Closing Bell: FICO Rallies, Tesla Slides, Occidental Falls - podcast episode cover

Closing Bell: FICO Rallies, Tesla Slides, Occidental Falls

Oct 02, 20256 min
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Episode description

On this episode of Stock Movers: 

Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Katie Greifeld, Carol Massar and Tim Stenovec.

- Fair Isaac (FICO), better known as FICO, will now sell credit scores directly to mortgage resellers, a move that sent shares of third-party credit bureaus plunging. Through a new program, mortgage resellers will be able to calculate and distribute credit scores directly to customers, reducing their reliance on credit bureaus. This will bring more price transparency and savings for mortgage lenders, mortgage brokers and other industry participants, FICO said in a statement. Shares of FICO rallied. 

- Tesla (TSLA) shares fell after the automaker posted a record quarter of vehicle sales that will be difficult to replicate now that federal electric-car subsidies have expired. The company delivered 497,099 vehicles worldwide in the most recent quarter, 7.4% more than a year ago. Although the total far exceeds the roughly 439,600 average analyst estimate compiled by Bloomberg, Tesla’s shares slumped Thursday following a record monthly gain in market capitalization.

- Occidental (OXY) is done with monster dealmaking after reaching its asset-sales target with the $9.7 billion chemical-unit sale to Berkshire Hathaway Inc. Following the Texas oil driller’s transformational purchase of CrownRock LP for $10.8 billion in August 2024, Hollub targeted as much as $6 billion in asset sales to whittle away debt. As of early August, the company already was roughly two-thirds of the way to that goal. Shares declined. 

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Transcript

Speaker 1

Bloomberg Audio Studios, podcasts, radio news.

Speaker 2

This is the closing bell on the stock movers report the company's making moves at the close of US trading with Carol Masser, Tim Stenovak, Romain Bostik, and Scarlet Food.

Speaker 3

All right, let's get to some of the individual gainers, and I gotta say it's not names that I necessarily talk about a lot. Fair Isaac, all right, just before you judge, listen up, Fair Isaac. You know the ticker Fiico Fiico, That one up as much as thirty two percent in today's session, finishing with a gain of just shy of eighteen percent, This surging number one gainer in the S and P five hundred after saying it will

now sell credit scores directly to mortgage resellers. So it's a move that's sent shares a third party credit bureaus Equifax and TransUnion plunging. So some changes there in that dynamic and selling of credit scores. Here's another one. We don't talk about a lot, guys, but it caught my attention. It has to do with Microsoft's deal with the neo cloud company Nebuus Group ENV. It's going to provide computing power to internal teams, creating large language models, and a

consumer AI assistant. According to folks familiar. So the arrangement, which is worth about nineteen point four billion dollars, sparked a rally and Nebuus shares again take our NBIS. We don't talk about a lot, up just about nine percent in today's session. This deal apparently outlined in early September, but the announcement there wasn't a lot of the specifics on it. When it was announced, though, the shares in the US the ADRs jumped about fifty percent on September ninth.

Speaker 1

So yeah, yeah, I know, I'm and to the story. I mean a good, good one, Carol.

Speaker 3

Those drs are up three hundred and thirty five percent.

Speaker 1

Well, it gets to this idea, sort of of the idea of what options these companies have. And we had the Core Week CEO on last week, and there was this whole idea that they were kind of, to a certain extent, the only game in town. Obviously, we know there are other companies, including Nebbus and a couple others, but not a whole lot to go around, particularly when you take into account just how much capacity a company like Microsoft or meta or alphabet needs right.

Speaker 3

So they're searching right. Hence these neocloud companies certainly stepping up. Hey one more two. I think I mentioned it yesterday. Ast Space Mobile. This one has been on a tear rallying in the last couple of days, up another sixteen percent today after gaining sixteen percent.

Speaker 1

Did you guys interview the CEO earlier the president?

Speaker 3

Actually, it's really kind of fascinating. This is you know, you think about satellites up in the air, and you think about Elon Musk, and you think about SpaceX, but there are other players, including Amazon and AST Space Mobile, and this is a company that has been kicking up satellites into the air kind of low orbit. But it's also all about really reaching kind of the cellular space. And this one has just been on a tear.

Speaker 4

Yeah, they're partnering with AT and T and Verizon or a SpaceX is Starlink has partnered with T Mobile. And he was telling us that the signal can actually get through one wall if you're in a building somewhere, it can get through one wall. So it's it's not going to get in like a cell phone can, but better than you know, if you have a garment or something in your inside, it doesn't necessarily work, so sort of better technology.

Speaker 3

This is another operformer this year. It's up about two hundred percent year to date. Right now, though twenty percent of the float is short.

Speaker 4

Well, let's talk about some decliners. I want to talk about the biggest decliner on a points basis in the S and P five hundred, that would be Tesla, down five point one percent. Interestingly enough, shares we're up as much as two point five percent earlier in the session, then turned to lower. The company did report a surprise record quarter of vehicle sales this as US consumers accelerated

EV purchases before those federal tax credits expired. Still, though, analysts are concerned about what things look like moving forward. Garrett Nelson over at CFRA said, looking forward, we still think there are major questions regarding the earnings impact of legislative changes on the tradeable emissions credit market and EV demand and an unsubsidized US market. Shares down five point one percent today. The second worst performer on a percentage basis in the S and P five hundred that goes

to Occidental Petroleum shares more than seven percent today. After the company agreed to sell its Oxycam petrochemical unit to Berkshire Hathaway for about nine point seven billion dollars in cash. Analysts did note that the sales below the ten billion dollars that they had been expecting. Also, Vicki hull Up, the company's CEO, came out and said that the focus is now on organic growth. After using about six and a half billion dollar of the proceeds from the sale

to reduce principal debt at the company once again. Oxy shares down seven point three percent, and finally Equifax off of what Carol was saying. Equifax down eight and a half percent. It is the worst performer in the S and P five hundred Today, shares of credit reporting companies, including Aquafax plunged after fair ISAAC announced this new program that gives mortgage lenders the option to calculate and distribute

fycoscores directly to customers. It's a major shift in how fycoscores are delivered in the mortgage industry.

Speaker 1

Well, let's take a quick look at yield a mixed day here. You did see the longer end of the curve. Continue to see yields move lower for the third day a day of this week. Meanwhile, on the shorter end you' it'd see a slight upticking yields. But we should just point out one of the fallouts of the government shutdown is because of that lack of data, volume in the

treasury market is incredibly light. Of course, remember volume typically spikes around some of those big government data releases, and of course not getting the weekly jobless claims today and of course not getting the monthly jobless unemployment numbers tomorrow here, So just take some of the price action with a bit of grain of assault.

Speaker 2

This stock movers 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 moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.

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