>> THE COUNTDOWN IS ON. EVERYTHING YOU NEED FOR THE EDGE AT THE END OF THE MARKET DAY. THIS IS "THE CLOSE." ROMAINE: THE MARKET MELT UP IS HERE. LIVE FROM STUDIO 2 IN NEW YORK, I AM ROMAINE BOSTICK. SCARLET: I AM SCARLET FU. TAKE A LOOK AT THE DOW JONES INDUSTRIAL AVERAGE. IT FEELS LIKE THIS IS WHERE THE ACTION IS. ROMAINE: THAT IS WHY WE HAD TO START THE SHOW SEATED. SCARLET: IT IS WEIRD THAT WE QUOTE THIS BUT IT IS UP .9%. SMALL CAPS, 1.8% ADVANCE. ROMAINE: TRYING TO WORK ITS WAY BACK, A LITTLE
LESS THAN 40 POINTS AWAY. SCARLET: WE ARE ON WATCH FOR A RECORD CLOSE FOR THE RUSSELL 2000. THE 10 YEAR STUCK AROUND THE FOUR POINT 4% LEVEL. BITCOIN INCHING TOWARD ONE HUNDRED THOUSAND DOLLARS. ROMAINE: GREEN ACROSS THE SCREENS. A SNAPSHOT OF MARKETS RIGHT NOW. FIVE STRAIGHT DAYS OF GAINS FOR THE S&P. MORE THAN 70% OF NAMES ABOVE AVERAGE. WITH 200 20 SIX TRADING DAYS ON THE BOOKS THIS YEAR --WITH 226 TRADING DAYS ON THE BOOKS. A DRILL DOWN GETS MESSIER. ROTATIONS AND RE-ROTATIONS ARE A BIG PART OF THE STORY. TRADERS BLINDSIDED PILED INTO HEDGES IN
OCTOBER. CFTC POSITIONING DATA SHOWING THE LARGEST COLLECTIVE SPECULATIVE LONG POSITIONS ON S&P FUTURES IN 2.5 YEARS SUGGESTING INVESTORS SEE A PATH FOR ADDITIONAL MARKET GAINS. >> THERE IS SO MUCH LIQUIDITY IN THE SYSTEM. FOR THE FED TO SAY THE RATE IS RESTRICTIVE WHEN BITCOIN IS IN AN ALL-TIME RECORD HIGH, REAL GDP AT AN ALL-TIME RECORD HIGH, I AM SCRATCHING MY HEAD AND SAYING, WHAT PLANET ARE THEY ON? ROMAINE: DAVID KELLY OVER AT -- STRENGTHENED EARNINGS SHOULD KEEP DRIVING THE MARKET HIGHER. A BLOOMBERG SURVEY SHOWS ECONOMISTS DO NOT EXPECT A RECESSION UNTIL 2027. OPTIMISTIC REVISION FROM
TWO MONTHS AGO WHEN THE SAME SURVEY SHOWED MEDIAN EXPECTATIONS WERE FOR A RECESSION NEXT YEAR. SCARLET: OPTIMISM IS SHOWING UP EVERY YEAR. A RALLY LIFTED THE S&P 500 --ONE WAY TO EXPRESS THIS IS HEDGING THE DOWNSIDE THROUGH OPTIONS. THE S&P 500 IN BLUE. THE WHITE LINE TRACKING BEARISH BETS RELATIVE TO BULLISH CALL OPTIONS ON SPY. IN THE PAST TWO YEARS WITH THE BLUE LINE HAS MOVED HIGHER THERE HAS BEEN A SIMILAR PICKUP IN DOWNSIDE HEDGING. THAT HAS NOT HAD IN THIS LATEST LEG. AS THE S&P 500 HAS CLIMBED THE RATIO HAS BEEN DECLINING. ROMAINE: TAKE
A LOOK AT THOSE TWO LINES AND THE DIVERGENCE. THAT IS A SIGN OF BULLISHNESS. WE KICK YOU OFF TO "THE CLOSE" ON THIS FRIDAY AFTERNOON. EVERYONE LOOKING AHEAD TO IF THE RALLY CONTINUES INTO 20 25. SCOTT CHRONERT IS A U.S. EQUITIES STRATEGIST OVER AT CITI. THAT IS THE BIG GAME RIGHT NOW. DECENT EARNINGS COMING OUT OF THIS SEASON. A RELATIVELY SCRAWNY COP. STRONG ECONOMY. SCOTT: THE ONLY REASON TO THINK IT CANNOT CONTINUE IS ONE OF TIME FRAMES. WE ARE MOVING PAST THE PERIOD OF ELECTION UNCERTAINTY. TO A PERIOD OF POLICY UNCERTAINTY. WE ARE STILL IN
THE PATH WHERE WE SEE NOMINEES FOR VARIOUS CABINET RELATED POSITIONS, THERE IS STILL AN AURA OF UNCERTAINTY. YOU NEED TO HAVE THAT FRAME OF REFERENCE WHEN LOOKING AT THE CURRENT VALUATION SET UP. 24 TIMES TRAILING, 22 TIMES FORWARD. ALL TOLD THERE IS AN EMPHASIS ON A EUPHORIC BACKDROP THAT IS GOING WITH A TRUMP PRO BUSINESS DYNAMIC AT WORK BUT STILL AHEAD WILL BE THE ABILITY AND THE ISSUE AROUND NAVIGATING SOME OF THESE SPECIFIC POLICY APPROACHES AND WHERE THEY TAKE US. ROMAINE: WITH SOME OF THOSE APPROACHES AND THE POTENTIAL NEGATIVE EFFECTS, WILL THAT BEAT IDIOSYNCRATIC STORY
COMPANY BY COMPANY OR A BROADER MARKET ISSUE? SCOTT: THAT IS A REALLY GOOD QUESTION AND THAT IS WHAT WE ARE NAVIGATING. IF YOU LOOK AT THE SECTOR PERFORMANCE, IT TENDS TO ALIGN WITH THE GENERAL DIRECTION OF WERE INVESTORS ARE EXPECTING THE POLICY PUSH TO TAKE US. YOU HAVE SEEN THE FINANCIALS LEAD, ENERGIES LEAD. ON THE FLIPSIDE, YOU HAVE HAD AREAS THAT ARE MORE DEFENSIVE IN NATURE, HEALTH CARE AND EVEN MATERIALS, ALL REFLECTING SOME OF THE BROADER CONCERNS OF WERE TARIFFS MIGHT TAKE US. WHERE TAX POLICY MIGHT TAKE US. HOW ONE IS THINKING ABOUT THE EFFECTS
THAT POTENTIALLY COME WITH THIS NEW ADMINISTRATION. SCARLET: POSTELECTION IT HAS ALL THE BEEN ABOUT POSITIONING FROM WHAT WE THINK A TRUMP ADMINISTRATION WILL DO ABOUT POLICY. WHAT HAS THE EARNINGS PICTURE SHOWN US IN TERMS OF WHAT PEOPLE WERE EXPECTING AND WHAT WAS ACTUALLY DELIVERED? SCOTT: YOU HAVE THE Q3 REPORTS MOSTLY BEHIND US. A FAIRLY SIGNIFICANT BEAT WITH Q3 RESULTS BUT GENERALLY SPEAKING ESTIMATES DID NOT CHANGE. THEY ARE AROUND 241. ROUGHLY FLAT GOING INTO THE Q3 REPORTING PERIOD. Q3 UPSIDE LED TO Q4 DOWNSIDE. WHEN YOU LOOK AHEAD TO 2025 WE ARE IN AGGREGATE SEEING FULL S&P
EARNINGS EXPECTATIONS COME DOWN A TOUCH, WHICH IS NORMAL THIS TIME OF YEAR. BOTTOM LINE ON THIS, CURRENT CONSENSUS NEXT YEAR UP 14% S&P EARNINGS, WE ARE MODELING SOMETHING CLOSER TO 9%-10%. WE ARE LEAVING ROOM FOR FORWARD EXPECTATIONS TO COME DOWN. THERE COULD BE POLICY EFFECTS AROUND TARIFF POTENTIAL. SCARLET: WHERE DOES THAT LEAVE US IN TERMS OF WHO IS DOING THE HEAVY LIFTING WHEN IT COMES TO EARNINGS PROSPECTS? DO WE COME BACK ONCE AGAIN TO THE MAG 7 NAMES? SCOTT: NVIDIA IS STILL PREDICTING 40% EARNINGS GROWTH NEXT YEAR. THAT IS PRETTY VISIBLE. THE REST OF THE
MAG 7 UP 20%. YOU HAVE A NOTICEABLE UPWARD BUMP WITH Q3 RESULTS. THE OTHER 493 STILL TAPERING LOWER. WE WANT TO BE EXPOSED VIA GROWTH AND CYCLICALS BARBELL. THE MAG 7 COHORT IS BECOMING YOUR STABLE ARENA. WHEN YOU LOOK FOR UP AREAS OF UNCERTAINTY AROUND POLICY IMPLICATIONS, YOU COME BACK TO THE VISIBILITY WITH THE MAG7 AND THAT COMFORTING HAS US IN A POSITION WHERE WE WANT TO BE CONTINUOUS HOLDERS OF THESE NAMES. WE ARE STILL THINKING THE ULTIMATE OPPORTUNITY WILL BE A BROADENING THEME AS WE PUSH DOWN IMPROVING EARNINGS GROWTH PICTURE FOR THE BULK OF
2025. ROMAINE: WHAT ACTUALLY DOES DIVERSIFICATION LOOK LIKE IN THIS ENVIRONMENT, IN THESE SCENARIOS? WE TALK ABOUT THE GAINS WE SAW IN THE FIRST SIX MONTHS OF THE YEAR AND THE CONCENTRATION IN BIG TECH AND WE HAVE A MODICUM OF BROADENING BUT THERE ARE A LOT OF PEOPLE LOOKING THIS GIFT HORSE IN THE MOUTH AND SING THIS CANNOT BE REAL. SCOTT: RIGHT. WE LOOK AT IT THROUGH A SECTOR LENS. THE EASIEST WAY TO EXPRESS THIS IS HOW WE SEE SECTORS SETTING UP. THE COMBINATION OF FINANCIALS, ENERGY, CONSUMER DISCRETIONARY, EVEN COMMUNICATIONS SERVICES COMING INTO Q4. WE ARE
MORE OR LESS ALIGNED WITH WHERE SOME OF THE TRUMP POLICY PLATFORMS ARE TAKING US. YOU MENTIONED U.S. SMALL MID-CAP AND THIS IS A PART OF THE MARKET WERE ON A YEAR TO DATE MESSAGE HAS -- YEAR-TO-DATE BASIS HAS LAGGED THE S&P BUT IT IS PERFORMING RIGHT IN LINE WITH THE S&P. IT IS A GREAT BROADENING PLIGHT. YOU HAVE A MUCH EASIER STARTING VALUATION STARTING POINT. IF WE ARE CORRECT IN THE WAY CONSENSUS PLAYS OUT FOR NEXT YEAR, YOU WILL GET A NARROWING IN THE EARNINGS GROWTH GAP BETWEEN SMALL MID-CAP AND WHAT WE EXPECT LARGE CAP.
