1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,480 --> 00:00:18,600 Speaker 3: Let's take a look at some stocks on the move today. 5 00:00:18,600 --> 00:00:22,160 Speaker 3: I'm Nathan Hager, joined by Bloomberg's Valerie Titel. Starting off 6 00:00:22,200 --> 00:00:25,400 Speaker 3: with the stock of the day that's dragging tech shares lower. 7 00:00:25,600 --> 00:00:30,520 Speaker 3: Yesterday was Oracle and Valerie. This morning, it's Broadcom. Good morning, Hey. 8 00:00:30,440 --> 00:00:33,600 Speaker 1: Good morning, Nathan. Happy Friday. Yes, another down day for 9 00:00:33,760 --> 00:00:35,680 Speaker 1: the NASDAG it looks like we're headed for on the 10 00:00:35,720 --> 00:00:39,520 Speaker 1: back of Broadcom earnings and the shares dropping around six 11 00:00:39,600 --> 00:00:42,680 Speaker 1: percent so far in pre market trade. They gave an 12 00:00:42,720 --> 00:00:46,479 Speaker 1: outlook that essentially just failed to meet expectations. The market 13 00:00:46,520 --> 00:00:50,040 Speaker 1: was disappointed to hear that the order backlog is only 14 00:00:50,479 --> 00:00:54,240 Speaker 1: seventy three billion dollars over the next six quarters. And 15 00:00:54,320 --> 00:00:57,720 Speaker 1: to add to that, the CEO during the conference call 16 00:00:57,760 --> 00:01:01,200 Speaker 1: with analysts failed to give a revenue forst for twenty 17 00:01:01,240 --> 00:01:04,679 Speaker 1: twenty six, just giving one for Q one of next year. 18 00:01:04,720 --> 00:01:07,720 Speaker 1: And I think all this combined just highlighted concerns that 19 00:01:07,760 --> 00:01:11,480 Speaker 1: have been lingering over Broadcom, that of tightening profit margins 20 00:01:11,680 --> 00:01:15,360 Speaker 1: for the chip maker. Broadcom does compete with Nvidia in 21 00:01:15,400 --> 00:01:18,720 Speaker 1: the highly competitive AI chip market space, so Broadcom on 22 00:01:18,720 --> 00:01:21,080 Speaker 1: a back foot, leading the nasdak lower down six percent. 23 00:01:21,319 --> 00:01:25,000 Speaker 3: I meanwhile on the front foot of all stocks. Lulu 24 00:01:25,080 --> 00:01:27,400 Speaker 3: Lemon for a change, Valerie. 25 00:01:26,959 --> 00:01:29,520 Speaker 1: Yeah, lul Lemon is in the green after earnings, up 26 00:01:29,560 --> 00:01:32,640 Speaker 1: nearly ten percent in pre market trade. They raised their 27 00:01:32,680 --> 00:01:35,959 Speaker 1: full year outlook and their sales beat expectations in the 28 00:01:36,000 --> 00:01:39,440 Speaker 1: third quarter, which was driven by growth in international markets. 29 00:01:39,480 --> 00:01:43,480 Speaker 1: But the juicy announcement came later that their CEO will 30 00:01:43,480 --> 00:01:47,240 Speaker 1: be stepping down in January. Now the retailer has yet 31 00:01:47,280 --> 00:01:51,000 Speaker 1: to find a replacement, but I think the market and 32 00:01:51,200 --> 00:01:54,160 Speaker 1: analysts investors are kind of excited about the prospect of 33 00:01:54,160 --> 00:01:57,440 Speaker 1: a new CEO, perhaps a new strategy after a period 34 00:01:57,480 --> 00:02:00,200 Speaker 1: of sluggish growth for the company. The stock is on 35 00:02:00,240 --> 00:02:02,520 Speaker 1: some fifty percent year to date, and it's been struggling 36 00:02:02,600 --> 00:02:06,279 Speaker 1: with sales growth recently. That really did peak after COVID 37 00:02:06,280 --> 00:02:09,639 Speaker 1: when we were all wearing y yoga clothes at home 38 00:02:09,639 --> 00:02:13,359 Speaker 1: in our couch. Since then, really the sales growth through 39 00:02:13,400 --> 00:02:15,160 Speaker 1: Lemon hasn't been pretty, and I think the market is 40 00:02:15,200 --> 00:02:18,240 Speaker 1: excited that perhaps the leadership change could shake things up 41 00:02:18,280 --> 00:02:20,480 Speaker 1: at the at leisure ware retailer. 