CNBC's "Fast Money" Podcast Summary
Episode: Stocks Wrap Up A Positive Week.. And How Pharma Will Fare Under Tariffs
Host: Melissa Lee & Roundtable of Top Traders
Release Date: April 25, 2025
1. Market Performance and Tech Rally
Overview:
The episode kicks off with a discussion on the strong performance of major stock indices over the week. The NASDAQ led the surge, climbing over 6%, while the S&P 500 and Dow Jones Industrial Average also posted significant gains. This rally was primarily driven by a rebound in the technology sector, despite looming earnings reports from major tech giants.
Key Highlights:
- NASDAQ: Up nearly 7% for the week, rebounding over 17% from its 52-week low three weeks prior.
- S&P 500 & Dow: Both indices finished the week in the green, overcoming early session losses influenced by tariff negotiations.
Notable Quote:
“The NASDAQ is now positive in April, putting it on pace to break a two-month losing streak.”
— Karen Firestone [00:58]
2. Upcoming Earnings Reports from Tech Giants
Overview:
With over $10 trillion worth of companies set to report earnings next week, anticipation is high. Key players include Apple, Microsoft, Amazon, and Meta. The panel debates whether the current momentum will sustain or if these reports might lead to a market correction.
Key Highlights:
- Apple, Amazon, Microsoft, Meta: Expected to influence market directions based on their earnings outlooks.
- Concerns: Potential for conservative guidance and the impact of tariffs on future earnings.
Notable Quotes:
“We have some $10 trillion worth of companies reporting next week, headlined by Apple, Microsoft, Amazon, and Meta.”
— Melissa Lee [02:37]
“But next week's reports keep the momentum going. Are we in for a rude awakening?”
— Courtney Garcia [02:37]
3. Impact of Tariffs on the Pharma Industry
Overview:
A significant portion of the discussion centers on the proposed 25% tariffs on pharmaceuticals and their potential to increase U.S. drug costs by $51 billion annually. The panel explores how these tariffs might reshape the pharmaceutical landscape and identifies investment opportunities within the sector despite the challenges.
Key Highlights:
- Cost Implications: Tariffs could result in a near 13% hike in drug prices.
- Investment Opportunities: Despite potential overhang, stocks like Pfizer, AbbVie, Roche, AstraZeneca, and King Pharmaceuticals present compelling investment cases.
- Research Renaissance: Advancements in therapeutic categories such as cancer, GLP1s, immunology, and kidney disease are fostering optimism in the pharma sector.
Notable Quotes:
“A 25% tariff on pharma could add $51 billion a year to U.S. drug costs, translating to a near 13% hike in drug prices.”
— Karen Firestone [28:33]
“Within that, I see a very exciting, what I've called a research renaissance for the drug industry.”
— Len Yaffe [32:21]
4. Tesla and Alphabet’s Self-Driving Ventures
Overview:
The surge in Tesla shares by nearly 10% was attributed to anticipated deregulation of full self-driving technology, paving the way for faster rollout of robo-taxis. Similarly, Alphabet’s Waymo division reported a significant increase in ride offerings, hinting at potential future offerings for personal ownership.
Key Highlights:
- Tesla: Best week since November, driven by hopes of deregulation and advancements in self-driving technology.
- Alphabet (Waymo): Reports an astronomical rise in ride offerings, with future plans to offer personal ownership of self-driving cars.
Notable Quotes:
“Tesla shares surged nearly 10% today, locking in their best week since the election.”
— Karen Firestone [25:18]
“Waymo, its self-driving taxi company, may offer cars for personal ownership in the future.”
— Courtney Garcia [25:53]
5. Federal Reserve and Policy Shifts
Overview:
Former Fed Governor Kevin Warsh made headlines with his critiques of the Federal Reserve’s dependency on data-driven decision-making. His comments come amidst speculation about his potential nomination as the next Fed Chair, especially in the context of President Trump’s criticisms of current Fed policies.
Key Highlights:
- Warsh’s Critique: Believes the Fed has overstepped its independence, relying too heavily on data dependence.
- Potential Nomination: Warsh is viewed as a frontrunner for the next Fed Chair, raising discussions about future policy directions.
- Market Impact: Concerns over how shifts in Fed policy might influence market valuations and interest rates.