ROMAINE: A LOT OF PEOPLE AGREE WITH YOU OR THEY ARE HOPING FOR THE OUTCOME. SCOTT, HAVE A WONDERFUL WEEKEND. SCOTT CHRONERT GLOBAL HEAD OF ETF RESEARCH WITH CITI. A DISCUSSION AHEAD ABOUT ARTIFICIAL INTELLIGENCE AND THE START OF ANTHROPIC. HOW AMAZON IS THINKING AHEAD. SCARLET: PLUS, WITH NEW YORK MAKING A U-TURN ON PLANS TO START CHARGING DRIVERS ENTERING MANHATTAN A CONGESTION FEE, WE ENTER A CONVERSATION WITH NEW JERSEY'S PHIL MURPHY. ROMAINE: BLOOMINGDALE'S ALREADY SET UP FOR THE HOLIDAY SEASON. WE WILL TALK ABOUT THE CINEMATIC TIE UP THAT THE DEPARTMENT STORE CHAIN HAS WITH A BIG MOVIE
THAT OPENS THIS WEEKEND. ALL OF THAT AND MORE COMING UP RIGHT HERE ON "THE CLOSE" SCARLET: WELCOME BACK. AMAZON IS INVESTING AN ADDITIONAL $4 BILLION IN ANTHROPIC, ONE OF OPENAI'S BIGGEST COMPETITORS. A SEPARATE INVESTMENT IN ANTHROPIC HAPPENED EARLIER THIS YEAR. AMAZON IS WILLING TO SHELL OUT TO GET AN ARM UP IN THE ARMS RACE. WHAT DOES AMAZON GET IN RETURN FOR THESE TWO ROUNDS OF INVESTMENT? >> NOT ONLY DO THEY HAVE A LARGE MODEL, IT ACTUALLY HELPS RE-ACCELERATE THEIR CLOUD SALES IF YOU THINK ABOUT IT. WHEN IT COMES TO MICROSOFT, THEY HAVE SAID AZURE AI
WORKLOADS WOULD MAKE UP MONEY. IN THE CASE OF AMAZON, -- AMAZON ANTHROPIC PARTNERSHIP MEANS ANTHROPIC WILL BE USING AMAZON SHIPS AND THAT WILL TRANSLATE INTO REAL REVENUE. IT MAKES A TON OF SENSE FOR AMAZON. FOR ANTHROPIC, THEY DO NOT WANT AMAZON TO GO WITH OPEN SOURCE, META LEVEL CAPABILITIES. OPEN SOURCE FROM THE AMAZON SITE WOULD BE DETRIMENTAL FOR A COMPANY LIKE ANTHROPIC THAT IS COMPETING WITH GEMINI AND OPENAI. IT MAKES SENSE FOR BOTH OF THEM. SCARLET: GOOGLE HAS A RELATIONSHIP WITH ANTHROPIC, AS WELL. THE U.S. DOJ IS SEEKING TO UNWIND THAT DEAL. I'M WONDERING WHETHER
REGULATORS MIGHT TRY TO OBSTRUCT THIS DEAL IN ANY WAY. >> GOOGLE, I THINK, WAS ONE OF THE EARLIEST INVESTORS IN ANTHROPIC. AMAZON CAME IN LATER. IN THE CASE OF GOOGLE, THEY HAVE THEIR OWN MODEL AND THEY HAVE MADE MY DOHERTY INVESTMENTS IN ANTHROPIC. THEY OFFER ANTHROPIC'S MODEL ON THEIR CLOUD. THE NATIVE INTEGRATION THAT MICROSOFT HAS WITH OPENAI, THAT IS WHAT I THINK AMAZON IS TRYING TO DO WITH ANTHROPIC. GOOGLE FROM THAT PERSPECTIVE SHOULD BE OK GIVEN IT IS JUST A MINORITY INVESTMENT. ROMAINE: I AM CURIOUS WHEN WE TALK ABOUT WHICH BUSINESS MODELS ARE BETTER --
I KNOW IT IS STILL EARLY AND WHO KNOWS WHO WILL WIN THE RACE -- I KNOW YOU HAD A CHANCE TO SIT DOWN WITH THE COFOUNDER OF ANTHROPIC AND TALK ABOUT THEIR LARGE LANGUAGE MODELS. IS THERE A MEANINGFUL DIFFERENCE BETWEEN WHAT I GET HOME ANTHROPIC VERSUS OPENAI OR OTHER COMPETITORS? >> THE WAY THESE COMPANIES TRAIN THEIR MODELS, THERE IS A SECRET SAUCE WHEN IT COMES TO HOW OPENAI IS DOING THIS VERSUS WHAT ANTHROPIC IS DOING. IN THE CASE OF MEADOW LLAMA, THEY HAVE OPEN-SOURCE. IF YOU ASK THESE MODELS THE SAME QUERY, THEY DO HAVE A
DIFFERENT WAY OF GIVING YOU AN ANSWER, ESPECIALLY FROM A CHATBOT STANDPOINT. ANTHROPIC'S STRATEGY IS FOCUSED AROUND ENTERPRISE CUSTOMERS. THEY ARE NOT TRYING TO COMPETE WITH CHATGPT OR GEMINI. IF WE KEEP GETTING SMALL ENTERPRISE SOFTWARE MAKERS TO ADD MORE CAPABILITIES DRIVEN BY THEIR LARGE MODEL, WE ARE INTEGRATED IN THE ECOSYSTEM. IT IS ALL ABOUT CREATING AN ECOSYSTEM WHEN IT COMES TO LARGE MODELS. THAT IS WHAT ANTHROPIC IS SEEKING. ROMAINE: A CLOSER LOOK AT AMAZON'S NEW INVESTMENT, $4 BILLION INTO ANTHROPIC, ON TOP OF THE $4 BILLION IT ALREADY COMMITTED. EVERYONE WANTS TO KNOW WHAT THE END USE
CASE IS. INTERESTING STORY TODAY ON THE BLOOMBERG TERMINAL ABOUT HOW THIS WILL POTENTIALLY MAKE BANKS MORE EFFICIENT. A STAR ANALYST AT WELLS FARGO SEEING THIS WILL BOOST PRODUCTIVITY AT BANKS. SCARLET: THAT IS ANOTHER WAY OF SAYING MAYBE WE DO NOT NEED TO HIRE AS MANY BANKERS TO DO WHAT THEY DO BECAUSE WE WILL BE MORE EFFICIENT WITH AI. THEY WILL INCREASE BY 10% OVER THE NEXT TWO TO THREE YEARS. THAT WILL HELP BANKERS INCREASE PRODUCTIVITY AND DO LESS OF THE GRUNT WORK AND GET A LOT OF THE NUMBERCRUNCHING TAKEN CARE OF. ROMAINE: HOW RELIABLE ARE
THESE MODELS? WE KNOW FROM THE CHATGPT SIDE THERE ARE A LOT OF LIMITATIONS ON WHAT THEY CAN DO. WHEN YOU TALK ABOUT INSTITUTIONAL MODELS AND HOW THEY HELP INVESTMENT BANKERS, HOW MUCH DO YOU TRUST IT? SCARLET: I GUESS EVERYONE'S JOB WILL NO LONGER BE CRUNCHING THE NUMBERS BUT CHECKING THE NUMBERS CRUNCHED BY THE LARGE LANGUAGE MODELS. ROMAINE: THE LARGE LANGUAGE MODELS ARE JOB CREATORS? CLOSING THE GAP AMONG RETAILERS. WE WILL RECAP THE THIRD QUARTER PRINT FROM GAP. THIS IS "THE CLOSE" ON BLOOMBERG. ROMAINE: TIME NOW FOR OUR TOP CALLS. A LOOK AT SOME OF THE
BIG MOVERS ON THE BACK OF ANALYST RECOMMENDATIONS. WE WILL START WITH PDD, A CHINESE INTERNET COMPANY. DOWNGRADED TO NEUTRAL AT J.P. MORGAN. ANALYSTS EXPECT SHARES TO LAG BEHIND ALIBABA IN THE NEXT THREE TO SIX MONTHS, MAKING IT HARD TO JUSTIFY AN OVERWEIGHT. THE ABILITY ON SHORT-TERM FINANCIALS IS TOO LOW AND TELLS INVESTORS TO REVISIT THE STOCK IF AND WHEN THE TRUMP ADMINISTRATION IMPLEMENTS THOSE TARIFFS. RECEIPTS DOWN FOR A THIRD STRAIGHT DAY. BELOW $100. LET'S TAKE A LOOK AT THE CHIP DESIGN COMPANY, ARM. ANALYST SAYS RECOVERY IN DEMAND COULD DELIVER HUGE REVENUE UPSIDE FOR ARM'S FISCAL
REVENUE 2026 RATES. OVERWEIGHT RATING AT A $155 PRICE TARGET. LET'S TAKE A LOOK AT DECKERS OUTDOOR. THE ANALYST PRAISING THE EARNINGS RECORD, SUSTAINED GROWTH AND A BALANCE SHEET. HE CALLS DECKERS ONE OF THE HIGHEST QUALITY COMPANIES. SHARES HAVING A DECENT DAY, A RECORD HIGH, $192.74. WE WANT TO TAKE A CLOSER LOOK AT SHARES OF GAP. A RELATIVELY STELLAR THIRD-QUARTER EARNINGS REPORT. ALEX STRATON JOINING US RIGHT NOW FROM MORGAN STANLEY WHO HAS AN OVERWEIGHT ON GAP SHARES. THIS IS SETTING UP TO BE ONE OF THOSE GREAT AMERICAN TURNAROUND STORIES. LET'S FOCUS ON WHAT HAPPENED IN THE
MOST RECENT QUARTER AND WHY WE ARE SEEING SO MUCH ENTHUSIASM. WAS THIS AN ISSUE OF SALES? COST? INVENTORY? ALEX: IT IS A GREAT QUESTION. IT IS A LITTLE OF EVERYTHING. THE THIRD QUARTER HAS REALLY PROVIDED EVIDENCE NEW MANAGEMENT'S BRAND REINVIGORATION, TURNAROUND STRATEGY ARE PROVING SUCCESSFUL. YOU SAW THAT IN GAP MOMENTUM, INFLECTION TO GROWTH. BANANA REPUBLIC STABILIZING. SOME ENCOURAGING INFO FROM OLD NAVY. MOST IMPORTANTLY, OPERATING MARGIN IS AT ITS HIGHEST LEVEL IN SEVEN YEARS. ALL OF THOSE THINGS TOGETHER PAINT A COMPELLING PICTURE OF THIS NEW MANAGEMENT TEAM'S INITIAL STRATEGY TO TRANSFORM THE BUSINESS. ROMAINE: AS WE
GET DEEPER INTO NEXT YEAR AND THIS MANAGEMENT TEAM GETS ITS SEA LE GS, I'M INTERESTED ABOUT THE BALANCE. ONE ISSUE GAP HAD WAS THIS OUTSIZED RELIANCE ON OLD NAVY TO DRIVE GROWTH AND PROFITS. I KNOW THINGS ARE IN FLUX WITH OLD NAVY BUT WILL BE SEE A BETTER BALANCE DOWN THE ROAD WITH THE DIFFERENT BRANDS? ALEX: SURE. YOU ARE CORRECT IN TERMS OF THE OUTSIZED EXPOSURE OF OLD NAVY. HISTORICALLY OVER 50% OF THE BUSINESS. EVEN WHEN IT WAS STRONG IT WAS NOT ENOUGH TO OFFSET BANANA AND GAP WEAKNESS IN THE PAST. THE GOOD NEWS IS
A LOT OF THE REPOSITIONING COST REDUCTION OF THE GAP AND THE BANANA BANNER HAS BEEN DONE. THEY HAVE RATIONALIZED STORE FOOTPRINTS, EXITED INTERNATIONAL MARKETS THAT WERE NOT PROFITABLE FOR THEM. THEY HAVE DONE A LOT OF WORK AROUND INVENTORY, SUPPLY CHAIN, AVERAGE COST. OVER TIME OLD NAVY WILL STILL BE THE BIG DRIVER OF THIS BUSINESS. ITS VALUE POSITIONING IS IMPORTANT FOR THE BUSINESS. GAP AND BANANA TO SOME DEGREE WILL BE MORE FASHION SENSITIVE THAN THAT ONE. SCARLET: IT IS INTERESTING THAT OLD NAVY'S SALES WERE UNCHANGED DURING THE PERIOD. WE TALK ABOUT THIS TURNAROUND STORY. THE PRIME
TURNAROUND STORY EVERYONE POINTS TO IN THE RETAIL SPACE IS ABERCROMBIE & FITCH. IS GAP ON ITS WAY TO BECOMING AN ABERCROMBIE & FITCH TURNAROUND STORY? IF NOT, WHAT NEEDS TO BE DONE TO GET INTO THAT LEVEL? ALEX: SURE. THERE ARE DEFINITELY SOME PARALLELS BETWEEN THE ABERCROMBIE STORY AND WHAT THE GAP IS DOING. BANANA REPUBLIC IS LOOKING TO DISCOUNT LESS. THAT IS WHAT ABERCROMBIE DID. AT GAP, THEY ARE LOOKING TO TRANSFORM TO A SLIGHTLY DIFFERENT DEMOGRAPHIC. ABERCROMBIE MOVED THE CONSUMER TO A WEALTHY MORE STABLE CONSUMER THAT COULD SPEND MORE, WHEN THE GAP FOUND IT WAS THE
EXACT OPPOSITE. THEY ARE LOOKING TO GAIN TRACTION WITH THE YOUNGER CONSUMER AND ARE DOING A NICE JOB BY PARTNERING WITH RELEVANT BRANDS FOR GEN Z. THERE ARE PIECES YOU CAN PULL FROM THE ABERCROMBIE TURNAROUND. I WANT TO CAP YACHT THAT WITH THE FACT THAT OLD NAVY IS STILL THE BIGGEST PART OF THIS BUSINESS AND THAT IS NOT REALLY A TURNAROUND STORY. SCARLET: FAIR ENOUGH. IT IS INTERESTING THAT GAP IS GOING ITS OWN WAY RATHER THAN GOING FOR THE MORE MATURE CUSTOMER. WE TALKED ABOUT INVENTORY WORKING IN GAP'S FAVOR. HOW MUCH UPSIDE CAN YOU GENERATE FROM
INVENTORY MANAGEMENT? AT SOME POINT YOU REACH PEAK INVENTORY MANAGEMENT AND THERE IS NOT THAT MUCH MORE UPSIDE, NO? ALEX: INVENTORY IS BEING MANAGED QUITE WELL. HITTING PEAKS WE HAVE SEEN RARELY EVER. I WANT TO BE CAREFUL THAT GAP -- EVERYONE HAS MADE ROBUST CHANGES. BEFORE GAP, AS WE MOVE FORWARD FROM AN INVENTORY PERSPECTIVE, THERE IS ROOM FOR FURTHER IMPROVEMENTS, WHETHER IT IS CHANGING OR SUPPLY CHAIN EXPOSURE. YOU CAN ALWAYS BE FASTER. THE BEST REGIONS ARE THE FASTEST. NEVER SAY NEVER. SCARLET: REALLY APPRECIATE IT. ALEX STRATON OVER AT MORGAN STANLEY. COMING UP, WE HAVE OUR CONVERSATION
