Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market. Harnessing the power of Bloomberg.
Speaker 1: Data, Let's take a look at some stocks on the
Speaker 1: move today. I'm Nathan Hager, joined by Bloomberg's Valerie Titel
Speaker 1: on the unofficial kickoff of third quarter earning season. Valerie,
Speaker 1: good morning. I guess we can say it's off to
Speaker 1: a high flying start after the results from Delta. Good morning,
Speaker 1: Good morning, Nathan.
Speaker 3: Yes, it is a splashy return to earning season. Not
Speaker 3: only is the US consumer buying expensive plane tickets, they're
Speaker 3: also buying fancy sodas from PepsiCo and big ticket items
Speaker 3: from Costco. But let's start with the airline industry. We
Speaker 3: have Delta Airlines up over five percent after better than
Speaker 3: expected results, the CEO saying we're not seeing any pullback
Speaker 3: in demand. So it does seem to be like the
Speaker 3: consumer is still prepared to spend. The Delta did well
Speaker 3: across the aircraft, so both in back of the cabin
Speaker 3: and the more front of the cabin more lucrative premium seats.
Speaker 3: The growth in the premium tickets is really important here
Speaker 3: for Delta because both Delta and United have pushed more
Speaker 3: into the premium products as they seek to differentiate themselves
Speaker 3: from budget carriers. They also predicted strong demand into next year.
Speaker 3: Full year earnings per share is expected to be about
Speaker 3: six dollars a share, ahead of analyst consensus. So this
Speaker 3: is also lifting the whole sector. Nathan, So, Delta is
Speaker 3: up over five percent, American Airlines up four percent, and
Speaker 3: United up three and a half.
Speaker 1: Well, let's go next to PepsiCo. So, I guess consumers
Speaker 1: are up spending for some of those snacks in the
Speaker 1: grocery al.
Speaker 3: Huh and fancy sodas. PepsiCo is up two point six percent.
Speaker 3: They're seeing a turnaround in their beverage shells in North America,
Speaker 3: driven by these healthier sodas that they are touting. So
Speaker 3: PepsiCo owns Lays, Gatorade, Quaker brands, but it was really
Speaker 3: down to their beat in the beverage unit, which saw
Speaker 3: about two percent growth in North America's strongest in nearly
Speaker 3: two years. It's all on the back of their trademark
Speaker 3: Pepsi Beverage Yes, as well as Poppy, which is a
Speaker 3: healthier soda that it acquired earlier this year. On PepsiCo
Speaker 3: has been trying to keep up with shifting consumer tastes
Speaker 3: by expanding into its healthier, more high protein, more portion
Speaker 3: controlled offerings, and it seems to be paying off, with
Speaker 3: PepsiCo up over two percent so far in pre market trade.
Speaker 1: All right, let's go to Costco next, because the warehouse
Speaker 1: shoppers are still going through the door there.
Speaker 3: Costco posted some pretty decent comparable sales for September. It
Speaker 3: beat estimates, analysts calling it impressive eight percent rise year
Speaker 3: and year. So Costco up one and a quarter percent
Speaker 3: so far in pre market trade following this enthusiasm.
Speaker 1: And we got to talk about downside movers, and this
Speaker 1: one's an earning story as well. Big disappointment coming from
Speaker 1: of all names.
Speaker 3: Ferrari, Yeah, this one is pretty ugly. Ferrari shares have
Speaker 3: been halted for a second time in Milan, down fifteen percent.
Speaker 3: The ADRs are also down over thirteen percent their US
Speaker 3: listed stock, biggest drop in nearly a decade. They gave
Speaker 3: a cautious forecast at an investor day that disappointed investors.
Speaker 3: They've also announced plans to essentially scale back their plan
Speaker 3: to make electric vehicles they have their twenty thirty target
Speaker 3: for evs in their product mix now. Their shares have
Speaker 3: outperformed general automakers in the past five years, but it's
Speaker 3: looking like today could really be changing that narrative with
Speaker 3: this disappointment on the pullback on EV's.
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