1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:08,520 --> 00:00:12,440 Speaker 2: The Stock Mover's Report, your roundup of companies making moves 3 00:00:12,440 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,880 --> 00:00:19,119 Speaker 1: I'm Carol Messer along with Tim Stanvik. Let's get you 5 00:00:19,160 --> 00:00:21,759 Speaker 1: some stock specific stocks on the move on this Wednesday. 6 00:00:21,760 --> 00:00:25,759 Speaker 1: Bloomberg News Equities reporter Alexander Semenova in the house with us. 7 00:00:25,880 --> 00:00:28,640 Speaker 1: What a change. I don't know if your name's changed 8 00:00:29,120 --> 00:00:31,000 Speaker 1: as the market kicked up higher. 9 00:00:31,120 --> 00:00:33,080 Speaker 3: Yeah, I have to say I'm not at all surprised 10 00:00:33,120 --> 00:00:33,839 Speaker 3: by this reaction. 11 00:00:33,880 --> 00:00:34,080 Speaker 2: Guys. 12 00:00:34,120 --> 00:00:36,279 Speaker 3: When I was talking to people on Wall Street yesterday, 13 00:00:36,800 --> 00:00:39,640 Speaker 3: it felt like everyone was familiar with this classic I 14 00:00:39,720 --> 00:00:42,400 Speaker 3: hate to over use the term taco trade. Everyone knew 15 00:00:42,400 --> 00:00:44,920 Speaker 3: that Trump would probably walk back on some of it, 16 00:00:45,080 --> 00:00:48,599 Speaker 3: really posturing. Everyone saw it as a buying opportunity. So 17 00:00:48,960 --> 00:00:51,280 Speaker 3: this reaction is to be pretty expected. 18 00:00:50,920 --> 00:00:52,440 Speaker 4: Didn't Who was it yesterday? 19 00:00:52,640 --> 00:00:55,800 Speaker 5: Was it Bob Michael who said that if the markets 20 00:00:55,840 --> 00:00:59,160 Speaker 5: actually thought like the reaction was pretty understated given what 21 00:00:59,200 --> 00:01:00,600 Speaker 5: we had heard yesterday. 22 00:01:00,760 --> 00:01:02,200 Speaker 1: Yeah, and I think he also talked about that the 23 00:01:02,280 --> 00:01:05,760 Speaker 1: President needed to say something in regards to it. We 24 00:01:05,760 --> 00:01:07,479 Speaker 1: actually have a story, I think on the Bloomberg about 25 00:01:07,480 --> 00:01:08,880 Speaker 1: some of what Michael had to say. 26 00:01:08,920 --> 00:01:10,360 Speaker 5: Yeah, but it was just it was just interesting. It 27 00:01:10,400 --> 00:01:12,560 Speaker 5: was like, you know, our conversation was a little bit 28 00:01:12,560 --> 00:01:15,840 Speaker 5: about Okay, well, you know, the market reaction is muted 29 00:01:16,080 --> 00:01:18,880 Speaker 5: because people don't believe that he's actually going to follow. 30 00:01:18,720 --> 00:01:19,160 Speaker 4: Through with something. 31 00:01:19,200 --> 00:01:21,760 Speaker 3: Yeah, and really important to note here, the foundation of 32 00:01:21,800 --> 00:01:24,119 Speaker 3: the market rally over the last several weeks has been 33 00:01:24,480 --> 00:01:26,679 Speaker 3: pretty solid. A lot of people saying that that is 34 00:01:26,720 --> 00:01:28,800 Speaker 3: not the type of thing that you see at a 35 00:01:28,840 --> 00:01:31,800 Speaker 3: top where we have small caps doing well, we have 36 00:01:31,959 --> 00:01:35,120 Speaker 3: the SMP equal weight outperforming, we had the rally led 37 00:01:35,160 --> 00:01:38,440 Speaker 3: bisectors like industrials and materials, So it wasn't that very 38 00:01:38,880 --> 00:01:41,800 Speaker 3: fragile tech led rally. So when you get something like this, 39 00:01:42,120 --> 00:01:44,720 Speaker 3: it's generally seen as a positive development, and it was 40 00:01:45,000 --> 00:01:46,720 Speaker 3: a buying opportunity for most people. 