WEBVTT - Caterpillar Drops, Starbucks Tumbles, Snap Drops on Ad Warning

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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>take a look at some of the stocks on the

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<v Speaker 2>move today.

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<v Speaker 1>We're joined by bloombergs Isabell Lee Isabelle.

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<v Speaker 2>What are you looking at?

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<v Speaker 1>Caterpillar? So we have the stock seeing some pressure. Now

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<v Speaker 1>it's edging slightly lower by just two tenths of one percent.

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<v Speaker 1>So here's another company that presented dual outcomes. So first,

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<v Speaker 1>Caterpillar said they expect slightly lower sales this year if

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<v Speaker 1>tariffs remain in place and the economy dips into a

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<v Speaker 1>recession in the second half. So this guidance came in

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<v Speaker 1>line with previous expectations. The second one is without tariff,

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<v Speaker 1>so the company said profit would be at the top

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<v Speaker 1>end of that range, would sales little change from last year.

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<v Speaker 1>So for the quarter, the company posted earnings that fell

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<v Speaker 1>short of estimates. So Caterpillar is a bell weather for

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<v Speaker 1>the health of the economy. I mean, it's uncertainty to

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<v Speaker 1>really just cost some angst in Wall Street, because if

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<v Speaker 1>you're struggling to forecast what demand might look like for

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<v Speaker 1>the rest of the year, and you're a heavy equipment

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<v Speaker 1>equipment maker, then that just makes it harder for the

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<v Speaker 1>rest of us.

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<v Speaker 2>Yeah. Absolutely, Starbucks down seven percent, but well off the loads.

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<v Speaker 1>Of the session in an overnight trading as well. Everyone.

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<v Speaker 1>Since we got that consumer data, the spending done and

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<v Speaker 1>income data, things have been recovering a bit, recovering a bit.

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<v Speaker 1>I think the word for Starbucks is really progress. So

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<v Speaker 1>we have the CEO saying that the coffee chain is

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<v Speaker 1>making progress and reviving growth, but of course flagging sales

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<v Speaker 1>in the latest quarter is really adding to the pressure.

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<v Speaker 1>We have the new Wish CEO, Brian Nicol saying, point black,

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<v Speaker 1>the results were disappointing, but he said under the hood,

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<v Speaker 1>we're seeing progress and we know that. Ever since he

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<v Speaker 1>took the helm in September last year, he's made some changes.

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<v Speaker 1>He's streamlined the menu. He's made sure that there won't

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<v Speaker 1>be any long lines, especially if you order in store,

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<v Speaker 1>because I think for a while it was the people

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<v Speaker 1>ordering online that we're getting their priority. But still a

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<v Speaker 1>fun fact or not so fun fact is from September

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<v Speaker 1>last year to now, the stock has edged lower by

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<v Speaker 1>fifteen percent, but still maybe it's too early to judge.

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<v Speaker 1>We have Morgan Stanley, Ram and Jimsuisquihana, though cutting their price.

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<v Speaker 2>Targets double short mocha.

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<v Speaker 1>That's my that's your favorite? Was there like chocolate sauce

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<v Speaker 1>on that? Yes? I think basically hot chocolate with a

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<v Speaker 1>couple of shots espresso.

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<v Speaker 2>It's basically how about you? Do you have a go

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<v Speaker 2>to order as well?

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<v Speaker 1>I like Cafe Mocha. So I know some people they

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<v Speaker 1>like to snub Starbucks, but I like Starbucks because all

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<v Speaker 1>over the world it tastes the same. Yes, I get

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<v Speaker 1>it tastes the same. Yes, yea, no matter where you are.

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<v Speaker 1>That's if I do something.

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<v Speaker 2>I'll do that all right?

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<v Speaker 1>Uh Snap Snap shares are edging lower by sixteen percent,

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<v Speaker 1>that's them sins at least August, so they narrowly beat

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<v Speaker 1>revenue estimates, but they declined to issue a sales forecast,

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<v Speaker 1>so again, like many others, they cite macroeconomic headwinds and

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<v Speaker 1>the acts again in Wall Street, was evident. We have

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<v Speaker 1>Morgan Stanley saying that their decision to pull their guidance

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<v Speaker 1>this early speaks to how business is slightly in worse

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<v Speaker 1>shape than previously thought. So that's a little bit of

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<v Speaker 1>a strong word there. We have Goggenheimer and James City

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<v Speaker 1>cutting their price targets. But it's not just snap. I

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<v Speaker 1>mean many companies are really just struggling how to make

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<v Speaker 1>sense of this environment. Porsche warned of shrinking profit margins.

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<v Speaker 1>Jet Bluepool that's full your outlook in GM with your

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<v Speaker 1>earnings guidance so to becoming a trend.

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<v Speaker 2>The Stockmovers podcast from Bloomberg Radio. Check back with us

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<v Speaker 2>news on Wall Street and for the latest market moving headlines.

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