1 00:00:02,520 --> 00:00:09,040 Speaker 1: Bloomberg Audio Studios podcasts, radio news, The. 2 00:00:08,880 --> 00:00:13,160 Speaker 2: Stock Movers podcast, your roundup of companies making moves in 3 00:00:13,200 --> 00:00:16,480 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:17,680 --> 00:00:19,000 Speaker 1: Let's take a look at some of the stocks on 5 00:00:19,040 --> 00:00:21,239 Speaker 1: the move today. I'm host when You alongside Lis Mittel, 6 00:00:21,239 --> 00:00:23,560 Speaker 1: and we're joined by Bloombergs. You needs to covid Indie. 7 00:00:23,600 --> 00:00:25,040 Speaker 1: What are you looking at in the market today. 8 00:00:25,320 --> 00:00:30,240 Speaker 3: Let's start with General Motors strew of native earnings this morning. 9 00:00:30,360 --> 00:00:32,120 Speaker 1: General Motor sticker is GM. 10 00:00:32,280 --> 00:00:35,080 Speaker 3: Of course, we're talking about that one point one billion 11 00:00:35,120 --> 00:00:35,720 Speaker 3: profit hit. 12 00:00:36,040 --> 00:00:37,800 Speaker 1: It's coming from Donald Trump. 13 00:00:37,560 --> 00:00:41,560 Speaker 3: Stariff's and the company revealed no plan for a near 14 00:00:41,720 --> 00:00:45,639 Speaker 3: term fix to return to pre tariff profit levels. 15 00:00:45,800 --> 00:00:47,120 Speaker 1: The stock really. 16 00:00:46,800 --> 00:00:50,559 Speaker 3: Stumbled on the open. It's down now about seven percent. 17 00:00:51,120 --> 00:00:54,520 Speaker 3: UH profits suffered from high warranty costs and a build 18 00:00:54,600 --> 00:00:57,640 Speaker 3: up in inventory of electric vehicles. We of course have 19 00:00:57,760 --> 00:01:02,280 Speaker 3: that bill that is cutting so cities for electric vehicle, 20 00:01:02,320 --> 00:01:05,280 Speaker 3: so that putting even more pressure on the company. The 21 00:01:05,360 --> 00:01:08,200 Speaker 3: results show how difficult it is to maintain those profits 22 00:01:08,520 --> 00:01:13,040 Speaker 3: in the current regime with tariff wars and obviously very complicated. 23 00:01:12,520 --> 00:01:13,919 Speaker 1: For global supply change. 24 00:01:14,040 --> 00:01:16,039 Speaker 3: And GM is kind of the first one where we 25 00:01:16,120 --> 00:01:20,440 Speaker 3: see this big hit starting to weigh on. GM hasn't 26 00:01:20,480 --> 00:01:24,920 Speaker 3: moved to raise prices. Instead, it has opted to absorb 27 00:01:25,680 --> 00:01:28,040 Speaker 3: some of the costs. It actually there were some positive 28 00:01:28,080 --> 00:01:32,360 Speaker 3: things in the report. It grew vehicle sales, It actually 29 00:01:32,360 --> 00:01:36,320 Speaker 3: achieved a second straight quarterly profit from China. But clearly 30 00:01:36,440 --> 00:01:38,800 Speaker 3: this is not enough to lift sentiment. 31 00:01:38,880 --> 00:01:39,119 Speaker 1: Today. 32 00:01:39,160 --> 00:01:42,720 Speaker 3: The stock is down seven percent year today, and today 33 00:01:42,800 --> 00:01:43,720 Speaker 3: is one of the worst. 34 00:01:43,520 --> 00:01:44,440 Speaker 1: Days in quite some time. 35 00:01:44,760 --> 00:01:46,160 Speaker 3: It is, okay, how do I take us to the 36 00:01:46,200 --> 00:01:47,560 Speaker 3: world's largest defense contractor. 37 00:01:47,560 --> 00:01:48,920 Speaker 1: We're talking about Lockheed. 38 00:01:48,520 --> 00:01:53,280 Speaker 3: Martin another disappointing earnings report, second quarter earnings that fell 39 00:01:53,360 --> 00:01:54,600 Speaker 3: short of analyst estimate. 40 00:01:54,920 --> 00:01:58,240 Speaker 1: The company also lowered its outlook for the year. The ticker, 41 00:01:58,280 --> 00:02:01,960 Speaker 1: of course, is empty. The store is down about seven percent. 