Closing Bell - Nvidia Delivers Best Day of the Year 8/27/26

Episode Date: August 27, 2026

Nvidia delivers its best day of the year after earnings out Wednesday night. It added the equivalent of an Intel in market cap during the trading session. So is that the green light for investors to climb back into AI winners? Katie Klingensmith, Chief Investment Strategist at Edelman Financial Engines, breaks down the market outlook and where opportunities remain. Mark Zandi, Chief Economist at Moody’s, analyzes the economic outlook and the latest developments surrounding Fed Chair Kevin Warsh ahead of his first Jackson Hole speech as Fed chair. Dana Telsey of Telsey Advisory Group breaks down results from Gap and the growing divergence across consumer stocks. Werner Enterprises CEO Derek Leathers discusses shipping demand from major retailers. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The bell's bringing an end to the trading day at the NASDAQ. Warner Enterprises ringing the bell. We'll be speaking with the company's CEO later this hour. And the closing bell for the NYSC being run in Dallas today for the opening of its Texas headquarters. NYSC Texas is a fully electronic equities exchange, the first securities exchange to be incorporated in Texas. Texas Governor Greg Abbott ringing the bell there. Welcome to closing bell overtime live from Studio B at the NASDAQ market site. I am Mike Santoli.

Melissa Lee is off today. Stocks higher across the board. A small gain for the Dow just about 100 points, and the S&P 500 was higher by 7 tenths of 1%. Gains of more than 1% for both the NASDAQ composite and the NASDAQ 100. InVIDIA, of course, a big reason for all that. Up 8%, adding more than $400 billion of market cap. I've got more on that coming up. But, invidia, not the only reason for tech's gains today. Cybernames soaring on results from Octa and CrowdStrike and Salesforce up 23%. So was the Saspocalypse overstated? We're going to discuss that as well. But we should note, while tech is lifting the overall market, the other 10 sectors of the S&P are all lower today. Let's get more on that big moving Nvidia and the rest of it with Christina Partsnevles, who is here at the NASDA. Yeah, whatever doubts investors had about AI demand, InVDivio's numbers, didn't necessarily show them.

The stock jumped over, what, 8%, almost 9%, and pulled the broader CHIPSox index up with it after management guided to roughly 70% revenue growth in fiscal 2020. And that was actually the first time you saw a full year outlook like that. The readthrough initially rippled straight into the neoclouds. InVIDIA called its non-hyperscale business, the corives and nebuses of the world, roughly half its revenue and the fastest growing, half. That's definitely an endorsement money can trade on and both rallied, but Nebius was the only one to hold, as you can see up 2% on your screen. And the same thing.

Memory names, the ones you'd expect to win most from Nvidia's soaring component costs, didn't actually hold. Micron Sandusk opened higher, faded, partly because NVIDA had already locked up much as the supply it needed. Sandusk is also more exposed to the NAND memory. The stronger read

was on SK-Hinex, given its bigger share of Nvidia's high bandwidth memory. Even synopsis. 13% today. This is whose software Nvidia used to design its chips rallied on its own outlook for double-digit growth as chip designs get more complex. The bigger takeaway, after months of Nvidia lagging the rest of the chip sector, one guide flipped it. Money moved, and this is what you were talking about with Scott in the last hours, money moved into Nvidia today out of crowded memory trades like Micron, Sandus, even some of the MagS7. So rotation writ large, which is why you're not seeing that ripple effect across all of those tech and chip names. Yeah, I mean, the market is, I guess, unwilling to sort of, on a given day, say, everybody wins or everybody loses.

And it's interesting that the bulk case for Nvidia highlighted by the guidance is their balance sheet is, you know, basically unmatched. It's a massive competitive advantage. They locked up the supply of a lot of memory components and things like that, as you mentioned. And so does that mean it's a net negative that they have all the levers and the rest of the complex doesn't? Or tomorrow are we going to make a different decision? Or then the bears would say net negative because now they owe a lot of money, right? $279 billion. The accounts receivable from January to July went up 63%.

I think it's only five major customers that encompass about 70% of accounts receivable. So it really depends on which side of the fence you sit on. But I think what you highlighted with Scott is that maybe the market is being a little bit more responsible in how they're trading, right? Because they're not just jumping in head first with Nvidia. The stock could be up a lot more, given this 70%. revenue growth that they provided for fiscal 2028. It's not, it's a huge company. Yeah.

