Reacting to Trump’s Call with Xi 6/5/25

Summary

Halftime Report: Reacting to Trump’s Call with Xi (June 5, 2025)

Introduction In the June 5, 2025, episode of CNBC's Halftime Report, host Scott Wapner delves into the significant geopolitical and economic developments impacting the markets. The primary focus centers on the recent phone call between U.S. President Donald Trump and Chinese President Xi Jinping, as well as the escalating public dispute between President Trump and business magnate Elon Musk. This detailed analysis provides listeners with insights from top investors and Washington correspondents, offering a comprehensive understanding of the potential market implications.

Trump’s Call with President Xi: Analyzing the “Deal” At [01:00], Scott Wapner opens the discussion by highlighting President Trump's announcement of a productive phone call with President Xi Jinping. Trump asserted, “We had a very good talk. We straightened out some complex stuff. We have a deal, as you know, we have to make sure everyone understands what the deal is” (01:00). This declaration raised eyebrows, especially since just a day prior, Trump had labeled negotiations with Xi as challenging.

Eamon Javers, CNBC’s Washington correspondent, provides context at [02:48], explaining that the “deal” likely pertains to the existing tariffs on China. He states, “What Trump is saying is that the deal has already been struck. I put the tariffs on and that's the deal. And then if we take the tariffs off at some point after this pause, you know, that will be a new deal” (02:48). Despite the positive rhetoric, Javers emphasizes the lack of concrete details: “We didn't get any specifics. Nothing other than a sense that there's going to be another high-level meeting” (02:48).

The discussion underscores the anticipation Wall Street holds for tangible outcomes from such diplomatic engagements. The mutual invitations for both leaders to visit each other’s countries suggest a move towards warmer diplomatic relations, albeit without immediate market relief due to the absence of explicit agreements.

Trump vs. Elon Musk: A Public Fracture Unfolds Shifting focus, Scott Wapner addresses the growing tension between President Trump and Elon Musk. At [04:17], Wapner notes, “The market took a bit of a turn on all of that because Tesla shares were near the lows of the day, down some 6%” (04:17). This downturn reflects the market's sensitivity to high-profile disputes, especially involving influential figures like Musk.

Eamon Javers elaborates on the deteriorating relationship at [05:08]: “Elon Musk has been a close ally, even visiting the Oval Office multiple times. Now, with Musk publicly criticizing the tax bill and the EV mandate cuts, it's clear there's a significant rift” (05:08). Musk’s aggressive stance on social media, particularly his tweets refuting Trump’s claims about his involvement in the bill, amplifies the public nature of their fallout.

Market Reactions and Expert Insights The episode extensively covers the market's response to these geopolitical and corporate developments. At [06:51], Scott Wapner observes, “We are green across the board, but Tesla's down some 6%... NASDAQ is weaker” (06:51). This indicates a mixed market sentiment where overall indices remain buoyant, yet vulnerabilities emerge from specific sectors like technology.

Investment committee members, including Brian Belsky and Bill Baruch, provide their perspectives:

• Brian Belsky at [07:42]: “I think longer term it's very, very good. We're getting closer and closer” (07:42) emphasizes optimism about eventual positive outcomes from the Trump-Xi discussions, despite short-term volatility.

• Bill Baruch at [08:30]: “I think there was some levitation this week in anticipation of that, but we do need to hear more facts” (08:30) reflects the cautious stance, acknowledging initial market optimism yet calling for more substantive information to sustain confidence.

Sector Highlights: Technology Leads the Way A significant portion of the episode is dedicated to analyzing sector performance, particularly the technology sector's impressive gains. At [13:06], Scott Wapner highlights, “Technology, Brian, up 10%” (13:06), signaling robust growth driven by innovations and strong earnings.

Brian Belsky elaborates at [14:17], “Tech is here to stay and the growth is real” (14:17), underlining the sector's foundational role in driving market resilience. He notes that the focus has broadened beyond the so-called “Magnificent Seven,” encompassing a wider array of tech companies contributing to sustained growth.

