WEBVTT - Electronic Arts Rises, Lockheed Martin Gains, Occidental Petroleum Up After OxyChem Report

0:00:02.520 --> 0:00:09.960
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News. The Stock Movers Report,

0:00:10.280 --> 0:00:13.360
<v Speaker 1>your roundup of companies making moves in the stock market,

0:00:13.680 --> 0:00:17.480
<v Speaker 1>harnessing the power of Bloomberg Data. Let's take a look

0:00:17.480 --> 0:00:19.000
<v Speaker 1>at some of the stocks on the move today.

0:00:19.000 --> 0:00:21.840
<v Speaker 2>I'm pulsing alongside Scarlet Foo and we're joined by Normal

0:00:21.840 --> 0:00:22.239
<v Speaker 2>Linda Norm.

0:00:22.280 --> 0:00:22.920
<v Speaker 1>What are you looking at it?

0:00:23.120 --> 0:00:24.960
<v Speaker 2>Well, let's kick things off with the stock that's making

0:00:25.160 --> 0:00:29.000
<v Speaker 2>history today. So Electronic Arts is taker EA. We have

0:00:29.160 --> 0:00:31.360
<v Speaker 2>this stock in focus today up as much as five

0:00:31.400 --> 0:00:34.240
<v Speaker 2>point four percent. This, of course is after the historic

0:00:34.479 --> 0:00:37.800
<v Speaker 2>leverage buyout deal that we're seeing happening here. So Electronic

0:00:37.880 --> 0:00:41.000
<v Speaker 2>Arts is agreed to sell to a group of private investors.

0:00:41.240 --> 0:00:44.519
<v Speaker 2>The deal should be about fifty five billion dollars. This

0:00:44.600 --> 0:00:47.680
<v Speaker 2>is the high'st the largest leverage buyout that we've seen

0:00:48.040 --> 0:00:50.600
<v Speaker 2>on record here. So the consorts gain that they're selling

0:00:50.600 --> 0:00:53.920
<v Speaker 2>it toward or are Silver Lake Management, a Saudi Arabia

0:00:54.040 --> 0:00:57.120
<v Speaker 2>public investment fund. They agreed to pay two hundred and

0:00:57.160 --> 0:00:59.400
<v Speaker 2>ten dollars per share in cash for the company, so

0:00:59.400 --> 0:01:02.200
<v Speaker 2>this does report a twenty five percent premium to where

0:01:02.200 --> 0:01:06.000
<v Speaker 2>it shares traded before. Talks did leak here, So this

0:01:06.080 --> 0:01:07.880
<v Speaker 2>is really what's been in focus over the past couple days.

0:01:07.880 --> 0:01:09.800
<v Speaker 2>If you look at the stock right now, up for

0:01:09.840 --> 0:01:13.520
<v Speaker 2>its highest level on record. Shares are up about thirty

0:01:13.640 --> 0:01:16.319
<v Speaker 2>nine percent so far year today. We're also looking at

0:01:16.319 --> 0:01:18.680
<v Speaker 2>defense stocks. Yes, you have to keep an eye on defense.

0:01:18.720 --> 0:01:20.679
<v Speaker 2>I mean that's an area that I covered super closely

0:01:20.720 --> 0:01:23.119
<v Speaker 2>on the equity team before taking on this new role.

0:01:23.200 --> 0:01:26.319
<v Speaker 2>So always going back toward US defense contractors, we're seeing

0:01:26.400 --> 0:01:30.119
<v Speaker 2>shares of the industry really rising today. If you look

0:01:30.120 --> 0:01:34.000
<v Speaker 2>at Lockheed Martin, L three, Harris, rtx's are all pushing

0:01:34.080 --> 0:01:36.600
<v Speaker 2>higher along with Boeing here, and this is after a

0:01:36.640 --> 0:01:39.280
<v Speaker 2>report from the Wall Street Journal the US Department of

0:01:39.319 --> 0:01:42.920
<v Speaker 2>Defense is pushing missile suppliers to quickly double or even

0:01:43.040 --> 0:01:47.280
<v Speaker 2>quadruple production rates here. So pretty bullish call here, of course.

0:01:47.319 --> 0:01:50.000
<v Speaker 2>And you are seeing a broad brace rally here. If

0:01:50.000 --> 0:01:52.840
<v Speaker 2>you look at S one five arrow a e r O.

0:01:52.960 --> 0:01:54.560
<v Speaker 2>That's an index that I tend to track when you

0:01:54.560 --> 0:01:58.720
<v Speaker 2>look at aerospace and defense contractors here, and that or

0:01:58.720 --> 0:02:01.640
<v Speaker 2>that index is up right now, also hitting its highest

0:02:01.680 --> 0:02:03.600
<v Speaker 2>level ever. Lots of green across the screen today.

0:02:03.640 --> 0:02:06.480
<v Speaker 1>Yeah, my number one offspring works at luckeyed Martin, not

0:02:06.520 --> 0:02:07.240
<v Speaker 1>allowed to talk to me.

0:02:07.240 --> 0:02:07.800
<v Speaker 2>About his job.

0:02:09.160 --> 0:02:12.160
<v Speaker 1>He's titles seeing mom. Yeah, that's what they do over there.

0:02:12.440 --> 0:02:14.440
<v Speaker 1>So anyway, so what else we got.

0:02:14.600 --> 0:02:17.160
<v Speaker 2>Lastly, we want to take a look at Occidental Petroleum.

0:02:17.200 --> 0:02:21.040
<v Speaker 2>Let's take our ox Y here also in talks to

0:02:21.120 --> 0:02:25.120
<v Speaker 2>sell it's Oxycom petrochemical unit. The deal is worth at

0:02:25.240 --> 0:02:28.000
<v Speaker 2>least ten billion dollars. That's according to a report from

0:02:28.000 --> 0:02:31.040
<v Speaker 2>the Financial Times this past Sunday. So you are seeing

0:02:31.040 --> 0:02:35.120
<v Speaker 2>shares of Occidental Petroleum hitting their highest level since April's

0:02:35.160 --> 0:02:37.679
<v Speaker 2>clearly lots of optimism today in the market. But the

0:02:38.520 --> 0:02:42.040
<v Speaker 2>divestment would be the US company's biggest yet and would

0:02:42.040 --> 0:02:46.920
<v Speaker 2>create one of the world's largest dandalone petro chemical companies.

0:02:47.680 --> 0:02:51.720
<v Speaker 1>The Stock Movers report from Bloomberg Radio. Check back with

0:02:51.800 --> 0:02:54.400
<v Speaker 1>us throughout the day for the latest roundup of companies

0:02:54.440 --> 0:02:57.519
<v Speaker 1>making news on Wall Street and for the latest market

0:02:57.600 --> 0:03:02.040
<v Speaker 1>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:03:02.120 --> 0:03:05.640
<v Speaker 1>Bloomberg dot com, and on Applecarplay and Android Auto with

0:03:05.720 --> 0:03:07.160
<v Speaker 1>the Bloomberg Business app.