American Eagle Slips, KKR Gains, Boeing Lands Major Deal

On this episode of Stock Movers:

- American Eagle (AEO) shares slip as the company pulled its guidance for the full year following a first quarter that was marred by discounting and a write-down of inventory, sending the stock down in New York trading. In a preliminary earnings release, the apparel chain said comparable sales are expected to be down about 3% in the three-month period ended May 3. Revenue is projected to be about $1.1 billion, a decline of roughly 5% from a year earlier.

- KKR & Co. (KKR) shares rose after Morgan Stanley upgraded the private equity firm to overweight from equal-weight, recommending it as a way to play the anticipated capital markets recovery. “Leaning into risk with upgrade of KKR on the back of greater-than-expected tariff de-escalation with China, and scope for better-than-feared macro path ahead, with lower recession probability, less upward inflation pressure and reduced tail risk,” wrote Morgan Stanley analysts including Michael Cyprys.

- Boeing (BA) shares are up after the company landed its biggest-ever aircraft order, with Qatar Airways agreeing to purchase up to 210 widebody aircraft, including the 787 Dreamliner and 777X model, in a deal worth $96 billion. The deal is a major win for Boeing, Qatar Airways, and President Donald Trump, who witnessed the signing ceremony and touted the pact as a record that would help secure jobs at home. The announcement in the marble-clad halls of the Qatari Royal Court gave each of the parties in attendance a big win: Trump is on a mission to the Persian Gulf to pull in trillions of dollars of commercial accords to showcase his dealmaking chops. Qatar and its namesake airline get to cement their relationship with the US by backing the country’s biggest exporter. And Boeing walks away with an order that extends its dominance in a region that’s been a major buyer of its most expensive jets.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio News, The.

Speaker 2 (00:08):
Stock Movers Report, your roundup of companies making moves in
the stock market, harnessing the power of Bloomberg Data.

Speaker 3 (00:16):
Let's take a look at some stocks on the move
this week. Carol Master along with Tim Stanovik and joining
us is Bloomberg News Equities reporter Alexandra Semenova.

Speaker 1 (00:24):
Good to have you here. Where shall we begin?

Speaker 4 (00:26):
Great to be with you. I'm taking a look here
at American Eagle. That company is sliding today after the
company pulled its full year guidance. Obviously, a lot of
firms have been doing that this reporting cycles. They tried
to navigate a tariff volatility. They actually said that the
quarter was marred by discounting and a write down of inventories.
So they're not really casting any blame here on tariffs.
They're just saying that there's a lot of macroeconomic uncertainty

(00:49):
for them after a tough quarter. Their CEO said that
they were really disappointed with the execution of the first quarter.
They also said that they their merchandise strategies didn't drive
the results that they had anticipated, and accordingly, their revenues
expected to be about one point one billion dollars. That's
a decline of five percent from a year earlier.

Speaker 5 (01:09):
That's interesting after economic uncertainty rather than you know, hey,
it is actually tariffs that are causing us, right, right.

Speaker 4 (01:16):
They kind of used a broad based term there to.

Speaker 6 (01:19):
Grow tariffs under uncertainty.

Speaker 4 (01:21):
Yeah, a lot of companies have been getting away with
that's fair.

Speaker 3 (01:24):
I always feel like with the retailers too, Like you
got to kind of like look at the individual retailer, right,
because they're just some that maybe their models changing a
challenging environment, you know, or there whatever.

Speaker 1 (01:34):
But I mean the stocks down twenty eight percent year
to date.

Speaker 4 (01:37):
Yeah, and also a pretty bad move move today as well,
five point seven percent today, was down as much as
eight point eight percent.

Speaker 5 (01:43):
All right, Well, let's talk a little private equity because
I know KKR is on your radar today.

Speaker 4 (01:47):
Yeah, some betteran news here for KKR. They got an
upgrade from Morgan Stanley. The firm moved it to overweight
from equal weight. They said that this is a good
way to play the expected recovery and capital market, so
investors really looking added to you know, the deal making
portion of the Trump agenda here, and they said that
it also has an attractive entry point right now. It's
been underperforming some of the other alternatives companies.

Speaker 1 (02:10):
They raised their price target to.

Speaker 4 (02:11):
One hundred and fifty dollars from one hundred and twenty dollars.
Shares closed yesterday about one hundred and twenty seven.

Speaker 1 (02:16):
They just want deals to start happening exactly.

Speaker 3 (02:18):
Everyone wants to deal ACU any private credit, like I
want things to you know, yeah, this.

Speaker 4 (02:25):
Is obviously with you Toro today. That's kind of a
good start to what people are expecting.

Speaker 6 (02:29):
We'll see some deals. I don't know what did they say,
A milk and.

Speaker 1 (02:31):
Carol waiting, waiting waiting.

Speaker 6 (02:35):
Okay, everybody's last week.

Speaker 3 (02:37):
That was last week, last week, but it's one ip
out like we'll see, Like TVD jime said yesterday, they
were filing.

Speaker 1 (02:44):
That's right, they did say.

Speaker 6 (02:45):
Right HYM is going to be the ticker.

Speaker 3 (02:46):
I think everybody's taking, you know, advantage of right a
market that's coming back. I will say that price target
bump up though, to one f.

Speaker 4 (02:53):
Yeah, that's a pretty hefty one.

Speaker 3 (02:54):
That's a pretty hefty one. That's some upside there. Let's
talk about Boeing staring thing. We've been talking a lot about.

Speaker 1 (03:00):
What's you know, the news coming out of the Middle East.

Speaker 4 (03:02):
Great great day for the company, a great year. Really,
they've been rebounding, a really good comeback for them. They
won an order from Qatar Airways amid a flurry of
deals between the Gulf nations and the US as the
President visits. The agreement is for the one hundred and
sixty aircraft. According to the White House, this is apparently
the largest order in the company's history, and it's also

(03:23):
a win for Boeing at a time that it has
been under pressure from delays for the latest Air Force
one presidential jets. So really positive here for Boeing, which
obviously has dealt with so many issues.

Speaker 6 (03:34):
Fifty two week high today.

Speaker 3 (03:36):
Yeah, but way off its highs of the day. I
mean it was up as much as three percent. Now
just up about half a percent.

Speaker 4 (03:41):
It had been grappling, of course, with its seven thirty
seven jet issues being responsible for the crashes that.

Speaker 2 (03:47):
Happened the Stock Mover's report from Bloomberg Radio. Check back
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