And the valuation had come in far enough that in theory could have gone up more. It is an interesting dynamic too because there's a lot of talk about how the buy side estimates were a lot closer to that 70% revenue growth number that the guide fixated on rather than the previous consensus, which is sell side. Which then points that the buy side doesn't really have any more. there aren't any other catalyst for the byside numbers to go higher, right? So then what does that mean over the next 12 months of buy sides not really changing? Perhaps there was one report, I think, late last night saying this, you know,

Jensen Wong was really speaking to not the buy side or the sell side, just trying to find an equilibrium. That's bridge that gap. Yeah, exactly, exactly. Because we focus so much on these whisper buy side numbers that represent institutional investors. Sure. And, you know, I guess now the bulge info is all on the surface. We'll see if we feed on something else.

What's the next catalyst? I guess conference season in September. That's part of it for sure. All right, Christina, thank you. So with NVIDIA's rally today is the green light flashing for investors to rush back into some of the AI winners. And what are the implications for the broader market? Joining me now is Katie Klingensmith. She is chief investment strategist at Edelman Financial Engines, which has more than $300 billion in assets under management.

Katie, thanks a lot for joining us here. It's been hard, even if you are intending to be a diversified. investor in owning the S&P 500, it's hard not to essentially be extremely exposed to the AI theme and the earnings and everything that's coming with it. How are you thinking about that as the engine of this bull market? Is it giving you more confidence or having some misgivings here? I mean, it absolutely is hard to diversify, but I still think it's really important to try to figure out how. Now, that's not necessarily trying to shed AI. I think it's actually much broader than just the couple of names that we're talking about. I actually think some of the earnings

in from software companies suggest that AI is pretty permeated throughout the economy, but staying diversified in a lot of different ways is what we care about. I mean, we're mostly working with households. And so having a little bit of exposure to global, to fixed income, which is obviously the focus right now, to other parts of the economy, it really remains a focus for us. Well, it is interesting you mentioned, you know, maintaining exposure to fixed income. Naturally, we turn our attention to Fed chairman tomorrow at Jackson Hole. but just in general what the message of the bond market has been, as longer term yields have risen.

And I keep asking people, hey, you know what? Those real yields, at least on paper, are compensating you for something. They're compensating you for, you know, lending the government money or companies' money at this point. And won't that actually be helpful to a portfolio? So you say yes? I say yes. I mean, I think it's always appropriate to have fixed income. And we've become a little bit more wary of it with the correlation so high. But fixed income always serves a purpose in portfolios. I mean, even with all of the questions around fiscal sustainability and, you know, what are we actually getting from these treasury yields? I think there's still an extremely high likelihood we get paid back on that treasury principle.

And as you mentioned, the real yields are high. So, I mean, we're definitely paying attention to that. We're not tactical investors, but all the same, even with, you know, rates, yields really going up. I don't think it's a bad time to be, you know, having, adding fixed income to a portfolio. And part of that equation I always expect is what you're currently expecting equities to deliver in the coming years. I mean, it helps you make that decision as to whether, in fact, it's a good bet to have more or less outside of equity. So we've had three straight years of 20% returns right now. If you look on a trailing three-year basis from the S&P 500, that's pretty good.

Some bull markets give you a lot more, but what are you thinking about in those terms at this point? I mean, it's hard to imagine that we're going to get returns at quite this level going forward. I do think it's interesting. What we heard today and from some of the recent earnings from some of the hyperscalers is that we're looking at a longer trajectory, a longer period of positive expected returns, a lot of supply scarcity. That's exciting. But I think, you know, the bigger question, it's not exactly what we expect from equities. But how do you think about building a portfolio that does have some diversification?

And I think a lot of the really interesting questions right now are actually about what's going on in the treasury market and thinking about what that means to American households. Higher interest rates, I mean, that is good and bad for a household. It's interesting from a portfolio and investment perspective, but it also makes a big difference to, you know, households who are thinking about living on fixed income or on borrowing. Yeah, this is the tricky thing. I mean, we've been focused on this for a while, which is the bond market is trying to regulate or reprice according to all the demand from the overreaching. Sectors, maybe they're overheating in CAPEX, and then as well, you know, just the government borrowing needs, whereas other parts of the economy maybe are a little bit more constrained in terms of what they can do with rates at that level.

That's right. And we're seeing this across the board. We're talking about it as a split-screen economy. On the one hand, there are all of these positive signals around, you know, just incredible productivity, enhancements, I mean, AI, but what that means with technology being integrated into a lot of other sectors of the economy, that's fabulous. We're seeing it in those returns that you mentioned. But at the same time, we're seeing a lot of indications that American households outside of,

hopefully, their retirement accounts are not necessarily enjoying the same level of just delight, shall we say, that we see expressed in the performance in equity markets. Yeah, exactly. So we'll see. And it's fascinating because, you know, the major big cap indexes really don't have that much exposure to the day-to-day household spending on a percentage basis. so I guess it's easy enough to look past that. Katie, really appreciate your time today.

