CNBC's "Fast Money" Episode Summary
Episode Title: Reciprocal Tariffs Boost Stocks… And The Impact of RFK Jr’s Confirmation
Release Date: February 13, 2025
Host: Melissa Lee
Panelists: Tim Seymour, Karen Feiderman, Dan Nathan, Guy Adami
Special Guests: Eamon Javers, Len Yaffe, Patrick Moorhead, Angelica Peebles
Location: Studio B, NASDAQ Marketsite, New York City’s Times Square

1. Introduction: Market Overview

Melissa Lee opens the episode by highlighting the key topics for discussion, primarily focusing on the recent developments in reciprocal tariffs and the confirmation of Robert F. Kennedy Jr. (RFK Jr.) as the Secretary of Health and Human Services (HHS). The panel anticipates how these events will influence company earnings, stock performances, and the broader market landscape.

2. Reciprocal Tariffs and Market Reaction

a. President Trump's Tariff Plan

The episode delves into President Trump's recent memorandum outlining plans for reciprocal tariffs on foreign countries. Eamon Javers provides live coverage, detailing the President's meeting with Indian Prime Minister Narendra Modi and declaring India as one of the "worst offenders on tariffs."

Notable Quote:
Eamon Javers [02:24]: "This is going to set off a massive wave of global tariff haggling between now and April 1st, and we'll see where we land on all that."

b. Market Response

Following the announcement, markets experienced a significant uptick:

• S&P 500 closed just shy of a record high.
• NASDAQ surged by 1.5%.
• 10-year Treasury yields dropped by 10 basis points.

Notable Quote:
Melissa Lee [04:02]: "All right, Eamon, thank you."

c. Company Impacts and Industry Responses

The panel discusses how various S&P 500 companies are monitoring the tariff situation:

• Tesla, General Motors, Mondelez, Cardinal Health remain non-committal about the impact.
• Chipotle anticipates a 60 basis points ongoing impact on its cost of sales due to tariffs on Mexico and Canada.
• Ford CEO Jim Farley warns that tariffs could significantly disrupt the U.S. auto industry.

Notable Quote:
Guy Adami [03:21]: "If I'm an automaker, I'm absolutely concerned... companies are saying what they're saying."

3. Confirmation of Robert F. Kennedy Jr. as HHS Secretary

a. Confirmation Details

RFK Jr. was confirmed by the Senate with a narrow margin of 52-48 votes. Angelica Peebles breaks down the implications for the healthcare sector.

Notable Quote:
Melissa Lee [43:12]: "Senators confirming one of President Trump's most controversial cabinet picks today."

b. Policy Implications

RFK Jr.'s agenda includes:

• Radical Transparency: Enhancing openness within the NIH, FDA, and CDC.
• Standardizing Science: Removing panel members with conflicts of interest.
• Chronic Disease Focus: Assessing and reversing chronic diseases, particularly obesity-related conditions.

Notable Quote:
Angelica Peebles [34:23]: "The GLP1s are the most transformative drug class that I've seen in my career."

c. Market Impact

Following the confirmation, RFK Jr.’s shares surged by 27%. The panel contemplates the potential long-term effects on healthcare companies and the broader market.

Notable Quote:
Guy Adami [38:23]: "There are a lot of opportunities in the healthcare sector... I think Novo is down 40% off those highs."

4. Earnings Reports and Stock Movements

a. Intel's Surge

Intel shares rose by 7%, marking a 26% gain for the week—the best performance since January 1975. The stock's appreciation is attributed to the Trump administration's push for joint ventures in chip production and safeguarding American AI technology.

Notable Quote:
Melissa Lee [11:43]: "Intel shares, they jumped 7% today, bringing its gains for the week to 26%."

b. GameStop's Crypto Consideration

GameStop's stock surged by approximately 9% after reports surfaced that the company is evaluating investments in Bitcoin and other cryptocurrencies. This move follows CEO Ryan Cohen’s association with crypto-enthusiast Michael Saylor.