WITH THE NEW JERSEY GOVERNOR, PHIL MURPHY, ABOUT THE CONTROVERSIAL PRICING PLAN IN NEW YORK AND HOW HIS STATE IS MANAGING ITS BUDGET AND RESPONDING TO THAT. THIS IS "THE CLOSE" ON BLOOMBERG. ROMAINE: JUST ABOUT 3:30 P.M. IN NEW YORK. THIS IS THE COUNTDOWN TO "THE CLOSE," I AM ROMAINE BOSTICK. SCARLET: I AM SCARLET FU. EVERY DAY THE S&P 500 HAS GAINED IT HAS BEEN SLOW AND STEADY. ROMAINE: JUST .2% BUT WE ARE UP MORE THAN 1% ON THE WEEK. IT IS SHAPING UP TO BE A GOOD YEAR. INCREMENTAL GAINS ARE GOOD. SCARLET: THAT IS WHERE
THEY CALL IT A MELT UP. LET'S TALK ABOUT NEW YORK'S POLARIZING CONGESTION PLAN BECAUSE IT IS BACK ON AND STRIKING THE WRONG TONE. STRIKING A NEGATIVE TONE WITH THE NEIGHBORING STATE, NEW JERSEY. WE SPOKE WITH THE NEW JERSEY GOVERNOR ON HIS EFFORTS TO FIGHT THE FEE. GOV. MURPHY: WE WILL TRY LIKE HECK. I THINK WE HAVE THE STRONGEST ENVIRONMENTAL RECORD OF ANY STATE IN AMERICA OVER THE LAST SEVEN YEARS. I AM PROUD OF THAT. WE ARE NOT AGAINST LOWERING POLLUTION. BUT THERE IS A TIME AND A PLACE AND A DEAL THAT WORKS FOR NEW JERSEY
COMMUTERS AND THOSE THAT DON'T. THIS DISPLAY SYSTEM POLLUTION TO NEW JERSEY, IT DOES NOT GET RID OF IT. IT IS AN ENORMOUS FINANCIAL BURDEN TO OUR COMMUTERS AND NONE OF THE MONEY COMES BACK ON OUR SIDE OF THE HUDSON. WE ALSO HAVE TRANSIT FISCAL CHALLENGES. WITH ALL DUE RESPECT TO THE MTA, WE WANT THEM TO SOLVE THEIR PROBLEMS WITHIN THE FOUR WALLS OF THE MTA LIKE WE DO WITH NJ TRANSIT. WHEN YOU HAVE FOUR TUNNELS WITH RAIL TRACKS AS OPPOSED TO TWO FOUR WHEN THE PORT AUTHORITY BUS TERMINAL IS FINISHED, THERE IS A TIME IN
A PLACE PERHAPS BUT NOT NOW. SCARLET: I WILL FOLLOW UP ON A BUNCH OF THOSE QUESTIONS. WHEN IT COMES TO CONGESTION PRICING YOU SAID YOU WERE OPEN TO A FORM OF IT. WHAT WOULD THAT PLAN NEED TO LOOK LIKE? GOV. MURPHY: I DO NOT HAVE THE PARAMETERS BUT IT WOULD NEED TO BE A REASONABLE PRICE, DISCOUNTS THAT MAKE SENSE, AN AMOUNT OF MONEY THAT COMES BACK TO JERSEY AND A TIMETABLE THAT ALLOWS COMMUTERS TO LOOK AT WHAT THEIR OPTIONS ARE. WHAT WE HAVE ASKED THE FEDERAL JUDGE -- WE ARE NOT ASKING FOR THE MOON. WE
ARE ASKING HE FORCED THE FEDERAL ADMINISTRATION TO DO AN ENVIRONMENTAL IMPACT STUDY AND WE WILL LIVE WITH THE RESULTS. ROMAINE: HAVE YOU HAD CONVERSATION SPECIFICALLY WITH THE GOVERNOR OF NEW YORK AND THE MAYOR OF NEW YORK ABOUT THOSE ISSUES? IF SO, WHAT WAS THEIR RESPONSE? GOV. MURPHY: THE GOOD NEWS IS WE START IN A GOOD PLACE WITH OUR RELATIONSHIP WITH ERIC ADAMS AND KATHY HOCHUL. WE DO A LOT TOGETHER. WE HAVE SPOKEN PERSON TO PERSON, TEAM TO TEAM. THIS HAS BEEN A MULTIYEAR PROCESS. OUR ASK HAS BEEN TO DO AN ENVIRONMENTAL IMPACT STUDY AND LET'S
GET TO THE TABLE TOGETHER. WHILE THAT IS PLAYING ITSELF OUT, LET'S TALK ABOUT WHAT THE CONTOURS CAN BE OF A DEAL WE CAN ALL LIVE WITH. ROMAINE: THIS PRICING PLAN IS TO ALLEVIATE CONGESTION AS WELL. THE IDEA THERE ARE A LOT OF FOLKS COMING INTO THE CITY THAT CERTAIN PEOPLE THINK THEY SHOULD NOT OR TAKE PUBLIC TRANSIT. IF YOU DO NOT HAVE CONGESTION PRICING, WHAT IS THE SOLUTION TO ALLEVIATE TRAFFIC CONDITIONS? GOV. MURPHY: FIRST AND FOREMOST, THE MTA WROTE THIS, THE NUMBER ONE ASPECT IS TO SOLVE THEIR FISCAL HOLE. CONGESTION AND LOWERING POLLUTION IS NOBLE
AND ONE OF THEIR OBJECTIVES, THE NUMBER ONE OBJECTIVE IS TO SOLVE THEIR FISCAL HOLE. WE HAVE THE SAME CHALLENGE AT NJ TRANSIT. WE HAVE CHOSEN TO SOLVE OUR PROBLEMS WITHIN THE FOUR WALLS OF NEW JERSEY. NEW JERSEY TRANSIT TAKES A FEW YEARS TO GET BACK ON THEIR FISCAL FEET. ALL OF THE BIG TRANSIT SYSTEMS ARE GOING TO A SIMILAR REALITY. WE FOUND A FEE THAT WILL ALLOW A BRIDGE TO A BETTER FISCAL FUTURE FOR THEM. I DO NOT KNOW WHAT THE ALTERNATIVE IS BUT I WOULD LIKE TO ENCOURAGE THEM TO PURSUE OTHER AVENUES. AS FOR
NEW YORK CITY, WE ROOT FOR NEW YORK CITY. ITS SUCCESS IS OUR SUCCESS. I DO NOT KNOW WHY FOR THE LIFE OF US WHEN PEOPLE ARE WORKING FROM HOME, STILL DIGGING OUT FROM A PANDEMIC WHY FEWER PEOPLE WOULD WANT -- WHAT NEW YORK CITY WOULD WANT FEWER PEOPLE IN NEW YORK CITY. SCARLET: COMMUTERS RELY ON IT. FRUSTRATED BY THE BREAKDOWNS THIS PAST SUMMER. YOU HAVE PLEDGED TO FIX THE SYSTEM. YOU MENTIONED A BUSINESS TAX TO SUPPORT MJT -- HOW MUCH OF THIS IS A FUNDING PROBLEM VERSUS SOMETHING BIGGER? GOV. MURPHY: IT ULTIMATELY WILL BE A
BIG FUNDING PROBLEM IF WE DID NOT FIND THE SOLUTIONS AND WE HAVE FOUND THE SOLUTIONS THAT ARE MULTI-YEAR. WE DID NOT RAISE FARES FOR SIX YEARS, THE LONGEST STRETCH IN NEW JERSEY TRANSIT. WE FINALLY RAISED THEM THIS YEAR. WE PUT IN PLACE A CORPORATE TRANSIT FEE. I'M NOT MAKING AN EXCUSE FROM THE SUMMER OF HELL. IT WAS UNACCEPTABLE TO COMMUTERS AND TO ME, PERIOD. WE PUT UP A FREE WEEK AT THE SUMMER AS A TIP OF THE CAP THAT IT WAS A MISERABLE SUMMER. WHEN YOU LOOK AT THE MESS WE INHERITED WHEN WE FIRST GOT
IN OFFICE SEVEN YEARS AGO, NJ TRANSIT HAS MADE A LOT OF IMPROVEMENTS. WE DO NOT LIKE ANYTHING LESS THAN 100% AND WE WILL KEEP FIGHTING UNTIL WE GET THERE. ROMAINE: ROMAINE MENTION CONGESTION. GOV. MURPHY: FIRST TIME I HAVE HEARD ABOUT THAT. [LAUGHTER] SCARLET: DONALD TRUMP HALTED FEDERAL FUNDING DURING HIS FIRST TERM. HE STALLED IT. HOW CONCERNED ARE YOU THAT FUNDS WILL BE HELD UP OR PULLED DURING THE SECOND TRUMP ADMINISTRATION? GOV. MURPHY: THE FUNDS ARE OBLIGATED. THAT IS AS CLOSE TO CEMENT AS YOU GET. HAVING SAID THAT, WE HAVE FOUND -- SCARLET: OBLIGATED AND DISPERSED
ARE TWO DIFFERENT THINGS. GOV. MURPHY: OBLIGATED IS A BIG STEP. THIS IS AN 8-10 YEAR PROJECT. A BIG PART OF THE PROJECT IS ONE OF THE BRIDGES. GREEN LIT BY DONALD TRUMP AS PRESIDENT IN JUNE OF 2020. I SPOKE TO HIM LAST WEEK. THE BRIDGE WILL BE COMPLETE ON TIME AND UNDER BUDGET. I ASKED HIM IF HE WOULD CUT THE RIBBON WITH ME. PRIVATELY HE SAID I WOULD VERY MUCH LIKE TO DO THAT. HE UNDERSTANDS THE REGION AND HOW IMPORTANT INFRASTRUCTURE AND MOVING PEOPLE AND STUFF AROUND IS. I AM AT THIS MOMENT WITH A HIGH
DEGREE OF CONFIDENCE. IT IS A HUGE UNION JOB, BUILDING TRADES, JOB SOURCE IN THE TENS OF THOUSANDS. I THINK THE PRESIDENT WILL BE IN THE RIGHT PLACE. ROMAINE: AND YOU THINK YOU WILL HAVE A DECENT WORKING RELATIONSHIP WITH HIM? GOV. MURPHY: WE WILL FIGHT ON STUFF. I WALK OUT OF HERE IN JANUARY OF 2026, I WILL HAVE BEEN THE LONGEST SERVING DEMOCRATIC GOVERNOR ALONGSIDE DONALD TRUMP AS PRESIDENT. WE HAVE ALREADY DONE IT FOR THREE YEARS. WE FOUGHT LIKE HECK WERE OUR VALUES WERE CHALLENGED AND OUR COMMUNITIES WERE ASSAULTED OR CHALLENGED AND WILL CONTINUE TO DO
SO BUT THAT DOES NOT MEAN WE WILL NOT AGGRESSIVELY LOOK FOR COMMON GROUND. I HAVE A GOOD RELATIONSHIP WITH THEM PERSONALLY. ROMAINE: WHEN YOU FIRST RAN FOR GOVERNOR SEVEN OR EIGHT YEARS AGO YOU RAN ON A PLATFORM OF BRINGING JOBS AND COMPANIES TO NEW JERSEY. WHAT HAS THAT PROGRESS BEEN? I'M CURIOUS IF YOU FIND YOURSELF IN COMPETITION WITH YOUR NEIGHBORING STATES -- NEW YORK INTO A SMALLER EXTENT CONNECTICUT? GOV. MURPHY: OUR STORY IS A GOOD ONE BUT IT IS INCOMPLETE. WE MADE AN ENORMOUS AMOUNT OF PROGRESS ON UNEMPLOYMENT NUMBERS, WE HAVE A LOT OF MAGNETS
IN PLACE THAT ATTRACT COMPANIES AND FAMILIES. NUMBER 1 PUBLIC EDUCATION SYSTEM IN AMERICA. ROMAINE: DO DO COMPANIES WANT TO SET UP SHOP IN NEW JERSEY? GOV. MURPHY: YOU BET. THE ONE PLACE WE LOST OUR WAY AS A STATE IS THE STARTUP COMMUNITY AND THAT HAS IMPROVED. WE HAVE HUBS IN A NUMBER OF DIFFERENT FIELDS. VENTURE CAPITAL, WE WERE NUMBER 3 IN THE NATION IN THE FIRST HALF OF THE YEAR, BEHIND ONLY CALIFORNIA AND NEW YORK. WE HAD A LOT OF WOOD TO CHOP AND MADE PROGRESS. ROMAINE: OUR EXCLUSIVE CONVERSATION WITH THE GOVERNOR OF NEW JERSEY,
PHIL MURPHY. WE DID LEARN THE FEDERAL HIGHWAY ADMINISTRATION DID SIGN OFF ON THE CONGESTION PRICING PLAN, SET TO GO INTO EFFECT ON JANUARY 5 IN NEW YORK CITY. WE WILL HAVE A CLOSER LOOK AT SOME OF THE MOVERS ON THE DAY AND THAT INCLUDES MODERNA, MAKING GAINS. WE WILL DISCUSS SOME COMMENTS ON RFK JR. THAT IS COMING UP NEXT IN OUR STOCK OF THE HOUR. THIS IS "THE CLOSE" ON BLOOMBERG. ROMAINE: SHARES OF MODERNA TRYING TO STAGE A REBOUND COMING OFF A 30% SLUMP LARGELY PRECIPITATED BY FEARS OF WHAT ROBERT F. KENNEDY, JR.'S NOMINATION COULD
MEAN FOR THE MAKER OF VACCINES. ABIGAIL DOOLITTLE JOINING US FOR OUR STOCK OF THE HOUR. RFK JR., A SKEPTIC. ABIGAIL: WE HAVE AN ANALYST SAYING HE THINKS IT IS RFK JR. NEGATIVISM AROUND MODERNA. THE TRUTH OF THE MATTER IS RFK JR. AS THE SECRETARY OF THE HEALTH AND HUMAN SERVICES WILL HAVE POWER RULING OVER THE CDC, NIH IN EMERGENCY SITUATIONS. ON THE OTHER HAND THEY BASICALLY DO JUST THE COVID VACCINE. THEY ARE NOT INTO THE CHILDHOOD VACCINE. RFK JR. IS KNOWN FOR BEING NEGATIVE AGAINST CHILDHOOD VACCINES. SOME OF THE CHILDHOOD VACCINE MAKERS ARE DOWN YEAR
TO DATE. MODERNITY IS DOWN 60% ON THE YEAR. IF YOU LOOK AT THE NUMBERS FOR MODERNA -- ROMAINE: CHILDHOOD VACCINES, WHAT ARE YOU TALKING ABOUT? MUMPS? ABIGAIL: I DO NOT REMEMBER THE EXACT ONES. THERE ARE A TON OF THEM. SOME KIDS GET 30 OR 40 VACCINES, WHICH IS AN INSANE AMOUNT. ROMAINE: 30 OR 40? SCARLET: SOMETIMES YOU HAVE TO GET THEM MORE THAN ONCE. ABIGAIL: DOCTORS WILL NOT ALLOW KIDS TO BE AT PRACTICE IS IF THEY DO NOT GET THE VACCINES. DR. PRACTICES, TOO, PEDIATRICIANS. IT IS A VACCINE NATION. I WAS SPEAKING -- ROMAINE: VACCINE
NATION? ABIGAIL: AN EASY WAY OF PUTTING THAT. VACCINE UPTAKE IS DOWN. MODERNA PUT UP $6.8 BILLION IN REVENUE LAST YEAR. THIS YEAR THEY ARE EXPECTED TO DO 52% LESS. THE REAL PROBLEM IS COMING OUT OF THE PANDEMIC AND HAS LITTLE TO DO WITH RFK JR. FOUR IT COULD COME IN IS IF HIS SENTIMENT GETS MORE NEGATIVE, PERHAPS THAT COULD PUSH ON THE BROADER SENTIMENT OF RELINQUISHING BACK ON VACCINES. RIGHT NOW I THINK MODERNA'S PROBLEM IS PEOPLE ARE NOT TAKING THE COVID VACCINE AS MUCH. BACK IN 2021, $18 BILLION. 2022, $19 BILLION. THIS YEAR, $3.2 BILLION.
