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: The 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 00:00:16,760 --> 00:00:19,400 Speaker 3: I am Carol Masser along with tymstent of It. Let's 5 00:00:19,400 --> 00:00:21,880 Speaker 3: get to some stocks on the move on this Wednesday. 6 00:00:21,880 --> 00:00:24,280 Speaker 3: We're joined by Bloomberg cross Auset reporter Isabell Lee. 7 00:00:24,520 --> 00:00:26,239 Speaker 4: Let's talk about Back of America. It was a big 8 00:00:26,320 --> 00:00:31,159 Speaker 4: day for banks. Ticker is BAC. This stock is It 9 00:00:31,360 --> 00:00:33,960 Speaker 4: ended lower after the fourth quarter results, so the results 10 00:00:34,000 --> 00:00:37,960 Speaker 4: were great. Equity traders posted their best fourth quarter ever, 11 00:00:38,200 --> 00:00:40,920 Speaker 4: thanks of course to really valatile markets. We have net 12 00:00:40,960 --> 00:00:45,919 Speaker 4: income topping estimates, but this shares decline because of concerns 13 00:00:45,960 --> 00:00:49,200 Speaker 4: around expenses. So the stock has gained around fifteen percent 14 00:00:49,200 --> 00:00:50,720 Speaker 4: in the past twelve months, so that's kind of good 15 00:00:50,720 --> 00:00:52,960 Speaker 4: to Maybe today is just a blip. We have Piper 16 00:00:53,040 --> 00:00:56,160 Speaker 4: Sundler saying that the guide suggests that first quarter expenses 17 00:00:56,200 --> 00:00:59,160 Speaker 4: will be worse than we in the market expect. So 18 00:00:59,200 --> 00:01:02,280 Speaker 4: evercor seid Back of America, which is the second largest 19 00:01:02,400 --> 00:01:06,040 Speaker 4: US back, needs to close the return gap versus their peers. 20 00:01:06,080 --> 00:01:07,200 Speaker 1: So back to some details. 21 00:01:07,360 --> 00:01:10,600 Speaker 4: Net interest income rows nine point seven percent topping estimates. 22 00:01:10,600 --> 00:01:11,080 Speaker 1: Sounds good. 23 00:01:11,080 --> 00:01:14,480 Speaker 4: Popline revenue came in twenty eight point four billion topping estimates. 24 00:01:14,480 --> 00:01:16,880 Speaker 4: Sounds good, I know, but I guess investors were hung 25 00:01:16,959 --> 00:01:19,600 Speaker 4: up on that one. Downside, another news that made headlines 26 00:01:19,680 --> 00:01:22,160 Speaker 4: is they're keeping their head count in checks, so they're 27 00:01:22,200 --> 00:01:25,360 Speaker 4: letting attrition lower over time. I think that's one of 28 00:01:25,400 --> 00:01:28,360 Speaker 4: the big news because a lot of companies are just 29 00:01:28,480 --> 00:01:34,000 Speaker 4: laying off personal friends are getting impacted, are they, yes, Oh, 30 00:01:34,200 --> 00:01:37,559 Speaker 4: not from Bank of America, Okay, just in general jignment. 31 00:01:37,280 --> 00:01:39,319 Speaker 3: But you know banks, and I know you've got City 32 00:01:39,319 --> 00:01:41,520 Speaker 3: Group that you've also been looking at. I mean, these 33 00:01:41,520 --> 00:01:43,240 Speaker 3: are names that have been on a tear and done 34 00:01:43,280 --> 00:01:45,160 Speaker 3: really well. So it's something that came up in one 35 00:01:45,200 --> 00:01:48,320 Speaker 3: of our earlier conversations about the valuations on some of 36 00:01:48,360 --> 00:01:51,280 Speaker 3: these names. They just run up a lot. So, as 37 00:01:51,320 --> 00:01:53,640 Speaker 3: you said, they beat on a lot of different Metricyes, 38 00:01:53,920 --> 00:01:57,640 Speaker 3: so maybe it's just a case of evaluation and so on. 39 00:01:57,720 --> 00:01:59,600 Speaker 4: And it reminds me of tech firms. They're almost two 40 00:01:59,640 --> 00:02:02,960 Speaker 4: priced for perfection. The expectations are so high that even 41 00:02:03,040 --> 00:02:06,200 Speaker 4: good isn't good enough. So City the stock and the 42 00:02:06,280 --> 00:02:08,840 Speaker 4: lower for the day. Also the pullback comes after top 43 00:02:08,880 --> 00:02:13,480 Speaker 4: executives tempered investor expectations, even as the bank again reported 44 00:02:13,520 --> 00:02:15,799 Speaker 4: forth quite a result that beat estimates. So during a 45 00:02:15,840 --> 00:02:18,959 Speaker 4: COVID investors c Jane Fraser and CEE if oh Mark 46 00:02:19,000 --> 00:02:20,680 Speaker 4: Mason struck a cautious tone. 47 00:02:21,160 --> 00:02:22,880 Speaker 1: They said that their progress towards. 