Kohl's Rises, Eli Lilly Drops, Microsoft Surge on Strong Cloud Growth

On this episode of Stock Movers:
- Kohl's (KSS) shares rise after the company fired its chief executive officer after the board found he directed the company to do millions of dollars of business with someone he had a personal relationship with on “highly unusual terms.” The company said it is starting a search to find a permanent replacement following the departure of Ashley Buchanan and that Chairman Michael Bender would serve as interim CEO, according to a statement.
- Eli Lilly & Co.’s (LLY) shares dropped in morning trading after CVS Health Corp. announced a plan to drop its blockbuster weight-loss drug Zepbound, making rival Wegovy more widely available. The drugmaker also cut its full-year earnings outlook, citing research and development costs.
- Microsoft (MSFT) shares surge after the company reported stronger-than-expected quarterly sales and profit growth, suggesting customer demand for cloud services has held steady despite a wave of tariffs and economic turbulence. During a call with analysts, Chief Financial Officer Amy Hood said Azure will grow as much as 35%.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, The Stock Movers podcast,
your roundup of companies making moves in the stock market,
harnessing the power of Bloomberg Data. Let's take a look
at some of the stocks on the move today. We're
doing by bloombergs Normal, Linda Normal, what are you looking
at it?

Speaker 2 (00:22):
Well, a super super busy earnings day today, but I'm
keeping an eye on Coals. Of course, this is the
news that everyone's been really looking through parsing through. The
CEO was removed from the board and the CEO will
be stepping down. This is after the board found out
that uh Buchanan, Ashley Buchanan, the CEO, was being pushed
a company to enter into a multimillion dollar consulting agreement

(00:45):
where they found out that same individual was also a
part of the consulting team and it was made clear
that mister Buchanan did not disclose this relationship as was
required under the company's code of ethics. So, of course
that's going to be a shake up at Cole's and
they did put in an interim CEO that pulled from
the board. So great for Coals in that scenario. But
we are seeing shares of the company higher up about

(01:07):
seven percent right now. So it seems as though Wall
Street is happy that this is being cleared up here,
but definitely a lot of uncertainty when you look at
it on a broader landscape. I mean, we're seeing Coals
shares down about forty nine percent so far this year,
so brutal year for the company thus far. Yeah, talk
about brutal. All right, let's go to Eli Lily. That's
not come around. The loads of the session done about
eight percent. What happened here that's giving so much angst

(01:30):
to investors. So what's happening here with Eli Lily is
the CBS situation that's going on there. So Cees said
that it will be dropping Eli Lilly's weight loss drug
zet bound. They will then be turning toward Novo Nordists
Wagovy drug instead. So of course, this isn't great news
for Eli Lily to lose such a deal like that.
We're seeing Lily shares Eli Lily shares down about eight

(01:52):
percent right now, but we are seeing Novo Nordists shares
up just a touch, about half a percent right now.
But we do think that, of course, this is some
great news for Novo Nordis to be getting this deal
with CBS for a stock that's been down about twenty
two percent this year in comparison to elilaly seven percent
gain Microsoft, how about that one. I mean, that's really
been pushing indexes higher as we're seeing information technology the

(02:15):
best performing group in the S and P five hundred. Today,
shares a Microsoft are up about two percent, but they
were really hitting some highs. This is after its third
quarter results beat expectations. Of course, we're in the midst
of these tech earnings and people are really looking to
see where's a really high bar for these companies and
whether or not they're actually able to meet them or
surpass them. So here for Microsoft, the company's cloud business

(02:36):
was seen as a highlight, and they're seeing that it
continues to benefit from the demand and its AI services,
which we know AI has been a hot.

Speaker 1 (02:43):
Topic the Stock Movers podcast from Bloomberg Radio. Check back
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