CNBC's "Fast Money" Episode Summary – May 29, 2025 Host: Melissa Lee

1. Reinstatement of Trump's Tariffs

Overview:
The episode delves into the latest developments surrounding President Trump's tariff policies. A federal appeals court has temporarily reinstated tariffs that were previously struck down by a lower court, allowing them to remain in effect until June 5, 2025. This decision has significant implications for ongoing trade negotiations and the broader economic landscape.

Key Discussions:

• Court Ruling and Implications:
  Megan Casella explains, "The Court of Appeals for the Federal Circuit granted an emergency stay, allowing the tariffs to remain in place temporarily" (00:31).

• Administration's Stance:
  Megan Casella highlights the administration's resilience, stating, "They are very much clear-eyed about the fact that they have other options if this one does not move forward" (03:22).

• Future of Tariffs:
  The conversation touches upon potential pathways the administration might pursue, including Section 232 and Section 301 tariffs, each with its own set of limitations and timelines (04:43).

• Market Reaction:
  Despite the uncertainty, Dan Nathan observes, "The market sort of hung in there as well as it did" (05:38), indicating a resilient but cautious investor sentiment.

2. Impact on the Markets

Overview:
The reinstatement of tariffs amidst economic uncertainties has added another layer of complexity to the markets. Panelists discuss how this development influences investor confidence and market dynamics.

Key Discussions:

• Increased Uncertainty:
  Karen Feiderman notes, "This is something that I think is going to stay pretty volatile if you have the courts going back and forth" (06:03).

• Consumer Spending:
  Despite challenges like tariffs and job uncertainties, Melissa Lee points out, "the consumer is still spending," suggesting underlying economic strength (00:43).

• Market Resilience:
  Tim Seymour remarks, "It's almost as if markets don't seem to care about tariffs," highlighting a possible disconnect between policy changes and market reactions (07:45).

3. Retail Earnings Highlights

Overview:
The episode reviews the latest earnings reports from major retail companies, analyzing their performance in the context of current economic conditions and tariff impacts.

Key Companies Discussed:

• Dell Technologies:
  Christina Parts Nevelis shares, "Dell is projecting a massive $7 billion in AI server shipments this quarter" (22:17). Despite this, the company maintains a conservative full-year revenue outlook due to lagging PC refresh cycles.

• Costco Wholesale:
  Megan Casella highlights, "Comparable sales rose about 8%, and e-commerce sales jumped about 16%" (31:05). Costco's strategy includes rushing shipments ahead of tariffs and diversifying sourcing for its private label products.

• Gap Inc. and American Eagle:
  Both companies experienced mixed results, with Gap reaffirming its full-year guidance despite missing revenue expectations, and American Eagle missing revenue targets, leading to stock declines (30:15).

• Best Buy:
  Melissa Lee reports, "Shares of Best Buy getting hit after results this morning down more than 7%," due to profit outlook cuts stemming from tariffs (30:15).

4. Boeing's Production Plans

Overview:
Boeing made headlines with its CEO Kelly Ortberg outlining ambitious plans to ramp up 737 Max production amidst ongoing safety concerns and regulatory challenges.

Key Discussions:

• Production Goals:
  Kelly Ortberg stated, "I hope to have 737 Max production hit 47 planes a month by the end of the year" (27:33).

• Market Reaction:
  These announcements contributed to Boeing's stock reaching a 16-month high, reflecting investor confidence in the company's turnaround efforts (27:33).

• Customer Confidence:
  Southwest Airlines CEO Bob Jordan expressed optimism, noting improvements in 737 Max quality and the desire for increased deliveries (27:33).

5. Trade Relations with China

Overview:
The episode features insights from CNBC senior correspondent Eunice Yun, who provides an on-the-ground perspective of the strained US-China trade relations and its impact on global markets.

Key Discussions:

• Trade Tensions Escalate:
  Eunice Yun explains, "China has been taking steps that really seem to be threatening the possibility of having a greater trade negotiation" (12:25). This includes restricting chip design software sales and pausing exports for Chinese planemakers.

• Chinese Retaliation:
  Eunice Yun highlights potential Chinese retaliatory actions, such as export controls on rare earths and legal actions against US chip curbs, adding to the uncertainty (15:53).

• Consumer Sentiment in China:
  Despite economic weaknesses, Chinese consumers show signs of resistance against US brands, influenced by online narratives and economic concerns (14:24).

6. Tesla and Elon Musk Developments

Overview:
Elon Musk's strategic shifts have significant implications for Tesla's stock performance and competitive positioning in the electric vehicle (EV) market.

Key Discussions:

• Musk's Focus on Tesla:
  Melissa Lee reports, "Elon Musk announcing his time at Doge is coming to an end, raising hopes of Tesla investors" (41:00).

• Stock Performance:
  Despite positive developments, Tesla shares remain volatile, down over 11% for the year, reflecting investor apprehensions about broader market conditions (41:35).

• Competitive Landscape:
  Panelists discuss the intensifying competition in the EV space, emphasizing that challenges to Tesla's share price are more industry-specific rather than stemming from Musk's management style (42:19).

7. Starbucks Downgrade

Overview:
Starbucks faces scrutiny as analysts downgrade the company's outlook, citing rising labor costs and increased competition.

Key Discussions:

• Analyst Downgrade:
  Megan Casella mentions, "Shares of Starbucks getting roasted after a downgrade at TD Cowan" (44:27). The downgrade reflects concerns over labor investments affecting profitability.

• Consumer Perception:
  Proprietary survey data indicates consumers view Starbucks as overpriced, impacting the company's value proposition (45:00).

• Market Impact:
  The downgrade has led to a nearly 8% decline in Starbucks stock for the year, signaling potential investor caution (44:27).

8. Final Trades and Recommendations

Overview:
In the closing segment, panelists share their final stock trades and investment recommendations based on the day's discussions and market insights.

Key Recommendations:

• Nike (NKE):
  Tim Seymour advocates for buying Nike, emphasizing its resilience amid market fluctuations (40:24).

• Wal-Mart (WMT) vs. Costco (COST):
  Guy Adami expresses a preference for Wal-Mart over Costco due to valuation concerns but acknowledges the strengths of both retailers (33:26).

• Abercrombie & Fitch (A&F):
  Despite recent volatility, Guy Adami views Abercrombie as undervalued with a strong balance sheet, recommending it as a buy (39:30).

Conclusion

The May 29, 2025 episode of CNBC's "Fast Money" covered significant ground, from the reinstatement of Trump's tariffs and their market implications to detailed analyses of retail earnings and corporate strategies amidst economic uncertainties. The discussions underscored the delicate balance investors must navigate in a landscape marked by policy shifts, global trade tensions, and evolving consumer behaviors. Panelists provided actionable insights and stock recommendations, emphasizing the importance of adaptability and informed decision-making in today's volatile markets.

Notable Quotes:

• Megan Casella:
  "The court said that until June 5, they're giving the plaintiffs some time to respond here." (01:51)

• Dan Nathan:
  "It adds another level of uncertainty to an already uncertain environment." (05:38)

• Karen Feiderman:
  "The administration has been adamant all day today that they say they've been hearing from foreign countries that trade negotiations continue to be ongoing." (04:43)

• Stephen Yalof (Tanger CEO):
  "Customers want more diversity of product when they come and shop in our centers." (34:51)

• Kelly Ortberg (Boeing CEO):
  "We will resume deliveries to China next month." (27:33)

Note: All timestamps refer to the podcast's runtime for easy reference.