>> this is bloomberg markets. let's get a quick check on those markets in the midday hours of the s&p 500 and nasdaq hit session lows in the last few minutes. s&p 500 down .75%. nasdaq down 1.8%, similar to yesterday. the third a down day for the stocks index, similar companies moving this market around. some retailers doing well, some chipmakers not doing so well.

medical companies in there, as well. biotech companies pulling the market lower. caesars entertainment, we will be talking about that. the 2-year yield at 4.4893. data was pretty benign, showed inflation easing. although it is still elevated. crude oil coming off a little bit more, 77.44 a barrel. we already know stockpiles are pretty high out there. gap shares are surging, sitting at their highest levels since 2021. it reported better-than-expected results in raised their outlook for the new year. the new ceo richard dixon, who revitalized the barbie franchise for mattel, is overseeing a

turnaround for that company. shares of apple are o n track for their biggest gain of the year. the s&p 500's first-quarter earnings season better than anticipated but it was driven by the same character that rallied at the end of 2023. now the health care and commodity sectors need to get on board the growth train as tech nears its peak growth rate. gina martin adams joints me now. is it finally time for the worm to turn? gina: one would hope and that is in analyst forecast. we are experiencing peak growth conditions, or maybe just past, for tech and tech adjacent sectors which certainly power the bulk of the early recovery from the s&p 500's earnings recession of 2022-2023.

but the analyst community is expecting that to change pretty materially. we should see accelerating earnings growth through the remainder of 2024 and into 2025, to the point where tech and ex-tech industries are pretty evenly matched. vonnie: what will power that? we are looking for the labor market to soften a little bit, wages to soften. all the data that we got today, personal income and spending disappointed. gina: what we are looking at, consumer data points tend to be more important. ism survey reached its trough more than a year ago now. investments are slowly recovering in fits and starts. manufacturing investment is generally improving pretty quickly. yesterday's gdp report, something of a disappointment but business trends holding up pretty well.

those are the leading indicators of activity outside of the consumer space that tend to power index gains going forward. the other thing that's important to watch is the yield curve, still in inverted territory. inversion reached its maximum point several months ago. that should allow for better profitability coming out of the financial sector. these are really slow improvements so far, we don't want to get too far ahead of ourselves. tech has been a strong growth driver for the index, but those sorts of indicators suggest we will see a general broadening of conditions. the other thing i want for is inflation. energy and materials are very inflation-sensitive sectors. during disinflation they struggled a bit, and that we should see some stabilization there. last but not least is health care. we've had some big accounting charge of dragging on health care performance. those should be coming to an end by the middle of the year,

creating some growth's prospects -- growth prospects for that space. vonnie: these have nothing to do with what drives tech, so is it mutually exclusive where if these other companies rally, tech also can rally? can we see the mag do as well as everybody else? gina: definitely you can see a rising tide will lift all boats. the trouble for tech is the cops. tech started producing double digit earnings growth in the second half of last year, so the comparison get more difficult. it doesn't mean that tech will not produce earnings growth, stocks will not perform fairly well, but we do see toughening comps. the rest of the index is pretty easy comparisons, slight tailwind emerging. i think it is just a cyclical phenomenon.

tech happens to be in front of this cycle improvement. the rest of the sectors have yet to catch up. what we see in that environment is probably a broadening of performance across the s&p 500, consistent with and earnings performance broadening. it has been slow to come so far. certainly want to keep a close eye on it. tech has consistently outperformed analyst expectations for the last several quarters. even coming into this quarter, expectations were high, and tech companies were still able to surpass that high bar. if tech can continue to power forward at a faster than expected pace, that can change the game for those stocks as well. vonnie: you say tech has been delivering, particularly the likes of nvidia, raising the bar at every earnings season. at some point presumably that. or slow down. is the market over dramatizing potentially not meeting expectations?

