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

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

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  Speaker 1: Global business news twenty four hours a day. If Bloomberg
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  Speaker 1: I'm Charlie Pella, folks from Ramco, Gersons and Properties, ringing
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  Speaker 1: a single stock when you can invest in the entire
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  Speaker 1: sector of visits sector spd rs dot com or call
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  Speaker 1: one six sector e t F stock smooth floor. Today,
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  Speaker 1: disappointing numbers from Walt Disney to Macy's raising doubts about
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  Speaker 1: the strength of the U. S economy. Oil rose after
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  Speaker 1: an unexpected drop in inventories. Crude oil up today by
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  Speaker 1: Uh it was hired by one dollar forty two cents.
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  Speaker 1: Crude now at oh eight. Now, what is the head
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  Speaker 1: for equities for the rest of the year. Michael Bailey
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  Speaker 1: is director of Research at FBB Capital part Partners. He
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  Speaker 1: was our guests afternoon right here on taking stock. Investors
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  Speaker 1: right now are thinking there's a very low probability of
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  Speaker 1: a rate hike. UM and so if that does happen,
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  Speaker 1: I think there's a there's some validity there. So especially
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  Speaker 1: if you get you know, two or RABE three rate hikes. UM,
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  Speaker 1: certainly I think that that would keep a lid on stocks.
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  Speaker 1: But I think at this point, just looking at if
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  Speaker 1: the data has been coming out of my sense, I
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  Speaker 1: guess I tend to go along with with some of
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  Speaker 1: those other broader views that were like unlikely to see
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  Speaker 1: a hype for a while. Tough day for retailers. Macy's
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  Speaker 1: down fifteen point two percent. Diane Swank is the founder
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  Speaker 1: of Diane Swank and Associate. She was also our guest
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  Speaker 1: right here on taking Stock. We're looking at is even
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  Speaker 1: though we've seen some bad news from retailers, we also
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  Speaker 1: are seeing retailers that are going bankrupt. There's a restructuring
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  Speaker 1: in the retail sector. That doesn't mean the consumer is
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  Speaker 1: anywhere near dead. In fact, we know that some of
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  Speaker 1: the consumer data from the first quarter was underestimated because
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  Speaker 1: of the way we account for the retail sales data.
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  Speaker 1: We look at retail sales by type of retailer, not
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  Speaker 1: by what they sell x RT the spider, s m T, SMP,
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  Speaker 1: retail et F down today by four point four percent,
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  Speaker 1: SMP down twenty points, the drop of nine tenths of
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  Speaker 1: one percent, the down down two hundred sixteen, a drop
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  Speaker 1: of one gold up one point one percent, and now
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  Speaker 1: a look at the other stories making use Charlie. Thank
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  Speaker 1: you from the Bloomberg news Room by Mark Crumpton. How
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  Speaker 1: Speaker Paul Ryan says the Republican Party needs to come
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  Speaker 1: together to defeat likely Democratic presidential nominee Hillary Clinton in November.
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  Speaker 1: To pretend where unified at a party after coming through
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  Speaker 1: a very bruting primary which just ended like a week ago.
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  Speaker 1: Um to pretend reunified without actually unifying, then we go
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  Speaker 1: into the fall at half string. Speaker Ryan meets with
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  Speaker 1: presumptive GOP presidential nominee Donald Trump tomorrow. A significant portion
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  Speaker 1: of West Virginia's Democratic primary voters say they will vote
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  Speaker 1: for Donald Trump in November. As according to an ABC
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  Speaker 1: News exit poll analysis, about a third of Democrats say
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  Speaker 1: they'll vote for Trump regardless of who wins the party's nomination.
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  Speaker 1: Six of Democratic primary voters say the economy and jobs
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  Speaker 1: are the most important issues. FBI Director James Comey, speaking
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  Speaker 1: out on the investigation into the private email server account
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  Speaker 1: Hillary Clinton used during her time as Secretary of State.
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  Speaker 1: Director Comy told reporters, quote, I remained close to that
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  Speaker 1: investigation to ensure that it's done well and has the
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  Speaker 1: resources it needs and quote. ABC News reported last week
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  Speaker 1: the FBI was seeking to interview Mrs Clinton soon, but
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  Speaker 1: a Clinton spokesman says she hasn't received an invitation from
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  Speaker 1: the FBI to answer questions. A new right to Die
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  Speaker 1: bill has been introduced to New York's legislature. It would
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  Speaker 1: allow terminally ill patients to request life ending drugs from
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  Speaker 1: a physician. The proposal would require two doctors to certify
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  Speaker 1: the patient's illness is in fact terminal. Global News twenty
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  Speaker 1: four hours a day, powered by our two hundred journalists
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  Speaker 1: in more than one hundred the news bureaus around the world.
