← CNBC's "Fast Money"
CNBC's "Fast Money"
Stocks Surge On EU Tariff Delay… And Nvidia Results On Deck 5/27/25
00:43:42
Stocks jumping to kick off the shortened holiday week, as investors digest President Trump’s EU tariff delay. How the pause, mixed with better-than-expected consumer confidence, helped boost markets and pull yields back. Plus All eyes on Nvidia, as the chip giant gears up to report earnings after the bell tomorrow. How the Fast Money traders are positioning, and what to expect from the numbers. Fast Money Disclaimer
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- [00:02]
Melissa Lee
As America's leading business lender, bank of America is on your corner and in your corner. With $215 billion in business loans and over 3,700 business specialists across the nation, we help businesses thrive so communities prosper. What would you like the power to do? Learn more@bankofamerica.com LOCALBUSINESS bank of America Official bank of FIFA Club World Cup 2025 Copyright 2025 bank of America Corporation. All rights reserved.
- [00:31]
Dan Nathan
Hey Fidelity, Can I get a second opinion on stocks in the Fidelity app?
- [00:36]
Melissa Lee
With Fidelity, it's easy to get an outside opinion from independent experts in a single score. And then when you're ready, trade US stocks and ETFs with no commissions.
- [00:47]
Dan Nathan
That's right.
- [00:48]
Melissa Lee
I am always right.
- [00:50]
Dan Nathan
Investing involves risk, including risk of loss.
- [00:52]
Melissa Lee
Online US equity trades and ETFs and.
- [00:53]
Dan Nathan
Retail fidelity account sell order assessment fee not included Some account types and securities Excluded details of fidelity.com commissions FidelityB Brokerage.
- [00:58]
Melissa Lee
Services, LLC Member NYSE SIPC Live in the NASDAQ marketsite in the heart of New York City's Times Square. This is fast money. Here's what's on tap tonight, a major market rebound, stocks jumping as the president delays EU tariffs and new data suggests the consumer isn't nearly as strapped as feared. But can the rally keep going and how much higher can we go from here? And Nvidia earnings on deck. We are counting down to the chip giants report tomorrow what investors should be watching and how they should trade the name. Plus, Tim's mega trade gets a boost. Shares of Novo Nordisk hit a two month high while one of our traders is eyeing the chart. And Karen's drafted a new deal. Why she is betting on the New York Liberty and what she thinks is next for the defending WNBA champs. I'm Melissa Lee, come to you live from studio. Be at the nasdaq. On the desk tonight, Tim Seymour, Fanwy. Nice. And Dan Nathan and Guy Adami. And we start off with a major market melt up to kick off the holiday shortened week. The S&P 500 soaring more than 2% to close within a stone's throw of the 6000 levels. The Dow surging over 700 points. The NASDAQ jumping 2 1/2 percent. Yields pulled back. Bitcoin got a boost above $110,000 and the dollar rose. All that action after President Trump posted on Truth Social over the weekend that he would delay proposed 50% tariffs on the European Union until July 9. News of those levies sank stocks on Friday and helping stocks a monster beat on consumer confidence, the May reading coming in a whopping 12 points above estimates. Do these things together give an all clear for the markets guy?
- [02:31]
Guy Adami
If I had been here on Friday, which I was not, I would have said, you know what Mel, the market did not close particularly well. Yields are going higher. You have this long weekend. We traded down the 200 day moving average. The chance for an on reversal to the downside. It doesn't look good. None of that came to fruition. We traded on the 200 day and bounced exactly off it. Yields are coming back in so that augurs particularly well, I think, especially with earnings tomorrow. Nvidia I'll say this though, the concerns I have have not gone away. I mean the European tariffs, it's not like there's some huge trading partner. So I don't know why the market took all sort of the relief that it did. But with that said, you know, if you get yields continuing to come in, especially with some of the comments from Besson over the weekend, that's encouraging for the market.
- [03:12]
Tim Seymour
The things that I think are really fascinating here is as we go into Nvidia tomorrow, we're going to talk about that. We've talked about it. You know, that's all we talk about but is that the NASDAQ is at a, almost a six month high on a relative basis to the S and P. So at least it's come back to kind of that level on a relative basis to the S and P from February and then if you take it all the way back just a little bit higher, you're back to that July high. I'm not saying we're going to do it. I think there probably needs to be another test before you test higher. But it's extraordinary to me that the market leadership and I know we're going to talk about international, I don't think that kills any international trade. But you know, the market had a lot to go on today. Not only is the sentiment from the White House and I think we've said this different times in different ways also, which is that I think the worst of the tariff rhetoric I think is behind us, doesn't mean that the impact from tariffs isn't very much in front of us depending on what we get. You had a bond market that was very cooperative, yet a bond market that not only included a very successful auction, a two year auction which isn't more as important as a ten year auction. But more importantly in Japan you had some announcements from their, excuse me, their treasury effectively that they're going to be issuing less on the longer end that supported the bid to long dated bonds around the world. A bond rally I think is very important for equities here, especially when you consider where we were at the start of last week. So a bunch of ingredients include soft data, consumer confidence for, you know, four year highs. In terms of the size of that move, that's pretty good.
- [04:33]
Dan Nathan
Yeah. So let's go back to like that second week in April. You got to ask yourself, what was the market discounting then? Right. And so we didn't have any reason to believe that the data was going to immediately get bad. Then we had earnings season at that point, banks got out of the gate. It was just pretty good for the most part as we got deeper into some more cyclical areas and then we got into big tech, everything seemed about fine. So let's kind of flash forward now to where we are right now. And I guess the question is, what are we discounting here? And I think you, you guys are right. Mel, you got me right in my grill a couple weeks ago.
- [05:00]
Melissa Lee
I wasn't in your grill.
- [05:01]
Dan Nathan
You were kind of in my grill where you said the worst of the narrative. Exactly what Tim just said. He's kind of taking your line and going with it a little bit. It's probably behind us for all intents and purposes. But I bring you to this whole thing now where things get really ugly at the end of the week because people are just kind of like, kind of digging in and figuring out like.
