matt: we are 38 minutes into a really weird trading day. abigail: -- sonali: stocks stabilizing. wall street getting relief as it better than expected gdp data helps ease fears. matt: the biggest ipo. we speak with the cofounders of lineage as the cold storage firm makes its trading debut. katie: a conversation with the nasdaq ceo and will discuss the market and m&a strategy in just a few moments.

let's get a look at the markets. the s&p 500 taking a bit of a dive, off by .3%, following through on yesterday's losses. the nasdaq 100 even more so. big tech down .9%, had their worst day in two years yesterday. we will see how trading shakes out. looking at the bond rally, maybe a haven bid. 10-year treasury yield off by five basis points. matt: it looks like we are heading back down in terms of stocks. talk about it with lauren goodwin. it looked like yesterday the big slides we saw, biggest losses on the major indexes -- indices were kicked off by tesla earnings and google, both of which showed it is going to be a wild before ai and robotics start to pay off.

that theme that has been powering this market higher in just a few mega cap stocks look like it was a little bit stale. what is your view? lauren: i think that is really well said. our conviction is the artificial intelligence trend is here to stay but there are a couple of really important lessons that investors can take away from yesterday. the first is that a lot of the investment that is happening with respect to ai is incredibly capital intensive right now. that caused some of the mega cap companies -- cost some of the mega cap companies a lot of money and some may be under appreciating. the energy providers and data and structural providers are areas of the market we think are likely to benefit from capital-intensive nature of the buildout, even if some of the application layer may take more time. the second thing the investors

can take away from the jitters intact the past few days is that these trends, even if we expect them to be long duration, interesting for the next several years, they are prone to cyclical events and that includes how concentrated it has been in a couple of names. portfolio diversification strategies, especially if they haven't made any changes in the large run-up of these names. katie: an interesting point on ai that it is investing in hardware and builders and in terms of picking winners, maybe a bit premature. let's talk about diversification and what is going on in terms of the rotation into other sectors and other sizes. the small caps have been impossible to ignore and even today you have the russell 2000 up .6%, even as we see bigger benchmarks take a leg lower. what do you think about the durability of the broadening

out? lauren: this is a conversation we have been having for weeks. is the rotation in the small caps just about rates moving lower? we saw a similar bump for small caps and value stocks at the end of last year when they were pivoting toward heights and a plateau or is it what we typically see for small caps on the other is an economic cycle. there is still slowing of growth to come. while i expect we could see tactical bumps in small caps on months like this where economic activity is still good, rates look like they are moving lower. i would not put all of my proverbial eggs in that basket. the meat think about portfolio balance, one of the places where have highs conviction is using the transition in interest rates we are likely to see ahead to take gains in equity and activate them in high-yield. we are seed -- scene flows into

high-yield and short duration bonds accelerate over the past couple of weeks. that move makes a ton of sense to me in an environment where the economy is still looking ok but we are likely to see rate cuts ahead. lock in the higher rates. still price volatility as small caps but stronger yield as a result. sonali: do you think about market expectations, one rate cut or two rate cuts, but if you only see one, the reality is rates are still relatively elevated. how much does one cut matter? is there more pain to be had when you think about sectors that are highly levered when you see through to the end of this year into next year? lauren: it is such an important question. the first is to acknowledge that even if one rate cut doesn't matter so very much for the economy, it matters a lot for market sentiment.

we have already seen some of that transition. typically when we see a rate cut you see money move into the bond market trying to lock in higher rates. you see all kinds of deal unlocking in the private markets after a long wait and a lot of fundraising staleness and you are likely to see a loosening in financial conditions. that is real and it is real for the markets and powering some transitions we have seen. israel for the economy because luker -- looser conditions can provide stability. higher interest rates, policy rates are challenging for more levered areas of the economy and that can include small caps, which we discussed. it is our view the biggest risk to the economy and markets in the medium term is if we did see a reversal in rates expectations such that we would see higher for longer because that is an environment where credit that

has begun to seek challenges in the economy, lower income consumers, more levered companies, that allows that to continue which might make an eventual recession more painful. matt: great to get you on the program. i hope you can visit with us in the studio. lauren goodwin of new york life talking about these choppy markets. talking about what is going on with the ford motor company when it came out with huge headwinds with warranty costs and not getting as much traction in terms of margins at the ford pro unit that so many people have put a lot of hope in. and it will lose a lot of money in model e. it did better for the quarter but will lose $5.5 billion on ev's this year. sonali: the worst decline since march of 2020. when asking the question, do these stocks deserve these