42 00:02:20,320 --> 00:02:23,919 Speaker 3: And some regulatory change, at least reports of it, seems 43 00:02:23,919 --> 00:02:26,880 Speaker 3: to be met pretty well by investors in UBS. 44 00:02:26,960 --> 00:02:30,359 Speaker 1: Over in Switzerland, Ubs hitting a seventeen year high, the 45 00:02:30,440 --> 00:02:33,600 Speaker 1: highest price for UBS since two thousand and eight, up 46 00:02:33,639 --> 00:02:36,480 Speaker 1: three and a half percent in trade in Switzerland, and 47 00:02:36,520 --> 00:02:40,440 Speaker 1: this comes after some reports that Swiss lawmakers have proposed 48 00:02:40,560 --> 00:02:44,760 Speaker 1: allowing UBS to use at one bonds instead of equity 49 00:02:45,160 --> 00:02:49,440 Speaker 1: to meet capital requirements. Now, these proposals could give us 50 00:02:49,440 --> 00:02:52,920 Speaker 1: a way out of this political standoff between UBS and 51 00:02:53,000 --> 00:02:56,480 Speaker 1: the Swiss regulators. Remember it was reported earlier that UBS 52 00:02:56,480 --> 00:02:59,400 Speaker 1: had had talks with Treasury Secorary Scott Bessett looking at 53 00:02:59,440 --> 00:03:03,679 Speaker 1: moving there headquarters out of Switzerland to other areas which 54 00:03:03,720 --> 00:03:07,280 Speaker 1: have less onerous legislation. And this comes after a recent 55 00:03:07,320 --> 00:03:11,640 Speaker 1: effort to tighten bank rolls in Switzerland. The planned capital 56 00:03:11,680 --> 00:03:14,600 Speaker 1: reforms have really been a big cloud over UBS's share 57 00:03:14,639 --> 00:03:18,399 Speaker 1: price ever since the Swiss government started discussing this last year. 58 00:03:18,440 --> 00:03:21,120 Speaker 1: But it seems like UBS is reacting very positively to 59 00:03:21,200 --> 00:03:23,880 Speaker 1: this new proposal, which would give it some reprief on 60 00:03:23,919 --> 00:03:26,000 Speaker 1: the regulation front. They're up three and a half percent. 61 00:03:26,400 --> 00:03:28,920 Speaker 3: Speaking of repriefs, there's some reports out there that President 62 00:03:28,919 --> 00:03:33,240 Speaker 3: Trump is thinking of reclassifying cannabis, maybe giving the regulations 63 00:03:33,240 --> 00:03:36,080 Speaker 3: a little bit of relief there. What's that doing for 64 00:03:36,120 --> 00:03:37,520 Speaker 3: cannabis stocks this morning? 65 00:03:37,800 --> 00:03:42,000 Speaker 1: They are surging. We have Tilray brands up twenty eight percent, 66 00:03:42,160 --> 00:03:46,120 Speaker 1: canopy growth of twenty two percent, and various others having 67 00:03:46,160 --> 00:03:48,560 Speaker 1: double digit gains this morning. And this is on the 68 00:03:48,600 --> 00:03:52,400 Speaker 1: back of reporting that President Trump is expected to direct 69 00:03:52,400 --> 00:03:57,680 Speaker 1: his administration to reclassify marijuana as a less onerous drug. 70 00:03:57,720 --> 00:04:00,880 Speaker 1: The change would classify cannabis and the same bucket as 71 00:04:00,920 --> 00:04:05,160 Speaker 1: codeine and anabolic steroids rather than where it's currently classified, 72 00:04:05,200 --> 00:04:07,960 Speaker 1: which is next to heroin and LSD. Now, the Trump 73 00:04:07,960 --> 00:04:10,560 Speaker 1: administration has sought to crack down on drug trafficking and 74 00:04:10,600 --> 00:04:13,480 Speaker 1: taken another a tougher stance on other drugs, one of 75 00:04:13,480 --> 00:04:17,960 Speaker 1: those being fensanyl, which I guess caused the tariff explosion 76 00:04:18,160 --> 00:04:19,560 Speaker 1: with China earlier this year. 77 00:04:20,760 --> 00:04:24,800 Speaker 2: This Stock Movers report from Bloomberg Radio. Check back with 78 00:04:24,880 --> 00:04:27,440 Speaker 2: us throughout the day for the latest roundup of companies 79 00:04:27,520 --> 00:04:30,640 Speaker 2: making news on Wall Street and for the latest market 80 00:04:30,640 --> 00:04:35,120 Speaker 2: moving headlines. Listen to Bloomberg Radio live. Catch us on YouTube, 81 00:04:35,200 --> 00:04:38,719 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 82 00:04:38,800 --> 00:04:40,279 Speaker 2: the Bloomberg Business app.