- [05:19]
Melissa Lee
Okay, because the EU stuff and so it's the EU stuff, like why do we sell off on the EU stuff then? Why? And why not claw back those losses today since I get it.
- [05:27]
Dan Nathan
But we didn't sell off 2% in a straight line on one day. Right. And so Tim's been saying this. The pain trade is higher right now. Right. And so I get all that. But we're going to come in on a Monday and there's going to be a tweet on a Sunday and it's not going to do the thing that you think it's going to do because again, it's kind of like the boy who cried wolf. Everyone knows the playbook. Right? And so I am surprised that we opened up one and a quarter percent and closed on the highs up 2%. Because you would have thought that we kind of get what's going on. That being said, we have gdp, we have minutes, we have PC, which is.
- [05:55]
Guy Adami
What the Fed, I think that's their favorite indicator.
- [05:58]
Melissa Lee
Preferred.
- [05:59]
Tim Seymour
Preferred indicator.
- [06:00]
Dan Nathan
Right. And there could be a Whole host of stuff that happens this week which says, well, maybe we should be kind of unched on the year.
- [06:05]
Melissa Lee
What do you think?
- [06:06]
Karen Finerman
Well, you know, as Tim has mentioned before, you know, the hard data has been constructive for, I mean for, for lack of a better word, it's been, it's been okay, it's been lukewarm. It definitely hasn't been of concern. I do think there has been some volatility. Dan mentioned some of the earnings that came out. Let's not forget, you know, the apples of the world. Let's not forget the, the, well, the Foot Locker just had the takeout situation. But let's not forget Nike. Let's not forget, you know, the companies that have been absolutely bashed for pulling forecasts. So you still have this, this overhang. And I think yes, in the short term it's been addressed and that's likely why we traded up higher. But I do get behind kind of Dan's assertion that it's like you really wonder what takes us, what takes us higher. This seems like a situation where you can come out, say something absolutely ridiculous, then come back to normalcy and the market trades higher on the back of that. I do think there's, there is has to be some into that because it.
- [06:56]
Melissa Lee
Just creating a problem which will then be fixed by the same.
- [06:59]
Karen Finerman
We don't even believe that there's a problem anymore.
- [07:01]
Dan Nathan
Right.
- [07:02]
Tim Seymour
Well, if you guys are talking about complacency in markets, that's fair. I can give you 7 trillion reasons in terms of the cash that's in money market funds that the market's going to go higher. I mean, the people have been positioned so defensively and I think mostly the professional community. So, you know, there's no question that there are economic uncertainties and there's most likely not going to be an economic fallout for the next three to six months. And I think that's the part of this that makes it very difficult because what we've said, I think the bigger thing we've all said on this desk I likes to talk about this is what's the multiple we're doing for the S and P in a recession? It's a very different multiple, but we don't have a recession. So in the meantime, the news flow, it's frustrating. We see this with stocks on the way down. The same things that were knocking down Pfizer for, for six months kept knocking them down for a market that getting a relief every time Trump says we might do, you know, a, an extension on a tariff dynamic. I Think the market's going to continue to rally it also at the same time whether it's not good for the bond market and the deficit. We have a case here where I think, you know, you could actually see more pressure in terms of upside on tax cuts.
- [08:07]
Melissa Lee
I agree with that. In terms of tax, I don't know if we factor tax into whatever rally that we've seen. I mean, are we overthinking it? Because as long as the consumer is still spending, as long as the consumer still has a job, and all the data so far is pointing to that, still, markets can go. Why can't they go higher?
- [08:25]
Guy Adami
Well, one thing I thought for a while, and I think today sort of gives me a leg to stand on, is consumer confidence is an overlay of the s and P500. And the fact that the markets rallied the way it has since early April overlays with this consumer confidence. It makes sense. So if you continue to get a market rally, people would feel good. If people feel good, they spend. The question continues to be, should they be spending? And delinquency rates continue to sort of tick higher in a pretty meaningful way that nobody's paying attention.
- [08:52]
Dan Nathan
So Tim just mentioned recession. Right. So we had this situation in 2022. The markets were actually pricing in recession. We got in 2023, we never had the recession. We still don't have the recession. We had this period where trade war. Right. So I guess recessions don't really matter. If you go all the way back to 2009, after the financial crisis, we didn't have a recess Covid. Right. And we know what caused that in a way. So the idea that the market's going to sniff out a recession is probably not particularly likely anytime soon. The fact that we've extended this period in which we cannot have. I think that's like, what is it every five, six years? Historically, we had a sort of a recession. Maybe somebody who's coming on in a second can do that.
- [09:28]
Tim Seymour
But what's different this take every 20 years.
- [09:30]
Dan Nathan
Is it really.
- [09:31]
Tim Seymour
It's not every five or six years really depressed? Yeah, it's really five years.
- [09:36]
Dan Nathan
Well, earnings recessions. How's that then?
- [09:38]
Melissa Lee
At the time of this show, we've seen three recessions.
- [09:41]
Guy Adami
18 years.
- [09:42]
Dan Nathan
If we make that. I mean, if we make it to.
- [09:44]
Melissa Lee
January, I mean, that's a little extreme. But anyway, we get, you know, it's. It's a cycle.
- [09:49]
Dan Nathan
Yes, I say that. But the point, I'd say what's different this now is that fed funds are at four and a half percent. Right. So like during 2009 to 2018 or 19, we basically had zero percent on fed funds.
- [09:59]
Melissa Lee
Yeah. All right. For more on today's rally, what Trump's latest tariff moves mean for the markets, we are joined on set by Ben Emmons. He's a senior investment executive at Strategic Fortune wealth and founder at FedWatch Advisors. Ben, great to have you with us. I don't know if you have recession data at your fingertips, but what do you, what do you think the market is pricing at this point? Where are we in this, in this rally?
