WEBVTT - Capital One Sinks, UnitedHealth Drops, Shake Shack Slips on Weak Forecast

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

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

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<v Speaker 2>the stock market. Harnessing the power of Bloomberg Data.

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<v Speaker 1>Let's bring in normal in DA Bloomberg Television Markets correspondent

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<v Speaker 1>for look at some stocks on the move today, Nora,

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<v Speaker 1>what do you have, Well, we've been.

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<v Speaker 3>Looking at financial stocks. They are the worst performing sector

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<v Speaker 3>in the S and P five hundred, and of course

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<v Speaker 3>that's largely due to the fact that we did get

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<v Speaker 3>news that President Donald Trump is calling on credit card

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<v Speaker 3>companies to cap interest rates at ten percent for a

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<v Speaker 3>year now. This deadline is for next Tuesday, January twentieth,

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<v Speaker 3>And this has really been a bipartisan issue. We've been

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<v Speaker 3>seeing both sides of the isleverally pushing to crack down

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<v Speaker 3>on a lot of these credit card companies, especially given

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<v Speaker 3>the fact that a lot of card interest rates are

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<v Speaker 3>hovering above twenty percent over the past few years. But

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<v Speaker 3>there are concerns from a lot of experts who are

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<v Speaker 3>coming out essentially saying that this could potentially wipe out

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<v Speaker 3>earnings from cards for a year, and it could potentially

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<v Speaker 3>incentivize some of these companies to stop lending at the

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<v Speaker 3>caliber that they have thus far right now.

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<v Speaker 1>Yeah, and of course we have JP Morgan kicking off

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<v Speaker 1>bank earnings tomorrow, so it's going to be really interesting

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<v Speaker 1>to hear what CEOs say about these.

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<v Speaker 2>Credit card caps.

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<v Speaker 1>Nora, what else is on your radar?

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<v Speaker 3>Well, I'm also looking at shares of United Health. This

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<v Speaker 3>is taker you in h We're seeing shares that are

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<v Speaker 3>slipping about one point four percent right now as we speak.

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<v Speaker 3>Earlier down as much as two point nine percent. This is,

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<v Speaker 3>of course, after the Wall Street Journal reported that a

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<v Speaker 3>Senate committee is investigating the company's practices that found at

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<v Speaker 3>the company deployed quote unquote aggressive tactics to collect payment

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<v Speaker 3>boosting diagnoses for its Medicare advantage members. So you are

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<v Speaker 3>really seeing this weighing on shares as investors are really

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<v Speaker 3>trying to figure out what the potential implications of this

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<v Speaker 3>could be. I mean, this is a stock that's really

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<v Speaker 3>been battered. I mean it's had three back to back

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<v Speaker 3>years of declines. If you take a look at the

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<v Speaker 3>share action. Just last year, we saw the stock fell

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<v Speaker 3>thirty five percent for twenty twenty five. So we'll just

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<v Speaker 3>have to see whether or not this company is able

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<v Speaker 3>to really eke out a turnaround story.

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<v Speaker 1>Yeah, in need of a turnaround story for sure. What

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<v Speaker 1>about the third one?

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<v Speaker 3>Yes, looking at the consumer space, So restaurants, shake shack

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<v Speaker 3>is where I've got my eyes right now, let's take

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<v Speaker 3>our shack shak. We're seeing shares hire by about four

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<v Speaker 3>percent right now as we speak. This is after the

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<v Speaker 3>company report of preliminary fourth quarter sales that were below

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<v Speaker 3>Wall Street estimates. But we are still seeing shares hire

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<v Speaker 3>as investors are really trying to figure out what are

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<v Speaker 3>some of the tailwinds here. I mean, they did to

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<v Speaker 3>today expect sales to expand by low single digits in

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<v Speaker 3>twenty twenty six. That's compared to analyst expectations for two

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<v Speaker 3>point four percent growth. But they did also mention that

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<v Speaker 3>they planned to open ninety five to one hundred and

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<v Speaker 3>five company operated and license locations this year.

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