Thank you. Thank you. Katie Klingensmith. Software names getting a boost on the back of earnings from Salesforce. The IGV popping 7% in the S&P Software ETFXW posting a closing high on track for its fifth straight weekly gain, as a matter of fact. But does this mark the end of the so-called SaaSpocalypse, or is this merely a short-lived relief rally? Joining me now is Jackson Aider from KeyBank. So, Jackson, I mean, obviously the stocks were pricing in something, you know, pretty rough, pretty

dire at the lows a couple of months ago. They've come back a fair degree. Have we rebased the earnings expectations? And is it okay from here? Or is this a head fake? I think it depends. It depends on the company, certainly. I mean, what was nice today is that you saw broad-based strength across basically all of software.

Like, yes. Service Now, you know, got a nice uplift from Salesforce's strong earnings last night. So you saw a bunch of application names go higher. But it was also in security of Crowdstrike and others really saw their strong results and fundamentals move higher. And so I think from here, you know, we put out a note just a little while ago. I think from here it's now it's about upward revisions. We may have gone the too far on valuations and buying a future that, you know, we said we just

didn't see happening. But now it's about, all right, let's get upward revisions, particularly on the top line, moving higher to catch up with the move in the IGB over the last two to three months. The Salesforce's announcement with Anthropic about essentially kind of partnering and making Claude accessible through its platform, is that a narrative changer or is that just kind of an add-on, a signal that Salesforce is going to be a particular? on some level here. Yeah, it's so funny. I think you could look at it one of two ways.

So six months ago, nine months ago, 12 months ago, if this kind of announcement would have come out, I think we would have been very nervous because ostensibly what is clawed, Anthropics Claude, has now the ability to operate with just getting the data from Salesforce. and you're kind of usurping the user interface of Salesforce. And that was the primary fear of what might happen. These model companies might just disintermediate or abstract away the software user interface. And now we have Salesforce willingly and with a partner saying like, no, this is fine.

Like, Claude, you can come and access our data, certainly for a price. But I think on the positive side, you would say, you know, Mark and Salesforce are, are unafraid. They say to themselves, nope, we have a durable moat here. We are the ones who capture the data. We are a system of record. Have at it. Claude, again, certainly for a price, which we will come to know over the next couple of months. But at the very least, I think it's a signal that this particular software company, Salesforce, is not afraid of being disintermediated. And, you know, that was one of the, I guess, lines of defense that was attempted to be put out there by Mark Bennyoff at Salesforce, you know, Service Now and its advocates saying, you know, these kinds of software platforms of record are going to be fine. They're too indispensable. They're too integrated with the workflows. You don't seem to actually be favoring those stocks right now. So how are you thinking about it? Yeah, I think that it is tricky because I understand that these things are not necessarily

being ripped out. They're not going away. We're not talking to customers and partners in hearing. Yeah, I vibe coded my IT service management application over the weekend. And so now I don't need service now anymore. You're not hearing that. What we are hearing, though, is that on the margin, customers are thinking. to themselves, maybe I don't need to take every single feature or every single module upgrade

from these incumbent software companies. That hurts growth on the margin. And again, that's why you've seen valuations and multiples drop across software. But we're not seeing people rip them out entirely. I think what we certainly need to pay attention to, though, is that there must, maybe not. Maybe I'm wrong. But I do think that there must be some equity value or brand value or some sort of value tied into the user interface of SaaS software, living and breathing in the Salesforce environment for a salesperson or for an IT person in ServiceNow, just like every knowledge worker kind of lives in the Microsoft ecosystem.

There must be some value there. So I'm still a little nervous that disintermediation could happen. And again, it's about that marginal growth rate. But today is a great day for software. We're not here to... No, without a doubt. And obviously, the market's going to continue to struggle with what that value is because it can go up or down to 22% in a given day for a very large company.

It's been around a couple decades. So all very fascinating. Jackson, appreciate your weighing in. Thank you. Thanks, man. Marvellianneville, are out. Christina Parks and Nevelas has the numbers. Christina. Yeah, it is a slight beat across the board.

Earnings per share of 94 cents on revenues of 274, so slightly higher than the street. Same for Q2, non-gap gross margins. Data center revenue also slightly ahead at $2.17 billion. Management says AI-related bookings remain, quote, exceptionally robust, and they expect their revenue row to accelerate further through the remainder of fiscal 2027. And so given that strength, the management said they are again raising their revenue outlook for both fiscal 2027, fiscal 228, compared with the guide provided last quarter.

So on that guide, the Q3 EPS guide came in at $1.10. So it's $3.00.00.000. in the, for the midpoint for revenue at 3.15 billion. It's also a little bit higher. It's the Q3 gross margins that came in a little light at the midpoint, and that could be why the stock is selling off. The company also teasing that their next big long-term strategies are actually going to be shared on October 6th, their investor day here in New York, as opposed to perhaps this earnings call that is upcoming, so maybe less of a catalyst than what the street had been hoping for for this name. That's why the shares are down about 2%.