Notable Quotes:
“Warsh told a conference today that the Fed has gone beyond its remit and undermined its own claims to independence.”
— Eamon Jabbers [18:24]
“I think the pivotal point of this week was when Governor Warsh came out and said that if the jobs market starts to fall off a cliff, there'll be more cuts and they'll be quicker than people think.”
— Steve Grasso [05:57]
6. Advertising Strategies Amid Tariff Pressures
Overview:
Automakers, among other sectors, are adjusting their advertising strategies to mitigate the impact of tariffs. By promoting "buy now" campaigns, they aim to accelerate sales before potential price hikes take effect.
Key Highlights:
- Automakers’ Tactics: Ford, Hyundai, and Nissan are locking in prices and offering discounts to encourage immediate purchases.
- Advertising Shift: Increased urgency in messaging to drive sales through existing inventory.
- Industry Impact: Negotiations over ad sales commitments are expected to be prolonged, with brands seeking flexibility amidst uncertainty.
Notable Quotes:
“Ford and Hyundai are promoting that they've temporarily locked in prices to reassure customers.”
— Julia Borson [38:22]
“The goal is to pull forward as many sales as possible and sell through the existing inventory.”
— Julia Borson [38:22]
7. Cryptocurrency Market Movements
Overview:
Bitcoin experienced a significant surge, crossing the $95,000 mark for the first time since early March. The panel analyzes the factors driving this comeback and compares Bitcoin’s trajectory to that of gold.
Key Highlights:
- Bitcoin Surge: Up over 12% this week, signaling renewed investor interest.
- Comparison with Gold: While gold shows signs of cooling off, Bitcoin continues its upward trend.
- Technical Analysis: Discussions on key support levels and potential for continued growth if momentum persists.
Notable Quotes:
“Bitcoin surging more than 12% this week, crossing above $95,000 mark today for the first time since early March.”
— Karen Firestone [29:05]
“Right now, you want to see if it could bounce out of that zone.”
— Steve Grasso [30:42]
8. Audience Q&A: Investment Strategies Amid Volatility
Overview:
The panel addresses questions from listeners on navigating market volatility and investment strategies during uncertain times. Emphasis is placed on staying the course, diversification, and focusing on long-term growth.
Key Highlights:
- Staying the Course: Avoiding market timing and maintaining a diversified portfolio.
- Long-Term Focus: Encouraging young investors to invest in growth-oriented assets like ETFs.
- Risk Management: Selecting companies with strong balance sheets to withstand market fluctuations.
Notable Quotes:
“It is nearly impossible to market time. You want to have companies with good balance sheets that can ride out the storm.”
— Courtney Garcia [42:17]
“Ultimately, how should you be investing for young people? Part of it should be you need to be diversified but you need to be reaching for growth.”
— Tim Seymour [43:00]
9. Final Trades and Investment Picks
Overview:
In the closing segment, each panelist shares their top investment picks based on the week’s discussions and current market conditions.
Key Highlights:
- Tim Seymour: Endorses Google for its strong cloud business and core search operations.
- Courtney Garcia: Recommends AbbVie and Lilly for their robust pipelines and dividend yields.
- Melissa Lee: Advises holding off on Apple until post-earnings reports.
- Steve Grasso: Suggests investing in GM, citing its resilient market position.
Notable Quotes:
“I think Google is very good.”
— Steve Grasso [44:32]
“I would hold tight on Apple until post-earnings reports.”
— Melissa Lee [44:41]
“I’m going to pick GM.”
— Steve Grasso [44:50]
10. Conclusion
Overview:
Melissa Lee wraps up the episode by emphasizing the importance of watching bond markets for indicators of future economic and policy trends. The panel remains optimistic about the market’s ability to navigate through uncertainties, particularly with the ongoing tariff negotiations and advancements in the pharmaceutical and technology sectors.
Notable Quotes:
“We can see how much the markets want to see less regulation and get past these tariffs. You can see how much the markets want to see that they will put a price to that.”
— Melissa Lee [26:46]
Note: The opinions expressed in this summary are solely those of the "Fast Money" participants and do not reflect CNBC’s views. Always conduct your own research or consult a financial advisor before making investment decisions.