CNBC's "Fast Money" Podcast Summary

Episode: The Next Great Rotation… And Wall Street Sours on Coreweave
Release Date: July 8, 2025
Host: Melissa Lee
Participants: Karen Feinerman, Dan Nathan, Guy Adami, Danny Moses, Chris McGrady

1. Market Overview and Bank Rotation

The episode opens with a discussion on the potential next major market rotation, focusing on the significant movement away from large financial institutions toward other sectors. The host, Melissa Lee, outlines the day's agenda, emphasizing a "big bank breakdown" and questioning whether these financial giants have become overvalued as the earnings season approaches.

Key Points:

• Rotation from Big Banks: Capital is flowing out of major banks like JP Morgan, Bank of America, and Goldman Sachs, which are experiencing substantial losses, especially after HSBC's downgrade. Conversely, traditionally struggling sectors such as small caps, healthcare, and airlines are gaining traction.

• Valuation Concerns: Guy Adami notes, "Nobody cares about valuation until the market cares about valuation" (02:10). He highlights that while institutions like JP Morgan have soared to high multiples relative to book value, there's speculation about whether these valuations are sustainable.

• Profit-Taking Ahead of Earnings: Danny Moses expresses confidence in staying invested in banks despite recent runs, citing potential efficiencies from AI integration and margin improvements. He states, "I still believe in the longer term story over time" (05:25).

• Sector Health: Karen Feinerman underscores the health of the market rotation, asserting, "I actually think it's pretty healthy to get into other sectors" (03:45), emphasizing the benefits of diversifying investments beyond the overextended big banks.

2. Tariff Announcements and Trade Policy

The conversation shifts to recent trade policy developments, particularly President Trump's announcement of a 50% tariff on copper imports and potential tariffs on pharmaceuticals.

Key Points:

• Copper and Pharmaceuticals Tariffs: Megan Casella reports on the administration's move to impose significant tariffs, which are expected to impact various industries reliant on these materials. Melissa Lee questions the implications, to which panelists express skepticism about the effectiveness and potential backlash of such tariffs.

• Trade Relations with the EU and China: Discussions reveal strained negotiations with the EU, with the President indicating dissatisfaction with the current state of talks. Megan Casella notes, "The President said today there was a quote, let me be clear, a letter means a deal" (19:37), suggesting that the letter's issuance might not bode well for future agreements.

• Market Reaction: Chris McGrady criticizes the administration's approach, labeling the tariff threat as "a bit of a joke" (19:37) and warns of potential inflationary pressures resulting from these policies.

3. Corporate Leadership Changes at Apple

A significant segment covers the leadership shuffle at Apple, with COO Jeff Williams stepping down and being replaced by Sabi Khan.

Key Points:

• Leadership Transition: Jeff Williams is set to retire at the end of the year, continuing to oversee Apple's design and health divisions until then. This marks the second senior leadership departure at Apple within a year, raising questions about the company's strategic direction.

• Succession Planning: Dan Nathan discusses how this move is part of Apple's "long plan succession," indicating a structured approach to leadership changes. He reflects on the historical pattern where operational roles often lead to CEO positions, as seen with Tim Cook's rise.

• Supply Chain Challenges: The timing of Williams' departure coincides with Apple's efforts to adjust its supply chain in response to tariffs, particularly shifting production to India and Vietnam to mitigate costs. Melissa Lee probes whether this indicates a strategic pivot ahead of upcoming challenges.

Notable Quote: “This is the second member of Tim Cook's senior leadership team to step down within the past year.” (22:04)

4. Energy Sector Performance

The podcast highlights a robust performance in the energy sector, with the Vaneck Oil Services ETF experiencing its best day in months.

Key Points:

• ETF Surge: The Vaneck Oil Services ETF jumped nearly 5%, driven by significant gains in companies like Transocean, Expro, and Weatherford, each up over 8%. This rally occurred despite OPEC's announcement to increase oil output next month.

• Valuation Appeal: Guy Adami remarks, "Valuations are absolutely compelling for many of these companies" (26:25), pointing out that despite the sector's small weight in the S&P 500, attractive valuations are drawing investor interest.