SCARLET: MODERNA IS ALL ABOUT THE. COVID VACCINE. RSV A LITTLE BIT. ABIGAIL, THANK YOU. COMING UP WE WILL TAKE YOU TO THE CLOSING BELLS WITH ADAM >> THAT MAG 7 COHORT IS BECOMING YOUR STABLE ARENA. WHEN YOU'RE LOOKING FOR AREAS OF UNCERTAINTY AROUND POLICY IMPLICATIONS YOU COME BACK TO THE MAG 7 AND THAT COMFORTING HAS US IN THE POSITION WHERE WE WANT TO BE CONTINUED HOLDERS OF THESE NAMES BUT WE ARE STILL THINKING THE ULTIMATE OPPORTUNITY WILL BE A BROADENING AS WE PUSHED DOWN IN IMPROVING THE EARNINGS GROWTH PICTURE FOR THE BULK OF 2025. ROMAINE:
SCOTT CHRONERT KICKING US OFF TO THE CLOSE OVER AT CITI WITH THE MAG 7 TRAILING THE PACK ON THE DAY IN THE WEEK. THIS HAS BEEN ABOUT THE ROTATION TO SOME OF THE MORE CYCLICAL POCKETS OF THE MARKET. SCARLET: THAT IS WHAT I WANTED TO LOOK AT THE S&P EQUALLY WEIGHTED INDEX. GAINING .75%. A LOT OF THAT ROTATION IS HEADING INTO THINGS LIKE FINANCIALS. ALSO THE INDUSTRIAL COMPANIES. WE WILL SEE IF THIS CONTINUES. RIGHT NOW IT IS HOLDING UP WELL. THE BLOOMBERG DOLLAR INDEX HAS AN EIGHTH STRAIGHT WEEK OF GAINS. ROMAINE: I WONDER WHEN THIS
WILL BE A BIGGER PART OF THE STORY. WHEN YOU TALK ABOUT CORPORATE EARNINGS, THE DOLLAR WILL PLAY A BIG FACTOR. THERE HAS TO BE SOME BALANCE WITH THE POTENTIAL POLICIES THAT MIGHT BE IMPLEMENTED IN LATE JANUARY. SCARLET: IT IS NOT USUAL BC A STRONGER DOLLAR AND STRONGER OIL BUT THERE IS GEOPOLITICAL TENSIONS. RUSSIA-UKRAINE. HELPING TO LIFT OIL PRICES. ROMAINE: STILL KEEPING AN EYE ON BITCOIN, IT HAS NOT YET GOTTEN TO THE $100,000 MARK. ADAM TURNQUIST JOINING US FROM LPL FINANCIAL. JUST ABOUT EIGHT MINUTES UNTIL THE CLOSING BELLS. THERE HAS BEEN A LOT OF DISCUSSION ABOUT
THIS RALLY. EVERYONE SIMPLY POINTS TO THIS MOST RECENT EARNINGS SEASON AND THE LATEST SET OF ECONOMIC DATA AND THERE ARE A LOT OF SMART FOLKS WHO DO NOT SEE MUCH OF AN IMPEDIMENT FOR FUTURE GAINS. HOW ABOUT YOU? ADAM: WE GOT THROUGH NVIDIA EARNINGS UNSCATHED. EVEN THOUGH THE DISAPPOINTED ON THE GUIDANCE, HERE WE ARE ON FRIDAY COMING INTO "THE CLOSE" WITH AN UP WEEK FOR THE S&P. THAT THEME IS DRIVING THIS. INVESTORS ARE ROTATING OUT OF THE STRETCH VALUATION AREA OF TECH AND SOME OF THE MEGA-CAP NAMES. FINANCIALS, INDUSTRIALS. THAT DOES SUGGEST THE MARKET IS
A SUSTAINABLE ALBEIT A LITTLE BIT STRETCHED, OVERBOUGHT ON A SHORT-TERM BASIS BUT NOTHING THAT WOULD SUGGEST A TOP IS IN PLAY. ROMAINE: WHAT DO YOU MAKE OF THE ROTATION WHEN YOU LOOK AT THE BEST PERFORMING INDICES? GOLD, OIL, A LOT OF INDICES. WHAT YOU WILL NOT FIND IS THE SEMI CONDUCTOR INDEX OR THE MAG 7. THEY HAVE DONE WELL BUT NOWHERE NEAR THE TOP 15 OR TOP 20 BIGGEST MOVERS. ADAM: I THINK THAT SURPRISES A LOT OF PEOPLE. WHEN YOU LOOK AT A NAME LIKE NVIDIA, THE POSTER CHILD OF AI, IT HAS NOT MADE A
NEW HIGH FOR QUITE A WHILE. THE SEMI CONDUCTOR INDEX HAS NOT MADE A NEW HIGH SINCE JULY. THE S&P HAS CONTINUED TO MAKE NEW HIGHS SINCE BREAKING OUT IN SEPTEMBER. YOU CAN SEE THE RELATIVE STRENGTH BREAK DOWN IN THE SEMI CONDUCTOR SPACE. WE VIEW THAT AS A CHARACTER CHANGE IN THE BULL MARKET. THE FIRST FEW YEARS WAS ALL ABOUT SEMI CONDUCTORS. WE HAVE STARTED TO SEE THE TREND ROLLOVER. THE GOOD NEWS FOR SOME OTHER CYCLICAL AREAS IS THEY ARE PICKING UP THE SLACK OF THE SEMI CONDUCTOR WEAKNESS. SCARLET: YOU DO NOT SEE TOO MUCH PERMANENT
DAMAGE? ADAM: NOT YET. I THINK IT IS MORE IN THE CONSOLIDATION PHASE. IT IS RETESTING ITS UPTREND OFF THE BEAR MARKET LOWS. THAT WILL BE A BIG TEST FOR THE BULLS. SEPTEMBER LOWS, AUGUST LOWS. IF YOU GET TO THE AUGUST LOWS, IT IS A 10% DOWN FROM THE CURRENT LEVELS. THEY HAVE HAD A MASSIVE RALLY. THESE TAKE TIME TO REALLY CONSOLIDATE, DIGEST THE GAINS. THAT IS WHAT WE ARE SEEING WHEN YOU LOOK AT THE REACTION TO NVIDIA. DEEP REVENUE, DEEP ON EPS GUIDED, A BIT LIKE -- $400 MILLION ABOVE EXPECTATIONS. THEY WERE LOOKING FOR THE
$1 BILLION BEAT AND THAT IS WHERE WE ARE. IT WILL TAKE A WHILE TO PLAY OUT AND FOR THOSE EXPECTATIONS TO COME BACK TO REALITY. SCARLET: INVESTORS LOOKING FOR PERFECTION PLUS MORE ON TOP OF THAT. YOU ARE THE RARE TECHNICAL ANALYST WHO ALSO LOOKS AT EARNINGS AND FUNDAMENTALS. LET ME ASK YOU A DUMB QUESTION. WE ARE WAITING FOR BITCOIN TO HIT $100,000. CAN YOU DO TECHNICAL ANALYSIS ON BITCOIN? DOES NOT MATTER TO BITCOIN'S PRICE ACTION? ADAM: ABSOLUTELY. FROM A TECHNICIAN STANDPOINT THAT IS THE ONLY WAY TO LOOK AT IT. THERE IS A LOT OF DEBATE
ON HOW TO VALUE IT. I WILL NOT ADD ANY COMMENTARY. . IT BOILS DOWN TO TECHNICALS AND MOMENTUM AND THAT IS WHAT WE ARE SEEING WITH BITCOIN RALLY AND THE GRAVITATIONAL PULL TO THE ROUND NUMBER IS VERY PRESENT AS WE WAIT FOR THE $100,000 PRINT. ROMAINE: YOU COMBINED THAT WITH MOVES IN THE STOCK MARKET, THIS FEELS RISK-ON. WE STARTED THE SHOW WITH THE IDEA OF HEDGING, THE LACK THEREOF, IN THIS MARKET. I AM CURIOUS IF THERE IS ANY HISTORICAL PARALLELS WHERE WE HAVE SEEN THESE UPWARD MOVES IN ASSET PRICES AND DOWNWARD MOVES IN PEOPLE BUYING
PROTECTION? ADAM: THERE HAS NOT BEEN A LOT OF PROTECTION BUYING THIS YEAR. IF YOU LOOK AT THE VIX, IT WILL PROBABLY NORMALIZE AROUND ITS LONGER-TERM AVERAGE, 19.5-20 AS WE GO INTO 2025 AND THAT IS WHAT YOU SHOULD EXPECT AS CONCENTRATION RISK PLAYS OUT. THE TOP 10 NAMES IN THE S&P WEIGHTING 37% OF THE INDEX. THAT LEAVES A LOT OF POTENTIAL FOR VOLATILITY IF SOME OF THOSE THEMES DO NOT PLAY OUT. WE HAVE NOT SEEN MUCH HEDGING. IT HAS BEEN RISK-ON. NOT JUST BITCOIN RALLYING, BUT HIGH VIX. DISCRETIONARY OVER CONSUMER STAPLES AS WE LOOK TO ASSESS
RISK. ROMAINE: ADAM TURNQUIST, CHIEF TECHNICAL STRATEGIST AT LPL FINANCIAL ACCOUNTING IS DOWN TO THE CLOSING BELLS. 2.5 MINUTES UNTIL WE GET THERE. WHEN YOU LOOK AT THE INDEXES, FINANCIALS AND INSURANCE COMPANIES ARE MOVING, OIL COMPANIES AND SMALL CAPS LIKE THE RUSSELL 2000 AND THE S&P 400. SCARLET: CYCLICALS. NOT SEMI CONDUCTOR COMPANIES. IRONIC BECAUSE NVIDIA FINALLY ANNOUNCED RESULTS AND WE CAN WRAP UP THE SEMI CONDUCTOR EARNINGS SEASON AND THE AI STORY. IT WAS A DUD. ROMAINE: THE AI STORY STILL INTACT. A FULL BREAKDOWN OF ALL THE MARKET COVERAGE STARTS NOW. ♪ >> THE CLOSING BELL. BLOOMBERG'S
COMPREHENSIVE CROSS-PLATFORM COVERAGE OF THE U.S. MARKET CLOSE STARTS RIGHT NOW. ROMAINE: RIGHT NOW WE ARE TO MINUTES AWAY FROM THE END OF THE TRADING DAY. ROMAINE BOSTICK ALONGSIDE SCARLET FU, TAKING YOU THROUGH THE CLOSING BELL. A GLOBAL SIMULCAST STARTS RIGHT NOW. WE ARE JOINED IN THE RADIO BOOTH BY NONE OTHER THAN MATT MILLER AND EMILY GRAVELLE. WE WELCOME AUDIENCES ACROSS PLATFORMS INCLUDING OUR PARTNERSHIP WITH YOUTUBE. SETTING UP FOR A FIFTH STRAIGHT DAY OF GAINS. THE BIG STORY HAS BEEN THE ROTATION. MATT: THAT IS A STORY I HAVE BEEN HEARING ABOUT FOR A FEW WEEKS. THE
SET UP IS RIGHT FOR A ROTATION INTO SMALL CAPS. YOU DID NOT REALLY GET AN EARNINGS REPORT FROM NVIDIA. IT WAS BETTER THAN A STICK IN THE EYE BUT IT WAS NOT WHAT YOU SAW NVIDIA DO THE LAST FEW QUARTERS. MAYBE IT TOOK SOME WIND OUT OF THE SAIL MAYBE IT GAVE PEOPLE PERMISSION TO CONTINUE ROTATING INTO THE RUSSELL. EMILY: THE NASDAQ 100 STILL PROBABLY GOING TO FINISH IN POSITIVE TERRITORY. SOME INDIVIDUAL NAMES CANNOT COMPARE TO THE SMALL CAPS, RUSSELL 2000, AND THE DOW. SCARLET: I FEEL LIKE ANOTHER BIG STORY OF THE WEEK WAS BITCOIN.
