PTC Rises on Schneider Electric’s $23.7 Billion Takeover Deal | Closing Bell

All right. We are about two minutes away from the end of the trading day. Scarlet Fu. I have a Palmer here to take you through the closing bell. We've got a global simulcast. We're joined right now by Carol Massar and Nora Melinda. And we bring together our Bloomberg Television, radio and YouTube audiences worldwide. Welcome, everyone, to parse through the most crucial moments of the trading day. Carol. Um, it's been up, up, up. And we've stayed pretty much up this whole day. Yeah, just seeing a little bit of selling into the close. But I mean, you're right. Um, Scarlett, we've seen, uh, certainly a risk on trade. We're looking at, what, a Nasdaq 100 and a Nasdaq that could see another record today. Yeah. I mean, also looking at the S&P 500 entire by about 6/10 of a percent. But what was really interesting that Carol and I were looking at is we talk so much about tech, but what we were seeing really driving the market, at least in the S&P 500, that's materials. Yeah. Good old materials guys. Cyclicals. Yeah. Yeah. Exactly. And it's been a day for deals too. We've had the deal between Schneider and PTC for $23 billion. We've had the C.H. Robinson buying our. Oh. So it's been eventful when it comes to some of these giant billion dollar deals. And as Hamill was just reminding us, this is all happening as yields continue to stay near those multi-decade highs. Carol, I'm looking at the ten year yield at 5.31%. A lot of people are saying it feels inevitable that the 30 year is going to get to 6%. Let's talk with Ed Harrison of our own Bloomberg team. 6%. Could we even see 7%? Like, there are things that we not kind of need to be open to. Nora I mean, yeah, I think that was what's really interesting, as we're talking to folks about whether or not this could continue to go higher. But I mean, for right now, we're seeing the benchmark sitting at about 5.31%. Yeah, this is a three day rally for the S&P 500 for the Nasdaq. Carol, as you mentioned, record highs, four day games for the Nasdaq Composite and the Nasdaq 100. There you have the closing balance. And we're looking at, uh, green arrows all around for these major indexes. The S&P 500 gaining uh look at that. About 6/10 of 1%. The Dow industrials up by 2/10 of 1%. But the Nasdaq the clear winner here of 1.1%. The Russell 2000 um up about half of 1% on the day. All right, guys, let's, uh, just go back to the big caps, if I may. S&P 500. And it definitely has been a risk off trade for the most part. Scarlet. Not everything's up. Uh, 319 names though. Gaining in the S&P 500 182 to the downside. And you've got three unchanged. All right. Let's take a look at the IMF which splits the S&P 500 up into 11 industry groups. And you could see a lot of green there. The sole red slice of the pie is real estate investment trust. And of course the weighting is not very large. So it's a very thin wedge there that is down 4/10 of 1%. Everything else is up. The best performers here materials as you guys mention up 1.3%, communication services gaining about 1.1% and energy up almost 1%. All right guys, let's get to some of the individual gainers, if I may. And let's go to no surprise to see this one soaring. We're talking about PTC. Uh, this is of course the stock that was the target of uh Schneider Electric. So PTC up about 3.5% in today's session. Schneider electric will acquire the US engineering software provider PTC in a $23.7 billion deal. You mentioned, uh, the deal flow that we had on this Monday. It marks the French industrial conglomerate's biggest takeover. It's all cash, uh, $205 a share. Values PTC equity about 22.6 billion and represents, uh, a 42% premium to the last closing price. So quite a hefty premium, which might be why Schneider has been under a lot of pressure. Maybe investors are a little concerned about what they're paying, but time will tell. The deal was first reported on Sunday by the Ft. But it's going to boost Schneider's offering of software solutions that can aid manufacturers with designing industrial products and engineering specifications. So that's where it all kind of rolls in. All right. Let's go on over to space. That one up about 7.6% in today's session. Just closing at a time. Oh did it. Oh okay. Yeah. All right. Thank you for that. Um so closing at its highest level since June Morgan Stanley analysts say Elon satellite, SpaceX and I conglomerate is one of the cheapest ways to play. Quote unquote, the strong optionality of the space in an intelligence economy. The analyst thinks the I product releases Starship progress and more high priced Nio cloud deals could push the stock closer to $300. That's his price target on the stock. The stock closing at about 171 a share. He does have an overweight. So everybody you know love hate like it goes back and forth on some of these names. One more I just want to throw this in because this is interesting. Caught my attention courtesy of Bloomberg's Bill Maloney who pointed out the trade app. Loving it was a top gainer in the S&P and Nasdaq earlier in today's session, the stock snapping its longest losing streak ever. It was down on Friday down nine consecutive days in a row. The stock was up about 5%. I didn't see what the catalyst was. It's down about 60% year to date. Um, but nonetheless investors came back after nine days of declines. It's kind of meme, Right? That one up loving. Yeah yeah yeah, yeah. Exactly, exactly. So there you go. It is kind of Mimi. It moves around a lot if you take a look at the share price. All right. What do you got. Well, some decliners for us. Uh, C.H. Robinson worldwide, we've been talking about deals as well. C.H. Robinson buying our XO for nearly $6 billion is a $5.8 billion deal. So we're talking trucking and logistics. The company is seeing its worst day since July. And so much about artificial intelligence we tend to keep our focus there. Well, this is a bet on artificial intelligence helping the companies improve efficiency in a challenging freight market. And it's a cash and stock transaction, with a deal expected to close in the