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  Speaker 1: From the Bloomberg Newsroom, I'm Mark Crunton, Charlie, and we
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  Speaker 1: thank you and again recapping a two hundred seventeen point
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  Speaker 1: dropped today for the down Jones Industrial Average down one,
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  Speaker 1: Disney down four, SMP down nineteen, a drop of one percent.
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  Speaker 1: I'm Charlie Palatine. That's a Bloomberg Business flash move around.
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  Speaker 1: Mosten creates the motion the elite move. You move like
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  Speaker 1: they do. I've never seen anyone move that br let's
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  Speaker 1: move like. To get a purpose is called movers and shakers.
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  Speaker 1: It costs a little more, and that name cracked me up.
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  Speaker 1: Bloomberg taking stock movers and Shakers with Pim Fox and
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  Speaker 1: Kathleen As on Bloomberg Radio. Movers and Acres for Wednesday,
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  Speaker 1: May eleven, twenty sixteen eighties. Six issues in the SMP
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  Speaker 1: five hundred index advance, four hundred and fifteen decline, and
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  Speaker 1: four remain unchanged. Dave Wilson, Bloomberg Stocks Commist, joins us
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  Speaker 1: now to begin our movers and shakers. I'll tell you.
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  Speaker 1: Charlie Pellett mentioned that fifteen percent dropping Macy shares after
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  Speaker 1: they came out with their fiscal first quarter results. They
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  Speaker 1: may have hit home for investors because it really was
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  Speaker 1: the kickoff of earning season for these companies because after all,
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  Speaker 1: typical fiscal year and retailing ends in January, which means
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  Speaker 1: the first quarter ends in April, so it's a month
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  Speaker 1: behind everybody else. Tomorrow, you've got two more retailers coming
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  Speaker 1: out with Ernie's and their stocks got hit today. I'm
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  Speaker 1: refer into Cole's, which lost six percent, and Nordstrom, which
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  Speaker 1: fell seven percent on Friday, you get numbers out of J. C.
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  Speaker 1: Penny and that stock dropped two and a half percent
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  Speaker 1: in today's trading, definitely following Macy's lead. Well, let's take
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  Speaker 1: a look at Fossil, because it was more and just
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  Speaker 1: the fact that so many retailers got beaten up today. Uh,
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  Speaker 1: what people are seeing is a Fossil has yet to
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  Speaker 1: beat back competition from smart watches like the Apple Watch
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  Speaker 1: and Samsung Gear. In fact, the Fossils share price down
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  Speaker 1: today four cents in the clothes he's sitting as low
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  Speaker 1: as price and more than six years. It slashed its
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  Speaker 1: full year earnings forecast, saying they will be one dollar
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  Speaker 1: and eighty cents to two dollars and eighty cents a
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  Speaker 1: share in the current fiscal year. Compare that to the
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  Speaker 1: earlier projection of two dollars and eighty cents to three
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  Speaker 1: dollars in sixty cents. Now, this is, of course what
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  Speaker 1: they said in a statement yesterday, but earnings down twelve
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  Speaker 1: cents per share in the first quarter. UH analysts were
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  Speaker 1: looking for a fiferent average estimate. So the company also
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  Speaker 1: saying it expects gross margins to contract because of an
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  Speaker 1: expected increase in outlet promotions, a greater reliance on sales
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  Speaker 1: through off price retailers, and more. Anyway, Fossil having a
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  Speaker 1: tough day to day luck up a lot of other retailers.
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  Speaker 1: All right, so you mentioned Apple, so we'll talk about Apple.
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  Speaker 1: Share down about one percent today, down eight seven cents
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  Speaker 1: ninety two fifty five on the closed stock is down
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  Speaker 1: about twelve percent so far this year. But it might
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  Speaker 1: be getting even worse for some of the mobile phone
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  Speaker 1: makers because Pegatron, which assembles iPhones, they missed profit expectations
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  Speaker 1: and said that April sales were down sixteen percent. Uh
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  Speaker 1: minam Bia, which makes the LED lights for mobiles, they
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  Speaker 1: lagged their own forecast for revenue as well as earnings,
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  Speaker 1: and japan Display, they supply the screen to Apple and
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  Speaker 1: other mobile phone makers, said that profit has deteriorated so
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  Speaker 1: rapidly it's gonna lose money for the first for the
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  Speaker 1: fiscal year and also will suspend a promised dividend payment.
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  Speaker 1: Shares of Apple down about one percent today tell you
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  Speaker 1: the declines among the department store chains. They also played
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  Speaker 1: out among suppliers, and one of them Ralph Lauren has
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  Speaker 1: earnings coming out tomorrow, and you have to be concerned
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  Speaker 1: because Ralph Lauren gets about twelve percent of their revenue
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  Speaker 1: from Macy's, one of the bigger suppliers to that Jay.