- [10:19]
Ben Emmons
So it was really amazing, this confidence number today, right. Where you know, in that, in that number shows that people expect about stock prices. This is now people think 44% of that survey said that stock price will be going up the next 12 months. That was 35% when we were during the whole tariff, the market we went through. So there's a big shift happening there that people suddenly getting confident that as you're putting the stairs off that that's really what this all was about is a confidence crisis that we had and we're reversing that. And the markets, as you say guy, is already rallied ahead of that confidence. So what you're going to see now is that the survey data really were hit with like consumer confidence or what you had. The Dallas manufacturing survey showed a similar sort of effect that gets affected just by the tariffs and starts reversing. This is only going to drive the markets even higher because that's really what the data was impacted by as opposed to the, the hard data that's not showing any effect.
- [11:12]
Melissa Lee
Are you a believer in the rally? I mean you say that the market, you know, all these things are positioned, are in place for the markets to go higher. But is that what you, Ben Evans, believe will happen?
- [11:23]
Ben Emmons
I think it will because one is a good technical picture that's changed, I think to two guys point the bounce off the 200 day moving average in a really nice trending sort of channel on the, on the Nasdaq as I've been tracking, that particularly points really to the upside. But what is encouraging is that if we do get to a stance here between China and the US And Europe and the US which is the biggest part of the trade war, sort of getting to a point of like there's this deal in the works and it stays that way, then there's no reason why markets couldn't go higher. So I think that's convincing because we don't have an economy, as you say, is in a Recession. It may have been a confidence recession that we had briefly, but that was so small it didn't really matter. So I think it's much more upset.
- [12:04]
Guy Adami
I'm sorry, go ahead. No, you go ahead. No.
- [12:06]
Dan Nathan
Wow. Please, Ben, if I told you since 1945 we've had 12 economic recessions, that's 79 years.
- [12:13]
Tim Seymour
You come back so definitive on your.
- [12:15]
Dan Nathan
Recession and you divide it by 12, you get 6.6.
- [12:19]
Tim Seymour
Do you see what happens on this.
- [12:23]
Dan Nathan
Perplexity like that? You guys are getting all right. So we've extended. What do you call it, Guy? We've alchemy out recessions. Okay. But what's different is we do have four and a half percent. So we haven't had a recession going back to Covid. Let's get rid of that one. Like what does that mean? Like the markets were obviously sniffing it out. We didn't have it this time around. You know, who knows what's going to happen? Will the market start to figure this out if we start getting hard data that kind of shows that things are weakening a bit.
- [12:48]
Ben Emmons
Well, I think matters there then is that the trade between China and the US was put on hold as frozen embargo, which is a big deal for gdp. Right. If you actually keep that in place, I would say your recession goal is right. We would be in a recession. But since we started slowly restarting it and it seems to be the case, you can kind of tell from, from China data too. That I think is the big, the big data point we should be watching. If there's indeed more weakness coming through that that we didn't know of, you can maybe make that call at least. The economy got a lot weaker through this whole episode. So that doesn't seem to be the case. And there's no I think financial indicator giving us a signal of a recession of any kind is really that data, the trade data between the US and China.
- [13:31]
Guy Adami
Last week Japan had one of the worst spot, the worst bond auction since 1987. Our yields were going up on the back of that dollar yen was seemingly going to test 140. Tim mentioned a lot changed over the weekend. But is that fixed or just sort of pushed off a little bit?
- [13:45]
Ben Emmons
Amazing how they overnight started sort of verbally intervening in the JGP market. It's actually the first time I've seen it in a while. There's always a dollar yen that gets set verbal intervention attention. We got that auction tomorrow. There may be some short covering going on here just to try to get out of the way but the fact is that Japan has a, an inflation issue. You know, it has a food price crisis and it's I think party driven, maybe to the tariffs part, maybe driven just to the domestic situation that the bank of Japan cannot keep the hikes off the table. So this is, I think, a very temporary situation. I would not think that these yields are going to go much lower from here. And if we're getting more relief from this trade war, as in, you know, if it further fades away, the economy gets more relief here in the US just in itself drives up yields and will drive up GDP yields.
- [14:32]
Melissa Lee
Do you expect yields here to remain tame?
- [14:35]
Ben Emmons
No, actually it don't. I think what we experienced in the.
- [14:38]
Melissa Lee
Past, we will rally with rising yields, I think so.
- [14:41]
Ben Emmons
I think it's really a function of we had this volatility in April and there was this whole debate about Powell too. I think that had an impact on rates. As we're getting out of that, you get this relief on the economy, so to speak, then yeah, you're getting this good news, good news idea. So you would see higher yields and higher stock prices. I think that's where we're going.
- [15:00]
Melissa Lee
Ben, great to see you. Thank you.
- [15:01]
Ben Emmons
Thank you.
- [15:02]
Melissa Lee
Emmons, what do you think? Higher yields and higher prices.
- [15:05]
Karen Finerman
I think that sets up for an interesting backdrop. I mean, listen, it's hard to argue against Ben. I think he brings up a lot of interesting points, but I think I'm going to kind of raise my hand and opt out of, of the consensus here. The situation where we're trading in a very unlikable nome tariffs at 145%, 150%, 125% for an unknown reprieve. To me, I think that has run its course. It's very hard for me to articulate and sit down and put down quantifiable numbers and put new money to work knowing that I'm essentially investing on a hope and a prayer. And that's what it feels like right now. Perhaps I'm paying too much attention to the headline risk, but I think that is being overlooked and I just need to raise my hand and say I think it's concerning.
- [15:49]
Tim Seymour
Bonnet is not living on a prayer, guy.
- [15:51]
Guy Adami
I mean, that's jovial for you.
- [15:52]
Tim Seymour
And thank goodness, Tuesday I was nice to squeeze Jovian. I think that if we've cleared volatility out of the US treasury market, and I'm talking about a, you know, the foreseeable, the one month window, something dynamic here. And again, a world where ECB is going to cut rates next week. I think that bodes very well for the equity market. It just does. And if the volatility grind continues lower, then equities are going higher. There's no question that the good news that's in the market today is overly good news.
