WEBVTT - Kraft Heinz Could Split, Dell Slides, Caterpillar Lower

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

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<v Speaker 2>The 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 3>Let's take a look now at some stocks on the

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<v Speaker 3>move today. I'm Katie Greifeld and we're joined by managing

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<v Speaker 3>editor for Bloomberg Markets Live Blog, Christine Aquino. Christine, what

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<v Speaker 3>do you have an eye on?

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<v Speaker 1>Well, Katie, I'm going to look at Kraft Heins this afternoon.

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<v Speaker 1>We did have some breaking news from the Wall Street Journal.

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<v Speaker 1>So Kraft Heigns ticker KHC. We're seeing those shares actually

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<v Speaker 1>picking up some momentum of one point two percent at

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<v Speaker 1>the moment, and that is because Wall Street Journal reported

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<v Speaker 1>that it is closing in on a plan to break

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<v Speaker 1>itself up, according to sources. So remember we did get

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<v Speaker 1>reports earlier in July. Bloomer News reported that there was

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<v Speaker 1>a plan being put into place to break up the

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<v Speaker 1>company and they were weighing whether to spin off a

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<v Speaker 1>large part of its grocery business into a new entity.

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<v Speaker 1>So the latest from the Journal is that that transaction

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<v Speaker 1>could be finalized and announced as early as next week,

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<v Speaker 1>but of course, with any m and a deal. We

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<v Speaker 1>know that it could still be subject change and timing

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<v Speaker 1>could still be different at the last minute, but that

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<v Speaker 1>is the reporting at the moment. An investor seeming to

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<v Speaker 1>like this because year today that share is down nine percent,

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<v Speaker 1>nearly nine percent, so it's really been having a hard time.

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<v Speaker 3>Yeah, and it's an interesting space right now. So you

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<v Speaker 3>have Kraft Tigns trying to break themselves up. Then you

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<v Speaker 3>think about some of the other deals that we learned

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<v Speaker 3>about this week carried Doctor Pepper going to buy Jdepte,

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<v Speaker 3>so companies breaking themselves apart and also combining. So a

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<v Speaker 3>little update there on what's going on with Kraft tigns,

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<v Speaker 3>what's going on with shares of Dell.

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<v Speaker 1>Though Dell is not doing well today, guys, it's down

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<v Speaker 1>more than nine percent as a ticker dee LLL really

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<v Speaker 1>extendos the clients heading into to close here before Labor

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<v Speaker 1>Day weekend, and that is because we did get its

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<v Speaker 1>earnings report. The latest there is that the AI server

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<v Speaker 1>orders slowed down in the second quarter or did see

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<v Speaker 1>a five point six billion figure there versus twelve point

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<v Speaker 1>one billion in a previous period, so that's quite the slowdown.

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<v Speaker 1>Operating margin also undershooting estimates. Anamals were expecting ten point

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<v Speaker 1>three percent. They only reported eight point eight percent. The

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<v Speaker 1>silver lining though, is that it did boost its annual

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<v Speaker 1>outlook and quarterly sales and profits topped estimates. So JP

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<v Speaker 1>Morgan taking a look at those AI server revenues, they're

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<v Speaker 1>thinking that, you know, there's a more robust outlook for

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<v Speaker 1>the fiscal twenty twenty six and that could raise expectations

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<v Speaker 1>for growth medium term. But in a short term, shares

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<v Speaker 1>are down and investors are not happy.

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<v Speaker 3>Yeah, down nine percent. Really brutal reaction there from Wall Street,

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<v Speaker 3>especially considering that this is a company that raised its

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<v Speaker 3>annual sales projections. But of course that is not where

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<v Speaker 3>the focus is today, just judging by the shares. So

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<v Speaker 3>that's the story with Dell. Bring us home, talk to

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<v Speaker 3>us about Caterpillar.

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<v Speaker 1>Caterpillar takeo. Cat All's in not doing well, shares on

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<v Speaker 1>more than four percent and looks like it's going to

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<v Speaker 1>close down for the first time in three sessions today.

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<v Speaker 1>Now Caterpillar warning, of course, all about tariffs, and they're

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<v Speaker 1>saying that tariffs are going to cost them as much

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<v Speaker 1>as one point eight billion for the full year, and

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<v Speaker 1>then the incremental impact for the third quarter, they're estimating

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<v Speaker 1>at around five hundred to six hundred million dollars, and

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<v Speaker 1>so that does not sound like a good thing, especially

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<v Speaker 1>for a company that was once considered a bell weather

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<v Speaker 1>for the American economy. Right yeah, and you know, Bloomer

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<v Speaker 1>Intelligence saying though that they are still optimistic that earnings

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<v Speaker 1>will bottom this year and that obviously the drag from

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<v Speaker 1>tariffs is bigger than anticipated previously, but they did revise

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<v Speaker 1>their This revised outlook will impact operating margin, and they're

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<v Speaker 1>not expecting that to be near to bottom of its

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<v Speaker 1>target range.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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