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Speaker 1: Bloomberg Audio Studios, podcasts, radio News.

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Speaker 2: The Stock Movers Report, your roundup of companies making moves

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Speaker 2: in the stock market. Harnessing the power of Bloomberg Data.

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Speaker 1: Let's take a look at some stocks on the move today.

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Speaker 1: I'm Nathan Hager, joined by Bloomberg Stan Curtis. On another

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Speaker 1: very busy morning for earnings. The attention continues on the

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Speaker 1: big tech names. Of course, two very different reactions to

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Speaker 1: big spending from Meta Platforms and Microsoft. Dan, good morning, Good.

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Speaker 3: Morning, Nathan. You hit a nail on the head with that.

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Speaker 3: It's just the difference in reaction this morning between the

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Speaker 3: two tech giants, with Meta up eight percent, Microsoft down

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Speaker 3: seven percent. Says so much about the markets these days.

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Speaker 3: So both companies came out reported earnings and sales that

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Speaker 3: beat estimates. But here's the difference. Microsoft as Zoo sales

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Speaker 3: came out just above estimates, but despite the beat, it's

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Speaker 3: still seen us somewhat disappointing. That said, the spending was

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Speaker 3: higher than expected from Microsoft, with over thirty seven billion

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Speaker 3: dollars being invested in the past quarter. That leaves Wall

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Speaker 3: Street questioning the return on Microsoft spendings. The capex is

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Speaker 3: growing more than expected, and the sales are not growing

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Speaker 3: by the same level. That's putting the stock on the

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Speaker 3: back foot this morning. Meta, on the other hand, different story.

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Speaker 3: The company is giving a strong forecast for the current

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Speaker 3: quarter and is expecting fifty five billion dollars in sales

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Speaker 3: this quarter. It's leaning on its AD business for that,

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Speaker 3: and it is spending big. It plans to spend up

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Speaker 3: to one hundred and thirty five billion dollars in capex

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Speaker 3: this year. But the core business is seen supporting the

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Speaker 3: AI spending spree. That's why Meta is up eight percent today.

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Speaker 3: Microsoft is down seven percent in the pre market, So

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Speaker 3: just two sides of the same coin.

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Speaker 1: Yeah, we also heard from Tesla. Of course, investors seem

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Speaker 1: to like signs of a pivot away from their core business.

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Speaker 3: That's right, Tesla. We typically come on and call it

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Speaker 3: a car company. I'm not sure how much longer we'll

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Speaker 3: be able to do that. Those shares are up two

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Speaker 3: and a half percent in pre market. Top line missed,

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Speaker 3: bottom line did be in fourth quarter. But the big

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Speaker 3: news about this is the company is doing a bit

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Speaker 3: of a reshuffle. It's going to spend twenty billion dollars

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Speaker 3: to reshuffle its factory it's discontinuing two of its oldest vehicles,

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Speaker 3: the Model S and the Model X, to make room

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Speaker 3: for building its Optimus humanoid robots. It's increasing bets away

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Speaker 3: from the cars, pivoting towards its EV business, focusing on

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Speaker 3: AI and robotaxis. Investors cheering that this morning.

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Speaker 1: Yeah, we've got lots more earnings to get to this morning,

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Speaker 1: and a lot of these even though their industrial names

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Speaker 1: seem like they're driven by the AI trade as well.

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Speaker 1: Tell us more about what we got from Dow this morning.

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Speaker 3: Yeah, So Dow Chemicals Company announced the will terminy about

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Speaker 3: four five hundred rolls out of nearly thirty five thousand employees.

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Speaker 3: It's looking to simplify and streamline its operations, and as

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Speaker 3: you said, this does tie back to AI. It's going

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Speaker 3: to leverage AI and automation as part of the plans.

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Speaker 3: So through this it's looking for two thirds of the

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Speaker 3: benefits to come from productivity, the recipe driven by growth.

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Speaker 3: Company did also announced fourth quarter sales that were just

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Speaker 3: around estimates, but those job cuts really taking the headlines

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Speaker 3: this morning. That has left the stock down three percent

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Speaker 3: in pre market.

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Speaker 1: And we also heard from a Caterpillar this morning as well.

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Speaker 1: What's the story there.

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Speaker 3: Yeah, again AI. Typically I hear Caterpillar and I think

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Speaker 3: of these big yellow tractors, but it actually makes equipment

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Speaker 3: that's been a thing from the AI boom. So it

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Speaker 3: posted fourth quarter earnings of five dollars and sixteen cents

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Speaker 3: of share, ten percent above estimates. That's driven from the

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Speaker 3: power and Energy unit. If you haven't heard about that before,

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Speaker 3: it's because it's been a relatively sleepy unit, but it's

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Speaker 3: become the largest and fasting growing segment as it sells

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Speaker 3: power generators, gas turbines, and engines to produce electricity. That's

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Speaker 3: helping within this whole data center build out boom.

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Speaker 1: Just time to tell us about earnings from International Paper, Dan.

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Speaker 3: Yeah, so International Paper, we are hearing that that company

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Speaker 3: may actually split off its European business. It's the stocks

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Speaker 3: is up nearly four percent in pre market right now. So,

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Speaker 3: according to someone familiar with the matter, it could split

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Speaker 3: out spin off its European business. It's seen strong growth

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Speaker 3: in Europe, has got two point three billion dollars in

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Speaker 3: the third quarter from the region, up nearly three hundred million.

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Speaker 2: This stock mover's report from Bloomberg Radio check back with

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Speaker 2: us throughout the day for the latest roundup of companies

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