Closing Bell: Intel Tumbles, Tesla Rebounds, Deckers Rises

On this episode of Stock Movers:

Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Scarlet Fu, Carol Massar and Tim Stenovec.

- Intel (INTC) shares tumbled nearly 10% during trading Friday after Chief Executive Officer Lip-Bu Tan sparked concerns that he was more focused on cost cutting than restoring the chipmaker’s technological edge. As part of Intel’s second-quarter report, Tan said the company will cancel some factory projects and take a more conservative approach to future spending. Tan called the investments begun under his predecessor, Pat Gelsinger, excessive and unwise.“I do not subscribe to the belief that if you build it, they will come,” he said on a conference call with analysts. At the same time, Tan struggled to give a clear picture of how he’ll make the company more competitive again. Gelsinger had embarked on an ambitious plan to turn Intel into a chip foundry, a business that makes products for outside clients. A key part of that was moving toward a more advanced production technique called 14A. But Tan signaled Thursday that Intel will only roll out that technology tentatively.

- Tesla (TSLA) shares rebounded after a rough stretch following earnings and CEO Elon Musk warning of difficult times ahead. “We probably could have a few rough quarters,” Musk said. “But once you get to autonomy at scale in the second half of next year, certainly by the end of next year, I would be surprised if Tesla’s economics are not very compelling.”

- Deckers (DECK) shares soared during trading on Friday. Fuzzy Ugg boots and chunky Hoka running shoes saw big sales gains last quarter, bolstering financial results for parent company Deckers Outdoor Corp. Net sales for both brands surpassed analysts’ estimates in the fiscal first quarter ended June 30. Ugg sales rose about 19% from a year ago, while Hoka increased roughly 20%, Deckers said in a statement. The company’s shares gained as much as 21% on Friday, the biggest intraday rise since October 2023. The stock had fallen 48% this year through Thursday’s close. Rival Swiss sneaker marker On Holding AG shares also rose 5.3% in premarket trading.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.

Speaker 2 (00:09):
This is the closing bell on this stock mover's report.
The company's making moves at the close of US trading
with Carol Master, Tim Stenebeck, Romain, Bostik, and Scarlet Food.

Speaker 3 (00:22):
We had some fairly broad based buying today, Scarlet three
hundred and thirty two names in the S and P
five hundred to the Upside one hundred and sixty seven,
losing ground for Unchange at least as we settle in here.

Speaker 4 (00:33):
All right, let's take a look at what's leading the
games today. It's really a mix of cyclicals and of
course big tech. You have materials and industrials, each getting
about a percent. Consumer discretionary up about eight tenths of
one percent, and then on the flip side, energy lower
by four tens of one percent, communications services moderately lower.

Speaker 3 (00:51):
All right, let me get to some of the individual
gainers if I may, And I feel like these are
perhaps all things in Romain's life, but we'll have to
see if that's true. Let's start with deckers, because that
is your number one gainer in the S and P
five hundred. I definitely see some ugs and some hokahs,
in his closet. Stock was up as much as twenty
percent intraday, finishing the day with a gain of about
eleven percent. But, as I said, number one gainer in

(01:13):
the SNP net sales for ug and Hoka, surpassing analysts
estimates in the fiscal first quarter, ugg sales rising about
nineteen percent, Hokah sales increasing roughly twenty percent. Bloomberg Intelligence
our own analysts saying that uggs momentum further validates their
conviction about the brand's health, and Hoka outperform expectations as
new product upgrades fuel demand. All right, Also check out

(01:34):
remain Tom. You might find a YETI or two in there.
We had that stock up about five point six percent
here at the close after a Betaville Uncooked alert says
the outdoor products maker may have attracted some takeover interest.
You might remember back in May that the stock rose
after Jeffries said that the consumer products company stands out
as an attractive target for private equity. The report, though

(01:57):
in today's trade, citing people following the situation, identity of
a potential buyers and clear though some of the people
suggest a PE firm may be interested to maybe a
private equity play, and then it's.

Speaker 1 (02:08):
Wanted to be great effle like Deckers just bought them.

Speaker 5 (02:12):
Carry what are the synergy?

Speaker 1 (02:14):
Is your big gigantic mug with your.

Speaker 3 (02:17):
Actually I think people who wear uggs probably carry yetties.

Speaker 5 (02:19):
Can I make it?

Speaker 1 (02:20):
I just carry like Stanley cups.

Speaker 3 (02:21):
Sorry, all right, all right, all right. One more thing
that might be in remains driveway at Tesla. Probably not.
I'm thinking you're not a driveway? Are you a Tesla guy?