• Historical Context: Karen Feinerman notes the sector's long-term underrepresentation in the market, now hovering below 4% of the S&P 500, and identifies recent mergers and acquisitions as catalysts for the recent uptick.

Notable Quote: “This sector has been 7% of the S&P over the course of its life and we're currently I think actually under 4% still.” (27:11)

5. Sun Valley Conference Insights

The episode previews discussions from the Allen & Company Sun Valley Conference, where media moguls and tech leaders convene to discuss AI, M&A, and regulatory impacts.

Key Points:

• Key Attendees: Leaders like Warner Brothers Discovery CEO David Zaslav, Disney CEO Bob Iger, and OpenAI CEO Sam Altman are present, discussing their strategies and the future of AI integration.

• AI and Regulation: Sam Altman expresses a desire for smart federal legislation on AI, indicating an interest in collaborative regulatory frameworks rather than fragmented state-level approaches.

• M&A Activity: Discussions hint at potential mergers and acquisitions, especially in the wake of company splits and strategic realignments within major media and tech firms.

Notable Quote: “Sam Altman said he's not concerned about hiring top talent away from Meta and expects to see Mark Zuckerberg at Sun Valley.” (39:18)

6. Core Weave Stock Analysis

A detailed analysis of Core Weave, a cloud infrastructure company, is provided through an interview with Citi’s Tyler Radke.

Key Points:

• IPO Lockup Expiration: Tyler Radke warns that the upcoming expiration of Core Weave's IPO lockup could introduce significant selling pressure, as approximately 85% of Class A shares will be available for trading (32:43).

• All-Stock Deal Concerns: The recent all-stock acquisition deal with Core Scientific, priced significantly above Core Scientific's market value, raises questions about the sustainability and financial engineering behind the move (33:54).

• Downside Risks: Radke points out that despite positive revenue forecasts, the combination of increased share volume and unusual options pricing suggests potential near-term downside for Core Weave.

Notable Quote: "The options market is actually suggesting that the forward price for Core Weave in October is $120." (33:54)

7. Trades and Stock Performance Highlights

The podcast concludes with a recap of the day's stock performances and strategic trades by panelists.

Key Points:

• Moderna and Intel Gains: Shares of Moderna surged nearly 9%, marking the best day since April, while Intel saw an increase of over 7%, continuing a 17% rise over the past month.

• Alibaba's Bounce: Despite recent sell-offs and trade tensions, Alibaba shares gained almost 2%, though the stock remains below its 200-day moving average.

• Energy Sector Trades: Danny Moses highlights energy stocks as part of his portfolio strategy, emphasizing the sector's undervaluation and potential for growth.

Notable Quote: "Greg said, 'Moderna is the best performing name in the S&P 500 today.'" (30:13)

Notable Quotations

• Guy Adami (02:10):
  "Nobody cares about valuation until the market cares about valuation."

• Danny Moses (05:25):
  "I still believe in the longer term story over time."

• Dan Nathan (10:39):
  "Great companies trade at good valuations permanently."

• Chris McGrady (19:37):
  "They're not going to let it happen again. And maybe they're playing around a little bit because they think they have a little leeway with the stock market back at up to, you know, at prior all time highs, but it's just not constructive."

• Danny Moses (35:33):
  "We would need three or four more in a row. Just as good as this to get back to break even this year."

Conclusion

This episode of CNBC's "Fast Money" delves into significant market shifts, particularly the rotation away from major banks into more undervalued sectors such as small caps, healthcare, and energy. The discussion highlights concerns over high valuations in the financial sector and explores the potential sustainability of these trends ahead of the earnings season. Trade policy developments, especially new tariffs, are examined for their impact on global markets and specific industries. Leadership changes at Apple signal possible strategic pivots in response to supply chain challenges. Additionally, the episode provides an insightful analysis of Core Weave's stock dynamics, underscoring the risks associated with corporate maneuvers and market perceptions. With previews of key insights from the Sun Valley Conference, the podcast offers a comprehensive overview of current financial landscapes, strategic investments, and future market expectations.