All right, Christina, thank you. The next big market event we've been waiting for is just about 17 hours away. Fed Chairman Kevin Ward speaking at the Fed's conference in Jackson Hole. We'll get you ready for that speech coming up. And we want to show you the closing bell at Cebo in Chicago. That ended the regular trading day for options. You're watching closing bell overtime, live from the NASDAQ markets. Welcome back.

Markets getting over one big hurdle in Viti's earnings. Next up, Fed Chairman Kevin Worse speaking at Jackson Hole tomorrow morning. Let's get to Rick Santelli in Chicago for more as yield's moved just a bit higher today, Rick. Yeah, that's pretty much it. If you look at a week today, chart of Mike, yields have drifted higher. Perhaps it was yesterday's stickiness on some of the PCE inflation data points or maybe some of the better economic data points we've had. Today in particular, there's little doubt that that rise at the right-hand side is most likely due to a little bit of adjita in front of tomorrow. And that speech you're referencing. But if you add in oil, we can still see that even though the percentages don't line up with the movement on interest rates versus oil, the patterns definitely do. And that is significant.

Now, if we consider what's going on tomorrow, you know, one of the big points that I hear constantly debated is for the Warsh Fed to hold on to the optionality of what may lie ahead with regard to their policy and the moves of the Federal Reserve. To that end, I think there's going to be some disappointment tomorrow. I don't imagine the chairman's going to be getting out of paintbrush and putting new boundaries around himself or painting himself into a corner. Most likely, the task forces that he's organized are going to report back and we'll get more information down the road, in my opinion. And when it comes to the dollar, remember, a weaker dollar means that we can buy more imports at a more reasonable price. To that end, here's a three and a half chart of the dollar versus. the Chinese onshore you want. And it's clear, almost on a daily basis, we continue to move

lower against that currency. There's a lot of reasons why, but the end result is that is one of the bigger export markets of China. This makes it a little bit easier to send more things overseas to us. And that was referenced. If you look at the bigger trade deficit numbers for July, we received this morning. Mike, back to you. All right, Rick, thanks so much for the setup there. What do the markets want to hear from Chairman Warsh tomorrow? Joining me now is Mark Zandi, chief economist at Moody's. Mark, obviously always a lot of suspense. Sometimes you get some policy clues, sometimes not. What do you think the main mandate ought to be for Warsh tomorrow? No drama. I think that's what his game is, his aim is going to be. I mean, unlike Chair Powell,

who used the Jackson Hole speech to move markets, to make big changes in monetary policy, I can remember, for example, the one in 2022, and he kind of set us up for big rate increases in the one in 2024, where he set us up for some rate cuts. I just don't see any of that happening here under Chair Warsh. It's just not where he's coming from, you know, given his perspectives on communication. Rick mentioned the five task forces. You know, I can't imagine he's going to want to front run those, what they have to say. So I don't think there would be anything big on those issues. And I think he's also got to, you know, he's got to be careful about what he says in the context of all the things that the Trump administration are doing with regard to the bond market, you know, the Treasury actions and Annie Freddie purchases of mortgage securities.

I think the administration is watching pretty carefully. So my guess is we're not going to hear very much of if at all. And no drama. This is going to be a no drama, Jackson Hole. I mean, Fed policy rate's been on hold all year. Historically, that's not a bad thing. It means that, you know, the economy is not undergoing some kind of emergency that needs response. It's sort of a bit of a luxury to be able to wait. But he does have a committee that's somewhat split and maybe leaning hawkish. We got more reiterations today from some of the regional Fed presidents. They think rates should go higher from here. There's genuine disagreement about how restrictive policy is right now. And I think it's interesting because you could look at things like all the borrowing going on to build out CAPEX and what that's doing to either inflation or growth and say that, you know, maybe we need to tighten things up a little bit.

On the other hand, you know, maybe underlying core inflation is unremarkable. And, you know, employment's been steady, but not necessarily, you know, wage inflation rising. So how do you view that? Yeah, I think the hawks, the folks that want to raise interest rates, they're focused on inflation. you know, and point out that inflation's been above target now for what, four or five years. That's just too long. We can't wait any longer. It feels like it's kind of sticky.

Rick used that word. You know, if you look at the service price inflation, it feels like it's not coming in. So I think that's the motivation for, you know, the hawks, the folks that think we need to raise rates. But there's a strong argument to be made on the dove's side. The economy, in my humble opinion, is weak. You know, we're not growing very fast. I mean, GDP growth last year was 2%. GDP growth in the first half of this year was barely 2%.

