WEBVTT - Closing Bell: Electronic Arts Soars, Intel Rises, Klarna Falls

0:00:02.520 --> 0:00:09.680
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:09.880 --> 0:00:13.320
<v Speaker 2>This is the closing bell on this stock mover's report.

0:00:13.560 --> 0:00:16.520
<v Speaker 2>The company's making moves at the close of US trading

0:00:16.760 --> 0:00:21.320
<v Speaker 2>with Carol Masser, Tim Stenebeck, Romain Bostik, and Scarlett Food.

0:00:22.280 --> 0:00:25.760
<v Speaker 3>So many gainers look at the green on that map,

0:00:25.840 --> 0:00:28.200
<v Speaker 3>so many gainers to choose from. So get ready for

0:00:28.280 --> 0:00:31.720
<v Speaker 3>Romain to interrupt me and add to my list. Having

0:00:31.760 --> 0:00:34.159
<v Speaker 3>said that, I got to talk about EA Electronic Arts

0:00:34.200 --> 0:00:35.920
<v Speaker 3>because that is your number one gainer in the S

0:00:35.960 --> 0:00:39.480
<v Speaker 3>and P five hundred NASDAQ one hundred. Kind of ran

0:00:39.520 --> 0:00:42.560
<v Speaker 3>into that spot after we saw that headline cross initially

0:00:42.600 --> 0:00:45.519
<v Speaker 3>with a Wall Street Journal story, but Bloomberg also matching

0:00:45.520 --> 0:00:49.360
<v Speaker 3>the reporting. Electronic Arts up about fifteen percent here at

0:00:49.360 --> 0:00:52.920
<v Speaker 3>the close today. This as that story came out that

0:00:53.680 --> 0:00:56.960
<v Speaker 3>this company is nearing a deal to go private. It

0:00:56.960 --> 0:00:59.960
<v Speaker 3>would be a massive deal to go private. We're talking

0:01:00.000 --> 0:01:03.680
<v Speaker 3>about maybe a fifty billion dollar leveraged buyout. It would

0:01:03.680 --> 0:01:06.880
<v Speaker 3>be the largest buyout of all time, LBO of all time.

0:01:06.959 --> 0:01:09.320
<v Speaker 3>This is scoring to people familiar again. We're talking about

0:01:09.360 --> 0:01:12.400
<v Speaker 3>silver Lake said to be a part of that Saudi's

0:01:12.440 --> 0:01:16.080
<v Speaker 3>public investment fund. So we will see ultimately that happens.

0:01:16.080 --> 0:01:17.000
<v Speaker 3>But what are you thinking?

0:01:17.040 --> 0:01:18.600
<v Speaker 1>Well, when I looked up, you know, anytime I see

0:01:18.640 --> 0:01:20.280
<v Speaker 1>these deals, always look to see where they're ranked. I

0:01:20.319 --> 0:01:23.520
<v Speaker 1>was actually surprised that fifty billion is basically the threshold

0:01:23.760 --> 0:01:26.800
<v Speaker 1>for the biggest buyout ever potentially obviously if this actually

0:01:26.840 --> 0:01:28.320
<v Speaker 1>comes to fruition, I mean you would think there would

0:01:28.319 --> 0:01:30.920
<v Speaker 1>have been something bigger. But it was really that TXU deal.

0:01:30.959 --> 0:01:33.760
<v Speaker 1>I guess. You know, way back when before Tim was born,

0:01:34.000 --> 0:01:34.319
<v Speaker 1>I was.

0:01:34.319 --> 0:01:36.640
<v Speaker 4>Thinking, I was like a forty five well adjusted for inflation.

0:01:37.080 --> 0:01:40.400
<v Speaker 3>I was thinking about, like, is it KKR and Nibisco

0:01:40.440 --> 0:01:41.080
<v Speaker 3>and least.

0:01:40.920 --> 0:01:43.080
<v Speaker 1>Thirty one billion? I mean that's and that's a real dollar.

0:01:43.080 --> 0:01:44.559
<v Speaker 1>I mean it's Tim's point too. You have to adjust

0:01:44.560 --> 0:01:46.480
<v Speaker 1>for inflation. But still, and then you had, you know

0:01:46.520 --> 0:01:50.400
<v Speaker 1>that forty four billion dollar Twitter buyout, which is a deal.

0:01:50.600 --> 0:01:52.920
<v Speaker 3>All right, so ea, definitely on my radar. A couple

0:01:52.960 --> 0:01:55.120
<v Speaker 3>of chip names I just want to mention Take two

0:01:55.240 --> 0:01:55.600
<v Speaker 3>was up.

0:01:55.520 --> 0:01:57.000
<v Speaker 1>Also by about five percent.

0:01:57.320 --> 0:02:00.680
<v Speaker 4>There you go, so this is what happens. Funny.

0:02:01.040 --> 0:02:04.160
<v Speaker 3>Yeah, ten minutes later I get to the last one.

0:02:04.280 --> 0:02:05.880
<v Speaker 3>All right, so chip names, let me go through it.

0:02:06.320 --> 0:02:09.640
<v Speaker 3>We had Global Founderies and Intel both rallying Global Founderies

0:02:09.680 --> 0:02:11.679
<v Speaker 3>up about eight percent, Intel up about four and a

0:02:11.720 --> 0:02:14.680
<v Speaker 3>half percent. This is after again the journal Wall Street

0:02:14.720 --> 0:02:17.000
<v Speaker 3>Journal report that the Trump administration is weigh a new

0:02:17.040 --> 0:02:20.680
<v Speaker 3>plan to reduce US reliance on chips made overseas. So

0:02:20.720 --> 0:02:24.520
<v Speaker 3>we did see some movement in particular in those two names.

