And right now we are 2 minutes away from the end of the trading day. Romaine Bostick alongside Vonnie Quinn taking you through to that closing bell on this Friday afternoon. It's a global simulcast Carol Massar main event for a fifth straight day.Tim Stenovec by her side. Welcome to our audiences across all of our bloomberg platforms, including our partnership with YouTube. A day, a rare op.You need some help. As a player, I am. I'm a little for clients that was expecting a down day work like five days or f ...

Market Overview - U.S. stock markets rebounded on September 26, 2025, with the Dow Jones Industrial Average (DJIA) leading gains, rising 0.7% or 308 points to close at 46,366, while the S&P 500 (SPX) increased 0.6% to 6,642, following three consecutive days of declines [1][2] - The Nasdaq Composite (IXIC) saw a more modest rise of 0.4% to 22,469, attributed to declines in several major tech stocks, despite all three major indexes finishing lower for the week [3] Economic Indicators - The Personal Consumption Expenditures (PCE) price index report for August indicated a year-over-year increase of 2.9% and a month-over-month rise of 0.2%, aligning with economists' forecasts, providing some relief to investors concerned about inflation [4] - Consumer sentiment reported by the University of Michigan was weaker than expected, with consumers frustrated by high prices, although inflation expectations for the next 12 months slightly decreased [4] Upcoming Events - The week ahead is critical for market direction, with the Federal Open Market Committee (FOMC) meeting on October 1st expected to maintain current interest rates, while guidance on future monetary policy will be closely monitored [5] - Key economic data releases include the PCE price index for September and the non-farm payrolls report for September, which will provide insights into inflation trends and labor market health [6] Company Highlights - Electronic Arts (EA) shares surged 15% due to reports of a potential $50 billion deal to take the company private, marking a significant leveraged buyout [8] - Intel (INTC) shares rose 4.4%, continuing a strong performance with over a 20% increase since Monday, partly due to discussions with Apple regarding a potential stake acquisition [9] - BlackBerry Limited (BB) saw an 8.8% increase after reporting stronger-than-expected second-quarter earnings, while TD SYNNEX Corporation (SNX) gained 6.2% after surpassing earnings expectations [11] - Conversely, CarMax, Inc. (KMX) plummeted 20.1% after missing earnings estimates, while Microsoft Corporation (MSFT) and Oracle (ORCL) shares fell amid broader tech declines [12]

Market Performance - U.S. stocks experienced a rise on Friday, with the S&P 500 increasing by 0.6%, the Dow Jones Industrial Average gaining 299 points (0.7%), and the Nasdaq composite adding 0.4%, helping to reduce weekly losses [1][2] - The S&P 500 closed at 6,643.70, the Dow at 46,247.29, and the Nasdaq at 22,484.07 [8] Inflation and Economic Indicators - Inflation in the U.S. accelerated to 2.7% in August from 2.6% in July, which, while above the Federal Reserve's 2% target, aligned with economists' forecasts [2][3] - Consumer sentiment showed weakness, with a University of Michigan survey indicating frustration with high prices, although inflation expectations for the next 12 months slightly decreased to 4.7% from 4.8% [10][11] Federal Reserve and Interest Rates - The Federal Reserve's potential for continued interest rate cuts is critical for Wall Street, as expectations for these cuts have driven U.S. stocks to record highs since April [3][4] - The Fed recently implemented its first rate cut of the year, but further cuts are uncertain due to concerns about worsening inflation [4] Tariffs and Market Reactions - President Trump's announcement of new tariffs on imports, including pharmaceutical drugs and heavy trucks, has created uncertainty among analysts regarding their ultimate effects on the market [5][6] - Companies like Paccar, Eli Lilly, and Pfizer saw stock increases following the tariff announcement, while home furnishing companies experienced volatility in their stock prices [6][7] International Market Trends - European stock indexes rose after declines in Asia, with France's CAC 40 climbing 1% and South Korea's Kospi dropping 2.5% [9] Upcoming Events - A potential U.S. government shutdown is on the horizon, with a deadline set for next week, but historical data suggests limited impact on the market from such political events [12]

Group 1 - President Trump announced a new wave of tariffs set to launch on October 1, targeting imports of heavy trucks, furniture, and pharmaceuticals, citing national security reasons [1] - A 25% tariff will be imposed on foreign-made heavy-duty trucks, impacting domestic manufacturers and higher-end importers like RH [1] - The stock market showed mixed reactions, with some domestic manufacturers experiencing gains while importers faced declines [1] Group 2 - The Dow and other indexes experienced a rise following inflation data that met estimates, indicating a potential recovery in the market [2] - Stocks related to furniture, such as Wayfair, received upgrades despite concerns over tariffs, with Wayfair's stock jumping after beating Q2 expectations [4] - The overall market sentiment was affected by inflation concerns and the looming tariff announcements, leading to volatility in stock prices [4]