41 00:01:46,800 --> 00:01:48,120 Speaker 1: I just want to go on because there's a great 42 00:01:48,160 --> 00:01:51,280 Speaker 1: story on the Bloomberg about Bob Michael who joined us. 43 00:01:51,320 --> 00:01:53,800 Speaker 1: He's a very JP Morgan Asset Management, and he said 44 00:01:53,800 --> 00:01:56,080 Speaker 1: the sell off, this was yesterday's selloff in markets is 45 00:01:56,080 --> 00:01:59,280 Speaker 1: a message to President Trump's administration to take action to 46 00:01:59,360 --> 00:02:04,640 Speaker 1: restore CO specifically, and so he's somebody who watches the 47 00:02:04,680 --> 00:02:08,880 Speaker 1: fixed income markets and over at JP market. So interesting, 48 00:02:09,120 --> 00:02:10,400 Speaker 1: you know, in terms of what he had to say, 49 00:02:10,480 --> 00:02:12,040 Speaker 1: kind of a message or maybe messaging. 50 00:02:12,200 --> 00:02:13,440 Speaker 4: Okay, so what are some of the stocks you have? 51 00:02:13,760 --> 00:02:16,760 Speaker 3: Yeah, in terms of individual movers, Netflix is one of 52 00:02:16,760 --> 00:02:19,840 Speaker 3: the outliers today in an otherwise positive day for markets. 53 00:02:19,880 --> 00:02:23,920 Speaker 3: This is after they issued an earnings forecast that disappointed investors. 54 00:02:23,960 --> 00:02:27,799 Speaker 3: Of course, the culprit was increased spending on production and 55 00:02:28,000 --> 00:02:31,640 Speaker 3: that deal with Warner Brothers Discovery. Netflix said that it 56 00:02:31,680 --> 00:02:35,000 Speaker 3: plans to ramp up spending on movies and TV shows 57 00:02:35,000 --> 00:02:39,200 Speaker 3: by ten percent. It's also going to work with Universal 58 00:02:39,280 --> 00:02:44,160 Speaker 3: and Sony on streaming. The company forecast earnings of seventy 59 00:02:44,240 --> 00:02:47,320 Speaker 3: six cents per share, which was below Wall Street's estimates 60 00:02:47,520 --> 00:02:49,880 Speaker 3: of eighty two cents per share, and it also will 61 00:02:49,919 --> 00:02:53,600 Speaker 3: pause share buybacks to build up cash for that Warner 62 00:02:53,639 --> 00:02:55,560 Speaker 3: Brothers deal. So investors really did. 63 00:02:55,360 --> 00:02:57,320 Speaker 1: Not like that, that all cash deal. 64 00:02:57,440 --> 00:02:58,880 Speaker 3: Yeah, so you get to raise some cash. 65 00:02:59,440 --> 00:03:04,600 Speaker 5: Well, look, I think the investor reactions since October in 66 00:03:04,720 --> 00:03:09,120 Speaker 5: the Netflix's pursuit of Warner Brothers Discovery is has shown. 67 00:03:08,880 --> 00:03:12,600 Speaker 4: One that they're not confident. Yeah, in the value of it. 68 00:03:12,720 --> 00:03:15,040 Speaker 1: Yeah, it just let's wrap this up already. 69 00:03:14,600 --> 00:03:19,040 Speaker 3: It just feels like wanting to like, no, no, I know, 70 00:03:19,160 --> 00:03:19,400 Speaker 3: I know. 71 00:03:20,280 --> 00:03:21,480 Speaker 4: Let's talk about Charles Schwab. 72 00:03:21,520 --> 00:03:24,839 Speaker 1: We just had the CEO on a really great conversation. 73 00:03:24,480 --> 00:03:27,840 Speaker 3: Be a great interview, and really solid earnings from them. 74 00:03:27,880 --> 00:03:31,240 Speaker 3: They reported a surge and average daily trading volume in 75 00:03:31,320 --> 00:03:34,320 Speaker 3: the fourth quarter and it was driven, guys, by retail investors. 