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: It's like, look at what's happening in the marketplace today,
Speaker 1: Stocks on the move. We do that with Matthew Griffin. Matthew,
Speaker 1: what are you looking at with it? Well, the first
Speaker 1: one I've had on my screen this morning is Home Depot.
Speaker 1: It is an important read on the US consumer right
Speaker 1: now and investors not taking it as a positive one.
Speaker 1: That stock ticker HD now down about nine tenths of
Speaker 1: a percent, and if you look at comparable sales, that's
Speaker 1: a key growth metric for them. Growth there was just
Speaker 1: six tenths of a percent. Analyst wanted nine tenths of
Speaker 1: a percent. And it's problems that have dogged Home Depot
Speaker 1: for a while. Interest rates are high, housing prices are high.
Speaker 1: That means consumers they don't want to undertake big remodelings
Speaker 1: that they'd have to finance. They don't want to buy
Speaker 1: new homes that they would then you know, do home
Speaker 1: improvement work on. They're still painting, they're still gardening, but
Speaker 1: that's not nearly as lucrative. And although the company isn't
Speaker 1: seeing a big hit from the Iran war yet, it
Speaker 1: is easy to imagine that's going to show up at
Speaker 1: one point in results. And so you've got a pretty
Speaker 1: muted investor sentiment here. Shares down about fourteen percent now
Speaker 1: year to date.
Speaker 3: Yeah, so here's a counter narrative to the US economies
Speaker 3: doing fine. Consumers are spending as they were, you know,
Speaker 3: the high gas prices, the high borrowing costs, it's certainly
Speaker 3: starting to affect how people spend, and we're seeing that
Speaker 3: show up in some of these consumer companies. Let's talk
Speaker 3: about Micron, which has been such a superstar earlier this year.
Speaker 1: Yes, well, Scarlett Micron now extending declines into a fourth session,
Speaker 1: Shares down about two and a half percent. Now, that's
Speaker 1: ticker MU. And there doesn't seem to be a key
Speaker 1: catalyst here. Investors are just retreating from risk, and they're
Speaker 1: retreating from these semiconductor stocks that are up so ferociously
Speaker 1: this year. Of course, these memory names have been some
Speaker 1: of the leaders in the advance and the Dan o'reagan,
Speaker 1: he's the managing director of equity trading at Mizuho. He
Speaker 1: said earlier it's basically just an unwinding of momentum going
Speaker 1: on here. Of course, Micron's still up one hundred and
Speaker 1: thirty two percent year to date, so that that rally
Speaker 1: has not collapsed, but there are maybe some cracks showing
Speaker 1: all right, okay, service now, well service now. That's ticker
Speaker 1: INOW may just be the opposite trade here. They are
Speaker 1: up about four and a half percent and in a
Speaker 1: fourth session of gains, and these semiconductor software trades have
Speaker 1: really been opposites this year. Traders very optimistic until recently
Speaker 1: about demand for semiconductors due to AI. At the same
Speaker 1: time worried that AI will eat software companies lunch, and
Speaker 1: so you see maybe some money rotating out of simis
Speaker 1: and where does it go.
Speaker 3: It goes into these.
Speaker 1: You know names where there are fears of AI disruption.
Speaker 1: So the AI trade maybe taking a bit of a
Speaker 1: step back today, it's actually looking earlier. The correlation between
Speaker 1: software and semiconductor stocks in the S and P five hundred, though,
Speaker 1: still stands at the lowest since nineteen ninety four right now,
Speaker 1: so they really have there are still opposites to an extent.
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