you saw dell today, shocking double-digit decline. this was after a nice performance last earnings season. is there a risk that if nvidia doesn't beat substantially in one of the coming quarters, the whole market sells off and begin days of declines? gina: it really depends on the conditions in which this is happening. if the analyst consensus is correct, and we are moving into a broader earnings recovery for the non-tech industries, we will be inherently less reliant on nvidia's results in that environment. you would anticipate, if nvidia misses, it will hurt ai, ai plays throughout the chain because it has been a critical part of that story, narrative. but if that presumed miss comes along with an environment where we are seeing significant beats

and raises in the index, that can mitigate the impact. it just depends on what is happening in the rest of the index if and when we ultimately get a miss on a i. we have seen some healthy developments as well this quarter and that companies themselves have started to edge back expectations on ai's impact. for the last couple of quarters, we have seen company sentiment decline a little bit toward ai, toward the impact of ai. they are still positive on the long-term productivity enhancement, positive in the tech space on the long-term revenue growth provided by this new technology, but ultimately they are saying, it may take a little bit longer, it may be a little bit slower than many anticipate. we are already starting to see some rationalization of expectations in ai, and that is a healthy condition for the market at large. vonnie: the nasdaq is down 1.6%,

s&p, down 1.8%. fantastic context. thank you, gina martin adams. dell stock getting hammered in today's session as earnings disappoint and its ai server backlog grows. that is our stock of the hour. this is bloomberg. ♪

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vonnie: this is bloomberg markets. time for our stock of the hour. shares of dell tumbling after its first revenue increase since 2022 wasn't enough to impress investors with high expectations for the ai server business. i senior analyst of joints me now.

are investors reading more into this, reading into the other ai companies suggesting there might be a bleed on effect, that this is the canary in the coal mine that ai isn't going to be the cash cow that everybody thought? >> the expectations heading into the results were pretty high. i want to take a valuation perspective to this. if you look at traditional hardware companies including dell prior to this ai boom, trading at 9010 times. heading into results, trading at roughly 21 times. so there was a lot of fraught in the business. ai server did really well but the backlog number tripped dell up, especially given the high expectations. vonnie: nvidia has solved revenue problem in some ways, decided how people are going to pay them.

you can do that when you have a monopoly. how does dell solve that for their revenue when it comes to data servers? woo-jin: if you think about nvidia in relation to dell, nvidia sales their gpu chips and cards to dell, dell helps to assemble it, install it to the and customers -- end customers. a lot of interesting customers purchasing from dell and their competitors. tesla is rumored to be one. there is a private company called core weave also buying. we are still in the early innings of this ai factory revolution. dell, who has been a long time corporate systems integrator, they will continue to sell into them. vonnie: can i ask you about something that crossed the wires yesterday in the u.s. session, where nvidia may not be able to sell chips in the middle east.

is that a significant impact to the bottom line if it happens? woo-jin: pretty interesting. the u.s. is starting to be very cautious of where american companies are going to sell the ai assets. nvidia is already sanctioned to some degree of selling into china. in terms of saudi arabia, it may prevent further upside. given the demand overall in the u.s. and europe, you should continue to see momentum for nvidia. vonnie: absolutely. thank you so much for joining. some breaking news to bring you now from the wall street journal. disney and comcast have hit an impasse in their hulu negotiations. we know they are tens of billions of part in terms of negotiations. rb capital has been chosen as an

independent appraiser, but the question of how the process should continue. we have the perfect person to talk about this because we are also watching shares of caesar entertainment, amassing a sizable portion. icahn saying that he would never do activism in seniors. let's talk about this with chris palmeri. the disney-comcast impasse to be expected, but they are tens of billions of part in terms of valuation. will they reach consensus? >> they put in a mechanism to fix this. we knew that disney agreed to around $10 billion in this process. the ceo of comcast said he thought it was worth about $30 billion. there was a process where

investment bankers would come up with a number, pick up a third investment banker presumably impartial to pick something in the middle. whether they can still argue out of that agreement remains to be seen. vonnie: the other story i have to talk about today is caesars entertainment. you have to have sympathy for a company that has been picked apart for so many years. what is going on with carl icahn, what does he want? >> carl has invested in casinos for decades all over the country, including ones a 10% stake. he pressed for this big merger with a regional casino operator. he says he likes the el dorado ceo, tom reed, who is now the ceo of caesars, known for cutting costs. all the casino industry benefited coming out of covid,

one of the first businesses to open, people spending that money locally. recently, regional casinos have slowed down, las vegas is still on fire, but the stock market is concerned about casino operators. can they keep this momentum going? caesars in particular doesn't have a lot of businesses internationally like some of its competitors. it is not a huge player, number four or five in sports betting. the question is where does the growth come from from here? icahn sees value. the stock price went down quite a bit this year. vonnie: is it just coincidence or is there something special about caesars itself? we remember the massive lbo by apollo, how that ended, coming in to restructure the debt. now we are at it again. what is it about caesars? chris: the casino business, very

