Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look now at some stocks on the
Speaker 3: move today. I'm Katie Greifeld and we're joined by managing
Speaker 3: editor for Bloomberg Markets Live Blog, Christine Aquino. Christine, what
Speaker 3: do you have an eye on?
Speaker 1: Well, Katie, I'm going to look at Kraft Heins this afternoon.
Speaker 1: We did have some breaking news from the Wall Street Journal.
Speaker 1: So Kraft Heigns ticker KHC. We're seeing those shares actually
Speaker 1: picking up some momentum of one point two percent at
Speaker 1: the moment, and that is because Wall Street Journal reported
Speaker 1: that it is closing in on a plan to break
Speaker 1: itself up, according to sources. So remember we did get
Speaker 1: reports earlier in July. Bloomer News reported that there was
Speaker 1: a plan being put into place to break up the
Speaker 1: company and they were weighing whether to spin off a
Speaker 1: large part of its grocery business into a new entity.
Speaker 1: So the latest from the Journal is that that transaction
Speaker 1: could be finalized and announced as early as next week,
Speaker 1: but of course, with any m and a deal. We
Speaker 1: know that it could still be subject change and timing
Speaker 1: could still be different at the last minute, but that
Speaker 1: is the reporting at the moment. An investor seeming to
Speaker 1: like this because year today that share is down nine percent,
Speaker 1: nearly nine percent, so it's really been having a hard time.
Speaker 3: Yeah, and it's an interesting space right now. So you
Speaker 3: have Kraft Tigns trying to break themselves up. Then you
Speaker 3: think about some of the other deals that we learned
Speaker 3: about this week carried Doctor Pepper going to buy Jdepte,
Speaker 3: so companies breaking themselves apart and also combining. So a
Speaker 3: little update there on what's going on with Kraft tigns,
Speaker 3: what's going on with shares of Dell.
Speaker 1: Though Dell is not doing well today, guys, it's down
Speaker 1: more than nine percent as a ticker dee LLL really
Speaker 1: extendos the clients heading into to close here before Labor
Speaker 1: Day weekend, and that is because we did get its
Speaker 1: earnings report. The latest there is that the AI server
Speaker 1: orders slowed down in the second quarter or did see
Speaker 1: a five point six billion figure there versus twelve point
Speaker 1: one billion in a previous period, so that's quite the slowdown.
Speaker 1: Operating margin also undershooting estimates. Anamals were expecting ten point
Speaker 1: three percent. They only reported eight point eight percent. The
Speaker 1: silver lining though, is that it did boost its annual
Speaker 1: outlook and quarterly sales and profits topped estimates. So JP
Speaker 1: Morgan taking a look at those AI server revenues, they're
Speaker 1: thinking that, you know, there's a more robust outlook for
Speaker 1: the fiscal twenty twenty six and that could raise expectations
Speaker 1: for growth medium term. But in a short term, shares
Speaker 1: are down and investors are not happy.
Speaker 3: Yeah, down nine percent. Really brutal reaction there from Wall Street,
Speaker 3: especially considering that this is a company that raised its
Speaker 3: annual sales projections. But of course that is not where
Speaker 3: the focus is today, just judging by the shares. So
Speaker 3: that's the story with Dell. Bring us home, talk to
Speaker 3: us about Caterpillar.
Speaker 1: Caterpillar takeo. Cat All's in not doing well, shares on
Speaker 1: more than four percent and looks like it's going to
Speaker 1: close down for the first time in three sessions today.
Speaker 1: Now Caterpillar warning, of course, all about tariffs, and they're
Speaker 1: saying that tariffs are going to cost them as much
Speaker 1: as one point eight billion for the full year, and
Speaker 1: then the incremental impact for the third quarter, they're estimating
Speaker 1: at around five hundred to six hundred million dollars, and
Speaker 1: so that does not sound like a good thing, especially
Speaker 1: for a company that was once considered a bell weather
Speaker 1: for the American economy. Right yeah, and you know, Bloomer
Speaker 1: Intelligence saying though that they are still optimistic that earnings
Speaker 1: will bottom this year and that obviously the drag from
Speaker 1: tariffs is bigger than anticipated previously, but they did revise
Speaker 1: their This revised outlook will impact operating margin, and they're
Speaker 1: not expecting that to be near to bottom of its
Speaker 1: target range.
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