banking level price declines? katie: these are crisis levels and it is interesting you are seeing it pulled down the rest of the complex. gm even with the good earnings and nuances is down 4.5%. matt: i often look at the automakers over a five year term and ford has done better than almost any others. stellantis, which is down big today, is the biggest winner over the last five days but ford is the second. abigail doolittle, you are watching stocks. what is moving? abigail: let's look at new york community bancorp back in the news for all it had been in the news, once again plunging, down 11%, the worst day since early march amid selling pressure having to do with loan loss provisions well above the estimate for the quarter that

was coming in at 390 million versus the estimate of 193 million. one of their subsidiaries, flagstar, selling the mortgaging billion -- the mortgaging company for $1.4 billion. abbvie up 4%. edwards lifesciences, the worst day going back to 2000 after the heart valve maker did miss its sales estimate. investors sending the stock lower. for the overall index, you were talking about how it has been a day, right now we are down because the big tech complex dragging. nvidia at 107. alphabet at 170.

too far into fast is what is weighing on the big tech names. matt: thanks very much. a down day for ford. looking at has dropped a long way. stellantis is still up over the last five years, 35%, ford at 20%. big moves to the downside. we will talk about that throughout the program. we will talk about nasdaq earnings with the ceo adena , friedman. we will talk about the ipo market outlet and other businesses diversifying and making more money. this is bloomberg. ♪ ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. ♪♪ go deeper with thinkorswim: our award-wining trading platforms ♪♪ unlock support from the schwab trade desk—

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sonali: the nasdaq out with the latest earnings, beating on revenue and profit and this year's biggest ipo, lineage, also begins a trading on the nasdaq. joining us is adena friedman, the chair and ceo of nasdaq. there is a lot of excitement. the largest ipo of the year listing on nasdaq. what does the pipeline look like? can you see the second half of the year has more room to run, especially with the election ahead? adena: thank you for having me. we are for the quarter with 10% overall growth. we had 29% growth in index business and 16% in business technology business which has been a real strategic focus for us. as we look at the ipo landscape, we have seen slow progression in

the ipo market coming off of a very tough year in 2023. very excited about lineage this morning joining the nasdaq family of companies. we are starting to see investor appetite increase for taking a risk with the ipo's. i would have to say we still think it will be slow progression as we continue through the year. the monetary policy outlook and other geopolitical factors are still keeping investors a little bit more risk averse. we are seeing good progress and we think that going into 2025 we should see more momentum in terms of the pipeline of companies we have been talking to. sonali: when you think about the competition in this market, do you think nasdaq has an ability to gain even more share? what does it look like behind the scenes? adena: we meet with companies years before they go public. we really focus on the complete

lifecycle of the company. when they are early stage companies, we work with them and help them in the private markets to manage liquidity and on their governance practices and making sure they are maturing governance. we introduce them to investors before they go public. and then they go public and they become the companies and we help them become great public companies. we are talking to companies well before their ipo plans so that as they think about the public markets, they think about nasdaq. we had a 72% when -- win in the quarter. matt: we saw a global i.t. outage a couple days ago, reminding the world how fragile things are. mastec was fine and you offer a suite of i.t. services to guard against those things and financial crimes that i didn't even know about.

showing huge growth. talk about the new businesses you have diversified into. adena: with the crowdstrike challenge, our markets were not affected. you can always learn lessons from those types of situations and we are partners with our clients. we talked to them and work with them on redundancy and all of the things they can effectuate to help manage those types of challenges or prevent those types of challenges. our fintech division is where we sell technology to other exchanges and we have regulatory reporting and all of the core challenges that banks and broker's in managing their lives in banking and that grew 16% in the quarter. we are seeing huge demand from our clients. at 67 new clients sign up for our technology and 100 off cells

