WEBVTT -  Week Ahead: Target, Walmart, Deere 

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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. I'm Nathan Hager, joined by Bloomberg

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<v Speaker 1>Equities reporter Avalon Purnell. We're sort of winding down earning

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<v Speaker 1>season here Avalon, but we're going to hear from some

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<v Speaker 1>of the biggest names in big box retail this week,

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<v Speaker 1>starting with Target on Wednesday. There has been a lot

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<v Speaker 1>of drama around this stock. What are we expecting this week?

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<v Speaker 3>Absolutely, we're definitely gonna get a lot of visibility on

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<v Speaker 3>the state of the American shopper, sales trends and progress

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<v Speaker 3>on Target's broader recovery will definitely be top of mind

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<v Speaker 3>for investors, especially as they head into their second quarter

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<v Speaker 3>earnings next Wednesday. The company is still really trying to

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<v Speaker 3>regain its sparkle and pinpoint what exactly made the company

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<v Speaker 3>tarja as opposed to just Target. One thing of note, though,

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<v Speaker 3>is that definitely analysts remain remixed on the company's performance

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<v Speaker 3>moving forward, especially giving guidance they had in their earnings

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<v Speaker 3>call last quarter, noting that they did have a little

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<v Speaker 3>bit of concerns about tougher comparisons moving forward, you have

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<v Speaker 3>ubs as Michael Lasser remaining quite bullish, expecting the results

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<v Speaker 3>to provide the next proof point that broader recovery may

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<v Speaker 3>actually be sticking around for the company, whereas Barclays Seth

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<v Speaker 3>Sigmund saying that you know, meaningful upside to results will

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<v Speaker 3>really be needed to push the stock from here. He

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<v Speaker 3>notes also that he believes a big box store likely

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<v Speaker 3>had a solid quarter. However, he still views improvement as

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<v Speaker 3>just recovering from last year's issues as opposed to moving

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<v Speaker 3>forward into the next chapter. So Worth noting that the

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<v Speaker 3>options data that we're currently seeing at the moment is

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<v Speaker 3>implying about a six point two percent move after those results.

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<v Speaker 1>Well, you wonder if we're going to see something of

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<v Speaker 1>a similar move from Walmart when they report on Thursday.

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<v Speaker 1>If you think about some kind of indicator of the

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<v Speaker 1>American consumer, it's hard to think of a company that's

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<v Speaker 1>more of one than Walmart.

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<v Speaker 3>Absolutely, and a similar story that we were seeing in

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<v Speaker 3>Target definitely still playing a role here for Walmart as well.

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<v Speaker 3>Analysts still quite mixed on how exactly this big box stores,

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<v Speaker 3>e commerce and also delivery businesses will perform as they

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<v Speaker 3>report second quarter earnings. Key Bank is expecting pretty healthy

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<v Speaker 3>results from the store, noting that the company remains one

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<v Speaker 3>of their top picks as growth initiatives and also further

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<v Speaker 3>share gains continue to build momentum despite a fairly volatile

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<v Speaker 3>macro and geopolitical environment. They also expect Walmart to be

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<v Speaker 3>fairly vocal about how exactly they're using those tariff refunds

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<v Speaker 3>to fund rollbacks and ultimately drive future business gains by

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<v Speaker 3>bringing people back into the store with slightly lower prices.

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<v Speaker 3>Others are not necessarily as rosy about the company's outlook,

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<v Speaker 3>Barclays noting that the optics don't look too great given

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<v Speaker 3>expectations for sales moderation from the last quarter. Barclays, though

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<v Speaker 3>still saying that they believe this could be the trough

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<v Speaker 3>as price investments and other initiatives support accelerating share gains

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<v Speaker 3>in the second half of the year. We're voting like

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<v Speaker 3>retaillers are still expecting, you know, back to school sales

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<v Speaker 3>and Black Friday, which obviously won't be penciled in for

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<v Speaker 3>the start of the year.

