Nvidia Fuels Global Rally; Goldman & Boeing Management Changes

Bloomberg Audio Studios, podcasts, radio news. Good morning.

I'm Nathan Hager and I'm Amy Morris. Here are the stories we're following today.

That surge in futures, particularly the two percent gain for the Nasdaq futures, follows another blowout quarter from Nvidia. The AI Darling is up more than twelve percent in early trading. In fact, it's some more than fourteen percent now. The world's most valuable chip maker says revenue in the current period will come in at a better than expected twenty four billion dollars. On the conference call, in Vidia CEO Jensen Wang says the future looks bright.

We guide one quarter at a time, but fundamentally the conditions are excellent for continued growth calendar twenty four to calendar twenty five and beyond. And let me tell you why we're at the beginning of two industry wide transitions.

Nvidia CEO Jensen Wang says demand for Nvidia's newest products will continue to outstrip supply for the rest of the.

Year, and Nathan other tech stocks are riding the Nvidia train this morning. In early trading, shares of super microcomputer are surging about fifteen percent. Advanced micro devices, Planeteer and Marvel Technologies all up six percent, Applied Materials up almost four percent, Intel up about two percent.

Man, Amy, we're seeing the Nvidia effect impact stocks in Europe as well. Let's get the latest on that now from Bloomberg's un pods.

Good morning, un, Good morning, Nathan and Amy. The artificial intelligence party rolls on into Europe. The stocks ex hundred hitting a record high this morning, with optimism around economic growth feeding the rally. But it is the tech story turbocharging gains today, with the sectorizing after Nvidia's blowout sales forecasts. Shares in b Semiconductor jumping after reported high revenue on

Thanks you, and we were also seeing stock surge in Asia, in fact, a milestone for Japanese stocks. The NYK two twenty five index rallied more than two percent to close above a peak last achieved in nineteen eighty nine. Technology shares and chip gear producers led the gains.

Now this hype around in Vidia's earnings, Amy is overshadowing a hawkish tone. From the minutes of the Federal Reserve's last policy meeting, most officials remained more worried about the risk of cutting interest rates too soon than keeping them high for too long. We caught up with former Fed Vice chairman in current PIMCO Global Economic Advisor Richard Clarida.

Most of the members noted the risk of moving too quickly to cut rates. There was also a reference to some of the progress on disinflation may have been due to idiosyncratic factors, so that skewed a little bit in a bit of a hawk ish a direction. Of course, since that meeting, you know, we and the fat have gotten the CPI inflation data which came in.

Former FED Vice chair Richard Claieda says FED officials agree interest rates are likely at their peak, but the exact timing of the first rate content remains unclear.

On the political front, President Biden is weighing a unilateral attempt to titan migrant rules. Bloomberg's Ed Baxter has those details.

The administration is considering executive action, including curbing asylum claims by migrants crossing the southern border. This while the President's continuing to call on Congress to get border and aid packages passed. Any unilateral action would include the so called two twelve f which is very controversial and actually was

All right, ed, thanks right now. President Biden's on a campaign fundraising swing through the West Coast, and he's sharpening his rhetoric against Russia and the Republic Wilikins. At an event in San Francisco, the President called Vladimir Putin a quote crazy sob, and he laid into GOP front runner Donald Trump for comparing his legal battles to the death

And turning to Wall Street, a management surprise this morning at Goldman Sets, we get those details from Bloomberg's John Tucker John and Amy.

After thirty years at Goldman, Beth Hammock is calling it quits. The fifty two year old was seen as a top choice to become the next chief financial officer. That would have been a rare elevation for a woman. The lack of women at Goldman's highest levels has been a sore point. No woman has ever been appointed to the role of chair, a chief executive officer, president or CFO in the company's history.

All right John Now. Goldman Sachs is and the only company seeing a management shake up. Boeing has removed the head of its seven thirty seven Max unit more than a month after the door panel blowout on an Alaska Airlines model. Boeing says Ed Clark is stepping down effective immediately after nearly eighteen years of service. Katie Ringold is succeeding him as vice president of the seven three seven program.

And another company News. Shares of Rivian Automotive down fourteen percent in early trading. That evmaker has revealed plans to cut ten percent of its salaried workforce, and its production guidance is coming in well below Wall Street's expectations. Let's get those details now from Bloomberg's Charlie Pellett.

It comes as the maker of electric vehicles grapples with stagnant demand and economic turbulence. The company said it would build fifty seven thousand vehicles this year, roughly in line with its twenty twenty three output. The forecast fell far short of Analost Savage justament of more than eighty thousand

In New York.

Charlie Pellett, Bloomberg Radio.

Okay, Charlie.

Thanks now.

On the flip side, Mercedes is up about five percent. The German automaker announced a three point two billion dollars share buyback program amid better than expected cash flow. And now it's time to take a look at some of the other stories making news in New York and around the World with Bloomberg's Michael Bark, Good morning, Michael.

Good morning, Nathan. A District attorney in Arizona and Manhattan DA Alvin Bragg Aret odds it stems from a man in custody suspected of stabbings in Arizona and a murder at a Soho hotel in New York City. Twenty six year old Ride Almansouri is being held in Maricopa County, where District Attorney Rachel Mitchell says she will not willingly give him the to the NYPD because the times in Arizona could be mandatory prison time.

