Nike Rises, GE Verona Falls, ASML Gains After Samsung Contract

On this episode of Stock Movers:
- Nike (NKE) shares rise after JPMorgan upgrades to overweight from neutral, citing the earnings impact of the sportswear maker’s five-pronged multi-year recovery plan.
- GE Vernov (GEEV) falls after it received a pair of downgrades, with analysts cutting their views on the electric-power company in the wake of results that led to sharp gains in the stock.
- ASML (ASML) shares gain after its key customer, Samsung, wins a contract to make AI chips for Tesla. Meanwhile, a US-EU trade agreement that exempts tariffs on semiconductor equipment gives an additional boost to the sector after its two-week long slide.

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Episode Transcript

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

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

Speaker 3 (00:17):
Let's get a look at some of the stocks on
the move today. I'm all swinging alongside John Tucker and
we're joined by Bloomberg's Isabellelee. Isabel what are you looking at?

Speaker 1 (00:23):
We're looking at Nike shares are hired by almost four percent,
and that comes after JP Morgan upgraded the stock to overweight.
So they cited the earnings impact of Nike's five pronged
multi year recovery plan. So the analyst Matthew Boss notes
that the recovery plan will equate to positive EPs growth
in the high teens to twenty percent through twenty thirty.

(00:43):
So this includes the global inventory alignment to sales growth
and accelerating momentum. The price target is that to ninety
three dollars from sixty four dollars. That's implying a twenty
two percent increase from Friday's close.

Speaker 2 (00:55):
One of the companies spun out of gege Verona.

Speaker 3 (00:59):
What do they do? So?

Speaker 1 (01:01):
G Verona is the name of the energy business. It
was spun off from GE. And you know the spin
off of g Verona Vernova was finalized in April two
last year.

Speaker 3 (01:12):
All right, so what's going on with these guys today?

Speaker 1 (01:13):
So now we're looking at just GE. So Bank of
America raised a price target on GE to three hundred
and ten from two hundred and thirty. They maintain a
buy rating. Stock is kind of down by five tens
of one percent. So in July seventeen, we know that
GE reported its earnings. Then they boosted a full year
financial guidance and top estimates. And that comes after a
rebound in the aviation market, which was of course often

(01:34):
by the impact of the global trade war. And the
company is just really benefiting from a surge and orders
that has slowed earlier this year. So for now stock
is edging lower, but maybe we'll see it oscillate throughout
the day.

Speaker 3 (01:44):
So this is GE Yesova, which is the electric power company.
GeV is the ticker. Okay, yeah, okay, all right, very
very good. Let's do one more. Let's do ASML.

Speaker 1 (01:58):
So this one is also on on the rise, up
by almost three percent. And other European semiconductor stocks actually,
but for now we'll focus on ASML, so stock is
rising after their key customer, Samsung, wins a contract to
make AI chips for Tesla. So Samsung will make the
chips in a sixteen and a half billion dollar deal.
So this is a crucial win because the foundery division

(02:18):
has been underperforming. And note that the lack of demand
from two key clients Samson and Intel has contributed to
the drag in ASML's underperformance year over year the past year.
So this is again a win. And of course we
also have a USU trade agreement that exempts tire uf
on semiconductor equipment. This again is adding to the boost.
So ASML stock is up now by two point seven percent.

Speaker 2 (02:41):
The Stock Movers report from Bloomberg Radio. Check back with
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