WEBVTT - Walmart Slumps, Dayforce Rises, Cracker Barrell Sinks

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

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

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

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

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<v Speaker 1>the move today.

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<v Speaker 3>Joining us now is Bloomberg News Cross Asset reporter Emily Graffeo.

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<v Speaker 3>You're looking at shares of Walmart. We've been talking about

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<v Speaker 3>this all day. What's going on there?

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<v Speaker 4>I know, I hope you guys aren't like sick of

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<v Speaker 4>talking about Walmart. Maybe everyone on Wall Street is, But yeah,

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<v Speaker 4>I mean, this was really the big earnings of potentially

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<v Speaker 4>the week.

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<v Speaker 1>Walmart ticker WMT.

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<v Speaker 4>The stock drop, that's kind of why I think it

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<v Speaker 4>grabbed everyone's attention today. It was the second worst performer

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<v Speaker 4>in the S and P five hundred. It was the

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<v Speaker 4>biggest INJRO day drop since March. In the shares they

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<v Speaker 4>actually closed down about five percent. It was a rare

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<v Speaker 4>profit miss, so they missed expectations on profit for the

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<v Speaker 4>first time.

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<v Speaker 1>In three years.

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<v Speaker 4>And then the big question with Walmart was like, we

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<v Speaker 4>have all these tariffs potentially, how is that going to

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<v Speaker 4>trickle down to retail companies? And actually it seems like

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<v Speaker 4>the company itself is absorbing the tariffs more than them

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<v Speaker 4>passing them on to the consumer. So if you read

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<v Speaker 4>our Bloomberg News story, it says tariffs have started to

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<v Speaker 4>materialize at Walmart in higher prices, but the impact has

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<v Speaker 4>been limited. Prices rose one percent in the US during

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<v Speaker 4>the quarter, So you would have expected if the company

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<v Speaker 4>was really passing the cost of tariffs onto consumers, you'd

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<v Speaker 4>say a much bigger number than just one percent.

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<v Speaker 5>Okay, So that's Walmart for US. Day Force is also

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<v Speaker 5>a company that you're watching.

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<v Speaker 4>Day Force is a human resources software provider like back

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<v Speaker 4>office for I guess every business.

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<v Speaker 1>The ticker is day A.

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<v Speaker 4>Yeah.

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<v Speaker 1>It's also in the S and P five hundred. It

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<v Speaker 1>was Oh is it getting no?

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<v Speaker 5>I mean if it gets bought out and taken private?

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<v Speaker 3>Right?

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<v Speaker 4>Oh? Yes, that will be it will be gone. It

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<v Speaker 4>will be gone. And that's exactly why it was up.

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<v Speaker 4>It was up two percent today. It's up about thirty

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<v Speaker 4>percent over the last four days. And this is all

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<v Speaker 4>on deal news. Toma Bravo will take them private for

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<v Speaker 4>seven dollars a share in cash. And then we also

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<v Speaker 4>got news that now Goldman Sachs is getting involved. They

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<v Speaker 4>committed a six billion dollar debt financing package to support

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<v Speaker 4>the acquisition. So this is just like very big names

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<v Speaker 4>on Wall Street.

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<v Speaker 5>What I think is so interesting about this is our

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<v Speaker 5>Bloomberg News team with the scoop earlier this week about this,

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<v Speaker 5>and that's the day that you saw the stock close

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<v Speaker 5>twenty six percent higher. Tuesday, it fell, then Wednesday it

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<v Speaker 5>was up by three percent. Today by two point four percent,

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<v Speaker 5>So a lot of the upside was earlier in the

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<v Speaker 5>week before that. Thoma Brov actually talked about that.

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<v Speaker 4>Yes, yes, so the price the seventy dollars a sharing

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<v Speaker 4>cash represents a roughly thirty two percent premium to the

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<v Speaker 4>price before Bloomberg News had scooped that this deal was

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<v Speaker 4>in the works.

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<v Speaker 3>I want to get to what has been a really

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<v Speaker 3>interesting story that we've been talking about today. Yes, Cracker Barrel,

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<v Speaker 3>tell us what's going on there and why we saw

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<v Speaker 3>the client sitting and.

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<v Speaker 5>No, we are not bored of talking about talking about

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<v Speaker 5>I still don't get it.

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<v Speaker 4>I saw this story and I was like, oh, like,

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<v Speaker 4>BusinessWeek is going to love this. Cracker Barrel ticker CBRL.

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<v Speaker 4>It was down as much as fifteen percent today close

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<v Speaker 4>the day down seven percent. It's because they're redesigning their logo.

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<v Speaker 4>And by the way, the stock has fallen for the

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<v Speaker 4>last five days.

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<v Speaker 1>They're redesigning their logo logo. They're like stripping.

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<v Speaker 4>Out every element that made cracker barrel that kind of

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<v Speaker 4>old farmhouse esthetic and they just made it this very

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<v Speaker 4>modernized cracker barrel logo. It's just like the text and

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<v Speaker 4>like a yellow circle. Now this has become politicized.

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<v Speaker 1>Donald J. Trump weighed in on x about the changes, but.

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<v Speaker 5>I don't true Junior or Donald or the asident.

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<v Speaker 4>I'm sorry, sorry, Donald Trump Junior, excuse me, Oh my gosh.

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<v Speaker 4>Maybe the president will also weigh in, and so, of

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<v Speaker 4>course it's now becoming politicized.

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<v Speaker 1>But we don't even need to focus on that. I

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<v Speaker 1>think we should focus on the fact that they remodeled,

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<v Speaker 1>they changed their logo.

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<v Speaker 4>People on social media are really upset, and the shareholders

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<v Speaker 4>obviously don't.

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<v Speaker 1>Like the change.

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<v Speaker 3>I mean, I think people get so used to just

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<v Speaker 3>having something that they're used to, right, So I think

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<v Speaker 3>maybe that's not Everyone loves change, and we're seeing that

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<v Speaker 3>reflected here in the trade.

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<v Speaker 5>But it doesn't affect the company's stock price. I mean,

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<v Speaker 5>there are we talked about this, people are going, well,

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<v Speaker 5>Michael Halen and Bloomberg Intelligence has a note oubt and

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<v Speaker 5>he says, it's not like what happened with Nanheuser Busch

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<v Speaker 5>and the marketing stuff earlier, Like this is not going

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<v Speaker 5>to affect the company for an extended period of time.

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<v Speaker 5>But still the stock has been taken ahead.

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<v Speaker 1>Yeah.

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<v Speaker 3>The commentary has also been that they feel as though

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<v Speaker 3>this may appeal to younger audiences, ditching the rock and chair.

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<v Speaker 5>Okay, so it's just a logo.

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<v Speaker 1>People a logo are very upset.

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<v Speaker 4>No, but it's tim It's not just the load remodeled

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<v Speaker 4>their interiors about a year ago.

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<v Speaker 1>So this is part of a broader rebrand.

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<v Speaker 4>And you look at what people are saying on Reddit

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<v Speaker 4>on our Cracker Barrel, because Cracker Barrel has really intense

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<v Speaker 4>stands saying what in the world is this They took

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<v Speaker 4>They basically took down all the farmhouse choch keys.

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<v Speaker 1>They added these like bright fluorescent lights that I mean,

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<v Speaker 1>I wouldn't want to go in there.

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<v Speaker 4>Someone else said, I've been going to Cracker Barrel for

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<v Speaker 4>forty nine years since i was a kid with my grandmother.

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<v Speaker 1>And like it's just the redesign they don't approve with that.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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