Latest / Bloomberg Intelligence / Bloomberg's Ciolli on Winners, Losers, Stock of the Day (Audio)

Transcript

Bloomberg's Ciolli on Winners, Losers, Stock of the Day (Audio) · Bloomberg Intelligence

• 0:02
  Speaker 1: Global Business News twenty four hours a day. If Bloomberg
• 0:05
  Speaker 1: dot com the radio plus mobile app and on your
• 0:08
  Speaker 1: radio this he's a Bloomberg business flag. And there you
• 0:11
  Speaker 1: have its sound of the closing peal. As we wrap
• 0:14
  Speaker 1: up trading on this fed Wednesday, July twenty seven, the
• 0:17
  Speaker 1: dowin SMP Lower nesdac Hire folks from the National Parks
• 0:20
  Speaker 1: Foundation ringing that closing bell. We are awaiting the latest
• 0:24
  Speaker 1: numbers out of Alphabet, the parrot of Google and Facebook
• 0:27
  Speaker 1: Facebook up today by one point eight percent. We did
• 0:30
  Speaker 1: have Alphabet advancing by five tenths of one percent. Stock
• 0:34
  Speaker 1: showed little reaction after Federal Reserve policymakers said near term
• 0:38
  Speaker 1: risks to the economic outlook have diminished, even as they
• 0:42
  Speaker 1: left interest rates unchanged. Reaction from Charles Plosser, former president
• 0:47
  Speaker 1: and CEO of the Philadelphia FEDE. He was our guest
• 0:49
  Speaker 1: this afternoon right here on taking stock well was pretty
• 0:53
  Speaker 1: much as expected. The most interesting part of it was
• 0:56
  Speaker 1: they won a long way I think, uh to disavowing,
• 1:01
  Speaker 1: in other words, undoing all the fears that they placed
• 1:05
  Speaker 1: at the last meeting. They prevented them from moving ahead
• 1:07
  Speaker 1: with an interest rate hack. So the Federal Reserve, leaving
• 1:10
  Speaker 1: rates unchanged, while saying risks to the economy have subsided.
• 1:14
  Speaker 1: The tenure of sixteen thirty seconds with the yield of
• 1:17
  Speaker 1: one point five percent. Gold now up twenty dollars the
• 1:20
  Speaker 1: ounce to thirteen forty one, a gain there of one
• 1:23
  Speaker 1: and a half percent. SMP five hundred index down two
• 1:26
  Speaker 1: points to one sixty six, a drop of point one percent,
• 1:30
  Speaker 1: the dows swinging between gains and losses right into the
• 1:33
  Speaker 1: closed down industrials, now lower by less than half a point.
• 1:36
  Speaker 1: We'll call that unchanged at eighteen thousand, four hundred seventy three.
• 1:41
  Speaker 1: Oil Crude Oil West Texas Intermediate down ninety one sends
• 1:44
  Speaker 1: forty two oh to a barrel, that is a drop
• 1:46
  Speaker 1: of two point one percent. Apple shares up today by
• 1:50
  Speaker 1: six point six percent after last night's earnings report, lower
• 1:54
  Speaker 1: cost iPhone se gaining more traction than expected, with users
• 1:59
  Speaker 1: heading the other direction. Twitter plunging fourteen point five percent,
• 2:03
  Speaker 1: down two sixty eight to fifteen seventy seven after last
• 2:07
  Speaker 1: night's earnings disappointment. So again we are awaiting latest numbers
• 2:11
  Speaker 1: out of both Facebook and Alphabet, and now at four
• 2:15
  Speaker 1: or two on Wall Street. Let's look at the other
• 2:17
  Speaker 1: stories making news. Charley, Thank you from the Bloomberg newsroom.
• 2:22
  Speaker 1: I'm Mark Crumpton. Hillary Clinton is counting on the coalition
• 2:25
  Speaker 1: that put President Obama in office to keep the White
• 2:28
  Speaker 1: House in Democratic hands. Tonight, the President will be speaking
• 2:32
  Speaker 1: on her behalf in Philadelphia. Bloomberg's Bob Moon reports President
• 2:37
  Speaker 1: Obama is likely to address the economy in his primetime
• 2:39
  Speaker 1: convention address, mindful to young people in minorities who propelled
• 2:43
  Speaker 1: him into office have lagged behind the economic recovery he shepherded.