and four cross cells. matt: as we look forward to an election in november and prepare for a slate of maybe new regulations or fewer regulations, how do you think about the outcome of the november elections for your clients? adena: we look at the fact that the nasdaq as a market is successful in any administration. mastec is a company, we focus on managing through political cycles and have been here for 52 years and expect to be here for another 252 years. when it comes to the overall corporate environment and what they look for, they look for consistency, predictability, and an administration that fosters growth. that fosters economic growth. regardless of who is in office, can they create consistency, can they create predictability in

the regulatory environment, and can they put in policies and practices that drive innovation and growth. that is what companies in general look for. sonali: i want to go back to the other businesses that are not ipo's, financial businesses. when you think about artificial intelligence, generative ai, where are you seeing the biggest payoff? you look at corporate america and people are investing, investing. where are the dollars at the end of the road? adena: it is super important to get the right infrastructure and architecture. mastec has been investing in moving technology solutions into a cloud environment now for over 10 years and that is paying off. by doing that, you're modernizing your data infrastructure and architecture and making it so that you can bring new technologies in faster and you can play offense much more quickly. a couple of things we have been doing, first in the markets we launched the midpoint extended life order which is an ai driven

type that is sec approved. we see a 20% improvement in fill rates and volumes since we launched that in april. that is an algorithmic ai capability. generative ai is a new technology that came onto the scene quickly. if you have your infrastructure and data in a cloud environment, it allows you to take those capabilities in. so the anti-financial crime tool, we launched a research copilot that automates the process of researching entities that have generated an alert in the system. it takes the time to do that down 90%. it really automates the workflows. we have a new investment tool for asset managers to summarize pension board meetings which gives them quick insights into the strategies into the tensions and allows them to engage better. sonali: as a ceo, how do think about future investment in ai?

is it going to investment or retraining workforce? adena: we say it is on the business and in the product. we are launching the product and teaching our clients how to use them so they can be more efficient and also introducing new tools. we introduce the copilot tools for our development. we should be fully rolled out by the end of q3. we make sure they understand how to use them and where we see the most benefit and we have done over 650 employees participating in some hack-a-thons to help them understand and how to create new capabilities in the products. that is a big part of our future. matt: you are on the board of the new york federal reserve and

we got stunning gdp numbers, 2.8%. higher quarterly pce then had been expected, lower at jobless claims than had been expected. what is your view on the economy and do we need rate cuts? adena: at the highest level of the economy continues to be quite resilient. we are seeing that inflation is coming down and normalizing. you are seeing gdp growth slowing but still robust. you are seeing the high cost of capital impact larger parts of the population and citizens are really starting to be impacted by that cost to capital. that is an interesting calculus for the fed to have to manage through. with rates at restrictive levels at five point 5%, you have a big delta between gdp get 5.5% growth, you have a bid to -- big delta between the gdp. even though it came up higher,

it is coming down quite precipitously from last year. matt: is there an inverse relationship between rates and ipo's. i imagine if they are high the cost of capital from private credit lenders is higher and you might for an ipo. adena: when investors evaluate a company for an ipo, they look at what is the potential future earnings and they do discounted cash flow analysis. if the cost of capital is higher they will discount the future cash more. it actually has an inverse reaction where the higher the cost of capital, the lower they put on future earnings values. that has had the effect we have seen on ipo's. why has the ipo environment been so difficult is because the cost of capital has gone up and they have a hard time modeling future cash flows. now we think perhaps the cost could moderate and that makes it easier for them to predict

future cash flows. we think that could be a catalyst for more ipo's going forward. sonali: whole market working on the valuation reset. we thank you for your time. that is adena friedman, chair and ceo of nasdaq. we will speak to the cofounders of lineage. this is bloomberg. ♪

katie: that's a check on the markets. one hour into the u.s. trading day, really interesting. the s&p off of the lows of sessions but still lower on the day, down .2%. big tech taking the brunt of the selling right now come off .8% on the nasdaq 100. the bond market may be a haven bid, 10 year yields down six basis points at the individual stock level.

particularly the airlines, you think of american shares currently higher by 4.5% despite the disappointing outlook they gave. i don't know how to explain the reversal. as you can see, american up and also southwest. matt: it is interesting. we were talking to george ferguson, our aerospace and airlines analyst and he was saying maybe it is about the constrained capacity. southwest said it would take seats out. they have aced pricing pressures. if they constrained capacity they can justify at least holding prices at the level they are now. sonali: if you can charge more you can make more and maybe that is the end of the story. katie: supply and demand lessons as we relearn. coming up, we speak to the cofounders of lineage, this year's biggest ipo. that is live from the nasdaq as they begin trading today.