0:02:24.600 --> 0:02:28.160
<v Speaker 3>I also want to mention Pacar. It was a top

0:02:28.160 --> 0:02:30.120
<v Speaker 3>in the s and P five hundred and Nawzak one

0:02:30.200 --> 0:02:33.200
<v Speaker 3>hundred here at the close, up about five point two percent.

0:02:33.800 --> 0:02:36.959
<v Speaker 3>It's a chrup maker, and it rallied after the President

0:02:36.960 --> 0:02:40.320
<v Speaker 3>Trump anounced new industry specific tariffs that include a twenty

0:02:40.320 --> 0:02:43.480
<v Speaker 3>five percent levy on heavy trucks and LSA. This company

0:02:43.480 --> 0:02:47.120
<v Speaker 3>will benefit because it makes a lot of its trucks

0:02:47.200 --> 0:02:49.600
<v Speaker 3>right here in the United States. US production.

0:02:49.800 --> 0:02:50.240
<v Speaker 2>There you go.

0:02:50.360 --> 0:02:51.400
<v Speaker 4>Can you get them at costco?

0:02:53.720 --> 0:02:54.639
<v Speaker 3>I don't think so well.

0:02:54.639 --> 0:02:56.280
<v Speaker 4>That's where I'm going right now, because it was the

0:02:56.280 --> 0:02:58.360
<v Speaker 4>worst performer in the S and P five hundred, down

0:02:58.400 --> 0:03:01.359
<v Speaker 4>two point nine percent today. The company did report after

0:03:01.400 --> 0:03:05.200
<v Speaker 4>the bell yesterday a mixed fourth quarter, including adjusted earnings

0:03:05.200 --> 0:03:07.960
<v Speaker 4>per share and comp sales that excluded gas and FX

0:03:07.960 --> 0:03:11.640
<v Speaker 4>that came in ahead of expectations, but analysts had high expectations.

0:03:11.680 --> 0:03:15.600
<v Speaker 4>They said that the premium valuation versus its peers contributed

0:03:15.600 --> 0:03:18.639
<v Speaker 4>to high expectations going into this print. Shares down today

0:03:18.919 --> 0:03:22.799
<v Speaker 4>by about two point nine percent. OURH, they operate the

0:03:22.840 --> 0:03:27.160
<v Speaker 4>restoration hardware chain of stores. Shares of furniture retailers, including

0:03:27.440 --> 0:03:30.120
<v Speaker 4>RH tumble today. This after President Trum announced the US

0:03:30.120 --> 0:03:33.520
<v Speaker 4>will enact new tariffs on imported kitchen cabinets, bathroom vanities,

0:03:33.520 --> 0:03:37.680
<v Speaker 4>and other home products next week. URH, with the outspoken CEO,

0:03:37.760 --> 0:03:39.960
<v Speaker 4>has already declined forty six percent this year. That was

0:03:40.000 --> 0:03:44.680
<v Speaker 4>through yesterday's close. And finally, Klarna kind of been a

0:03:44.680 --> 0:03:48.720
<v Speaker 4>mixed road for IPOs of late Romaine. Clarna fell three

0:03:48.760 --> 0:03:51.800
<v Speaker 4>point eight percent today. Remembered iPod a few weeks ago

0:03:51.880 --> 0:03:55.640
<v Speaker 4>about at forty dollars a share fell bolo the IPO

0:03:55.720 --> 0:03:59.320
<v Speaker 4>price for the first time and increased competition, worries about

0:03:59.360 --> 0:04:02.240
<v Speaker 4>interest rates. We spoke to the CFO of the buy now,

0:04:02.280 --> 0:04:05.160
<v Speaker 4>pay later firm affirm yesterday, who essentially told us the

0:04:05.160 --> 0:04:07.200
<v Speaker 4>same thing that Max Levchin told us a few weeks ago.

0:04:07.280 --> 0:04:09.560
<v Speaker 4>The CEO of a firm, Yeah, everything looks good for

0:04:09.640 --> 0:04:11.400
<v Speaker 4>us out there in the landscape. We're not seeing any

0:04:11.680 --> 0:04:12.680
<v Speaker 4>cracks in the consumer.

0:04:12.800 --> 0:04:15.000
<v Speaker 1>All right, let's check it on yields real quickly. Here

0:04:15.040 --> 0:04:17.440
<v Speaker 1>a mixed bag, but generally speaking, yields did not go

0:04:17.839 --> 0:04:20.200
<v Speaker 1>much of anywhere. You're looking at moves that basically about

0:04:20.200 --> 0:04:22.760
<v Speaker 1>one basis point down on the two year up on

0:04:22.839 --> 0:04:25.000
<v Speaker 1>the longer end of the curve. We should point out

0:04:25.040 --> 0:04:27.640
<v Speaker 1>on a weekly basis though, we are pretty much higher

0:04:27.800 --> 0:04:30.120
<v Speaker 1>across the curve as a lot of people now really

0:04:30.200 --> 0:04:32.560
<v Speaker 1>starting to rethink whether we are indeed going to get

0:04:32.560 --> 0:04:33.400
<v Speaker 1>fed raad cuts.

0:04:34.680 --> 0:04:38.680
<v Speaker 2>This stock Movers report from Bloomberg Radio. Check back with

0:04:38.760 --> 0:04:41.360
<v Speaker 2>us throughout the day for the latest roundup of companies

0:04:41.400 --> 0:04:44.520
<v Speaker 2>making news on Wall Street and for the latest market

0:04:44.560 --> 0:04:49.040
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:04:49.120 --> 0:04:52.599
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:04:52.680 --> 0:04:54.159
<v Speaker 2>the Bloomberg Business app.