42 00:02:03,200 --> 00:02:06,240 Speaker 3: The company said it incurred costs, including one point six 43 00:02:06,280 --> 00:02:09,720 Speaker 3: billion in program losses from a quassified program, and there 44 00:02:09,760 --> 00:02:13,280 Speaker 3: was also a separate helicopter development efforts with Knada and 45 00:02:13,320 --> 00:02:16,760 Speaker 3: Turkey that also led to a big loss. It's interesting 46 00:02:16,800 --> 00:02:19,799 Speaker 3: we had that contest about the F forty seven fighter 47 00:02:19,880 --> 00:02:23,400 Speaker 3: jet that eventually went to Boying, But the company said 48 00:02:24,000 --> 00:02:26,680 Speaker 3: it incurred one hundred and sixty nine million of other 49 00:02:26,800 --> 00:02:29,840 Speaker 3: charges related to that. Of course, the F thirty five 50 00:02:31,040 --> 00:02:34,880 Speaker 3: is still seeing strong demand from foreign couruntries like the UK. 51 00:02:35,040 --> 00:02:35,760 Speaker 1: But what we're. 52 00:02:35,600 --> 00:02:40,360 Speaker 3: Seeing is actually the Pentagon reduced the number of jets 53 00:02:40,400 --> 00:02:43,440 Speaker 3: in its twenty twenty six budgets, so that's putting even 54 00:02:43,440 --> 00:02:45,880 Speaker 3: more pressure on the stock, which can explain why the 55 00:02:45,880 --> 00:02:49,160 Speaker 3: company is now twelve percent year today after a really 56 00:02:49,200 --> 00:02:50,320 Speaker 3: tough day today. 57 00:02:51,200 --> 00:02:53,600 Speaker 2: Now I mean we're talking, we're switching. Here's a big 58 00:02:53,639 --> 00:02:54,760 Speaker 2: time herelu. 59 00:02:54,400 --> 00:02:57,399 Speaker 3: Lemon's totally different industry, but an important one. 60 00:02:57,440 --> 00:03:01,160 Speaker 1: Nevertheless, I am as well. The ticker is l U 61 00:03:01,560 --> 00:03:05,160 Speaker 1: l U. The company actually fell in pre market. 62 00:03:05,240 --> 00:03:07,640 Speaker 3: Now it's recovering some of that losses, which maybe comes 63 00:03:07,639 --> 00:03:11,320 Speaker 3: with retail euphor you in some in some names I call. 64 00:03:11,440 --> 00:03:16,639 Speaker 3: But what we're seeing is that famous black leggings, which 65 00:03:16,760 --> 00:03:20,120 Speaker 3: I am a fan of. They're rarely discounted, but now 66 00:03:20,160 --> 00:03:22,400 Speaker 3: we're seeing them pile at outlet stores. 67 00:03:22,720 --> 00:03:24,560 Speaker 1: So clearly that is a sign of a time. 68 00:03:24,880 --> 00:03:28,840 Speaker 3: And today we had a downgrade from JP Morgan cutting 69 00:03:28,880 --> 00:03:32,160 Speaker 3: the stock to neutral from overweight, and he's they're citing 70 00:03:32,200 --> 00:03:35,280 Speaker 3: those companies specific conversion rates and of course the same 71 00:03:35,800 --> 00:03:39,920 Speaker 3: store sales growth constraints in America. We actually had Goldman 72 00:03:40,000 --> 00:03:44,040 Speaker 3: Sex as well, lowering the firm price stack to two 73 00:03:44,120 --> 00:03:46,800 Speaker 3: hundred and fifty one dollors from two hundred and eighty five, 74 00:03:47,120 --> 00:03:52,160 Speaker 3: so a lot of pressure there. We have the CEO 75 00:03:52,280 --> 00:03:55,680 Speaker 3: trying to revive sales at lul Lemon. There is a 76 00:03:55,760 --> 00:03:59,080 Speaker 3: rising competition and I don't know lul Lemon leggings around 77 00:03:59,160 --> 00:04:01,240 Speaker 3: hundred doors, but if you go to Alu Yoga, I 78 00:04:01,240 --> 00:04:04,240 Speaker 3: think it gets even more expensive. So clearly the consumer 79 00:04:04,360 --> 00:04:06,880 Speaker 3: is not that under pressure if they can afford in 80 00:04:06,920 --> 00:04:11,320 Speaker 3: twenty doors leggings, are you, guys Lululemon customers, No, they're 81 00:04:11,320 --> 00:04:13,280 Speaker 3: a little bit out of my league from the pressure. 82 00:04:14,040 --> 00:04:16,720 Speaker 1: I love them, the black leggings. 83 00:04:16,839 --> 00:04:19,480 Speaker 3: I keep buying them and they last a little time. 84 00:04:20,040 --> 00:04:24,160 Speaker 2: The Stock Movers podcast from Bloomberg Radio. Check back with 85 00:04:24,240 --> 00:04:27,000 Speaker 2: us throughout the day for the latest roundup of companies 86 00:04:27,040 --> 00:04:30,080 Speaker 2: making news on Wall Street and for the latest market 87 00:04:30,120 --> 00:04:34,479 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 88 00:04:34,520 --> 00:04:37,760 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 89 00:04:37,839 --> 00:04:39,320 Speaker 2: the Bloomberg Business app.