- [16:21]
Dan Nathan
Yeah. And just like we couldn't kind of foresee, you know, how things were going to get much worse back in April. I mean, at this point, I think the idea that things could get that much better, if you look at just kind of where we gapped through from that China pause, it was kind of 5650, 50, 700 or something like that. Here we are now close to 6,000, as Mel just said. And I just don't really know what that next catalyst is going to be. Okay, so Mexico, Canada, just kind of Monday morning we're going to get this tweet that we have a framework, this, that or whatever. I think you have to go back a couple of months where like none of this was on the table really, or at least the extent that we were. So at the end of the day, I think the weak data, if we start to get it, is really going to kind of retest the S&P 500 probably back towards that 5600 level.
- [17:01]
Melissa Lee
Meantime, international ETFs riding higher today. Germany and France surging after the EU tariff delay with the EWG. Germany ETF hitting a new record. Rallies outside Europe as well. Japan and Canada ETFs at all time highs while Mexico is at its best since August 2023. So we have to ask Tim about this quote unquote, mega trade.
- [17:20]
Tim Seymour
Yes, we're making international great again. And I think it's. What's interesting is it's actually happening now. When you've seen a rally back, you're still seeing that outperformance and its relative outperformance. You know, a couple of headlines that are really important, especially those out of today. One was just that over the weekend there was some press out that Germany's actually now become the largest creditor nation in the world. In other words, they have a current account surplus. They are someone that does not speak, you know, splurging on, on debt. Why is that important? Because Germany, which we know to be fiscally austere, has basically said we are now going to run a fiscal deficit. We are now going to spend a ton on defense. We are now going to do things to jumpstart the economy. I just think it means the multiples for a lot of stocks, especially those in the defense sector. But industrials across Europe, very, very positive. I think energy prices going significantly lower as they have. Whether they go a lot lower, it doesn't matter. This is a huge tailwind for the European economy. Who has energy import costs?
- [18:15]
Guy Adami
You recall at I connections we had a guest on and we talked the Brazil etf. Do you remember that conversation?
- [18:20]
Melissa Lee
Yes, I do. Martinez Gabbard. Yes.
- [18:23]
Guy Adami
Great job.
- [18:24]
Melissa Lee
General Atlantic.
- [18:25]
Guy Adami
But he talked about how cheap it was and how sort of hair triggered. I think it was trading around 22 at the time. Very quietly. That's gotten itself up to about I think 28 and change or 28 as I'm looking at it now. Brazil to me is still insanely cheap at these levels.
- [18:38]
Melissa Lee
So if not a dollar to work in the US markets Bono. And how about a dollar overseas? But to work.
- [18:45]
Karen Finerman
I like, I like the Germany trade only because again, there's metrics to support that. I do think Brazil has lagged. I mean that's a, that's a market we should trade quite a bit. And if you look at fund flows, there's been a recent fund flow out. I would not forget how quickly that economy can be reignited. The one con is that it is very levered to natural resources. And if you have concerns around that and you, and you don't think we've based yet in that space, I think you may want to think twice about that.
- [19:12]
Dan Nathan
Hey, Mega boy, isn't there.
- [19:13]
Melissa Lee
Whoa, whoa.
- [19:15]
Dan Nathan
Isn't there a case made though that Germany is much weaker than we are? Right. And they're lowering interest rates in the EU right now because they're kind of worried a little bit more of weakness. If you think about what's going on here, what we just described, a bit of a soft landing, right. If stocks can continue to rally like this, the economy can kind of hang in there with, you know, fed funds at four and a half percent. So on a relative basis, isn't the US like in a better spot right here?
- [19:37]
Tim Seymour
I don't know that they're a lot weaker than us. I think again the jury's out part of this flow of funds, which is the technical side of it. But the fundamentals are that the EU differentials between Europe and the US haven't been this tight in a long time. And at some point, actually, at least based upon where we were with tariffs from Liberation Day, the expectations were that Europe was going to outperform on a GDP basis. So I don't think there's a, something that's cast in stone that we're Definitely going to see European growth be weaker than the US And I think their central bank will be more accommodative. Right.
- [20:07]
Dan Nathan
But won't a trade deal weigh heavier on their economies than it is ours? I mean we're the ones bringing a.
- [20:12]
Tim Seymour
Bad trade deal or a good deal.
- [20:13]
Dan Nathan
What I'm saying is there's no good trade deal for the eu. Right. Like think I don't like how is there a good trade deal relative to April 2nd.
- [20:19]
Tim Seymour
A good trade deal for the EU is that suddenly the US has put themselves at loggerheads with every other trade partner and Europe is the largest trading economy in the world outside of China. So I mean I actually think that it means pretty good news for them. But I would get back the most important and the historic things are that Europe is now going to spend money like they haven't spent before. I also think there's going to be a lot more deregulation. We think deregulations here. The Europeans are waiting for our bank regulation to see how much they can deregulate their banks. I think they got themselves way out on a limb. I'm talking a lot here, so I'll just back off of this. But I do think it's not even about the growth differentials even though I think they will actually favor Europe.
- [20:53]
Melissa Lee
What did you think of Dan calling him Mega boy?
- [20:55]
Guy Adami
Was that started it all? That's somewhat derogatory.
- [21:05]
Melissa Lee
Mega Man.
- [21:07]
Guy Adami
That's a great term.
- [21:13]
Tim Seymour
Once we challenge your recession assumption. Because there's only been four.
- [21:16]
Dan Nathan
None of you guys by the way.
- [21:17]
Tim Seymour
So what's that? I knew this was gonna happen.
- [21:19]
Dan Nathan
No, we talk about in the post war era all the time.
- [21:23]
Tim Seymour
Why would not go to 4912000 Great financial crisis average in the last 80.
