Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: This is the closing bell on this stock mover's report.
Speaker 2: The company's making moves at the close of US trading
Speaker 2: with Carol Masser, Tim Stenebeck, Romain Bostik, and Scarlet Foo.
Speaker 3: Most names in the S and P five hundred, three
Speaker 3: hundred and sixty six teams to the appside, one hundred
Speaker 3: and thirty three of the downside. Foreign Jake, go ahead,
Speaker 3: go ahead, all right.
Speaker 4: Let's talk about the circle. Pretty good breath. When it
Speaker 4: comes to the sector performance. Eight of eleven sectors finishing
Speaker 4: in the green. Three in the red. Materials you're outperformer
Speaker 4: in a big way. That sector hired by two point
Speaker 4: two percent. Financials not too far behind, one point eight
Speaker 4: percent higher industrials, healthcare also catching a bit. In terms
Speaker 4: of what didn't perform today, you can see information technology
Speaker 4: US certainly worth a big chunk of the circle, but
Speaker 4: it was communication services down one percent that was your
Speaker 4: worst performal.
Speaker 3: Carol, okay, Katie, all right, let's get to some of
Speaker 3: the individual gainers on this Thursday. I'm going to go
Speaker 3: to the fertilizer companies. We saw Mosaic. What did did
Speaker 3: you grunt.
Speaker 4: I think it was just shocked at Mosaic being up
Speaker 4: so much.
Speaker 3: Okay, Mosaic up six point two percent here at the close.
Speaker 3: We did see fertilizer stocks as a whole moving higher.
Speaker 3: This is after Ukraine said drones had hit two fertilizer
Speaker 3: plants in Western Russia on concerns that geopolitical tensions will
Speaker 3: affect supply chains for key crop nutrients. Keep in mind
Speaker 3: these affected plants relatively small in context of overall fertilizer capacity.
Speaker 3: But our own Bloomberg Intelligence alys Alexis Maxwell weighing and
Speaker 3: saying the market priced and expectations for peace, which they're
Speaker 3: now reversing. So that's why you saw those stocks on
Speaker 3: the move higher. Concerns about shortages, but that certainly plays
Speaker 3: into those who can deliver it and probably you know,
Speaker 3: charge more and all that good stuff. Hey Eli, Lilly
Speaker 3: at its highs today, up about three point eight percent,
Speaker 3: finishing the day with a game of about one point
Speaker 3: six percent. A next generation A B City shot from
Speaker 3: Lily help patients lose almost a quarter of their body
Speaker 3: weight in sixty eight weeks. Patients on the highest dose
Speaker 3: of the drug experienced more than sixty two percent reduction
Speaker 3: in knee pain according to a self reported questionnaire. We
Speaker 3: are finding these drugs you lose weight, your overall health improves.
Speaker 3: But this one some outperformance there, and so you definitely
Speaker 3: saw investors moving into Eli Lilly and then just quickly
Speaker 3: Disney certainly on our radar today up about two and
Speaker 3: a half percent at the close. Disney agreeing to invest
Speaker 3: a billion dollars in Open Ai and license iconic characters
Speaker 3: for you some of the startups AI video platform platform.
Speaker 3: We thought this was kind of interesting because Disney's so
Speaker 3: protective of their IP, but nonetheless they definitely wanted some
Speaker 3: kind of relationship with Open Ai, and so investors seem
Speaker 3: to like it.
Speaker 5: Don iss Haannah Miller reminded us they're suing mid Journey
Speaker 5: for you know, creating stuff with characters. So anyway, those
Speaker 5: are the gainers. I got the decliners. We got to
Speaker 5: start with the Oracle down close to eleven percent today,
Speaker 5: ten point nine percent we're seeing day since January. At
Speaker 5: one point in the session it was down the most
Speaker 5: going all the way back to two thousand and one.
Speaker 5: This after the company escalated its spending on AI data
Speaker 5: centers and other equipment at a raised more than one
Speaker 5: hundred billion dollars in market value capex about twelve billion
Speaker 5: dollars in the quarter. That's an increase from eight and
Speaker 5: a half billion in the preceding period. Fiscal second quarter
Speaker 5: cloud sales increase thirty four percent to close to eight
Speaker 5: billion dollars. Also among the worst performers in the S
Speaker 5: and P five hundred on a percentage basis, Robinhood Markets
Speaker 5: down nine percent today. This after the company reported that
Speaker 5: November trading volume saw a month over month decline due
Speaker 5: to equity and crypto trading. November assets under custody are
Speaker 5: three one hundred and twenty five billion dollars. This stock
Speaker 5: still up more than two hundred and thirty percent so
Speaker 5: far this year, and finally, shares of Rivian fell today
Speaker 5: by six percent. They took it after the company and
Speaker 5: built its own AI chip designed to replace in Nvidia
Speaker 5: tech as part of a broader push to enhance the
Speaker 5: automated driving vehicle capabilities in its future vehicles. So it's
Speaker 5: going to equip the upcoming R two SUV with Rivian
Speaker 5: Autonomy Processor one chips and a new light our sensor
Speaker 5: that will help Rivian's efforts to eventually offer autonomous driving
Speaker 5: capability once again. Rivian shares down today six percent.
