WEBVTT - IBM Falls, PepsiCo Drops, American Air Higher Despite Pulling Forecast

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The Stock Movers podcast,

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<v Speaker 1>your roundup of companies making moves in the stock market,

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<v Speaker 1>harnessing the power of Bloomberg Data.

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<v Speaker 2>Let's take a look at some stocks on the move today.

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<v Speaker 2>We're joined by Bloomberg's vil Donna Hirich. She joins U

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<v Speaker 2>here in a studio with Dona. What are you looking at?

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<v Speaker 3>I'm taking a look at IBM shares, of which are

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<v Speaker 3>dropping some six percent a day after the company reported

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<v Speaker 3>results that showed strong profit but also suggested the economics,

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<v Speaker 3>uncertainty and US government cost cuts could be denting its business.

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<v Speaker 3>So obviously, this has been a theme that we've been

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<v Speaker 3>discussing over the last couple of weeks, how White House

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<v Speaker 3>policies are actually impacting companies themselves. So we're seeing more

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<v Speaker 3>evidence of that. We have the CEO saying that in

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<v Speaker 3>the near term, uncertainty may cause clients to pause. And

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<v Speaker 3>obviously IBM has been working to transform itself over the

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<v Speaker 3>last couple of years. Shares been doing okay up until

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<v Speaker 3>this point. There are up some twelve percent for the year,

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<v Speaker 3>so holding up a little bit stronger than the market overall.

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<v Speaker 3>But we do see shares declining today.

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<v Speaker 2>What about Pepsi?

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<v Speaker 1>It cut its fullier profit out look.

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<v Speaker 3>What are you seeing there?

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<v Speaker 1>Right?

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<v Speaker 3>Shares of Pepsi are down two and a half three

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<v Speaker 3>percent today. It's lowering its full yer profit outlook, and

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<v Speaker 3>it's saying it's given the unpredictable US trade policies as

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<v Speaker 3>well as worsening consumer sentiment, which is driving up costs

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<v Speaker 3>and denting demands for the company's snacks and soft drinks. Obviously,

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<v Speaker 3>it's an owner of a lot of brands that we're

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<v Speaker 3>all very familiar with, and so it gives us a

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<v Speaker 3>really good good look and a pretty broad view into

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<v Speaker 3>the state of the consumer.

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<v Speaker 2>Isabelle and Odona? Are you soda drinkers? I'm not partly well, yes,

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<v Speaker 2>partly a coke versus pepsi. You've got opinion.

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<v Speaker 1>But if I were to choose, I think I like

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<v Speaker 1>pepsi more. Is that right?

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<v Speaker 2>Okay?

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<v Speaker 1>Person?

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<v Speaker 2>But I'm not.

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<v Speaker 3>Can you put ram and pepsi?

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<v Speaker 2>I think you can.

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<v Speaker 1>I thank you.

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<v Speaker 2>John John from the Shore asking can you put rum

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<v Speaker 2>in your pepsi? I think the answer is yes. American Airlines,

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<v Speaker 2>what's happening? But it's known as rom and.

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<v Speaker 3>Coke is management PEPSI, I'm sorry. American Airlines shares are

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<v Speaker 3>down point five percent today. It withdrew its full year

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<v Speaker 3>earnings outlook, and it's obviously joining a growing number of

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<v Speaker 3>companies that are saying that unease about the economy is

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<v Speaker 3>making it difficult to make forecasts and how the rest

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<v Speaker 3>of the year will be playing out. Last week we

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<v Speaker 3>had United Air taking a very unusual step in offering

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<v Speaker 3>dual earnings forecasts, so one for a stable environment and

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<v Speaker 3>one for reduced one based on the presumption of a recession.

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<v Speaker 3>So again just coming back to that theme of how

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<v Speaker 3>policies are actually impacting companies and what they're saying on

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<v Speaker 3>their earnings reports on how they're seeing things play out.

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<v Speaker 1>The Stock Movers podcast from Bloomberg Radio. Check back with

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