- [21:28]
Melissa Lee
Years of Chinese retailer P dropping after the Temu parent posted a big Q1 miss and with a slate of other retail earnings on deck, it's a whole group about to go on discount. That's next. Plus all the headlines from the Bitcoin 2025 conference in Las Vegas as President Trump's media company looks to raise billions to scoop up the cryptocurrency. We're going live to the Strip to get the details. Don't go anywhere fast. When he's back into. Your best restaurant location gets five star reviews. How do you make every location like your best location? Your best paper mill has been operating at peak productivity. How do you make every mill like your best mill? Your best data center has optimized every drop of water. How do you make every data center. Like your best data center, the answer is Ecolab. Better performance, better outcomes, better impact. Ecolab now every location is your best location. Comcast operates the nation's largest converged network, reaching 64 million homes and businesses. With $80 billion invested to expand broadband infrastructure in the U.S. comcast is actively supporting the goal of bringing broadband to everyone, including rural communities across the country. Comcast has connected 1.2 million new homes and businesses in the last year and are on track to do the same this year. Learn more about how Comcast is bringing high speed Internet to communities across the country@comcastcorporation.com on WhatsApp, your personal messages stay private between you and whoever you send them to. So things like the passport numbers for your honeymoon stay between you and your fiance and that video call for your gran's 80th stays in the family. Even your streaming password stays between you and your college roommates, who still ask for it every week in your group chat. Because on WhatsApp, your personal messages are yours. No one else can see or hear them, not even us. WhatsApp message privately welcome back to Fast Money Buzzkill on PDD shares of the Temu parent company sinking almost 14% after disappointing first quarter results impacted by trade tensions between the US and China. Management also giving a downbeat forecast on the call saying that the trade war will likely weigh on profitability for a quote, considerable period of time. The stock putty in its worst day since last August. Not only are they facing tariffs, but they also are experiencing the closure of the de minimis loophole which prevents them from shipping small packages to the US for free, basically which is an essential part of their business model. Tim, what do you think?
- [24:03]
Tim Seymour
Look, it was a missed top line, was a missed bottom line. It was, it was one that they characterized on traffic and sorry, tariff uncertainties. And remember, all the Chinese Internet stocks are not the same business model. And I would get back to Alibaba, which has Ali cloud and is a favorite child at home to actually be a technology juggernaut. So these numbers weren't great. When you only go 10% year over year with a multiple that's not that cheap, this is what happens.
- [24:28]
Karen Finerman
Yeah, the revenue growth again and multiple. I'm not going to repeat that, But I agree 100%. I think 50% missive of on earnings is I'm surprised the stock is only down 14% which tells me that despite the euphoria around tariffs having been a blow over, I think there is something baked in here that this might be a Continuing situation. I think personally in PDD's case, I think that de minimis tax removal is more impactful than the actual overall tariff rate.
- [24:57]
Melissa Lee
I mean that is, was part of how the business was built. In theory. This should be great news for the likes of an Amazon or a lower cost retailer that lost a lot of business because people are buying $4 bathing suits from Temu and Sheehan.
- [25:11]
Guy Adami
Yeah, well, and, and yes, it should be number one. Number two, if you get down about 95, go back and look. That was the low we made in September and a few different times this year earlier in the year. Operating margins need to be better. That was a miss at 17%. So there's a lot not to like here. But the bottom. But the flip side of the coin is a lot's discounted in the stock in terms of the bad news I think as well.
- [25:32]
Dan Nathan
Yeah, Mel, you just use the term business model and the business model really was meant to sell cheap crap to the US and to EU and that sort of thing. And a lot of their sales come from outside of China. It's not even one of those situations where you can make the argument that this is showing that the Chinese consumer is weak. And the other thing I'll just say is that over the weekend they put in place the Chinese, you know, some sort of capital structure to kind of support Chinese consumers. They're trying to kind of show that they're going to consume more, right. They're not going to manufacture any less. And this is a big part of, of this trade war. But I don't know how you stimulate an economy to increase consumption when they just like if you look at just how much these folks make and you look at the debt bomb that they have within the real estate market, everything like that, it's just, that's not going to happen. So at the end of the day, if these companies are going to work, they have to work outside of China.
- [26:20]
Melissa Lee
There's a lot more fast money to come. Here's what's coming up next.
- [26:24]
Dan Nathan
Bitcoin near record highs as the Bitcoin 2025 conference kicks off the sights and sounds from the Vegas strip and how the administration is helping boost prices. Plus, all eyes on Nvidia as the semi giant gears up for earnings after the bell tomorrow. What our traders see in store for the stock and how they're positioning ahead of the numbers. You're watching Fast Money live from the NASDAQ market site in Times Square. We're back right after this. Are you still quoting 30 year old movies. Have you said cool beans in the past 90 days? Do you think Discover is isn't widely accepted? If this sounds like you, you're stuck in the past. Discover is accepted at 99 of places that take credit cards nationwide and every time you make a purchase with your card, you automatically earn cash back. Welcome to the now it pays to Discover. Learn more@discover.com credit card based on the February 2024 Nelson Report Ryan Reynolds here from Mint Mobile. I don't know if you knew this.
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But anyone can get the same premium.
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Assistants switch you to Mint Mobile today.
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I'm told it's super easy to do@mintmobile.com.
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Melissa Lee
Switch upfront payment of $45 for 3 month plan equivalent to $15 per month required intro rate first 3 months only, then full price plan options available, taxes and fees extra. See full terms@mintmobile.com welcome back to Fast Money. Bitcoin less than 2% from record highs rising again today. The crypto about 16% in May alone. The rally coming as Bitcoin 202025 kicks off in Las Vegas. CNBC's MacKenzie Segala says the highlights from the Vegas Strip Mackenzie.
