WEBVTT - UPS Falls, Coca Cola Jumps, Hilton Drops

0:00:02.520 --> 0:00:07.360
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:08.520 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.440 --> 0:00:16.919
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:17.000 --> 0:00:19.319
<v Speaker 3>Also going on some stocks on the move, and we

0:00:19.400 --> 0:00:21.680
<v Speaker 3>want to get to that. We're joined by Bloomberg News

0:00:21.720 --> 0:00:25.720
<v Speaker 3>Equities reporter Natalia Kinny Javich. She joins us here in studio,

0:00:26.440 --> 0:00:28.720
<v Speaker 3>and we definitely had some stocks on the move. We

0:00:28.760 --> 0:00:30.680
<v Speaker 3>had some earnings after the closing bell. Where do you

0:00:30.720 --> 0:00:31.240
<v Speaker 3>want to start that.

0:00:31.680 --> 0:00:34.120
<v Speaker 4>Let's start with UPS. Guys. The ticket for that one

0:00:34.200 --> 0:00:39.240
<v Speaker 4>is UPS shares it down by six point six percent toity,

0:00:39.560 --> 0:00:44.760
<v Speaker 4>so the outlook for volume and margins disappointed investors. So

0:00:44.800 --> 0:00:47.680
<v Speaker 4>we know that the company decided to cut about half

0:00:47.720 --> 0:00:50.879
<v Speaker 4>of its volume coming from Amazon, which is a big client.

0:00:51.280 --> 0:00:53.600
<v Speaker 4>One of the reasons for that is because it's not

0:00:53.880 --> 0:00:58.240
<v Speaker 4>as profitable for UPS. Instead, the company wants to focus

0:00:58.280 --> 0:01:03.640
<v Speaker 4>on segments like industrials, healthcare. But the issue here is

0:01:03.640 --> 0:01:07.119
<v Speaker 4>that growth across all those segments is not there yet

0:01:07.160 --> 0:01:10.520
<v Speaker 4>because that segment of the US economy is not doing

0:01:10.600 --> 0:01:14.679
<v Speaker 4>that well. So we also know that UPS is trying

0:01:14.680 --> 0:01:18.679
<v Speaker 4>to cut costs. Labor is unionized, which is not the

0:01:18.720 --> 0:01:22.240
<v Speaker 4>case for FedEx It's competitors, and twenty twenty three contract

0:01:22.280 --> 0:01:24.679
<v Speaker 4>also was like a big increase in costs for labor

0:01:25.000 --> 0:01:25.760
<v Speaker 4>for ups.

0:01:25.959 --> 0:01:26.960
<v Speaker 1>What about Coca Cola.

0:01:27.240 --> 0:01:29.679
<v Speaker 4>So Coca Cola, Yes, it is an interesting story. The

0:01:29.680 --> 0:01:34.160
<v Speaker 4>stock is up by five percent today comparable earnings for

0:01:34.280 --> 0:01:38.240
<v Speaker 4>share and organic sales for the second quarta bit consensus expectations.

0:01:38.280 --> 0:01:41.640
<v Speaker 4>We see that volume was really strong here in the

0:01:41.720 --> 0:01:44.960
<v Speaker 4>United States. Of course, the volume was up thanks to

0:01:45.640 --> 0:01:49.200
<v Speaker 4>the World Cup, of course, and overall. When I spoke

0:01:49.240 --> 0:01:52.240
<v Speaker 4>with couple analysts about bigger trends, what is next for

0:01:52.320 --> 0:01:56.680
<v Speaker 4>Coca Cola, they said that, first of all, we see

0:01:56.680 --> 0:02:00.000
<v Speaker 4>that there is a big trend for health related stuff

0:02:00.320 --> 0:02:04.600
<v Speaker 4>because many companies that produce beverages they put like protein,

0:02:04.720 --> 0:02:08.440
<v Speaker 4>they put like energy components into those drinks, which is

0:02:08.440 --> 0:02:10.480
<v Speaker 4>not the case for Coca Cola. Seventy five percent of

0:02:10.480 --> 0:02:12.120
<v Speaker 4>those sales are coming from soda.

0:02:12.400 --> 0:02:14.040
<v Speaker 3>Yeah, exactly, why are you smiling?

0:02:14.160 --> 0:02:17.040
<v Speaker 1>Let's Coca Cola people wouldn't are the people out there

0:02:17.040 --> 0:02:19.520
<v Speaker 1>who would say that's not necessarily helthfood? No, but they.

0:02:19.600 --> 0:02:24.320
<v Speaker 3>Bore for years, have brought their portfolio water into other

0:02:24.560 --> 0:02:27.720
<v Speaker 3>water and other other things. Let's go to Hilton tickers

0:02:27.840 --> 0:02:28.840
<v Speaker 3>HLT exactly.