• 2:46
  Speaker 1: At the same time, Donald Trump is still seen as
• 2:48
  Speaker 1: alienating disaffected Obama backers, giving the president a message he's
• 2:52
  Speaker 1: been honing in campaign appearances for Hillary Clinton. I don't
• 2:55
  Speaker 1: know how you vote for the guy who's a guest.
• 2:57
  Speaker 1: The minimum wage a guest. You're again making sure that
• 3:03
  Speaker 1: everybody gets the fair shot. Democratic strategists who worried the
• 3:06
  Speaker 1: economic struggles of Obama's constituency with death there turn out
• 3:09
  Speaker 1: in November are now counting on Trump to be what
• 3:11
  Speaker 1: one calls a turnout machine for the Democrats. Bob Moon,
• 3:14
  Speaker 1: Bloomberg Radio. Baltimore Prosecutor Maryland Moseby announced today her office
• 3:19
  Speaker 1: is dropping all charges against the remaining officers in the
• 3:23
  Speaker 1: Freddy Gray case. Do not believe that Freddy Gray killed himself.
• 3:30
  Speaker 1: We standing back the medical examiner's determination that Freddy Gray's
• 3:36
  Speaker 1: death was a homicide. Today's decision follows three acquittals and
• 3:41
  Speaker 1: a mistrial. New Jersey Transits boards considering whether to approve
• 3:45
  Speaker 1: contracts with its two remaining rail unions. The other nine
• 3:49
  Speaker 1: rail union signed contracts in March, about a day before
• 3:52
  Speaker 1: a strike. Deadline Global News twenty four hours a day,
• 3:56
  Speaker 1: powered by more than twenty hundred journalists and analysts in
• 3:59
  Speaker 1: more than one twenty countries. I'm Mark Crumpton. This is Bloomberg, Charlotte,
• 4:05
  Speaker 1: and we thank you. And again we are waiting for
• 4:07
  Speaker 1: Facebook and Alphabet, the parent of Google. SMP five hundred
• 4:11
  Speaker 1: index lower a little change, down point one sixty six,
• 4:15
  Speaker 1: the Dow falling by a point to eighteen thousand, four
• 4:18
  Speaker 1: hundred seventy two. I'm Charlie Pellett, and that's a Bloomberg
• 4:21
  Speaker 1: business flash. Move around, most great promotion at the elite,
• 4:26
  Speaker 1: move like they do. I've never seen anyone move that
• 4:31
  Speaker 1: back five people. Let's move like to get a purpose.
• 4:42
  Speaker 1: He's called movers and shakers. It costs a little more
• 4:45
  Speaker 1: about that name. Cracked me up, Bloomberg taking stock movers
• 4:55
  Speaker 1: and shakers with pim box and Kathleen Hays on Bloomberg Radio.
• 5:00
  Speaker 1: Kind of a mixed close in the major market indexes today,
• 5:04
  Speaker 1: as Charlie Pellach just so ably described for US, But
• 5:07
  Speaker 1: when you look inside the S and P five hundred
• 5:10
  Speaker 1: seems like a definitive sign that the market was on
• 5:13
  Speaker 1: the downside today. Only a hundred forty two gainers, three
• 5:16
  Speaker 1: sixty losers, three stocks closing, unchanged. Our stocks reporter, our
• 5:19
  Speaker 1: Bloombook StockX reporter Joe Siey is back to kick off
• 5:22
  Speaker 1: movers and shakers. So first off, we have acam I Technologies. UH.
• 5:27
  Speaker 1: This is a company that helps speed up the delivery
• 5:30
  Speaker 1: of Internet content, so it works with customers like Apple
• 5:33
  Speaker 1: and Facebook. It's down fourteen percent today after UM forecasting
• 5:38
  Speaker 1: earnings and sales in the current quarter that fell short
• 5:40
  Speaker 1: of analyst estimates. UM. They're citing UM one of the
• 5:44
  Speaker 1: potential headwinds as UH customers like Apple and Facebook adopting
• 5:49
  Speaker 1: more of a do it yourself model, UH users being
• 5:51
  Speaker 1: more capable of of moving their own data through those systems,
• 5:55
  Speaker 1: and UH it's kind of lessening the need for for
• 5:57
  Speaker 1: Acami and their products. I'll tell you about the acquisition today,
• 6:01
  Speaker 1: Lab Corp announcing that it will buy Sequonom and the
• 6:05
  Speaker 1: price tag there indicating a one hundred and eighty well
• 6:09
  Speaker 1: nearly on premium over the closing price of Sequonom yesterday.
