WEBVTT - American Eagle Outfitters Drops, Cboe Falls, Super Micro Computer Gains on DataVolt Pact

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The Stock Movers podcast,

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<v Speaker 1>your roundup of companies making moves in the stock market.

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<v Speaker 1>Harnessing the power of Bloomberg data.

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<v Speaker 2>Right now, let's get a sense of what's going on

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<v Speaker 2>with the stock market. As John Tucker reported, we do

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<v Speaker 2>have a little bit of a lift here today. Let's

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<v Speaker 2>take a look at some stocks on the move today.

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<v Speaker 2>I'm Paul Sweeney along with Alex Steele. I'm're joined by

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<v Speaker 2>Bloombergs and Italia Kenyan Javich Tali. What are you looking at?

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<v Speaker 3>Let's start the guys with Retailer's American Eagle out. As

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<v Speaker 3>the stock is down by more than seven percent, The

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<v Speaker 3>company with drew guidence for the full year. They also

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<v Speaker 3>said that there is a charge of about seventy five

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<v Speaker 3>million related to it down right down of spring and

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<v Speaker 3>summer merchandise. So basically this is a preliminary earnings result.

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<v Speaker 3>They will post full results at the end of May.

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<v Speaker 3>Of course, when it comes to guidance. The company blamed Macrican.

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<v Speaker 3>I'm a concertainty and as for this huge write down,

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<v Speaker 3>I spoke with couple analysts and potentially the main reason

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<v Speaker 3>they either bought stuff that they were not able to

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<v Speaker 3>sell because it was just like the wrong choice. Or

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<v Speaker 3>since we know that American Eagle is a value player,

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<v Speaker 3>potentially customers are looking for better deals. And again it

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<v Speaker 3>could be a sign of a cautious US consumer. But anyway,

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<v Speaker 3>it was a big miss, and potentially we may see

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<v Speaker 3>that all that those inventory will go to discounters like

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<v Speaker 3>TJ Max and the company itself is doing right now

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<v Speaker 3>a massive sale on website. I don't know, well if

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<v Speaker 3>we should check it out. I'm a teach girl, man,

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<v Speaker 3>I'm a tej girl. I gotta stay loyal on that front.

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<v Speaker 3>Oh yeah, you crazy, that's the best I first, like

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<v Speaker 3>most of my house at home. Guns, I'm okay. What

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<v Speaker 3>else you're looking at? Yes? Looking at shares of CBOE

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<v Speaker 3>Global Markets. So yes, we see that. Morgan Stanley the

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<v Speaker 3>downgraded the company and they said, of course that the

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<v Speaker 3>escalation of US and China trade war came sooner and

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<v Speaker 3>better than expected. Earlier they upgraded the stock citing higher volatility.

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<v Speaker 3>We know that when volatility is high, people are trading

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<v Speaker 3>options more. It can be more beneficial for companies life Sybo.

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<v Speaker 3>So now it's a reversal of this trend and they

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<v Speaker 3>cut the price target to two hundred and fifteen from

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<v Speaker 3>two hundred and fifty six. And of course we are

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<v Speaker 3>keeping it out on vix, which is way below twenty

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<v Speaker 3>for the first time since I know, a couple of

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<v Speaker 3>weeks and months.

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<v Speaker 2>Interesting, okay, I used to trade with the Sibo back

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<v Speaker 2>in the day. Super Micro computer.

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<v Speaker 1>That sounds like a big name.

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<v Speaker 3>It is, so we see that it's also a big

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<v Speaker 3>move in the stock price. It's up by almost thirteen percent.

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<v Speaker 3>It came, of course, after this deal with Saudi Arabia.

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<v Speaker 3>Saudi Arabian data center company Data Vault signed a partnership

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<v Speaker 3>with super Micro. The deal is valued at twenty billion dollars.

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<v Speaker 3>We don't know all details of the deal, but basically

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<v Speaker 3>super Micro biased chips from Nvidia, They build infrastructure and

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<v Speaker 3>then they sell to data centers. We don't know if

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<v Speaker 3>Data Vault will be building those data centers here in

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<v Speaker 3>the United States or in Saudi Arabia. But for many analysts,

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<v Speaker 3>questions still remain about demand for power, demand for AI infrastructure.

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<v Speaker 3>But as of today, it is a pretty good development

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<v Speaker 3>that the stock is up sharply.

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<v Speaker 1>The Stock Movers podcast from Bloomberg Radio check Back with

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