Speaker 1: All right, a quick check on yields, and we should
Speaker 1: just point out not a whole lot happened today. In fact,
Speaker 1: that screen there, we're just going to call it unch
Speaker 1: across the board here we did get obviously a big
Speaker 1: move lower yesterday here, but yield still been relatively elevated
Speaker 1: relative to where they had been just a few months ago.
Speaker 1: Here again a market right now still trying to suss
Speaker 1: out what the Fed does next. We should point out
Speaker 1: we had set Stashnik on a little bit early earlier,
Speaker 1: who was talking about this increase in the Yolker, particularly
Speaker 1: with the two tens, and saying that that's something that
Speaker 1: we should keep an eye on. Though I think we
Speaker 1: have some breaking news crossing the wire right now on Lululemon.
Speaker 4: Absolutely, we'll get to the earnings, but let's talk about
Speaker 4: the management change. They are announcing in a statement announcing
Speaker 4: that Kelvin McDonald plants to step down as CEO and
Speaker 4: member of the company's board of directors effective January thirty first,
Speaker 4: twenty twenty six, also announcing that Marty Morphitz is Chair
Speaker 4: of the board, will take on an expanded role as
Speaker 4: executive chair effective immediately too, and this is, according to
Speaker 4: the release, ensure the continued execution of the company's near
Speaker 4: and long term growth strategy during this transition. Really, you
Speaker 4: can see the share of spiking right now.
Speaker 1: Yeah, Calvin McDonald thereon spike a lot more because they're
Speaker 1: down like fifty percent this year.
Speaker 3: Yeah, yeah, Calvin McDonald there since August of twenty eighteen.
Speaker 3: It looks like so interesting to see these changes. Let's
Speaker 3: go through some of their financial results, folks. Let's go
Speaker 3: right to the outlook. Fourth quarter net revenue three point
Speaker 3: five billion to three point five nine billion. The street
Speaker 3: estimate was at the higher end, three point five to
Speaker 3: nine billion. Let's go back to the third quarter. Third
Speaker 3: quarter EPs two fifty nine. That's a beat to twenty
Speaker 3: two was the street estimate. Third quarter total com sales
Speaker 3: x FX up two percent. The estimate was a gain
Speaker 3: of point seven two percent, so there's some outperformance there.
Speaker 3: International comp sales for the third quarter x currency up
Speaker 3: eighteen percent. That too, is way above the estimate street
Speaker 3: estimate of ten point seven percent higher. And gross margin
Speaker 3: for the third quarter fifty five point six percent. Again,
Speaker 3: that's a better number. Than what the street was expecting.
Speaker 3: They were looking for fifty four point four percent. But again,
Speaker 3: in terms of the outlook, go ahead, remain Yeah.
Speaker 1: Sorry, I didn't mean to cut you off, but I'm
Speaker 1: starting to read to this release here, and I'm curious
Speaker 1: about this idea that they don't actually have a successor
Speaker 1: a setup for McDonald just yet. They're basically starting the search.
Speaker 1: And it's never really a good sign when you basically
Speaker 1: announce the departure of the CEO without actually announcing who
Speaker 1: they're actually replacing that person with. So they basically got
Speaker 1: what I'm not this correct, about seven or eight weeks
Speaker 1: to figure this out before he leaves at the end
Speaker 1: of January.
Speaker 5: Well look, I mean you mentioned it this year. Shoes
Speaker 5: down fifty one percent so far this year, Romaine shares
Speaker 5: down from a twenty twenty three high more than sixty three.
Speaker 5: There's been a lot of critics out there, not just
Speaker 5: of the company, but even people formerly involved in the company.
Speaker 5: Chip Wilson, for example, has been outspoken about what he
Speaker 5: thinks should be done at Lululemons. So I agree, never
Speaker 5: a good sign when they don't have a successor actually
Speaker 5: lined up. But we'll see who they pick, and if
Speaker 5: he or she can turn the ship around.
Speaker 2: This stockmover's report from Bloomberg Radio. Check back with us
Speaker 2: throughout the day for the latest roundup of companies making
Speaker 2: news on Wall Street and for the latest market moving headlines.
Speaker 2: Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg
Speaker 2: dot com, and on Applecarplay and Android Auto with the
Speaker 2: Bloomberg Business app.