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  Speaker 1: So what Nacy has had to say about their sales
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  Speaker 1: got people concerned about what's ahead for Ralph Lauren, and
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  Speaker 1: that stock fell almost five and a half percent today. Well,
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  Speaker 1: Amazon continues to climb. The move is not that big today,
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  Speaker 1: one and a half percent to UH seven or thirteen dollars,
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  Speaker 1: But let's bear in mind a couple of days ago,
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  Speaker 1: UH Amazon was trading around six d fifty dollars a year,
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  Speaker 1: a high profile call this week for Amazon share price
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  Speaker 1: to hit a thousand dollars a share over the longer term,
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  Speaker 1: and now today um Cohen analysts saying that they expect
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  Speaker 1: Amazon to become America's top clothing retailer by next year.
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  Speaker 1: Their apparel and accessories market share will go from five
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  Speaker 1: percent to fourteen percent, the team led bye John black
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  Speaker 1: Ledge wrote today, and they compare that to UH mar
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  Speaker 1: Mart and Target, where the apparel purchases from those chains
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  Speaker 1: felt one percent year over year and five percent respectively.
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  Speaker 1: Amazon the only retailer in the SMP rise today, are
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  Speaker 1: just gonna tell quickly about Boeing shares a bowing down
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  Speaker 1: about four tenths of a percent today. Uh. This comes
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  Speaker 1: after the chief financial officer of Boeing said that cash
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  Speaker 1: flow is going to help with stock repurchases. Now. One
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  Speaker 1: of the issues having to do, of course with Boeing
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  Speaker 1: is what they're gonna do with all that cash. Well,
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  Speaker 1: Gary greg Smith rather said during an investor conference that
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  Speaker 1: cash flow it's gonna outpace earnings gains and that that
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  Speaker 1: will make it so that there's a return of free
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  Speaker 1: cash to the shareholders. They expect significant returns from the
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  Speaker 1: seven eight seven, from the max from the triple seven
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  Speaker 1: as well, and they're going to be recovering about seven
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  Speaker 1: eight seven costs. Once again, shares A bowing down about
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  Speaker 1: a half percent today. It is time now with the
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  Speaker 1: fourteen point five eight to the cloth is up five
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  Speaker 1: and a half percent, so the first climb in fact
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  Speaker 1: in five days. The VICS though down about five percent
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  Speaker 1: this month after rising in April. All right, Dave, you're up.
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  Speaker 1: H Hi, my name is Dave. Just what do you
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  Speaker 1: think you're doing. We're going for a price on Wilson, Dave, Dave, Hey,
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  Speaker 1: Mr Wilson, continue your excellent theme of busted initial public offerings. Well,
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  Speaker 1: we're gonna talk about Phogo to Chow today. It's an
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  Speaker 1: owner of Brazilian steak houses or cerascaris. Waiters carved meat
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  Speaker 1: table side, and customers can eat as much as they want.
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  Speaker 1: Company has twenty four restaurants in the US, including one
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  Speaker 1: here in Midtown Manhattan. They're also locations in Puerto Rico,
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  Speaker 1: Mexico and Brazil. The Fogo to Chow was founded back
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  Speaker 1: in nineteen seventy five and went public last June. Companies
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  Speaker 1: ticker is its first name, fo g O Fogo. The
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  Speaker 1: initial public offering was done at twenty dollars a share,
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  Speaker 1: and by the end of August the stock became a
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  Speaker 1: busted I p O by falling below the initial price
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  Speaker 1: it's lowest thirteen dollars and forty cents set in February.
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  Speaker 1: Well Fogo to Chow rallied in the past three months.
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  Speaker 1: The recovery was set back late yesterday with the release
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  Speaker 1: of first quarter results. Ernie's were twenty one cents of share,
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  Speaker 1: trailing the average estimate of twenty three cents among analysts
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  Speaker 1: and Bloomberg survey. Revenue came up short of the average
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  Speaker 1: projection by about four percent, and the company cut full
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  Speaker 1: year sales forecast. The results sent Fogo to Chow to
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  Speaker 1: its biggest one day loss since going public. The shares
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  Speaker 1: fell eleven and a half percent. It still makes me
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  Speaker 1: hunger when you talk about it, Dave, Dave Wilson, thanks
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  Speaker 1: so much. Are Stocks editor. I'm Kathleen Hayes along with
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  Speaker 1: PM Fox. This is taking Stock up. Next, we're gonna
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  Speaker 1: look at some of the big retailers in the news today.
• 11:53
  Speaker 1: We're gonna look at Macyson, and we're gonna look at
• 11:54
  Speaker 1: a deal that got busted up by a federal judge.
• 11:58
  Speaker 1: This is Bloomberg Grade. You keep it right here, Bloomberg.
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