1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios podcasts, radio News. 2 00:00:08,640 --> 00:00:13,040 Speaker 2: The Stock Movers podcast, your roundup of companies making moves 3 00:00:13,080 --> 00:00:16,480 Speaker 2: in the stock market, harnessing the power of Bloomberg data. 4 00:00:16,920 --> 00:00:18,880 Speaker 3: Let's take a look at the stocks on the move today, 5 00:00:18,880 --> 00:00:21,240 Speaker 3: Ampaul Swinge alongside Isabelle Lee, and we're joined by our 6 00:00:21,320 --> 00:00:25,319 Speaker 3: old friend, the Alexander smon ooa Bloomberg News Alexander, what 7 00:00:25,320 --> 00:00:25,760 Speaker 3: are you looking at? 8 00:00:25,920 --> 00:00:27,800 Speaker 1: Always great to be on with you, guys. So the 9 00:00:27,840 --> 00:00:31,760 Speaker 1: memestock revival is stretching into a second day today. Amateur 10 00:00:31,760 --> 00:00:35,200 Speaker 1: traders are once again piling into beaten down companies, heavily 11 00:00:35,240 --> 00:00:38,200 Speaker 1: shorted companies like it's twenty twenty one all over again 12 00:00:38,240 --> 00:00:39,920 Speaker 1: in an effort to get rich quick. And some of 13 00:00:39,920 --> 00:00:43,160 Speaker 1: the names that are moving today are Go Pro, Krispy Kreme, 14 00:00:43,240 --> 00:00:45,239 Speaker 1: Beyond Meat. Just take a look at the swing and 15 00:00:45,280 --> 00:00:47,519 Speaker 1: go Pro right now up forty five percent. It was 16 00:00:47,600 --> 00:00:49,879 Speaker 1: up as much as seventy three percent earlier into the 17 00:00:49,960 --> 00:00:52,159 Speaker 1: trading session. And again, this has to do with the 18 00:00:52,200 --> 00:00:56,720 Speaker 1: euphoria that is spreading across broader markets. More broadly, stocks 19 00:00:56,720 --> 00:00:59,480 Speaker 1: are of course, our trading at record high's. Bitcoin has 20 00:00:59,560 --> 00:01:02,600 Speaker 1: doubled in the past year. You're seeing SPACs all the 21 00:01:02,640 --> 00:01:05,640 Speaker 1: rage again, and so it's not surprising that traders are 22 00:01:05,680 --> 00:01:09,120 Speaker 1: kind of this animal spirit is permeating into more speculative 23 00:01:09,120 --> 00:01:11,320 Speaker 1: corners of the market. They're looking at where to put 24 00:01:11,360 --> 00:01:14,000 Speaker 1: their money beyond companies like tech that have run up 25 00:01:14,040 --> 00:01:17,880 Speaker 1: so much. They're scouring Wall Street bets, forums on Reddit 26 00:01:17,920 --> 00:01:21,720 Speaker 1: and finding these companies actually. Interestingly, JP Morgan's trading desk 27 00:01:21,760 --> 00:01:25,120 Speaker 1: today flags that their internal basket of meme stocks is 28 00:01:25,200 --> 00:01:28,480 Speaker 1: up seven point nine percent month to date versus the 29 00:01:28,520 --> 00:01:31,440 Speaker 1: S and P five hundred to one point seven percent advanced. 30 00:01:31,480 --> 00:01:34,040 Speaker 1: So really a testament of the euphoria that is happening 31 00:01:34,080 --> 00:01:36,640 Speaker 1: across markets. If you look at Cole's yesterday, the beaten 32 00:01:36,640 --> 00:01:40,240 Speaker 1: down retailer that kind of led this revival, about forty 33 00:01:40,280 --> 00:01:43,040 Speaker 1: eight percent of Coal's float is sold short. That's according 34 00:01:43,040 --> 00:01:45,279 Speaker 1: to data from S three Partners, meaning that it is 35 00:01:45,319 --> 00:01:47,880 Speaker 1: being used to bet against the stock price. By comparison, 36 00:01:48,080 --> 00:01:50,760 Speaker 1: it's twenty percent from for game Stop. So a lot 37 00:01:50,760 --> 00:01:53,680 Speaker 1: of these meme traders are finding heavily shorted companies, and 38 00:01:53,760 --> 00:01:56,880 Speaker 1: you know, a short squeeze is kind of the culprit 39 00:01:56,920 --> 00:01:57,800 Speaker 1: of some of these names. 40 00:01:58,240 --> 00:02:00,200 Speaker 2: What about Morgan, Stanley what's happening. 41 00:02:00,200 --> 00:02:03,560 Speaker 1: There, Yeah, a little bit more serious than meme stocks. 42 00:02:03,880 --> 00:02:08,040 Speaker 1: It is being probed by the Financial industry regulatory Authority 43 00:02:08,040 --> 00:02:11,639 Speaker 1: over it's vetting of clients for risk of money laundering. 44 00:02:11,639 --> 00:02:13,840 Speaker 1: This is according to report from The Wall Street Journal. 