MongoDB Plunges 18% as Meta Taps CEO To Lead New AI Platform | Closing Bell

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Original language: English

Original video: MongoDB Plunges 18% as Meta Taps CEO To Lead New AI Platform | Closing Bell · Channel: Bloomberg Television · 06:30 · Watch on YouTube

Topics: Cybersecurity and software security, Markets and economy

Summary

U.S. stocks and Treasury bonds sold off as investors looked ahead to inflation data, the monthly jobs report, Micron earnings and upcoming bank results. The Nasdaq fell about 2%, while only three S&P 500 sectors finished higher. Nvidia and Palo Alto Networks gained, while MongoDB plunged after its CEO was tapped to lead a new Meta AI platform, and Boeing fell amid a certification delay. Treasury yields rose, with the 10-year yield briefly climbing as much as 11 basis points.

Key points

Investors were watching upcoming inflation data and Friday’s monthly jobs report for clues about the Federal Reserve’s next steps.
Micron earnings were highlighted as a potential driver of sentiment in the semiconductor sector; bank earnings in early October may offer insight into the consumer.
The Dow fell more than 300 points, the S&P 500 lost about 0.8%, and the Nasdaq Composite and Nasdaq 100 each fell about 2%.
Only consumer staples, health care and energy sectors finished in the green; communication services, consumer discretionary and financials were among the weakest.
Nvidia rose about 1.7% after announcing an additional $150 billion for its share buyback authorization and introducing a new AI security system.
Palo Alto Networks gained about 4.6% after BTIG raised its price target and maintained a buy rating.
Kodiak Sciences surged 177% after saying two experimental drugs met primary endpoints in a late-stage study for an eye disease.
MongoDB fell more than 18% after Meta tapped its CEO, CJ Desai, to lead a new enterprise AI platform.
Boeing shares fell about 7% as the FAA delayed certification of the 737 Max 10 variant over a software issue.
Treasury yields rose across the curve; the 10-year yield briefly gained as much as 11 basis points.

Chapters

Start	Chapter	Summary
00:00	Market backdrop and economic events ahead	The hosts discuss the stock and bond sell-off and the upcoming inflation report, jobs data, Micron earnings and bank results.
02:09	Broad market performance	The S&P 500’s declining stocks and sector performance are reviewed, followed by a look at Nvidia’s gains and company announcements.
03:50	Stock movers: gainers	Palo Alto Networks rises after an analyst price-target increase, while Kodiak Sciences jumps on positive late-stage drug study results.
04:56	Stock movers: decliners	MongoDB drops after its CEO is tapped to lead Meta’s new enterprise AI platform, while Boeing falls amid an FAA certification delay.
05:59	Treasury yields and closing discussion	The hosts report rising Treasury yields and discuss energy prices, the Middle East and political concerns about the cost of living.

Quotes

We do get rounds out of inflation that will be important. — 00:31

Just three sectors in the green. — 02:09

shares of MongoDB fell more than 18%. — 04:56

The ten year Treasury yields risen for four straight weeks coming into today. — 05:59

Concepts and entities

MongoDB, Meta Platforms, CJ Desai, NVIDIA, Palo Alto Networks, Kodiak Sciences, Boeing, Federal Reserve

Full transcript (original language)

00:00 And right now we are two minutes away from the end of the trading day. Romaine Bostick here with Emily. We’re taking you through to that closing bell. It’s a global simulcast. Carol Massar joins us now alongside ten. Welcome to our audiences across all of our Bloomberg platforms. Television, radio. Our partnership with YouTube, where we’re looking at a sell off in the equity market and a sell off in the bond market as well. And let’s just face it, that’s sort of been the theme as of late. I it’s exactly deja vu all over again. We’ve seen this story before. So I’m thinking about a lot of things that are coming out investors this week.

00:31 We do get rounds out of inflation that will be important. We’ll get the monthly jobs report on Friday. So we’ll see what that means for what we get from the fed for the rest of the year. We’ve got what, two more meetings, I believe. And the other thing is we’ve got micron earnings guys. So that will also be something potentially very important when it comes to sentiment in the in the semi space. Well not just so micron this week. But then we start to think about what happens at the end of the quarter and the beginning of the next quarter Emily. And that’s bank earnings. So we’ll start to hear from those banks at the early part of October. Get a read not just on how those

01:03 companies did, but potentially also on the state of the consumer, which is something that I look forward to seeing in the early part of the month. Yeah, and all that eco data coming this week really begs the question, is a stronger economy going to merit higher interest rates and therefore something that’s actually not good for risk assets worldwide? And it raises a lot of question as to sort of where the actual line in the sand. It’s kind of interesting to see the people on Bloomberg Television today, for sure. Sharma saying, look at 5.2% on a ten year yield. You are talking about the potential to actually bring the AI boom, if not to

01:36 the whole, to certainly slow it. Meanwhile, you had Bob Michael on on Bloomberg Surveillance this morning as a bond investors. He’s looking at five three and basically thinking to himself, this might be the peak in yields and maybe time to buy, at least for right now. Not a time to buy in the equity market. With the Dow Jones Industrial Average losing more than 300 points, or 7/10 of a percent. The S&P down about 59 points, or 8/10 of a percent. The Nasdaq Composite and Nasdaq 100 each losing about 2% on the day. And the Russell 2000 lower by about 20 points, or 7/10 of 1%.

