Core Insights - Kevin Worsh is viewed as a strong candidate for the Fed chair position, bringing fresh ideas and independence to the role, which may not align closely with the Trump administration [2][4][5] - The market is reacting negatively to the potential for slower interest rate cuts under Worsh's leadership, contributing to a selloff in stocks and declines in gold and silver prices [7][9][11] Market Reactions - The 10-year bond yield is at 4.26%, indicating market adjustments in response to Worsh's nomination [7] - Gold prices have dropped by 5% and silver by 13.7%, reflecting significant volatility in the metals market [8][11] - Overall market sentiment is down, with major stocks like Apple and Visa showing small declines pre-market [10] Economic Indicators - The Producer Price Index (PPI) shows a headline increase of 0.5% month-over-month and 3% year-over-year, with final demand services up by 0.7% [13][14] - A notable 1.7% increase in margins for final demand trade services has skewed the PPI numbers [14] - Upcoming labor market data, including jobless claims and non-farm payroll, is expected to be closely monitored [15][16]

Core Insights - The company is focusing on enhancing its internal laser capabilities and expanding UltraSMR adoption through new JBOD platforms, which provide higher storage density and improved performance for customers [1][2] - There is a strong demand for higher-density storage solutions driven by the growth of AI and cloud technologies, with the company working closely with hyperscale customers to meet their needs [3][4] - The company has secured long-term agreements with key customers, indicating strong trust and confidence in its ability to meet exabyte storage requirements [5][19] Financial Performance - In Q2 fiscal 2026, the company reported revenue of $3 billion, a 25% increase year-over-year, and earnings per share of $2.13, exceeding guidance [7][8] - Cloud revenue accounted for 89% of total revenue, reaching $2.7 billion, up 28% year-over-year, while client and consumer segments also showed growth [8] - Gross margin improved to 46.1%, reflecting a shift towards higher capacity drives and effective cost control [8][9] Product Development and Innovation - The company shipped over 3.5 million units of its latest ePMR products, with capacities up to 32 terabytes, demonstrating strong customer adoption [2][7] - The qualification of HAMR and next-generation ePMR products is underway, with expectations for these innovations to enhance capacity and reduce costs [6][30] - The company is also investing in quantum hardware design through a partnership with Qolab, aiming to advance nanofabrication processes [6] Customer Engagement and Market Trends - The company has established robust commercial agreements with top customers, indicating a strategic focus on long-term relationships and predictable pricing [5][19] - The demand for storage solutions is expected to grow significantly as AI capabilities expand, with the company positioned to benefit from this trend [3][36] - The mix of UltraSMR drives is increasing, which is beneficial for both customer needs and the company's profitability [25][26] Future Outlook - The company anticipates revenue of approximately $3.2 billion for Q3 fiscal 2026, reflecting a year-over-year growth of around 40% [11] - Gross margin is expected to be between 47% and 48%, with operating expenses projected to remain stable [11][12] - The company is committed to continuing its disciplined approach to free cash flow and capital returns, aiming for long-term value creation for shareholders [12]

Let's bring in Kevin Green, senior markets correspondent, right away to help set up the action today. All right, KG, let's start out with the pick. Uh Kevin Walsh has been named uh by President Trump.It started in a true social post. Uh did this surprise you at all. >> Not really a surprise.Obviously, we had four candidates kind of coming into this and we did see a little bit of a rotation in the Kawashi markets and these betting markets over the last week, week and a half where Rick Reer actually did catch ...

It's 5 AM in New York City. Good morning. I'm Matt Miller, in for Vonnie Quinn with your Bloomberg Brief.Let's get you set up for the day. President trump set to announce his fed chair pick stocks and bonds drop on bets that kevin warsh will get the job. And a partial government shutdown looms even as the president and senate democrats reach a tentative deal.Plus, a record quarter for Apple shares now stabilizing after a jump as it warns of rising costs that we've all been wary of. Take a look at what's goi ...

Core Insights - Kioxia is strategically focusing on the high-density storage demand driven by AI data centers, differentiating itself from competitors heavily invested in the high bandwidth memory (HBM) market [1][2] - The company's stock has surged over 13 times since its IPO in late 2024, reflecting investor confidence in its growth potential in the AI storage sector [1] - Kioxia's partnership with SanDisk has been extended, with SanDisk committing to pay Kioxia $1.165 billion over four years, further solidifying Kioxia's market position [4] Market Dynamics - The storage chip market is currently polarized, with major players like Samsung and SK Hynix focused on HBM, leading to reduced investment in traditional NAND products [2] - This shift has created opportunities for Kioxia, as the demand for high-performance NAND storage solutions is increasing, allowing for better pricing power [2] - Analysts predict that NAND prices will continue to rise due to a lack of substantial capacity increases in the next 1-2 years, driven by strong AI inference demand [2] Capacity Expansion and Management Changes - Kioxia plans to expand its production capacity at a rate slightly above the overall market growth, with an expected bit growth rate of around 20% this year [3] - A leadership change is underway, with Hiroo Oota taking over as CEO from Nobuo Hayasaka, who successfully led the company through a challenging period [3] - Supply bottlenecks may persist due to cautious capacity expansion by chip manufacturers, with expectations that flash memory factory numbers will not meet market demand until 2027 [3] Financial and Partnership Developments - Kioxia's partnership with SanDisk, which has lasted over 25 years, has been extended until the end of 2034, marking a significant financial commitment from SanDisk [4] - Following the announcement of the partnership extension and positive forecasts from SanDisk, Kioxia's stock rose over 11% [4] - The company has overcome significant challenges, including heavy debt and leadership changes, to achieve its current success [4]

