1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:16,800 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,920 --> 00:00:19,279 Speaker 3: I'm Jim Stinevieck along with MLA Grafail. Let's take a 5 00:00:19,320 --> 00:00:22,040 Speaker 3: look at some stocks on the move today. Joining us 6 00:00:22,079 --> 00:00:25,280 Speaker 3: now is Bloomberg News Deputy team leader for US Equities, 7 00:00:25,360 --> 00:00:28,200 Speaker 3: Jess Menon. She's here with our stock movers. Hey, Jess, 8 00:00:28,200 --> 00:00:29,560 Speaker 3: what's on your radar today? 9 00:00:29,720 --> 00:00:31,880 Speaker 1: So I wanted to do something a little bit under 10 00:00:31,880 --> 00:00:33,720 Speaker 1: the hood of the service because the last couple of 11 00:00:33,760 --> 00:00:36,040 Speaker 1: days things had been waffling around, even though the S 12 00:00:36,080 --> 00:00:38,320 Speaker 1: and P five hundred et out again yesterday and now 13 00:00:38,320 --> 00:00:41,200 Speaker 1: it's trying to hold onto those gains into the closing bell. 14 00:00:41,320 --> 00:00:44,000 Speaker 1: So I looked more closely at what happens with dividend 15 00:00:44,000 --> 00:00:47,240 Speaker 1: paying stocks because they are outperforming the market if you 16 00:00:47,280 --> 00:00:49,280 Speaker 1: look at kind of the top three sectors here, whether 17 00:00:49,320 --> 00:00:52,720 Speaker 1: it's utility, staples, also real estate, typically those ones that 18 00:00:52,760 --> 00:00:56,000 Speaker 1: are do well in lower volatility environments, obviously the vis 19 00:00:56,040 --> 00:00:59,440 Speaker 1: below twenty and then known for those those steady payouts 20 00:00:59,480 --> 00:01:02,400 Speaker 1: when it comes to dividends, and so unfortunately they don't 21 00:01:02,440 --> 00:01:04,920 Speaker 1: have a big waiting in the index. So the top 22 00:01:04,959 --> 00:01:07,399 Speaker 1: three waitings in the S and P five hundred, not surprisingly, 23 00:01:07,400 --> 00:01:10,920 Speaker 1: you'd have Technology, consumer discretionary, and then you also have financial. 24 00:01:11,000 --> 00:01:13,360 Speaker 1: So when you have waitings like this that are below 25 00:01:13,480 --> 00:01:16,080 Speaker 1: ten percent, far below that, all three of those indexes 26 00:01:16,160 --> 00:01:19,840 Speaker 1: for when it comes to those sectors rather are actually 27 00:01:19,880 --> 00:01:21,640 Speaker 1: below five percent waiting in the index. So even though 28 00:01:21,640 --> 00:01:23,480 Speaker 1: they're doing well and they're outperforming, it's really not going 29 00:01:23,520 --> 00:01:26,119 Speaker 1: to move the needle that much. So American water Works 30 00:01:26,160 --> 00:01:28,440 Speaker 1: is one of the companies I was keeping a close 31 00:01:28,480 --> 00:01:31,360 Speaker 1: eye on, and that's a wk's the ticker symbol on 32 00:01:31,360 --> 00:01:34,880 Speaker 1: that up four percent, so on Paceports best day since 33 00:01:35,000 --> 00:01:37,400 Speaker 1: March seventh, and then another one would be Procter and 34 00:01:37,480 --> 00:01:40,520 Speaker 1: Gambles so PG the ticker symbol on that up more 35 00:01:40,560 --> 00:01:43,880 Speaker 1: than two percent, and then Coca Cola usually have to, 36 00:01:44,000 --> 00:01:46,839 Speaker 1: you know, warn Buffett's favorites of course, KO the ticker 37 00:01:46,880 --> 00:01:49,280 Speaker 1: symbol up more than three percent. So this really comes 38 00:01:49,320 --> 00:01:51,640 Speaker 1: on the back of the manufacturing and the retail sales 39 00:01:51,720 --> 00:01:54,400 Speaker 1: data that we had earlier this morning, and then also 40 00:01:54,480 --> 00:01:57,440 Speaker 1: kind of boosting the bets that we potentially could see 41 00:01:57,480 --> 00:01:59,800 Speaker 1: maybe two rate cuts if you're looking at the swaps 42 00:01:59,840 --> 00:02:02,000 Speaker 1: mart's right now, so you're seeing those dividen pairs that 43 00:02:02,280 --> 00:02:05,760 Speaker 1: had been underperforming the broader market this year, particularly since 44 00:02:05,800 --> 00:02:08,280 Speaker 1: the low back in April, starting to pick up some steam. 