Group 1 - President Trump announced a 50% tariff on kitchen cabinets and bathroom vanities, and a 30% tariff on upholstered furniture, effective October 1, 2025, citing a "large scale FLOODING" of these products into the U.S. as a national security threat [2][6] - The U.S. imported $44.4 billion in furniture and fixtures in 2024, including $6.4 billion in upholstered household furniture and at least $8.2 billion in wood cabinets [3] - Furniture stocks reacted to the tariff announcement, with companies that have significant domestic manufacturing, like MasterBrand and MillerKnoll, seeing their shares rise, while high-end retailers like RH and Williams-Sonoma experienced declines [1][9] Group 2 - MasterBrand's stock rose almost 6% following the tariff announcement, as the company operates 15 manufacturing facilities in the U.S. [5] - MillerKnoll's shares increased by 3%, with 75% of its square footage located in the U.S., and the company had already raised prices to offset tariff costs [8] - RH and Williams-Sonoma saw their shares drop by about 3% and less than 1%, respectively, as they both engage in some domestic upholstery work [9][10]

Market Overview - U.S. equities are rebounding strongly as investors react positively to the August Personal Consumption Expenditures (PCE) inflation report, which met expectations and alleviated concerns about the Federal Reserve's monetary policy [1][3] - Major U.S. stock indexes are in positive territory, with the Dow Jones Industrial Average up 0.8% to 46,316 points, the S&P 500 climbing 0.5% to 6,641, and the Nasdaq Composite increasing 0.3% to 22,455 [2] Economic Indicators - The August PCE inflation report showed consumer prices rose 2.7% year-over-year, slightly up from July's 2.6%, while core PCE inflation remained at 2.9% [3] - The University of Michigan's Consumer Sentiment survey for August was at 55.1, slightly below expectations, but consumer spending rose 0.6% in August, exceeding forecasts [4] Upcoming Events - The upcoming U.S. employment report is anticipated, with nonfarm payrolls expected to rise by 39,000 in September and the unemployment rate forecast to remain at 4.3% [5] - Other important economic indicators include worldwide manufacturing PMI surveys and Eurozone inflation numbers [6] Corporate Earnings - Several S&P 500 companies are set to report quarterly results, including Carnival, Lamb Weston Holdings, and Nike [7] - BlackBerry reported earnings of $0.04 per share, leading to an 8.8% stock increase, while CarMax saw a significant decline of 20.1% after missing earnings estimates [13] Sector Performance - Intel shares surged 6% today, continuing a strong performance with over 20% gains since Monday, partly due to acquisition discussions with Apple [8] - Boeing's stock rose 4.4% after the FAA allowed the company to sign off on its own planes again [10] - The pharmaceutical sector is performing well, with stocks like Eli Lilly and Pfizer nudging higher following a new tariff plan for drugmakers [14] Market Themes - The tech sector is experiencing significant growth driven by artificial intelligence, while consumer-facing sectors are struggling with high interest rates, indicating a "two-speed economy" [15] - In the cryptocurrency market, Bitcoin fell below $110,000, marking a decline of over 5% for the week [16]

Tariff Announcements - Former President Donald Trump announced new tariffs, including a 100% tariff on imported branded and patented pharmaceutical products, a 50% tariff on kitchen cabinets and bathroom vanities, a 30% tax on upholstered furniture, and a 25% levy on heavy trucks, effective October 1st [2][3][4] Pharmaceutical Sector Impact - Asian pharmaceutical stocks experienced declines, with Japan's Topix pharmaceutical index down 1% to 1.2%, and South Korea's SK Biopharmaceuticals shares falling 2.7% to 3.6% [3][4] - In India, the Nifty Pharma index plunged 1.81% to 2.45%, with Sun Pharma losing 2% to 2.55% and Wockhardt tumbling over 9% [4] - European pharmaceutical shares had a muted reaction, with Novo Nordisk slipping 1.9% to 3.49%, while Novartis stated the tariffs would have "no impact" due to a $23 billion investment in U.S. infrastructure [5] U.S. Pharmaceutical Companies - American pharmaceutical companies saw gains, with Eli Lilly rising 0.9% to 1.3% and Pfizer adding 0.2%, benefiting from the 100% tariff on imported drugs [6] Home Goods Sector Reaction - The home furnishings sector reacted negatively, with RH shares falling 2.6% to 5.4% and Wayfair initially slipping 3.5% to 6% but later recovering to a 0.9% gain [7][8] - American-based furniture manufacturers like La-Z-Boy and Ethan Allen Interiors saw gains due to the tariffs [8] Heavy Trucks Sector - The 25% tariff on heavy truck imports benefited American truck maker Paccar, whose shares surged 5% to 6%, while European counterparts like Daimler Truck and Traton saw declines [9] Broader Market Reaction - Despite the tariff news, the broader U.S. markets showed resilience, with the Dow Jones Industrial Average gaining 369 points (+0.8%) and the S&P 500 rising 36 points (+0.56%) [11] - The overall market reaction was described as "modest," indicating that markets have adapted to tariff announcements over time [11][12]

