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 Data.
Speaker 3: Welcome to the Stock Movers podcast. I'm Charlie Pala joining
Speaker 3: us today Bloomberg's Christine A. Quino, Managing editor for Markets Live.
Speaker 3: Got to begin with the homebuilders because there was quite
Speaker 3: the move today in Paulty. What was going on with
Speaker 3: Paulty Home.
Speaker 1: Yeah, absolutely, Charlie, So Paulty Groups at ticker PHM. Those
Speaker 1: shares finished lower by four point nine percent, and this
Speaker 1: is because we have seen a series of social media
Speaker 1: posts from President Donald Trump as well as the Federal
Speaker 1: Housing Finance AGENC director Bill Paulty, essentially pressuring homebuilders to
Speaker 1: build homes, which I guess you could say makes a
Speaker 1: lot of sense, but it's just that added pressure from
Speaker 1: the administration that's really lighting of our under the stocks
Speaker 1: in not a positive way. And we should note, of
Speaker 1: course that Bill Paulty is the grandson of William J. Paulty,
Speaker 1: who founded Paulty Groups, So a little bit of irony there,
Speaker 1: but yes, we have seen in our comments essentially just
Speaker 1: pressure the whole home builder sector in general, we've seen
Speaker 1: a gauged by the S and P down over nine
Speaker 1: point six percent just over four days. That's down more
Speaker 1: than nineteen and a half billion in terms of market
Speaker 1: value over this period.
Speaker 3: Indeed, Paulty down every single day this week, dropping four
Speaker 3: point nine percent today. And not just Paulty, but as
Speaker 3: you mentioned, other home builders down. D R Horton down
Speaker 3: four point six percent, KB was down four and a
Speaker 3: half percent, Toll Brothers down two point six percent. Let
Speaker 3: us move beyond housing the home builders and into earnings,
Speaker 3: specifically the airlines and Delta. Delta stock up today. What
Speaker 3: was going on with Delta after earnings?
Speaker 1: Yeah, I'm goodings for Delta here, Charlie. So Delta ticker
Speaker 1: DAL those shares finished four point three percent hire. We
Speaker 1: did get updated guidance from the carrier regarding its adjusted
Speaker 1: earnings per share forecast for a full year, and new
Speaker 1: guidance that also beat the analyst estimate. So now they're
Speaker 1: seeing just an EPs at about six dollars, whereas the
Speaker 1: analyst estimate was at five to eighty. It's a very
Speaker 1: interesting bit of good news, especially it seems like it's
Speaker 1: a time when all we get is bad news from
Speaker 1: airlines these day, isn't it. But yeah, this is a
Speaker 1: rare bit of good news for them.
Speaker 3: Indeed, we saw a United move higher today, we saw
Speaker 3: American airlines decline. Though, is there any veracity? Is it
Speaker 3: worth talking about Delta Airlines as an economic indicator?
Speaker 1: I mean, certainly, And that's something I think that a
Speaker 1: lot of analysts on the street are still potentially worried about.
Speaker 1: We did hear from chief executive Officer Ed Bastian saying
Speaker 1: that their customer is in a financially good spot. They're
Speaker 1: not necessarily seeing any pullback in demand. But that's of
Speaker 1: course something that you would expect us CEO of an
Speaker 1: airline to say, And so I think for analysts the
Speaker 1: concern is really whether they will be able to push
Speaker 1: their premium products, because this is something that Delta has
Speaker 1: been trying to do more of, and whether consumers will
Speaker 1: be able to absorb the cost of these premium products,
Speaker 1: especially at a time when inflation just in general still
Speaker 1: seems to be a worry for a lot of American households.
Speaker 3: Yeah, I heard Delta too talking about the quarter, saying
Speaker 3: that a lot of travelers also to are choosing not
Speaker 3: to go in the hot summer season, especially some of
Speaker 3: the older travelers who want to move or go to
Speaker 3: Europe when say it's a little bit a little bit cooler,
Speaker 3: not as hot, and that's also helping bookings into the
Speaker 3: fourth quarter.
Speaker 2: Now.
Speaker 3: Also out today with earnings PepsiCo, how do they fare?
Speaker 1: Yeah, PepsiCo finishing the day higher as well, so tick
Speaker 1: her pep those airs up more than four percent. And
Speaker 1: we did get their annual profit outlook and the analysts
Speaker 1: are just seeing some positives here, right, So in terms
Speaker 1: of their actual outlook, you know, they're still seeing operating
Speaker 1: profits at a three point six billion, still below estimates,
Speaker 1: a net revenue slightly above stimus twenty three point nine
Speaker 1: to four billion. This is in terms of their third
Speaker 1: quarter results. In terms of their actual outlook, they're seeing
Speaker 1: low single digit boost in organic or revenue. But I
Speaker 1: think what analysts are really seizing upon here is the
Speaker 1: fact that PepsiCo is working to cut costs and overhaul
Speaker 1: its portfolio, and they're doing it with such urgency. Chief
Speaker 1: executive Officer Ramon Laguarta did speak to analysts on a
Speaker 1: call on Thursday morning and they say that they are
Speaker 1: still a few eras that they need to work on.
Speaker 1: But they're doing this with a lot of urgency, and
Speaker 1: there have been a lot of constructive discussions, and at
Speaker 1: least for today, investors are taking that to be a
Speaker 1: positive thing.
Speaker 3: Indeed, we saw shares of PepsiCo advancing, as you say,
Speaker 3: interestingly though rival Coca Cola. It was up today by
Speaker 3: just about four tens to one percent, Coca Cola reports
Speaker 3: on October twenty First, is it safe to say, so
Speaker 3: goes Pepsi, then we'll go Coca Cola.
Speaker 1: I mean, you'd think that they would be working or
Speaker 1: you know, moving in tandem in this particular market given
Speaker 1: that competition, right, and so for both of these brands,
Speaker 1: really it just depends on how they managed to differentiate
Speaker 1: from each other in terms of, you know, PepsiCo's approach
Speaker 1: to things. Analysts are pointing to the fact that, you know,
Speaker 1: there's some fourth quarter trends that could show some improvement,
Speaker 1: particularly when it comes to mitigating tariff actions, and perhaps
Speaker 1: also weather might play a part. There might be less
Speaker 1: weather related pressure, particularly when it comes to their international
Speaker 1: beverage line.
Speaker 3: All right, Christina Quino always appreciated, Thank you for spending
Speaker 3: time with us. And that is the stock Mover's Report.
Speaker 3: I'm Charlie P.
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