Notable Quote:
Guy Adami [21:18]: "They could go out and buy apples... If you're just telling me I'm going to go out and buy an asset and I think it's going to go higher. You go out and buy Bitcoin, right?"

c. Other Notable Stocks

• Molson Coors: Up nearly 10% after exceeding earnings and revenue expectations.
• Crocs: Surged by nearly 24% following strong earnings.
• Hyatt Hotels: Experienced a significant drop due to disappointing Q4 results.
• Applied Materials: Lowered Q2 revenue guidance despite being a key player in the semiconductor manufacturing equipment sector.

Notable Quote:
Dan Nathan [28:07]: "That was an interesting move. This is one from way, way back when."

5. GLP1 Drugs and Healthcare Policy

a. GLP1s as Transformative Drugs

The discussion centers on GLP1 drugs, hailed as breakthrough treatments for obesity and related chronic conditions. Angelica Peebles emphasizes their potential to reduce morbidity, mortality, and healthcare costs.

Notable Quote:
Angelica Peebles [34:23]: "The GLP1s are the most transformative drug class that I've seen in my career."

b. Government and Industry Response

With RFK Jr.’s focus on chronic diseases, the panel anticipates stricter regulations on compounded drugs and increased support for branded pharmaceuticals like those from Lilly and Novo.

Notable Quote:
Angelica Peebles [36:27]: "As the data comes out and the insurers realize there's tremendous cost savings to be had... they will be forced to cut to cover the drugs for reimbursement."

c. Stock Opportunities

Healthcare stocks, particularly those involved in GLP1 drug manufacturing, present significant investment opportunities. Guy Adami recommends focusing on undervalued healthcare companies poised to benefit from upcoming policy changes.

Notable Quote:
Guy Adami [37:47]: "I would just go straight to Novo... There's a lot of risk even in getting closer manufacturing bed with them."

6. Market Sentiment and Final Thoughts

a. Market Optimism vs. Uncertainty

While reciprocal tariffs provide a temporary uplift, underlying economic indicators such as inflation and bond performance pose long-term challenges. The panel debates the sustainability of current market gains amidst these uncertainties.

Notable Quote:
Patrick Moorhead [08:19]: "If you have this much time for him to negotiate... the worst case scenario is not going."

b. Diversification and Investment Strategies

Emphasizing the importance of diversified portfolios, the panel suggests focusing on sectors likely to benefit from policy shifts, such as healthcare and technology, while remaining cautious of volatile stocks influenced by speculative trading.

Notable Quote:
Karen Feiderman [25:08]: "I'm surprised when is not significantly higher. Valuation is compelling."

7. Closing Remarks and Upcoming Events

Melissa Lee wraps up the episode by announcing the first "Fast Money Live" event scheduled for February 27th at the NASDAQ Marketsite. The panel encourages listeners to attend and engage with the hosts and panelists.

Notable Quote:
Melissa Lee [29:27]: "We are very excited to meet you, particularly Guy."

Key Takeaways

• Tariff Developments: The introduction of reciprocal tariffs has temporarily boosted major indices, but uncertainty remains regarding their long-term implementation and impact on various industries.

• Healthcare Sector Shift: RFK Jr.’s confirmation as HHS Secretary is set to bring significant policy changes, particularly in chronic disease management and pharmaceutical regulations, presenting both challenges and opportunities for investors.

• Stock Performance Variances: Earnings reports continue to drive stock movements, with companies like Intel and GameStop showing notable gains, while others like Hyatt face declines due to disappointing results.

• Emerging Opportunities: The healthcare sector, especially companies involved in GLP1 drug production, may offer lucrative investment opportunities in light of upcoming policy changes aimed at reducing chronic disease burdens.

This comprehensive summary encapsulates the critical discussions and insights from CNBC's "Fast Money" episode, providing a clear understanding of the topics covered for those who did not attend the live broadcast.