1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,520 --> 00:00:12,440 Speaker 2: This Stock Movers Report, your roundup of companies making moves 3 00:00:12,440 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,640 --> 00:00:18,639 Speaker 1: Let's take a look now at some stocks making news 5 00:00:18,640 --> 00:00:20,439 Speaker 1: in the week ahead. And I'm Nathan Hager, joined by 6 00:00:20,480 --> 00:00:24,560 Speaker 1: Bloomberg Markets Live Managing Editor Christine Aquino. I thought we 7 00:00:24,560 --> 00:00:26,960 Speaker 1: were almost done with earnings, Christine, but it looks like 8 00:00:27,000 --> 00:00:29,640 Speaker 1: we got some pretty big names reporting this week, including 9 00:00:29,760 --> 00:00:34,040 Speaker 1: Home Depot. On Tuesday was the holiday quarter, a time 10 00:00:34,080 --> 00:00:35,920 Speaker 1: people were thinking about home improvement. 11 00:00:36,200 --> 00:00:39,080 Speaker 3: Oh well, Nathan, I think from what we've heard from 12 00:00:39,080 --> 00:00:42,960 Speaker 3: Home Depot, things are not looking great. They have implemented 13 00:00:43,000 --> 00:00:46,160 Speaker 3: a lot of cost cussing cutting measures over the last 14 00:00:46,280 --> 00:00:48,520 Speaker 3: couple of months. So this month, for example, the company 15 00:00:48,560 --> 00:00:51,639 Speaker 3: said it's making the requirements for bonus payouts to managers 16 00:00:51,680 --> 00:00:55,080 Speaker 3: more strict, if they're telling eligible employees that they now 17 00:00:55,160 --> 00:00:59,040 Speaker 3: have a higher threshold for sales performance metrics to be 18 00:00:59,120 --> 00:01:01,560 Speaker 3: able to receive this bonus. And then in January they 19 00:01:01,560 --> 00:01:03,840 Speaker 3: also said that they're going to be cutting jobs across 20 00:01:03,880 --> 00:01:07,959 Speaker 3: several teams and also requiring corporate staff to return to 21 00:01:08,240 --> 00:01:11,160 Speaker 3: the office. And so it really seems like Home Depot 22 00:01:11,280 --> 00:01:14,520 Speaker 3: is really bracing for a challenging quarter that's probably going 23 00:01:14,520 --> 00:01:17,760 Speaker 3: to be reflected in the earnings results that we're going 24 00:01:17,840 --> 00:01:19,960 Speaker 3: to be seeing, and so it's just a question of whether, 25 00:01:20,319 --> 00:01:23,200 Speaker 3: you know, once investors see them, are they going to 26 00:01:23,280 --> 00:01:25,800 Speaker 3: see enough of a silver lining in those results. You know, 27 00:01:25,880 --> 00:01:29,080 Speaker 3: whether it's the cost cutting measures that Home Depot implemented 28 00:01:29,240 --> 00:01:31,960 Speaker 3: or anything else that they're doing that would give them 29 00:01:32,000 --> 00:01:34,640 Speaker 3: a steadier footing moving forward. That's probably going to be 30 00:01:34,720 --> 00:01:36,240 Speaker 3: what's in focus for investors next week. 31 00:01:36,440 --> 00:01:39,080 Speaker 1: It is interesting though, I mean, we're still off the 32 00:01:39,760 --> 00:01:42,640 Speaker 1: high from September for Home Depot, but the stock has 33 00:01:42,680 --> 00:01:44,400 Speaker 1: been kind of on a bit of a bounce here 34 00:01:44,440 --> 00:01:46,120 Speaker 1: over the last couple of months. So does that mean 35 00:01:46,160 --> 00:01:47,840 Speaker 1: the bar is kind of higher for Home Depot when 36 00:01:47,880 --> 00:01:48,760 Speaker 1: it comes to the earnings. 