1 00:00:02,520 --> 00:00:10,520 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News, the Stock Movers podcast. 2 00:00:12,080 --> 00:00:14,840 Speaker 1: This is your roundup of companies making news on Wall 3 00:00:14,880 --> 00:00:18,840 Speaker 1: Street and beyond. Harnessing the power of Bloomberg. 4 00:00:18,320 --> 00:00:20,840 Speaker 2: Data, let's take a look at some of the stocks 5 00:00:20,880 --> 00:00:23,520 Speaker 2: on the move today. We're joined by Bloomberg's Normal Linda, 6 00:00:23,560 --> 00:00:25,120 Speaker 2: Bloomberg's Equity's reporter Nora. 7 00:00:25,280 --> 00:00:27,400 Speaker 3: What do you got well, lots to keep an eye 8 00:00:27,400 --> 00:00:30,360 Speaker 3: on this morning, It is important to watch kV Home. 9 00:00:30,440 --> 00:00:33,040 Speaker 3: So this is a homebuilding stock, and we're seeing the 10 00:00:33,240 --> 00:00:35,600 Speaker 3: entire sector moving off of this news. But essentially, the 11 00:00:35,600 --> 00:00:40,080 Speaker 3: company reported disappointing first quarter results and it's it cut 12 00:00:40,120 --> 00:00:42,600 Speaker 3: its fiscal twenty twenty five revenue guidance. And this is 13 00:00:42,680 --> 00:00:45,560 Speaker 3: all due to demand at the start of the key 14 00:00:45,600 --> 00:00:48,040 Speaker 3: spring selling season for the group that was more muted 15 00:00:48,240 --> 00:00:51,479 Speaker 3: than historical levels, and spring selling season is super important. 16 00:00:51,680 --> 00:00:54,120 Speaker 3: That's when they start to see the majority of their 17 00:00:54,160 --> 00:00:56,680 Speaker 3: revenue come through. So this is not good news for 18 00:00:56,760 --> 00:00:59,480 Speaker 3: kb Home and especially not good news for the broader sector. 19 00:00:59,520 --> 00:01:01,800 Speaker 3: But the story remains the same. We've got rates are 20 00:01:01,800 --> 00:01:04,440 Speaker 3: too high and people dealing with affordability issues, and that's 21 00:01:04,480 --> 00:01:06,600 Speaker 3: why we're not seeing the types of sales that we 22 00:01:06,600 --> 00:01:07,520 Speaker 3: were seeing before. 23 00:01:07,680 --> 00:01:09,240 Speaker 4: Yeah, and they had to spend a lot of money 24 00:01:09,280 --> 00:01:11,720 Speaker 4: right exactly, help like in order to get the volumes 25 00:01:11,760 --> 00:01:14,520 Speaker 4: going it. Talk us through that the incentives. 26 00:01:14,200 --> 00:01:16,080 Speaker 3: Yees, So incentives are something that a lot of these 27 00:01:16,080 --> 00:01:19,520 Speaker 3: builders implement. It's essentially they'll buy down your mortgage rates. 28 00:01:19,560 --> 00:01:21,520 Speaker 3: So right now, as I last check, we have mortgage 29 00:01:21,600 --> 00:01:24,160 Speaker 3: rates that are at six point seven percent right now. 30 00:01:24,360 --> 00:01:26,280 Speaker 3: What builders will do they'll come in and they'll actually 31 00:01:26,280 --> 00:01:28,280 Speaker 3: buy down rates to maybe five percent to make it 32 00:01:28,280 --> 00:01:31,319 Speaker 3: a little bit more affordable for first time buyers and 33 00:01:31,360 --> 00:01:33,839 Speaker 3: people that are interested in purchasing new homes. But of course, 34 00:01:34,160 --> 00:01:36,120 Speaker 3: as you expect, that's weighing on margins and that's what 35 00:01:36,160 --> 00:01:38,080 Speaker 3: investors are really looking forward to see whether or not 36 00:01:38,200 --> 00:01:40,520 Speaker 3: builders are able to strike the ballots. 