CNBC's "Fast Money" Podcast Summary Episode: International Investing Vs. U.S… And NIH Funding Cuts Impact On Drug Development (Released March 17, 2025)

Introduction Hosted by Melissa Lee alongside a panel of top traders—Tim Seymour, Karen Feinerman, Dan Nathan, and Guy Adami—CNBC's "Fast Money" dives deep into the pressing financial topics of the day. In this episode, the discussion revolves around the contrasting performances of international markets versus the U.S., the potential ramifications of NIH funding cuts on drug development, and significant movements in sectors like AI, EVs, and streaming services.

1. International Markets Outperforming U.S. Stocks Timestamp: 00:00 - 05:53

The episode kicks off with an analysis of the stark divergence between U.S. and international markets. While major U.S. indices like the Dow, S&P 500, and NASDAQ showed gains, emerging markets, represented by the EEM ETF, surged by over 8%, significantly outperforming the U.S. S&P 500, which saw a decline of 3.5% for the year.

Tim Seymour emphasizes the long-term nature of this trend:

“It’s probably not a two-week trade… the valuations offer you a really attractive upside.” (02:37)

Factors contributing to this outperformance include a weakening dollar, fiscal policies in Europe, deregulation, and potential positive developments like a Ukraine deal that could lower energy costs in Europe.

Dan Nathan adds a cautious perspective on whether the tech trade will maintain its momentum:

“It’s probably just little WG and dxj… but I feel like, God, this has been such a big move. Maybe a little pullback.” (04:24)

Karen Feinerman highlights the impact of a weaker dollar and ongoing fiscal strategies:

“They want lower rates and a weaker dollar… that’s something they all probably want because when you have a $37 trillion debt problem, you want that currency to be weaker.” (05:53)

2. Nvidia’s AI Conference and Market Sentiment Timestamp: 05:53 - 07:00

The panel shifts focus to Nvidia's upcoming AI conference (GTC keynote), discussing investor expectations surrounding new AI technologies like the Blackwell GPU and Rubin chip. Guy Adami suggests a cautious approach:

“If there’s nothing new for them to talk about… the US might test recent lows and present buying opportunities.” (05:08)

Melissa Lee prompts further discussion on China's AI advancements, specifically referencing Baidu and Alibaba as potential game-changers in the tech sector.

3. NIH Funding Cuts and Their Impact on Drug Development Timestamp: 32:31 - 39:06

A significant portion of the episode is dedicated to the implications of potential NIH funding cuts on drug development. Jon Flavin, CEO of Portal Innovations, underscores the critical role of NIH funding in fostering innovation:

“For every $1 that the NIH has put into the research platform and initiative, $3 are seen in economic impact.” (37:50)

Flavin warns that reduced funding could hinder advancements in crucial areas like cancer, Alzheimer's, and HIV research, leading to a potential brain drain as innovation migrates to more supportive environments globally.

Rebecca Patterson further elaborates on the broader economic and strategic consequences:

“If you can’t sell that vision [of sustaining innovation], then you're going to cause a lot of disruption in this space.” (12:47)

The discussion highlights the delicate balance between necessary budget cuts and the need to maintain a robust pipeline for medical breakthroughs.

4. Sector Spotlights: EVs, Streaming, and FinTech Timestamp: 26:39 - 32:31

Electric Vehicles (EVs): China's BYD unveils a groundbreaking charging system capable of powering cars in just five minutes, promising a 292-mile range. This innovation poses a direct challenge to American rival Tesla, whose stock has been under pressure due to leadership controversies and market performance.

Guy Adami criticizes Tesla's leadership:

“The CEO... behavior is downright despicable.” (28:51)

Streaming Services: Netflix receives an upgrade from analysts at Moffatt Nathanson, who raise the price target by nearly 16%, citing successful monetization strategies and the triumph in the streaming wars.

Dan Nathan praises Netflix's strategic moves:

“There’s more monetization than meets the eye.” (39:48)

Buy Now Pay Later (BNPL): Affirm's stock experiences volatility following Klarna's takeover of a key partnership with Walmart. The discussion centers on the strategic implications for the BNPL sector, with Dan Nathan expressing cautious optimism:

“I like Affirm… but why do you want to own [Affirm] going into a period where the consumer is clearly weakening?” (25:03)

5. Intel, Reddit, and Lululemon Market Movements Timestamp: 40:29 - 45:00

Intel: Shares surge nearly 7% following a regulatory filing indicating incoming CEO Lipu Tan's $25 million stock acquisition and potential strategic shifts in chip manufacturing and AI.

Reddit: The social media platform's stock experiences a rollercoaster day, dropping by up to 6.5% after a sell rating from Redburn, then partially recovering following an expanded partnership with Google.

Lululemon: Despite bullish notes highlighting positive brand momentum on platforms like TikTok, Lululemon's shares remain volatile, down nearly 11% in March. Tim Seymour supports the bullish outlook:

“If I could put an eye in my tube, I would… but valuation is a little expensive.” (43:59)

6. Upcoming Events and Closing Remarks Timestamp: 45:00 - 45:51

The episode concludes with a preview of future segments, including Jim Cramer's live chat with Nvidia's CEO Jensen Huang and discussions on the impact of NIH funding cuts on drug development.

Tim Seymour encapsulates the day's themes:

“What’s going on in Europe is really fiscal… but this is an epoch.” (16:59)

Karen Feinerman and Melissa Lee encourage listeners to engage with upcoming live events and stay informed about market dynamics.

Conclusion This episode of "Fast Money" offers a comprehensive overview of the current financial landscape, highlighting the robust performance of international markets relative to the U.S., the critical importance of NIH funding in sustaining medical innovation, and notable movements across key sectors like EVs, streaming, and FinTech. The panel provides insightful analysis, supported by notable quotes and expert opinions, making it a valuable resource for investors seeking to navigate the complexities of today's markets.