United Airlines Falls, T-Mobile Drops, Capital One Down - podcast episode cover

United Airlines Falls, T-Mobile Drops, Capital One Down

Apr 21, 20264 min
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Episode description

Today's biggest winners and losers in the stock market.

On this episode of Stock Movers: 

- United Airlines (UAL) slashed its full-year profit forecast as higher fuel prices caused by war in the Middle East batter global carriers. The Chicago-based airline now expects full-year adjusted earnings of $7 to $11 a share. It previously expected its full-year earnings per share for 2026 to be in a range of $12 to $14. Shares in United declined 1.8% to $97.13 by the end of regular trading on Tuesday.

- T-Mobile (TMUS) saw its shares slide on news that Deutsche Telekom AG is considering a full combination with it, a move that would create a multinational telecom group and rank as the largest-ever public M&A deal, people with knowledge of the matter said. Deutsche Telekom is already T-Mobile’s biggest shareholder with a roughly 53% stake. The German carrier has been discussing the idea of creating a new holding company that would make a stock bid for shares of both Deutsche Telekom and T-Mobile, the people said, asking not to be identified because the information is private. 

- Capital One (COF) the biggest US credit-card lender, reported a first-quarter profit that missed Wall Street estimates and set aside more cash to cover soured loans. Shares of Capital One fell 3.5% to $195.47 in extended trading at 4:27 p.m. in New York. The stock had tumbled 16% this year through the close of regular trading, the worst performance in the 24-company KBW Bank Index.

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Transcript

Speaker 1

Bloomberg Audio Studios, Podcasts, radio news.

Speaker 2

The Stock Movers report your roundup of companies making moves in the stock market, harnessing the power of Bloomberg Data.

Speaker 1

I'm Carol Masser along with Tim Stanwick. Let's get you some stocks on the move. Back with us is Daniza Sikova. She's Bloomberg News Cross Asset reporter here in studio. A lot to choose from. We also had you know, stocks after the close here moving.

Speaker 3

We have a lot of big moves. Let's start with do United Airlines, which reported after the close, initially saw a big drop in the stock. Now I'm looking at the stock price. The stock is actually up in after out in after ours trading, small jump. The initial disappointment came because the carrier slash it's full year profit forecast. Of course, everyone has been talking about higher fear prices.

We so already Delta US deciding not to update their full year outlook, and even worse, Alaska Airlines put guidance for twenty twenty six all together. So there was already a lot of pressure for airlines going into this. That says the airline expects full year just at earnings of seven to eleven dollars of shares. The previous expectations for four year's earnings was about twelve to fourteen are so we're seeing some of those expectations.

Speaker 2

That's it.

Speaker 3

We see high end customers are doing well. The spending there continues to be strong. They said they will raise prices, obviously with higher fuel prices. Some of this will be some of the offset will be with actually higher ticket prices, and of course we've seen a lot of the airlines boost prices for bags we're checking in, so that's kind of been a proper popular policy. We're seeing more and more of luck, Carol, Yeah, all.

Speaker 1

Right, whatever, let's talk about Team Mobile just quickly.

Speaker 3

Yeah, we're seeing a potential combination with tim Obile and Deutsche Telecom. It's in very early stages. We're not sure what the final reserve will be. Of course, we have two governments. We have the German government in the US government that may post potential complications from here. Deutsche Telecom is already Tiamobaw's biggest shareholder. It has more than fifty percent steak. Tim Obow has been under a lot of

pressure this year. It has fallen about twenty percent, while doutsche Telecom is down about ten percent over that period, so very interesting combination. It was Bloomberg's original scoop. So we're looking to see if those preliminary talks we're result in actual communation. It will be a massive, absolutely must've be probably the largest ever eminent public deal we're seeing.

Speaker 1

All right, and I'm just gonna mention real quickly. Capital One cof is the ticker. It's down about three point three percent in the after hours. It did come out with result and the company boosting provision for bad loans, and it did miss estimates. It is the biggest US credit card lender, so again reporting a first quarter profit that missed Wall Street estimates and set aside more cash to cover soured loans. Sow, What an hour?

Speaker 3

What an after?

Speaker 1

In Yeah, Deniza, thank you so much. As always, Daniza Sokova with Stockmovers. Check it out, folks, find it on Apple, Spotify, or anywhere you get your podcast.

Speaker 2

The Stockmovers 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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