High-Profile IPOs and Stock Movements The episode also covers notable market events, such as the highly anticipated IPO of Circle. At [12:24], Wapner mentions, “Circle is up 144% in its very first moments of trade” (12:24), highlighting the enthusiasm surrounding innovative financial technologies.

Investment committee members discuss strategic stock movements:

• Brian Belsky talks about adjusting portfolios with investments in cybersecurity firms like Check Point, citing their strong earnings growth prospects compared to peers.

• Stephanie Link shares her strategy of investing in secular growth stocks within healthcare, emphasizing companies like Intuitive Surgical for their robust earnings growth and market position.

Upcoming Events and Earnings Reports As the episode progresses, attention shifts to upcoming earnings reports and economic indicators. Scott Wapner mentions Broadcom’s significant earnings report, anticipating its impact on market sentiment. The anticipation around these reports underscores the continuous interplay between corporate performance and market dynamics.

Publicized Political Disputes and Their Implications Towards the end, the focus returns to the Trump-Musk controversy. At [23:04], Eamon Javers describes the escalating public dispute: “Elon Musk posting on X his social media platform... Without me, Trump would have lost the election” (23:04). This contentious exchange not only affects personal reputations but also carries broader implications for investor confidence and market stability.

Final Thoughts and Closing Remarks In wrapping up, Scott Wapner emphasizes the ongoing volatility and the need for investors to stay informed: “This really is an incredible developing story” (27:42). The episode concludes with a reminder of the upcoming Closing Bell segment, where listeners can expect further analysis and updates on the day’s events.

Conclusion This episode of Halftime Report delivers a thorough examination of the intertwined nature of political developments and market reactions. By dissecting the nuances of President Trump’s interactions with global leaders and the high-profile fallout with Elon Musk, the discussion provides valuable insights for investors navigating the complexities of current market conditions. The expert commentary from CNBC’s top investors underscores the importance of staying vigilant amidst evolving geopolitical landscapes and corporate dynamics.

Notable Quotes with Timestamps:

• Scott Wapner [01:00]: “We had a very good talk. We straightened out some complex stuff. We have a deal.”

• Eamon Javers [02:48]: “We didn't get any specifics. Nothing other than a sense that there's going to be another high-level meeting.”

• Scott Wapner [04:17]: “Tesla shares were near the lows of the day, down some 6%.”

• Brian Belsky [07:42]: “I think longer term it's very, very good. We're getting closer and closer.”

• Bill Baruch [08:30]: “I do think longer term it's very, very good. We're getting closer and closer.”

• Brian Belsky [14:17]: “Tech is here to stay and the growth is real.”

• Eamon Javers [23:04]: “Without me, Trump would have lost the election.”

This comprehensive summary encapsulates the key discussions and insights from the Halftime Report episode, providing a valuable resource for those seeking to understand the intricate relationship between politics and market dynamics.

Transcript

[Ryan Reynolds]

Still jumping from tab to tab. To create trades With Fidelity Trading Dashboard, you can easily access live data, advanced charting, portfolio insights and automated alerts all on one screen. Our streamlined view lets you quickly create and execute your trading strategies to help keep up with the markets. Because better trading starts with finding what you need fast. Your Fidelity Trading Dashboard is ready now. For free, visit fidelity.com tradingdashboard Investing involves risk, including risk of loss. Fidelity Brokerage Services, llc Member NYSE SIPC.

[Huggies Advertiser]

The new Huggies Snug N Dry are luxuriously soft and ultra dry. How soft are we talking? Unbelievably soft? Irresistibly soft? Doesn't your baby deserve a diaper that's oh so gentle on their tushy? Huggy Snug N Dry helps keep them comfy, cozy and protected. Experience the unexpected softness and up to 100% leak protection. More parents choose the new Huggy Snug n Dry softness versus the leading premium diaper Huggies. We got you, baby.

