Lululemon Tumbles, Broadcom Surges, Lennar on Eco Data

On this episode of Stock Movers:
- Lululemon (LULU) shares tumble after the company slashed its outlook due to weakening demand and the Trump administration's tougher trade policies. The retailer warned it will take a $240 million hit from President Donald Trump's decision to end the de minimis exemption and now projects lower sales for the third quarter.
- Broadcom (AVGO) shares rose after the company announced they would be helping OpenAI design and produce an artificial intelligence accelerator from 2026, getting into a lucrative sphere dominated by Nvidia Corp.
- Lennar (LEN) shares rose after a weaker-than-expected jobs report prompted traders to fully price a rate cut by the Federal Reserve in less than two weeks.

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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):
All right, let's take a look at some of the
stocks on the move today.

Speaker 4 (00:18):
If Wall swinging alongside Scarlett Foo, and we're joined by
Bloomber's Red Brown Red, what are you looking at here?

Speaker 1 (00:22):
Yeah, first one on my list is Lulue Lemon. It's
officially the worst performing stock in the SEB five hundred
index this year, so that's why we're talking about it.

Speaker 3 (00:30):
It's down fifty five.

Speaker 1 (00:31):
Percent this year, another fifteen percent today, So yeah, companies
really kind of going through it this year. They cut
their full year earnings and sales outlook for the year,
and then they're dealing with just a number of structural obstacles.
Tariffs are hitting this company especially hard. They called out
the end of the Dominimus exemption actually, which is on

(00:52):
orders below eight hundred dollars. We'll add another two hundred
and forty dollars hit to the company's bottom line this year.

Speaker 3 (00:58):
Having execution issues as well. I mean, I've got through countless.

Speaker 1 (01:00):
Earnings reports and I've rarely heard a CEO is used
strong of the language as they did in this one,
saying that he's disappointed with their execution. So some changes
really need to come for Lululemon for them to kind
of return. The imports are hitting them quite hard, so yeah,
but really strong reaction and analts are kind of turning
on the stock as well. Now there's been a slew
of downgrades this morning, so they're not really seeing a

(01:21):
catalyst for them to Product selection is.

Speaker 4 (01:23):
A problem too, because as we keep getting reminded, only
boomers were leggings. Everyone else is wearing wide legged pants
and that's not what Lululemon does.

Speaker 3 (01:30):
Yeah, I know that's an issue too.

Speaker 1 (01:31):
It's like they don't have this like new and fresh
selection for people to kind of get them back in stores.
So yeah, definitely big issue for them as well.

Speaker 3 (01:38):
Scarlett. I have two pairs and they make them really well.

Speaker 4 (01:41):
I paid a lot of money for it, and so
they haven't worn out, like they're great, they're in great shape.

Speaker 3 (01:44):
Okay, so maybe there's some optimism. So you're also looking
at the chip sector.

Speaker 1 (01:50):
Yes, Broadcom, So quite opposite of a situation for for
Lulu Lemon today is Broadcom tickers AVGO. They were up
as much as sixteen percent now trading around like ten
eleven percent at the moment. They had a really busy
news day last night. So first they had the earnings report,
where we're kind of the results were a little tepid,
but they gave quite a strong forecast as well, so
there is kind of a decent outlook for the demand earnings.

(02:13):
Called CEO is pretty bullish about twenty twenty six as well.
And then there was a big news that dropped that
they will be working with open Ai to help them
develop some chips to compete within VideA and so we
didn't get any financial details out of that, but obviously,
you know, kind of deepening their their relationship with open Ai,
the biggest AI company can't be a bad thing. And
kind of for what it's worth in video is trading

(02:34):
down a little bit this morning. So yeah, so some
some interesting things working out in the AI world at
the at the moment.

Speaker 3 (02:42):
Broad fifty two week high today. Aby g O is
a symbol. I have no idea why eight that's the symbol.
It used to be a vago, right is that right? Yeah? Okay,
and then hot Tan changed it to Broadcom.

Speaker 1 (02:54):
Gotcha, thank you very much.

Speaker 3 (02:55):
All right, very good.

Speaker 1 (02:55):
Anything else there, Yeah, I'm looking at some of the
home builders. So Lennard was trading up around four percent.
Dr Horton Pool Corp. As well, So all these companies
that are kind of exposed to the home market are
trading higher. After we got the jobs report, excuse me,
the payroll data this morning. So obviously the feeling that

(03:16):
that rate cuts are a matter of when, not if,
And yeah, you know, the sector has struggled this year.
Lenard has been kind of trading down for large parts
of the year, but it's really turned a corner in
the last month or so as this conversation on ray
cuts is really kind of gathered pace. So yeah, we'll see,
we'll see how that goes for the sector in the
next month.

Speaker 2 (03:35):
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