WEBVTT - Walmart Shares Fall, Coty Slumps, Cracker Barrel Slides

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>I'm Jim Stativik along with Nora Melinda. Let's take a

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<v Speaker 1>look at some stocks on the move today. We're joined

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<v Speaker 1>by Bloomberg News Deputy team leader for US Equities, Jess Menton. Jess,

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<v Speaker 1>if you're looking at stocks that are moving lower.

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<v Speaker 3>Wow, you got a lot to choose from.

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<v Speaker 4>There is a lot today, and of course I have

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<v Speaker 4>to talk about Walmart, just given its among some of

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<v Speaker 4>the top decliners in the S and P five hundred

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<v Speaker 4>also a doubt component, so that's why you've seen that

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<v Speaker 4>weighing on that. So that stalks it down about five

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<v Speaker 4>percent on pace for its worst day since February twentieth.

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<v Speaker 4>It's an interesting story here because when it comes to Walmart,

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<v Speaker 4>retailer is a big tell on the consumer. So it

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<v Speaker 4>did have a rare profit miss and it was actually

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<v Speaker 4>the first time in three years, so that did overshadow

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<v Speaker 4>some of the strength we saw when it came to

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<v Speaker 4>higher sales growth. But I wanted to point out actually

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<v Speaker 4>coming into this year, Walmart was trading more like a

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<v Speaker 4>growth stock rather than a value stock before it reported

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<v Speaker 4>its earnings back in February. If you looked over like

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<v Speaker 4>a twelve month basis, it was up around seventy percent.

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<v Speaker 4>So there's only two other mag seven stocks that didn't

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<v Speaker 4>outperform at that time. It was like a Video and Tesla.

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<v Speaker 4>So it's an interesting story just given words valuation was

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<v Speaker 4>coming into this year, and obviously back to school shopping

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<v Speaker 4>seasons second most important for retailers, ahead of course the

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<v Speaker 4>holiday shopping season. So looking at that, but even though

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<v Speaker 4>you saw some of this rare profit miss and some

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<v Speaker 4>of those higher claims, there still was a bright spot

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<v Speaker 4>when it came to sales. But again we'll still have

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<v Speaker 4>others raw stores reporting after the bell. We heard from

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<v Speaker 4>Target earlier this week, and so keeping a close eye

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<v Speaker 4>on that. And obviously it's grocery business and how important

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<v Speaker 4>that is when you're those ties to inflation and with

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<v Speaker 4>even some of the tariff issues there, those still are

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<v Speaker 4>going to take a while for a lot of that

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<v Speaker 4>to show up in the company's report.

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<v Speaker 5>Right, and you really are seeing some weakness here. Walmart

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<v Speaker 5>shares down as much as four or five point five

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<v Speaker 5>percent in trading today. But when look at Wall Street,

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<v Speaker 5>we are still seeing forty three buys, one hold and

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<v Speaker 5>one sell. So it doesn't seem as though it's too

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<v Speaker 5>much of a negative shock here quite yet. Talk to

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<v Speaker 5>us about Cody. You're also keeping an eye there.

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<v Speaker 3>Adjusts.

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<v Speaker 4>This is quite the drop, so it's down over twenty

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<v Speaker 4>one percent. The taker symbol on this is Cooty and

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<v Speaker 4>also of course it's on Paceport, its worst day actually

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<v Speaker 4>since March of twenty twenty. So this is an important

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<v Speaker 4>company because it is also in the consumer type of

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<v Speaker 4>retail space, so beauty and sense type of company. So

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<v Speaker 4>to put into context for how it's tied to some

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<v Speaker 4>of these, it's the Rimmel owner, and it actually posted

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<v Speaker 4>a unexpected quarterly adjusted loss of five cents per share.

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<v Speaker 4>Analysts over at Deutsche Bank though they were flagging out

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<v Speaker 4>that company also faces some transitions here and setbacks from

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<v Speaker 4>internal executive challenges, but they think that the company can

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<v Speaker 4>kind of get over potentially that hurdle. But it was

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<v Speaker 4>of course a setback and indisputable there. But that is

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<v Speaker 4>one of those stocks really getting pummeled, actually down twenty

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<v Speaker 4>one point five percent.

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<v Speaker 1>Right now, we got to save some time for cracker Barrel.

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<v Speaker 1>I don't understand. I don't understand the discourse here around

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<v Speaker 1>this logo change, which is just has hit the stock

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<v Speaker 1>so hard.

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<v Speaker 4>It really hasn't. I mean, I'm from the South, I've

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<v Speaker 4>lived there years.

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<v Speaker 1>Or emblematic of the world we live in when like

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<v Speaker 1>you know, offspring of politicians are getting involved in this

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<v Speaker 1>logo dispute with the company.

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<v Speaker 4>It's true, and I always thought about, you know what

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<v Speaker 4>it'd be in the highways in Texas where you'd see

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<v Speaker 4>kind of the uh rolling, sort of the chairs they

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<v Speaker 4>had outside the business. Same in Virginia, right exactly, but

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<v Speaker 4>you did see this so specifically the ticker symbol for

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<v Speaker 4>a cracker barrel c b RL on this and it's

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<v Speaker 4>down actually eight percent right now, on pace for its

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<v Speaker 4>worst day since June tenth. But also it's been on

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<v Speaker 4>a string of losses right now. So EXTIMUUS declines to

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<v Speaker 4>a fifth straight day, So there's a wave. Of course,

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<v Speaker 4>Tim was talking about that wave of social media post

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<v Speaker 4>surrounding that recent logo change there and really kind of

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<v Speaker 4>disrupting a lot of this. So the restaurant operator actually

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<v Speaker 4>issued a statement back on August nineteenth, so that would

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<v Speaker 4>have been on Tuesday announcing that it would be launching

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<v Speaker 4>a new campaign featuring country music per performer Jordan Davis.

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<v Speaker 4>So while also tweaking its logo, so a little bit

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<v Speaker 4>different here, probably unexpected for people, to Tim's point, a

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<v Speaker 4>lot of people jumping in on this, and then Cracker

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<v Speaker 4>Barrel actually was one of the top trading tickers on

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<v Speaker 4>stock twits, so my belief of the retail crowd as

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<v Speaker 4>well talking about this. So Cracker Barrel didn't immediately reply

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<v Speaker 4>to a request for comments for reporters that are on

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<v Speaker 4>that story right now, But it's an interesting move here,

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<v Speaker 4>and especially just given not even just today's losses, but

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<v Speaker 4>the stream that it's been on for a while.

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<v Speaker 3>I will say.

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<v Speaker 1>Michael Halen of Bloomberg Intelligence, he's a senior analyst. He

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<v Speaker 1>says he does not expect Cracker Barrel to experience a

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<v Speaker 1>prolonged negative reaction, worries that the misinformation on social media

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<v Speaker 1>and concern about the post will result in such similar

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<v Speaker 1>to what happened with bud Light.

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<v Speaker 3>Our quote unfounded. According to a recent note that he wrote.

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<v Speaker 2>The Stockmover's report from Bloomberg Radio check back with us

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<v Speaker 2>throughout the day for the latest roundup of companies making

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<v Speaker 2>news on Wall Street, and for the latest market moving headlines.

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