We're tracking kind of 2%. And 2% isn't enough growth to generate any jobs. We're not generating any jobs. And the labor market's on the soft side. Wage growth is decelerating. It's now below the rate of inflation. People's real purchasing power is declining. That would all argue for rate cut.

So, you know, when you kind of take both sides of this, my sense is they're not going to figure out a path forward, at least not with the data that we have. it's going to hang tight, no change in policy, which, as you said, I'll take it. That's not bad. That's pretty good. And by the way, this whole debate about is it restrictive or not restrictive, that's really on the margin, you know, in my view. I mean, you know, maybe the equilibrium rate, the neutral rate is a little bit higher. Maybe it's a little bit lower, but we're not talking hundreds of basis points. We're talking basis points. So I think we're pretty close to equilibrium. Yeah, I mean, I know from the Fed minutes there was some talk that, you know, it seemed as if maybe

policy was reading more accommodative if you look at certain things. Powell used to say the neutral rate, you know it by its works today. Cleveland Fed President Hammock said, you know it when you see it. I guess we can all just sort of say it's a little bit of a fudge factor and not necessarily calling out for much action at the moment. Mark, Frank, afraid we have to leave it there. I appreciate the time today. Mark Zandi.

All right, and don't miss special coverage of Fed Chairman Kevin Warsh's speech at Jackson Hole tomorrow. That is at 10 a.m. Eastern. earnings from Gap just out, and the stock is jumping. 52 cents a share, excluding tariff refunds. That was 4 cents better than the consensus estimate. Revenue, however, was a slight miss. Same store sales were down 1%.

The first company-wide declined since 2024. Old Navy missing on its sales. The company also announcing it's changing the CEO of the Old Navy unit. More on Gap and some of the other retail reports we've gotten this week, including dollar store divergence on closing below. overtime next. Gap up almost 7%. Welcome back to closing bell overtime. Shares of Nike ending the day lower, adding to some steep year-to-date losses. The stock is down 39% in 2026 on pace for its worst yearly performance since 1993. That was the same year Michael Jordan retired from basketball,

the first time, of course. At its peak in 2021, Nike traded near $180 a share with a market cap of more than $270 billion. It has since fallen to below $40.00. It has since fallen to below $40. and the market cap is just $56 billion at this point. Well, sticking with retail, gap shares jumping after reporting earnings and announcing a new CEO at Old Navy. So far, results from the retailers have painted a mixed picture, the biggest of them all, Walmart, disappointing the street, Target impressing. The dollar store is seeing a big divergence, specialty retailers telling different stories.

Capri misses, but Abercrombie beats, and a majority of the company saw big gains from tariff refunds propping up some EPS figures. me now to discuss it all is Dana Telsi, CEO and chief research officer at Telsi Advisory Group. Dana, good to see you. Let's start with the Gap and this transition at Old Navy. I know Old Navy has been a focal point as an underperformer for a little while. You're right. Hi, Mike. Thank you for having me. First of all, they just reported the numbers. They beat on EPS. The Old Navy brand was weaker than expected with a down 4% comp. Gap held its double-digit comp up 10%. And you know what? Richard Dixon is taking action, making change.

Hio Barbado, the CEO of Old Navy, is being replaced from Michael Francis. Long tenure in retail. He came in as the chief customer officer recently. But meanwhile, the gross margins were better than expected. The guidance went up, and AUR was up at all brands. So you know what? Taking action, AUR up, raise the guidance on balance. They've worked to do at Old Navy, but Gap Brand is hanging in there with the big moments.

Yeah, this comes, I guess, last quarter, there was a little bit of a perception of a sort of a fashion mesh merchandising, not where it was supposed to be? I mean, do we think that that's taken care of? Are they in a good spot based on the broader trends? I think Old Navy has work to do. The women's seasonal still missed and they had increased promotions. So there's work to do at Old Navy. But the health of the business overall remains strong given the fact that they took up guidance and Gap is maintaining their momentum. My theme of legacy modernizing holds, given that the legacy brand, like what Gap has continues to work.

What are we to make of the split in the market responses to the dollar stores, dollar general and dollar tree when I guess both in terms of the fundamental numbers more or less came in at what people were looking for? Yes, but you have to look at what would the stocks doing before the numbers were reported. As a result, I think that was the difference between dollar general and dollar tree. Because as you said, it was what the market was looking for, but with one up 7% year-to-date going into the quarterly report, the other down 7% year-to-date going to the quarterly report.

One had a stock price that could move higher, one a little bit lower. And overall, you had Burlington report today also, better than expected quarter overall. But they saw the lower-income consumer, basically, they're watching carefully. Interestingly enough, the stores at Burlington, their stores in lower-income areas outperform the chain. Interesting. Yeah, that stock down almost 8% today. And Best Buy also backed off on its results. I don't know if there's anything that people were a little bit dissatisfied with in the quarter or, again, just the market digesting a move recently. I think market digesting the recent move, you have the turnover and change that's happening in the management team there. But overall, the numbers, frankly, were very solid.