[Scott Wapner]

I'm Scott Wapner, and you're listening to CNBC's Halftime Report, the podcast the most profitable hour of the trading day. We record this live weekdays at 12 Eastern. Listen in. All right, the president of the United States there in the Oval Office for that bilateral meeting with the German chancellor. And as you heard though, some conversation clearly about the war between Russia and Ukraine. A good portion of the conversation today about the call, President Xi and President Trump, and also about this fracture between the president and Elon Musk. But on the call with President Xi, President Trump saying, quote, we had a very good talk. We straightened out some complex stuff. We have a deal, as you know, we have to make sure everyone understands what the deal is. That's interesting in and of itself, considering it was just a day ago when the president himself said how difficult it was to make a deal with President Xi. Of course, on May 12, it was when the United States rolled back its tariffs from 145% to 30%. And China also agreed to roll back tariffs as well. On the criticism of Elon Musk, the president said in Musk's criticism, of course, of the tax bill, I'm very disappointed in Elon. I've helped him a lot. Elon knew the inner workings of the bill, only had a problem with it when we cut the EV mandate. I've always liked Elon. I was very surprised. I'll bring in Eamon Jabers now, our Washington correspondent at the White House who's been following all of this. Let's leave Elon in the to the second part of our conversation. Amen. But let's first address this call between the President of the United States and China's President Xi, what the substance of that was and this deal that the President is referring to.

[Eamon Javers]

Yeah, look, the deal that the President is referring to there is tariffs on China in the first place. Right. I mean, what Trump is saying is that the deal has already been struck. I put the tariffs on and that's the deal. And then if we take the tariffs off at some point after this pause, you know, that will be a new deal. What we didn't get here, Scott, are any specifics of that new deal. I mean, this, there was a lot of buildup to this call. The president himself talked about it. The White House talked about it for several days beforehand, giving a sense that, you know, once we got to that call, there might be some resolution here, but very little specifics. Now on the back end coming out of whatever they might have talked about. Obviously some positive vibes in this conversation. We got the mutual invitations for both leaders to go to each other's countries, although no date on that. So there is some, there's some diplomatic sort of warmth there in that relationship. So to that extent, the existence of the call itself is a positive in this very fraught relationship right now. But what we didn't get, and I think what Wall street might have been looking for here are some specifics. Specific things agreed to, tariffs withheld, you know, non tariff barriers removed, at least initial stages of any of that. Nothing other than a sense that there's going to be another high level meeting between the US and the Chinese delegations, as there was back in Geneva. So, you know, to that extent, I think, Scott, you can say this is sort of a lukewarm, you know, sort of readout of this call in terms of what Wall street was looking for.

[Scott Wapner]

You know, on the Elon Musk angle. Eamon, I feel like we're in the earliest chapters still how all of this is going to unfold, given what the criticism of Musk was to the bill and how the President addressed it today. Going as far as to say Elon and I had a great relationship. I don't know if it will anymore. It gives you an idea of where all of this may be heading next. And I should also note that the market took a bit of a turn on all of that because Tesla shares were near the lows of the day, down some 6%, which is obviously, obviously, given its weighting, going to have an impact on the S and P and the nasdaq. But I'm curious your thoughts of how the President addressed this budding dispute between these one time close allies.

[Eamon Javers]