37 00:01:41,400 --> 00:01:45,800 Speaker 4: What about Tesla here, So the Tesla sales in Europe 38 00:01:45,840 --> 00:01:48,520 Speaker 4: were not great. Walk us through the why though behind that, Yes, 39 00:01:48,600 --> 00:01:49,840 Speaker 4: I mean it's super interesting here. 40 00:01:49,880 --> 00:01:51,400 Speaker 3: Of course, Tesla has been a stuck that's been in 41 00:01:51,440 --> 00:01:54,480 Speaker 3: focus and it's really been struggling over the past few months, 42 00:01:54,480 --> 00:01:55,840 Speaker 3: as we know, as we look at shares of tests, 43 00:01:55,880 --> 00:01:58,360 Speaker 3: so they're down thirty one percent so far this year. 44 00:01:58,680 --> 00:02:01,880 Speaker 3: But sales and Tesla. Tesla sales fell for the tenth 45 00:02:01,960 --> 00:02:05,640 Speaker 3: time in the last twelve months in Europe. It's counting 46 00:02:05,680 --> 00:02:08,680 Speaker 3: on it's redesigned model why to boost sales for the company, 47 00:02:08,880 --> 00:02:12,040 Speaker 3: but those were impacted by production pauses at factories around 48 00:02:12,080 --> 00:02:14,200 Speaker 3: the world early this year. So people are really just 49 00:02:14,200 --> 00:02:15,840 Speaker 3: trying to see whether or not Elon Musk and his 50 00:02:15,919 --> 00:02:17,919 Speaker 3: company can strike a turnaround story here. 51 00:02:18,040 --> 00:02:20,040 Speaker 2: I mean there's rise in competition from particular from the 52 00:02:20,120 --> 00:02:24,400 Speaker 2: Chinese operators too. That seems the idea fundamental problem. 53 00:02:24,480 --> 00:02:24,640 Speaker 1: You know. 54 00:02:25,000 --> 00:02:26,960 Speaker 2: I'm sure there's people not buying Teslas because they don't 55 00:02:27,000 --> 00:02:28,960 Speaker 2: like his political issues, but to me, it might be 56 00:02:29,000 --> 00:02:30,679 Speaker 2: more just competition out there. 57 00:02:30,840 --> 00:02:33,680 Speaker 4: And also it's production. They had to change production over 58 00:02:33,760 --> 00:02:35,560 Speaker 4: to a new model and that was what really hurt it. 59 00:02:35,600 --> 00:02:38,080 Speaker 4: Remember this is February, right, we started not liking Musk 60 00:02:38,080 --> 00:02:40,080 Speaker 4: and March, so like, I don't think we've really seen 61 00:02:41,400 --> 00:02:45,040 Speaker 4: the ripple effect from that, true, so that is yet 62 00:02:45,040 --> 00:02:47,600 Speaker 4: to come. And Cassava, I don't know what this company is. 63 00:02:47,680 --> 00:02:49,440 Speaker 3: Yes, had to look it up myself. This is a 64 00:02:49,440 --> 00:02:52,079 Speaker 3: biotech company. When we get into biotech, you know, I 65 00:02:52,120 --> 00:02:53,920 Speaker 3: guess a little hazy there. I'm not as familiar with 66 00:02:53,919 --> 00:02:58,359 Speaker 3: the names, but Cassavas Sciences is take your sava. We're 67 00:02:58,360 --> 00:03:01,000 Speaker 3: looking at this company because we have that are tumbling. 68 00:03:01,360 --> 00:03:04,720 Speaker 3: It's actually the largest one day drop on record, tumbling 69 00:03:04,720 --> 00:03:07,799 Speaker 3: as much as eighty four percent. The biotech company is 70 00:03:07,840 --> 00:03:11,560 Speaker 3: saying that it's Alzheimer treatment simul Simu film. Let me 71 00:03:11,560 --> 00:03:14,600 Speaker 3: not even butcher the name that I can't pronounce. But 72 00:03:14,639 --> 00:03:17,040 Speaker 3: it did not show a significant reduction in cognitive or 73 00:03:17,080 --> 00:03:21,440 Speaker 3: functional decline versus placebo and patients with mild to moderate 74 00:03:21,520 --> 00:03:24,440 Speaker 3: levels of the disease. So not great news as we 75 00:03:24,480 --> 00:03:26,240 Speaker 3: look at the study here for Alzheimer and the fact 76 00:03:26,280 --> 00:03:29,760 Speaker 3: that the company is discontinuing it's Alzheimer program. 77 00:03:29,880 --> 00:03:34,000 Speaker 1: The Stock Movers podcast from Bloomberg Radio. Check back with 78 00:03:34,080 --> 00:03:36,840 Speaker 1: us throughout the day for the latest roundup of companies 79 00:03:36,880 --> 00:03:39,920 Speaker 1: making news on Wall Street and for the latest market 80 00:03:39,960 --> 00:03:44,320 Speaker 1: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 81 00:03:44,360 --> 00:03:47,600 Speaker 1: Bloomberg dot com, and on Applecarplay and Android Auto with 82 00:03:47,680 --> 00:03:49,160 Speaker 1: the Bloomberg Business app.