirit Airlines filing for Chapter 11 bankruptcy protection for the second time in a year. Shares are down more than 45% after hours, rough go for that particular name. And it's been kind of an interesting close for. the week on the major averages with all of them lower, still positive for the month of August. However, one more month in the quarter, and there's been plenty of market action for sure. That's going to do it for overtime.