Is there a way to generalize now that we've seen kind of a critical mass of all these chain retail, is having reported about what the operating environment looks like, you know, going into the fall? I think a couple things. The operating environment looking going into the fall on apparel, you need newness. You need fashion. Active footwear, very promotional given the Nike headwinds. When you're thinking about value, value matters, and I think you're going to see companies continue to get sharper on value. You think about the supermarkets, you look at off price. They're very sharp in value, but offering better brands. I think go. Going into the back half of the year, marketing definitely matters, picking up new customers matters.

And I think we're seeing overall the lower income, frankly, continuing to buy, even in the face of whether it's gasoline prices or other inflationary headwinds. And you're seeing the middle and upper react to innovation. And I think everyone reacts to, whether it's sporting events, everyone's activated by experiences. All right. We'll see what's next on the path along those lines. Thank you very much, Dana. Thank you. Time for a CBC News update with Brandon Gomez. Hey, Mike. Officials at the FAA reportedly found two air traffic controllers left work early on the night in March when an air Canada jet crashed into a fire truck on a runway at LaGuardia Airport. The Wall Street Journal reports they allegedly left an hour before their shifts ended, leaving other controllers without the necessary backup.

Two pilots were killed in the crash and six others were seen. seriously injured. Chinese authorities warned today that yesterday's landslide that triggered devastating flash floods created a large lake, and now that lake is at risk of breaking and causing even more flooding. Nepali's authorities say more than 350 people were killed, with more than 1,400 people still missing. At least 65 Americans are believed to be among the missing. And golf equipment giant Callaway today said it has ended its partnership with Good Good Golf. It comes after widespread backlash from a good good ad that shows a man shoving a woman to the ground. Callaway blamed its internal review process for reposting the ad and said it's donating a million dollars to organizations working to prevent domestic violence.

Mike, send things back to you. Brandon, thank you. Diesel prices moving higher today and they've doubled this year. Up next, the CEO of Trucking Company Warner Enterprises on how higher energy costs are impacting both his business and customer demand. Stock up nearly 30% this year. Closing Bill Overtime. Be right back. Welcome back to Closing Bell Overtime, live from the NASDAQ, Market. market site. It was tech versus everything today. InVIDIA leading the NASDAQ and NASDAQ 100 higher following

its earnings. And though the Dow and the S&P 500 closed higher, the other 10 S&P sectors outside of tech all ended the day in the red. Results from more software companies out this hour. Let's start with Workday, adjusted earnings of 275 a share. It was 14 cents better than expected, narrow beat on revenue, and authorizing a stock buyback of $4 billion. Stock down about 6%. after hours. Auto Desk also falling better than expected earnings and revenue, but the third quarter earnings guidance of 304 to 309 per share is below the current consensus stock down almost 8%. After falling briefly today, diesel prices are moving higher and have doubled this year. Pippa Stevens here with the details. Pippa. Hey, Mike, so we did see some weakness in diesel prices this year. Sorry,

this week, I should say, perhaps on some optimism that will see more flows out of the Strait of Hormuz. But of course, the Middle East is only one of the issues facing the diesel market right now. And perhaps the even greater one is Ukraine stepping up its attacks on Russian refining infrastructure. You can really see the move higher when Ukraine did start increasing the frequency and severity of those attacks. And at this point, we don't know how extensive the damage is, meaning the timeline could be stretched further. Now, with both Middle East and Russian distillate exports offline, the United States is supplying more diesel than ever to global markets. and that is pushing down domestic stockpiles. We're now at 103.4 million barrels.

We are a little bit above the low, the post-war low, but we are now on the verge of crossing under 100 million barrels, and that would be for the first time going back to 2003. And that, of course, is putting upward pressure on prices at the pump. Regular is at 4.10. Diesel, though, is at 562, rising faster than regular gasoline. We're now about 5 cents below the minimum. May high, the post-war may high, and about 20 cents below the all-time high back in June of

2022. That is, though, not adjusted for inflation. All right. Yeah, getting pretty close. Pippa, thank you. The cost of diesel hitting home for truckers and could potentially spill over into your wallets, but it's just one of the many challenges that have faced the industry recently, including a drop in certified drivers as well as tariffs. Despite those headwinds, trucking and logistics company, Werner Enterprises, expects demand from their clients. to improve in the second half as retailers replenish their inventories, while, of course, relying on truckers. Warner Enterprise's CEO Derek Leathers joins us, along with our Frank, got a start.