45 00:02:14,120 --> 00:02:18,079 Speaker 1: It focuses on practices that happened from October twenty twenty 46 00:02:18,080 --> 00:02:21,679 Speaker 1: one through a September twenty twenty four. Morgan Stanley is 47 00:02:21,680 --> 00:02:26,360 Speaker 1: already facing potential fines from federal investigations into its anti 48 00:02:26,680 --> 00:02:31,360 Speaker 1: money laundering practices, specifically in its wealth management use unit meeting. 49 00:02:31,400 --> 00:02:33,520 Speaker 1: It's not doing enough to kind of vet clients who 50 00:02:33,560 --> 00:02:36,959 Speaker 1: could potentially be doing wrongdoing. The stock right now is 51 00:02:37,000 --> 00:02:39,680 Speaker 1: actually a little change, not moving much on this report. 52 00:02:39,720 --> 00:02:39,960 Speaker 2: All right. 53 00:02:40,000 --> 00:02:42,079 Speaker 3: So I'm the only one in this room that did 54 00:02:42,200 --> 00:02:45,000 Speaker 3: internal audit for a brokerage firm, And I can tell 55 00:02:45,040 --> 00:02:46,840 Speaker 3: you when we go out to a branch in the 56 00:02:46,840 --> 00:02:49,960 Speaker 3: middle of nowhere, probably we'd be there for a week. 57 00:02:50,639 --> 00:02:52,640 Speaker 3: I would say at least half of our time. This 58 00:02:52,680 --> 00:02:57,919 Speaker 3: is way back in the eighties, was money laundering stuff? Wow? Yeah, 59 00:02:57,960 --> 00:03:01,280 Speaker 3: And I'm sure it's even way more today's. I'd be surprised, 60 00:03:01,320 --> 00:03:04,799 Speaker 3: because I mean, these brokers firms take that stuff so seriously, 61 00:03:04,840 --> 00:03:07,960 Speaker 3: and they have so many controls on you know, if 62 00:03:07,960 --> 00:03:10,440 Speaker 3: there was anything there at any firm, I would it 63 00:03:10,480 --> 00:03:13,320 Speaker 3: has to be fraud because their controls are so tight. 64 00:03:13,360 --> 00:03:14,639 Speaker 3: So it's interesting to see how that place. 65 00:03:14,760 --> 00:03:17,079 Speaker 1: And the response today for Morgan Stanley was that it's 66 00:03:17,080 --> 00:03:20,240 Speaker 1: made so much investment into anti money lawn during practices, 67 00:03:20,240 --> 00:03:22,720 Speaker 1: but clearly apparently that's not an all right Texas Instruments, 68 00:03:23,040 --> 00:03:26,840 Speaker 1: So that company is tumbling today after stoking fears that 69 00:03:27,160 --> 00:03:29,760 Speaker 1: the terror fueled surge and demand is likely to be 70 00:03:29,840 --> 00:03:32,560 Speaker 1: short lived. This is the key chit maker, of course, 71 00:03:32,600 --> 00:03:36,480 Speaker 1: for producers of cars and factory equipment. The company did 72 00:03:36,560 --> 00:03:40,560 Speaker 1: issue a third quarter forecast that beat most estimates, but 73 00:03:40,600 --> 00:03:42,320 Speaker 1: the outlook was a little bit more guarded that some 74 00:03:42,400 --> 00:03:45,320 Speaker 1: investors had hoped for. Really interesting is the stock was 75 00:03:45,360 --> 00:03:48,320 Speaker 1: falling as the earnings call was happening because analysts didn't 76 00:03:48,360 --> 00:03:50,360 Speaker 1: like the tone coming from management that was a little 77 00:03:50,400 --> 00:03:52,520 Speaker 1: bit more negative than they were hoping for. The main 78 00:03:52,560 --> 00:03:55,800 Speaker 1: concern is whether tariffs and trade disputes will hurt sales. 79 00:03:56,320 --> 00:03:58,880 Speaker 1: A sales resurgence that is in its early stages. A 80 00:03:58,920 --> 00:04:01,720 Speaker 1: lot of people think that people, you know, front loaded 81 00:04:01,760 --> 00:04:04,520 Speaker 1: the purchases of chips out of fear that you know 82 00:04:04,640 --> 00:04:08,240 Speaker 1: prices will be higher from tariffs and that might not continue. 83 00:04:08,880 --> 00:04:13,000 Speaker 2: The Stock Movers podcast from Bloomberg Radio. Check back with 84 00:04:13,120 --> 00:04:15,840 Speaker 2: us throughout the day for the latest roundup of companies 85 00:04:15,920 --> 00:04:18,960 Speaker 2: making news on Wall Street and for the latest market 86 00:04:19,000 --> 00:04:23,320 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 87 00:04:23,400 --> 00:04:26,640 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 88 00:04:26,720 --> 00:04:28,159 Speaker 2: the Bloomberg Business app.