1 00:00:02,520 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:17,040 --> 00:00:19,279 Speaker 1: I'm Jim Stadebeck along with Carol Masser. Let's take a 5 00:00:19,320 --> 00:00:21,360 Speaker 1: look at some stocks on the move today. We're joined 6 00:00:21,360 --> 00:00:25,360 Speaker 1: by Bloomberg News process at reporter Denizza Sokova, Denitza Watts. 7 00:00:25,520 --> 00:00:27,800 Speaker 3: Are you watching If you think it's a rough day 8 00:00:27,800 --> 00:00:30,800 Speaker 3: for stocks, look at Funny and Freddy. They were down 9 00:00:30,800 --> 00:00:33,839 Speaker 3: as much as twenty two and sixteen percent. The tickers, 10 00:00:33,880 --> 00:00:39,040 Speaker 3: of course are FNMA, FMCC. It's been a really tough 11 00:00:39,080 --> 00:00:42,600 Speaker 3: stretch for those companies. They're down about seventy percent in 12 00:00:42,600 --> 00:00:45,120 Speaker 3: the last six months. There was so much support from 13 00:00:45,120 --> 00:00:49,760 Speaker 3: the White House and stock investors mentioned met this with 14 00:00:49,880 --> 00:00:52,440 Speaker 3: a lot of enthusiasm. Of course, people were expecting after 15 00:00:52,479 --> 00:00:56,000 Speaker 3: the election that the White House would take steps to 16 00:00:56,040 --> 00:00:59,480 Speaker 3: release the company from government control. Trump of course tweeted 17 00:00:59,520 --> 00:01:01,640 Speaker 3: that they want take the company public. But we haven't 18 00:01:01,680 --> 00:01:04,400 Speaker 3: heard anything for a very long time, and investors are 19 00:01:04,520 --> 00:01:09,720 Speaker 3: not reacting quite well to this. Everyone's worried about housing affordability. 20 00:01:09,800 --> 00:01:12,200 Speaker 3: Mid terms are coming. You probably don't want to take 21 00:01:12,240 --> 00:01:14,840 Speaker 3: those companies public in a time where people are so 22 00:01:14,880 --> 00:01:18,319 Speaker 3: conscious about mortgage prices, and perhaps that's one of the 23 00:01:18,400 --> 00:01:20,440 Speaker 3: reasons we're seeing this. And of course we have a 24 00:01:20,920 --> 00:01:23,120 Speaker 3: war in Iran, so the administration has a lot of 25 00:01:23,160 --> 00:01:24,120 Speaker 3: other things to deal with. 26 00:01:24,400 --> 00:01:26,800 Speaker 4: I also keep wondering this gets to this argument should 27 00:01:26,840 --> 00:01:29,360 Speaker 4: these They've always been quasi public and they've gone back 28 00:01:29,360 --> 00:01:31,840 Speaker 4: and forth here, but you know, if this is something 29 00:01:32,200 --> 00:01:34,000 Speaker 4: like should they be public entities? And I think we've 30 00:01:34,000 --> 00:01:36,880 Speaker 4: talked with Chris Whalen about this that says probably not, 31 00:01:37,120 --> 00:01:40,520 Speaker 4: I think is what has been his argument. But yeah, 32 00:01:40,600 --> 00:01:43,000 Speaker 4: really getting bumped up and banged around. 33 00:01:43,080 --> 00:01:47,319 Speaker 1: A couple way here on my list. 34 00:01:46,360 --> 00:01:51,720 Speaker 4: Don't ticker fn M A and fre Yes, Okay, just 35 00:01:51,720 --> 00:01:55,080 Speaker 4: got to remember. Okay, let's go to Micron. This is 36 00:01:55,080 --> 00:01:57,920 Speaker 4: something we talked about certainly after the close a lot yesterday, 37 00:01:57,960 --> 00:01:59,640 Speaker 4: but we continue in today's session. Two. 38 00:02:00,040 --> 00:02:01,800 Speaker 3: Yeah, I have one more decliner and that is in 39 00:02:01,840 --> 00:02:06,760 Speaker 3: the Micron actually a pretty strong earnings report. Nevertheless, everyone 40 00:02:06,760 --> 00:02:10,560 Speaker 3: cares about the costs. They're spending heavy on production, a 41 00:02:10,560 --> 00:02:14,280 Speaker 3: lot heavier than investors were expecting. Capital spending will exceed 42 00:02:14,320 --> 00:02:17,720 Speaker 3: twenty five billion this fiscal year. Analysts, we're expecting about 43 00:02:17,760 --> 00:02:20,880 Speaker 3: twenty two billion, so pretty big gap. And clearly this 44 00:02:20,960 --> 00:02:22,960 Speaker 3: is a company that has been sowing for a very 45 00:02:23,000 --> 00:02:26,160 Speaker 3: long time. The ticker is m you it has risen 46 00:02:26,400 --> 00:02:31,840 Speaker 3: sixty two percent going into this report, so incredible, incredible rally. 