WEBVTT - Intel-Apple Deal; Smith and Wesson Rises; Rumble Jumps

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The Stockmovers Report, your

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<v Speaker 1>roundup of companies making moves in the stock market, harnessing

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<v Speaker 1>the power of Bloomberg Data. Let's take a look at

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<v Speaker 1>some stocks on the move today. I'm Tom Keen with

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<v Speaker 1>Paul Sweeney and Bloomberg's Alexis Christofferser's Stockmovers. It's a pod.

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<v Speaker 2>I am a little preoccupied because that little parade going

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<v Speaker 2>on downtown, but I want to start with the most

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<v Speaker 2>actively traded stock this morning, and that is Intel. It

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<v Speaker 2>is up nearly nine percent in the pre market. It's

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<v Speaker 2>on pace for hitting an all time high today. And

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<v Speaker 2>here's what's behind it. President Trump said that Apple has

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<v Speaker 2>agreed to work with Intel to design and build semiconductors

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<v Speaker 2>right here in the US. And so this is a

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<v Speaker 2>big deal for Intel, landing Apple as a customer. It's

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<v Speaker 2>a massive win for the company and could potentially attract

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<v Speaker 2>other businesses to do the same thing it's been trying to.

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<v Speaker 2>It's it's a key piece of the company's comeback plan.

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<v Speaker 2>Really well, we heard from President Trump on this correct,

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<v Speaker 2>that is correct. Be in a cell side analyst as well,

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<v Speaker 2>But wait a minute, is he an owner of this

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<v Speaker 2>well exactly right there, Tom Keane. The US owns ten

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<v Speaker 2>percent of Intel. They did that deal last year. So yeah,

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<v Speaker 2>the stock is all.

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<v Speaker 1>Do our Texas go down because we made a pop

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<v Speaker 1>on Intel?

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<v Speaker 2>I would think I'd like that. Stocks up year to

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<v Speaker 2>date two hundred and thirty percent over the trail and

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<v Speaker 2>twelve months up four hundred and sixty percent.

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<v Speaker 1>This is detail.

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<v Speaker 2>I mean, does my congestion pricing fee go away in

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<v Speaker 2>mid toiw Manhassan because of this? I'd like that. Next.

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<v Speaker 2>All right, let's go to Kroger's supermarket change sales YEP

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<v Speaker 2>stock is taking a beating today, though it's down about

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<v Speaker 2>eight percent right now and really hasn't done much of

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<v Speaker 2>anything lately. It's down about one percent year to date.

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<v Speaker 2>Sales beat expectations just barely last quarter, again showing that

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<v Speaker 2>shoppers are prioritizing groceries, buying those BA sick necessities as

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<v Speaker 2>they continue to you know, look closely at their household budgets.

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<v Speaker 2>So Kroger said same store sales grew one percent. That's

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<v Speaker 2>excluding a gas fuel prices you know, or fuel sales.

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<v Speaker 2>That was slightly better than expected. Wall Street is also

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<v Speaker 2>looking to gain market share here under its new CEO,

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<v Speaker 2>Greg Foran, and he was here at Bloomberg last month,

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<v Speaker 2>and he said that Kroger's is going to implement their

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<v Speaker 2>largest price cut in years to be more competitive with

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<v Speaker 2>rivals such as Walmart, Costco on Amazon. Of course, Wall

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<v Speaker 2>Street doesn't love that idea. Got to cut the prices.

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<v Speaker 2>So they also maintain their full year guidance, though they

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<v Speaker 2>said profits were squeezed by higher transportation costs. So again

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<v Speaker 2>those fuel costs playing their price cuts. Those planned price

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<v Speaker 2>cuts and lower egg prices actually hurt profits at Kroger's. Hey,

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<v Speaker 2>they fancy eggs haven't come down. What are your fancy eggs?

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<v Speaker 1>They're hand picked, carry out, Give me one more.

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<v Speaker 2>We're going to do hard, turn and talk. Smith and

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<v Speaker 2>Wesson the ticker symbol SWBI. The stock is up nearly

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<v Speaker 2>fifteen percent and rallying nearly four percent year to date.

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<v Speaker 2>The gun maker posting a twenty seven percent jump in

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<v Speaker 2>revenue last quarter, new products, especially handguns, helping the company

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<v Speaker 2>gain market share here. Now, Smith and Wesson expects around

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<v Speaker 2>fifteen to twenty percent revenue growth in the first quarter,

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<v Speaker 2>mid single digit revenue growth for the full year, and

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<v Speaker 2>new products made up almost thirty eight percent of the

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<v Speaker 2>company's fourth quarter shipments. They also entered new categories such

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<v Speaker 2>as hunting. I would have thought they were already in

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<v Speaker 2>that Yeah, and sales remained strong. Inventory levels decline even

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<v Speaker 2>as the company raised prices, so even Smith and Wesson

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<v Speaker 2>is raising prices. They also paid down their debt. Wall

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<v Speaker 2>Street likes that as well. They ended the year with

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<v Speaker 2>twenty million in debt compared with eighty million.

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<v Speaker 1>The Stock Movers Report from Bloomberg Radio. Check back with

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