Yeah, close allies as of last week. Right. I mean, Elon Musk was in the Oval Office recently being heaped with praise by the President for his efforts on Doge and saying, you know, it's just a shame that you have to leave so soon due to the government regulations. Now you get the sense that they're in the first stages or maybe second or third stages of a breakup of this bromance that they've had for the whole year. Wild to watch this, Scott, because as the President was speaking there, German Chancellor at his side in the same Oval Office where Elon Musk was last week. Elon Musk was somewhere else in the world watching it and live tweeting it himself and responding. I'm just scrambling for my phone here because you can see some of the posts that Elon Musk is making during this actual press event with the President responding to the President apparently suggesting that Elon Musk opposes this bill now because of the EV mandate being taken away. Elon Musk posting whatever. Keep the EV solar incentive cuts in the bill even though no oil and gas subsidies are touched. Very unfair. But ditched the mountain of disgusting pork in the bill. In the entire history of civilization, there's never been legislation that's both big and beautiful. Everyone knows this. Either you get a big, ugly bill or a slim, beautiful bill. Slim and beautiful is the way to go. Elon Musk also tweeting here a direct response to a video of the President talking. Elon Musk saying false. This bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it. So the President suggesting in the Oval Office that Elon Musk had been totally briefed in on the bill, knew all the details, never expressed any problems until after he left. Musk taking to Twitter, or X as he calls it now, and responding that that is totally false. So a very fundamental dispute on the facts here and on the merits of the bill.

[Scott Wapner]

All right, we'll see where all this heads. This likely not the last chapter in all of that. Eamon, thank you. That's Eamon Javers on the North Lawn of the White House for us. We will check the markets here one more time. We are green across the board, but as you can clearly see, Tesla's down some 6%. There's the majors still positive on the day, but losing a little bit of steam, really not getting much of a reaction out of news that the president and President Xi of China did hold that phone call seem to have a pretty positive spin to it. The investment committee is with me today to Stephanie Link, Jim Leventhal, Bill Barouf and Brian Belsky. Brian, I'll go to you. What do you make of the market's reaction to the idea that these two leaders had a conversation and from what we can tell, at least what the president says, we had a very good talk.

[Brian Belsky]

I think it's really good because you've seen that space just get tighter and tighter and tighter and tighter in terms of where the numbers have been. This is part and parcel on why I think we're going to see continued volatility, because I think to be able to say that the coast is clear and the screens are green, I think we're going to have a little bit more more volatility here until we get an actual deal. SCOTT so I do ultimately think longer term it's very, very good. We're getting closer and closer and closer. But that's why the market has responded on a short term basis that we're that we're having some, at least some clarity out of China.

[Scott Wapner]

You surprised, Bill that the market's not up more than it is based on this phone call that we've been hearing about anticipating. And now we finally have on the Thursday of this week, we thought it might happen Friday, weren't really sure, but now we have the details.

[Bill Baruch]

I do think there was some levitation this week in anticipation of that, but I think we do need to hear more facts. But also, let's acknowledge the run that's happened and the overhead resistance that we now must chew through. I think it's really consolidating very nicely. And if we continue to do that, I think it will party like it's 2019. You know, we'll see new record highs. But right now, and I follow the futures you look back at the February closing level is 6014. There's also a gap above there from Previous Close to 6,014 in the S&P to 6,050 brings a tremendous amount of resistance, but I think a good consolidation. I do think we'll get through there. It's just maybe an intermission here.

[Scott Wapner]

At the moment we're two and a half percent or so away from a new high on the S and P. We are working on the best quarter for stocks since the first quarter of one year ago in 2024. And we do Have a jobs report. Oh, by the way, that's looming especially large just given some of the other data points that have come out this week that have pointed to more weakness in the economy.

[Farmer Jim]

They certainly have. And I'm not going to freak out about it. I'm not suggesting anybody panic about it. But, you know, to take the economy and using an analogy that my Midwestern brothers will, will appreciate here, I mean, the ice is not thick or thin that the economy is skating on. But let's not stress it out too much. And what I mean by that, you asked a second ago, are we surprised that the market's not up more? I'll say this, I'm surprised it's not down because of this stuff about rare earth elements. What that's leading to is things like we're talking about shutting down auto production. That's not good for an economy that is still unscalable. Ice clearly is still unscathable ice. But you take yesterday's ISM non manufacturing survey, you take today's jobless claims, and it just says, let's not put any more weight on this. So why is the market up? Because President Trump and XI are talking, and that shows that President Trump is serious about resolving this. He doesn't have his head in the sand. He knows this is serious business. He loves volatility and we're stuck with it. But he knows he's got to solve that problem.

