WEBVTT - Intel Drops, FedEx Falls, Oracle Gains As Analysts See Opportunity 

0:00:02.520 --> 0:00:07.000
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:16.320
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.520 --> 0:00:18.319
<v Speaker 1>Let's take a look at some of the stocks on

0:00:18.360 --> 0:00:21.240
<v Speaker 1>the move today. I'm also joined by scarlat Field, were

0:00:21.280 --> 0:00:23.400
<v Speaker 1>joined by Bloomberg's They need to COVID, they need to

0:00:23.400 --> 0:00:25.840
<v Speaker 1>what are you looking at? Let's start with Intel. Ticker

0:00:26.120 --> 0:00:29.560
<v Speaker 1>is i NTC. The stock is down today, a lot

0:00:29.560 --> 0:00:32.920
<v Speaker 1>of pressure, down one percent. It's coming from a rating

0:00:33.000 --> 0:00:36.680
<v Speaker 1>change from HSBC. Currently the stock is reduced from Holt.

0:00:37.040 --> 0:00:39.840
<v Speaker 1>The company rights that the recent do you related STrenD

0:00:39.880 --> 0:00:42.360
<v Speaker 1>in the stock is not sustainable and in fact, if

0:00:42.400 --> 0:00:45.520
<v Speaker 1>you look that September chart, just the stock went parabolic.

0:00:46.080 --> 0:00:48.879
<v Speaker 1>It's more than ninety percent of the August lows. The

0:00:48.880 --> 0:00:52.440
<v Speaker 1>company's new partnership with Nvidia was one of the biggest boosts,

0:00:52.440 --> 0:00:55.000
<v Speaker 1>but of course there have been many deals in Vidia

0:00:55.120 --> 0:00:59.800
<v Speaker 1>recently investing in the company following US Presidence Donald Trump.

0:01:00.120 --> 0:01:03.000
<v Speaker 1>So to accelate the payment of about nine billion of funding,

0:01:03.280 --> 0:01:05.679
<v Speaker 1>then we have a two billion investment from soft Bank.

0:01:06.400 --> 0:01:09.920
<v Speaker 1>So this has really boosted sentiment there, but clearly for

0:01:10.080 --> 0:01:14.200
<v Speaker 1>HSBC that is not enough. They say Intel's own execution

0:01:14.319 --> 0:01:17.320
<v Speaker 1>remains key to any sustainable turnaround. We actually had a

0:01:17.319 --> 0:01:20.720
<v Speaker 1>great story on the terminal recently that the cash infusions

0:01:20.720 --> 0:01:23.280
<v Speaker 1>have done little to fix the core business. It's money

0:01:23.280 --> 0:01:27.000
<v Speaker 1>losing chip making operations, so perhaps investors still keep an

0:01:27.000 --> 0:01:29.520
<v Speaker 1>eye on this. One thing HSBC is saying is that

0:01:29.560 --> 0:01:32.800
<v Speaker 1>the only deal that matters, that can fundamentally change anything

0:01:33.120 --> 0:01:37.600
<v Speaker 1>would be one involving technology sharing with TSMC. It's still

0:01:37.680 --> 0:01:41.120
<v Speaker 1>obviously super strong ear for Intel despite the move today.

0:01:41.200 --> 0:01:44.720
<v Speaker 1>Absolutely okay, so a downgrade dooming Intel shares at least

0:01:44.720 --> 0:01:45.240
<v Speaker 1>for today.

0:01:45.520 --> 0:01:47.240
<v Speaker 2>There's also a downgrade on fed X.

0:01:47.480 --> 0:01:49.800
<v Speaker 1>Yeah, and the reaction is even worse. FedEx is down

0:01:49.840 --> 0:01:52.880
<v Speaker 1>two percent. The downgrade is coming from JP Morgan. They

0:01:52.880 --> 0:01:56.680
<v Speaker 1>cut the recommendation to neutral from overlaid. The price tag

0:01:56.760 --> 0:01:59.720
<v Speaker 1>is still positive. A little bit of game from here.

0:02:00.280 --> 0:02:02.960
<v Speaker 1>He wrote that the perception of a weekend price discipline

0:02:03.000 --> 0:02:07.520
<v Speaker 1>among less than truckload carriers justifies lower multiples we've seen

0:02:07.720 --> 0:02:11.760
<v Speaker 1>even from FedEx. Their projection is about one billion hits

0:02:11.800 --> 0:02:15.160
<v Speaker 1>from the trade volatility this year, and clearly that has

0:02:15.240 --> 0:02:17.960
<v Speaker 1>been one of the biggest companies people are watching when

0:02:18.000 --> 0:02:20.720
<v Speaker 1>it comes to impact from tariffs, and that so far

0:02:21.040 --> 0:02:23.600
<v Speaker 1>is really weighing on the company. Most of the reduction

0:02:23.960 --> 0:02:27.639
<v Speaker 1>to adjusted operating profits steams from lower shipments from China

0:02:27.919 --> 0:02:31.200
<v Speaker 1>to the US. Obviously that's a highly profitable shipping lane.

0:02:31.880 --> 0:02:36.600
<v Speaker 1>The transport sector. JP Morgan says faces a bismo market sentiment.

0:02:37.720 --> 0:02:43.320
<v Speaker 1>So yeah, some negative sentiment there. Oracle had a really

0:02:43.440 --> 0:02:45.960
<v Speaker 1>rough day yesterday and today we're seeing a big reversal.

0:02:45.960 --> 0:02:48.680
<v Speaker 1>Stock is up about two percent now. The ticker is

0:02:48.840 --> 0:02:53.359
<v Speaker 1>all our cel. Of course, it comes after the Information

0:02:53.480 --> 0:02:57.880
<v Speaker 1>reported that it's quite called computing business is generating lower

0:02:58.160 --> 0:03:00.720
<v Speaker 1>revenue than many in Wall Street have been as but

0:03:00.760 --> 0:03:02.560
<v Speaker 1>the reaction on the street is not negative at all.

0:03:02.680 --> 0:03:05.919
<v Speaker 1>Mazu who is saying this is a buying opportunity, A

0:03:06.000 --> 0:03:09.160
<v Speaker 1>bloomer Intelligence is saying gross profit of less than twenty

0:03:09.200 --> 0:03:13.400
<v Speaker 1>percent is not that surprising. And Jerry, we're seeing a

0:03:13.480 --> 0:03:16.560
<v Speaker 1>lot of positive optimism. Oracle shares have jumped around seventy

0:03:16.600 --> 0:03:20.320
<v Speaker 1>percent this year. Demand for art Fisher intelligence computing has

0:03:20.400 --> 0:03:23.840
<v Speaker 1>been soaring, and clearly investors don't want to miss on

0:03:23.960 --> 0:03:27.720
<v Speaker 1>any buying deep opportunity, and we see that on display today.

0:03:28.720 --> 0:03:32.720
<v Speaker 2>This stock mover's report from Bloomberg Radio. Check back with

0:03:32.840 --> 0:03:35.400
<v Speaker 2>us throughout the day for the latest roundup of companies

0:03:35.480 --> 0:03:38.560
<v Speaker 2>making news on Wall Street and for the latest market

0:03:38.600 --> 0:03:43.080
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:03:43.160 --> 0:03:46.640
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:03:46.720 --> 0:03:48.200
<v Speaker 2>the Bloomberg Business app.