WE ARE ALL WATCHING FOR THE $100,000 LEVEL. THE ANALYST SAYS TECHNICAL ANALYSIS IS THE ONLY WAY YOU CAN EXPLAIN IT. [CLOSING BELLS] ROMAINE: WE GET THE CLOSING BELLS IN NEW YORK. YOU ARE LOOKING AT A STRONG WEEK FOR MOST OF THE MAJOR INDICES. THE DOW JONES INDUSTRIAL AVERAGE WILL CLOSE HIGHER BY 400 POINTS OR ROUGHLY 1% ON THE DAY PAID THE S&P 500 ADDING ABOUT .3%, UP 20 POINTS, BUT STILL BELOW THE SIX THOUSAND LEVEL. -- 6000 LEVEL. THE STAR OF THE SHOW, SMALL CAPS, 1.8% GAIN ON THE RUSSELL 2000. 1.1% GAIN ON DOW TRANSPORTS.
MATT: I GUESS A BIT OF A BARBELL SITUATION, IF I CAN USE THAT TERM. THE DOW IS MUCH BIGGER CAP STOCKS. THE DOW IS UP ONE FULL PERCENT. IT IS THE DOW AND THE RUSSELL THAT ARE THE BIG WINNERS IN TERMS OF THE MAJOR U.S. AVERAGES. SCARLET: WELL SAID. YOU HAVE 381 GAINERS. LET'S LOOK AT THE BIG RED SLICED THAT IS TECH DOWN ABOUT .25%. COMMUNICATION SERVICES LOWER. THE GAINERS ARE CYCLICALS WE HAVE BEEN TALKING ABOUT, INDUSTRIALS UP 1.4%. FINANCIALS UP 1.1% AS WELL. MATT: IN TERMS OF THE GAINERS, THERE ARE A LOT OF THEM
BUT THEY ARE RELATIVELY SMALL STOCKS. THESE ARE NOT THE BIG NAMES YOU ARE USED TO HEARING EVERY DAY WHICH MAY BE A RELIEF FOR THOSE OF YOU SICK OF HEARING ABOUT NVIDIA EVERYDAY. THIS COMPANY IS INTERESTING. THEY AUCTION OFF DAMAGED CARS FOR INSURANCE COMPANIES. THEY CLOSED UP 10% OR MORE, THE BIGGEST GAIN SINCE MARCH. THEY REPORTED FOR SCHOOLS FIRST QUARTER REVENUE THAT ROSE FROM A YEAR AGO AND BEAT ESTIMATES. HELEN OF TROY SHARES CLIMBING AFTER THEY AGREED TO BUY A NAIL CARE COMPANY, $240 MILLION DEAL, SUBJECT TO PERFORMANCE OVER A FEW YEARS. HELEN OF TROY
SHARES CLIMBING. MODERNA IS A COMPANY WE ALL HEARD OF GOING THROUGH THE PANDEMIC. THOSE SHARES UP AFTER THE COMPANY SAID R.F.K., JR.'S, NOMINATION IS UNLIKELY TO MEET REMOVAL OF VACCINES. I GUESS THEY DID NOT NEED TO SAY THAT FOR US TO BELIEVE IT. I HAVE HEARD THAT FROM A NUMBER OF EXPERTS THE PAST COUPLE OF DAYS. SHAREHOLDERS SEEM TO BE SUPPORTED BY THE COMMENTS FROM THE COMPANY DIRECTLY. I THREW IN ONE FOR MY NAMESAKE, MATTHEWS INTERNATIONAL. I THOUGHT IT WAS INTERESTING BECAUSE THEY MAKE CASKETS, MEMORIALS, AND CREMATION EQUIPMENT. THAT IS A DEMOGRAPHICS PLAY. SHARES ROCKETED
TODAY UP 21%. CREMATION EQUIPMENT I GUESS IS A HOT SELLER RIGHT NOW. FOURTH QUARTER SALES BEAT WALL STREET EXPECTATIONS. EMILY: IF YOU HAVE NOT HEARD ALL OF THE COMPANIES MATT PICKED FOR HIS GAINERS, YOU MOST LIKELY HEARD ABOUT THE DECLINERS TODAY. NVIDIA CLOSED BELOW ARE OVER 3% TODAY AFTER IT IS ALREADY UP 186% YEAR-TO-DATE. SPEAKING AFTER THE RELEASE OF QUARTERLY RESULTS, THE CHIEF OFFICER SAID THE HIGHLY ANTICIPATED PRODUCTS WILL SHIP AMID STRONG DEMAND BUT THE PRODUCTION AND ENGINEERING COST OF THE CHIPS WILL WEIGH ON PROFIT MARGINS. I'M ALSO LOOKING AT IN INTUIT, TECH SOFTWARE COMPANY.
ESTIMATES OF $3.23 PER SHARE. BARCLAYS SAID THEY DID NOT SEE MUCH IN THE RESULTS TO CHANGE THE INVESTMENT STORY BUT STILL LOWERED THE PRICE TARGET ON THE STOCK TO SEVEN 75 FROM 800. THAT STOCK CLOSING DOWN ALMOST 6%. GOOGLE, THIRD STRAIGHT DAY OF DECLINES, CLOSING AT THE LOWEST LEVEL SINCE OCTOBER 24. THE NEWS TODAY THAT ALPHABET RISKS A FORMAL U.K. INVESTIGATION OVER THEIR DOMINANCE OF WEB BROWSERS ON MOBILE PHONES. THEY SAID IN THE INTERIM FINDINGS APPLE AND GOOGLE CAN MANIPULATE BROWSERS. I PICKED GOOGLE AS A DECLINER BECAUSE APPLE FINISHED IN THE GREEN. ROMAINE: LET'S TALK
YIELDS. INTERESTING STORY THIS WEEK IN YIELDS. LET'S START WITH THE TWO-YEAR YIELD. FOR FIVE STRAIGHT WEEKS, WE HAVE SEEN THAT GO UP. WE ARE NOW RIGHT AROUND THE 4.4% LEVEL, UP ABOUT SEVEN BASIS POINTS ON A WEEKLY BASIS. THE REST OF THE CURVE IS A MIXED BAG. A DROP ON THE 10-30-YEAR YIELD. A LOT OF PEOPLE -- A DROP ON THE 10-YEAR AND 30-YEAR YIELDS. THE MOST SENSITIVE TO ANY CHANGES BY THE FED IS THE 2-YEAR AND SOMETHING TO KEEP AN EYE ON AS WE CLOSE OUT THE WEEK. ROMAINE: HAS -- MATT: HAS EVERYONE SEEN
THE JAGUAR MARKETING CAMPAIGN FOR THE REBRANDING? POSSIBLY THE SMARTEST CAMPAIGN I HAVE SEEN IN MY LIFE. EMILY: WHERE IS THE CAR? MATT: THERE IS NO CAR IN THIS VIDEO. ROMAINE: I LOVE IT.T I GUESS THEY ARE TRYING TO PROJECT A NEW AGE KIND OF WOKE MESSAGE OR MAYBE JUST TASTELESSNESS. I DON'T KNOW WHAT IT IS. I HAVE 17 MILLION FOLLOWERS ON INSTAGRAM. LAST TIME I CHECKED, THERE WERE 35,000 COMMENTS, NONE POSITIVE. THERE IS THE LOGO. THE CAPITAL G AND U IN THE MIDDLE AND NOTHING ELSE. ROMAINE: TOTALLY WOKE. MATT: I DO NOT KNOW WHAT THEY
ARE SELLING. MAYBE IT IS NOT WOKE. I DO NOT KNOW WHAT THEY ARE TRYING TO SAY. EMILY: I JUST WANT TO SAY THE FICTIONAL DAWN DRAPER IS ROLLING IN HIS GRAVE, IF YOU REMEMBER THE "MAD MEN" WHEN HE DID THE JAGUAR ADD. I DO NOT KNOW WHY THEY DID NOT PULL FROM THAT? SCARLET: MCDONALD'S VALUE MEALS ARE BEING CHANGED UP. THIS IS BECAUSE THE OLD VALUE MEAL IS NO LONGER FEASIBLE BECAUSE OF INFLATION. ROMAINE: ARE THEY LOWERING PRICES? SCARLET: THEY ARE NOT LOWERING PRICES. THEY ARE NO LONGER OFFERING THE VALUE MEAL PRICES. ROMAINE: THIS IS
A VALUE MEAL BUT NOT THE VALUE MEAL. GOT YOU. YOU ARE A MCDONALD'S PERSON. SCARLET: I OFTEN GO. I REGRET IT THE MINUTE I GO. WELL, THAT IS NOT TRUE. I AM ENJOYING EVERY MINUTE UNTIL I AM DONE WITH THE FRENCH FRIES AND THEN I REGRET IT. MATT: THE BIGGEST VALUE TO ME IS NOT HAVING A HEART ATTACK IN THE NEXT COUPLE OF DECADES BECAUSE I HAVE AVOIDED MCDONALD'S. SCARLET: EMILY, ARE YOU A MCDONALD'S FAN? EMILY: I LIKE THE FRENCH FRIES. I'M STAYING AWAY FROM THE QUARTER POUNDER. MATT: WHAT DO THEY HAVE? E. COLI? I
GUESS THAT WAS THE ONIONS. SCARLET: THE LETTUCE? THE ONIONS. MATT: IT HAS BEEN A PLEASURE. I KNOW CAROL USUALLY HAS A WELL-VERSED STATEMENT AT THE END OF THE SIMULCAST BUT I DO NOT KNOW WHAT IT IS. THANKS TO OUR VIEWERS ON BLOOMBERG RADIO AND BLOOMBERG TELEVISION? THANK YOU! BYE! SCARLET: HAVE A GREAT WEEKEND. ROMAINE: STICK WITH US. MORE COVERAGE COMING UP ON BLOOMBERG TELEVISION. WE WILL SIT DOWN WITH THE CEO OF THE AI DRIVEN HAIRCARE BRAND COMING UP IN A SECOND RIGHT AROUND THE CLOSE ON BLOOMBERG. SCARLET: WELCOME BACK TO "THE CLOSE." I AM SCARLET
FU. ROMAINE: I AM ROMAINE BOSTICK. THE MARKETS CLOSING OUT THE WEEK ON A HIGH NOTE. THE GAINS ON THE DAY MAY BE INCREMENTAL. .4% ON THE S&P 500. RELATIVELY STRONG ON A WEEKLY BASIS. YOUR OUTPERFORMER AGAIN WAS THE RUSSELL 2000 UP ABOVE 4.5%. YIELDS WERE DOWN ON THE 10-YEAR BUT ROSE FOR A FIFTH STRAIGHT WEEK ON THE TWO-YEAR. CONTINUE TO SEE GOLD AND THE DOLLAR ELEVATED. BITCOIN TRADING AT THE $99,000 LEVEL. WHERE WILL YOU BE WHEN IT HITS $100,000? SCARLET: LET'S LOOK AT SOME OF THE DAY'S BIGGEST MOVERS, STARTING WITH SUPER MICRO UP 78% FOR
THE WEEK, THE BEST WEEK ON RECORD. THEY HIRED A NEW AUDITOR TO REPLACE EY, ALL PART OF THE EFFORT TO STAY LISTED ON THE NASDAQ. TBD ON THAT. INTUIT DOWN ALMOST 6%, THE MAKER OF THE ROBOTAXIS PREPARATION SOFTWARE. THEY MISSED ANALYST ESTIMATES EVEN THOUGH THEY HAVE SOME NEW AI PRODUCTS THAT MAY BE HAVE CHANGED THE TRAJECTORY. WOULD YOU TRUST AI TO DO YOUR TAXES? ROMAINE: LET'S GET TO FACTOR FRIDAY. CHRIS JOINING US TO TALK ABOUT HOW THE MARKETS PERFORMED ON THE WEEK. I KNOW YOU HAVE BEEN LOOKING AT THE LONG SHORT FACTOR WHICH HAS BEEN
A RELATIVELY POSITIVE TRADE MOST OF THE YEAR. >> I THINK IT IS SAFE TO SAY 2024 WILL BE A STRONG YEAR FOR FACTORS. THE TRADITIONAL FACTOR IS LONG/SHORT. THREE OF FOUR MAJOR FACTORS ARE UP ON THE YEAR. LOW-VOL IS A SURPRISE AND HAS DONE WELL. ROMAINE: YOU ARE SAYING WITH THAT TRADE YOU ARE LONG LOW VOLATILITY AND SHORT HIGH VOLATILITY. THIS HAS BEEN A VOLATILE YEAR? >> THE LOW VOLATILITY GROUP HAS DONE BETTER. YOU PUT MORE MONEY INTO LOW-VOL STOCKS AND LESS MONEY INTO HIGH-VOL STOCKS SO YOU ARE TRULY MARKET NEUTRAL. THE ONLY ONE THAT
IS DOWN IS VALUE BUT EVEN THAT IS RELATIVELY MINOR. SCARLET: IF YOU WERE JUST LONG THE S&P 500, YOU WOULD BE UP 25% THIS YEAR. WHICH LONG SIDE FACTOR HAS DONE THE BEST THIS YEAR? >> MOMENTUM IS UP OVER 30%. WE MEAN THE LONGEST QUINTILE WITHIN THE RUSSELL. YOU SAID 25% FOR THE S&P 500. THAT IS A MARKET WEIGHT INDEX. EQUAL WEIGHT RUSSELL IS ONLY ABOUT 30%. THE ONLY ONE LAGGING IS VALUE BUT ONLY BY ABOUT 9%. LONG/SHORT FACTORS HAVE DONE WELL. IT HAS BEEN A STRONG YEAR FOR FACTOR INVESTING. ROMAINE: WITH BOTH SIDES OF
