WEBVTT - Pepsi Reports; AstraZeneca and Levi Strauss Fall

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

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Let's take a look at some stocks on the move today.

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<v Speaker 1>I'm Karen Moscow. We're joined by Bloomberg's Dan Curtis. Dan.

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<v Speaker 1>Good morning. Hey. We want to start things off with

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<v Speaker 1>some earnings from Pepsi that cross this morning. What did

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<v Speaker 1>we hear? So?

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<v Speaker 3>We heard that organic sales growth in North America snacks

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<v Speaker 3>business missed estimates as lower prices cut into revenue. Shares

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<v Speaker 3>are currently on their back foot, down about three quarters

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<v Speaker 3>of a percent under ticker PEP. Second quarter revenue and

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<v Speaker 3>adjusted earnings came in just above market expectations, and that

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<v Speaker 3>was boosted by international sales, but lots of focus on

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<v Speaker 3>the North American business. There was a two percent decline

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<v Speaker 3>in that food business. Pepsi's been rolling out snacks with

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<v Speaker 3>higher protein and fiber amidshifts and consumer preferences to try

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<v Speaker 3>and meet them there, and they had been working to

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<v Speaker 3>boost sales in that region. They had seen signs of

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<v Speaker 3>an initial rebound earlier this year after cutting prices. We

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<v Speaker 3>had a lot of stories earlier this year about you know,

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<v Speaker 3>seven dollars per bag of Doritos for a large bag

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<v Speaker 3>of Dorito's PEPSI has been working to roll that out.

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<v Speaker 3>Those price cuts, though, are eating into that bottom line.

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<v Speaker 1>Just a bit eating, so to speak. How will I

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<v Speaker 1>set back for AstraZeneca that's weighing this morning as well.

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<v Speaker 3>Yeah, so it's a very rare setback for the pharma

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<v Speaker 3>company in a new heart drug. So it's said that

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<v Speaker 3>a drug it's developing with Ionis pharmaceutical failed to help

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<v Speaker 3>prevent heart problems in patients with the rare disease. That

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<v Speaker 3>has shares of Astroseneka down eight percent on the ADRs.

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<v Speaker 3>Ionis Pharmaceuticals take our ions Is down twenty percent in

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<v Speaker 3>pre market. The drug has already been improved for patients

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<v Speaker 3>with certain protein folding issues. However, Astra had set a

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<v Speaker 3>five billion dollar sales target for this drug, and so

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<v Speaker 3>this this stumbling block is going to make it harder

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<v Speaker 3>for the company to reach that deal. Jeffries is also

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<v Speaker 3>pointing out that Astra typically designs its trials so that

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<v Speaker 3>they are mostly watertight, so some of this reaction might

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<v Speaker 3>just be more than a loss of potential revenue, but

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<v Speaker 3>also a perceived slip incredibility.

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<v Speaker 1>Well, Levi Strauss is also on your radar this morning.

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<v Speaker 1>What's happening with them.

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<v Speaker 3>It's raised its full yar guidance for a second straight

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<v Speaker 3>quarter on top of a second quarter top and bottom

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<v Speaker 3>line beat, but that is not enough for markets. Those

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<v Speaker 3>shares are down six percent in the pre market. The

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<v Speaker 3>net revenue growth outlook of up to seven and a

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<v Speaker 3>half percent, but some analysts say the hike is due

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<v Speaker 3>to first half out performance, so performance already in the

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<v Speaker 3>bag and not second half optimism which might get them

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<v Speaker 3>to buy the stock this morning. And this is coming

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<v Speaker 3>as the San Francis Francisco company has turned to selling

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<v Speaker 3>more tops and jackets, which has been a winning strategy

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<v Speaker 3>for them. It's also prioritizing its own business, its own platforms,

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<v Speaker 3>which are generating over half of sales. So there is

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<v Speaker 3>some optimism going into this, but not quite enough of

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<v Speaker 3>a lift for Wall Street this morning.

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<v Speaker 1>And we have an analyst call on Salesforce.

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<v Speaker 3>That's right, So keeping my eye on the software sector

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<v Speaker 3>very closely. And we have salesforce which was cut too

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<v Speaker 3>sector weight from equal from overweight at Key Bank. Those

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<v Speaker 3>shares are down about four percent in pre market, and

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<v Speaker 3>we are seeing general software weakness in the market this morning.

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<v Speaker 3>This has been, you know, amid a share slump, so

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<v Speaker 3>shares are trading at less than half the price they

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<v Speaker 3>were at eighteen months ago, amid this whole SaaS pocalypse

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<v Speaker 3>trade software companies hit by concern over AI's threat. So

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<v Speaker 3>we're seeing some software names weaker in the pre market,

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<v Speaker 3>standing out salesforce on that downgrade.

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<v Speaker 1>And just quickly, I know, with oil and gas prices higher,

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<v Speaker 1>I've been going to Costco to fill up. Is that

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<v Speaker 1>showing up in their sales?

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<v Speaker 3>Not quite so. Costco shares are down one percent in

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<v Speaker 3>the pre market, so total comparable sales came out at

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<v Speaker 3>nearly nine percent, but the estimate was nearly ten percent.

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<v Speaker 3>So while there has been that search, it's not quite

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<v Speaker 3>what the market was looking for, and some of this

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<v Speaker 3>was already baked into the price. So if you take

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<v Speaker 3>a look at shares of Costco, those shares are up

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<v Speaker 3>ten percent year to date. Compare that to a company

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<v Speaker 3>like Walmart. Walmart's shares are only up about one and

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<v Speaker 3>a half percent. So Costco had been out performing into

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<v Speaker 3>this on some strong on some strong momentum. We're pulling

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<v Speaker 3>back a little bit from that in the pre market,

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<v Speaker 3>down one percent.

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<v Speaker 2>This stock Movers report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout the day for the latest roundup of companies

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