Closing Bell: Trilogy Metals Higher, Oracle Falls, AMD Builds on Yesterday's Gains - podcast episode cover

Closing Bell: Trilogy Metals Higher, Oracle Falls, AMD Builds on Yesterday's Gains

Oct 07, 20256 min
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Episode description

Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Katie Greifeld, Carol Massar and Tim Stenovec.

On this episode of Stock Movers:

- Trilogy Metals (TMQ) closed with a 211% gain Tuesday as the White House said US will take a 10% stake in the company. BMO analyst Rene Cartier says “The binding letter of intent with the US Department of War highlights a significant milestone in the advancement of exploration and development of the Upper Kobuk Mineral Projects.”

- Advanced Micro Devices (AMD) shares closed 3% higher today, building on yesterday's gains. Jefferies upgraded to buy from hold following the chipmaker’s deal with OpenAI. Analyst Blayne Curtis said “AMD will still have to hit milestones, but this is a strong validation of AMD’s AI roadmap and the level of AI demand in general.”

- Oracle (ORCL) shares fell after a report that the company's profit margin in its cloud computing business is lower than estimated. Oracle generated $900 million in revenue from server rentals, but only $125 million in gross profit, according to internal corporate documents. The company's gross margin has been weighed down by heavy spending on chips and data center capacity, with its overall gross margin at 67.3% in its most recent earnings report.

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Transcript

Speaker 1

Bloomberg Audio Studios, Podcasts, Radio News.

Speaker 2

This is the closing bell on this stock movers report the company's making moves at the close of US trading with Carol Masser, Tim Stenebeck, Romain Bostik, and Scarlet Foo.

Speaker 3

If you look at the S and P five hundred, you've got more than two hundred names to THEP side, two hundred and ninety nine to the downside.

Speaker 4

And let's take a look at the sector level as well, slightly more red than green. When you consult the circle there, you can see that Tech is actually lower on the day. Feels like we haven't seen that for a while. That sector down by about half a percent. We know a lot of that comes back to Oracle in terms of what did well. Consumer Staples was your big winner when it comes to a percent, bases up by about nine

tenths of a percent. Financials too as well. But consumer staples being the big winner really speaks to the defensive mood in the market overall today.

Speaker 3

All right, Having said that, man some real standouts when it comes to gainers in the Tuesday Trade trilogy.

Speaker 2

Trilogy.

Speaker 3

I'm sure you'll have more to add. Trilogy medals up two hundred and eleven percent. It was up as much as two hundred and eighty one percent earlier in the session, but finishing with a two hundred eleven percent gain. Ticker is TMQ. It's a six dollars fifty cent a share stock. You know the story the United States taking a ten percent steak in the Canadian Minerals Explorer as part of a thirty five point six million dollar investment to secure

critical energy and mining projects in Alaska. We have seen this trade coming out of the White House, so there's a beneficiary in a big way. App Lovin down fourteen percent yesterday. It was a story that came on our radar late yesterday. Down fourteen percent in the Monday trade, but up seven point six percent in today's session. It was a top gainer in the S and P five hundred NASDAQ one hundred city coming out and saying that

they would be buyers on any weakness. They say that they noted that the regulator SEC has no officially accused app love and of any wrongdoing, so they're kind of a little bit It sounds like suspect. Keep in mind the big story yesterday Bloomberg News breaking that the SEC has been probing the company according specifically looking at their data collection practices. That was according to people familiar, but nonetheless investors moving back into app love and got to

mention AMD. It again was among your biggest gainers in the major indices, up another three almost four percent in today's session. This kind of another gain for a second day, up almost twenty four percent yesterday. So continuing to build, and that of course is the news that AMD has a deal with open Ai to build AI infrastructure. So some momentum continuing on this Tuesday tamp.

Speaker 5

Well, those are some of the gainers. I got some of the decliners for you. I'm going to start with Oracle shares today, falling by two point five percent, this after report in the Information said the company's profit margin in cloud computing is lower than many on Wall Street have been estimating. The Company's growth margin was sixty seven point three percent, the lowest in more than a year, due to have a spending on chips and data center

capacity oortle. Oracle shares earlier in the session fell as much as seven point one percent, but paired those declines to close down two and a half percent. The company declined to comment. Ford shares following the most today since February, down six point one percent. The Wall Street Journal reported that a fire at a New York State aluminum plant will cause months of disruption for Ford. It's the biggest customer of this plant based in Oswego, though Toyota and

Stalantis also used this plant's aluminum. City says it's too soon to cut fourth quarter North American light vehicle forecast, but the fire could present a supply risk for the period. Our Bloomberg intelligence team, including Steve Man, who's going to join our program in just about twenty minutes, says that the drop in the stock also reflects persistent concern overrising warranty costs and its EV business at the expiration of an EV tax credit, crimping demand and finally, watching shares

of sports betting platforms DraftKings and Flutter Entertainment. Flutter is the parent company fan Duel. Flutter down three point seven percent, DraftKings down five point eight percent. These took a hit today after Intercontinental Exchange, the owner of the New York Stock Exchange, announced plan plans to invest as much as two billion dollars in the crypto based betting platform poly market.

You can kind of bet on anything on poly market guys, not just about elections, not just about how many tweets elon Musk will send. That was a real one that I saw this morning, but also of course on sports as well. So that could be a challenge to these companies. And whether it's you're play.

Speaker 3

A sandwich well touring our show.

Speaker 5

Oh, that one's an easy one to sort.

Speaker 4

Of like the market.

Speaker 3

The odds are night not maybe so liquid, but the odds are that.

Speaker 1

You will okay, I have no idea what their.

Speaker 4

The sandwich is on whether or not he is going to all right.

Speaker 1

Well, you can also bet on where treasuries are going. You take a look at yields on the screen, they are down across the board. Here there's your point out that we had seen yields ticking higher for the last few days, really the last couple of weeks or so. A bit of a pullback today as some people pile pile back in on a rice basis.

Speaker 2

The Stockmovers Report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street and for the latest market moving headlines. Listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.

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