1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,720 --> 00:00:18,959 Speaker 3: Let's take a look now at some stocks on the 5 00:00:18,960 --> 00:00:21,720 Speaker 3: move today. I'm Katie Greifeld and we're joined by managing 6 00:00:21,840 --> 00:00:25,479 Speaker 3: editor for Bloomberg Markets Live Blog, Christine Aquino. Christine, what 7 00:00:25,480 --> 00:00:26,200 Speaker 3: do you have an eye on? 8 00:00:26,480 --> 00:00:28,960 Speaker 1: Well, Katie, I'm going to look at Kraft Heins this afternoon. 9 00:00:29,000 --> 00:00:31,800 Speaker 1: We did have some breaking news from the Wall Street Journal. 10 00:00:31,840 --> 00:00:35,479 Speaker 1: So Kraft Heigns ticker KHC. We're seeing those shares actually 11 00:00:35,560 --> 00:00:37,879 Speaker 1: picking up some momentum of one point two percent at 12 00:00:37,880 --> 00:00:40,839 Speaker 1: the moment, and that is because Wall Street Journal reported 13 00:00:41,000 --> 00:00:43,640 Speaker 1: that it is closing in on a plan to break 14 00:00:43,720 --> 00:00:47,239 Speaker 1: itself up, according to sources. So remember we did get 15 00:00:47,360 --> 00:00:51,280 Speaker 1: reports earlier in July. Bloomer News reported that there was 16 00:00:51,320 --> 00:00:54,560 Speaker 1: a plan being put into place to break up the 17 00:00:54,640 --> 00:00:57,280 Speaker 1: company and they were weighing whether to spin off a 18 00:00:57,320 --> 00:01:00,560 Speaker 1: large part of its grocery business into a new entity. 19 00:01:00,680 --> 00:01:03,200 Speaker 1: So the latest from the Journal is that that transaction 20 00:01:03,560 --> 00:01:06,840 Speaker 1: could be finalized and announced as early as next week, 21 00:01:07,000 --> 00:01:09,280 Speaker 1: but of course, with any m and a deal. We 22 00:01:09,440 --> 00:01:13,320 Speaker 1: know that it could still be subject change and timing 23 00:01:13,400 --> 00:01:15,880 Speaker 1: could still be different at the last minute, but that 24 00:01:16,000 --> 00:01:19,080 Speaker 1: is the reporting at the moment. An investor seeming to 25 00:01:19,200 --> 00:01:23,200 Speaker 1: like this because year today that share is down nine percent, 26 00:01:23,319 --> 00:01:26,000 Speaker 1: nearly nine percent, so it's really been having a hard time. 27 00:01:26,200 --> 00:01:28,959 Speaker 3: Yeah, and it's an interesting space right now. So you 28 00:01:28,959 --> 00:01:31,000 Speaker 3: have Kraft Tigns trying to break themselves up. Then you 29 00:01:31,040 --> 00:01:33,200 Speaker 3: think about some of the other deals that we learned 30 00:01:33,240 --> 00:01:36,280 Speaker 3: about this week carried Doctor Pepper going to buy Jdepte, 31 00:01:36,360 --> 00:01:40,600 Speaker 3: so companies breaking themselves apart and also combining. So a 32 00:01:40,600 --> 00:01:43,240 Speaker 3: little update there on what's going on with Kraft tigns, 33 00:01:43,319 --> 00:01:45,320 Speaker 3: what's going on with shares of Dell. 34 00:01:45,400 --> 00:01:48,680 Speaker 1: Though Dell is not doing well today, guys, it's down 35 00:01:48,760 --> 00:01:52,200 Speaker 1: more than nine percent as a ticker dee LLL really 36 00:01:52,480 --> 00:01:55,240 Speaker 1: extendos the clients heading into to close here before Labor 37 00:01:55,280 --> 00:01:57,840 Speaker 1: Day weekend, and that is because we did get its 38 00:01:58,000 --> 00:02:02,200 Speaker 1: earnings report. The latest there is that the AI server 39 00:02:02,440 --> 00:02:05,160 Speaker 1: orders slowed down in the second quarter or did see 40 00:02:05,440 --> 00:02:08,800 Speaker 1: a five point six billion figure there versus twelve point 41 00:02:08,840 --> 00:02:12,040 Speaker 1: one billion in a previous period, so that's quite the slowdown. 