Mike, thank you very much. Derek, it's great to have you here. You're just downstairs ringing the bell, celebrating Warner's 40th year as a publicly traded company. You're in a decade in the CEO seat, so you've seen a bunch of cycles. Talk to us about this one. Diesel prices right now, as Pippa just mentioned, about 20 cents from the all-time high. The fuel surcharge up 33% you every year. How does that impact your customers? Retailers like Walmart and Home Depot. Yeah, I mean, obviously it's tough. Anytime diesel's rising the way it is right now, there is a fuel surcharge involved in moving goods around America.

So some of that cost is going to leak into the cost of transportation. But the shippers have been amazingly resilient, especially some of the best in class. You mentioned a few of them, Walmart, Home Depot and others, at mitigating some of that through other ways of finding efficiencies in the supply chain. And that's what they hire us to do, is to work every day to find place, to eliminate waste, to offset some of these inflationary pressures. All right. Speaking of inflationary pressures, let's talk a little bit about tariffs. Laf's earnings, you raised your CAPEX guidance.

It was really focused on updating your fleet. A lot of truck and companies are doing the same thing because we're coming out of a freight recession. And right now, the demand seems to be pretty strong. And maybe because of capacity constraints, but demand is very strong. How could tariffs, 50% tariffs on truck imports potentially impact your business? How are tariffs impacting you in general? Well, I mean, first and foremost, I'd say tariffs are difficult on the business at times, just in that we move goods, right?

So everything we move that gets impacted by tariffs cause disruptions in the network. As it relates to CAPEX guidance, that was a commitment we made to freshen our fleet coming out of the freight recession. We want to put money back in, trucks and trailers, terminals and other things, to prepare for what is a tighter market right now.

Demand is fairly strong, but it's really a supply-side story, which you mentioned. Capacity continues to exit the market. A lot of it couldn't make it through this recession. And then there's increased enforcement out on the roads today that's really kind of long overdue as there's a more laser focus on safety and security and fraud prevention. That's taking capacity out. That's tight in the market.

And we're preparing for that with this cap X increase. Where are we in that process of taking capacity out? I mean, I know this has been going on for a while. You're talking about essentially kind of enforcing things like making sure drivers are properly licensed. You have maybe undocumented drivers that are being eliminated at this point. Yeah, I mean, I would just speak to the fact that it's a safety issue first and foremost, right? We can't have people driving 80,000-pound vehicles down the road that can't speak or read the language, because road signs increasingly are dynamic.

They change every day. They're electronic. There's more technology involved. So it's something that's been long overdue. I think we're in the early to mid-innings. We've still got a ways to go. We've seen quite a bit of attrition over the last, you'll call it six months to nine months. We're now below pre-pandemic levels in terms of total truckload transportation employment.

But I think you're going to see more of that attrition and that tightening continue as we get into the fall, which is obviously the busy season. So all of us got some work to do to get prepared. Can we talk about what I like to call tech transportation is the movement of goods for the AI buildout? You have two customers, Google and also Ferguson, that are deeply involved in this AI buildout. Is that a real tailwind for the business? Can you give us any sense of what percentage of the business you see in the future being tech focused? Yeah, I think certainly for the short to intermediate term, tech's going to be a major play relative to our overall network. We've talked about this on earnings calls and other places, but there's a lot of work to be done to build these data centers and to build out and keep current with the AI arms race.

Servers, transformers, piping. What do you move in? It's all of the above, honestly. It's all of the above, everything from flatbeds that move in the actual piping to, you know, very specialized trailers, moving servers that in some cases are extremely valuable and sensitive, obviously, to how they're handled. And so we're going to continue to grow into that space, tech, something that we feel strongly about. We want to do the more difficult to do work. There's less folks that can do what we do, and the more specialized or difficult it is to do, the more excited we get about doing it.

Derek, really appreciate you being here. Thank you. Thank you. Thanks for having me. That's on the bell. Frank, thank you. Mike, thank you very much. All right.

Where we go? Here we are. The CME planning to launch new ways investors can target specific components of risk. Up next, are they a good way to diversify your portfolio or are they a risky bet? We'll discuss closing bill over time. We'll be right back. The CME group announcing plans. to launch E-Mini Equity Factor Futures,

allowing for direct futures trading of growth, value, momentum, low volatility, and more. The move would help investors target specific components of risk. The launch is scheduled for September 21st, pending regulatory review. Joining us now is Risk Reversal Media co-founder, Fast Money Trader Guy Adami. Hello, Michael. Good to see you.

I mean, a lot of times, I don't know, these new listings, I feel like, nobody's asking for that. I see the utility here because of how dominant factor investing has become? I mean, how are you reading? Think about CME Group. I mean, Terry Duffy is a friend, and so full disclosure. But he also doesn't mean that I'm not right in saying. He's a visionary in terms of what he's done at CME Group. Think about that deal with Google. It's got to be four years ago. People said, what's going on here? And then in retrospect, they're way ahead in the cloud.

