Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: I'm Jim Stadebeck along with Carol Masser. Let's take a
Speaker 1: look at some stocks on the move today. We're joined
Speaker 1: by Bloomberg News process at reporter Denizza Sokova, Denitza Watts.
Speaker 3: Are you watching If you think it's a rough day
Speaker 3: for stocks, look at Funny and Freddy. They were down
Speaker 3: as much as twenty two and sixteen percent. The tickers,
Speaker 3: of course are FNMA, FMCC. It's been a really tough
Speaker 3: stretch for those companies. They're down about seventy percent in
Speaker 3: the last six months. There was so much support from
Speaker 3: the White House and stock investors mentioned met this with
Speaker 3: a lot of enthusiasm. Of course, people were expecting after
Speaker 3: the election that the White House would take steps to
Speaker 3: release the company from government control. Trump of course tweeted
Speaker 3: that they want take the company public. But we haven't
Speaker 3: heard anything for a very long time, and investors are
Speaker 3: not reacting quite well to this. Everyone's worried about housing affordability.
Speaker 3: Mid terms are coming. You probably don't want to take
Speaker 3: those companies public in a time where people are so
Speaker 3: conscious about mortgage prices, and perhaps that's one of the
Speaker 3: reasons we're seeing this. And of course we have a
Speaker 3: war in Iran, so the administration has a lot of
Speaker 3: other things to deal with.
Speaker 4: I also keep wondering this gets to this argument should
Speaker 4: these They've always been quasi public and they've gone back
Speaker 4: and forth here, but you know, if this is something
Speaker 4: like should they be public entities? And I think we've
Speaker 4: talked with Chris Whalen about this that says probably not,
Speaker 4: I think is what has been his argument. But yeah,
Speaker 4: really getting bumped up and banged around.
Speaker 1: A couple way here on my list.
Speaker 4: Don't ticker fn M A and fre Yes, Okay, just
Speaker 4: got to remember. Okay, let's go to Micron. This is
Speaker 4: something we talked about certainly after the close a lot yesterday,
Speaker 4: but we continue in today's session. Two.
Speaker 3: Yeah, I have one more decliner and that is in
Speaker 3: the Micron actually a pretty strong earnings report. Nevertheless, everyone
Speaker 3: cares about the costs. They're spending heavy on production, a
Speaker 3: lot heavier than investors were expecting. Capital spending will exceed
Speaker 3: twenty five billion this fiscal year. Analysts, we're expecting about
Speaker 3: twenty two billion, so pretty big gap. And clearly this
Speaker 3: is a company that has been sowing for a very
Speaker 3: long time. The ticker is m you it has risen
Speaker 3: sixty two percent going into this report, so incredible, incredible rally.
Speaker 3: But Micron sales are very strong. They expected to keep sowing,
Speaker 3: but memory prices have also been sowing, and clearly that's
Speaker 3: putting a lot of tension even at a company that's
Speaker 3: like one of investor's favorites.
Speaker 4: Listen, it's great for margins, right, but you've got to
Speaker 4: meet that demand. So that's why they're increasing probably their
Speaker 4: cap X. But it's like, Okay, great job, I love
Speaker 4: the numbers, but why do you have to spend so much?
Speaker 4: But like it's it's chicken or the egg, Like you
Speaker 4: got a bill to be able to meet supply. But
Speaker 4: there's always that concern of overbuilding, right, and then as we.
Speaker 1: Know these exactly where are we in the cycle comes
Speaker 1: to when the stuff gets online and how much will
Speaker 1: people be willing to pay? And you know, given that
Speaker 1: there's only like three providers including Micron, that do this,
Speaker 1: they're in a pretty good position when it comes to Yeah,
Speaker 1: supplying that demand.
Speaker 3: Yeah, but the balance is hard. The innovation were suspending.
Speaker 3: It's always hard.
Speaker 4: Yeah, investors are not always happy. I felt like for
Speaker 4: a while we were fined on the spend, and then
Speaker 4: it was like, no so much. Let's got a darden restaurants.
Speaker 3: Yeah, we're going to talk about food and Olive Gardens.
Speaker 3: They're having some promotion buy one, get one, and it's
Speaker 3: working out pretty well. The company is now having a
Speaker 3: small game, but in earlier trading it jumped as much
Speaker 3: as three percent. The Darten now expects Fisco twenty twenty
Speaker 3: six same store sales to grow about four and a
Speaker 3: half percent. This is much higher than what they previously saw.
Speaker 3: The positive outlook is for Olive Garden. That's where a
Speaker 3: lot of the support is coming. Some interesting things. They
Speaker 3: introduced those lighter portion menules that offer smaller, cheapen meals.
Speaker 3: That's not working so well for their margins, so some
Speaker 3: pressure there. Perhaps we'll leave ones right Yeah really, yeah,
Speaker 3: I are so, but it didn't work. I didn't know
Speaker 3: it's not working well Italy.
Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with
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