THE TRADE, YOU HAVE TO LOOK AT CORRELATIONS. YOU WANT A NEGATIVE CORRELATION. LET'S TAKE MOMENTUM AND VALUE. WHAT DOES THE CORRELATION LOOK LIKE? HAS IT CHANGED? >> THAT IS THE MOST-WATCHED CORRELATION ON FINANCE, THEY ARE CLASSICALLY NEGATIVELY CORRELATED. WHEN YOU PUT THEM TOGETHER IN A PORTFOLIO, IT LESSENS YOUR RISK. MOMENTUM IS UP 13%, LONG/SHORT VALUES DOWN 3%. THEY ARE NEGATIVELY CORRELATED. THE OTHER CORRELATION FLAG IS LONG/SHORT QUALITY VERSUS THE MARKET. YOU ARE SAYING, DOES THIS GROUP OF STOCKS FOLLOW THE OTHER GROUP OF STOCKS AT THE MARKET GOES UP OR DOWN? HIGH-QUALITY STOCKS OUTPERFORM WHEN THE
MARKET GOES UP. THAT IS OPPOSITE TO YEARS AGO WHEN IT WAS NEGATIVELY CORRELATED. THEY WERE THEN SAFE HAVENS AND NOW THEY ARE BULL MARKET FAVORITES. ROMAINE: WHAT ARE YOUR THOUGHTS ON CONGESTION PRICING? CHRIS: I DON'T THINK WE HAVE ENOUGH TIME. SCARLET: ARE YOU IN THE AREA? STRONG FEELINGS. CHRIS CAIN OF "BLOOMBERG INTELLIGENCE" IS A RESIDENT OF HOBOKEN SO HE HAS THOUGHTS ON CONGESTION PRICING. ROMAINE: I DO NOT DRIVE SO I COULD NOT CARE LESS HONESTLY. [LAUGHTER] SCARLET: INTERESTING. PEOPLE ARE ARGUING ABOUT THIS. ROMAINE: PLACE OF PRIVILEGE, I EMBRACE IT. SCARLET: NEXT, WE FOCUS ON THE
MOVERS AND SHAKERS. THIS IS "THE CLOSE" SCARLET: IT IS TIME FOR THE TOP THREE WHERE WE NAME DROP THE PEOPLE DRIVING SOME OF THE MOST TALKED ABOUT STORIES. DANIEL JONES IS THE NEW YORK GIANTS QUARTERBACK LEAVING THE TEAM. HE SIGNED AN EXTENSION WITH THE GIANTS LAST YEAR. LOST OUT ON THE QB1 ROLE EARLIER THIS WEEK AND ASKED TO BE RELEASED. ROMAINE: CALLING YOU MAY QUARTERBACK IS KIND OF GENEROUS. WHAT IS GOING ON WITH YOUR NEW YORK TEAMS? SCARLET: AND HAS NOT BEEN A GOOD YEAR. ROMAINE: AARON RODGERS HAS NOT QUITE DONE ANYTHING. SCARLET: BOTH TEAMS
ARE IN REBUILDING MODE. I WILL BE GENEROUS. ROMAINE: A LONG REBUILD FOR BOTH. LET'S TALK ABOUT SOMETHING HAPPIER. LINDSAY LOHAN, REMEMBER HER? REMEMBER "THE PARENT TRAP"? SCARLET: HER BEST MOVIE. ROMAINE: SHE BASICALLY PLAYED HERSELF, 20. -- A TWIN. SHE SAID SHE TOLD MICHAEL EISNER SHE SHOULD HAVE GOTTEN TWO PAYCHECKS FOR PLAYING TWINS, AND I AM ON HER SIDE. TWO DIFFERENT ROLES, THAT SHOULD BE TWO DIFFERENT PAYCHECKS. SCARLET: THE MOST AMAZING THING IS SHE MADE THE COMMENT WHEN SHE WAS 12 YEARS OLD. APPARENTLY, THAT WAS THE FIRST AND ONLY TIME SHE EVER AUDITIONED FOR A MOVIE
ROLE. ROMAINE: SHE IS REALLY GLOWED UP THE PAST COUPLE OF YEARS. EVERYONE TORE HER DOWN WHEN SHE WAS HAVING ISSUES, BUT IT LOOKS LIKE SHE IS LIVING HER BEST LIFE NOW. SCARLET: GOOD FOR YOU. MITCH MCCONNELL ABOUT TO BECOME A SENATE WILD-CARD WIND FROM TAKES OFFICE BECAUSE HE IS UNLIKELY TO RUN FOR REELECTION WHICH MEANS HE CAN SPEAK HIS MIND BECAUSE HE IS NO LONGER RESPONSIBLE FOR SPEAKING ON BEHALF OF ALL SENATE REPUBLICANS. ROMAINE: HE HAS BEEN THROWING SHADE OF LATE. YOU WONDER WHY IT TOOK HIM THIS LONG TO STAND UP TO ANYTHING. THIS COULD
BE INTRIGUING. WE TALK ABOUT THE IDEA OF POLICY INITIATIVES AND CABINET APPOINTMENTS AND THINGS THEY WANT TO GET THROUGH, AND THEY NEED A UNIFIED FRONT ON THE GOP SIDE. EVEN LOSING ONE OR TWO VOTES COULD HAVE MAJOR IMPLICATIONS FOR GETTING THOSE THROUGH. SCARLET: THE NEW SENATE LEADER IS CLOSE TO MITCH MCCONNELL. THEY FORM A UNITED FRONT IN A WAY. ROMAINE: THAT HAS BEEN THE PARLER GAME, EVERYONE KEEPING AN EYE ON THE POTENTIAL CABINET PICKS BY THE TRUMP ADMINISTRATION. WE WILL NOT GET THE HEARINGS UNTIL JANUARY. WHEN THEY DO, IT WILL BE A BIG QUESTION WHETHER
THEY CAN GET THROUGH THE CONFIRMATION PROCESS. THE BIG PRIZE THAT EVERYONE IS KEEPING AN EYE ON IS TRUMP'S PICK FOR TREASURY SECRETARY. KEVIN WARSH APPEARS TO BE ONE OF THE LEADERS IN THAT SPACE. OTHER FOLKS INCLUDING MARC ROWAN AND SCOTT PERCENT ALSO IN THE RUNNING BASED -- SCOTT BESSENT ALSO IN THE RUNNING BASED ON BLOOMBERG REPORTING. EVERYONE IS FOCUSED ON THE TREASURY PICK. ONE OF THE MORE PROMINENT CABINET POSITIONS WE HAVE YET TO HEAR THE PRESIDENT ELECT SPEAK ABOUT. BASED ON THE NAMES FLOATING OUT THERE, WHAT IS THE LIKELIHOOD THOSE THREE OR FOUR NAMES IS
GOING TO BE THE WINNER IN THAT BATCH? >> FAIRLY HIGH. TRUMP WORLD HAS BEEN FAIRLY LEAKPROOF OVER TIME. WE HAVE GOTTEN GOOD INTEL ON WHO HAVE BEEN THE FRONT RUNNERS FOR VARIOUS ROLES. THAT DOES NOT MEAN HE COULD NOT ULTIMATELY MAKE A DARK HORSE PICK. MATT GAETZ WAS FIRMLY REPORTED TO HAVE NOT BEEN ON THE LIST HE WAS PRESENTED. THERE WERE A LOT OF UPS AND DOWNS AND SPECULATION. I THINK THE REPORTED FINAL THREE OR FOUR SEEM FAIRLY RELIABLE. SCARLET: THEY SEEM FAIRLY RELIABLE. IT SEEMS LIKE THEY WILL GET ONE OF THE TOP JOBS IF
NOT TREASURY SECRETARY. WHICH IS MOST QUALIFIED TO BE THE HEAD OF LABOR? >> I DO NOT WANT TO SAY THEY ARE TOTALLY INTERCHANGEABLE BECAUSE THESE ARE ALL SERIOUS PEOPLE WITH NUANCED VIEWS. BUT I THINK THEY HAVE A SIMILAR VALUE PROPOSITION FOR TRUMP. THEY HAVE ALL HAD SUCCESS IN MARKETS WHO WOULD BRING CREDIBILITY. THEY WOULD BE PERCEIVED AS HOLDING DOWN THE MORE TARIFF CAUTIOUS END OF THE POLICY DEBATE IN THE TRUMP ADMINISTRATION. DO WHOEVER DOES NOT LAND AT TREASURY WOULD BE REASONABLE AS ANOTHER CORE MEMBER OF THE WHITE HOUSE ECONOMIC TEAM. ROMAINE: I AM CURIOUS ABOUT
THE CONFIRMATION PROCESS, THE NAMES ON THE SCREEN FOR TREASURY SECRETARY I WOULD THINK WOULD HAVE A RELATIVELY EASY TIME GETTING CONFIRMED. YOU MENTIONED MATT GAETZ. THE LESS SAID ABOUT THAT, THE BETTER. I THINK MOST OF US WHEN WE SAW THAT NAME SAID THERE WAS NO CHANCE THAT WOULD GET THROUGH THE CONFIRMATION PROCESS. R.F.K., JR., ANOTHER CONTROVERSIAL PICK. DO YOU THINK THERE WILL BE PUSHBACK FROM DATE REPUBLICAN PARTY TO DISRUPT -- FROM THE REPUBLICAN PARTY DISRUPT THAT NOMINATION? >> IF I HAVE TO CIRCLE ONE AT THE MOST SERIOUS RISK OF NOT GETTING CONCERN WOULD BE HEGSETH
WHO HAS A LACK OF TRADITIONAL QUALIFICATIONS AND SOME SERIOUS ALLEGATIONS ABOUT HIS PAST CONDUCT. THAT IS ONE WHERE I THINK THERE IS OVERLAP WHEN YOU LOOK AT FOLKS LIKE MCCONNELL WHO TAKE DOD SERIOUSLY AND THE PEOPLE WHO HAVE CONCERNS ABOUT HIS PERSONAL CONDUCT. WHEN YOU LOOK AT R.F.K., THERE ARE NOT THOSE PERSONAL CONCERNS THAT HAVE NOT ALREADY BEEN AIRED IN HIS PUBLIC LIFE TO DATE. FROM WHAT I AM HEARING FROM REPUBLICANS ON THE HILL, THERE IS NOT A LOT OF COALESCING BACKLASH. I HAVE HEARD THE PHARMACEUTICAL INDUSTRY HAS DECIDED THEY WILL LAUNCH A CAMPAIGN TO
TRY TO TAKE HIM DOWN BUT I HAVE NOT SEEN CONCRETE SIGNS OF THAT. SCARLET: HEALTH AND HUMAN SERVICES SECRETARY WOULD HAVE MARKET IMPACT. THERE IS CONCERN AROUND GOVERNMENT CONTRACTS WITH THE NEW DEPARTMENT OF GOVERNMENT EFFICIENCY. THIS OFFICE IS NOT MEANT TO BE AN ACTUAL GOVERNMENT AGENCY THE WAY HOMELAND SECURITY IS, SO WE ARE NOT CLEAR HOW MUCH OF A MANDATE THEY HAVE, RIGHT? >> IT HAS BEEN INTERESTING. SOME OF THAT IS A REVERSAL OF HOW WELL THEY DID IN THE IMMEDIATE AFTERMATH OF THE ELECTION, BEING SEEN AS TRUMP WINNERS BEFORE THEY WERE SEEN AS TRUMP
LOSERS. I AM SKEPTICAL OF HOW MUCH THE DOGE WILL BE ABLE TO ACCOMPLISH. THEY ARE SITTING OUTSIDE OF GOVERNMENT. THEY NEED TO REACH THROUGH THE EXISTING GOVERNMENT APPARATUS TO FORCE THROUGH CHANGES THEY WANT TO MAKE. THEY PUT OUT A BIG OP-ED THIS WEEK ABOUT HOW THEY ARE THINKING ABOUT THEIR PLANS. IT RELIES ON PUSHING WHAT IS LEGAL AND THEN TAKING IT TO COURT, HOPING IT WILL HOLD UP. A LOT OF INTERESTING LITIGATION. SCARLET: ALWAYS APPRECIATE YOUR JOINING US. ROMAINE: WHEN WE RETURN, WE WILL LOOK BACK IN HISTORY AT THE BIRTH OF PIXAR STUDIOS AND THE
REVOLUTION IN COMPUTER ANIMATED FILMS. THE BEST-PERFORMING PIXAR FILM EVER IS "INSIDE OUT 2." WHAT WAS THE WORST PERFORMING PIXAR MOVIE OF ALL TIME? SCARLET: ROMAINE: TIME FOR A LOOK BACK ON THE DAY IN HISTORY. 1990 FIVE, DISNEY IN PARTNERSHIP WITH STEVE JOBS AND PIXAR RELEASED TOY STORY, THE FIRST MAJOR MOTION PICTURE COMPLETED COMPLETELY BY COMPUTER-GENERATED ANIMATION. THE FILM WOULD RAKE IN $40 MILLION IN ITS FIRST FIVE DAYS ON THE WAY TO A WORLDWIDE BOX OFFICE TAKE OF $365 MILLION. WHILE COMPUTER ANIMATED MOVIES ARE EVERYWHERE THESE DAYS, WHAT PIXAR UNVEILED THAT DAY WOULD WOW THE WORLD.