Market Overview - Most U.S. stocks are rising, with the S&P 500 up 0.2% and the Dow Jones Industrial Average increasing by 211 points or 0.5% [3][4] - The Nasdaq composite is down 0.1% due to declines in some major tech stocks, but all three indexes are near their all-time highs [3][4] Inflation and Economic Indicators - Inflation in the U.S. accelerated to 2.7% last month from 2.6% in July, which is above the Federal Reserve's 2% target but aligns with economists' forecasts [4][5] - The Federal Reserve recently cut interest rates for the first time this year, with more cuts anticipated through the end of next year, although there are concerns about the potential impact on inflation [5][6] Tariffs and Market Reactions - President Trump's announcement of new tariffs on imports, including pharmaceuticals and furniture, is expected to influence inflation and market dynamics [7][8] - Companies like Paccar and major pharmaceutical firms saw stock increases, while home furnishing retailers experienced volatility in their stock prices due to potential higher import costs [8][9] Company Performance - Costco Wholesale's stock fell 1.9% despite reporting stronger-than-expected quarterly profits, attributed to slower membership renewal rates and disappointing revenue growth [10] - Consumer sentiment is reported to be weaker than expected, with inflation expectations slightly decreasing from 4.8% to 4.7% [11][12] Broader Market Sentiment - Investors are generally accustomed to political impasses, such as the potential U.S. government shutdown, which historically have limited impact on the market [12][13]

Core Points - President Trump announced new tariffs, including a 50% tariff on kitchen cabinets and upholstered furniture, effective October 1 [3][4] - The tariffs are aimed at protecting U.S. manufacturing from what Trump described as unfair foreign competition [5] Impact on Companies - Ikea, a major player in the home furnishing market, is expected to be significantly affected as only about 10% of its products are manufactured in North or South America, with 90% imported [8][9] - Ikea acknowledged that the new tariffs will impact prices for U.S. consumers, despite efforts to keep costs low through domestic sourcing and manufacturing [11] - Other publicly traded furniture companies showed mixed stock reactions, with some stocks remaining relatively flat despite the tariff news [15][16] Consumer Impact - Homeowners and renters are likely to face increased prices for furniture due to the tariffs, as companies may pass on the costs to consumers [12][14] - Companies are expected to first seek price concessions from suppliers before raising prices for consumers [13]

Core Viewpoint - RH's stock declined due to new tariff announcements and updated manufacturing and spending plans, impacting its operational outlook and financial performance [1][6]. Group 1: Tariff Implications - The U.S. government announced a 30% duty on upholstered furniture starting next week, aimed at addressing the influx of imports into the domestic market [2]. - New tariffs include a 100% duty on branded or patented drug imports, a 25% tariff on heavy-duty trucks, and a 50% tariff on kitchen and bathroom cabinets [1]. Group 2: Company Adjustments - RH expects approximately 52% of its upholstered furniture to be produced in the U.S. next year, with this share increasing through 2026 [3]. - The company anticipates an additional $30 million in tariff costs for the second half of the year, net of mitigation, and expects about $40 million in revenue to shift from Q3 to Q4 and Q1 of 2026 [3]. Group 3: Capital Expenditures - RH projects adjusted capital expenditures of $200 million to $250 million in 2026 and $150 million to $200 million in 2027 and beyond, aimed at enhancing supply-chain resilience and supporting long-term brand initiatives [4]. Group 4: Industry Reaction - The tariff announcements have faced pushback from U.S. businesses, with Ikea stating that the furniture levies complicate operating conditions [5]. - Competitors like Williams-Sonoma, Inc. and Wayfair Inc. experienced stock declines following the tariff news [5].