[Scott Wapner]

Steph, the market's been nothing if not resilient. And Piper Sandler points to that fact today and suggests because of that and how impressed they are with that, that stocks are heading higher this summer, that we are going to have a good summer. We'll get behind this. We'll get this trade stuff behind us. And one way or another, this bill gets done, whether it's exactly in the current form or not. You're going to see it because the Republicans hold Congress, so they're going to get it through. What form it takes may be a question, but maybe it doesn't even matter at the end of the day.

[Stephanie Link]

Yeah, I mean, eventually we will get past this. This whole thing is so tiresome, right? I mean, it's like every day it's down, it's up, it's down. Progress. No progress. No details, though. So we have to get the details for us to feel better. But if you wait to feel better, the market is going to run away. And that is because of what you just said in that once we get through tariffs, we can focus on the tax bill, we can focus on deregulation. The deputy Assistant Attorney General yesterday talked, gave a speech and talked about how positive he was and the DOJ is on M and A and how important it is for growth. So we can focus on that coming down the path hike. In the meantime, I think the economy is actually, it's okay. It's actually stronger than what I had expected it to be. I don't think it's at the 4% level with what the trackers are telling you, but something like two to two and a half percent is very healthy. And yeah, Jimmy, I'm not happy with the services numbers yesterday and the initial claims today. Initial claims are still historically very, very low. I'm not continuing claims actually fell and the jolts of the numbers were good and Challenger Gray layoffs were down 11% month over month. So let's not panic. I'm not saying you are. Let's not panic about the initial jobless claims right at this very moment. And if you believe that the job market is continuing to be strong, well guess what, we just had great personal income numbers and actually decent spending numbers. Consumer is doing just okay.

[Scott Wapner]

We just had the opening of Circle the IPO here on the floor of the New York Stock Exchange. That's what the commodity was about that you heard in the background, of course with the signature bell to officially open that stock. And we'll track it. It's highly anticipated and it's a very, very large gain right out of the gates for shares of Circle crcl. Keep that on your screen. We certainly will. Keep it on ours and we'll let you know. A Stock that's up 144/% in its very first moments of trade. Let's continue the conversation since we're talking about the this one month sector leaders. Okay, where the action's been. Technology, Brian, up 10%.

[Bill Baruch]

Yay.

[Scott Wapner]

Let the hoopla do its thing. I mean that's one of the great things frankly about our system of capitalism as you witness events like that and you see it in person here on the floor of the New York Stock Exchange. And you can feel all the what was anxiety now to just sheer jubilation as a new stock. And all these people, congratulations to them as it opens officially for trade technology. Is it going to continue to lead?

[Brian Belsky]

I think it is, Scott. And we've been very fortunate to be overweight technology for several years now. But the thing that we have differentiated ourselves is that we're not overweight the Magnificent Seven, we're overweight other areas of tech. And what we've seen in so far in 2025 is more of a broadening out of tech and we're seeing better performance from other areas. Doesn't mean that Magnificent seven isn't going to do well. We still have very strong core positions there but we think tech with respect to growth. But then also take two steps back and think about what these big tech stocks provide. They are the liquidity of the market. When you want to get in or out of the market you use those tech stocks. Just like in the 90s you use consumer staple stocks. So I think tech is here to stay and the growth is real.

[Bill Baruch]

I'll double down on tech is here to stay. I do think it's 2019. I've been saying this and we're going to have a really strong second half of the year. Where I think tailwinds really do come from is if you look at the Magnificent Seven we are at weight and overweight. Some of the Magnificent Seven names you only have Metta and Alphabet that are actually positive on the year. Nvidia is kind of flirting into positive territory. The ones that are sorry it's it's matter and Microsoft, I think the ones that are negative you're going to start to see some levitation there. There's room for them to run and that's where I think we're starting to see outperformance in the second half from those. And then if you look at the gdp we talked about the economy at the end Of Fed at 38 maybe a little lofty but Sasha Nutella, the Microsoft CEO is talking about higher GDP is more spending. More spending feeds into a trade. And then Nvidia is powering that higher as well.