SOFTWARE BREAKTHROUGHS THAT MADE ANIMATION FEEL MORE LIFELIKE, INCLUDING PLOT LINES THAT BRIDGED CHILDHOOD AND ADULT THINGS THAT GAVE THE FILMS MUCH WIDER APPEAL. TOY STORY WOULD HAVE A THREE DECADE RUN OF HITS AND FUEL A PROFIT SEARCH AT DISNEY WHERE IT LEVERAGE THE SUCCESS OF THIS NEW TYPE OF ANIMATION TO FUEL THEMEPARK SALES AND MERCHANDISE SALES SO MUCH THAT DISNEY BOUGHT PIXAR. PIXAR'S SUCCESS INCLUDES $15 BILLION IN BOX OFFICE RECEIPTS AND'S BOND IMITATORS SEEKING TO REPLICATE ITS TECHNOLOGY AND STORYTELLING, INCLUDING DREAMWORKS AND ELIMINATION PICTURES, WHICH SPAWNED THE DESPICABLE ME FRANCHISE. THINGS HAVE GOTTEN TOUGH IN
THE COMPUTER ANIMATION SPACE OF LATE. THREE PIXAR FILMS RELEASED STRAIGHT TO STREAMING DURING THE PANDEMIC DID NOT LIVE UP TO THE FINANCIAL POWERHOUSES OF PREVIOUS YEARS. PIXAR'S RETURN TO THEATERS IN 2022 WITH LIGHTYEAR WAS A BUST, THE SECOND WORST BOX OFFICE PERFORMER FOR THE COMPANY. WHAT WAS PIXAR'S BIGGEST BOX OFFICE FLOP? THE TOM HOLLAND VOICED ONWARD. IT WASN'T A BAD FILM BUT HAD THE MISFORTUNE OF BEING RELEASED IN MARCH 2020 JUST DAYS BEFORE MOST OF THE U.S. ENTERED GOVERNMENT MANDATED COVID LOCKDOWNS. IT'S GROSSED JUST ABOUT $142 MILLION WORLDWIDE. DESPITE A STRING OF RELATIVE BUS IN
RECENT YEARS, PIXAR IS TRYING TO RECLAIM THE SPARK WITH SEQUELS AND SPINOFFS, THE IDEA THAT HITS FROM YESTERYEAR CAN BE REBOOTED IN A WAY THAT CAN PUT PIXAR BACK ON THE PATH TO INFINITY AND BEYOND. SCARLET: LEVERAGING IP EVERY WAY THEY CAN. GREAT STUFF. SPEAKING OF MOVIES, WICKED OPENS TODAY, HAVING TAKEN IN ALMOST $80 MILLION IN ADVANCED SCREENING S. WE SPOKE WITH BLOOMINGDALE'S ABOUT THEIR COLLABORATION WITH THE MOVIE. >> 3, 2, 1. ROMAINE: A WICKED PARENT, A LEGENDARY MUSICAL. SCARLET: AN ICONIC FLAGSHIP IN THE HEART OF NEW YORK CITY. >> IT'S BRINGING THE EXPERIENCE TO
THE CUSTOMER AND EXCITEMENT AND ENERGY. IT'S NOT ONLY ABOUT SELLING PRODUCTS BUT LIVING IN THE MOMENT, WHICH IS IMPORTANT. ROMAINE: BLOOMINGDALE'S TRANSFORMING INTO THE LAND OF OZ WITH FANS DIVING INTO THE WORLD OF WICKED. SCARLET: FROM CANDLES TO CLOTHING, THEY ARE INCORPORATING THE FRENZY AROUND THE MOVIE INTO THE SHOPPING EXPERIENCE. >> ITS TRANSACTIONAL AND WE HAVE TO BRING BACK MORE ABOUT THE STORYTELLING TO THE CUSTOMER. THIS IS ALL WE ARE WORKING ON RIGHT NOW. SCARLET: BLOOMINGDALE'S IS LEANING INTO A MORE IMMERSIVE. MODEL ROMAINE: THE NATIONAL RETAIL FEDERATION IS EXPECTING SALES TO GROW AT A SLOWER
PACE THAN LAST YEAR. >> I THINK IT HAS A BRIGHT FUTURE BUT IT HAS TO REINVENT ITSELF FROM THE PERSPECTIVE OF THE CUSTOMER. WE HAVE TO BE RELEVANT AND RETHINK. ROMAINE: IN YEAR TWO, THE CEEO OVERSEAS -- THE CEO IS RELYING ON GLOBAL STYLE AND GLOBAL SHOPPING TRENDS TO HELP PROVIDE THE U.S. DEPARTMENT STORE EXPERIENCE. >> A LOT OF INSPIRATION IN THE U.S. AND ABROAD. I THINK WE SHOULD NOT BE TO DOMESTIC FOCUSED BECAUSE WE COULD MISS SOME GOOD TRENDS. WE WANT TO DO LESS BUT BIGGER, MORE IMPACTFUL AND BOLDER. SCARLET: NO BETTER TIME TO
GO BOLD THAN THE HOLIDAY SEASON. >> WE ARE BUILDING MEMORIES AND THE SALES OF THE FUTURE BY DOING THAT AND WE HAVE TO RESERVE MOMENTS THAT ARE SPECIAL. WHEN YOU LIKE RETAIL, YOU LOVE THE HOLIDAY SEASON. ROMAINE: THAT WAS OUR CONVERSATION WITH THE CEO OF A BLOOMINGDALE'S AS THE HOLIDAY SHOPPING SEASON GETS READY TO KICK OFF THIS WEEKEND. WE GO TO BIG TECH, TIME FOR OUR SEGMENT WHERE WE HIGHLIGHT THE ENTRE NOUS'S AND TRENDSETTERS MOVING THE NEEDLE -- ENTREPRENEURS AND TRENDSETTERS MOVING THE NEEDLE. JOINING US IS CANDACE MITCHELL, OWNER OF A COMPANY THAT HELPS PEOPLE
WITH THEIR HAIR. WHERE DID YOU GET THIS IDEA? CANDACE: IN MY BATHROOM, MY HAIR WAS FRIZZY AND I THOUGHT WHY ARE THESE PRODUCTS NOT WORKING WITH MY HAIR? I USE MY BACKGROUND IN COMPUTER SCIENCE AND FOUND OUT YOUR HAIR IS AS UNIQUE AS YOUR FINGERPRINT AND THAT'S WHY IT IS SPECIFIC WHAT PRODUCTS WILL PERFORM THE BEST. I WROTE AN ALGORITHM AND DID A PROTOTYPE AND PITCHED. ROMAINE: AS OVERACHIEVERS DO AND NOW YOU'VE GOT A COMPANY AND PRODUCTS. GIVE US AN IDEA OF WHO YOU ARE TARGETING, WHAT'S THE CUSTOMER YOU ARE GOING AFTER? CANDACE: WE ARE
LIMITING TRIAL AND ERROR FOR PRODUCT JUNKIES WHO ARE TRYING TO FIGURE OUT WHAT WILL HELP MY HAIR SHINE OR RETAIN MOISTURE. WE PUT THE POWER OF AI TECHNOLOGY IN THE HANDS OF STYLISTS AS WELL, TO ANALYZE CLIENTS HAIR AND OFFER A DIGITAL HEALTHY HERE CARE PLAN BECAUSE MOST PEOPLE ARE WONDERING WHAT WORKS FOR ME? WE WANT TO BRING THE PROFESSIONALS AND EXPERTS TO THE FOREFRONT AS WELL. SCARLET: HOW DO YOU MAKE MONEY WITH THIS PLATFORM? YOU HAVE SOFTER SUBSCRIPTION LICENSING FEES AND WHO ARE SOME OF YOUR PARTNERS? CANDACE: ULTA IS ONE OF OUR BIGGEST PARTNERS,
WE OFFER PERSONALIZED RECOMMENDATIONS TO THEIR SHOPPERS. WE POWER OUR RETAILERS TO DO THAT THROUGH OUR PROCESS WHERE YOU CAN INSTANTLY INNOVATE AND ELEVATE YOUR STORE EXPERIENCE. WE ARE DOING THAT WITH OUR RETAIL INNOVATION ACADEMY. CONSUMERS CAN SUBSCRIBE TO START A DIGITAL HAIR PROFILE. YOU DON'T HAVE TO DO THE GUESSWORK OR TRIAL AND ERROR, WE RECOMMEND THE BEST PRODUCTS FOR YOU ON YOUR PHONE EVEN AS YOU CHANGE HAIRSTYLES. ROMAINE: OBVIOUSLY THIS ISN'T REALLY FOR ME, BUT I WOULD THINK YOU COULD DO SOME THING SIMILAR WITH SKINCARE PRODUCTS, TRY TO FIGURE OUT WHAT WORKS. SCARLET: TRIAL AND
ERROR. ROMAINE: I ASSUME THAT TAKES SOME OF THAT OUT OF THE EQUATION. SCARLET: EVERYONE IS LOOKING FOR A HACK SO THEY DON'T HAVE TO DO THE TRIAL AND ERROR. TALK ABOUT CONSUMER COMFORT WITH AI VERSUS PROFESSIONAL COMFORT WITH AI. CANDACE: AI HAS DEFINITELY CAUSED A LOT OF SHAKEUP IN OUR MARKETS IN TERMS OF PRIVACY BUT I'M ON THE GOOD SIDE OF AI I LIKE TO SAY BECAUSE IT CAN BE USED FOR GOOD. WE ARE USING THAT TO DELIVER THIS TECHNOLOGY TO MILLIONS OF PEOPLE AROUND THE WORLD AND THE AUTOMATED PROCESS ALLOWS US TO DELIVER PERSONALIZED
GUIDANCE. MY PHILOSOPHY IS AS DEVELOPERS WE HAVE THE POWER TO DO GOOD OR EVIL, RIGHT? LET'S USE TECHNOLOGY FOR GOOD AND SET A STANDARD FOR THE RIGHT INTEGRITY AND ETHICS TO USE IN AI PRACTICES AS WELL. ROMAINE: WELL SAID. THAT WOULD MAKE A GOOD SEQUEL TO WICKED, GOOD OR BAD AI. IN ALL SERIOUSNESS WHEN YOU TALK ABOUT GROWING THE BUSINESS FURTHER, WHAT ARE YOU LOOKING TO DO? DO YOU NEED MORE PEOPLE TO DO THAT OR INVESTORS. ARE YOU TAKING OUTSIDE MONEY OR GROWING ORGANICALLY? CANDACE: A LITTLE OF BOTH, WE'VE GROWN ORGANICALLY OVER THE YEARS BUT
WE JUST CLOSED A SEED BOUND AND WE ARE TRYING TO REACH AS MANY PEOPLE AS POSSIBLE SO THEY WILL SUBSCRIBE AND WE CAN DELIVER PERSONALIZED RECOMMENDATIONS THROUGH YOUR HAIR JOURNEY. WE ALSO DELIVER EDUCATION IN COSMETOLOGY SCHOOLS SO WE CAN SET A NEW STANDARD FOR HEALTHY HERE CARE AND TRAIN PROFESSIONALS TO BE EXPERIENCE TO CROSS ALL TEXTURES. SCARLET: THAT'S INTERESTING, YOU GET THEM WHILE THEY ARE STILL DEVELOPING THE PROTOCOL AND EXPERTISE. CANDACE: EXACTLY. SCARLET: TALK ABOUT WHAT YOU ARE DOING WITH THE METAVERSE BECAUSE YOU ARE MAKING A PLAY ON THAT AS WELL. IT HASN'T NECESSARILY TURNED
OUT THE WAY MARK ZUCKERBERG WANTED IT TO. CANDACE: I THINK WE ARE STILL IN THE VERY EARLY STAGES. IT'S ONE OF OUR SPECIAL PROJECTS BECAUSE WE WANTED TO CREATE A NEW VIRTUAL DESTINATION FOR CONTENT, COMMERCE AND COMMUNITY. WHEN YOU GO INTO OUR VIRTUAL HAIR QUARTERS AS WE CALL IT, WE HAVE DIFFERENT ROOMS FOR DIFFERENT EXPERIENCES. IN THE LAB WE ARE REEDUCATING THE MARKET AND IN THE LIVING ROOM, THE COMMUNITY GETS TOGETHER AND WE HAVE REAL CONVERSATIONS, TASTE OF TEXTURE EXPLORES CULTURAL IDENTITY THROUGH HAIR. GIVEN WHERE THINGS ARE TODAY A LOT OF PEOPLE ARE IN DISTRESS
WITH THE POLITICAL CLIMATE AND A LOT OF PEOPLE ARE SUFFERING WITH LONELINESS. DIFFERENT MENTAL HEALTH THINGS IN THERE'S A NEED FOR COMMUNITY. A PLACE OF BELONGING IF YOU WILL. I WANTED US TO BE THAT PLACE. SINCE WE ARE THE FUTURE OF HAIR, INCORPORATING SOME VIRTUAL REALITY TO ENHANCE OUR SHOPPING EXPERIENCES AND THAT'S WHAT WE ARE OFFERING TO BRANDS DOING ADVANCED TRAINING FOR PROFESSIONALS IN OUR CLASSROOM SO IT'S LIKE A NEW VIRTUAL WORLD OF HAIRCARE. ROMAINE: I FEEL LIKE NEW BUSINESSES NOW HAVE TO HAVE A MEDIA COMPONENT OR COMMUNITY COMPONENT AND IT'S NOT JUST ABOUT ADVERTISING
