WEBVTT - Delta Beat; Pepsi Miss; Ferrari Slumps

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market. Harnessing the power of Bloomberg.

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<v Speaker 1>Data, Let's take a look at some stocks on the

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<v Speaker 1>move today. I'm Nathan Hager, joined by Bloomberg's Valerie Titel

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<v Speaker 1>on the unofficial kickoff of third quarter earning season. Valerie,

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<v Speaker 1>good morning. I guess we can say it's off to

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<v Speaker 1>a high flying start after the results from Delta. Good morning,

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<v Speaker 1>Good morning, Nathan.

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<v Speaker 3>Yes, it is a splashy return to earning season. Not

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<v Speaker 3>only is the US consumer buying expensive plane tickets, they're

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<v Speaker 3>also buying fancy sodas from PepsiCo and big ticket items

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<v Speaker 3>from Costco. But let's start with the airline industry. We

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<v Speaker 3>have Delta Airlines up over five percent after better than

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<v Speaker 3>expected results, the CEO saying we're not seeing any pullback

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<v Speaker 3>in demand. So it does seem to be like the

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<v Speaker 3>consumer is still prepared to spend. The Delta did well

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<v Speaker 3>across the aircraft, so both in back of the cabin

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<v Speaker 3>and the more front of the cabin more lucrative premium seats.

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<v Speaker 3>The growth in the premium tickets is really important here

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<v Speaker 3>for Delta because both Delta and United have pushed more

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<v Speaker 3>into the premium products as they seek to differentiate themselves

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<v Speaker 3>from budget carriers. They also predicted strong demand into next year.

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<v Speaker 3>Full year earnings per share is expected to be about

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<v Speaker 3>six dollars a share, ahead of analyst consensus. So this

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<v Speaker 3>is also lifting the whole sector. Nathan, So, Delta is

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<v Speaker 3>up over five percent, American Airlines up four percent, and

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<v Speaker 3>United up three and a half.

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<v Speaker 1>Well, let's go next to PepsiCo. So, I guess consumers

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<v Speaker 1>are up spending for some of those snacks in the

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<v Speaker 1>grocery al.

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<v Speaker 3>Huh and fancy sodas. PepsiCo is up two point six percent.

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<v Speaker 3>They're seeing a turnaround in their beverage shells in North America,

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<v Speaker 3>driven by these healthier sodas that they are touting. So

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<v Speaker 3>PepsiCo owns Lays, Gatorade, Quaker brands, but it was really

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<v Speaker 3>down to their beat in the beverage unit, which saw

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<v Speaker 3>about two percent growth in North America's strongest in nearly

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<v Speaker 3>two years. It's all on the back of their trademark

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<v Speaker 3>Pepsi Beverage Yes, as well as Poppy, which is a

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<v Speaker 3>healthier soda that it acquired earlier this year. On PepsiCo

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<v Speaker 3>has been trying to keep up with shifting consumer tastes

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<v Speaker 3>by expanding into its healthier, more high protein, more portion

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<v Speaker 3>controlled offerings, and it seems to be paying off, with

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<v Speaker 3>PepsiCo up over two percent so far in pre market trade.

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<v Speaker 1>All right, let's go to Costco next, because the warehouse

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<v Speaker 1>shoppers are still going through the door there.

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<v Speaker 3>Costco posted some pretty decent comparable sales for September. It

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<v Speaker 3>beat estimates, analysts calling it impressive eight percent rise year

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<v Speaker 3>and year. So Costco up one and a quarter percent

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<v Speaker 3>so far in pre market trade following this enthusiasm.

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<v Speaker 1>And we got to talk about downside movers, and this

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<v Speaker 1>one's an earning story as well. Big disappointment coming from

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<v Speaker 1>of all names.

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<v Speaker 3>Ferrari, Yeah, this one is pretty ugly. Ferrari shares have

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<v Speaker 3>been halted for a second time in Milan, down fifteen percent.

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<v Speaker 3>The ADRs are also down over thirteen percent their US

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<v Speaker 3>listed stock, biggest drop in nearly a decade. They gave

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<v Speaker 3>a cautious forecast at an investor day that disappointed investors.

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<v Speaker 3>They've also announced plans to essentially scale back their plan

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<v Speaker 3>to make electric vehicles they have their twenty thirty target

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<v Speaker 3>for evs in their product mix now. Their shares have

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<v Speaker 3>outperformed general automakers in the past five years, but it's

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<v Speaker 3>looking like today could really be changing that narrative with

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<v Speaker 3>this disappointment on the pullback on EV's.

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