1 00:00:02,520 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,720 --> 00:00:18,960 Speaker 1: Let's take a look at some stocks in the move today. 5 00:00:19,200 --> 00:00:23,680 Speaker 3: John Tucker looks at American stocks, not taiwan stocks, and 6 00:00:23,760 --> 00:00:25,799 Speaker 3: let's start with the United Parcel Service. 7 00:00:26,079 --> 00:00:27,000 Speaker 1: They deliver. 8 00:00:28,200 --> 00:00:31,400 Speaker 3: They smashed Wall Street profit expectations, and they did it 9 00:00:31,400 --> 00:00:35,080 Speaker 3: by cutting costs and unfortunately, by elimiting thirty four thousand 10 00:00:35,200 --> 00:00:38,320 Speaker 3: jobs this year. This is the cut to its permanent 11 00:00:38,440 --> 00:00:45,080 Speaker 3: operational workforce, and that includes delivery drivers package handlers. It's 12 00:00:45,120 --> 00:00:49,720 Speaker 3: actually a seventy percent increase from the previous layoff target 13 00:00:49,880 --> 00:00:53,080 Speaker 3: that we heard about. As part of the cost saving initiative. 14 00:00:53,280 --> 00:00:57,480 Speaker 3: They've closed daily operations at ninety three least and owned buildings. 15 00:00:58,240 --> 00:01:01,720 Speaker 3: The results suggest that the you know, revival efforts aren't 16 00:01:01,760 --> 00:01:05,920 Speaker 3: gaining traction. You know, they struggled with slow demand, high expenses, 17 00:01:05,920 --> 00:01:08,200 Speaker 3: all because of the uncertainty that was filled by the 18 00:01:08,200 --> 00:01:14,120 Speaker 3: Trump terifs. The partil industry facing pretty significant challenges this 19 00:01:14,200 --> 00:01:18,280 Speaker 3: year because of the disruptions to the international commerce market. 20 00:01:18,760 --> 00:01:23,240 Speaker 3: Matt Mayley over at Miller Tabac says, this is exactly 21 00:01:23,680 --> 00:01:27,679 Speaker 3: what UPS had needed. The companies trying to remove also 22 00:01:27,760 --> 00:01:31,440 Speaker 3: less profitable business from the networks such as the e commerce. 23 00:01:31,720 --> 00:01:34,520 Speaker 3: It doesn't make them much money at all when they 24 00:01:34,600 --> 00:01:35,640 Speaker 3: over packages for. 25 00:01:35,640 --> 00:01:40,319 Speaker 1: Him helping your score. My scientific analysis is I'm drowning 26 00:01:40,319 --> 00:01:41,560 Speaker 1: in cardboard. 27 00:01:41,080 --> 00:01:43,560 Speaker 3: Boxes where I live. It gets bigger and bigger. 28 00:01:43,680 --> 00:01:47,120 Speaker 1: Well the package, Yeah, yeah, absolutely. The stock, by the way, 29 00:01:48,000 --> 00:01:52,520 Speaker 1: really being rewarded for these latest efforts. Ten percent of 30 00:01:52,520 --> 00:01:54,520 Speaker 1: its staff approximately when you look at the thirty four 31 00:01:54,560 --> 00:01:57,720 Speaker 1: thousand jobs as opposed to the overall size of its workforce. 32 00:01:57,920 --> 00:02:01,600 Speaker 3: Remember, they had a pretty big labor tract with the 33 00:02:01,960 --> 00:02:05,520 Speaker 3: Teamsters union, so you can lay some of that on 34 00:02:05,920 --> 00:02:10,280 Speaker 3: the contract. One quarter doesn't necessarily make a trend. But 35 00:02:11,320 --> 00:02:14,560 Speaker 3: remember where they were earlier this year. We're talking about 36 00:02:14,680 --> 00:02:17,840 Speaker 3: United Health Group. It looked like a disaster story. They 37 00:02:17,880 --> 00:02:21,240 Speaker 3: have beat Wall Street expectations for third quarter earnings, also 38 00:02:21,360 --> 00:02:25,520 Speaker 3: raising the outlook for this year. So the health conglomerate 39 00:02:25,919 --> 00:02:29,519 Speaker 3: may have stabilized after that major meltdown. They're planning for 40 00:02:29,639 --> 00:02:34,519 Speaker 3: what they call durable and accelerating growth in twenty twenty six. 41 00:02:35,040 --> 00:02:37,800 Speaker 3: Adjusted profit in the third quarter two ninety two, a sheher, 42 00:02:38,280 --> 00:02:41,639 Speaker 3: So that's slightly above the average analysts estimate. United help 43 00:02:41,680 --> 00:02:46,040 Speaker 3: trying to win back investors' confidence, they slashed the earnings forecasts, 44 00:02:46,200 --> 00:02:50,440 Speaker 3: replaced top management, disclosed a federal criminal probe earlier this year, 45 00:02:51,280 --> 00:02:56,880 Speaker 3: blindsided by higher than anticipated cross especially in the medicare business. 46 00:02:57,080 --> 00:02:59,600 Speaker 3: You'll remember all this turmoil. It seemed to start to 47 00:02:59,720 --> 00:03:03,640 Speaker 3: unf fold in the wake of the shooting of Brian 48 00:03:03,720 --> 00:03:05,000 Speaker 3: Thompson plate last year. 49 00:03:05,840 --> 00:03:07,440 Speaker 1: Top of that, Medicaid is going to be a problem 50 00:03:07,480 --> 00:03:08,320 Speaker 1: for these health insurers. 51 00:03:09,440 --> 00:03:12,760 Speaker 3: The industry has pledged to change some of the practices 52 00:03:13,040 --> 00:03:16,680 Speaker 3: and who knows all let's do yeah real quick. So 53 00:03:16,720 --> 00:03:19,920 Speaker 3: this seems like a common theme. Amazon is going to 54 00:03:19,960 --> 00:03:24,519 Speaker 3: eliminate roughly fourteen thousand corporate jobs after Andy Jase warrened 55 00:03:24,600 --> 00:03:27,640 Speaker 3: AI is going to shrink the company's workforce. This is 56 00:03:27,639 --> 00:03:30,840 Speaker 3: the second round of reductions in about as many years. 57 00:03:30,880 --> 00:03:35,320 Speaker 3: And it was a fascinating a conversation with Bob Kaplan 58 00:03:35,520 --> 00:03:40,800 Speaker 3: because he pretty much had said AI reductions, Yeah, productivity gains, 59 00:03:40,800 --> 00:03:43,920 Speaker 3: which are essential for the economy, But those people who 60 00:03:43,960 --> 00:03:46,400 Speaker 3: get laid off as a result of it, I mean, 61 00:03:46,600 --> 00:03:49,360 Speaker 3: is that going to fuel the next wave of populism 62 00:03:49,400 --> 00:03:52,800 Speaker 3: that started, you know, back in the Clinton administration. 63 00:03:53,440 --> 00:03:59,360 Speaker 2: Globalization, the Stock Movers Report from Bloomberg Radio. Check back 64 00:03:59,400 --> 00:04:02,160 Speaker 2: with us throughout today for the latest roundup of companies 65 00:04:02,240 --> 00:04:05,360 Speaker 2: making news on Wall Street and for the latest market 66 00:04:05,360 --> 00:04:09,840 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 67 00:04:09,920 --> 00:04:13,440 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 68 00:04:13,480 --> 00:04:14,960 Speaker 2: the Bloomberg Business app.