- [28:16]
G
Hey Mel. The biggest names for the administration and Congress are in Las Vegas this week for bitcoin's flagship event as the coin surges back toward its all time high. Don and Eric Trump, crypto czar David Sachs and Vice President J.D. vance are all here touting digital assets as strategic for the US economy. ETF inflows have pushed Bitcoin's market cap near $2.2 trillion as US debt fears after Moody's downgrade and a White House push to legitimize privately issued digital dollars drive momentum. Beau Hines, who chairs the White House Digital Assets Council, told me that stablecoins are central to that strategy, noting that tether was among the top 10 buyers of U.S. treasuries last year. Regulators like the OCC and Fed have also rolled back restrictions on banks touching blockchain. But ethics questions are growing over Trump's own crypto holdings, including four tokens that funnel up to 80% of profits to his businesses and a $2.5 billion bitcoin treasury unveiled by Trump Media earlier today. And while bitcoin grabs headlines here in Vegas, Robinhood CEO Vlad Tenev says the real action is on chain with stablecoins poised to power 24. 7 Equities trading.
- [29:28]
Melissa Lee
Mackenzie, in terms of the ethics concerns, are they surfacing there at the conference or is it just all, all, you know, all guns blazing for crypto because the Trumps are there and you might as well invest alongside the President and his family.
- [29:45]
G
It's exactly that. There's so much optimism and exuberance that even if there are these questionable dealings where you have profit structures that obviously are benefiting the family, it's a rising tide lifts all ships. So USD 1, which is that US dollar peg stablecoin issued by World Liberty Financial, where 75% of profits from that project go to Trump related entities, that is a stablecoin that benefits from the Genius Act. And a lot of players in this ecosystem, tether among them would like to see formal hard and fast rules approvals passed by Congress. And that's why you're seeing optimism, even if, you know we're talking about USD 1 in one situation. Another one of those Trump tokens is the meme coin, which has also sparked a lot of controversy. $148 million spent by contest winners last week to attend a dinner with the President more than all but six of the top 25 holders who had a private reception with the President were connected to foreign exchanges. And so there is that question around foreign capital potentially buying access to the.
- [30:46]
Melissa Lee
Head of the U.S. macKenzie. Thank you. Mackenzie Segalos joining us from Las Vegas at Bitcoin 2025. We've had this conversation before and we don't necessarily need to get into the ethics concerns, but the fact of the matter is, is if the President is for crypto, a number of people in the administration, number of people in his family are for crypto. It's hard to make the case to not be in crypto.
- [31:11]
Guy Adami
Right, right.
- [31:11]
Melissa Lee
Especially when there are fundamentals involved as well in terms of concerns about US debt and spending, etc.
- [31:17]
Guy Adami
And that's been the gold story. But fair enough, we can put it over to bitcoin as well. But so if you're not in bitcoin, how do you trade this necessarily? And I don't think it's coincidental that on this day Robinhood made an all time high north of 67. Coinbase probably does well in this environment. So if you're not a bitcoin enthusiast, there are ways to play it in the equity market.
- [31:36]
Tim Seymour
Yeah, I think that look, last week was a crucial week. I mean if you think about that again, with the regulatory environment changed dramatically and you know, dollar linked tokens, the dynamic that more institutional follow through will come from more regulation there's just no way around it. So leaving aside conflicts, I don't think this is, I think this is where we were going. Remember we have an SEC now that's, you know, let's just say we have a different SEC in place to have a different view on bitcoin. And I think that's part of what's going on here. I agree with Guy. I mean, and I'm long coinbase. I think base is underappreciated in terms of its infrastructure as a platform. And it's not just about them being the, you know, kind of the on ramp in terms of digital tokens. But I do think this is also coming on a week. I mean last week again the new school is all that's going on in digital. You know, the old school was the treasury market. That was under a lot of pressure last week and that's. They are related.
- [32:30]
Dan Nathan
Well, it's interesting going back years now, one of the main arguments for crypto is generally a store of value, right? And so that's kind of held up a lot of the other pillars of the bull case, really haven't. One of the biggest criticisms has been the use for criminal activity and grift and all that sort of stuff. And I'll just say this, I mean I think it's hard to ignore the fact that that's exactly what's going on in a large part of these meme coins and the NFTs and stuff that related to this family. When you think about the ability to kind of deregulate this sort of sort of stuff or give regulation that's favorable for this, it kind of makes the case for a lot of things that a lot of folks have been suggesting is not particularly, you know, on point. So to me I just think there is a level of this. And so if you think it's riskless buying at an all time high at $110,000 or whatever the heck it is, go back and look at the history of bitcoin. Usually when it gets to these levels it has a little problem with some resistance.
- [33:20]
Tim Seymour
Can you finish it? With what? Have at it. If you have at it.
- [33:25]
Dan Nathan
Right, Give me a moment. Have at it people.
- [33:29]
Melissa Lee
Coming up, a semi giant ready to report what to expect from Nvidia results tomorrow and whether the chip stocks rebound can continue. Don't go anywhere. Fast money's back into.
- [33:46]
Ben Emmons
The.
- [33:49]
Melissa Lee
Welcome back to fast money stocks rallying to kick off the shortened holiday week. The Dow jumping more than 700 points. The S&P up 2% both snapping four day losing streaks the Nasdaq led the gains today up nearly 2 and a half percent, shares of Coral Weave jumping another 20% even after the stock received its first downgrade on Wall Street. Analysts at Barclays moving to equal weight from overweight on the name, saying they're bullish long term but that short term upside is limited. Coreweave up more than 200% since debuting here on the NASDAQ two months ago. Shares of Apple also higher today, the tech giant snapping an eight day losing streak, the stock still down 20% this year and Tesla shares climbing nearly 7%. CEO Elon Musk posting on X over the weekend that he needs to be super focused on Tesla as well as X and his AI company X. The gains coming even after Tesla's European sales plunged by nearly 50% last month as Musk's political involvement hit the brand brand and some after hours action to bring you Shares of Octa lower despite beating top and bottom line expectations. The company didn't change its guidance for the year, noting macro uncertainties and shares a box higher after beating revenue estimates. Nvidia shares jumping more than 3% today as the chip giant gets ready to report earnings in less than 24 hours. And there's a lot to watch for in tomorrow's report. The company warned last month it will take a charge of up to five and a half billion dollars because of export controls on sending its H20 chip to China. The stock virtually flat this year. So what should we be watching in Nvidia earnings? A number of analysts on the street have already said that the impact from China and the export restrictions are not factored into consensus. So there's some expectation that that will be amiss there.