• 6:14
  Speaker 1: Shares of Secunum up one hundred and seventy six percent
• 6:19
  Speaker 1: the two dollars and the thirty five cents on the close.
• 6:23
  Speaker 1: Lab Corp also reporting results of the shares of Lab
• 6:26
  Speaker 1: Corp l ah she had down about a quarter of
• 6:28
  Speaker 1: a percent today, but they estimate that revenue growth for
• 6:31
  Speaker 1: the fiscal year will be between nine and a half
• 6:34
  Speaker 1: to ten and a half percent. That is better than
• 6:37
  Speaker 1: they had previously guided. Once again, shares of Sequinum up
• 6:42
  Speaker 1: one hundred and seventy six percent. Well, you know interesting,
• 6:46
  Speaker 1: State Street getting a big vote of confidence today from investors.
• 6:51
  Speaker 1: It's share price rising more than nine percent because it
• 6:56
  Speaker 1: showed in its second quarter earnings report that earning is
• 6:59
  Speaker 1: actually better than forecast, not because their revenue is jump.
• 7:02
  Speaker 1: It's really tough to be a bank right now. Right
• 7:04
  Speaker 1: the Federal Reserve lord rates nearly to zero in two
• 7:07
  Speaker 1: thousand and eight, they've raised them only one since then.
• 7:09
  Speaker 1: But what State Street has done very well is lower
• 7:13
  Speaker 1: their expenses. In fact, under CEO J. Hooley, State Street
• 7:18
  Speaker 1: is focusing on cost savings in a big way. Total
• 7:21
  Speaker 1: second quarter expenses fell to one point eight six billion
• 7:25
  Speaker 1: dollars from two point one three billion a year earlier.
• 7:29
  Speaker 1: To accelerate cost reductions, the company is introducing a technology
• 7:33
  Speaker 1: transformation program that led to job cuts announced in October.
• 7:38
  Speaker 1: Not so good for State Street workers, but good for investors.
• 7:41
  Speaker 1: So justin on one second, because I want to give
• 7:43
  Speaker 1: you this news having to do with Facebook reporting second
• 7:45
  Speaker 1: quarter earnings of seven of nineties seven cents a share.
• 7:49
  Speaker 1: Estimate was for eighty two cents a share. The shares
• 7:53
  Speaker 1: of Facebook are up more than seven percent in after
• 7:57
  Speaker 1: hours trading, once again years of Facebook higher as they
• 8:01
  Speaker 1: report nineties seven cent surnings versus average analyst estimate of
• 8:06
  Speaker 1: a D two cents. Alright, moving on to to net Suite,
• 8:11
  Speaker 1: another stock that was in the green today up nine
• 8:14
  Speaker 1: point one percent. I had benefited from a GP Morrigan
• 8:18
  Speaker 1: analysts comment from Mark Murphy saying that he met with
• 8:22
  Speaker 1: some of their partners and and he suggests that there's
• 8:24
  Speaker 1: some large deals in the pipeline. Uh. This isn't really
• 8:27
  Speaker 1: the first speculation like this that net Sweet has encountered.
• 8:30
  Speaker 1: It's gained about thirty percent over the past month amid
• 8:33
  Speaker 1: speculation that Oracle could be buying it. Uh. So there's
• 8:36
  Speaker 1: there's a lot of of m and a chatter around
• 8:39
  Speaker 1: that name and uh. And also Murphy mentioned that the
• 8:42
  Speaker 1: demand for net net Sweet products is still very strong
• 8:45
  Speaker 1: and very bullish, all combining to send the stock up
• 8:48
  Speaker 1: as much as sixteen percent intra day nine percent at
• 8:51
  Speaker 1: the close. Him, I'm gonna throw one in. Shares of
• 8:54
  Speaker 1: Goodyear Tire and Rubber up more than four percent today.
