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Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The.

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Speaker 2: Stock Movers Report, your roundup of companies making moves in

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Speaker 2: the stock market. Harnessing the power of Bloomberg Data.

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Speaker 3: Let's take a look at some stocks on the move today.

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Speaker 3: I'm Nathan Hager, joined by Bloomberg's Valerie Titel in the

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Speaker 3: morning where we've been focused on the big deal news

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Speaker 3: for Warner Brothers Discovery. But here comes Southwest Airlines putting

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Speaker 3: a damper on things.

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Speaker 1: Oh yeah, good morning, Nathan, Happy Friday to you. Yes,

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Speaker 1: Southwest Airlines adding a bit of caution to the airline

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Speaker 1: industry today. They cut their operating profit target this morning

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Speaker 1: for the current quarter. The sharers are down just over

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Speaker 1: two percent in pre market. They now expect earnings before

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Speaker 1: interest in taxes to be at five hundred million for

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Speaker 1: the current a year. Previously, they had a range of

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Speaker 1: around six hundred million to eight hundred million. They cited

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Speaker 1: two factors in this release, the first one being the

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Speaker 1: government shutdown impacts They saw a temporary decline in demand,

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Speaker 1: the second one due to higher fuel prices. Southwest did

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Speaker 1: state though that bookings have now returned two expected levels,

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Speaker 1: so this pullback in demand is something that's not continuing

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Speaker 1: as something they just saw during the government shutdown. But nonetheless,

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Speaker 1: Southwest on a back foot this morning, down over two percent.

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Speaker 3: Definitely not a pullback of demand when it comes to

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Speaker 3: the players who want to buy Warner Brothers Discovery, this morning,

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Speaker 3: looks like we may have a winner, Valerie.

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Speaker 2: Yeah.

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Speaker 1: Netflix is said to begin exclusive talks with Warner Brothers.

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Speaker 1: We are seeing both shares of these companies in the

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Speaker 1: red this morning. Warner Brothers was initially up around four

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Speaker 1: percent on this news that is now down one percent

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Speaker 1: in pre market trade, as is Netflix. Now the world's

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Speaker 1: biggest paid streaming service, Netflix is looking to be getting

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Speaker 1: even bigger. Sources are telling us that they are looking

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Speaker 1: at Warner Brothers Film TV Studios and their HBO Max

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Speaker 1: streaming ser Netflix is also said to have offered a

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Speaker 1: five billion dollar breakup fee. If regulators strike down the deal,

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Speaker 1: and if talks go well, a deal could be announced

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Speaker 1: in the coming days.

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Speaker 3: All right, let's talk about the one big earning story

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Speaker 3: this morning. A big move to the downside for HP Enterprise.

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Speaker 1: HPE Enterprises, This one is on a big backfoot this morning,

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Speaker 1: down nearly ten percent. Nathan, their sales outlook fell short

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Speaker 1: of estimates, as did their sales for the previous quarter.

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Speaker 1: They cited some delays in client contracts, so this is interesting.

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Speaker 1: Some deals for servers to power AI workloads were essentially

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Speaker 1: pushed into twenty twenty six. The CEO mentioned two examples,

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Speaker 1: one of which was a delay in a European data

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Speaker 1: center build out. The other one was a project that

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Speaker 1: was delayed by the government shutdown. So now we have

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Speaker 1: two themes in these stocks. Today's government shutdowns showing up

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Speaker 1: as delays to two of these companies. But HP enterprises

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Speaker 1: on a backfoot after a week sales outlook down nearly

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Speaker 1: ten percent.

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Speaker 3: Well, I don't think we can put government shutdown as

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Speaker 3: a theme for Alta Beauty. But they're getting to glow

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Speaker 3: up this morning.

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Speaker 2: Yes they are.

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Speaker 1: With Alta Beauty. The theme is Korean beauty products. Those

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Speaker 1: are really paying off for Alta Beauty. The shares are

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Speaker 1: up just less than six percent. They raise their full

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Speaker 1: year outlook. It's also a decent sign on discretionary consumer

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Speaker 1: spending as well. Nathan Net sales rose thirteen percent in

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Speaker 1: the most recent quarter, boosted by their pushing a k

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Speaker 1: beauty products, which is also knows Korean beauty products. One

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Speaker 1: of their hottest selling items, Nathan, which I know you

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Speaker 1: probably used daily, is a snail mucus black snail mucus.

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Speaker 3: Oh, how'd you know?

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Speaker 1: It's essentially very good for your skin.

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Speaker 2: This Stock Movers report from Bloomberg Radio. Check back with

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Speaker 2: us throughout the day for the latest roundup of companies

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Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

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Speaker 2: with the Bloomberg Business app.

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Speaker 3: Mm hmm