Closing Bell Overtime 10/19/26

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Melissa Lee (1:01)

The Bells bringing in to the Tradeney Day at the Annoying Sea. LXP Industrial ringing the Bell and at the Nasdaq. Obsidian Therapeutics doing the honors. Welcome to Closing Bell Overtime. We are live from Studio B at the Nasdaq Market Site. I'm Melissa Lee along with Mike Santoli. Stocks mostly higher today as markets reevaluate. Last week's tech sell-off Dow slightly lower, S&P 500 higher. Right around $7,700, Nasdaq Composite with the strongest rebound, although well off the highs of the session.

Mike Santoli (1:24)

For sure, the AI trade mostly bouncing back. Sandisk and Micron both were higher. Sandisk snapping a seven-session losing streak. Twilio rebounding after a 10% loss on Friday. Still, CoreWeave, the stock at the center of last week's weakness, lower once again today. Much more on the software trade coming up. Bond yields, meanwhile, on the rise as the recent safety bid eases somewhat, adding a few basis points higher across the curve.

Melissa Lee (1:50)

Earnings season, picking up tomorrow, 3 a.m. and GM, reporting in the morning. Netflix and SpaceX reporting in the afternoon. We'll get you set up for those reports. But first, the first take on the close, it was a very interesting session. There was an effort at the beginning of the day. But as you went into the close, you definitely saw a leg lower, especially across the board when it comes to the chip names. NASDAQ 100 is up.

Mike Santoli (2:09)

Yes, I don't think there's really a lot of strong conviction behind a lot of these moves. I think as a positive, and there was a lot of talk over the weekend that we were gearing up for something uglier. It seemed like forced liquidation potentially last Thursday and Friday in some of the semis. So they got a little bit of relief. I think it makes some kind of sense. Credit spreads did not blow out again. But even under the surface, all you really saw was the most oversold stuff in the market get a modest bounce. Banks were down 1 percent. Market breadth overall was negative. So I do still think we're kind of fighting this out. You have the fundamentalists out there saying earnings are going to bail us out. Everybody else saying financial conditions are tightening. Credit conditions are different than they were just three months ago.

Melissa Lee (2:49)

Yeah. I think it's also interesting to see if you pull up all the activity on, for instance, a core weave. You had Goldman Sachs upgraded core weave. You had almost every firm out on the street defending core weave today, and it still didn't do the trick. You had Intel upgraded by JP Morgan still closing at the lows of the session. They're just, it's falling on deaf ears at this point. It's like we still don't know if the situation is resolved at all if anything is different from last week.

Mike Santoli (3:12)

No, it's tough to know exactly what might change that equation. Obviously, we have a Fed meeting next week. I think that there's some hesitation in there in terms of whether, in fact, this is exactly what the Fed was trying to do is essentially create a little bit more of a higher hurdle and tighter conditions in the market. So we'll have to see if anything kind of breaks the fever. It has been a rough go as we've been talking about for the tech trade.

Nasdaq tumbling 4.5% last week on concerns about AI debt and spending unnerving investors. CoreWeave became the poster track for that sell off, plummeting 25% last week. It was his biggest one week drop in nearly a year. The company's credit default swaps reached distress levels as well. And while the Nasdaq did post gains today, CoreWeave, as we said, unable to hold the gains, it was earlier up about 7%.