Pfizer Rises, Best Buy Surges, Nike Up After US China Trade Talks

On this episode of Stock Movers:
-Pfizer shares rise after President Donald Trump said he plans to order cuts to prescription drug costs to bring them in line with other countries.White House officials speaking this morning did say weight loss drugs and medicare will be an area of focus for action.
-Best Buy shares rise after being a key beneficiary of weekend US-China talks Bloomberg Intelligence analysts estimates that retailers entered the year holding 1% less inventory than they had over the past three years, so the drop off in Chinese shipments would have had significant impact.
-Nike shares rise. The company is another key beneficiary of the US-China talks -- half of all Nike brand shoes are made in Vietnam, but overall trade optimism is helping.Last week, the company announced changes to its senior leadership team and divided its Consumer, Product, and Brand leadership will now be divided into three distinct areas.

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Episode Transcript

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

Speaker 2 (00:08):
Stock Movers podcast, your roundup of companies making moves in
the stock market, harnessing the power of Bloomberg Data. Let's
take some stocks on the move today. I'm Paul Swiney
with Alex Steele, and we're joined by Bloomberg's Christina Keen
or Christine, what are you looking at it?

Speaker 1 (00:24):
Well, Paul, we're going to have to take a look
at those drug makers, aren't we, because of that executive
order that President Donald Trump said he's going to be signing,
taking a look at fiders specifically. That's actually up more
than two percent at the moment. Pre market losses there
a little bit, but definitely reversing those. I think this
is because we did get a little bit of a
steer on what President Trump is going to be doing

(00:46):
on this. He posted on his social media account earlier
that there will be cuts of quote fifty nine percent
plus in terms of prices. But investors also digesting some
of the details. Looks like the focus is going to
be primarily on care and weight loss drugs, so perhaps
less broad than some investors were anticipating, and so we're
seeing a bit of a gain on Pfizer shares and

(01:07):
other related stocks.

Speaker 2 (01:09):
Well also just you know, you know, it's an opening salvo.
So if that's the opening it's not as bad as expected, then.

Speaker 1 (01:14):
Maybe that winds up helping just the theme.

Speaker 2 (01:16):
You're also looking at best Buy.

Speaker 1 (01:18):
Yes, that's going on here best Buy. Well, you know
that is one of the key beneficiaries of those successful
weekend talks between US and China, or at least signs
of improved relations between the two countries. Best Buy, of course,
you know, one of the retailers in the US are
primarily exposed to those imports from China potentially dropping off

(01:38):
it or becoming more costly moilving intelligence analysts saying that,
you know, because retailers were entering the year holding less
than one percent or one percent less of inventory than
they had over the past three years. Best Buy among
the retailers, would really have been exposed if we did
get an effective trade embargo between the US and China.
But looks like that's going to be less the case now,

(02:00):
more quarter relations at least between the two countries. We'll
see if we can get a deal that has details
that offer the same sort of reassurance to investors. All right,
what else we got here? Looking at Nike as well, Paul,
that is up at the moment more than six percent. Again,
another beneficiary it was US China talks. Note that half

(02:23):
of Nike's shoes are made in Vietnam. But the overall
trade optimism is helping because of course, you know, we
were also off the back of the US striking a
deal with the UK, and you know, Nike definitely struggling
in other aspects as well. We have seen last week
the company announcing changes to its senior leadership team, and

(02:43):
last April, Nike was also all the companies that called
on President Trump to exempt footwear from tariff. So the
fact that there seems to be more trade optimism definitely
good news for a Nike.

Speaker 2 (02:53):
For today the Stock Movers podcast from Bloomberg Radio. Check
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