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 Stativik along with Nora Melinda. Let's take a
Speaker 1: look at some stocks on the move today. We're joined
Speaker 1: by Bloomberg News Deputy team leader for US Equities, Jess Menton. Jess,
Speaker 1: if you're looking at stocks that are moving lower.
Speaker 3: Wow, you got a lot to choose from.
Speaker 4: There is a lot today, and of course I have
Speaker 4: to talk about Walmart, just given its among some of
Speaker 4: the top decliners in the S and P five hundred
Speaker 4: also a doubt component, so that's why you've seen that
Speaker 4: weighing on that. So that stalks it down about five
Speaker 4: percent on pace for its worst day since February twentieth.
Speaker 4: It's an interesting story here because when it comes to Walmart,
Speaker 4: retailer is a big tell on the consumer. So it
Speaker 4: did have a rare profit miss and it was actually
Speaker 4: the first time in three years, so that did overshadow
Speaker 4: some of the strength we saw when it came to
Speaker 4: higher sales growth. But I wanted to point out actually
Speaker 4: coming into this year, Walmart was trading more like a
Speaker 4: growth stock rather than a value stock before it reported
Speaker 4: its earnings back in February. If you looked over like
Speaker 4: a twelve month basis, it was up around seventy percent.
Speaker 4: So there's only two other mag seven stocks that didn't
Speaker 4: outperform at that time. It was like a Video and Tesla.
Speaker 4: So it's an interesting story just given words valuation was
Speaker 4: coming into this year, and obviously back to school shopping
Speaker 4: seasons second most important for retailers, ahead of course the
Speaker 4: holiday shopping season. So looking at that, but even though
Speaker 4: you saw some of this rare profit miss and some
Speaker 4: of those higher claims, there still was a bright spot
Speaker 4: when it came to sales. But again we'll still have
Speaker 4: others raw stores reporting after the bell. We heard from
Speaker 4: Target earlier this week, and so keeping a close eye
Speaker 4: on that. And obviously it's grocery business and how important
Speaker 4: that is when you're those ties to inflation and with
Speaker 4: even some of the tariff issues there, those still are
Speaker 4: going to take a while for a lot of that
Speaker 4: to show up in the company's report.
Speaker 5: Right, and you really are seeing some weakness here. Walmart
Speaker 5: shares down as much as four or five point five
Speaker 5: percent in trading today. But when look at Wall Street,
Speaker 5: we are still seeing forty three buys, one hold and
Speaker 5: one sell. So it doesn't seem as though it's too
Speaker 5: much of a negative shock here quite yet. Talk to
Speaker 5: us about Cody. You're also keeping an eye there.
Speaker 3: Adjusts.
Speaker 4: This is quite the drop, so it's down over twenty
Speaker 4: one percent. The taker symbol on this is Cooty and
Speaker 4: also of course it's on Paceport, its worst day actually
Speaker 4: since March of twenty twenty. So this is an important
Speaker 4: company because it is also in the consumer type of
Speaker 4: retail space, so beauty and sense type of company. So
Speaker 4: to put into context for how it's tied to some
Speaker 4: of these, it's the Rimmel owner, and it actually posted
Speaker 4: a unexpected quarterly adjusted loss of five cents per share.
Speaker 4: Analysts over at Deutsche Bank though they were flagging out
Speaker 4: that company also faces some transitions here and setbacks from
Speaker 4: internal executive challenges, but they think that the company can
Speaker 4: kind of get over potentially that hurdle. But it was
Speaker 4: of course a setback and indisputable there. But that is
Speaker 4: one of those stocks really getting pummeled, actually down twenty
Speaker 4: one point five percent.
Speaker 1: Right now, we got to save some time for cracker Barrel.
Speaker 1: I don't understand. I don't understand the discourse here around
Speaker 1: this logo change, which is just has hit the stock
Speaker 1: so hard.
Speaker 4: It really hasn't. I mean, I'm from the South, I've
Speaker 4: lived there years.
Speaker 1: Or emblematic of the world we live in when like
Speaker 1: you know, offspring of politicians are getting involved in this
Speaker 1: logo dispute with the company.
Speaker 4: It's true, and I always thought about, you know what
Speaker 4: it'd be in the highways in Texas where you'd see
Speaker 4: kind of the uh rolling, sort of the chairs they
Speaker 4: had outside the business. Same in Virginia, right exactly, but
Speaker 4: you did see this so specifically the ticker symbol for
Speaker 4: a cracker barrel c b RL on this and it's
Speaker 4: down actually eight percent right now, on pace for its
Speaker 4: worst day since June tenth. But also it's been on
Speaker 4: a string of losses right now. So EXTIMUUS declines to
Speaker 4: a fifth straight day, So there's a wave. Of course,
Speaker 4: Tim was talking about that wave of social media post
Speaker 4: surrounding that recent logo change there and really kind of
Speaker 4: disrupting a lot of this. So the restaurant operator actually
Speaker 4: issued a statement back on August nineteenth, so that would
Speaker 4: have been on Tuesday announcing that it would be launching
Speaker 4: a new campaign featuring country music per performer Jordan Davis.
Speaker 4: So while also tweaking its logo, so a little bit
Speaker 4: different here, probably unexpected for people, to Tim's point, a
Speaker 4: lot of people jumping in on this, and then Cracker
Speaker 4: Barrel actually was one of the top trading tickers on
Speaker 4: stock twits, so my belief of the retail crowd as
Speaker 4: well talking about this. So Cracker Barrel didn't immediately reply
Speaker 4: to a request for comments for reporters that are on
Speaker 4: that story right now, But it's an interesting move here,
Speaker 4: and especially just given not even just today's losses, but
Speaker 4: the stream that it's been on for a while.
Speaker 3: I will say.
Speaker 1: Michael Halen of Bloomberg Intelligence, he's a senior analyst. He
Speaker 1: says he does not expect Cracker Barrel to experience a
Speaker 1: prolonged negative reaction, worries that the misinformation on social media
Speaker 1: and concern about the post will result in such similar
Speaker 1: to what happened with bud Light.
Speaker 3: Our quote unfounded. According to a recent note that he wrote.
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