Speaker 1 (02:30):
Well, first of all, yeah, I live in Manhattan, So no,
I don't.

Speaker 2 (02:33):
Have a driveway.

Speaker 5 (02:33):
If you have a driveway, then I'm going with you
to the Hamptons. You gotta driveway.

Speaker 3 (02:38):
You have a driveway for Tesla or garage?

Speaker 4 (02:40):
Because you need to try.

Speaker 1 (02:41):
Who drives in the city?

Speaker 5 (02:42):
Come on, all right, we all drive in the city.

Speaker 3 (02:44):
I drive in the city, all right, all right. So
Tesla was a top gainer number two gainer in the
NASDAQ one hundred stock up about three and a half percent.

Speaker 1 (02:53):
We know there.

Speaker 3 (02:54):
It was sold off yesterday following uh Tesla's report that
came late Wednesday. In Elon's warning, Alice though raising price
targets for Tesla since it reported earnings eight change price targets.
The average change was up about three percent, five raised
price targets by an average of almost nine percent, three
cut their price target targets by an average of seven percent,

(03:14):
and four analysts downgraded their investment recommendation none.

Speaker 1 (03:18):
All right, I hope yours a better.

Speaker 5 (03:20):
Hey, I actually got the two worst performers on a
percentage basis in the S and P five hundred. Let's
start with Intels down eight point five percent. You guys
know what happened yesterday after the bell, Intel CEO lit
Bhutan spark concerns that he's more focused on cost cutting
than restoring the chip maker's technological edge. Check out what
he said on the call quote, I do not subscribe

(03:43):
to the belief that if you build it, they will come.
He was referring to future spending and the spending under
his predecessor just over the last couple of years in
building these facilities, some of which they stopped building and
they slowed down to constructure.

Speaker 1 (03:57):
I'm curious, so I know everyone's taking that as a negative.
Is that potentially maybe a positive? I know there's been
so much talk about how all these other companies are
just spending all this money willy nilly and not really
seeing a return from it. Maybe a more pragmatic approach.

Speaker 3 (04:10):
I feel like Ian King said, you got to spend.

Speaker 5 (04:12):
Though, right, Yeah, I mean think about this. This is Intel.
This was like the king of chip making back in
the day.

Speaker 3 (04:18):
Yeah.

Speaker 5 (04:18):
Yeah, it's a cyclical business. But Intel has completely missed
out on this cycle. I mean yesterday, this was before
the bell came, before the earnings. This was one hundred
billion dollar company. It's now about a ninety billion dollar company.
The question is what does it look like in its
next iteration and how does it compete with the big
players up?

Speaker 4 (04:34):
I mean the bears would say that comment sounds like
he's managing for a decline or through a decline, rather
than managing for a recovery, right, or for growth.

Speaker 5 (04:42):
I mean that's what big exact and that's why I
think you saw the reaction today so well as the
way to see. Remember he's still a new CEO, so
he's got some time for a turnaround. But we've been
saying that about the last two CEOs as well. I
think it's fair to say, Hey, also, Charter Communication, this
was the worst performer in the S and P five
hundre today had its worst single day ever, down eighteen
and a half percent. This after the company said it

(05:04):
lost one hundred and eleven thousand residential high speed internet
customers in the quarter that ended at the end of June.
It was more than analysts had predicted. They're facing pressure
from the rise of five G from mobile companies and
also fiber home internet offerings as well. And finally taking
a look at Pinnacle Financial Partners down twelve percent along
with Sonovas down twelve and a half percent, this after

(05:26):
the companies agreed to an all stock transaction valued at
eight point six billion dollars. It'll combine these two banks
in the US Southeastern market. But investors not liking the
looks of this, at least today.

Speaker 1 (05:38):
All right, let's take a quick look at yield. We
did actually see some movement. They are relatively modest movement,
to be sure, but to the downside, basically about a
one basis point across the board here. And it gets
to this idea of us a little bit of stasis
right now going on in the yield spaces. Everyone really
tries to game out, guys, where we go next with rates,
particularly in light of all the pressure the White House

(06:01):
on Jay Powell, which we all were here live on Area.

Speaker 4 (06:04):
Yesterday, sometimes with harthads, sometimes without.

Speaker 1 (06:06):
Well, the hardhats just was like, I mean, Chef's Kiss.
I mean, honestly, that's the best television we've had.

Speaker 3 (06:12):
Ye that moment in time is just like seared. Yeah.

Speaker 2 (06:17):
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