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 1: Let's take a look at some stocks on the move today.
Speaker 1: I'm Nathan Hager, joined by Bloomberg Stan Curtis. On another
Speaker 1: very busy morning for earnings. The attention continues on the
Speaker 1: big tech names. Of course, two very different reactions to
Speaker 1: big spending from Meta Platforms and Microsoft. Dan, good morning, Good.
Speaker 3: Morning, Nathan. You hit a nail on the head with that.
Speaker 3: It's just the difference in reaction this morning between the
Speaker 3: two tech giants, with Meta up eight percent, Microsoft down
Speaker 3: seven percent. Says so much about the markets these days.
Speaker 3: So both companies came out reported earnings and sales that
Speaker 3: beat estimates. But here's the difference. Microsoft as Zoo sales
Speaker 3: came out just above estimates, but despite the beat, it's
Speaker 3: still seen us somewhat disappointing. That said, the spending was
Speaker 3: higher than expected from Microsoft, with over thirty seven billion
Speaker 3: dollars being invested in the past quarter. That leaves Wall
Speaker 3: Street questioning the return on Microsoft spendings. The capex is
Speaker 3: growing more than expected, and the sales are not growing
Speaker 3: by the same level. That's putting the stock on the
Speaker 3: back foot this morning. Meta, on the other hand, different story.
Speaker 3: The company is giving a strong forecast for the current
Speaker 3: quarter and is expecting fifty five billion dollars in sales
Speaker 3: this quarter. It's leaning on its AD business for that,
Speaker 3: and it is spending big. It plans to spend up
Speaker 3: to one hundred and thirty five billion dollars in capex
Speaker 3: this year. But the core business is seen supporting the
Speaker 3: AI spending spree. That's why Meta is up eight percent today.
Speaker 3: Microsoft is down seven percent in the pre market, So
Speaker 3: just two sides of the same coin.
Speaker 1: Yeah, we also heard from Tesla. Of course, investors seem
Speaker 1: to like signs of a pivot away from their core business.
Speaker 3: That's right, Tesla. We typically come on and call it
Speaker 3: a car company. I'm not sure how much longer we'll
Speaker 3: be able to do that. Those shares are up two
Speaker 3: and a half percent in pre market. Top line missed,
Speaker 3: bottom line did be in fourth quarter. But the big
Speaker 3: news about this is the company is doing a bit
Speaker 3: of a reshuffle. It's going to spend twenty billion dollars
Speaker 3: to reshuffle its factory it's discontinuing two of its oldest vehicles,
Speaker 3: the Model S and the Model X, to make room
Speaker 3: for building its Optimus humanoid robots. It's increasing bets away
Speaker 3: from the cars, pivoting towards its EV business, focusing on
Speaker 3: AI and robotaxis. Investors cheering that this morning.
Speaker 1: Yeah, we've got lots more earnings to get to this morning,
Speaker 1: and a lot of these even though their industrial names
Speaker 1: seem like they're driven by the AI trade as well.
Speaker 1: Tell us more about what we got from Dow this morning.
Speaker 3: Yeah, So Dow Chemicals Company announced the will terminy about
Speaker 3: four five hundred rolls out of nearly thirty five thousand employees.
Speaker 3: It's looking to simplify and streamline its operations, and as
Speaker 3: you said, this does tie back to AI. It's going
Speaker 3: to leverage AI and automation as part of the plans.
Speaker 3: So through this it's looking for two thirds of the
Speaker 3: benefits to come from productivity, the recipe driven by growth.
Speaker 3: Company did also announced fourth quarter sales that were just
Speaker 3: around estimates, but those job cuts really taking the headlines
Speaker 3: this morning. That has left the stock down three percent
Speaker 3: in pre market.
Speaker 1: And we also heard from a Caterpillar this morning as well.
Speaker 1: What's the story there.
Speaker 3: Yeah, again AI. Typically I hear Caterpillar and I think
Speaker 3: of these big yellow tractors, but it actually makes equipment
Speaker 3: that's been a thing from the AI boom. So it
Speaker 3: posted fourth quarter earnings of five dollars and sixteen cents
Speaker 3: of share, ten percent above estimates. That's driven from the
Speaker 3: power and Energy unit. If you haven't heard about that before,
Speaker 3: it's because it's been a relatively sleepy unit, but it's
Speaker 3: become the largest and fasting growing segment as it sells
Speaker 3: power generators, gas turbines, and engines to produce electricity. That's
Speaker 3: helping within this whole data center build out boom.
Speaker 1: Just time to tell us about earnings from International Paper, Dan.
Speaker 3: Yeah, so International Paper, we are hearing that that company
Speaker 3: may actually split off its European business. It's the stocks
Speaker 3: is up nearly four percent in pre market right now. So,
Speaker 3: according to someone familiar with the matter, it could split
Speaker 3: out spin off its European business. It's seen strong growth
Speaker 3: in Europe, has got two point three billion dollars in
Speaker 3: the third quarter from the region, up nearly three hundred million.
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