0:02:28.919 --> 0:02:31.959
<v Speaker 4>So shares are down by almost three percent. Here's the

0:02:32.000 --> 0:02:34.200
<v Speaker 4>story for Hilton. So on the one hand, we saw

0:02:34.280 --> 0:02:37.920
<v Speaker 4>that demand was good in the second quarter immediately in

0:02:37.960 --> 0:02:41.600
<v Speaker 4>the US. Again, maybe we can we should like attribute

0:02:41.639 --> 0:02:43.880
<v Speaker 4>it to the World Cup. The Middle East was a

0:02:43.880 --> 0:02:47.320
<v Speaker 4>big disappointment. Down is revenue pre available room was down

0:02:47.360 --> 0:02:50.800
<v Speaker 4>by about thirty percent over there. But one of the

0:02:50.840 --> 0:02:53.079
<v Speaker 4>reasons why the stock is down, when I spoke with

0:02:53.160 --> 0:02:56.840
<v Speaker 4>couple analysts, it's not because Hilton expects travel volume to

0:02:56.919 --> 0:02:59.280
<v Speaker 4>go down. It's because the stock just has become so.

0:02:59.280 --> 0:03:02.720
<v Speaker 3>Much more expand Ah, that makes sense. I totally get that.

0:03:02.800 --> 0:03:04.359
<v Speaker 3>All right, some stocks on the move. We want to

0:03:04.360 --> 0:03:07.920
<v Speaker 3>add a couple to it. Ford is up about six

0:03:07.960 --> 0:03:11.079
<v Speaker 3>percent here in the after market. Company coming out with

0:03:11.120 --> 0:03:14.880
<v Speaker 3>their earnings after the closing bell, Ford posted earnings ahead

0:03:14.880 --> 0:03:16.959
<v Speaker 3>of Wall Street estimates. They raise their outlook for the

0:03:17.040 --> 0:03:19.480
<v Speaker 3>year on higher prices and strong sales of high margin

0:03:19.800 --> 0:03:22.480
<v Speaker 3>sport utility vehicles. They now expect to earn as much

0:03:22.480 --> 0:03:25.520
<v Speaker 3>as eleven billion before interest in taxes this year, up

0:03:25.560 --> 0:03:27.960
<v Speaker 3>from its prior forecast team for eight and a half

0:03:27.960 --> 0:03:30.320
<v Speaker 3>billion to ten point five billion. Yeah. So investors are

0:03:30.360 --> 0:03:32.840
<v Speaker 3>noticing it again. Stock up six percent in the after market.

0:03:32.880 --> 0:03:34.920
<v Speaker 1>Are you're watching Ford in the after hours? I got

0:03:34.920 --> 0:03:37.800
<v Speaker 1>my eye on what's happening with Visa. Shares down about

0:03:37.840 --> 0:03:41.360
<v Speaker 1>two percent in the after hours. The company reported fiscal

0:03:41.480 --> 0:03:44.720
<v Speaker 1>third quarter profit that beat Wall Street estimates. This just

0:03:44.840 --> 0:03:47.400
<v Speaker 1>hours after the company told staff that it will eliminate

0:03:47.480 --> 0:03:50.440
<v Speaker 1>roughly twenty six hundred jobs. Visa did say it's taking

0:03:50.440 --> 0:03:52.960
<v Speaker 1>a five hundred and sixty three million dollar charge as

0:03:52.960 --> 0:03:55.200
<v Speaker 1>a result of the job cuts. It affects seven percent

0:03:55.560 --> 0:03:58.240
<v Speaker 1>of their workforce. Suggested net income, though for the three

0:03:58.280 --> 0:04:00.480
<v Speaker 1>months through June, rose eight percent from a year ago.

0:04:00.840 --> 0:04:04.000
<v Speaker 1>That topped the three dollars and twenty three cent average

0:04:04.040 --> 0:04:07.520
<v Speaker 1>analyst to vestiments surveyed by Bloomberg. Three point thirty two

0:04:07.520 --> 0:04:09.640
<v Speaker 1>a share was adjusted net income.

0:04:11.480 --> 0:04:15.720
<v Speaker 2>The Stockmovers report from Bloomberg Radio. Check back with us

0:04:15.760 --> 0:04:18.560
<v Speaker 2>throughout the day for the latest roundup of companies making

0:04:18.640 --> 0:04:22.240
<v Speaker 2>news on Wall Street and for the latest market moving headlines.

0:04:22.440 --> 0:04:26.479
<v Speaker 2>Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg

0:04:26.520 --> 0:04:29.599
<v Speaker 2>dot com, and on Applecarplay and Android Auto with the

0:04:29.600 --> 0:04:31.000
<v Speaker 2>Bloomberg Business app.