[Scott Wapner]

All right. I know you can see this on your screen. All but circles halted for volatility. Maybe to nobody's surprised when you're up 144% right out of the gates for the IPO. So we'll we'll keep watching that. We'll take a quick break. We will come back with some committee moves next.

[Huggies Advertiser]

The new Huggies Snug n Dry are luxuriously soft and ultra dry. How soft are we talking? Unbelievably soft. Irresistibly soft. Doesn't your baby deserve a diaper that's oh so gentle on their tushy? Huggy Snug n Dry helps keep them comfy, cozy and protected. Experience the unexpected softness and up to 100% leak protection. More parents choose the new Huggy Snug n Dry Softness Vers Seating Premium Diaper Huggies we got you baby.

[Discover Advertiser]

Are you still quoting 30 year old movies? Have you said cool beans in the past 90 days? Do you think Discover 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 [e-mail] credit card based on the February 2024 Nelson Report.

[Ryan Reynolds]

Ryan Reynolds here from Mint Mobile. I don't know if you knew this, but anyone can get the same Premium Wireless for $15 a month plan that I've been enjoying. It's not just for celebrities. So do like I did and have one of your assistant's assistants switch you to Mint Mobile today. I'm told it's super easy to [e-mail].

[Huggies Advertiser]

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 [e-mail].

[Scott Wapner]

I want to call your attention to another event taking place of note, certainly for the markets today. That's Fed Governor Adriana Kugler and she's speaking today with our very own Sarah Eisen. You see those two in the conversation at the New York Economic Club. We of course will monitor that. For anything interesting that comes out of the conversation. We'll let you know of course what it is. Let's do some committee moves. Brian Belsky Pretty active. You bought Oklo and Checkpoint software. Why?

[Brian Belsky]

We made a mistake in American Eagle last month. We were trying to be a little bit too contrarian and so we blew that out. Stop laughing Link. And so instead I want to go with some themes. I want to, I want to add OCLO. It's 7 billion dollar market cap. Great for my SMID. And I want to come back to Check Point. Check Point is a name. $25 billion cybersecurity trading at half the market multiple of CrowdStrike. Stronger earnings growth next year than CrowdStrike. And it's perfect for my overall theme of cyber security.

[Scott Wapner]

Okay. Evergy, we sold.

[Brian Belsky]

We sold out of it.

[Scott Wapner]

What is that?

[Brian Belsky]

It's a utility I think we can get stronger growth from, obviously from a thematic basis from Aquila. Number one in terms of our large cap utility stuff. We like the OG utilities like Southern and I know you sold Nextera, but that's okay. But we like those old school stuff because we ultimately think that's really what's going to ultimately power AI?

[Scott Wapner]

Old school. Old school utilities.

[Brian Belsky]

Old school utilities. Think about this. Just like we love to talk about energy, but energy companies are actually the largest investor in alternative energy going forward. They are. And so I think the old school utility companies are going to be the first because of the infrastructure to be able to power AI.

[Scott Wapner]

You already said what Steph did. You sold Nextera?

[Stephanie Link]

Yeah.

[Scott Wapner]

Why did you do that?

[Stephanie Link]

Just said it's a great story on the grid. I love it. However, I think there's much better growth in Vertiv. And so I bought Vertiv earlier this week. I've never owned it. The company is going to grow earnings in the mid-20s. They're outgrowing the industry by 3 to 500 basis points. Incremental margins are like 30, 35%. And I love the management team, so I just prefer Vertiv to Nextera. But you can own both. I just needed the cash.

[Scott Wapner]

You. Well, you use some of the cash to buy more isrg.