48 00:02:22,560 --> 00:02:25,680 Speaker 4: Meeting regulatory requirements and cutting costs may take time, and 49 00:02:25,720 --> 00:02:29,240 Speaker 4: they also trimmed their efficiency ratio, so they did stop 50 00:02:29,280 --> 00:02:32,000 Speaker 4: short of saying that City Group would clear its regulatory 51 00:02:32,040 --> 00:02:35,160 Speaker 4: penalties this year. Again, it's Mike Mayo, Wells Fargo analyst 52 00:02:35,160 --> 00:02:37,680 Speaker 4: who's very well known in this space. I mean, I 53 00:02:37,800 --> 00:02:39,840 Speaker 4: credit this to him because he asked the question on 54 00:02:39,840 --> 00:02:42,080 Speaker 4: whether they will see that happening, and Jane Fraser said, 55 00:02:42,200 --> 00:02:44,640 Speaker 4: I wouldn't go quite as far as you, and she 56 00:02:44,720 --> 00:02:48,600 Speaker 4: said that timing ultimately rests would regulator. So the stock 57 00:02:48,840 --> 00:02:50,920 Speaker 4: is down and Fraser has been with the bank for 58 00:02:50,960 --> 00:02:52,880 Speaker 4: nearly five years and I feel like she steered a 59 00:02:52,960 --> 00:02:55,840 Speaker 4: bank toward a really turbulent time and now it's in 60 00:02:55,880 --> 00:02:56,600 Speaker 4: a better position. 61 00:02:56,680 --> 00:02:58,080 Speaker 3: I still feel like she's a new CEO. 62 00:02:58,240 --> 00:03:00,400 Speaker 1: Yes, I do too, compared to other. 63 00:03:02,080 --> 00:03:06,280 Speaker 2: Hey, let's talk a little bit about Royal Caribbean cruises. 64 00:03:06,400 --> 00:03:08,920 Speaker 3: This is a favorite of Carol Master, who likes to 65 00:03:08,960 --> 00:03:13,360 Speaker 3: hit the high seats. To Tarlie in particular, Yeah, I 66 00:03:13,400 --> 00:03:15,800 Speaker 3: do love hitting the high seas, not necessarily on a 67 00:03:15,880 --> 00:03:18,760 Speaker 3: massive ship. But yes, you want to be the you're 68 00:03:18,840 --> 00:03:21,400 Speaker 3: the cap, not of this massive kind of the. 69 00:03:21,320 --> 00:03:23,239 Speaker 1: First made a crew, the cap. 70 00:03:24,240 --> 00:03:26,560 Speaker 3: Don't tell my HUSBANDE that never been on a cruise. 71 00:03:26,560 --> 00:03:29,919 Speaker 1: No, maybe, yes, that's just I like the land. 72 00:03:30,280 --> 00:03:32,040 Speaker 4: I could have gone all in on banks today, but 73 00:03:32,120 --> 00:03:35,000 Speaker 4: you know, why not end on something fun although the 74 00:03:35,040 --> 00:03:37,480 Speaker 4: stock is not that fun today down by four percent. 75 00:03:37,720 --> 00:03:39,280 Speaker 1: We have City analyst James. 76 00:03:39,000 --> 00:03:42,400 Speaker 4: Hardenman issuing a downside thirty day short term view on 77 00:03:42,560 --> 00:03:45,360 Speaker 4: the cruise operator, and that's ahead of the quarterly report 78 00:03:45,480 --> 00:03:48,240 Speaker 4: later this month. So he said there are enough indicators 79 00:03:48,280 --> 00:03:52,080 Speaker 4: like pricing, promotions, management commentary to deduce that either the 80 00:03:52,120 --> 00:03:57,400 Speaker 4: demand environment has decelerated or the supply environment has gotten crowded. 81 00:03:57,520 --> 00:04:00,920 Speaker 4: So that's that's what he's downgrading and sweaking his estimates 82 00:04:00,920 --> 00:04:03,800 Speaker 4: because he said that it's a more conservative. 83 00:04:03,320 --> 00:04:09,320 Speaker 2: About Bloombomberg the Stockmovers report from Bloomberg Radio. Check back 84 00:04:09,320 --> 00:04:11,560 Speaker 2: with us throughout the day for the latest roundup of 85 00:04:11,640 --> 00:04:14,920 Speaker 2: companies making news. On Wall Street and for the latest 86 00:04:14,960 --> 00:04:19,160 Speaker 2: market moving headlines. Listen to Bloomberg Radio Live. Catch us 87 00:04:19,160 --> 00:04:22,919 Speaker 2: on YouTube, Bloomberg dot com, and on Applecarplay and Android 88 00:04:22,960 --> 00:04:24,919 Speaker 2: Auto with the Bloomberg Business app.