- [35:23]
Dan Nathan
Yeah, I was talking to Gene Munster about this earlier today from Deepwater Asset Management. He'll probably be on the show tomorrow night or sometime this week to talk about it. I mean you know this $15 billion in loss sales is probably the big thing that people are focused on and I think that's what you just said in general. I mean he did Jensen allude to that. But what does it mean for guidance going forward? And I think the knee jerk could be if you see lower than expected revenue guidance that people will sell. But then you might have them explain it on the call. So it's going to be one of those sorts of tricky calls. The one thing I'll just say is like here we are a month after a few weeks after all their major customers other than Open Air and X. I have given their or confirmed their Capex and it really wasn't a problem for Nvidia. People weren't expecting that, you know, greater than expected or even if it just come in softer, what they were kind of perceiving it might be going forward. So Nvidia is probably in a perfectly fine spot because they're not going to guide down. We can feel pretty comfortable about that. If there's some concern about whatever that $15 billion in lost sales is, well, that would be the thing that people are going to look past at some point.
- [36:23]
Melissa Lee
Do you think that China, the China business, Nvidia should be effectively written down to zero? In other words? Okay, in other words, will the export restrictions be enough to actually really damage their standing in China? They have to cede competition. I mean, in the past four years, they've gone from 95% market share to 50% market share in four years.
- [36:45]
Guy Adami
So let me rethink it a little bit. So you write it down to zero, then, you know, is what is, what.
- [36:50]
Melissa Lee
Is the value was $90.
- [36:52]
Guy Adami
Is that right down to zero or we hear now. So I think, you know what, that's fair. And I don't think, I don't think $135 is the right price. But he's also, he, the CEO has been speaking seemingly nonstop for the last three weeks. So just about anything Gen Genesis come.
- [37:07]
Tim Seymour
Up with that, I can't take credit but I'm the only one using it. So I'm going to, you know, take it. I'm the guy right now on Gen Sanity.
- [37:14]
Guy Adami
My sense is anything you wanted to glean, you've been able to do over the last last couple of weeks. So to me it comes down to what's going to, what are they going to talk about in terms of the back half of this year for margins? They promised they'd reaccelerate. We need to hear that.
- [37:25]
Karen Finerman
Yes. You mentioned tariff and export controls. I think drilling into this $15 billion number, I think if it's all taken up front and made very clear that this is essentially a sunken cost, then I think it speaks to the fact that they don't think that there's going to be any wiggle room in terms of tariff and export controls. I think any leniency in that, in that regard forward lends one to believe that perhaps that they think that this thing might oscillate back and forth. I think ultimately that's a, that's a positive for the stock.
- [37:51]
Melissa Lee
All right. Do not miss Jim Cramer's exclusive interview with Nvidia CEO Jensen Huang. Jen sanity tomorrow, dig into the chip lines. Results, that's On Mad Money, 6:00pm Eastern Time right here on CNBC. Coming up, shares of Novo Nordisk jumping in today's session and guys flagging some action in the technicals. Why he's watching that chart when Fast MONEY returns. Welcome back to fast money. Novo Nordisk surging 4 1/2% today and outperforming the broader health care sector. The stock seemingly feeling some relief from President Trump's pause on EU tariffs with shares now trading at two month highs. Guy has been watching some key levels.
- [38:32]
Guy Adami
Well, I have been and I've been wrong for so long, but it finally feels like bottom has been put in. We're in this downtrend for the last six months, maybe a little bit longer that seemingly has been finally broken to the upside. And you know, nothing can change in this stock in terms of fundamentals. And you could sort of levitate up to 8590 very easily just to sort of retrace the levels we saw, you know, probably late last year. This reminds me a little bit of, if I may, Boeing, where you know, at a certain point all the bad news is sort of priced in and you have these sort of stealth rallies, I think. So what Novo's setting up for now.
- [39:05]
Melissa Lee
Now.
- [39:05]
Tim Seymour
Yeah, I'm long the stock and I got long in the last few days. I do think it's been a story that's been over accentuated. I think some of the data we got out, the phase two trial data we got in, was it December, maybe it was actually in February. I think the stock's been punished again on the same news many different times and ultimately we forget that they really are the number one in terms of market share. Maybe pricing is an issue going forward because it seems to be with CVS and Cigna and some other people that are now offering it in a lower price frame. I like it.
- [39:36]
Melissa Lee
Coming up, a slam dunk investment. Her own Karen Feinerman joins us next to talk her new stake in defending WNBA champions the New York Liberty. And the big names joining her on the roster. That is next, more Fast Money into. Welcome back to FAST money. The defending WNBA champion New York Liberty adding some big financial backers to its roster. A new investor group led by Alibaba co founder Jack Ma, our very own Karen Feinerman, along with supermodel model Carly Kloss, Gabrielle Rubenstein, Samantha Lasri, and the president and CEO of Tia Fessinda Brown Duckett. The capital infusion reportedly values this franchise at $450 million a record valuation for women's sports team. Karen joins us now to break down this deal. We clap her in congratulation.
- [40:33]
H
Thank you.
- [40:33]
Melissa Lee
First of all, thank you. We know you've been a fan for a very long time. You're involved with, with the wnba.
- [40:40]
H
Yes.
- [40:40]
Melissa Lee
Why now? The Liberty? Why now? You are a value investor. So what do you see in the team?
- [40:46]
H
Well, I see the rise of women's sports. I mean, primarily, they're poster children for the rise of women's sports. Just what's happened at the wnba, but what's happened at the Liberty? I mean, you have ticket sales up, you know, 66% and you have, you know, attendance up, same sponsorships and viewership up, you know, the playoffs, 130%, year over year growth. So I think there's an ascendancy that has a ways to go as a value investor. You know, it's a, it's a, it's a trophy franchise and priced like a trophy franchise.
