Target's Weak Outlook; Lowe's Pops; UNH Nursing Home Report

On this episode of Stock Movers:
- Target (TGT) shares are lower this morning after the company cut its sales forecast due to a weaker-than-expected quarter, with comparable sales dropping 3.8% and net sales expected to decline by a low single digit this year. he company is taking steps to drive traffic back into its stores and website, including management reshuffles, a new "multiyear acceleration office", and a focus on offering new items and key products at a good value.
- Lowe's (LOW) moved upwards this morning after comparable sales beat expectations in the latest quarter, despite a 1.7% dip, and the company expects the key sales metric to be flat to up 1% this year. The results suggest that US consumers have maintained home spending despite economic turbulence, with many deferring big projects due to high interest rates but pursuing smaller ones.
- Home Depot (HD) is following Lowe's higher as earnings from the rival DIY retailer drive the sector higher. President Trump's tariffs are expected to create challenges for the sector, with prices of goods expected to rise, and the home category is especially vulnerable to tariffs due to overseas sourcing and discretionary demand.
- UnitedHealth Group (UNH) is on the downswing today amid another bad press report. The Guardian reported that the health insurer secretly paid nursing homes to reduce hospital transfers for ailing residents.

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Episode Transcript

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

Speaker 2 (00:08):
The Stock Mover's Report, your roundup of companies making moves
in the stock market. Harnessing the power of Bloomberg data.

Speaker 3 (00:17):
Let's take a look at some stocks on the move today.
I'm Nathan Hager, joined by Bloomberg's Criti Gupta. On a
morning where a couple of really important retail names have
reported earnings, could kind of say it's a tale of
two retail sides. Kritty, Let's start with what we're seeing
from Target.

Speaker 1 (00:32):
Good morning, Good morning, Nathan, Yeah, Tarja is a pros
call it. TGT is your ticker this morning. Shots are
down about one point six percent, treating it about ninety
seven dollars a share, we'll call it there. Looks as
the coming out with earnings, they're cutting their sales forecast,
so their quarter did not live up to those expectations.
On top of that, there's things some of the retailer

(00:53):
sales aren't coming through, and specifically the company taking new
measures to target some of that weakness and discretionary spending.
And by the way, the consumer confidence and the tariff uncertainty,
all that baked into kind of a somber message from
target this morning. They're now expecting that sales to decline
by a low single digit this year. That is compared

(01:14):
to previous guidance that was an increase of about one percent.
So again, not only did they miss expectations, they're not
exactly guiding in a positive lighter or giving any reassurance
to the market that things are going to be better.
So TGT is your ticker down about one point seven
percent this morning. But Nathans promised, I'll me give you
a little bit of positivity in the retail space as well,

(01:35):
because Lows is having a great DAYLW is your ticker
two hundred and thirty seven dollars a share and change
trading at the high bride about three percent, I should
say so again positivity for the hardware company, hardware store,
hardware company both, I guess call it home improvement. Thank
you very much helping me out where I need it.

(01:56):
They're sales beating expectations and they're saying, look, there is
that terear volatility. It's very much feeding into the consumer sentiment.
But they are still seeing comp sales come in better
than expected. People still spending despite that turbulence, which, by
the way, Nathan, is a completely different message from what
we heard from their peer Home Depot earlier this week.
So that's really telling that Lows, which is considered a

(02:18):
pricier alternative to Home Depot, actually had a different messaging
story as well. That being said, when Low's moves higher,
so does Home Depot. So HD is your ticker there
hired by about three tens of one percent this morning,
trading at three hundred and seventy eight dollars a share,
So the Low's numbers helping that company. They also got
an upgrade over at Stiefel. They're saying they're expecting the
sales over at home Depot to accelerate, moving the price

(02:40):
target up to four hundred and twenty five dollars a
share from previously four to oh five. Home Depot trading
we're closing, I to say, yesterday at three seventy seven.
So good news in the home improvement space. But Nathan,
I gotta do it. I gotta talk to you about
the downside. Movers Nided Health the major Dow component taking
a beating this morning. U NH is your ticker down
about six point twenty three percent, training at three hundred

(03:02):
and one dollars a share. Looks like a report is
behind this. The Guardian reporting of the health insurer is
secretly paid nursing homes to reduce hospital transfers for ailing residents.
As we know, United Health is a tricky one and
has been dealing with quite a lot of brad press lately.
This is certainly not helping their number. So you NH,
it's your biggest volume mover to the downside. Right next

(03:24):
to Palo Alto Networks PANW is your ticker there their results,
their forecast falling below expectations. Is one of the major
cybersecurity companies that we keep an eye on in more
time and defense time. Those shares down about three point
seven percent PA and W trading out for one hundred
and eighty seven bucks a share.

Speaker 2 (03:44):
This stock mover's report from Bloomberg Radio. Check back with
us throughout the day for the latest roundup of companies
making news on Wall Street and for the latest market
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