WEBVTT - Eli Lilly Slumps, Walmart Falls, Ford Drops on Farley Comments

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers podcast, your roundup of companies making moves in

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<v Speaker 2>the stock market. Harnessing the power of Bloomberg data. Let's

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<v Speaker 2>see what the action is under the hood.

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<v Speaker 1>We do that with Isabel Lee al Sassite, reporter for

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<v Speaker 1>Bloomberg News.

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<v Speaker 2>She joins us here in our studio is about what

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<v Speaker 2>are you looking at?

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<v Speaker 1>I'm looking at Eli Lilly so shares our edging lower

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<v Speaker 1>by almost five percent. So Trump has long promised that

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<v Speaker 1>his tariffs and pharmaceutical drugs will be coming soon, and

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<v Speaker 1>it is coming soon. This is the latest signal that

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<v Speaker 1>he really plans to press ahead with those sectoral tariffs

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<v Speaker 1>despite this really huge market follout. I believe it's more

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<v Speaker 1>than ten trillion in the past four days. So Trump

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<v Speaker 1>believed that tariffs will encourage parma giants to produce more

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<v Speaker 1>in the US, and he's confident that they will come

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<v Speaker 1>back because the US is the biggest market. But again,

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<v Speaker 1>the lack of information makes any assessment really difficult. That's

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<v Speaker 1>according to Bloomberg intelligence and implementation could take time. And

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<v Speaker 1>also the generics which are mostly made overseas, I mean

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<v Speaker 1>that may effect prices too, and if you're hard on money,

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<v Speaker 1>you usually go to the generic. Oh yeah, well I

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<v Speaker 1>go to the generics anyway. I mean one dollar drug

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<v Speaker 1>is better than three hundred for sure, and medical devices

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<v Speaker 1>too would get hit from that end as well. All right,

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<v Speaker 1>let's go to Walmart here. So I was surprised that

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<v Speaker 1>they reaffirm their outlook despite all the uncertainty exactly. So

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<v Speaker 1>it was higher by around five percent. Its paired back

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<v Speaker 1>some of those games, but still up by around three

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<v Speaker 1>point three percent. So they did reiterate their guidance despite

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<v Speaker 1>the barrage of tariffs and weakening consumer sentiment. And it

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<v Speaker 1>really just highlights how this the world's largest retailer, basically

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<v Speaker 1>is confident that it can navigate economic uncertainty. So Walmart

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<v Speaker 1>said that it's seeing net sales growing three to four

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<v Speaker 1>percent this year. So the forecast accounts for tariffs, unlike

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<v Speaker 1>its previous outlook in February. And Walmart is really seen

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<v Speaker 1>as a barometer for a consumer sentiment. I mean, it's

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<v Speaker 1>really due to its sheer size and exposure to a

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<v Speaker 1>broad swath of US consumers. And they said they plan

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<v Speaker 1>to absorb potential price hikes and they plan to keep

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<v Speaker 1>their products affordable. We do have da Davids and analysts

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<v Speaker 1>saying that at this colde squeeze profit in the near term.

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<v Speaker 1>But still Walmart has actually performed historically better during economic downturns. Yeah, okay,

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<v Speaker 1>they can deal with the mom and pops shop owner.

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<v Speaker 2>I'm not sure. Yeah, boid they vote too So again

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<v Speaker 2>the politics, this is lost on me. What else you

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<v Speaker 2>got Ford?

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<v Speaker 1>So Ford is edging lower and now actually it's down

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<v Speaker 1>by around one percent. It's we're seeing a lot more

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<v Speaker 1>pressure there. We have Burnstein downgrading the stock to underperform

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<v Speaker 1>from market perform with a price target of seven dollars.

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<v Speaker 1>Bernstein said that there's significant downside for the stock that's

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<v Speaker 1>not priced in by the markets. I really feel like

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<v Speaker 1>these automakers are just getting hit day by day. So

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<v Speaker 1>the analyst Daniel Rosca says the tariff's impact for just

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<v Speaker 1>as consumer sentiment wains, so he says that this is

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<v Speaker 1>really going to have more downside. But Ford still has

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<v Speaker 1>five buys, thirteen holes, and eight celerating.

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