WEBVTT - Week Ahead: Home Depot, HP, and Dell 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>This 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>Let's take a look now at some stocks making news

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<v Speaker 1>in the week ahead. And I'm Nathan Hager, joined by

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<v Speaker 1>Bloomberg Markets Live Managing Editor Christine Aquino. I thought we

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<v Speaker 1>were almost done with earnings, Christine, but it looks like

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<v Speaker 1>we got some pretty big names reporting this week, including

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<v Speaker 1>Home Depot. On Tuesday was the holiday quarter, a time

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<v Speaker 1>people were thinking about home improvement.

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<v Speaker 3>Oh well, Nathan, I think from what we've heard from

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<v Speaker 3>Home Depot, things are not looking great. They have implemented

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<v Speaker 3>a lot of cost cussing cutting measures over the last

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<v Speaker 3>couple of months. So this month, for example, the company

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<v Speaker 3>said it's making the requirements for bonus payouts to managers

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<v Speaker 3>more strict, if they're telling eligible employees that they now

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<v Speaker 3>have a higher threshold for sales performance metrics to be

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<v Speaker 3>able to receive this bonus. And then in January they

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<v Speaker 3>also said that they're going to be cutting jobs across

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<v Speaker 3>several teams and also requiring corporate staff to return to

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<v Speaker 3>the office. And so it really seems like Home Depot

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<v Speaker 3>is really bracing for a challenging quarter that's probably going

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<v Speaker 3>to be reflected in the earnings results that we're going

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<v Speaker 3>to be seeing, and so it's just a question of whether,

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<v Speaker 3>you know, once investors see them, are they going to

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<v Speaker 3>see enough of a silver lining in those results. You know,

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<v Speaker 3>whether it's the cost cutting measures that Home Depot implemented

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<v Speaker 3>or anything else that they're doing that would give them

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<v Speaker 3>a steadier footing moving forward. That's probably going to be

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<v Speaker 3>what's in focus for investors next week.

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<v Speaker 1>It is interesting though, I mean, we're still off the

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<v Speaker 1>high from September for Home Depot, but the stock has

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<v Speaker 1>been kind of on a bit of a bounce here

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<v Speaker 1>over the last couple of months. So does that mean

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<v Speaker 1>the bar is kind of higher for Home Depot when

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<v Speaker 1>it comes to the earnings.

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<v Speaker 3>Yeah, I suppose you could say that, just because you know,

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<v Speaker 3>it has whethered a lot of storms over the last

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<v Speaker 3>few months. They have been warning for quite some time

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<v Speaker 3>now about to slow down in housing, which is very

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<v Speaker 3>much affecting their bottom line. But at the same time,

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<v Speaker 3>we have seen, as you mentioned, a resilience in the shares,

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<v Speaker 3>and so perhaps there is some of that optimism baked

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<v Speaker 3>in already that the company will be able to keep

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<v Speaker 3>a float. It's it's you know, it's it's Earnie's outlook,

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<v Speaker 3>its revenue outlook, and so you know, if there is

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<v Speaker 3>some disappointment there, we'll probably see that in the aftermath

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<v Speaker 3>of the reaction to the earnings.

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<v Speaker 1>Coming Moving from Home Depot, another stock that starts with

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<v Speaker 1>H reports on Tuesday.

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<v Speaker 2>HP.

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<v Speaker 1>Where are they when it comes to the AI tech story?

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<v Speaker 3>Yeah, I mean very interesting when it comes to HP.

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<v Speaker 3>Of course, it did get a bit of a boost

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<v Speaker 3>when it comes to the AI story, right. It was

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<v Speaker 3>very much involved in that trade back in the latter

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<v Speaker 3>part of twenty twenty five when it was all about

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<v Speaker 3>the expansion of the AI trade to the various companies

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<v Speaker 3>involved in implementing the data center build out. And HP

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<v Speaker 3>is a part of that supply chain. But you know,

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<v Speaker 3>our analy su Bloomber Intelligence really focusing in on margins

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<v Speaker 3>for HP here. They are big in a PC space,

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<v Speaker 3>a lot of pressure there when it comes to margins,

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<v Speaker 3>and and so that's a big question whether they're going

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<v Speaker 3>to be able to keep that up. Also question about

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<v Speaker 3>you know, their their memory supply is that supply chain

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<v Speaker 3>again going to be resilient and moving forward, and you know,

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<v Speaker 3>it's a big question whether they are going to be

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<v Speaker 3>able to maintain pricing power given that the environment at

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<v Speaker 3>the moment for anything air related is a little bit

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<v Speaker 3>more challenging as we've seen in recent price action.

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<v Speaker 1>Is that what we're seeing and reflected in terms of

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<v Speaker 1>the kind of steady decline that we've been seeing in

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<v Speaker 1>HPE's chart over the last few months.

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<v Speaker 3>Yeah, absolutely, Nathan, I mean, I think it's is one

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<v Speaker 3>of these socks very interesting. You know, it's just kind

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<v Speaker 3>of right in the middle of kind of institutional and

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<v Speaker 3>demand right given is part of the buildout story, but

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<v Speaker 3>then at the same time a lot of fluctuations due

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<v Speaker 3>to its spot when it comes to the consumer space,

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<v Speaker 3>right like it's PC offering still very much subject to

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<v Speaker 3>the whims of the consumer and as we've been hearing

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<v Speaker 3>from a lot of other companies, that is quite a

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<v Speaker 3>challenge environment. It's not that consumers are fully scaling back

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<v Speaker 3>on their purchases, they're just being more strategic about it,

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<v Speaker 3>and that may be where hv's vulnerabilities really may be exposed.

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<v Speaker 1>And on Thursday we hear from one of HP's competitors.

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<v Speaker 1>Is it going to be a similar story when it

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<v Speaker 1>comes to Dell Computer.

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<v Speaker 3>Yeah, I mean for Dell, it really has been a

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<v Speaker 3>rough start to twenty twenty six, right, We've seen their

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<v Speaker 3>shares down more than seven percent. They very much did

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<v Speaker 3>get wrapped up in the early twenty twenty six declines

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<v Speaker 3>for US equities in general, given all these fears about

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<v Speaker 3>AI disruption, and you know, for Bloomer Intelligence, their outlook

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<v Speaker 3>really focusing in on the aiserver demand that Dell is enjoying,

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<v Speaker 3>and so that is a positive for them, and that's

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<v Speaker 3>allow them to have a more broad consumer base. And

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<v Speaker 3>you know, our analysts are very much optimistic in terms

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<v Speaker 3>of their ability to sustain a momentum through twenty thirty.

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<v Speaker 3>So high expectations potentially for this earnings result possibly a

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<v Speaker 3>high potential for a disappointment as well.

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<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

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

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