Closing Bell Overtime: Markets Look Past the Noise 9/11/26

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Melissa Lee (1:03)

The Cantor Fitzgerald Relief Fund bringing the bell, and at the NASDAQ BGC Group closes out the trading week. 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 closing out the week with gains, the Dow up around 500 points, S&P 500 up nearly a percent, the NASDAQ gaining 1%.

Michael Santoli (1:21)

But those gains are not quite strong enough to erase weekly losses. The Dow down more than a percent. The other key index is off a bit more than half a percent for the week. Stocks able to get a lift as longer term bond yields today hold relatively steady following the CPI data being pretty much as expected. A decline in oil early, also easing the pressure on stocks, although oil prices did firm up over the day.

Melissa Lee (1:45)

And the big stock story of the day. What happened to Oracle? A jump last night after the results right here in Closing Bell was higher at the open, but all those gains faded. We got much more on that story and the story behind the stock fade right after this. But what's your take on this on this market here in response to CPI? It seemed like almost like a sigh of relief here.

Michael Santoli (2:04)

It was at least initially, and I think it mostly carried throughout the day. Mostly I think it's the end of the suspense about what's happening next week.

Clearly, the bond market raced to that moment of pricing in a rate hike probably a couple more after it. The CPI data, just warm enough on the core to ensure you get the rate hike, but not necessarily really changing the overall trend. So you didn't have to rethink everything. In general, I mean, this market, it tries to stay in the game. It's just not really willing to necessarily reprice on an index-wide basis, even though we're kind of watching what's going on with oil and yields. I will grant over the past five or six weeks, sentiment has cooled a little bit. People were maybe over-positioned for the AI boom a little while ago after earnings, and now it's kind of dimmed somewhat. So maybe that means risk-rewards better, but it has felt tenuous over the course of the day. The majority of stocks did not add to their gains in the morning, and it did sort of soften up. So it's a low-conviction rally.

Melissa Lee (3:00)

Yeah, and it's worth noting the two-year yield did stay firm throughout the session in response to the expectation that the feds will in fact hike, and it's a 10-year yield. So 5% is still sort of insights, and we'll see what happens in the weeks to come.

Michael Santoli (3:13)

It is. I always say it would be unusual if you're kind of that close to the hot stove and don't touch it and see if it burns. But interestingly, the market with this grind higher has been able to to some degree make its peace with these levels. We'll see if that could last for much longer. All right, let's get right to Oracle.

That stock reversed lower as the Street digested its results and ended the week down more than 5%, I think. Srimam Modi joining us now with more. Srimam.

Seema Modi (3:38)

A lot of questions today, Mike and Melissa, about this intraday reversal. The excitement around Oracle's cloud infrastructure business, which saw record drop in sales, initially sent the stock up by around 7% to 8%.

But once the earnings call started, we started to see shares pair gains on the company's conservative guide. In a note to clients this morning, Morgan Stanley says gross margin pressure and a modest EPS raise for the year leaves us needing more evidence on the economics and visibility around the infrastructure buildout. The other concern that inventors have been talking about, Oracle's data center pipeline. Now Oracle's co-CEO Clay Maguric addressed the rising political pushback on data centers, acknowledging that some sites like New Mexico was dealing with permitting issues. But he really made the point that the delays at this point are not emblematic of what Oracle is seeing across the nation with about 850 megawatts delivered in total for the first quarter. But it's still a wild card guys, as well as yields, the speed at which treasury yields are rising, makes Oracle's billions of dollars in debt more expensive to service. We did see Oracle's five year CDS widen just a bit today guys.