first half of next year. Our shareholders are expected to own about 11% of the combined company upon closing, and we do see shares of C.H. Robinson down by about 11% on the day. And from there, pivoting over to a line technology. And if you're not familiar with this company, this is the maker of Invisalign, which. Oh yeah. Yeah, I myself wear actually I'm not wearing it right now, but it should be, uh, the company actually facing renewed claims. The teeth look amazing, by the way. Thank you. Still working on it. One more week to go. Well done. I appreciate it. Uh, well, the company's actually facing renewed claims that it's monopolizing the market for clear dental aligners. And Carol and I were just chatting about this earlier, and I'm trying to think of any other company that reminds me of Invisalign. We had smile Direct, and maybe if you guys can think of any other names I can see, like they've all advertise on Facebook at one point or another, right? And then they evaporate and disappear somewhere. Okay, well, this talk is not about, uh, 2% a little over 2%. And this is just over the idea that investors are a bit concerned when you see any potentially legal overhangs here. Uh, and lastly, let's talk food. I always love to talk about food. Chipotle the shares down about 4.7%. So we really saw, uh, some heavy volume here when it comes to this company and the trading activity. Also heavy options activity. Uh, earlier today, we did see, uh, report out of Bloomberg that, uh, some of the options activity had volumes of more than 246% above the 20 day average. But this is a company that's really struggled down about 17% year to date. If you guys remember, just what, maybe a couple months ago, we were just talking about Cyclospora and whether or not that was actually affecting the company and the lettuce and a lot of concern there with consumers not really being interested in going to Chipotle. Well, it seems like it's still kind of struggling there. Yeah. And it's kind of cast a shadow over the company's stock at least. All right. Let's take a look at what's happening in the bond space. Um, you can see that yields at the short end have come down actually little changed at this point. The two year yield at 4.81%. Um but yields did move up. Uh, the further out you go on the yield curve, the ten year yield at 5.30% and the 30 year yield at 5.66%. So once again, multi-decade highs. A report on U.S. services showed cost pressures grew the most in more than four years. So that of course keeping that inflation concern in the markets. All right I love this story. It's, uh, courtesy of the information and it's about meta, and Microsoft apparently are working to cut their employees use of clod uh, information, citing unidentified people familiar with the matter. Microsoft, check this out. Lowering its earlier projected a billion spending on internal use of clawed AI by more than a third after it asked staff to, uh, use less cloud to save on costs and spend more time using Microsoft's homegrown AI tools, according to the report. Nor it's really you're not the only one. Yeah, they're not the only one. But it's really interesting, especially when you see how many people spend most of their day on a lot of these chat bots and whether it's ChatGPT, whether it's claw, Gemini, you name it. A lot of people are continuing to use this in the workplace. So it's interesting to see Microsoft in, you know, meta kind of redirecting cost money. Yes, money is expensive and redirecting to muse, I would guess to right. They must have to be a sabbatical. They've they've slashed by half from 60,000 people down using it to 30,000 users. Yeah. Would you miss it on your own time I think is the message right. And pay for it and pay for it. Exactly. Uh, the other story that caught my eye, and I know this is something that you pay attention to given that you've recently been paying college tuition and I'm free, actually, now a U.S. colleges are finally getting the message that prices are too high. Emory and Henry University, not Emory in Atlanta, just Emory and Henry University in rural Virginia cut its tuition in half to 19,000 from almost $40,000. And of course, the goal is to boost enrollment. But it's a real shift away from the previous practice of, you know, having a high sticker price and then offering steep discounts on it. There's so much stuff going on, right? You know, Scarlett, we've talked about because you too have kids, you know, in college and have gone to college. It's just this whole idea of how expensive it's got. And it's also kids are coming out and and maybe the job market isn't what they were promised. And I think we're rethinking, um, kind of what it's all about. There's also not as many kids being born. And so maybe we don't need all these institutions. I'm Canadian, so I will say that having moved here, um, and coming to learn about the cost of education. It really is quite a shift from some other places where, um, it's definitely, uh, not the sticker prices that we're seeing here. We saw an undergraduate. You're so polite. It's bananas here. But I think what's also interesting in the story is they're just talking about how folks are actually a bit more skeptical of the pay off when it comes to four year degrees, especially when you think about bills that can potentially approach $400,000, which is insane. But the truth? Well, the schools that are not cutting the prices we know are anything that's considered elite. The top 20, that's the top 50. They have pricing power and they're going to continue to charge what they can. I love that you went through I said, I think somebody in the newsroom like, tell me when Harvard and Yale are cutting their price. I mean, what they will say in their defense is that they do offer, um, basically free tuition if your combined family income is below a certain threshold and that threshold has been rising, but still super got to get in there for a super fair. But just so much has outpaced inflation, right? Like we've talked about this. It's such a uh, whenever these kind of stories come out, it's among the most read on the Bloomberg.