AND BRINGING IN CUSTOMERS. CANDACE: EXACTLY. ROMAINE: THIS IS AN INTERESTING COMMUNITY AND BRAND AND IDEA. WE WISH YOU THE BEST AND WE HOPE TO HAVE YOU BACK WHEN THE COMPANY GROWS. THAT IS CANDACE MITCHELL, FOUNDER AND CEO OF AN AI DRIVEN HAIRCARE COMPANY. SCARLET: WE THOUGHT AI WOULD BE A BIG THEME FOR MARKETS THIS WEEK BUT IT TURNS OUT NVIDIA, THE MAKER OF AI CHIPS THAT PEOPLE WERE GAGA OVER DIDN'T DO AS MUCH AS WE THOUGHT IT WOULD. ROMAINE: I ASSUME SHE DOESN'T HAVE TO BUY ONE OF THOSE BLACKWELL CHIPS. THEY ARE EXPENSIVE. SCARLET: THERE'S
A TON OF DEMAND AND THE CAN'T MAKE THEM FAST ENOUGH. LET'S LOOK AT HOW MARKETS CLOSED ON THE DAY, THE DOW INDUSTRIALS LEADING THE WAY, NVIDIA IS A MEMBER OF THE DOW, DON'T FORGET, 1% ON THE DAY, BUT THE STORY OF THE WEEK WAS ABOUT THE ROTATION INTO CYCLICAL SEGMENTS OF THE MARKET. ROMAINE: REMEMBER THE QUESTION IS HOW SUSTAINABLE IS THIS? WE SEE THE RUSSELL, THE SMALL CAPS THAT BUBBLE BACK UP AND THEN WE GET THE PULLBACK WHERE EVERY BUDDY RUSHES BACK. IT SEEMS LIKE THE MAJORITY OF THE PEOPLE WE SPEAK TO SEEM TO BE
CONVINCED THIS IS A PERSISTENT UPTREND FOR SOME OF THE SMALL CAPS. SCARLET: A LOT DEPENDS ON WHEN WE WILL GET MORE CONCRETE POLICY PROPOSALS OUT OF INCOMING PRESIDENT DONALD TRUMP. THIS IS "THE CLOSE" ON BLOOMBERG. SCARLET: NOWADAYS BEING A TOP ATHLETE REQUIRES MORE THAN RAW PHYSICAL TALENT. THERE IS BRANDING THROUGH SOCIAL MEDIA AND ENDORSEMENTS AND ATHLETES MUST LEARN TO NAVIGATE THE LEGAL WORLD OF INTELLECTUAL PROPERTY RIGHTS. JOINING US AS SOMEONE WHO KNOWS THE BUSINESS VERY WELL, MIKE DAWKINS, KNOWN AS THE GIMMICK ATTORNEY. HE COUNSELS CLIENTS WHICH INCLUDE MEMBERS OF THE WWE, ON HOW TO PROTECT
PAST, PRESENT AND FUTURE BRANDS. HE JOINS US NOW. THANK YOU FOR TAKING THE TIME. I HAD NO IDEA THERE WAS A MARKET FOR PROTECTING IP IN PRO WRESTLING. HOW DID THIS IDEA COME ABOUT? MIKE: IT CAME ABOUT BY BEING A FAN, HONESTLY. I'VE BEEN A WRESTLING FAN SINCE I WAS A KID AND I WOULD READ THINGS ON THE INTERNET AND STORIES ABOUT HOW THESE PROFESSIONAL WRESTLERS WOULD RETIRE AND LEAVE THE COMPANY THEY WERE WITH AND THEY WOULD HAVE TO GO BUY A DIFFERENT NAME, NOT THE NAME THAT MADE THEM FAMOUS OR THAT ANYBODY MIGHT KNOW
BUT THEIR RING NAME OR STAGE NAME. I THOUGHT THEY NEED SOMEBODY TO HELP THEM, WHY NOT ME? SCARLET: IS THIS LIKE NAME, IMAGE AND LIKENESS FOR PUBLIC MEMBER -- PUBLIC FIGURES IN THE ENTERTAINMENT WORLD? MIKE: IT IS, THE FOLKS ON THE SCREEN, SOME OF THEM IT IS THEIR LEGAL NAME BUT MOST OF THEM IT IS A STAGE NAME, WHAT THEY GO BY. YOU HAVE A LOT OF ACTORS AND THEIR LEGAL NAME IS NOT WHAT THEY GO BY. MOST PROFESSIONAL WRESTLERS IT IS A STAGE NAME. ROMAINE: FORGIVE ME IF THIS IS A DUMB QUESTION BUT WHAT
IS THE INTERPLAY YOU HAVE WITH THE INDIVIDUAL ATHLETES AND WRESTLERS IN THE UMBRELLA ORGANIZATION OF WWE, DO THEY NOT CONTROL THE RIGHTS TO SOME STAGE NAMES AND LIKENESSES? MIKE: IT DEPENDS ON THE COMPANY, YOU'VE GOT EVIE DEBBIE, THE BIGGEST WRESTLING COMPANY IN THE ENTIRE WORLD BUT YOU HAVE SOME OTHER COMPANIES WHERE CONTRACTS INTO SOMETHING DIFFERENT. WWE IF YOU COME IN AND YOU ARE WELL ESTABLISHED, THEY MIGHT LET YOU KEEP YOUR NAME AND LET YOU GO BY THE NAME YOU HAVE GONE BY OR THEY MIGHT ASK YOU TO REBRAND. IF YOU REBRAND, WWE OWNS THE BRAND
BUT OTHER COMPANIES THAT'S NOT NECESSARILY THE CASE. ROMAINE: WHAT'S THE PROCESS LIKE WORKING WITH WRESTLERS, IS IT EASIER TO CREATE PROTECTIONS WHEN THEY ARE JUST STARTING OUT OR WHEN THEY'VE ESTABLISHED THEMSELVES AS A PRESENCE IN PERSPECTIVE ORGANIZATIONS THAT YOU HAVE MORE LEVERAGE TO GIVE THEM THAT PROTECTION? MIKE: THE PROCESS IS SIMILAR REGARDLESS. STAGE NAMES, IT COMES TO A TRADEMARK. IT HELPS YOU ORDINATE WITH WRESTLING SERVICES, BUT ALSO IDENTIFY THE SOURCE OF THE PRODUCTS. YOU CAN START THE PROCESS BASED ON USE, I'VE BEEN USING THIS AND COMMERCE, THIS IS THE NAME I WANT TO USE, HERE
IS MY TRADEMARK AND THE EVIDENCE. YOU CAN ALSO DO IT ON INTENT TO USE. I INTEND TO USE THIS, I HAVEN'T STARTED BUT I WILL. THE PROCESS IS THE SAME EITHER WAY. WHERE BECOMES IMPORTING IS IF SOMEONE ELSE IS USING THE SAME OR SIMILAR TRADEMARK BECAUSE TRADEMARK INFRINGEMENT IS A LIKELIHOOD OF CONFUSION, NOT NECESSARILY CONFUSION BUT A LIKELIHOOD. IF YOU HAVE PRIOR USE, THAT TRUMPS ALL. THAT'S WHERE BECOMES HELPFUL, IF THERE IS A CONFLICT, SOMETHING IN THE WAY, IF YOU CAME FIRST, MECHANISMS ALLOW YOU TO GET TO THE FRONT OF THE LINE. SCARLET: I THINK
ABOUT HOW TKA GROUP NAME TO THE ROCK TO ITS BOARD OF DIRECTORS AND PART OF THE AGREEMENT HE IS ABLE TO GET FULL OWNERSHIP OF HIS TRADEMARK NAME ALONG WITH CATCHPHRASES. THAT'S KIND OF THE PINNACLE OF WHAT A LOT OF YOUR CLIENTS ARE LOOKING TO ACHIEVE, ISN'T IT? SCARLET: -- MIKE: HE STARTED IN WRESTLING AND HE HAS FAMILY LINEAGE. HIS FATHER AND GRANDFATHER, THEY WERE WRESTLERS. HE HAD SEVEN DOLLARS IN HIS POCKET AND CAME IN AS ROCKY WHICH WAS AMASH TO HIS GRANDFATHER. IT BECAME A CONGLOMERATION SORT OF NAME AND AS HE PROGRESSED AND GOT
BETTER KNOWN AND MORE POPULAR, IT MORPHED INTO THE ROCK BUT WHEN HE WENT INTO MOVIES HE DIDN'T WANT TO TRADE ON MONDAY BECAUSE HE DIDN'T OWN IT, WWE DID. HE EVENTUALLY DROPPED THE ROCK AND WAS JUST DWAYNE JOHNSON AND THERE WAS A DEAL AS PART OF HIM JOINING THE BOARD WHERE WWE ASSIGNED HIM THE TRADEMARK RIGHTS BACK SO NOW HE GETS TO OWN THEM. ROMAINE: I'M CURIOUS, I'M OLD ENOUGH TO REMEMBER HIS FATHER. DID YOU REPRESENT DUSTY RHODES AT ONE POINT? MIKE: I DID NOT BECAUSE HE HAD PASSED AWAY BUT I'VE DONE THINGS FOR HIS
SON CODY RHODES. AND I'VE ASSISTED DUSTY'S WIDOW IN VARIOUS MATTERS. SPOILER ALERT, DUSTY ROADS IS NOT HIS LEGAL NAME. I DID DO WORK WITH REGARDS TO THE TRADEMARK BUT NOT DUSTY HIMSELF. ROMAINE: I LOVED DUSTY AS A KID. I'M NOT SURE WHO YOUR FAVORITE WRESTLER IS, BUT THOSE GUYS I USED TO OF THEM. NO DISRESPECT TO THE NEW GUYS BUT THERE IS JUST SOME THING SPECIAL, ST ROADS AND THE HUNKY TOP -- DUSTY RHODES AND THE HONKY-TONK MAN. MIKE, THANK YOU VERY AND WITH US. THE GIMMICK ATTORNEY, NO GIMMICK AT ALL, HELPING WRESTLERS PROTECT NAME,
IMAGE AND LIKENESSES. SCARLET: IMAGINE IF WE TRADEMARK 20 YOUR CATCHPHRASES. ROMAINE: I WOULD LOVE IT. [LAUGHTER] WE WILL SET YOU UP WITH WHAT TO WATCH IN THE NEXT WEEK, STICK WITH US. THIS IS BLOOMBERG. ♪ ROMAINE: AS WE WRAP UP THIS WEEK LET'S PUT -- LOOK AHEAD TO MARKET MOVING EVENTS OVER THE NEXT WEEK. MONDAY, THE G-7 FOREIGN MINISTERS MEETING IN ITALY. SCARLET: THERE ARE A LOT OF GEOPOLITICAL'S THEY NEED TO SORT OUT AMONGST THEMSELVES AND WE CONTINUE WITH EARNINGS SEASON. THERE ARE STILL SOME TECH COMPANIES REPORTING. ROMAINE: ZOOM, REMEMBER THAT. TUESDAY, A MIXED BAG
OF ECONOMIC DATA AND EARNINGS. SCARLET: HOUSE PRICE INDEX A NEW HOME SALES, READ ON THE HOUSING MARKET, AND CONSUMER CONFIDENCE AND FOMC MINUTES. ROMAINE: I THINK THIS ONE COULD BE INTERESTING TO GET SOME THINKING ABOUT HOW MUCH DISAGREEMENT THERE IS. SCARLET: IT COULD CONTRIBUTE TO WHETHER THE FED CUTS IN DECEMBER. ROMAINE: EARNINGS OUT OF ABERCROMBIE & FITCH, THAT'S AFTER THE BELL. ON TUESDAY, DELL AND OTHERS. TUESDAY, PCE PRICE INDEX. SCARLET: THAT'S ONE OF THE THINGS THE FEDERAL RESERVE LOOKS AT TO DECIDE ABOUT CUTTING RATES. WE ALSO GET A SECOND READ OF GDP AND PENDING HOME
SALES. AFTER THE DATA COMES OUT OF YOU LIKE A LOT OF THE MARKET WILL SAY GOODBYE. ROMAINE: A LOT OF PEOPLE WILL BE GONE, A BIG HOLIDAY IN THE U.S. WITH THANKSGIVING THURSDAY. MARKETS IN THE U.S. WILL BE CLOSED BUT WE RETURN FRIDAY, IT WILL REOPEN FOR A SHORTENED SESSION. SCARLET: HALF-DAY OF TRADING. FRANCE, ITALY AND THE EUROPE AREA. WE WILL BE OPEN. ROMAINE: THANKS FOR JOINING US.
