CNBC's "Fast Money" Podcast Summary – Episode Date: May 14, 2025

Hosted by Dominic Chu with a panel including Tim Seymour, Karen Feinerman, Steve Grasso, Julie Beal, and guest experts Christina Parsonables and Joe Feldman.

Market Overview

Dominic Chu kicks off the episode from Studio B at the NASDAQ Market Site in Times Square, highlighting a strong performance by the NASDAQ:

• NASDAQ: Gained 136 points, up nearly 7% since Monday.
• MAG7 Leaders: Tesla surged 26% over the past week, Nvidia increased by 16% and has now overtaken Apple in market capitalization, alongside Amazon and Alphabet.

However, Dominic points out rising treasury yields as a looming concern:

• 10-Year Treasury Yield: Climbed above 4.5%.
• 30-Year Long Bond: Approaching the 5% mark.
• Gold: Declined over 6% in the past five sessions, suggesting potential overheating in the market.

Notable Quote:

Dominic Chu (02:50): "While tech's been on its hair and the Mag 7 are back on the climb, rates are quietly backing up to the upside as well."

Interest Rates and Economic Outlook

Tim Seymour addresses the implications of rising yields:

• Gold Rally: "Gold is going to rally... I think you're buying gold anyway long term." (03:01)
• Economic Stability: Reassured by the absence of a recession despite rising yields.
• 10-Year Yield: "I’m less concerned about the 10 year where it is." (03:23)
• Long-Term Perspective: Prefers stable rates at current levels over a hypothetical 3.5% in a weaker economy.

Karen Feinerman discusses diminishing fears of stagflation:

• Stagflation Concerns: "I have some QQQ put spreads that I put on a couple of days ago. Lost money in that already." (04:26)
• Market Sentiment: Acknowledges the extraordinary market bounce but expresses caution about potential toping.

Julie Beal adds context on market volatility:

• VIX Indicator: Highlights the significant drop in volatility index, from the low 50s to around 18.
• Investment Strategy: Emphasizes long-term investment despite short-term volatility.

Andy Constant from Damp Spring Advisors introduces the "Dr. Jekyll and Mr. Hyde" dynamic in market policies:

• Stock vs. Bond Performance: "When stocks are outperforming bonds, it aligns with Dr. Jekyll's pro-growth policies." (09:42)
• Policy Impact: Differentiates between growth-oriented policies and deficit-reduction measures affecting stock and bond markets.

Notable Quote:

Andy Constant (09:42): "Dr. Jekyll measured his success with growth in the economy and rising stock prices."

Corporate Updates and Deals

Boeing's Major Deal with Qatar Airways

Phil LeBeau reports on Boeing's landmark deal:

• Order Details: Qatar Airways commits to purchasing 210 planes, including 130 Dreamliners and 77 777X models, with options for an additional 50 planes.
• Production Plans: Incremental production increases for the 787 at Charleston, SC, from 5 to higher monthly outputs.
• Economic Impact: The deal is valued at approximately $96 billion, signaling confidence in Boeing's manufacturing capabilities and market demand.

Steve Grasso and Tim Seymour discuss the potential and risks:

• Regulatory Scrutiny: Concerns over continued FAA restrictions and certification delays for new models.
• Market Position: Optimistic about Boeing's ability to generate free cash flow and capitalize on the aviation sector's recovery.

Notable Quote:

Phil LeBeau (15:55): "This is the largest widebody order that Boeing has ever received."

Mergers & Acquisitions: Dick's Sporting Goods and Foot Locker

Kate Rooney breaks down the potential merger:

• Deal Structure: Dick's Sporting Goods may acquire Foot Locker for $2.3 billion at $24/share, reflecting a 90% premium.
• Market Reaction: Foot Locker shares surged 67% post-announcement, while Dick's declined by 5%.
• Strategic Rationale: Enhanced bargaining power with suppliers like Nike, leveraging Foot Locker's international presence.

Karen Feinerman and Julie Beal weigh in on the deal:

• Foot Locker’s Turnaround: "This is a lifeline for them... they've not been able to turn it around." (23:03)
• Dick's Strategic Growth: "This gives Dick's that type of scale... efficiencies that come through this deal." (25:35)

Joe Feldman from Telsey Advisory Group shares concerns:

• Operational Complexity: Integrating Foot Locker's global operations poses significant challenges for Dick's.
• Market Position: While beneficial for Foot Locker, the acquisition could stretch Dick's resources.

Notable Quote:

Joe Feldman (34:07): "Foot Locker is a pretty complex organization... a lot of work for Dick's Sporting to digest this."

Earnings Reports: Cisco and Coreweave

Kate Rooney summarizes Cisco’s performance:

• Earnings Beat: Revenue and earnings exceeded expectations with $6.6 billion in orders and improved margins.
• Leadership Changes: CFO Scott Heron retiring, succeeded by Chief Strategy Officer Mark Patterson in 2026.
• Strategic Positioning: Favorable tariffs on U.S.-imported goods from Mexico boosted margins.