predictable, people come in all the time. the number two player after mgm. they have other properties there. they have a brand, the largest network of casinos in the u.s. that was part of the allure. get them spending in iowa and then have them spend more in vegas. that is part of the caesars story. but it has not been an easy ride. vonnie: today, they are not getting burned, not if they were in before 11:00, because shares are up about 13%. chris palmeri, thank you so much. coming up, trump says he has raised tens of millions of dollars since his guilty verdict. we discussed where wall street's

elite are putting their money in this election. this is bloomberg. ♪

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i've got another one. >> last night, we just got a report this morning, in the history of politics, i believe -- maybe i'm wrong but somebody will find i am wrong maybe but i don't think so. they were used with small money donors, meaning $21, $42, $53, $38, a record $39 million in about a 10-hour period. vonnie: as you heard, former president donald trump is raising a ton of cash following his guilty verdict in the first criminal trial of a former u.s. president. he says he raised $39 million. bloomberg news reporting it was

closer to $34 million overnight. he is also announcing support from wall street elite. let's discuss all of this with jordan fabian in d.c. he says 39, we say 34. still a huge chunk of change, may have crashed their website. how is former president trump guilty on 34 felonies raising so much money right now? >> we saw the same thing play out when donald trump was indicted last year in four criminal cases, a russia republican support from his hard-core base. rallying around him. these are people that buy into the claim that these prosecutions are politically motivated, so they are coming out to demonstrate their support for the republican presidential nominee. whether he can sustain that momentum and make the same appeal to independent voters in battleground states remains to be seen. vonnie: we will see that through the coming weeks.

you have to worry about the bigger donors. how can they possibly support a criminal? jordan: it's a great question. this criminal conviction is a watershed moment in u.s. politics. if donald trump were to win the election, it would raise a lot of questions about the rule of law. these wall street billionaires don't seem to be asking those questions. they are throwing their financial support behind trump. you mentioned mary abelson, bill ackman. for them it is the bottom line. trump is promising lower taxes, lower regulation. they value that over all the other concerns that a second trump presidency may prompt. vonnie: will there be any questions about donating? jordan: they are donating to his political committee, so not to trump personally. i'm not sure there would be any

legal barriers there but there are some practical questions for donald trump. the sentencing in the new york case is july 11, only four days before the republican national convention is due to begin. if he is sentenced to jail -- a lot of people think that he won't be -- but how would that work out for a major party presidential nominee, not to mention a former president secret service protection? this all goes to show how the u.s. is now in uncharted waters with someone who could be president being a convicted felon. vonnie: i suppose if you are going to give money, now is the time because that is when he will be most noticed. if you are a big money donor, that doesn't preclude you from also donating to everybody else. jordan: some wall street donors have chosen to still withhold support for trump and focus on down ballot races. house, senate candidates, candidates for state governors.

one of them is ken griffin, who has not gone into the race for donald trump yet. there is still some skittishness among some donors but we are seeing some big names rush into the fire here, disregarding any concerns about this criminal conviction because they value their financial bottom line above all else. vonnie: fascinating time to be in the united states. jordan fabian, thank you for all of that. let's take a look at where we stand markets wise. it has been an incredible week. we saw three days of selloffs or the stocks index, down close to 4% on that particular index. that is dragging the nasdaq 100 down. the s&p down .75%. the dow is still positive. bitcoin trading just above 67,000.

no fears about what the opec meeting will come out with. after pce data, we saw yields back up a little bit. weak auctions also contributing to those moves. that does it for bloomberg markets. this is bloomberg. ♪ feel more confident with stock ratings from j.p. morgan analysts in the chase app. when you've got a decision to make... the answer is j.p. morgan wealth management. her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. it's an amazing thing okay, that's uncalled for.

when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. >> from the world of politics to the world of business, this is "balance of power."

♪ live from washington, d.c. joe: donald trump raises millions on the verdict. welcome to the fastest show in politics, as the former president delivers a stem wonder from trump tower this day after being found guilty on 34 criminal charges. i'm joe mathieu alongside kailey leinz in washington this day after the breaking news. remarkable updates on fundraising for the trump campaign. he is certainly not getting poorer. kailey: yesterday was a story of an historic moment, former president, presumptive republican nominee adding a new title, convicted felon, but to this point only seemed to be working to his benefit, at least in dollars count as votes until the real voting happens. according to the trump campaign, $34.8 million