47 00:02:31,919 --> 00:02:35,080 Speaker 3: But Micron sales are very strong. They expected to keep sowing, 48 00:02:35,360 --> 00:02:38,760 Speaker 3: but memory prices have also been sowing, and clearly that's 49 00:02:38,760 --> 00:02:41,919 Speaker 3: putting a lot of tension even at a company that's 50 00:02:41,960 --> 00:02:43,280 Speaker 3: like one of investor's favorites. 51 00:02:43,400 --> 00:02:45,959 Speaker 4: Listen, it's great for margins, right, but you've got to 52 00:02:46,000 --> 00:02:48,520 Speaker 4: meet that demand. So that's why they're increasing probably their 53 00:02:48,560 --> 00:02:51,240 Speaker 4: cap X. But it's like, Okay, great job, I love 54 00:02:51,280 --> 00:02:52,959 Speaker 4: the numbers, but why do you have to spend so much? 55 00:02:53,000 --> 00:02:55,639 Speaker 4: But like it's it's chicken or the egg, Like you 56 00:02:55,720 --> 00:02:57,600 Speaker 4: got a bill to be able to meet supply. But 57 00:02:57,840 --> 00:03:00,960 Speaker 4: there's always that concern of overbuilding, right, and then as we. 58 00:03:00,880 --> 00:03:04,160 Speaker 1: Know these exactly where are we in the cycle comes 59 00:03:04,200 --> 00:03:06,440 Speaker 1: to when the stuff gets online and how much will 60 00:03:06,440 --> 00:03:07,880 Speaker 1: people be willing to pay? And you know, given that 61 00:03:07,919 --> 00:03:10,920 Speaker 1: there's only like three providers including Micron, that do this, 62 00:03:11,000 --> 00:03:13,760 Speaker 1: they're in a pretty good position when it comes to Yeah, 63 00:03:13,800 --> 00:03:14,880 Speaker 1: supplying that demand. 64 00:03:15,120 --> 00:03:17,600 Speaker 3: Yeah, but the balance is hard. The innovation were suspending. 65 00:03:17,639 --> 00:03:18,320 Speaker 3: It's always hard. 66 00:03:18,480 --> 00:03:20,680 Speaker 4: Yeah, investors are not always happy. I felt like for 67 00:03:20,680 --> 00:03:22,240 Speaker 4: a while we were fined on the spend, and then 68 00:03:22,280 --> 00:03:25,920 Speaker 4: it was like, no so much. Let's got a darden restaurants. 69 00:03:25,960 --> 00:03:28,680 Speaker 3: Yeah, we're going to talk about food and Olive Gardens. 70 00:03:28,720 --> 00:03:31,919 Speaker 3: They're having some promotion buy one, get one, and it's 71 00:03:31,919 --> 00:03:34,680 Speaker 3: working out pretty well. The company is now having a 72 00:03:34,720 --> 00:03:37,839 Speaker 3: small game, but in earlier trading it jumped as much 73 00:03:37,880 --> 00:03:43,000 Speaker 3: as three percent. The Darten now expects Fisco twenty twenty 74 00:03:43,040 --> 00:03:44,960 Speaker 3: six same store sales to grow about four and a 75 00:03:45,000 --> 00:03:48,680 Speaker 3: half percent. This is much higher than what they previously saw. 76 00:03:49,440 --> 00:03:53,000 Speaker 3: The positive outlook is for Olive Garden. That's where a 77 00:03:53,040 --> 00:03:55,560 Speaker 3: lot of the support is coming. Some interesting things. They 78 00:03:55,560 --> 00:03:59,720 Speaker 3: introduced those lighter portion menules that offer smaller, cheapen meals. 79 00:04:00,080 --> 00:04:02,080 Speaker 3: That's not working so well for their margins, so some 80 00:04:02,160 --> 00:04:07,120 Speaker 3: pressure there. Perhaps we'll leave ones right Yeah really, yeah, 81 00:04:07,120 --> 00:04:09,320 Speaker 3: I are so, but it didn't work. I didn't know 82 00:04:09,520 --> 00:04:12,760 Speaker 3: it's not working well Italy. 83 00:04:18,160 --> 00:04:22,160 Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with 84 00:04:22,240 --> 00:04:24,840 Speaker 2: us throughout the day for the latest roundup of companies 85 00:04:24,880 --> 00:04:28,000 Speaker 2: making news on Wall Street and for the latest market 86 00:04:28,040 --> 00:04:32,520 Speaker 2: moving headlines. 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