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

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  Speaker 1: Bloomboo Business News twenty four hours a day. If Bloomberg
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  Speaker 1: this is a Bloomberg Business flock Strom Bloomberg World Handquarters
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  Speaker 1: signed Charlie Pellett's sound of the closing Bell at the
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  Speaker 1: New York Stock Exchange and it's the folks from the
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  Speaker 1: sixteen Hong Kong Dragon Boat Festival ringing that closing bell.
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  Speaker 1: The down lower SMP and nestack advancing the SMP five
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  Speaker 1: hundred index, staging an afternoon comeback as it heads for
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  Speaker 1: a fifth monthly game. Final trading session of the month
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  Speaker 1: is tomorrow. We did get a raft of corporate earnings trading,
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  Speaker 1: though light as investors await data tomorrow on the strength
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  Speaker 1: of the U S economy, SMP five hundred index picking
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  Speaker 1: up three points to twenty one seventy, the record there
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  Speaker 1: seventy five. That is a gain today of two tents
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  Speaker 1: of one percent. Town industrials fell sixteen points to eighteen thousand,
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  Speaker 1: four hundred fifty five, a drop of point one percent.
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  Speaker 1: Now stack up fifteen to fifty one fifty four, a
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  Speaker 1: gain of three tenths of one percent. Gold of twenty
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  Speaker 1: ounce the thirteen thirty four, a gain of six tenths
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  Speaker 1: of one percent. Ford second quarter profit fell short of
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  Speaker 1: analysts estimates, driving shares down the most in eleven months,
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  Speaker 1: after the company warned that a stalling US auto market
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  Speaker 1: threatens its full year earnings target. Bob Shanks is Ford's
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  Speaker 1: chief financial officer. He was interviewed this afternoon right here
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  Speaker 1: on taking stock. It was a strong quarter for us.
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  Speaker 1: It wasn't quite what the market expected, but when you
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  Speaker 1: take it with the record first quarter that we had.
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  Speaker 1: For the first half, we had the best results we've
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  Speaker 1: ever had for North America and for the company itself,
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  Speaker 1: So you know, it's a very very strong start to
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  Speaker 1: the year. Ford shares down today by eight point two percent,
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  Speaker 1: dropping a dollar thirteen to twelve seventy one. Oracle buying
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  Speaker 1: net Suite for nine point three billion dollars. Oracle has
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  Speaker 1: been lagging the competition in cloud based services. Oracle shares
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  Speaker 1: they're up six tenths of one percent to forty one nineteen.
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  Speaker 1: The big story though, net net Suite, surging eighteen point
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  Speaker 1: four percent to one oh forty one, again recapping a
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  Speaker 1: move higher for the SMP five decks up three to
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  Speaker 1: seventy a gain of two tenths of one percent four
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  Speaker 1: oh two on Wall Street. Now, let's take a look
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  Speaker 1: at other news from around the world. Charlie, thank you
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  Speaker 1: from the Bloomberg News room, I Mark Crumpton. Hillary Clinton
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  Speaker 1: takes center stage tonight as the Democratic National Convention draws
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  Speaker 1: to a close in Philadelphia. Bloomberg's Bob Moon with more
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  Speaker 1: on the story. Clinton's acceptance speech tonight could be crucial
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  Speaker 1: to showing voters she's got the grit. President Obama spoke
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  Speaker 1: up last night. Clinton, if that woman in the area,
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  Speaker 1: she is tonight, and it's her chance to launch herself
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  Speaker 1: on the same kind of post convention bounce. Donald Trump
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  Speaker 1: has been quick to brag about this week we're leading.
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  Speaker 1: Clinton strategist Joe Bennis until Bloomberg Politics, he doesn't give
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  Speaker 1: much weight to the Trump bump. The bounce is only
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  Speaker 1: relevant in that it's reinforcing that the election is going
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  Speaker 1: to be close, and Clinton could see her own bill
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  Speaker 1: so she can win over progressives who backed rival Bernie
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  Speaker 1: Sanders and convinced independence she has the right stuff. Bob Moon,
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  Speaker 1: Bloomberg Radio. State Department spokesperson John Kirby today commented on
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  Speaker 1: reports that the Turkish government has ordered dozens of media
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  Speaker 1: organizations closed following that failed military coup. State supports freedom
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  Speaker 1: of expression around the world, and we have concerns when
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  Speaker 1: any country makes a move to close down media outlets
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  Speaker 1: and restrict this universal value. We expect church authorities to
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  Speaker 1: uphold their assurances that the Turkish government will protect the
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  Speaker 1: rule of law and fundamental freedoms. The FBI and the
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  Speaker 1: NYPD are asking the public for help finding a suspect
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  Speaker 1: they say robbed a Santander bank on Staten Island dressed
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  Speaker 1: as a woman. Authorities say the man had on a
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  Speaker 1: silver and black dress, silver high heels, a black at
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  Speaker 1: and sunglasses, and then pulled his silver handgun on a teller.