Coreweave presents a mixed outlook:

• Revenue Surge: Over 400% year-over-year growth in Q1.
• Challenges: Reported a GAAP loss of $49/share despite strong revenue, raising concerns about debt management.
• Future Guidance: Projected Q2 revenues between $1.06 to $1.1 billion with ongoing infrastructure expansion.

Christina Parsonables provides analysis:

• Cisco’s Resilience: "Good momentum and business spending holds up, which is a positive sign for the economy." (30:55)
• Coreweave's Potential: Emphasizes the importance of meeting guidance and diversifying investments despite initial losses.

Notable Quote:

Julie Beal (30:47): "There’s no change in customer behavior and if anything demand still remains strong."

Retail Sector Insights: Walmart Earnings Preview

Joe Feldman anticipates Walmart's earnings:

• Sales Growth Expectation: Projected 3-4% sales increase, driven by strong grocery and consumables performance.
• Earnings Concerns: Potential margin pressures from increased expenses like property claims.
• Consumer Behavior: Resilient middle to upper-income consumers balancing stretched budgets.

Tim Seymour offers a contrasting view:

• Valuation Concerns: Historically trades at 28x P/E, now around 40x, suggesting it may be overvalued.
• Revenue Composition: "60% of their revenues come from groceries... if at peak inflation, revenues might decline."

Julie Beal adds to the discussion:

• Inflation Impact: Believes inflation has peaked, but notes stagnant wholesale egg prices affecting grocery revenues.

Notable Quote:

Joe Feldman (35:24): "Wal-Mart's likely to talk about a consumer that is still stretched but somewhat resilient, especially that middle to upper income consumer."

IPO Spotlight: Coreweave and eToro

Coreweave faced a rocky IPO debut:

• Performance: Initially rose but closed negatively despite over 400% revenue growth year-over-year.
• Investor Concerns: Significant GAAP losses raised questions about long-term sustainability.

eToro's Successful Debut:

• Stock Performance: Closed the first day of trading up nearly 30%, significantly higher than the IPO price of $52, closing at $67.
• Market Impact: Indications that a successful IPO could rejuvenate the broader IPO pipeline.

Christina Parsonables comments:

• Market Sentiment: Encouraged by Cisco and Coreweave's performance, highlighting strong business investment despite economic uncertainties.

Notable Quote:

Dominic Chu (28:10): "Shares of Etoro surging in their NASDAQ debut... could unlock the entire IPO pipeline."

Investor Sentiment and Strategies

Investopedia's Caleb Silver shares insights from the latest investor sentiment survey:

• Cautious Optimism: 55% of retail investors are cautiously optimistic, while 18% remain worried.
• Investment Preferences:
  • Top Buys: MAG7, Berkshire Hathaway, banks, and newly featured Ford.
  • Popular Stocks: Tesla, Nvidia, Palantir, AMD, Amazon, Apple, Robinhood, American Airlines.
  • Safe Investments: Money markets, CDs, high-yield savings accounts, and index funds rank higher when investors have discretionary funds.

Steve Grasso emphasizes cautious investing despite market volatility:

• Buying Strategy: "Buying the dips, buying some of their favorite stocks on discount." (42:46)
• Risk Management: Majority prefer safer investment avenues over high-risk individual stocks amid uncertainty.

Notable Quote:

Steve Grasso (42:46): "They’re happy with the recovery. They’re just not convinced that it's going to continue."

Final Trades and Closing Remarks

Final Trades Round-Up:

• Christina Parsonables: Prefers Teledyne for its defensive portfolio.
• Tim Seymour: Highlights positive performance from Cisco and AI-related stocks.
• Karen Feinerman: Advises caution despite strong tech runs, suggesting options strategies.
• Julie Beal: Recommends staying long on Dick's Sporting Goods amidst its potential acquisition of Foot Locker.
• Closing Remarks: Dominic Chu concludes with acknowledgments and a teaser for the next episode's focus on tariffs, inflation, and Walmart earnings.

Notable Quote:

Julie Beal (44:45): "If you're not in it, I would dabble. I would probably try to see if there's some upside here."

Key Takeaways

1. Tech Sector Dominance: The MAG7 continues to lead market gains, buoyed by strong earnings and optimistic projections, although rising treasury yields pose a potential risk.

2. Rising Interest Rates: Increasing yields on 10-year and 30-year treasuries are monitored closely, with experts debating their long-term impact on both bond and stock markets.

3. Major Corporate Deals: Boeing's significant order from Qatar Airways and the potential merger between Dick's Sporting Goods and Foot Locker highlight strategic growth and consolidation in their respective sectors.

4. Earnings Performance: Cisco shows resilience with strong earnings and order books, while Coreweave demonstrates impressive revenue growth despite initial losses.

5. Retail Sector Dynamics: Walmart's upcoming earnings report is anticipated to provide critical insights into consumer behavior and the broader retail climate amidst inflationary pressures.

6. Investor Sentiment: Retail investors remain cautiously optimistic, favoring a diversified investment approach with a mix of high-growth tech stocks and safer investment vehicles.

7. IPO Landscape: Successful debuts like eToro's could signal a revival in the IPO market, encouraging more companies to go public.

For additional insights and real-time updates, visit Fast Money on CNBC.