[Stephanie Link]

I did intuitive surgical. Yeah, so right, exactly. So I use some of the cash to do the Vertiv and then some of it to isrg. I just think this is a secular grower in health care and it's really hard to find secular growers in health care. They're growing 20%. Procedural growth is actually accelerating. They're the number one player. Not cheap at all. But it's still down about 8% from its highs. So this is one I'm just going to continue to buy on any weakness and build it to a very large position.

[Scott Wapner]

Okay. One of the stocks of the week, I think is CrowdStrike. Let's take a look at it Was obviously down substantially on. On earnings mostly. But also some news out of D.C. yesterday, the stock is selling off by another 1% percent. Today you cut your position here in half. Why?

[Bill Baruch]

It's become a number nine holding and we've got a three and a half percent weighting. So we wanted to trim this in half and now it's back down in the middle of the pack. We added to it last July, maybe a little early in that fallout, but we haven't touched it since. It's really kind of grown in the portfolio. The report wasn't awful, but you're seeing some shrinkage across. I mean, you look at free cash flow, you're getting margins. And it gives us just a moment to take a step back. Let's see some of this DOJ news develop. We were okay with the high multiple because of the ARR, but the ERs and a little bit of question we want to watch a little bit. We still like the name and he mentioned Checkpoint. That's the one on our radar. If we were to kind of lean back into cybersecurity to weigh it up again.

[Scott Wapner]

Just noticing to the just checking the markets again. Before we take a quick break, guys, let's show the majors if we could because we are turning red. The Dow's red. The S and P is red. Nasdaq is now red. Show Tesla too, if you wouldn't mind, please. Lows of the day, that stock's down 8%. You heard the president address this controversy now about his big beautiful bill and Elon Musk weighing in vehemently. I think you could say opposed to it. What the president had to say in the Oval Office a short time ago, how disappointed he was in Elon Musk and what some of the public statements that he's made either publicly or on social media, of course, and then Musk responding in kind. So that stocks about the lows of the day as you might expect. Just as I said earlier, kind of the weighting that you have in a stock like this now, no surprise NASDAQ's weaker. S& P is weaker. No, no inference on the Dow, obviously, but the Dow is in the red too. We'll come back. We do have the setup on Broadcom. Broadcom, that's a big earnings report in OT will set the stage for it next.

[Discover Advertiser]

Are you still quoting 30 year old movies? Have you said cool beans in the past 90 days? Do you think Discover 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 [e-mail] credit card based on the February 2024 Nelson Report.

[Ryan Reynolds]

Ryan Reynolds here from Mint Mobile with a message for everyone paying big wireless way too much. Please, for the love of everything good in this world, stop with Mint. You can get premium wireless for just $15 a month. Of course, if you enjoy overpaying. No judgments. But that's weird. Okay, one judgment anyway. Give it a try. @mintmobile.com Switch upfront payment of $45 for.

[Huggies Advertiser]

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 [e-mail].

[Scott Wapner]

Big IPO today here at the New York Stock Exchange Circle is Back open. Circle is back open. And do I see that correctly, that it's up 200% now. Wow, what an amazing IPO this has been so far. Already halted once at least for volatility. We'll continue to watch that. Now we're going to go back to Eamon Jabbers. We do have some more news at the White House. Eamon.

[Eamon Javers]