So I think they're ahead here as well. Growth futures, value futures, quality futures. What they're trying to do is get people a way to navigate growth, capture growth, navigate volatility and get the full effect of all the different suite of products that they have. And I think they're right in this. So you're right in pointing out that there are thousands of products out there. But typically when CME rolls something out, it's something that the market is actually asking for. I mean, I think it's in large part because so much of the institutional side, tactical traders, these multi-manager hedge funds, that's all they're kind of doing is they're trading the characteristics of baskets of stocks as opposed to, I like this one, versus

is another one. And there's ETFs, of course. For sure. You have the METUMETs. You have, you know, E Mini Futures versions of these that obviously allow you at lower cost to get. Agreed. But, you know, they've obviously done their homework here. You just basically explain what the marketplace is looking for in terms of institutional investors. And you know what? A lot of individual investors now, that's sophisticated. So this sort of encapsulate the six or seven different things. So don't sleep on CME here. And remember, it was only a month and a half or so ago that we were having conversations about the

existential risk around CME. And then subsequently, Terry Duffy announced that he was stepping down in the spring. And the market said, well, you've got to stay away from CME. Look at the chart. I mean, the crack staff and EC put it up. Since that point, the stock has rallied. Listen, the market's not worried as well, I understand. But the stock has bounced significantly.

No, it's a fascinating story, this kind of battlefront between the regulated exchanges, the prediction markets that are just kind of, you know, they'd rather beg for forgiveness later than ask for permission. And it's in anything goes type of market, but see if they can defend the time. And Terry has pointed out maybe correctly he knows more about this than I do. But some of the things that are rolling out under the current law don't really hold any muster. So we're going to see how this thing plays out in real time. Yep, absolutely.

CFTC has been blessing a lot of stuff that the exchanges don't want to see. I like that. I'll see you in a minute. See it up here in a bit. All right. First, Nvidia reported strong earnings. Now the AI chipmaker may be making a hug deal for an open source AI company. What that could mean for the tech giant straight ahead.

Close on Bel overtime, live from the NASDAQ market site. We'll be right back. Welcome back. A big day for tech following Nvidia earnings, but also huge moves in software and cybernames, Salesforce, Octa, and CrowdStrike. However, the stocks in that group reporting today are falling after those numbers, even though Workday, Autodesk, Rubrik, and Sentinel 1 all beat on earnings and revenue. You can see those stocks down at least 5 and up to 10%.

Many of those stocks did have gains today and have seen big, increases so far in August, 48% in fact, for Rubrik. We're going to Kate Rooney now, right? With Nvidia shares rallying today, here we go. Invidia eyeing another major AI deal looking to buy open source platform hugging face. Kate Rooney is here with the details. Kate. Hey, Mike, so that's right.

Invidia is eyeing another major AI deal. It's looking to buy that open source platform hugging face for nearly $13 billion. the information was first to report some of these talks, said the deal accelerated after Hugging Face got some interest from another potential buyer and then CNBC separately confirmed that NVIDIA has been part of the deal talks. Invidia and Hugging Face declined to comment on the deal in all of these discussions. But this startup does offer one of the most widely used platforms for AI developers. So it's basically a distribution platform for other AI models. Developers can go on there, share, test, and download a variety of these AI options. And if the name Hugging face sounds familiar. This was the company at the center of a major hacking incident from Open AI recently. The deal would also give NVIDIA an even bigger role in this ecosystem. Beyond just chips, it brings it a lot deeper into the software and AI model side of this exchange. It is part of a broader push as well by NVIDIA to own more of the so-called AI stack and then potentially does create a funnel back into NVIDIA's hardware. It already has

its own open source model called Nemotron and it has an extremely deep venture capital. portfolio. I was just looking at this, Mike. Open AI is on that list. Names like Poole side. They had a stake in core. We have so hardly their first rodeo in venture investing here. Yeah, I mean, obviously pretty comprehensive approach to anything AI. I just wonder if there are internal conflicts developing with other customers that are in more of the kind of closed model world or if that could ever matter. Potentially, I think the other knock would be that it's in some ways making demand harder to measure. And I think all of these companies need capital. They will take it from a partner, especially in the case of hugging face. But there are, I feel like the list of

conflicts could go on. But it seems like Nvidia has done this before and has figured out the roadmap to be able to do some of these deals. And there's clearly appetite from the startups. Yeah. And obviously, you know, nobody has a choice, but to buy from Nvidia, at least at this point. So they can do as they like. Kate, thank you. Exactly. So much. And before we go, a reminder, don't miss, special coverage of Fed Chairman Kevin Warsh's speech at Jackson Hole. That is tomorrow, 10 a.m. Eastern time.

That's it for overtime. Fast Monday begins right after this break.