CNBC's "Fast Money" Episode Summary
Title: S&P 500 Nears Record High… And A Flex In The Weight Loss Drug Space
Release Date: June 24, 2025
Host: Melissa Lee
Panelists: Tim Seymour, Dan Nathan, Gai Adami, Danny Moses (Founder of Moses Ventures)
Additional Guests: Steve Liesman (CNBC), Ben Emmons (Fed Watch Advisors), David Hallal (Scholar Rock), Caleb Silver (Investor PD)

Market Rally and S&P 500's Near-Record High

The episode kicked off with a discussion on the robust performance of major stock indices. The S&P 500 surged over 1%, closing less than 55 points shy of its intraday record set in February, while the NASDAQ 100 hit a record close. The Dow Jones Industrial Average also reached its highest level since early March, despite having more room to grow.

Tim Seymour highlighted the optimism, “The S&P is jumping more than a percent,” indicating strong investor confidence in continued market rallies.

However, this surge was juxtaposed with a 6% plunge in oil prices to below $65 a barrel, adversely affecting the energy sector—the worst-performing sector in the S&P 500 that day.

Federal Reserve's Stance on Interest Rates

A significant portion of the discussion centered around Fed Chair Jerome Powell's recent testimony. There was speculation about the possibility of rate cuts and the Fed's approach to handling inflation amid geopolitical tensions.

Steve Liesman provided insights, stating at [02:39], “I did not get that impression on day one of his two days before Congress sticking very much,” suggesting Powell's cautious stance against immediate rate cuts.

Melissa Lee probed further, asking about the unusual nature of Fed governors expressing differing views just days before the chairman's testimony. Steve Liesman responded at [04:48], “I think it's pretty unusual.” He emphasized that while some Fed officials remain cautious, the majority leaned towards waiting to see the full impact of tariff-induced inflation before making rate decisions.

Guy Adami queried the risks of early vs. late rate cuts, to which Steve Liesman replied at [06:09], “I think being too early is the greater risk.” He stressed the importance of waiting for concrete inflation data before adjusting rates.

FedEx Earnings Report and Market Reaction

The episode delved into FedEx's latest earnings, which, despite beating profit and revenue expectations, saw shares drop due to disappointing guidance. Frank Holland summarized the situation, noting at [16:53], “The revenue guidance for the current quarter was better than expected, but the EPS guidance was significantly below estimates.”

Key points included:

• CEO Ross Rogemann cited geopolitical tensions and shifts in trade policy as headwinds.
• FedEx reported strong business improvements, particularly in US international imports and retail stock-ups before the tariff pause.
• Concerns were raised about margin misses in the Express segment and renewed low-margin business with Amazon.

Danny Moses characterized it as a FedEx story, emphasizing integration challenges between ground and express units and rapid transformation efforts during a tough period.

Utility Sector Boost Amid Extreme Heat

With soaring temperatures across the US, the utility sector experienced gains as demand for power surged. Pippa Stevens from CNBC explained, “More power sold increases revenue and earnings for utility companies.”

Highlights:

• Independent power producers like Vistra, Constellation Energy, and Talon benefited the most in restructured markets.
• Regulated utilities faced a mixed impact depending on their rate structures.
• Despite higher revenues, consumers projected to spend $784 on cooling—the highest in over a decade.

Payments Industry Embraces Stablecoins

MasterCard announced the integration of Five Star's new stablecoin into its payment network, signaling a significant shift in the payments landscape. This move comes as traditional payment stocks like MasterCard and Visa face existential questions due to the rise of merchant-issued stablecoins.

Tim Seymour expressed skepticism at [27:28], “These are probably going down parallel paths. It seems like a bubble right now in stablecoins.”
Guy Adami added, “MasterCard's valuation at 30 times earnings is probably a bit cheap, but concerns about the sustainable model of stablecoins are mounting.”

The panel discussed the challenges of consumer adoption and the potential for stablecoins to disrupt traditional credit card usage, though transitioning consumer behavior remains a hurdle.

Innovations in Weight Loss Drug Space

A focal point of the episode was Scholar Rock's promising developments in weight loss drugs. CEO David Hallal presented data indicating that their new drug effectively preserves lean muscle mass during weight loss, a significant advancement over existing GLP-1 therapies.

Dan Nathan explained at [31:28], “Our trial showed lean mass preservation of 54% with a P value of 0.001,” highlighting the drug's efficacy in ensuring that weight loss primarily targets fat rather than muscle.

Comparisons were drawn with Eli Lilly's similar phase II trials, positioning Scholar Rock as a competitive and innovative player in a market projected to be worth $30 billion. The discussion touched on commercialization strategies, partnerships, and the company's strong cash position, which is expected to sustain operations into 2027.

Investor Sentiment and Market Outlook

The episode concluded with insights into current investor sentiment. According to a survey discussed by Caleb Silver, 51% of investors view the market as overvalued but remain invested, favoring top-performing stocks like Nvidia, Apple, Microsoft, and Berkshire Hathaway.

Key takeaways:

• Caleb Silver noted, “Over 60% approve of how the Fed is handling monetary policy, despite external pressures.”
• Investors exhibit a cautious optimism, sticking with familiar high-performing stocks while also exploring new opportunities in sectors like quantum computing and clean energy.

Conclusion

The episode of CNBC's "Fast Money" provided a comprehensive overview of the current market dynamics, Federal Reserve policies, sector-specific performances, and emerging opportunities in the payments and biotech industries. Notable insights included the cautious optimism amidst geopolitical tensions, innovative strides in weight loss therapies, and the evolving landscape of stablecoin integration in traditional payment systems.

Notable Quotes:

• Steve Liesman [02:39]: “I think being too early is the greater risk.”
• Dan Nathan [31:28]: “Our trial showed lean mass preservation of 54% with a P value of 0.001.”
• Caleb Silver: “Over 60% approve of how the Fed is handling monetary policy.”

This summary encapsulates the key discussions and insights from the June 24, 2025 episode of CNBC's "Fast Money," providing a detailed overview for those who haven't tuned in.