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<v Speaker 1>Right, but definitely something to keep an eye on as

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<v Speaker 1>we wait to see what the outlook is going to

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<v Speaker 1>be from both Target and Walmart. Also on Thursday, we're

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<v Speaker 1>going to hear from one of the biggest names in

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<v Speaker 1>the AG sector. What are we expecting from Deer in company?

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<v Speaker 3>Yes, investors will be looking for more data that reinforces

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<v Speaker 3>Deer's view that twenty twenty six will be the trough

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<v Speaker 3>the bottom of this quite complicated situation for the company.

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<v Speaker 3>The world's biggest farm machinery makers. Second quarter results are

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<v Speaker 3>expected to be slightly mixed again this quarter, Bloomberg Intelligence

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<v Speaker 3>expecting the results to still reinforce that expectation that twenty

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<v Speaker 3>twenty six will mark a trough in large ag demand

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<v Speaker 3>as attention ships towards how fast will that recovery be

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<v Speaker 3>next year. However, that analyst is also noting that they're

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<v Speaker 3>still expecting large agriculture retail cells to remain quite soft,

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<v Speaker 3>though they do appear to be tracking better than industry

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<v Speaker 3>forecasts as inventories continue to normalize. RBC also highlighting that

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<v Speaker 3>their big question is continuing to be what exactly does

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<v Speaker 3>the pace of Deer's recovery look like, especially as there

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<v Speaker 3>continues to be a lot of volatility in the macro environment,

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<v Speaker 3>and also the tariff situation that is somewhat improved but

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<v Speaker 3>still kind of in the balance. All previously kind of interesting,

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<v Speaker 3>especially with the Iran War in the background, as to

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<v Speaker 3>how exactly that's going to be impacting farmers who are

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<v Speaker 3>continuing to struggle to manage prices, not necessarily keeping pace

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<v Speaker 3>with very elevated cost in the options market, also continuing

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<v Speaker 3>to price a potential move of nearly five percent after

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<v Speaker 3>the company reports learnings.

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<v Speaker 1>Yeah, still a lot of back and forth when it

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<v Speaker 1>comes to that situation in the Middle East and the

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<v Speaker 1>post tariff situation as well. Just time to talk about

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<v Speaker 1>a stock that's reporting this week, Esday Lotder. There is

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<v Speaker 1>a lot more competition in the beauty space. How are

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<v Speaker 1>we thinking Esday Lotter is going to be handling it?

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<v Speaker 2>There?

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<v Speaker 3>Sure is, And I mean to say the least, this

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<v Speaker 3>company has had a rollercoaster ride of a quarter. I mean,

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<v Speaker 3>just a couple of months ago they were talking about

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<v Speaker 3>merger talks with the Spanish brand Pooch, which was on

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<v Speaker 3>the table and then later scrapped after investors were quite

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<v Speaker 3>negative on that idea, and like a lot of other

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<v Speaker 3>companies that we've already mentioned. They are in the midst

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<v Speaker 3>of a broader recovery as consumers are continuing to kind

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<v Speaker 3>of pull back from spending on these various like luxury

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<v Speaker 3>brands that are under the Esday Ltder umbrella. That being said,

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<v Speaker 3>RBC does continue to favor their turnaround, say noticing that

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<v Speaker 3>potentially important brands continue to outperform, and they also noted

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<v Speaker 3>that the broader turnaround at Mac continues to kind of

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<v Speaker 3>bode well for the company, though they do still question

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<v Speaker 3>how Esday Lotter will continue to fare with holding on

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<v Speaker 3>to smash box in two Face, which are fairly popular

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<v Speaker 3>brands amongst maybe millennial crowds, and whether it still makes

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<v Speaker 3>sense for Este Lauder to hold on to them or

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<v Speaker 3>maybe look for a play to sell them at some point.

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<v Speaker 2>This stock Moover's 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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<v Speaker 2>making news on Wall Street and for the latest market

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<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

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