By coinnews 
00:00:03 Speaker A
Now time for some of today’s trending tickers. We are watching Tesla, HP, and Foot Locker. First up, Tesla, Elon Musk gearing up to leave Doge and return to his businesses. Musk signaled on Wednesday that his time leading Doge was at an end. In a post on X, the social platform he owns, the world’s richest person thanked President Donald Trump for the opportunity to reduce quote wasteful spending, adding that Doge’s mission will only strengthen over time. Shares of Tesla are pushing higher here today by about two and a half percent. Uh, a lot of people will know that as a special government employee, he is only allowed to actually work a federal job for 130 days each year, which essentially would come to an end this week.
00:00:57 Speaker B
I thought it was really interesting to see sort of the capitulation from Elon Musk after the market reacted as they did. And this is why I personally love what we get to do every day with monitoring markets cuz it has a huge impact. It can impact who is, you know, feeding information to the president of the United States. So it’s interesting to see that the reaction in Tesla perhaps was something that was on his mind when he did pull back from his role in the government.
00:01:29 Speaker A
It better be on his mind. The shares were sinking. They were losing any type of sentiment that ultimately was annexed to how successful or unsuccessful the White House was at communicating their strategy, which controversial at best. And Elon Musk putting his mug next to that, essentially also impacts all of the businesses that you run as well, for better or for worse, as he was trying to get government contracts with some of those businesses. And then for Tesla, which is far more consumer facing, you rely on still having the favorability of purchases. Oh yeah, at a time where in the consumer confidence readings, there were more pushbacks, at least in that interim period of time, of people putting off some of those big ticket purchases, including an electric vehicle.
00:02:46 Speaker B
And you saw that in the global sales data as well. Absolutely. All right, next up, let’s talk about HP sinking this morning. The company’s profit outlook fell short of estimates, and it cut the annual earnings forecast as well, pointing toward a weaker economy and continuing costs from US tariffs on goods from China. What’s fascinating about a name like this is that this morning we have the news of that ruling from a US court calling on the president’s tariffs to be repealed, and potentially as Alexis Keen was telling us that some countries would even have to get paid back for the tariffs that they have already been charged. Having said that, for HP, the problem is that profit outlook getting cut, whether or not the tariffs stay, that is something that is clearly negatively impacting stock price down over 11%.
00:03:59 Speaker A
Yeah, spot on. Uh, second quarter net revenue, it was actually up 3.3% from the prior year period here. Uh, and then additionally thinking through what the company was saying, and they had to acknowledge around some of the increased macroeconomic uncertainty. They’ve adjusted their outlook to reflect moderated demand and the net impact of trade related costs to your point, and they’re executing targeted mitigation strategies as well, assuming current conditions remain. They expect to fully offset those costs by the fourth quarter of their fiscal year. Shares though, down by about 11, 12%. Finally here, let’s go where the feet go. Foot Locker, the company out with earnings and missing sales estimates. The miss comes as the parent company prepares to be acquired by retail giant Dick’s Sporting Goods for $2.4 billion. Shares of Foot Locker flat, just barely to the upside. Uh, one of the things that is always interesting for me to track is where they are on their store footprint. And one of the things that I was circling within my own notes here is that they actually just continue to close more stores than they are opening. They’re also going through this process of remodeling and bringing more stores essentially up to snuff with their own expectations. Uh, and so the exact numbers on that. Oh, and the regions that impacts as well. Company opened nine new stores, closed 56 stores including stores operating in South Korea, Denmark, Norway, Sweden, Greece, Romania. You will get less of those exclusive drops. And then additionally here, remodeled or relocated 11 stores, refreshed 69 stores here. Uh, and it’ll be interesting to see where they have more weight to potentially throw around once the deal is consummated with Dick’s Sporting Goods, uh, with major brands like Nike, like Adidas, to make sure that they get priority selection in some of that inventory going to retail partners.
00:06:16 Speaker B
I think one of the things that’s really interesting here too from an economy perspective is something that Sujarita Kodali had called out to both of us last week. The idea that you see evidence within this print of wholesalers getting access to more inventory, a little bit of that pull forward dynamic happening here as they anticipated these tariffs, which again, as we have headlines coming in today, unclear what those tariffs are going to look like more long term, but we still have that impacting a print like this where you do have a little bit of that pull forward dynamic going on. And then the questions about what that’s going to look like for their sales going forward if they’ve already missed on estimates this quarter.
00:07:03 Speaker A
I was part of the numbers in this quarter. I’ll admit it. Uh, I saw some flu game Jordans at Foot Locker in Harold Square. I said, you know what? Take the money.
00:07:16 Speaker B
He’s a consumer too, you know. We’re all people. All right, well, you can scan the QR code below to track the best and worst performing stocks with Yahoo Finance’s Trending Tickers page.