Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look at some stocks on the move today.
Speaker 1: I'm Karen Moscow. We're joined by Bloomberg's Dan Curtis. Dan.
Speaker 1: Good morning. Hey. We want to start things off with
Speaker 1: some earnings from Pepsi that cross this morning. What did
Speaker 1: we hear? So?
Speaker 3: We heard that organic sales growth in North America snacks
Speaker 3: business missed estimates as lower prices cut into revenue. Shares
Speaker 3: are currently on their back foot, down about three quarters
Speaker 3: of a percent under ticker PEP. Second quarter revenue and
Speaker 3: adjusted earnings came in just above market expectations, and that
Speaker 3: was boosted by international sales, but lots of focus on
Speaker 3: the North American business. There was a two percent decline
Speaker 3: in that food business. Pepsi's been rolling out snacks with
Speaker 3: higher protein and fiber amidshifts and consumer preferences to try
Speaker 3: and meet them there, and they had been working to
Speaker 3: boost sales in that region. They had seen signs of
Speaker 3: an initial rebound earlier this year after cutting prices. We
Speaker 3: had a lot of stories earlier this year about you know,
Speaker 3: seven dollars per bag of Doritos for a large bag
Speaker 3: of Dorito's PEPSI has been working to roll that out.
Speaker 3: Those price cuts, though, are eating into that bottom line.
Speaker 1: Just a bit eating, so to speak. How will I
Speaker 1: set back for AstraZeneca that's weighing this morning as well.
Speaker 3: Yeah, so it's a very rare setback for the pharma
Speaker 3: company in a new heart drug. So it's said that
Speaker 3: a drug it's developing with Ionis pharmaceutical failed to help
Speaker 3: prevent heart problems in patients with the rare disease. That
Speaker 3: has shares of Astroseneka down eight percent on the ADRs.
Speaker 3: Ionis Pharmaceuticals take our ions Is down twenty percent in
Speaker 3: pre market. The drug has already been improved for patients
Speaker 3: with certain protein folding issues. However, Astra had set a
Speaker 3: five billion dollar sales target for this drug, and so
Speaker 3: this this stumbling block is going to make it harder
Speaker 3: for the company to reach that deal. Jeffries is also
Speaker 3: pointing out that Astra typically designs its trials so that
Speaker 3: they are mostly watertight, so some of this reaction might
Speaker 3: just be more than a loss of potential revenue, but
Speaker 3: also a perceived slip incredibility.
Speaker 1: Well, Levi Strauss is also on your radar this morning.
Speaker 1: What's happening with them.
Speaker 3: It's raised its full yar guidance for a second straight
Speaker 3: quarter on top of a second quarter top and bottom
Speaker 3: line beat, but that is not enough for markets. Those
Speaker 3: shares are down six percent in the pre market. The
Speaker 3: net revenue growth outlook of up to seven and a
Speaker 3: half percent, but some analysts say the hike is due
Speaker 3: to first half out performance, so performance already in the
Speaker 3: bag and not second half optimism which might get them
Speaker 3: to buy the stock this morning. And this is coming
Speaker 3: as the San Francis Francisco company has turned to selling
Speaker 3: more tops and jackets, which has been a winning strategy
Speaker 3: for them. It's also prioritizing its own business, its own platforms,
Speaker 3: which are generating over half of sales. So there is
Speaker 3: some optimism going into this, but not quite enough of
Speaker 3: a lift for Wall Street this morning.
Speaker 1: And we have an analyst call on Salesforce.
Speaker 3: That's right, So keeping my eye on the software sector
Speaker 3: very closely. And we have salesforce which was cut too
Speaker 3: sector weight from equal from overweight at Key Bank. Those
Speaker 3: shares are down about four percent in pre market, and
Speaker 3: we are seeing general software weakness in the market this morning.
Speaker 3: This has been, you know, amid a share slump, so
Speaker 3: shares are trading at less than half the price they
Speaker 3: were at eighteen months ago, amid this whole SaaS pocalypse
Speaker 3: trade software companies hit by concern over AI's threat. So
Speaker 3: we're seeing some software names weaker in the pre market,
Speaker 3: standing out salesforce on that downgrade.
Speaker 1: And just quickly, I know, with oil and gas prices higher,
Speaker 1: I've been going to Costco to fill up. Is that
Speaker 1: showing up in their sales?
Speaker 3: Not quite so. Costco shares are down one percent in
Speaker 3: the pre market, so total comparable sales came out at
Speaker 3: nearly nine percent, but the estimate was nearly ten percent.
Speaker 3: So while there has been that search, it's not quite
Speaker 3: what the market was looking for, and some of this
Speaker 3: was already baked into the price. So if you take
Speaker 3: a look at shares of Costco, those shares are up
Speaker 3: ten percent year to date. Compare that to a company
Speaker 3: like Walmart. Walmart's shares are only up about one and
Speaker 3: a half percent. So Costco had been out performing into
Speaker 3: this on some strong on some strong momentum. We're pulling
Speaker 3: back a little bit from that in the pre market,
Speaker 3: down one percent.
Speaker 2: This stock Movers report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news on Wall Street and for the latest market
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,
Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with
Speaker 2: the Bloomberg Business app.