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  Speaker 1: Police say he should be considered armed and dangerous. Global
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  Speaker 1: News twenty four hours a day, powered by more than
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  Speaker 1: twenty undred journalists and analysts in more than one twenty countries.
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  Speaker 1: I'm more Crumpton, this is Bloomberg, Charlie, and we thank you.
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  Speaker 1: In Amazon's second quarter numbers around dollars seventy eight estimates,
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  Speaker 1: there were four a dollar twelve sales thirty point four
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  Speaker 1: billion dollars estimates on Amazon twenty nine point five billion,
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  Speaker 1: an update for the SMP five hundred indecks up three
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  Speaker 1: points to one seventy, a gain of two tenths of
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  Speaker 1: one percent. I'm Charlie Pellett, and that's a Bloomberg business
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  Speaker 1: slash move around motion, great promotion. I move, you move
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  Speaker 1: like they do. I've never seen anyone move that back
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  Speaker 1: hard people. Let's moved like to tread A purpose that
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  Speaker 1: was called movies and Shakers. They cost a little movement.
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  Speaker 1: That name cracked me up. Bloomberg taking stuff Movers and
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  Speaker 1: Shakers with bim Box and Kathleen May's on Bloomberg Radio
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  Speaker 1: Movers and Shakers for Thursday twenty sixteen. Taking a look
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  Speaker 1: at the SMP five hundred, two hundred and ninety issues advanced,
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  Speaker 1: two hundred and nine decline, and six remain unchanged. I
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  Speaker 1: want to bring in Joe Cioli, Bloomberg News Stocks Reporter,
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  Speaker 1: to kick off our movers and shakers. Alright, First up,
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  Speaker 1: we have g NC Holdings. You may know this company.
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  Speaker 1: It's the vitamin supplement retailer that you can find at
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  Speaker 1: your local mall. Well, it was down today, a lot
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  Speaker 1: of a lot of bad news. Um their chief executive officer,
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  Speaker 1: Michael Archbold resigned and stepped down from the board of directors.
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  Speaker 1: He was replaced by the former pet Smart CEO, Robert
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  Speaker 1: Moran on an interim basis. UM Also, g NC suspended
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  Speaker 1: its two thousand sixteen financial guidance on Thursday and said
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  Speaker 1: in a statement that second quarter sales in domestic company
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  Speaker 1: owned stores fell three point seven percent, which prompted a
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  Speaker 1: slew of analyst downgrades. So, um, a lot going wrong
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  Speaker 1: for g NC right now, and that ignores the fact that, uh,
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  Speaker 1: you know, most of their stores are in malls and
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  Speaker 1: foot traffic is down there as well, so down well. Uh. Alphabet,
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  Speaker 1: parent of Google, just reporting as well, and the shares
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  Speaker 1: are up five percent, going on six percent after the close.
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  Speaker 1: They beat in a couple of very important ways. Revenue
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  Speaker 1: came in at seventeen and a half billion dollars. There
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  Speaker 1: was sixteen point nine billion dollars expected, earnings per share
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  Speaker 1: eight dollars and forty two cents versus eight dollars and
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  Speaker 1: three spins cents expected. And it's only the third quarter
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  Speaker 1: that Alphabet has reported under its new operating structure. So, boy,
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  Speaker 1: three is a charm. This is so far looking like
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  Speaker 1: a good report. PIM. Yes, so I'm gonna tell you
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  Speaker 1: though about well an old economy company, and well, just
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  Speaker 1: tell you about US Steel now. The shares of US
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  Speaker 1: Steal today moving higher mainly because of a report earlier
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  Speaker 1: in the week about their earnings per share, but also
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  Speaker 1: about their future and the introduction of tariffs that would
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  Speaker 1: present a problem for imports. Steal shares of US Deal
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  Speaker 1: today higher by more than five and a half percent,
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  Speaker 1: and the shares of U Steal this is their highest
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  Speaker 1: level in nearly fourteen months. The company also saying that
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  Speaker 1: full year forecast will include a profit of about fifty
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  Speaker 1: million dollars and steel price increases announced earlier in the
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  Speaker 1: year will be implemented with customers who buy Steal contracts
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  Speaker 1: once again. Shares of U s Steal symbol X up
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  Speaker 1: more than five and a half percent. Next up group
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  Speaker 1: on UH the UH. This company's up twenty nine today.
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  Speaker 1: It's stared the most in five months after raising its
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  Speaker 1: full year revenue forecasts, citing recent customer gains after revamping
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  Speaker 1: its market programs. UM. What we've seen here is the
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  Speaker 1: their new CEO, Rich Williams, has been transforming the company
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  Speaker 1: from the daily deal email provider that we kind of
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  Speaker 1: all know it to be to an online destination for
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  Speaker 1: people looking for bargains. They were able to add about
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  Speaker 1: one point one million new active customers from North America
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  Speaker 1: last quarter, bringing their total to seven point nine million.