• 8:56
  Speaker 1: They reported improved second quarter earnings thanks to lower in
• 9:00
  Speaker 1: tax expenses, but a lot more than that, very important
• 9:02
  Speaker 1: here increased demand for its higher entires. All right, not
• 9:05
  Speaker 1: just tell you quickly. The shares of am Chin today
• 9:07
  Speaker 1: up more than one and a half percent. They reported
• 9:09
  Speaker 1: second quarter profit that exceeded analyst estimates. Alright, time now
• 9:13
  Speaker 1: for the Volatility Index report. It's brought to you by
• 9:15
  Speaker 1: cbo E VIX Options and Futures. Volatility can be harnessed
• 9:19
  Speaker 1: with cbo VIX options and futures. See disclosures Learn more
• 9:23
  Speaker 1: at cbo E dot Com Slash Powerful Outcomes VIX. The
• 9:28
  Speaker 1: VIX lower today, down about two and a half percent
• 9:31
  Speaker 1: at the drop of zero point three three, settling at
• 9:34
  Speaker 1: twelve point seven to Just a note. After the release
• 9:37
  Speaker 1: of those f O m C meeting minutes, the VIX
• 9:42
  Speaker 1: moved lower by more than four percent. I'd like to
• 9:46
  Speaker 1: teach the world. You know, I'm just a sucker for
• 9:55
  Speaker 1: that song, Joe Cioley. You know, I'd like to buy
• 9:57
  Speaker 1: the world a coke. And it's of course, it's obvious
• 10:00
  Speaker 1: what your stock of the day is now. Yeah, so
• 10:02
  Speaker 1: Coca Cola down three three point three percent, the biggest
• 10:06
  Speaker 1: to clients since April, at the lowest since February. And um,
• 10:10
  Speaker 1: it may not seem like a huge move, but Cocola
• 10:13
  Speaker 1: is not a very volatile stock. Uh So three point
• 10:15
  Speaker 1: three percents a pretty big deal, and it was sort
• 10:17
  Speaker 1: of the greatest hits of of negativity today around the stock.
• 10:20
  Speaker 1: Uh First of all, you had current earnings. Um. This
• 10:23
  Speaker 1: last quarter they posted sales that missed analysts estimates, as
• 10:27
  Speaker 1: falling revenue abroad outweighed modest s games in the US.
• 10:31
  Speaker 1: On a forward looking basis, they they trim their forecast
• 10:34
  Speaker 1: for so called organic revenue UH for forecasters thought it
• 10:38
  Speaker 1: could reach four to five percent. It's actually gonna grow
• 10:40
  Speaker 1: about three percent. So that's it wasn't very favorable for investors. UH. Third,
• 10:45
  Speaker 1: there's the strong dollar effect. It's been really hurting uh
• 10:48
  Speaker 1: the overseas profitability for Coca Cola. What that does is
• 10:53
  Speaker 1: it hurts exports, and this is a big exporting company.
• 10:56
  Speaker 1: So that's sort of uh one of the big market
• 10:59
  Speaker 1: top except we've seen be a market headwin for a while.
• 11:02
  Speaker 1: And and fourth, um this whole shift towards healthy, healthier
• 11:06
  Speaker 1: alternatives for people looking for um for what to consume,
• 11:10
  Speaker 1: Coca Cola, PepsiCo, and then you have Dr Pepper Snapple.
• 11:13
  Speaker 1: They've all faced a lot of pressure from potentially declining
• 11:17
  Speaker 1: sales volumes as consumers turn to healthier alternatives. So basically,
• 11:21
  Speaker 1: everything going wrong for Cocola today, but you know, tomorrow's
• 11:23
  Speaker 1: a new day. Thanks very much, Joe Siola. You know
• 11:26
  Speaker 1: we talk about going wrong for Coca Cola, what will
• 11:29
  Speaker 1: certainly going right for shares of Facebook. Right now they
• 11:32
  Speaker 1: are up more than seven and a half percent after
• 11:36
  Speaker 1: UH they report of second quarter adjusted earnings per share
• 11:39
  Speaker 1: of nineties seven cents versus AVA Channelist estimates of eighty
• 11:43
  Speaker 1: two cents UH. The company also reporting revenue that exceeded
• 11:48
  Speaker 1: analysts estimates. US said that they made six and a
• 11:51
  Speaker 1: quarter billion dollars in AD revenues just in the second quarter.
• 11:56
  Speaker 1: We've got more coming up on Facebook. An alphabet, This
• 12:01
  Speaker 1: is Bloomberg. Bloomberg taking Stock is brought to you by
• 12:09
  Speaker 1: New York Community Bank and New York Commercial Bank, the
• 12:11
  Speaker 1: nyc B Family of banks, Bank with confidence. Anywhere you
• 12:13
  Speaker 1: see the nyc B logo, visit n y c B
• 12:16
  Speaker 1: family dot com.