42 00:02:12,280 --> 00:02:16,160 Speaker 1: Operating margin also undershooting estimates. Anamals were expecting ten point 43 00:02:16,200 --> 00:02:19,680 Speaker 1: three percent. They only reported eight point eight percent. The 44 00:02:19,720 --> 00:02:22,560 Speaker 1: silver lining though, is that it did boost its annual 45 00:02:22,560 --> 00:02:27,079 Speaker 1: outlook and quarterly sales and profits topped estimates. So JP 46 00:02:27,200 --> 00:02:30,839 Speaker 1: Morgan taking a look at those AI server revenues, they're 47 00:02:30,880 --> 00:02:33,440 Speaker 1: thinking that, you know, there's a more robust outlook for 48 00:02:33,520 --> 00:02:36,639 Speaker 1: the fiscal twenty twenty six and that could raise expectations 49 00:02:36,639 --> 00:02:39,120 Speaker 1: for growth medium term. But in a short term, shares 50 00:02:39,160 --> 00:02:41,079 Speaker 1: are down and investors are not happy. 51 00:02:41,280 --> 00:02:45,240 Speaker 3: Yeah, down nine percent. Really brutal reaction there from Wall Street, 52 00:02:45,320 --> 00:02:48,040 Speaker 3: especially considering that this is a company that raised its 53 00:02:48,080 --> 00:02:51,200 Speaker 3: annual sales projections. But of course that is not where 54 00:02:51,200 --> 00:02:53,840 Speaker 3: the focus is today, just judging by the shares. So 55 00:02:53,880 --> 00:02:56,400 Speaker 3: that's the story with Dell. Bring us home, talk to 56 00:02:56,520 --> 00:02:57,440 Speaker 3: us about Caterpillar. 57 00:02:57,600 --> 00:03:00,960 Speaker 1: Caterpillar takeo. Cat All's in not doing well, shares on 58 00:03:01,080 --> 00:03:03,000 Speaker 1: more than four percent and looks like it's going to 59 00:03:03,040 --> 00:03:06,560 Speaker 1: close down for the first time in three sessions today. 60 00:03:06,840 --> 00:03:10,399 Speaker 1: Now Caterpillar warning, of course, all about tariffs, and they're 61 00:03:10,440 --> 00:03:12,840 Speaker 1: saying that tariffs are going to cost them as much 62 00:03:12,880 --> 00:03:15,760 Speaker 1: as one point eight billion for the full year, and 63 00:03:15,800 --> 00:03:19,200 Speaker 1: then the incremental impact for the third quarter, they're estimating 64 00:03:19,200 --> 00:03:22,040 Speaker 1: at around five hundred to six hundred million dollars, and 65 00:03:22,120 --> 00:03:25,800 Speaker 1: so that does not sound like a good thing, especially 66 00:03:25,880 --> 00:03:28,240 Speaker 1: for a company that was once considered a bell weather 67 00:03:28,280 --> 00:03:31,920 Speaker 1: for the American economy. Right yeah, and you know, Bloomer 68 00:03:32,000 --> 00:03:36,240 Speaker 1: Intelligence saying though that they are still optimistic that earnings 69 00:03:36,240 --> 00:03:39,560 Speaker 1: will bottom this year and that obviously the drag from 70 00:03:39,720 --> 00:03:43,960 Speaker 1: tariffs is bigger than anticipated previously, but they did revise 71 00:03:44,160 --> 00:03:48,400 Speaker 1: their This revised outlook will impact operating margin, and they're 72 00:03:48,400 --> 00:03:50,200 Speaker 1: not expecting that to be near to bottom of its 73 00:03:50,200 --> 00:03:51,400 Speaker 1: target range. 74 00:03:52,160 --> 00:03:56,200 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 75 00:03:56,280 --> 00:03:58,840 Speaker 2: us throughout the day for the latest roundup of companies 76 00:03:58,920 --> 00:04:02,000 Speaker 2: making news on Wall Street and for the latest market 77 00:04:02,040 --> 00:04:06,480 Speaker 2: moving headlines. 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