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 1: Let's take a look now, add some stocks making news
Speaker 1: in the week ahead. I'm Nathan Hager here with Bloomberg
Speaker 1: Equities reporter Avalon Parnell, head of a few pretty interesting
Speaker 1: earning stories in the coming week. We're going to hear
Speaker 1: from Carnival Cruise Lines on Tuesday. It's going to be
Speaker 1: really interesting to hear from them, especially with so many
Speaker 1: of the headlines around the Middle East driving cruise stocks
Speaker 1: over the last several months.
Speaker 3: Avalon absolutely, I mean, the potential end of the Iran
Speaker 3: war and fuel costs will definitely be top of mind
Speaker 3: for investors as Carnival heads into its second quarter earnings
Speaker 3: on Tuesday. Carnival shares have been on a roller coaster
Speaker 3: ride alongside other travel and cruise names, to say the least,
Speaker 3: since the war started in February. But now with the
Speaker 3: US and Iran saying that they've reached an interim agreement
Speaker 3: to reopen the street up for moves, sentiment is again
Speaker 3: rising in this hard hit sector. Worth mentioning that Wall
Speaker 3: Street still remains cautiously optimistic about the stock. Schiefel may
Speaker 3: have put it best at analysts, saying that trading cruise
Speaker 3: stocks is beyond difficult because you're trading your view of
Speaker 3: whether the Middle East war will end or not. But
Speaker 3: they remain buyers of Carnival into their earnings because they
Speaker 3: believe the company hasn't witnessed any deterioration in customer spending.
Speaker 3: Bloomberg Intelligence highlighting that investors will look for insight on
Speaker 3: booking since March, when Carnival reported that eighty five percent
Speaker 3: of capacity had been sold.
Speaker 1: Well, like you said, the stock has kind of been
Speaker 1: all over the map since the start of the year.
Speaker 1: What are we expecting from the options market when it
Speaker 1: comes to how the stock could trade off the back
Speaker 1: of earnings.
Speaker 3: Yes, option data that we are seeing at the moment
Speaker 3: is currently implying about a six percent move after those results.
Speaker 1: Okay, so we'll be keeping an eye on Carnival Cruise
Speaker 1: line on Tuesday along with FedEx. Obviously a pretty strong
Speaker 1: bell weather for the economy as a whole. But I mean,
Speaker 1: this stock has been through quite a few changes lately.
Speaker 1: So how's that affecting investor sentiment.
Speaker 3: Yes, I mean FedEx, to say the least, we'll be
Speaker 3: entering a new era when it reports fourth quarter earnings
Speaker 3: on Tuesday, Justice month, FedEx completed the spin off of
Speaker 3: its freight division, and it will also be the first
Speaker 3: earnings call for Claude Russ, who became interim CFO after
Speaker 3: John Dietrich surprise investors by announcing that he was stepping
Speaker 3: down at the start of this month. Investors expect FedEx
Speaker 3: to continue executing despite inflationary pressures and rising fuel costs
Speaker 3: tied to that war in Iran. Barclay's analysts are expecting
Speaker 3: solid retail performance and also industrial expansion this quarter given
Speaker 3: strong macro transportation indicators, though it is worth noting that
Speaker 3: Bloomberg Intelligence highlighting with the spinoff in the rear view mirror,
Speaker 3: FedEx can potentially begin to focus on its longer term
Speaker 3: financial targets, like pushing its higher margin businesses and also
Speaker 3: improving European results to lift earnings above its twenty twenty
Speaker 3: nine target.
Speaker 1: And yeah, so it'll be interesting to see how that goes.
Speaker 1: But I mean, this stock in particular has been on
Speaker 1: a pretty solid run since even before the start of
Speaker 1: the year. When you have the FedEx Freight business in
Speaker 1: the rear view, how is that expected to affect the
Speaker 1: performance going forward?
Speaker 3: Well, going forward, they're hoping that this will allow FedEx
Speaker 3: to hone in on the really quality areas of its
Speaker 3: business and help to expand margin. And also worth noting
Speaker 3: that options data at the moment is currently implying a
Speaker 3: nearly seven percent move after those results, although we will
Speaker 3: also hear from that spinoff later that week as well,
Speaker 3: so we'll see how the two go head to head.
Speaker 1: Oh wow, So even more reason to keep an eye
Speaker 1: on FedEx and FedEx Freight. Not only that, on Thursday,
Speaker 1: we're going to hear from Darden Restaurants. I mean, every
Speaker 1: time I think about Darden, I think about all of Garden,
Speaker 1: but I mean I'm always surprised by how many restaurants
Speaker 1: are under the Darden umbrella, not just for casual dining,
Speaker 1: but fine dining as well.
Speaker 3: Yeah, you're absolutely right. Darden is the parent company behind
Speaker 3: popular chains like Rufe, Chris Longhorn Steakhouse, and my dad's
Speaker 3: personal favorite Cheddar Scratch Kitchen. But nice, we will be
Speaker 3: gaining some more visibility on the American consumer Thursday, when
Speaker 3: Darden reports for quarter earnings, Worth noting that they do
Speaker 3: continue to outperform the S and P five hundred consumer
Speaker 3: discretionary sector and investors are expecting the print to keep
Speaker 3: that trend going. City Analysts writing that they expect another
Speaker 3: solid quarter marked by comparative growth continuing to outpaced industry.
Speaker 3: Raymond Jane's expecting a strong fourth quarter, noting that solid
Speaker 3: casual dining segment trends in recent months, and also worth
Speaker 3: noting that options data at the moment is currently implying
Speaker 3: about a four percent move after those results.
Speaker 1: Okay, so maybe a little bit of a pop there,
Speaker 1: But you have to wonder, when you know, there's so
Speaker 1: much talk about a K shaped economy, whether consumers are
Speaker 1: thinking about pulling back some on some of the more
Speaker 1: discretionary sides of the economy, whether a company like Darden
Speaker 1: could see a hit from something like that if people
Speaker 1: are thinking, well, you know, maybe I would rather stay
Speaker 1: at home and cook for myself rather than go out
Speaker 1: for a nice meal for a change.
Speaker 3: Absolutely, and I mean it's also not just that we're
Speaker 3: also thinking about the impact of GLP ones on various restaurants,
Speaker 3: obviously fast dining fast food is going to be very
Speaker 3: impacted by GLP ones, especially as they continue to grow
Speaker 3: in popularity in the US. But for companies like a
Speaker 3: Darden restaurants, analysts have said they're really looking for some
Speaker 3: of these chains to launch more smaller plates, more chicken
Speaker 3: options for customers who are looking for a healthier option
Speaker 3: on the menu and are really conscious about protein, and
Speaker 3: so that will also be something to be interesting to
Speaker 3: keep an eye on.
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