02:09 All right guys let’s go to the S&P 500. And when you look at the large caps most names were lower. Emily in today’s session you had 334 names losing ground on this Monday 165 though posting higher numbers here for unchanged. All right. And if we head to the map it’s a lot of red today. Just three sectors in the green. Consumer staples health care and energy. But most of those sectors dragging today communication services consumer discretionary and financials. The biggest laggards in the S&P 500.

02:42 All right guys let’s get to some of the individual gainers. Um if I may. And I’m going to start with Nvidia. And just taking a look. It uh was a top gain. Um just took in and it wasn’t okay. Sorry. I had to just checked my worms and Nvidia was up about 1.6%. I was looking to see it was top in the major indices. It was high is uh, 3.6%. But by the close, um, paring, some of that gain still up about 1.7%. We know the story. I’m sure you guys were covering it, increasing the size of its share buyback plan by $150 billion. So the total remaining authorized amount

03:17 to $235 billion. That’s a lot. Covered expects to complete the program through fiscal 2028, according to a statement. Put out the other thing that’s kind of interesting on this, uh, name, Nvidia introduced a new AI security system to run its hardware, which the company said would have prevented the hugging face attack. So we are certainly focused on this one. Stock is up about 24% year to date, versus about a 76% gain in the stocks for comparison. All right. Let’s go on over to a name that was number one in the S&P 500 and the Nasdaq

03:50 100. We’re talking about Palo Alto Networks finishing off its best levels of the day, but it was still good enough for a gain of about 4.6%. Btig analyst Gray Powell raising the firm’s price target to 425 from 404 a share keeping a buy rating, said they met with the company’s senior VP of investor relations and reconstructing the product level revenue build in its model to better understand the growth potential within the Palo Alto platform. The firm Btig, coming away from its discussion with constructive data, points on a couple of different things.

04:23 And nonetheless, we saw this one higher. And then just real quick. Kodiak Sciences at 177% in today’s session, scoring the most ever. Uh, this company, uh, it’s a drug developer, said two of its experimental drugs met their primary endpoints in a late stage study for an eye disease. So certainly off and running. All right. Let’s talk a little about some of the stocks that moved lower today. I want to start with uh shares of MongoDB fell more than 18%. Its the worst day going back to March 3rd. This after we learn that Meta platforms has tapped MongoDB president and CEO CJ

04:56 Desai to lead a new AI platform for enterprise to customer shares of MongoDB down. Wow. Shed about $6.1 billion just on that news today. Uh, also shares of Boeing under pressure today. The FAA holding off on certification of Boeing 737 Max ten variant due to a new software issue. The FAA determining whether the software concerned constitutes a safety of flight issue. Shares down by about 7% on the day today. And finally, uh, checking in on shares of meta, down from last week, about 8%

05:28 just in the last two sessions. So Friday’s decline than this decline, about 8% off of, uh, those last week. Uh, this after Mark Zuckerberg introduced meta enterprise platform. That’s where CJ Desai is going. Uh, it’ll initially focus on bringing the muse agent meta business agent muse API and his code and its full tech stack to more business and developers romance. All right. Let’s take a look at yields. The ten year Treasury yields risen for four straight weeks coming into today. And it starts the week five. Looking like it’s moving in the same direction. Yields up about seven basis points on

05:59 the ten year, seven basis points on the two year and about 5 to 6 on the longer end of the curve. We should point out at one point on the day. The ten year yield actually surged as much as 11 basis points. That’s only the sixth time this year the benchmark has risen intraday ten points or more in a single session. Yeah, I think it’s safe to say at this point, you know, we’re just trying to figure out how much higher we can go. We’ve got to watch what’s going on in the Middle East obviously, and we’ve got to watch energy prices. I feel like Tim, all of our guests keep making that connection. Yeah. And you know, I think the the challenge

06:30 that it’s it’s it’s political too, especially as we get so close to midterms. I mean, President Trump and a lot of Republicans are facing a lot of challenges, as we do get closer to midterms, about a cost of living situation that has not improved for a lot of Americans. At least that’s how they perceive it. So you’re, in fact, starting to see some Republicans turn on this war to remain. Yeah. Absolutely, guys.