45 00:02:08,320 --> 00:02:11,040 Speaker 3: Here are these types of stocks typically seen as havens, 46 00:02:11,040 --> 00:02:12,200 Speaker 3: though they are. 47 00:02:12,400 --> 00:02:16,920 Speaker 1: What's interesting though, is utilities can It's almost like, because 48 00:02:16,919 --> 00:02:19,400 Speaker 1: of what happened with the AI play last year, you 49 00:02:19,480 --> 00:02:20,960 Speaker 1: kind of have to break it up because if you're 50 00:02:21,000 --> 00:02:24,280 Speaker 1: a data center business, you're viewed very differently, like a 51 00:02:24,360 --> 00:02:26,520 Speaker 1: vistress something like that. That would one of the best 52 00:02:26,520 --> 00:02:28,960 Speaker 1: performers in the S and P five hundred last year, 53 00:02:29,000 --> 00:02:31,840 Speaker 1: American water Works. I mean that's water utility type companies. 54 00:02:31,919 --> 00:02:34,000 Speaker 1: That's more of like when you think of haven type names. 55 00:02:34,040 --> 00:02:36,520 Speaker 1: I wouldn't say necessarily it's a like a safe haven 56 00:02:36,600 --> 00:02:39,000 Speaker 1: type trade. It's just you had so much of a 57 00:02:39,000 --> 00:02:40,280 Speaker 1: big bounce here. I mean, the S and P five 58 00:02:40,320 --> 00:02:43,400 Speaker 1: hundreds up close to nineteen percent since that April eighth 59 00:02:43,400 --> 00:02:46,760 Speaker 1: closing low. And if you looked at the Dividend Aristocrats 60 00:02:46,800 --> 00:02:48,680 Speaker 1: Index and the S and P five hundred, so those 61 00:02:48,680 --> 00:02:51,520 Speaker 1: are companies that have increased payouts for at least twenty 62 00:02:51,560 --> 00:02:54,280 Speaker 1: five straight years. That's actually up just ten percent in 63 00:02:54,320 --> 00:02:56,800 Speaker 1: that span. So you're seeing kind of these more unloved 64 00:02:56,800 --> 00:02:58,880 Speaker 1: corners starting to pick up steam. And that's some calls 65 00:02:58,880 --> 00:03:03,160 Speaker 1: that actually rating desks like City as well as JP Morgan. 66 00:03:03,200 --> 00:03:05,560 Speaker 1: They were thinking that small caps as well as maybe 67 00:03:05,600 --> 00:03:07,840 Speaker 1: hardware stocks and some of the durables might pick up 68 00:03:07,840 --> 00:03:09,760 Speaker 1: steam just in the short term. It wasn't like a 69 00:03:09,800 --> 00:03:11,920 Speaker 1: longer term play that money managers would use, but it 70 00:03:11,960 --> 00:03:13,800 Speaker 1: was one of those spots that they thought that they 71 00:03:13,800 --> 00:03:15,359 Speaker 1: could see a little bit of outperformance here in the 72 00:03:15,400 --> 00:03:16,200 Speaker 1: next couple of weeks. 73 00:03:16,400 --> 00:03:19,880 Speaker 4: In the longer term, it seemed like consumer staples companies 74 00:03:20,200 --> 00:03:22,240 Speaker 4: have been a good place to hide out from the 75 00:03:22,280 --> 00:03:26,680 Speaker 4: economic turmoil we could call it. But Walmart is down 76 00:03:26,760 --> 00:03:27,320 Speaker 4: a ton today. 77 00:03:27,320 --> 00:03:30,480 Speaker 1: Well, it's interesting about Walmart too, because that was trading 78 00:03:30,520 --> 00:03:32,840 Speaker 1: like a growth stock coming into this year. So if 79 00:03:32,840 --> 00:03:34,800 Speaker 1: you kind of think back to what happened when they 80 00:03:34,920 --> 00:03:38,360 Speaker 1: reported their results back in February, for the last three 81 00:03:38,400 --> 00:03:41,080 Speaker 1: months of twenty twenty four, that stock had been up 82 00:03:41,080 --> 00:03:43,640 Speaker 1: over seventy percent. The only two mag seven stocks that 83 00:03:43,680 --> 00:03:46,920 Speaker 1: outperformed it was Tesla and Nvidian that span. Then, of course, 84 00:03:46,920 --> 00:03:49,240 Speaker 1: it trimmed its guidance for this year and then you 85 00:03:49,280 --> 00:03:52,280 Speaker 1: come in and then report this morning. So there were 86 00:03:52,360 --> 00:03:54,360 Speaker 1: some bright spots for the first quarter, but that's more 87 00:03:54,400 --> 00:03:57,840 Speaker 1: backward looking. But you do have its chief financial officers 88 00:03:57,840 --> 00:04:01,000 Speaker 1: suggesting that those price hikes could come potentially as soon 89 00:04:01,000 --> 00:04:03,440 Speaker 1: as later this month. So some of it when you 90 00:04:03,480 --> 00:04:05,880 Speaker 1: think about Staples and Walmart, I mean, how much of 91 00:04:05,880 --> 00:04:09,080 Speaker 1: it is, you know, concerns about potential economy versus a 92 00:04:09,120 --> 00:04:12,840 Speaker 1: stock that had been really outperforming not just it's peers, 93 00:04:12,880 --> 00:04:15,040 Speaker 1: but some of these growth stocks. So it wasn't necessarily 94 00:04:15,080 --> 00:04:17,279 Speaker 1: trading like a staple stock or a value stock for 95 00:04:17,320 --> 00:04:19,039 Speaker 1: a while. It was trading more like a growth stock. 