Generac Surges 18% on $8 Billion Amazon Data Center Deal | Closing Bell

Author: Bloomberg Television · Watch on YouTube

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Original language: English

Original video: Generac Surges 18% on $8 Billion Amazon Data Center Deal | Closing Bell · Channel: Bloomberg Television · 07:59 · Watch on YouTube

Topics: AI infrastructure and hardware, Markets and economy

Summary

U.S. stocks ended higher, with the S&P 500 up 1.2% and the Nasdaq Composite gaining about 1.7%, while Treasury yields declined. Generac surged 18% after agreeing to supply up to $8 billion in generators for Amazon data centers, with a company stake warrant also included. The hosts discussed other market movers, including Intel, SpaceX, Paramount Skydance, Lennar, and Fluence Energy. The broadcast closed with a discussion of the rising cost of college football stadiums, including an $800 million renovation at the University of Kansas.

Key points

The Dow gained about 0.6%, the S&P 500 rose 1.2%, and the Nasdaq Composite advanced about 1.7%.
Technology was the strongest sector, rising more than 2%, while consumer discretionary gained 1.5%.
Two-year and longer-term Treasury yields fell as markets responded to the latest rate decision.
Intel shares rose more than 7.5% amid a report that SK Hynix might lease space at Intel’s Ohio facility or form a venture; neither company confirmed a deal.
SpaceX shares gained nearly 2.5%, with analysts pointing to possible links to Intel-related reports and other company news.
Generac shares climbed 18% after agreeing to provide Amazon with up to $8 billion worth of generators for data centers.
Paramount Skydance fell more than 4.6% amid concerns about risks from its proposed Warner Bros. merger and a related antitrust lawsuit.
Lennar cut its home-delivery target, citing interest-rate pressure and challenging housing-market conditions.
Fluence Energy dropped 15% after cutting its annual revenue forecast, with production issues at its Houston facility cited.
The University of Kansas is undertaking an $800 million stadium renovation, including a reported $300 million contribution from David Booth.

Chapters

Start	Chapter	Summary
00:00	Market close and major indices	The hosts preview the closing bell, note broad market gains, and discuss the day’s market backdrop.
02:09	Closing figures and market leaders	The broadcast reviews index and Treasury-yield moves before covering gains in technology and other sectors.
04:18	Generac’s Amazon data center deal	Generac shares jump after a filing describes an agreement to supply Amazon with up to $8 billion in generators.
05:22	Decliners and housing-market pressures	The hosts discuss risks surrounding Paramount Skydance’s proposed merger, Lennar’s lowered delivery target, and Fluence Energy’s revenue forecast cut.
06:58	College football stadium costs	The conversation turns to rising college football venue costs and the University of Kansas stadium renovation.

Quotes

The S&P 500 going to close out the day right around 7637, and change up about 86 points of 1.2% — 01:36

they agreed to supply up to $8 billion worth of generators for Amazon’s data center. — 04:18

The homebuilder cut its home delivery target for the full year, citing interest rate pressures. — 05:52

It’s an energy storage company cut its revenue forecast for the year. — 06:26

It’s going through an $800 million renovation — 07:29

Concepts and entities

Generac, Amazon, Intel, SK Hynix, SpaceX, Tesla, Paramount Skydance, Warner Bros., Lennar, Fluence Energy

Full transcript (original language)

00:00 And right now we are two minutes away from the end of the trading day. Romaine Bostick alongside Isabel Lee, taking you through to that closing bell. It’s a global simulcast. We’re joined now by Lisa Mateo, and Alexis Christopher is in today for Tim and Carol Massar. Welcome to our audiences across all of our Bloomberg platforms, television and radio. Our partnership with YouTube on a Thursday afternoon with all of the major indices high into the green. Yeah, we’re looking into the green right now. If we look at the S&P 500 index, Generac up there 19%. These are the most in the S&P 500. On the downside momentum Holdings are

00:34 down oh gosh nearly 3% right now. Yeah you know what I was noticing today guys oil pulling back big time today. And crypto related stocks. Uh actually we’re able to uh to rally back despite the fact that the Clarity Act sort of died in Congress. It did sort of die. And you saw crypto linked stocks there really react negatively. But elsewhere, we also have the Bank of England too remains point. It’s a big central bank week. We had the Bank of Japan overnight or tomorrow depending on where you are in the world. So really, a lot of data points to the U.S.

01:04 for the markets from here on out. Yeah, some of the uncertainty, of course, heading into yesterday’s rate decision, that uncertainty, at least for the moment, has been removed. We got the quarter point hike. Oil prices down for a second day. Yields slightly lower as well. The question is is this the start of a trend line that the markets can count on, or does it shift. Don’t forget Lisa. I mean we’re going to get earnings season starting back up in a just a few weeks. And we’re going to have to hear from the CEOs. And we’re already getting warnings out of some of them. Yeah, we definitely are getting warnings. What I wanted to get to right now is get to some of those gainers. The gainers like Intel INTC yeah.

01:36 Well hang on just one second before we get there. We got the closing bell. You know the mark is not close yet. So yeah go ahead I like this here. My gosh anything could have happened in those last 30s. Well thankfully for Lisa, it looks like the gains have held in these final few seconds, adding about 300 points or so to the Dow Jones Industrial Average. That’s good for a gain of about 6/10 of 1%. The S&P 500 going to close out the day right around 7637, and change up about 86 points of 1.2%, the Nasdaq Composite up about 1.7%. Similar story for the Nasdaq 100 on a

02:09 percentage basis. Dow transports, which had an awful day yesterday, only clawing back about 5/10 of a percent on the day, and Lisa Russell 2000 adding about 16 points as a bell, up about a half a percent. Yeah I mean I want to head over to the yield space. We have the two year, 4.66%. Uh, that’s down about six basis points. The ten year yield 4.93%. And that’s down about 99 basis points right now. Let’s now go to the iMap. That’s I am AP on your Bloomberg terminal. And it’s no surprise you’re seeing mostly green on your screen.