WE WERE LISTENING TO GAVIN NEWSOM, THE TWO-TERM GOVERNOR OF THE STATE OF CALIFORNIA, THE MOST POPULOUS STATE, THE LARGEST ECONOMY, $4 TRILLION ECONOMY, WIDELY PRESUMED TO BE A CANDIDATE FOR PRESIDENT IN THE 2028 ELECTION. THAT IS YOUR POLITICAL COVERAGE FOR THE TIME BEING. WILL GET BACK TO THE MARKET COVERAGE.ROMAINE BOSTICK ALONGSIDE KATIE GREIFELD, WITH A CHECK ON THE MARKETS. WE CAME INTO THIS YEAR, A LOT OF BULLISHNESS IN THE MARKET. THE LAST FEW DAYS WE'VE SEEN A BIT MORE CAUTION, SOME OF IT TIED TO TH ...

And right now we are 2 minutes away from the end of the trading day. Romaine Bostick alongside Katie Greifeld, taking you through to that closing bell. That's a global simulcast.Carol Massar and Tim Stenovec joined us from the radio room. Welcome to our audiences across all of our Bloomberg platforms. Another busy day after the bell tonight with some big earnings, including, well, from the second biggest weighting in the S&P 500.Yeah. Looking forward to it when Apple reports at about 4:30 p. m.Wall Street t ...

Market Overview - The stock market closed mostly lower, with the Dow managing to finish slightly in the green, while the NASDAQ experienced its worst day in several months [1][2][3] - The S&P 500 ended with a minor loss of about 13 basis points, while the Russell 2000 small-cap index was also slightly down [3] Company Performance - Microsoft saw a significant drop, down approximately 10% at its lows, marking its worst performance in several months [4] - Tesla also declined by 3%, while Meta's stock rose by 10%, contributing to a strong performance in the communication services sector [4][5] - SanDisk reported a revenue of $3.03 billion, exceeding expectations of $2.68 billion, and its earnings per share came in at $620, significantly higher than the expected $344 [22][23] - SanDisk's stock has surged over 90% year-to-date, driven by high demand for memory products in the AI sector [24][25] Sector Analysis - The communication services sector reached a record high, while technology was the worst-performing sector, down 1.6%, primarily due to poor performance in software stocks [5][6] - The software industry faced widespread declines, with companies like SAP down 15% and Atlassian down 10% [6][7] - In the semiconductor space, companies like Lamb Research and KLA saw gains of about 3.5%, indicating a mixed performance within the sector [7] Geopolitical Impact on Oil - Crude oil prices rose to their highest levels since September, influenced by President Trump's threats of military action against Iran, which has led to a risk premium in the oil market [11][12] - Analysts noted that the market is not currently pricing in a full-scale conflict but is reacting to operational signals and geopolitical tensions [12][13] Housing Market Insights - US mortgage rates are holding steady at 6.1%, the lowest in three years, but housing affordability remains a challenge due to high home prices [44][45] - The "lock-in effect" is causing homeowners with low-rate mortgages to keep their homes off the market, contributing to tight inventory levels [48][50] - New home listings have increased, but they are still 20% below pre-pandemic levels, indicating a slow recovery in housing supply [50][56] Future Outlook - Analysts expect continued high demand for memory products, particularly in AI infrastructure, but caution against potential oversupply in the future as production ramps up [39][42] - The housing market may see improvements in inventory levels, but significant policy changes at the state and local levels are needed to address long-term supply issues [52][56]

Company Focus - SanDisk has experienced a significant rise in its stock price, rallying approximately 125% this month, with expectations for adjusted EPS of $3.54 and revenue of $2.67 billion driven by AI demand [1][5] - The company is highlighted as a key player in the storage sector, outperforming peers like Micron, Seagate, and Western Digital [4][5] Market Activity - There has been notable trading activity in SanDisk options, with around 125,000 options changing hands prior to earnings [6] - Approximately 60% of the options traded were calls, indicating a bullish sentiment among investors [11] Technical Analysis - SanDisk's stock has shown a strong upward trend, with new highs being reached, making it challenging to identify potential support levels during this rapid climb [7][9] - The five-day EMA is currently around 508, which aligns with the trend line, while the monthly EMA is at 416, serving as another potential support area [8][9]

Market Overview - The Federal Reserve maintained the federal funds rate target range at 3.5%-3.75%, aligning with market expectations[9] - The Hang Seng Index closed at 27,827, down 2.58% for the day but up 8.57% year-to-date[3] - The S&P 500 index closed at 6,978, with a slight decrease of 0.01% for the day and a year-to-date increase of 1.94%[3] Stock Performance - Gold prices surged, with spot gold exceeding $5,280 per ounce, marking a monthly increase of over 22%[9] - Semiconductor stocks saw significant gains, with the Philadelphia Semiconductor Index rising by 2.34%[9] - Major tech stocks showed mixed results, with Intel up 11.04% and Microsoft down 6% post-earnings report[9] Sector Highlights - Oil stocks continued to rise, with Shanghai Petrochemical gaining over 5% due to geopolitical tensions driving oil prices up by 3%[9] - New consumer concept stocks performed well, with a snack retail chain soaring 69% on its debut[9] - Airline stocks faced pressure, with China Southern Airlines down 6.83% due to rising operational costs[9] Economic Indicators - The U.S. dollar index fell to 95.51, the lowest since February 2022, contributing to the rise in gold prices[9] - The Japanese yen strengthened, impacting export-related stocks negatively, with Toyota down 3.24%[13] - The Bank of Japan raised its policy rate to 0.75%, the highest in 30 years, indicating a cautious approach to future rate hikes[13]