EARNINGS ALERT: MU

Sam Vadas (0:02)

We are back here on Market on Close. I'm Sam Vadas on the floor of the New York Stock Exchange alongside Marley Kayden. In our Chicago headquarters, we've just got a few minutes left in today's session and for the month and the quarter. So let's welcome in Kevin Green, Senior Markets Correspondent, to help close out the session here. KG, what are you watching?

Kevin Green (0:19)

I'm actually looking at Google right now. It actually just moved down, what, $6 in a matter of a few minutes. So I'm not sure if there's a news headline. This is the end of the calendar quarter. So we do kind of get some of these flushes and readjustments when it comes to positioning. But we did see the S&P 500, or at least the futures went negative for the session. You can kind of see this kind of dive in the market right now. But it looks like Google is the biggest one that's being impacted. So I'm keeping my eye out on that going into the close. Once again, there may be a news headline that I have not seen at this point in time here. We started off very strong. Everybody was very enthusiastic when it came to the PCE report.

Obviously we did talk about earlier today, especially Sam, where we had the readjustments of some of the categories that did act as a deflator for PCE, but it seems like the market was okay with that. But as the day went on, we started seeing yields actually rebounding back to the upside here. Another day where yields are in the green, bottom prices are going a little bit lower. We have crude oil for the most part hanging out up around 1.2 percent. We did have a little bit of a push to the upside when it came to heating oil as well, our diesel up about 4 percent. So not the dynamics that you would like to see. Once again, I go back and say it's a quarter in on the calendar front. There's some options, items that are happening right now as well. Last 30 minutes to an hour of today's session, we do have some options repositioning. But once again, I'm looking at Google and I'm looking at that pull back to the downside here. Not sure what the headline is, but it's got to be something for that stock to move aggressively in the manner that it did.

Marley Kayden (1:51)

KG, I'm looking at a Bloomberg report here from Google. They're preparing for the coming launch of Gemini 4 And they say that some employees are grappling with skepticism over how well the model performs in certain areas like coding. So it looks like there are some internal skepticism maybe at play here, skepticism, excuse me, at play here with the employees with Google here. That's what I'm seeing.

That seems to be the driver here.

Kevin Green (2:21)

Yeah, if anybody's going to find that report, I know it's going to be you, Marley. Yeah, it's an interesting report. Obviously, this is a theme that we've seen across other AI companies where their employees, especially their engineers, were a little bit concerned, not only when it comes to performance, but trying to contain these models in order for them to do exactly what we are telling them to do or whoever the operator is going to be, and that could create a little bit of volatility. We have Micron at the close as well. Let's get that report that might actually shift that narrative back to the positive, especially for the hardware makers in the AI space. So I'm sure that there will be a couple of fireworks for that. But unfortunately, that news hitting the tape into the close, not a great reaction for the S&P. Actually, now it's down about 0.2 percent. So a pretty decent flush right now when you're looking at the broader equity market.

Sam Vadas (3:28)

So a mixed finish there. The S&P 500 losing altitude into the closing bell there to round out September and the quarter. Of course, we had that Google News, which we've been highlighting as it grapples with employee scepticism about the new Gemini model, which hit the stop, and we did see technology as a whole coming off as well. And so that very much turned things, the NASA F100 managing to hold on to two-tenths of a percent, but coming well off the highs of the session there, as we did see semiconductor chips losing a little bit of steam into the closing bell as well. So obviously, we did have by and large a pretty good day for the MAG-7, which hung in there, and it had been doing a lot of the heavy lifting throughout the course of the session. The Dow Jones, though, falling as we crossed the finish line there, too, shedding 441 points to close out the session there. The Russell 2000 down to four-tenths as well.