96 00:04:19,240 --> 00:04:20,960 Speaker 1: So that's something that when I'm talking to a lot 97 00:04:21,000 --> 00:04:23,280 Speaker 1: of money managers, they're still talking about. It just became 98 00:04:23,360 --> 00:04:26,320 Speaker 1: kind of an outside position in some portfolios earlier this year, 99 00:04:26,320 --> 00:04:27,600 Speaker 1: and that's when they started trimming it. 100 00:04:27,600 --> 00:04:29,479 Speaker 4: It's pairing losses. I said it was down a ton, 101 00:04:29,560 --> 00:04:31,360 Speaker 4: it was down as much as five percent, but it's 102 00:04:31,360 --> 00:04:33,720 Speaker 4: actually now down only point eight percent. 103 00:04:33,960 --> 00:04:36,279 Speaker 1: Yeah, and it's not because not all of the retailers 104 00:04:36,320 --> 00:04:39,200 Speaker 1: are housed in the staples sector. They're also in consumer 105 00:04:39,279 --> 00:04:42,479 Speaker 1: discretionary and that's one of the laggards today, but also 106 00:04:42,560 --> 00:04:44,720 Speaker 1: you have to point out that Tesla as well as 107 00:04:44,760 --> 00:04:48,320 Speaker 1: Amazon are both in that sector too, so weighing on discretionary. 108 00:04:47,880 --> 00:04:50,640 Speaker 3: Okay, before we let you go, Deer, John Deere, the 109 00:04:50,680 --> 00:04:53,280 Speaker 3: green trashre you're looking at that today. 110 00:04:53,120 --> 00:04:55,880 Speaker 1: Yes, Das the ticker symbol up about four percent actually 111 00:04:55,920 --> 00:04:58,520 Speaker 1: trading at records, so it's above five hundred dollars. It 112 00:04:58,560 --> 00:05:02,040 Speaker 1: actually had fallen and as much close to twenty percent 113 00:05:02,080 --> 00:05:04,680 Speaker 1: back in August. It's during the carried trade unwind here, 114 00:05:04,720 --> 00:05:07,479 Speaker 1: but that stock is jumping even despite a guidance cut 115 00:05:07,520 --> 00:05:10,240 Speaker 1: because management lowered its net income forecast by two percent 116 00:05:10,480 --> 00:05:12,760 Speaker 1: for this year, but that was actually nearly one percent 117 00:05:12,800 --> 00:05:17,200 Speaker 1: above consensus estimates on Wall Street. So even though you 118 00:05:17,279 --> 00:05:21,560 Speaker 1: have Dear being a net exporter, it still imports products 119 00:05:21,600 --> 00:05:23,880 Speaker 1: from Mexico and Europe. So people were watching that because 120 00:05:24,560 --> 00:05:27,600 Speaker 1: it's so closely tied to what happens with what farmers 121 00:05:27,600 --> 00:05:30,640 Speaker 1: are doing, as well as being the world's largest machinery maker, 122 00:05:30,680 --> 00:05:32,359 Speaker 1: so it's a big tell on the economy. So the 123 00:05:32,400 --> 00:05:35,400 Speaker 1: fact that it wasn't as bad as feared with the 124 00:05:35,520 --> 00:05:37,720 Speaker 1: ties to tariffs, that's why you're seeing that stock trading 125 00:05:37,720 --> 00:05:39,360 Speaker 1: at records, so that would bode well for the economy. 126 00:05:39,360 --> 00:05:44,160 Speaker 1: If you see a stock like that doing well. 127 00:05:42,600 --> 00:05:46,640 Speaker 2: The Stock mover's report from Bloomberg Radio. Check back with 128 00:05:46,720 --> 00:05:49,280 Speaker 2: us throughout the day for the latest roundup of companies 129 00:05:49,360 --> 00:05:52,440 Speaker 2: making news on Wall Street and for the latest market 130 00:05:52,480 --> 00:05:56,960 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 131 00:05:57,040 --> 00:06:00,400 Speaker 2: Bloomberg dot com, and on Applecarplay and and It Auto 132 00:06:00,480 --> 00:06:02,080 Speaker 2: with the Bloomberg Business app. 133 00:06:06,440 --> 00:06:06,840 Speaker 3: Mm hmm