We will not be agreeing to extradition. I've instructed my extradition attorneys not to agree to that. We're going to keep him here.

These are mandatory prison sentences.

Then Mitchell took a swipe at Bragg, saying she has concerns that al Mansuri could be released on bail if he has extra died at Manhattan. Having observed the treatment of violent criminals in the New York area, Bragg's office fired back. A spokesperson for the Manhattan District Attorney said it is deeply disturbing that d. A. Mitchell is playing political games in a murder investigation. Attorneys for Wiki League's founder Julian Massage were in a British court fighting his

Julian's life is that severe risk every single day he is in prison.

He's a political prisoner.

He is the world's most famous political prisoner.

Lawyers for the US government argued Assage put innocent lives at risk and went beyond journalism in his bid to solicit, steal, and indiscriminately published classified US government documents. A court decision is not expected until at least next month. Justice. That's what the New York City Police union officials are saying about a thirty four year old woman being sentenced to the maximum twenty seven years in prison in the hid and run death of an NYPD officer on the Long

Well Jessica Bouffe was sobering up in a police station that morning.

Our world was collapsed.

During her sentencing, Bovey said, I am sorry that I hit him and that he is dead. New York City Mayor Eric Adams said he'll no longer carry out a plan round of budget cuts and would have affected libraries, trash pickup services to older adults. Adam says better than expected tax revenue from the city's economic recovery will halt plans to trim those services. Global News twenty four hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr, and this is Bloomberg Nathan.

Okay, Michael, thanks time now for the Bloomberg Sports update brought to you. I Trice state out of your's John stash Out.

Thanks Nathan.

When we last saw the next they were decimated by injury, had lost four games in a row back from the All Star break. Tonight in Philadelphia the next hoping to have some of those injured players like Isaiah Hardenstein, Dante DiVincenzo, and boy On Bogdanovich healthy enough to play. It's gonna be while for Julius Randall, and he did admit it's possible he'll need season ending surgery on his injured shoulder.

Now, I just thank guy for all the opportunities I've been through Yukon and ups and downs. With that, I've always learned and I'm gonna take those experiences from that as lessons and no losses in the wins. I'm gonna continue to you know, praise them and have them.

Also Tonight Lakers and Warriors know Lebron James as a sore ankle. Rangers tonight bring their eight game winning street to New Jersey. Bruins beat Edmonton sixty five and overtime. Toronto beat Arizona. As Austin Matthews scored twice, He's reached fifty goals in fifty four games. That's the Fewistons. Mary o Lemieux twenty eight years ago, much needed win for struggling Saint John's Red Storm blew much of a twenty two point lead, but held on and won at lowly

All Right, John, thank you and we go now to the top story of the morning. That would be in Nvidia delivering another quarter forecasting a massive sales gain for its industry leading artificial intelligence chips. It's adding to a streak that has made the AI chip powerhouse one of the most valuable companies in the world, certainly the most valuable chip maker for some analysis. We are joined now by one of Wall Street's loudest tech bulls, Dan Ives,

Look, this is a tower swift moment I mean for the tech bullmarket. AI revolution starts within video and this is a game change in quarter. It shows that this is not peaking, it's accelerating. This is jet fuel into the broader tech rally from Microsoft for chip memes for for what I view as as probably the most important earnings we've seen in five years.

It's not peaking, but it's accelerating. I mean it has been accelerating. It can in vidio maintain this kind of acceleration.

Look at one point, law of numbers in But the reason is in this quarter was so important. It shows what the enterprise demand looks like on the other side of this. And the important thing is that now this title is of spend, it's coming to the rest at tech. So we're going to continue right now to see a market that, in our opinion, that goes higher significantly because this shows the foundation of AI. This is not hype, real the AI revolutions on the doorstep.

So you're saying that Nvidia is the rising tide that's going to lift all boats. Does Nvidia as an individual company have to worry about some of those boats coming after it?

Look the godfather of AI, Jensen and Video and that's you know, when they talk, everyone listens because they're the only game in town for the next few years. Now, at one point they'll have competition. But right now, when it comes to GPUs fueling AI, it isn't VDA, it's Jensen. And that's why everyone, regardless where you are in the world, was listened to this call. I mean, you could say, you know, Steve the market. In my opinion, I think there's a different narrative. It puts more jet fuel in

Now, a lot of bears are gonna fire back and talk about in Video's valuation, that it's still trading at huge multiples on forward earnings. Do you see the outlook for Nvidia justifying those kind of numbers.

Look to transformational elite tech names, they grow into valuations, and I think those bears that have missed from Meta to Apple, to Tesla to Amazon to know every other transformational and tech name by sticking with the one year pe valuation, I continue think that's the role move and that's why they're deep in hibernation mode this morning.

But there I've got to be some headwinds for in Vidia. I'm thinking about, you know, the restrictions from China chief among them. What could that mean for long term growth if you've got the weight of China restrictions on a company like.

In Vidia, Yeah, need Like I'd say the biggest risk is China. It's not valuation, it's not demand. I think those boxes at all checked the China's story. Look, that was actually a headway in the quarter relative to even these numbers the restrictions. That's a tight group that now

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