- [41:21]
Melissa Lee
Clara Wu Tsai was quoted in Bloomberg as saying that by 2030, she expects, expects the Liberty to be the first $1 billion women's sports franchise. Do you see that? That's a big number.
- [41:32]
H
It's a big number. But I think that, you know, it's not, it's not out of the question where we are right now, 10 years from now. I mean, just the pace of growth here is extraordinary and it's only getting better. There are more teams, there's more talent, there's more interest, there's more interest in college basketball, women's sports, more broadly. A lot to love here.
- [41:52]
Tim Seymour
So, first of all, congrats, because you've been early on this trade, you've been talking about this, you know, even, even before, really, I felt like we were hearing about Caitlin Clark every day you were involved here. And my question does go to how do you impute the numbers coming out of the ncaa, the television audience for their national championship game where they exceeded the mail? How do you impute that into the financial space in your pitchbook? In other words? Maybe you don't. I'm just, But I'm thinking out loud here. And again, the liberty trading at 1/10, maybe 1/12 of the multiple of the Celtics. We've had that chat here. At some point. TV dollars are what this is all about. And it seems to me that women's sports, especially on the collegiate level, collegiate basketball level, are sitting at the main table right now.
- [42:35]
H
They are. I mean, I think that there's still a ways to go. We have a new deal, new Media deal for the wnba. But I think that the media, right. Will continue to grow because of that growing audience. It's not just ncaa. They go with those NCAA stars into the wnba and so that's sort of a nice flywheel to have. And just the level of play also. You guys have seen a game, you've seen, right?
- [43:00]
Tim Seymour
Amazing, great stuff.
- [43:01]
H
It is. They do an extraordinary job. Clara and Joe Tsai took this team from the Westchester county center to the championship in the Barclay Center. It's an extraordinary transformation.
- [43:11]
Guy Adami
Well, they're lucky to have you. Expansion. There are 13 teams in the league now.
- [43:15]
H
They're growing.
- [43:16]
Tim Seymour
They're growing to 13.
- [43:17]
Guy Adami
So what is the expansion thoughts? I mean, could this be a 20 team league in 5 years?
- [43:23]
Tim Seymour
I don't know.
- [43:24]
H
Maybe not, maybe not quite that big. But the demand, I mean if you think about the number of groups that were trying to get that last available franchise is enormous. And so I think that they have a great product to sell a franchise.
- [43:38]
Dan Nathan
So. Yeah. So going back to 2002, with Gross back, put together an investor group. They bought the Celtics for $360 million. At the time, that was a record for a franchise that just sold it for $6.1 billion. Why wouldn't you want to keep some sort of scarcity, as you know, the league and not bring 20 teams into the league, that sort of thing? Isn't that how you could see values balloon over the next couple of decades?
- [43:58]
H
I'm sorry, if you do bring Scaly.
- [43:59]
Dan Nathan
Don'T bring him in. Let's have a little scarcity, these sorts of things. Just to Tim's point, I mean, and you just said that the TV rights are going to be huge. I'm just curious how you think of it a couple decades out. Are these going to be multibillion dollar franchises?
- [44:11]
H
That wouldn't shock me if they were multibillion dollar franchise. But this is obviously something. I'm not trading around this, right? Yeah, it's.
- [44:18]
Dan Nathan
Celtics were listed at one point. Weren't they trading like publicly?
- [44:20]
H
Were they where you could buy a certificate? I think, yeah.
- [44:24]
Melissa Lee
Okay.
- [44:25]
Karen Finerman
So Karen, speaking about sports in general, we've seen, you know, a proliferate proliferation of private equity kind of flowing into. We've seen the NFL now, wnba, NBA. Can you kind of speak to some of the merits of that? I think some of the, the basketball purists might push back, but can you speak to some of the merits that are actually associated with that?
- [44:42]
H
Well, it's money. It's a lot of money. Right. And I think There are caps on the private equity, the amount that private equity can own. And so I think control will not go to private equity. Maybe that will change, I don't know. But I don't know. There's just so much money in private equity and there's so much, so much to do in sports now that I mean this is a marriage made money looking for, right, looking for a place to go.
- [45:10]
Melissa Lee
And speaking of the money that the Liberty has raised now, part of that's going to be for a new training facility which will in theory attract new players, better players even than what we have on the roster right now.
- [45:20]
H
I mean, Claire and Joe want to make this the state of the art, most premier facility that the players, I mean they take into account every interest. You know, they have a beauty salon, they have a, you know, childcare, they have great, great trainers and the facilities themselves and the weight room and all of that. Extraordinary.
- [45:39]
Melissa Lee
They run it like a real business. Like a.
- [45:40]
H
It is a huge, real business.
- [45:42]
Melissa Lee
Congratulations once again, Karen.
- [45:44]
H
Thank you.
- [45:44]
Tim Seymour
Clap her out.
- [45:46]
Melissa Lee
We'll see you on the desk tomorrow. And for more on the intersection of sports business and investments, head on over to CNBC.com sport and join the newsletter to get the latest on deals, valuations and much more. Up next, final trades, final trade time.
- [46:08]
Tim Seymour
Tim Seymour Here's a mega trade ASML semiconductor equipment and I think it's coming back.
- [46:16]
Karen Finerman
Coming out of a rough earnings and rolling out a bitcoin pilot program.
- [46:21]
Melissa Lee
Locke, look there Dan you boy.
- [46:24]
Dan Nathan
I think you start selling some tech here.
- [46:26]
Karen Finerman
XLC is the way to do it guys.
- [46:28]
Guy Adami
Novo comes out.
- [46:29]
Melissa Lee
Nvo thanks for watching Fast Mad Money Jim Cramer starts right now. All opinions expressed by the Fast Money participants are solely their opinions and do not reflect the opinions of CNBC, NBCUniversal, their parent company or affiliates, and may have been previously disseminated by them on television, radio, Internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information the Fast Money participants consider reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such. To view the full Fast Money disclaimer, please visit cnbc.com fastmoneydisclaimer.
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