WEBVTT - FedEx Jumps; Lennar Lower; Intel Downgrade

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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 1>Let's take a look at some of the stocks on

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<v Speaker 1>the move today. I'm Paulsuni alongside Alexis Christophers and Bloomberg's

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<v Speaker 1>Lisa Matael Lisa, what are you got for s?

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<v Speaker 3>All right? I want to start with FedEx. Take our FDx.

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<v Speaker 3>Their shares have been up as much as five percent

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<v Speaker 3>before the bell. They've kind of slipped back a bet

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<v Speaker 3>a bit too, about one percent. So the big news

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<v Speaker 3>is that they expect this one billion dollars hit from

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<v Speaker 3>trade volatility President Trump Tariff's one thing, but also the

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<v Speaker 3>loss of that key exemption for low value goods. Remember

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<v Speaker 3>that demnimous.

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<v Speaker 4>Rule to Minimus.

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<v Speaker 3>Yes, yes, yes, okay, So a big part of the

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<v Speaker 3>reduction to adjusted operating profit comes from lower shipments from

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<v Speaker 3>China to the US. The CFO put it out there,

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<v Speaker 3>he said about it three hundred million dollars due to

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<v Speaker 3>the higher cost of clearing goods through customs. So that

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<v Speaker 3>was the kind of netive side On the positive side, though,

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<v Speaker 3>they did reinstate their profit and sales forecasts. They said

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<v Speaker 3>revenue is going to grow by four to six percent

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<v Speaker 3>in the current fiscal year. So despite trade pressure, the

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<v Speaker 3>results were kind of enough to kind of boost those

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<v Speaker 3>shares a bit higher. Like I said, they are starting

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<v Speaker 3>to pair back up about one percent. But FedEx is

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<v Speaker 3>just like seen as this predictor where the large economy

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<v Speaker 3>is headed.

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<v Speaker 4>That's what they're seen as a billweather for Shure Weather

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<v Speaker 4>exactly exactly, just like Leonard Okay, for the housing market.

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<v Speaker 3>L e N as the ticker, their shares have been

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<v Speaker 3>down as much as three percent. So it's really the

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<v Speaker 3>sign of a challenging market for home builders. That's what

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<v Speaker 3>they showed. This was despite you had a recent drop

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<v Speaker 3>in mortgaget rates too, so this is kind of showing you,

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<v Speaker 3>you know, the forecast for quarterly home orders they missed

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<v Speaker 3>those estimates. Affordability concerns, unsteady job market, they say, that's

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<v Speaker 3>keeping buyers on the sidelines. Another thing they said builders

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<v Speaker 3>are facing a lot of competition. Also something the supply

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<v Speaker 3>of available resale homes they say have been growing, so

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<v Speaker 3>don't want as many new homes because they have the

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<v Speaker 3>resale ones and in some areas of the Sun Belt markets,

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<v Speaker 3>that's where builders are really busy. The prices are starting

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<v Speaker 3>to drop.

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<v Speaker 1>So those have heard that in Texas. I've heard that

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<v Speaker 1>in Florida. We had some folks. Somebody was in here,

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<v Speaker 1>Daniel D. Martino booth from She's down in Dallas, Texas.

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<v Speaker 1>She was saying, finally, finally, price it's starting to break

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<v Speaker 1>the little bit. Prices are starting the fall.

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<v Speaker 4>There places like Austin, right, which was red hot.

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<v Speaker 1>Yep, yep. In South Florida somebody. Yeah, but we've seen that.

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<v Speaker 1>I mean, that's just kind of the not boom and bus,

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<v Speaker 1>but it's just kind of the syclicality of the real

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<v Speaker 1>estate market.

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<v Speaker 4>I guess it's normalizing. It's normalizing just a.

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<v Speaker 2>Bit, all right.

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<v Speaker 3>And we have to bring out the Intel because it

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<v Speaker 3>was a big story yesterday, right Take her I INTC.

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<v Speaker 3>Yesterday they had a twenty three percent rally word of

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<v Speaker 3>n videos, you know, five billion dollar investment in the company.

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<v Speaker 3>So basically the two companies going to co develop chips

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<v Speaker 3>for PCs and data centers. But ahead of the bell,

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<v Speaker 3>their shares have been lower down about half a percent,

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<v Speaker 3>so the excitement may be starting to fade. You also

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<v Speaker 3>had City Group. They downgraded the stock to sell from

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<v Speaker 3>neutral and they pointed to a kind of their rich valuation.

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<v Speaker 3>So it's kind of a big difference from yesterday to today.

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<v Speaker 4>But you know what, guys at the government right made

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<v Speaker 4>that nearly ten billion dollar investment in Intel last month,

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<v Speaker 4>So based on yesterday's big stock rally, the government has

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<v Speaker 4>made about four billion dollars at least on payper Not

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<v Speaker 4>bad for a day's work, right, I'm too bad, And.

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<v Speaker 3>It's kind of like showing how that's a different world

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<v Speaker 3>out there. So Scholastic is the last one. It's taker

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<v Speaker 3>schl and their shoes really taken a hit down about

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<v Speaker 3>ten percent before the bell a wider loss last quarter.

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<v Speaker 3>So this is what we were talking about schools delaying, pulling

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<v Speaker 3>back on the purchases because they just don't know about

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<v Speaker 3>federal and state funding. That's really been in the headlines lately.

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<v Speaker 3>So you had their Education solutions revenue, it dropped about

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<v Speaker 3>twenty eight percent. I didn't realize there were so many

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<v Speaker 3>areas to Scholastic, Like you have the book publishing distribution.

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<v Speaker 3>That revenue rose, book fairs revenue climbed, but you had

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<v Speaker 3>book club's revenue that fell and their entertainment revenue which

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<v Speaker 3>I didnt even think about that fell also because of

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<v Speaker 3>production delays.

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<v Speaker 2>The Stockmovers Report from Bloomberg Radio. Check back with us

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