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  Speaker 1: So some nice growth trends. They're kind of pivoting a
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  Speaker 1: business strategy and investors rewarding them for it. Well. Uh,
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  Speaker 1: master Card speaking of another old line company, who the
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  Speaker 1: thought that with all the credit cards solicitations, doesn't everybody
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  Speaker 1: already have more credit cards than they need? And yet
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  Speaker 1: um more customer cards spending increasing. That's what boosted master
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  Speaker 1: Card today second quarter net income climbing six point seven
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  Speaker 1: percent to nine d eighty three million dollars. The chief
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  Speaker 1: financial officer, in a phone interview today told Bloomberg News,
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  Speaker 1: the underlying fundamentals of our business have not changed. They're good.
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  Speaker 1: We're going to continue to exit execute in terms of
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  Speaker 1: what we said we would be doing. More people replacing
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  Speaker 1: cash and checks with electronic payments. Um, there's all kinds
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  Speaker 1: of new technologies beyond plastic cards, from refrigerator that can
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  Speaker 1: order groceries to a robot named Pepper that can take
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  Speaker 1: customers orders. A pizza hut PAM three convenient it certainly is. Um.
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  Speaker 1: Let me tell you what's going on with Amazon after
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  Speaker 1: a second quarter earnings per share of a dollar seventy
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  Speaker 1: eight that exceeded analysts estimates of a dollar twelve, also
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  Speaker 1: sales coming in better than estimated. Taking a look at
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  Speaker 1: the results, a thirty point four billion estimate was for
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  Speaker 1: twenty nine point five. Yet the shares well basically unchanged
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  Speaker 1: right now. A lot of it having to do with
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  Speaker 1: Amazon saying that they see third quarter operating income between
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  Speaker 1: the five hundred to six hundred and fifty million dollars
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  Speaker 1: and the estimate there was for eight hundred and fifteen millions.
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  Speaker 1: So we'll be watching the shares of Amazon, which are
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  Speaker 1: just trading a little bit higher, about half a percent
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  Speaker 1: in after hours trading. Should we take a quick look
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  Speaker 1: at volatility with Jose the early Trific story out today. Yeah,
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  Speaker 1: So what we've seen is this uh, this volatility product
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  Speaker 1: called the v x x UH. It's it's a long
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  Speaker 1: vaul instrument that people used to get exposure to the
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  Speaker 1: vix um. What we've seen there is UH is people
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  Speaker 1: using that as head for a hedge or to maybe
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  Speaker 1: make a directional bet on SMP five hundred However, to
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  Speaker 1: make money, the SNP has to drop. And what we've
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  Speaker 1: seen is that when people load up on the VXX,
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  Speaker 1: the SMP keeps gaining, So it hasn't exactly been the
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  Speaker 1: most effective hedge. Yeah, alright, he comes with his own
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  Speaker 1: music today. The whole world, well, the Whole Foods market
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  Speaker 1: share is not really happening today, right, Yeah, Whole Foods
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  Speaker 1: had a really rough day, down nine, the most in
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  Speaker 1: the SMP. Five. Uh, that's the most in almost a year.
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  Speaker 1: And what we saw was third quarter sales missing analyst estimates,
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  Speaker 1: a sign that the organic food chain is struggling to
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  Speaker 1: fend off new competition from mainstream supermarkets. Uh. Same store
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  Speaker 1: sales fell two point six percent in the period, which
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  Speaker 1: was more than what analysts had expected. And uh, really,
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  Speaker 1: what we're seeing his Whole food suffering through its worst
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  Speaker 1: sale else slump since two thousand nine as its struggled
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  Speaker 1: to shed its quote unquote whole paycheck image and um
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  Speaker 1: places like Kroger, Walmart and other major chains have boosted
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  Speaker 1: their offering offerings of organic and natural foods, which is
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  Speaker 1: bringing competition to to this market. Bloomberg News is gadifly
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  Speaker 1: columnst Shelley Banjo actually had a really interesting column today.
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  Speaker 1: She thinks that Whole Foods made a mistake by cutting
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  Speaker 1: prices along with everyone else, uh in a in a
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  Speaker 1: h an attempt to boost sales. They did cut prices,
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  Speaker 1: but Shelley is arguing here that that's not really their
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  Speaker 1: sweet spot. No one goes to Whole Foods to bargain hunt.
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  Speaker 1: They go there for quality. They go there because they
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  Speaker 1: know that they're going to get a great product and
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  Speaker 1: that they should probably keep their prices a little higher.
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  Speaker 1: As a as a customer, I'm fine with them being low,
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  Speaker 1: but as an investor, maybe I'd want them to raise them.
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  Speaker 1: Very interesting analysis, Joseila, thank you so very much. Whole Foods. Yes, um,
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  Speaker 1: they've got some struggles. But that last person you sided,
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  Speaker 1: maybe go in a bit of a contrary and maybe
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  Speaker 1: that's the right called. Josian Stockmach, reporter for Bloomberg News.
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  Speaker 1: This is Bloomberg coming up right now. The shares of
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  Speaker 1: Amazon are hired by one and a half percent. A
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  Speaker 1: company reports second quarter earnings per share of a dollar
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  Speaker 1: seventy eight, exceeding analysts estimates of a dollar twelve. What's
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  Speaker 1: next for the retail giant