37 00:01:49,080 --> 00:01:52,320 Speaker 3: Yeah, I suppose you could say that, just because you know, 38 00:01:52,760 --> 00:01:56,320 Speaker 3: it has whethered a lot of storms over the last 39 00:01:56,320 --> 00:01:59,480 Speaker 3: few months. They have been warning for quite some time 40 00:01:59,560 --> 00:02:02,400 Speaker 3: now about to slow down in housing, which is very 41 00:02:02,480 --> 00:02:05,400 Speaker 3: much affecting their bottom line. But at the same time, 42 00:02:05,440 --> 00:02:08,320 Speaker 3: we have seen, as you mentioned, a resilience in the shares, 43 00:02:08,360 --> 00:02:12,680 Speaker 3: and so perhaps there is some of that optimism baked 44 00:02:12,720 --> 00:02:16,280 Speaker 3: in already that the company will be able to keep 45 00:02:16,320 --> 00:02:19,160 Speaker 3: a float. It's it's you know, it's it's Earnie's outlook, 46 00:02:19,200 --> 00:02:22,880 Speaker 3: its revenue outlook, and so you know, if there is 47 00:02:22,919 --> 00:02:27,000 Speaker 3: some disappointment there, we'll probably see that in the aftermath 48 00:02:27,080 --> 00:02:29,440 Speaker 3: of the reaction to the earnings. 49 00:02:29,160 --> 00:02:32,040 Speaker 1: Coming Moving from Home Depot, another stock that starts with 50 00:02:32,360 --> 00:02:34,000 Speaker 1: H reports on Tuesday. 51 00:02:34,400 --> 00:02:34,720 Speaker 2: HP. 52 00:02:35,639 --> 00:02:39,200 Speaker 1: Where are they when it comes to the AI tech story? 53 00:02:39,560 --> 00:02:42,560 Speaker 3: Yeah, I mean very interesting when it comes to HP. 54 00:02:42,720 --> 00:02:44,720 Speaker 3: Of course, it did get a bit of a boost 55 00:02:44,720 --> 00:02:47,680 Speaker 3: when it comes to the AI story, right. It was 56 00:02:47,760 --> 00:02:52,520 Speaker 3: very much involved in that trade back in the latter 57 00:02:52,880 --> 00:02:55,280 Speaker 3: part of twenty twenty five when it was all about 58 00:02:55,480 --> 00:03:00,000 Speaker 3: the expansion of the AI trade to the various companies 59 00:03:00,120 --> 00:03:04,160 Speaker 3: involved in implementing the data center build out. And HP 60 00:03:04,400 --> 00:03:06,440 Speaker 3: is a part of that supply chain. But you know, 61 00:03:06,480 --> 00:03:11,240 Speaker 3: our analy su Bloomber Intelligence really focusing in on margins 62 00:03:11,560 --> 00:03:14,360 Speaker 3: for HP here. They are big in a PC space, 63 00:03:14,480 --> 00:03:17,320 Speaker 3: a lot of pressure there when it comes to margins, 64 00:03:17,639 --> 00:03:20,680 Speaker 3: and and so that's a big question whether they're going 65 00:03:20,720 --> 00:03:24,080 Speaker 3: to be able to keep that up. Also question about 66 00:03:24,760 --> 00:03:28,320 Speaker 3: you know, their their memory supply is that supply chain 67 00:03:28,480 --> 00:03:33,120 Speaker 3: again going to be resilient and moving forward, and you know, 68 00:03:33,600 --> 00:03:35,920 Speaker 3: it's a big question whether they are going to be 69 00:03:35,960 --> 00:03:40,040 Speaker 3: able to maintain pricing power given that the environment at 70 00:03:40,040 --> 00:03:42,160 Speaker 3: the moment for anything air related is a little bit 71 00:03:42,240 --> 00:03:44,360 Speaker 3: more challenging as we've seen in recent price action. 