Closing Bell: Schwab Rises, Robinhood Higher on GENIUS Act, Humana Falls

On this episode of Stock Movers:

Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Scarlet Fu, Vonnie Quinn, Tim Stenovec and Isabelle Lee.

- Charles Schwab (SCHW) shares climbed after the company reported second-quarter earnings that topped estimates as client assets hit a new record and trading revenue increased. Schwab posted adjusted earnings per share of $1.14 while total client assets climbed 14% to $10.76 trillion compared to the same period last year, according to a statement. Revenue from client trades also jumped 23% to $952 million. “Retail investors and RIAs continued to turn to Schwab as a trusted partner, opening over 1 million new brokerage accounts,” said Chief Executive Officer Rick Wurster. Daily average revenue trades just narrowly topped analyst forecasts at 7.57 million in a quarter characterized by market turmoil from President Donald Trump’s tariff and policy changes. The firm attracted $73.6 billion in total net new assets, which was below analyst expectations.

- Robinhood (HOOD) shares rose along with the broader crypto space as President Donald Trump signed key crypto legislation into law. The President signed the first federal bill to regulate stablecoins, hailing it as a “giant step to cement American dominance of global finance and crypto technology” and delivering a major victory for the digital asset industry. “The Genius Act creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoins,” Trump said Friday at a White House ceremony. “This could be perhaps the greatest revolution in financial technology since the birth of the internet itself.” The measure sets regulatory rules for US dollar-backed stablecoins, including a requirement for firms to hold dollar-for-dollar reserves in short-term government debt or similar products overseen by state or federal regulators. Advocates see it as allowing for the broader adoption of digital assets in finance.

- Humana (HUM) shares fell after it lost a lawsuit seeking to reverse cuts to its Medicare bonus payments, a blow for the insurer that had hoped the court would restore billions in revenue. A Texas judge ruled in favor of a government motion to dismiss the case, allowing a downgrade of Humana’s Medicare quality ratings that’s set to squeeze the company’s profits in 2026. Humana shares dropped as much as 7.5%. The judge called Humana’s federal court claim “premature” because the company hadn’t exhausted all the administrative procedures over the decision. The lawsuit was dismissed “without prejudice,” which means Humana could file the court case again. “Plaintiffs can seek review, just not until the end of the administrative appeal process,” the judge wrote.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.

Speaker 2 (00:09):
This is the closing bell on this stock mover's report.
The companies making moves at the close of US trading
with Carol Masser, Tim Stenebeck, Romain Bostick, and Scarlet Foo.

Speaker 1 (00:22):
Two hundred and fifty stocks turn fifty five stocks. Excuse me,
moved higher is about two hundred and forty four move lower.

Speaker 3 (00:29):
If we look at the IMAP, this also tells the
story because Scarlett, you mentioned it earlier. But utilities were
the best performer. We're talking mainly though Vistra Energy, for example,
these utilities that are involved in power consumption by AI
companies and so on, up one point seven percent, but
energy companies in general down one percent. So there was
a lot of stories going on underneath. It wasn't just scrypto.

Speaker 4 (00:49):
Week and just a quick correction. When I gave those numbers,
I'm sorry I was referring to volume, not the actual
index levels, because the index levels are not moving like that.
For on a weekly basis, the S and P five
hundred martinly higher by tens of one percent than asdek
little change on the week.

Speaker 1 (01:02):
All right, Well, let's talk to some of the stocks
that we're on the move today and this week as well.
A few of the gainers on my radar included Charles
Schwab up two point nine percent. The company did report
second quarter earnings earlier today at top estimates, client assets
hit a new record, trading revenue increased. Rick Worster, the
company's new Ish CEO. He said they are continuing to

(01:24):
build out digital assets and it'll include spot trading and
bitcoin and ethereum. The company expects to be a quote
meaningful growth driver. Also watching shares of what's happening with
crypto companies today because of that signing of the Genius
Act in Washington. We heard comments from President Trump earlier
today talking about that bill moving through Congress and ultimately

(01:47):
ending up on his guest on his desk. Shares a
Robin Hood Hire by four percent today. The President hailed
that new law as a giant step to cement American
dominance of global finance and crypto technology. It delivered a
major victory for the digital assat industry. Robin and CEO
of Latenant, was actually at the event at the White
House today. The President called him out by name just
a little bit ago, and finally here's an interesting one,

(02:09):
California Resources. It's an energy and carbet management company based
in California. It popped in late trading. You can see
it on the chart right there, up close to seven
percent on the day. This AFTERNOWS reports that Governor Gavin
Newsom of California as proposing to build a streamline permitting
for new oil wells. Environmental groups, though, are pushing back.
They say it would wipe out scrutiny of the industry.

(02:31):
California Resources up today by six point seven percent.

Speaker 5 (02:35):
Onto the decliners. We have to start with Komta because
shares closed just one and a half percent lower, but
in today it was wild because the shares sank as
much as seven and a half percent. That's the lowest
since at least April twenty seventeen. So Humana loss its
lawsuit seeking to reverse cuts to its Medicare bonus payment.
So this is a blow for the insured because they
really hoped that the court would restore billions in revenue.

(02:56):
So we're definitely going to see a six squeeze in profits.
We have Barklay telling Bloomberg in April that a win
would have doubled their twenty twenty six profits, so this
is why stocks are edging down for now. Next is Lucid,
so this is also in the red, down by two
and a half percent. Shares are just really consolidating after
the massive jump we saw on Thursday, that's yesterday, which

(03:16):
we saw the most in two years. So this came
after the company said it was planning to team up
with Uber and self driving tech startup Neuro to launch
a robotaxi fleet. And last we have Chevron. Shares are
down by almost one percent. So Chevron won the arbitration
battle with Exxon, which is its large arrival to finally
close its acquisition of Hess. So the victory comes after

(03:36):
more than twenty months after the deal was announced, which
was worth fifty three billion dollars. So really at least
a lot of overhang they are lifted in the industry.

Speaker 4 (03:44):
Yeah, overhang lifted, but it was something that investors were anticipating,
which might explain why the shot the shares ended up
finishing lower. Let's take a look at what happening across
fixed income. The treasury yield down across the curve was
certainly more so at the shorter end of the curve.
The two year now down about three basis points a
three point eighty six percent the thirty year, finishing the
week below five percent, but remember it did reach about

(04:07):
five point oh seven percent on the day that President Trump.
There were reports that President Trump was considering firing Jpal,
really threatening the independence of the Federal Reserve.

Speaker 2 (04:18):
The stock Moover's report from Bloomberg Radio. Check back with
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