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katie: largest ipo of the year so far. lineage going public. shares indicated $80 each, above the ipo price. the cofounders of lineage, great to have you. with any ipo, we have to talk about timing. adam, there's been chatter for a couple years. why now?

adam: we set out to build a forever company. we wanted to take good long-term decisions. it was the right time to grow at scale. to continue to bring in the best assets. katie: i want to ask what you are going to do with this money? you have made many acquisitions over the past decade, 75 in the past four years. will we see more from you? kevin: we will continue investing and customers, we will buy the best companies. we couldn't be more proud.

there is an exciting opportunity. we've been waiting for this moment. sonali: warehouses are the hottest place to look right now. what does this mean for cost of acquisitions? are you facing more competition? kevin: we are bringing the sexy back to cold storage. our niche is separate from the dry, industrial space. it is fortunate to have this sheet to overlay this technology our team built. it puts us in a unique situation. we couldn't be more excited. adam: when families sell their

companies to us, they are selling their life's work. it is more than a transaction. that has been our ethan oh's from the beginning -- ethos from the beginning. sonali: norway committed a some to the ipo -- sum to the ipo. what was the process like? how important was it to you? adam: privileged to raise equity from private investors. in doing that, we've gotten to know the public side. we have one company. this is what we do. it was about bringing the best we could.

norgis was incredible. matt: i wonder about your power sources. where do you get the majority? what do you do to make sure you have enough? kevin: it's unique. one of the few large users of power that can shed loads. our warehouses can be large thermal batteries. it is less expensive. we can reduce the waste. with data centers, there is concern about power. we built our first warehouse off the grid using solar and linear generators. there's a ton of things we are

set up to do. we are set up to charge trucks. we couldn't be more excited to enable the infrastructure. matt: when you look to the potential regulatory changes, do you think your business would do better if it was easier to put up cables? adam: this has been a durable growth business. we have been through different cycles, political environments. food flows like water. global supply chain. we don't have a view on it being different. kevin: people are going to eat no matter who is running the place. katie: fairpoint. the majority of customers are food companies. where are you thinking about

expanding? my mind goes to blood storage, drugs, pet food. kevin: you are spot on. there's a lot we can do. 90% focused on the food industry. like data centers are for tech companies, we are the food infrastructure. we can do that in the pharmaceutical space. there are all types of ways to use the technology we have built. our growth is unlimited. being public is critical to continue growth. sonali: at the end of march, you held interest of more than 200 temperature controlled warehouses.

can you double that? adam: we are at 480. we can continue to grow. since the first warehouse, 2008, we have grown 40%. we built this for growth. we've invested in infrastructure, time and energy into a team that can build new assets. we are the best capacity provider for the industry. matt: great to have you. thanks. the biggest ipo so far this year. up and down day. abigail: big time. nasdaq 100 down 1% moments ago.

yesterday the worst day since '22. three day view. the recovery now down half a percent over this time period. lots of selling. nvidia now 112. support is broken. the next level of true support could be sub 100, suggesting the big tech complex could go further. microsoft, apple and meta earnings coming up. nvidia not until august. can they put out another blowout quarter? might be soft. nasdaq 100 in context, yesterday

below the 50 day, now down on the 100 day. in april, we went below the 100 day, then backup. last october, we went all the way down to the 200 day. looks like there is weakness ahead. we would be remiss if we didn't include ford having its worst day since '09. they missed adjusted profit estimates having to do with higher costs of warranties. this stock sliced below the 200 day. not a lot of support. katie: brutal. not something you see often. thank you. coming up, the difference between volatility and risk.