72 00:03:44,840 --> 00:03:47,560 Speaker 1: Is that what we're seeing and reflected in terms of 73 00:03:47,800 --> 00:03:50,840 Speaker 1: the kind of steady decline that we've been seeing in 74 00:03:51,000 --> 00:03:52,800 Speaker 1: HPE's chart over the last few months. 75 00:03:53,160 --> 00:03:55,840 Speaker 3: Yeah, absolutely, Nathan, I mean, I think it's is one 76 00:03:55,840 --> 00:03:58,080 Speaker 3: of these socks very interesting. You know, it's just kind 77 00:03:58,120 --> 00:04:01,720 Speaker 3: of right in the middle of kind of institutional and 78 00:04:01,800 --> 00:04:05,920 Speaker 3: demand right given is part of the buildout story, but 79 00:04:05,960 --> 00:04:08,840 Speaker 3: then at the same time a lot of fluctuations due 80 00:04:08,920 --> 00:04:13,360 Speaker 3: to its spot when it comes to the consumer space, 81 00:04:13,440 --> 00:04:16,080 Speaker 3: right like it's PC offering still very much subject to 82 00:04:16,440 --> 00:04:19,520 Speaker 3: the whims of the consumer and as we've been hearing 83 00:04:19,560 --> 00:04:21,520 Speaker 3: from a lot of other companies, that is quite a 84 00:04:21,600 --> 00:04:26,039 Speaker 3: challenge environment. It's not that consumers are fully scaling back 85 00:04:26,160 --> 00:04:29,760 Speaker 3: on their purchases, they're just being more strategic about it, 86 00:04:29,839 --> 00:04:34,480 Speaker 3: and that may be where hv's vulnerabilities really may be exposed. 87 00:04:34,720 --> 00:04:38,120 Speaker 1: And on Thursday we hear from one of HP's competitors. 88 00:04:38,160 --> 00:04:39,760 Speaker 1: Is it going to be a similar story when it 89 00:04:39,800 --> 00:04:41,120 Speaker 1: comes to Dell Computer. 90 00:04:41,440 --> 00:04:43,800 Speaker 3: Yeah, I mean for Dell, it really has been a 91 00:04:43,880 --> 00:04:46,080 Speaker 3: rough start to twenty twenty six, right, We've seen their 92 00:04:46,080 --> 00:04:49,280 Speaker 3: shares down more than seven percent. They very much did 93 00:04:49,320 --> 00:04:53,919 Speaker 3: get wrapped up in the early twenty twenty six declines 94 00:04:53,960 --> 00:04:57,120 Speaker 3: for US equities in general, given all these fears about 95 00:04:57,320 --> 00:05:01,919 Speaker 3: AI disruption, and you know, for Bloomer Intelligence, their outlook 96 00:05:01,960 --> 00:05:07,640 Speaker 3: really focusing in on the aiserver demand that Dell is enjoying, 97 00:05:07,680 --> 00:05:10,080 Speaker 3: and so that is a positive for them, and that's 98 00:05:10,160 --> 00:05:14,200 Speaker 3: allow them to have a more broad consumer base. And 99 00:05:14,520 --> 00:05:18,159 Speaker 3: you know, our analysts are very much optimistic in terms 100 00:05:18,200 --> 00:05:21,240 Speaker 3: of their ability to sustain a momentum through twenty thirty. 101 00:05:22,240 --> 00:05:27,160 Speaker 3: So high expectations potentially for this earnings result possibly a 102 00:05:27,240 --> 00:05:29,239 Speaker 3: high potential for a disappointment as well. 103 00:05:31,000 --> 00:05:35,040 Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with 104 00:05:35,120 --> 00:05:37,680 Speaker 2: us throughout the day for the latest roundup of companies 105 00:05:37,760 --> 00:05:40,839 Speaker 2: making news on Wall Street and for the latest market 106 00:05:40,880 --> 00:05:45,360 Speaker 2: moving headlines. 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