76 00:03:34,360 --> 00:03:36,760 Speaker 3: I think it's time to have a conversation about how 77 00:03:36,800 --> 00:03:39,800 Speaker 3: we speak about retail investors because they're often called the 78 00:03:39,880 --> 00:03:42,080 Speaker 3: dumb money, but the last couple of years have shown 79 00:03:42,160 --> 00:03:45,120 Speaker 3: us that they are anything but always stepping into buying 80 00:03:45,320 --> 00:03:47,640 Speaker 3: to buy the dip and always being rewarded for it. 81 00:03:48,520 --> 00:03:51,320 Speaker 3: They did kind of miss on revenue, though clearly this 82 00:03:51,440 --> 00:03:55,440 Speaker 3: trading volume was enough to offset that, rising thirty one 83 00:03:55,480 --> 00:03:57,960 Speaker 3: percent from a year earlier. I loved some of the 84 00:03:58,000 --> 00:04:01,120 Speaker 3: comments that CEO Rick Warsters that he said that he 85 00:04:01,160 --> 00:04:04,640 Speaker 3: has been advising with the firm to tell clients to 86 00:04:04,760 --> 00:04:07,680 Speaker 3: stay the course on investing through all this volatility, but 87 00:04:07,760 --> 00:04:10,680 Speaker 3: instead they have been buying the dips and selling the rips, 88 00:04:10,720 --> 00:04:14,720 Speaker 3: which sounds like a very stage investor strategy. And also, 89 00:04:14,720 --> 00:04:17,359 Speaker 3: as you guys mentioned, you guys discussed with him. I 90 00:04:17,360 --> 00:04:19,440 Speaker 3: thought it was really interesting that they mentioned that they're 91 00:04:19,440 --> 00:04:22,479 Speaker 3: monitoring the rise of prediction markets. It's really going to 92 00:04:22,720 --> 00:04:26,400 Speaker 3: be interesting to see how investors are deploying their capital. 93 00:04:26,120 --> 00:04:27,680 Speaker 4: Not gambling, though not gambling. 94 00:04:27,880 --> 00:04:31,839 Speaker 5: Right draws a distinction between gambling and prediction markets. He wants, 95 00:04:31,960 --> 00:04:33,880 Speaker 5: he said, he wants to leave this if he called 96 00:04:33,880 --> 00:04:36,159 Speaker 5: out Robinhood specifically, he kind of put them in the 97 00:04:36,200 --> 00:04:40,560 Speaker 5: same category as FanDuel and DraftKings because they do sports gambling. 98 00:04:40,800 --> 00:04:43,760 Speaker 4: Yeah, it was interesting. I mean, that's competitive positioning. 99 00:04:43,440 --> 00:04:44,200 Speaker 3: Like a fine line. 100 00:04:44,279 --> 00:04:47,120 Speaker 1: But that's what's driving so much of right, the trade, 101 00:04:47,240 --> 00:04:50,039 Speaker 1: the money, the volumes, if you will, is you know, 102 00:04:50,080 --> 00:04:54,120 Speaker 1: sports gambling or gaming. United Airlines we got that earnings 103 00:04:54,120 --> 00:04:54,960 Speaker 1: after the closing bill. 104 00:04:55,240 --> 00:04:58,200 Speaker 3: Yeah, those shares are doing well after the reported results 105 00:04:58,200 --> 00:05:01,560 Speaker 3: that beat Wall Street estimates and also issued a positive outlook. 106 00:05:01,600 --> 00:05:03,760 Speaker 3: That was the thing that investors were looking for, especially 107 00:05:03,800 --> 00:05:05,520 Speaker 3: after Delta's was not so good. 108 00:05:05,600 --> 00:05:06,840 Speaker 1: Can't wait to get out of a plane this. 109 00:05:06,839 --> 00:05:12,800 Speaker 2: Year the Stockmovers Report from Bloomberg Radio. Check back with 110 00:05:12,880 --> 00:05:15,440 Speaker 2: us throughout the day for the latest roundup of companies 111 00:05:15,520 --> 00:05:18,640 Speaker 2: making news on Wall Street and for the latest market 112 00:05:18,680 --> 00:05:23,120 Speaker 2: moving headlines, Listen to Bloomberg Radio Live. 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