02:39 The tech space there is obviously the biggest winner higher by more than 2%. Consumer discretionary also in the green by 1.5%. Consumer staples actually barely hung in there but ended up in the negative territory. But it’s really almost flat. And of course you’re see um, health care there higher by 6/10 of 1%. All right. I want to get to our gainers now because mean I was a little excited about it. For now we can get through it okay. Let’s start with Intel INTC. Uh, they are shares up more than 7.5%. So they’re still riding this high after SK Hynix that it might be teaming up

03:11 with them. Um, have the South Korean company, memory chip maker. It issued this statement after Reuters reported the company could potentially lease part of Intel’s long planned chip making facility in Ohio or form a venture with Intel, major cloud computing firms. Um, SK Hynek. So they said they didn’t. You know, they haven’t made a decision about a deal with Intel. Intel didn’t comment on that report, but Intel did break ground for its Ohio campus back in 2022. But it’s kind of slowed down the pace of the work. Um, on that site, I want to go now to space that stick or SPC x um and space X

03:45 shares. Um, they’re up nearly about 2.5%. Uh, that’s shares of Elon Musk’s rocket AI company. Um, so city analysts, they’re basically saying reports that SK Hynix was in talks with Intel that might have given SpaceX that kind of boost. Uh, but you also have SpaceX building that chip making facility with Tesla, um, over in Austin, Texas, that, uh, Texas On top of that, analysts are pointing to talks about SpaceX’s Tesla merger. Could that happen? Is it not going to happen? That’s also could be part of it. But then you have this Bloomberg report that SpaceX has held internal discussions about buying customer

04:18 operational information from troubled or defunct start ups, and that’s targeting a more affordable data source to improve its artificial intelligence on models. I have two on and off with Generac. It’s ticker GE and RC and their shares up 18%. They’re the make up of those pack up backup generators. I have one my for my house. Um, it’s broken right now, so it’s not working. I was stuck in the dark through the day. But the thing with these is that they agreed to supply up to $8 billion worth of generators for Amazon’s data center.

04:50 So that’s kind of giving those giving the stock a boost. Also issued a warrant for a stake in the company. Um, this is all according to a securities filing, but we’ll see. Analysts are saying the stock could double in price over the next 12 to 18 months. All right. I’ve got a look at some of the decliners here today. I was looking at the biggest losers in the S&P 500 Paramount, Skydance among them that stock down more than 4.6% here on the day its merger with Warner Brothers, we know has been at a standstill, and it looks like a Barclays analyst hopes it stays that way. This analyst, in a note today arguing

05:22 the proposed merger between Paramount and Warner Brothers could introduce massive financial and operational risks. He predicts the company will eventually split up due to conflicting priorities. Of course, he also notes the potential merger faces an antitrust lawsuit filed by a group of state attorneys general led by California. Romaine. I believe you’re going to be speaking with California state Attorney General Rob Bonta. Yeah, I’m looking at him out of the corner of my eye right now. Alexis. Yeah, yeah. And also, I want to get in now. Lenora. Look, folks, when I pick Lennar earlier today, it was down big. But you know what?

05:52 It reversed course and it actually is. Looks like it’s going to finish the day a bit higher. Uh, but the stock is still down about 23% year to date, down more than 40% in the past year. The homebuilder cut its home delivery target for the full year, citing interest rate pressures. We saw, uh, mortgage rates, uh, up about around 7% again and also worsening conditions in the housing market. Revenue and profit falling in the third quarter at Lennar CEO Stuart Miller on the call said consumer confidence has declined at rates as rates and affordability have driven more consumers to slow their purchase decision.

06:26 And then to round out our decliners here. Fluence energy This is a company with a market cap of about $1.5 billion, tumbling 15% today, down more than 60% so far this year. It’s an energy storage company cut its revenue forecast for the year. Analysts note that the trim to the guidance was attributable to production issues at its Houston facility. All right. Let’s take a look at yields here. Because a different picture than what we saw in the days leading up to that. That meeting yields down significantly across the curve, primarily on the longer end of the curve with eight basis

06:58 points lower on your 30 year and your 20 year, down about 6 to 7 basis points right now on the two year here. So a bit of relief. Still some questions here as to whether that actually last much longer than a few days, or whether we get another shot. One shock that I do have for you. I don’t know if Lisa, Alexis, you guys are all football fans, college football fans, but, uh, the stadiums are building now. They’re getting a lot pricier. And that means the tickets and more importantly, the suites if you want in getting a lot pricier as well, too. They’re looking like professional

07:29 football stadiums like this is getting out of control. But you know what? They have to pay their athletes. They pay the coaches. They got to pay the staff. That’s right. They got a bill. A lot of bills coming. Where do they get the money though? That’s the question. Yeah. The University of the University of Kansas. Right. They have their David Booth football stadium. It’s going through an $800 million renovation, but they’re not using the general school budget to do it. And apparently David Booth himself, of course, the financier contributing $300 million of that. This is just unthinkable. They have more than 40 private suites. I mean, I didn’t grow up here, so the

07:59 whole sports world college thing is just so shocking. We embrace it even though it’s the American way or American way. Goodbye.