0813 | Stocks Rise, Oil Drops on Flat PPI; Cisco Slides, Workday Jumps, AMD Bond Sale

Mia: Welcome to After Market, I'm Mia, and I'm here with my co-host Milo. On today's show, we're diving into a day of mixed signals on Wall Street — stocks climbing while oil prices pulled back, plus some big movers in the tech and chip space. We'll also look at a key Treasury auction and what it means for government debt.

Milo: And I'm Milo. Thanks for joining us. We've got a packed episode ahead — from software stocks on a takeover report to a record-setting bond sale. Let's get into it.

Mia: Let's start with the broad market. U.S. stocks moved higher while oil prices dropped — and a lot of that comes down to fresh inflation data. Wholesale prices were flat in July, which came in below the 0.2 percent increase that economists on the Dow Jones consensus were expecting.

Milo: So the flat reading on wholesale prices was seen as reassuring on the inflation front, and that led traders to pare back their bets on further Federal Reserve rate hikes. Now, that's a positioning shift rather than a policy change, but it explains the tone in the market. Fed commentary kept the policy path in focus too.

Mia: Right, and we heard from Cleveland Fed President Beth Hammack, speaking at a Dayton Area Chamber of Commerce event in Ohio. She described the labor market as broadly stable, but said inflation has been missing the central bank's target — and she's quoted as saying the Fed needs to act now on inflation.

Milo: On the other side of that debate, former Dallas Fed President and current Goldman Sachs Vice Chairman Robert Kaplan said on Bloomberg Surveillance that the Fed was right to hold rates steady in July. He also said Chairman Kevin Warsh needs to give more details about policy when he speaks at Jackson Hole — so that appearance is shaping up as the next big signal for markets.

Mia: Now to a notable stock move — Cisco shares slid about 8 percent, even though the company beat earnings and delivered stronger-than-expected guidance.

Milo: So, an earnings beat, a guidance upgrade, and yet the stock dropped. Cisco's been showing booming demand for its AI infrastructure, but it seems the results just weren't good enough to satisfy investors. The reporting doesn't specify exactly which line items disappointed, or whether this happened in regular trading or after hours.

Mia: It's a reminder that when expectations get high, sometimes a beat isn't enough. The confirmed signal here is that investor reaction to the report itself was negative — an 8 percent slide on what looked like a solid quarter.

Mia: Another big mover — Workday shares jumped, with the session described as the software company's best day in ten years. That move came on a Reuters report that private equity firm Silver Lake is in talks to purchase the company.

Milo: To understand why the market reacted so strongly, it helps to know the backdrop. Workday investors had been on edge over the prospect of AI disrupting the company's business model. So a potential buyout from a big private equity player was treated as a positive catalyst in that environment.

Mia: Now, important caveat here — this is a reported story, not a completed deal. The shares surged on the news that the two sides are in talks, but there's real uncertainty about whether the discussions produce an agreement. No terms, valuation, or timeline were provided.

Milo: So the next signal to watch is follow-up reporting from Reuters, or statements from the companies themselves, on whether the talks advance — and whether any buyout would actually address those AI-disruption fears that had been weighing on investor sentiment.

Mia: Staying in the chip space — Advanced Micro Devices is set to raise 4.75 billion dollars in what's reported to be the chipmaker's biggest-ever U.S. dollar bond sale. It's also part of a broader wave of corporate debt tied to the artificial intelligence boom.

Milo: Now, there's a little nuance in the reporting here. One report presents that 4.75 billion figure as the set amount, while a separate headline, citing a source, says AMD looks to raise between 4 and 5 billion dollars in a debt offering. So 4.75 billion falls inside that range — but the two items differ in how certain they are about the final number.

Mia: What's clear is the strategic significance — this would be AMD's largest-ever U.S. dollar bond offering, and it's riding the same wave of AI-related borrowing we've seen across the corporate world. What we don't have yet are the pricing terms, the maturity, the yield, or a stated use of proceeds.

Milo: So the numbers to watch are confirmation of the offering's final size against that 4.75 billion figure, and any company announcement detailing the terms of the debt sale.

Mia: Shifting gears to government debt — Thursday's U.S. 30-year Treasury auction drew attention after the government sold 30-year bonds at the highest rate since 2001, according to a Bloomberg report.

Milo: And the reaction from one former lawmaker was striking. Patrick McHenry, the former Republican congressman who chaired the House Financial Services Committee, called the sale a wake-up sign for the country on government debt and the deficit. He said it's time for the government to take action on overspending, but added that change has to begin with the American people raising the issue.

Mia: For equity investors, this matters mainly as a fiscal backdrop. Long-dated Treasury rates at a multi-decade high can influence borrowing costs and how investors value stocks — though the report doesn't quantify those effects.

Milo: And it's worth noting that wake-up sign characterization is McHenry's view, not a stated market verdict. What to watch next is whether the auction outcome shows up in subsequent Treasury trading, and whether there's any policy response to those debt and deficit concerns.

Mia: Finally, let's look at energy. Oil futures retreated early Wednesday morning after rising overnight — and the reported context is a U.S. statement that crude exports through the Strait of Hormuz are near 9 million barrels per day.

Milo: So the direction is clear — prices moved lower — but there's no magnitude given, no benchmark or contract specified, and this is an early-session move, not a closing number.

Mia: There's also a caution here on causation. The link between that U.S. statement and the price retreat is expressed only as sequence — the move happened after the statement — rather than established cause and effect. And the size and durability of the pullback are unspecified.

Milo: So what to watch next is whether the decline extends during the session, any follow-up U.S. commentary on Strait of Hormuz flows, and any reaction in energy-related equities or the broader indices — none of which is reported yet.

Mia: That's our rundown for today — from flat wholesale prices and shifting rate expectations, to big moves in Cisco and Workday, AMD's record bond sale, and that eye-catching Treasury auction.

Milo: Thanks for listening to After Market. We'll be back with more of what's moving the markets. Until then, take care.