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abigail: coming up, lina khan. katie: investors balancing election risk with underwhelming earnings. david westin asked david hunt why investors should watch out for political risk. david: i wouldn't say it has heightened relative to the long-term sweep of history.

we've had moderation since the gfc. the pandemic and two wars, we have started to see these reemerge. it's more getting back to normal then it is heightening of the averages. this summer of democracy which we are still working through his heightening that. we've had more geopolitical risk. as i travel talking to institutional investors, their number one risk is geopolitical. they want to talk about it and what it does for their portfolios. david w.: the intersection between economic growth and the path forward.

you are a long-term investor. how do politics affect long-term growth of europe? japan? u.s.? david h.: long-term investors have a different attitude toward volatility. that's the difference. popular media confuses volatility and risk. when i say heightened volatility, that can spell opportunity. the only way you lose is to sell an asset for more than you bought it for. long-term investors tend to look through cycles. they use changes in levels to get in at a more attractive rice -- price. as we look forward to increased volatility -- the clients have

enough liquidity to move in size when the times right? as people have moved more into private and liquid assets, liquidity has been squeezed. a lot of work we do is to make sure they have liquidity to make sure they can move when the timing is right. david w.: long-term growth prospects. right now looks like europe is different. david h.: we are seeing a big rotation in how people view growth and where they are putting capital. in europe, in general people are pessimistic about growth. e.u. is no bigger now than it was in '18. doesn't seem to be breaking out of the cycle of low

productivity/growth. meanwhile, asia on the one hand japan in a new found optimism. they finally have inflation back. growth has come back. they are constructive about reforms they made to corporate governance. there's more optimism then we have had in a long time. japan has been the leading country to benefit from tensions with china. many are now building plants and supply around a strategy based in japan. japan is more positive. china is more difficult. last week we didn't see concerted action we thought needed. people are worried there isn't

going to be a resurgence of consumer spending but rather continued focus on manufacturing. no new money at the moment going to china. to the u.s., as difficult and we like to focus on the problems, actually productivity is not bad . growth is powering through. u.s. is doing well relatively. katie: david hunt with david westin. stockmarket interesting territory. movement under the surface. sonali: s&p trying to scrape green. nasdaq 100 keeping up losses.

green on the screen in the banks. that's my favorite today. new york community bank sale of long book and the index up 1%. this is bloomberg. ♪

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matt: netanyahu will meet with president biden at 1 p.m. later he will meet with president trump. we round out pce. quarterly numbers today. monthly numbers tomorrow. university of michigan, those

wolverines have sentiment expectations out and we pay attention. katie: nvidia shares turning. they were down 7%. positive territory. interesting market and political scene. nancy pelosi endorsed kamala harris. nancy: it's all over. that's not how washington should run. under, harris, people's voices will be heard in a different way . big oil, big pharma, big guns, big money. it's about the people. katie: better late then never. the host of the big take podcast

joins us. the running mate. she has until august 7. >> there will be a virtual roll call of delegates. we have the short list. governors and senators, she is interviewing them with eric holder. nancy wanted joe biden to have the opportunity to give the american people an explanation of why he has done this. he talked about passing the torch. i think she feels liberated to endorse. matt: speaking of liberation, now that biden is not running,

does he feel liberated to do things differently in terms of policy, support of israel, against hamas in gaza, in terms of more progressive goals? david: he talked about what he wants to accomplish in the next six months. he's going to keep working. there have been calls from republicans to step down. he put that to rest. he went through the accomplishments. he will keep working. on the podcast today, we talked about -- is this the moment for him to take a big swing? he's had success on scaling back. could he do something? interesting if something like that may come out of these meetings.

, harris -- kamala harris comes back from texas today. sonali: 100 some days. holing from emerson -- polling from emerson showing harris trailing trump in four states. she will be meeting with netanyahu. what is it? david: this is a huge moment for her to show herself as meeting with a world leader. matt: she's going to want to leave him divided. -- to biden. david: we don't know enough about her stance on israel. she has expressed more sympathy toward palestinians in the past. how she sets the tone will be

fascinating. i think there is movement in the numbers now. that's what the campaign wants to take advantage of, the excitement surrounding her. katie: great to see you. appreciate your reporting, david. a reversal underway. nasdaq 100, big tech benchmark. we've erased the decline. sonali: unbelievable. katie: back to unchanged. matt: when you've got concentrations, $3 trillion market cap companies, any little move is enough to change the index. nvidia had been down 1%. sonali: 7%. matt: now it is up. katie: we will track that.

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announcer: this is bloomberg technology. caroline: live from london, coming up, stocks whipsaw. the micro picture. the ceo of service now on earnings. venture funding with vanta