Yes, Scott, this is blistering criticism now from Elon Musk on social media just responding to the president's event in the Oval Office a short time ago. Elon Musk posting on X his social media platform. Without me, Trump would have lost the election. Dems would control the House and the Republicans would be 51, 49 in the Senate. He goes on to post two such ingratitude. Now that follows on President Trump appearing in the Oval Office alongside the chancellor of Germany. The president saying that he would have won Pennsylvania without Elon Musk. He was doing just fine. And the president by his own terms, very measured in his criticism of Elon Musk. But he did say that Musk was for his big spending bill until he came out against it after leaving government and that Musk had been totally briefed on that spending bill before he left government. Musk taking to social media during that press availability to say that was false. He had not seen the bill until after the fact and it was done in the dark of night. So an erupting political controversy and sort of political fisticu cuffs, I guess is the way to describe this between Elon Musk and Donald Trump. Two figures who are just enormously powerful figures on the world stage who were joined at the hip politically from the summer until last week. And now a major fracture here between the two. The president was, as I say, fairly measured in his criticism of Musk by his own terms in the Oval Office. We'll see if that holds for the rest of the afternoon. Scott, back over to you.

[Scott Wapner]

This really is an incredible developing story. I'm wondering if as a reporter who's covered this from the get go, who's been in the Oval many times when Musk and the president were there addressing all of you, just what you make of this, such high profile falling out. Some I'm sure would have said this was predictable at some point, that these two powerful personalities were not going to be able to to last forever as buddies. I'm just curious through your own lens, Eamonn, what you make of how this has turned into such a public fracture on what, frankly is a very big stage, a bilateral meeting between the President and the German Chancellor.

[Eamon Javers]

I mean, I think the way that Elon Musk is doing this speaks to his knowledge of the Oval Office and the knowledge of the pacing he and timing of these events. Having been there, you know, sort of live tweeting during it, responding to the President in real time and saying that what the President is saying is false. Saying the President is expressing ingratitude for the millions of dollars that Elon spent on his campaign. I mean, that is particularly prickly and particularly sticking the knife in politically here. But I think a lot of people would have said that it was remarkable that this political partnership made it as many months as it, as it did. I mean, we're here in June. A lot of people were predicting this back in November because of these two titanic egos. Two people with enormous success in their own chosen fields. Two people who dominate the world media in real ways on a day to day basis. That just the idea that those two volatile forces couldn't exist in the same small space for very long and yet they were able to have, you know, regular overnights in the Oval Office, must spent the night in the Lincoln Bedroom. Several times he said the President would invite him over and say, be sure to get the ice cream from the kitchen. It's great here. You know, that kind of thing lasted a lot longer than people thought it would. And now this split and the split importantly over funding. You know, Elon made his political crusade about deficits and federal spending. He's breaking with the President on that and then breaking with the President. The President says after the President and his bill took away Elon Musk's EV subsidies that benefit Tesla, Musk has said in the past, we should note, go ahead, take those EV subsidies away. That's fine. Tesla can compete better than the other electric vehicle companies without them. So Tesla will win relatively against the others. So, you know, where does all that leave us? I mean, I think Elon Musk has a longer political timeline than Donald Trump does. Trump is leaving office. There will be a 2028 election and the country will move on in three years. He's sort of weirdly already a lame duck in that sense. Elon Musk has generational time here and financial, you know, nearly infinite resources. If he wants to be a big player in American politics, he will continue to be a big player in American politics for decades to come. Trump doesn't have that kind of running room. And I think you saw some of the resentment there from Trump in the Oval Office as he watched this. A man of a very different generation, very different temperament, very different interests. And yet they were able to make it work as a partnership for at least six months.

[Scott Wapner]

I mean, there are those. Obviously you're going to say that Musk himself needs a pretty heavy dose of reputational rehab, certainly in some quarters. And maybe these are the earliest steps of doing that. Amen. I got to, I got to run, but I appreciate you. I'll see you later this afternoon on closing bell, you can be certain. So put that on your, on your daily calendar. We'll see at 3 o' clock Eastern Time. In the 2 1/2 minutes I have left. I do want to address Broadcom's earnings because they are significant and Stephanie Link owns the stock.

[Stephanie Link]

I know.

[Scott Wapner]

So, so what do we think this is? You know, you're. That, that reaction sort of tells you the anxiety, maybe is a good word leading into this print 100%.

[Stephanie Link]

And it has nothing to do with fundamentals, Scott. It has everything to do with expectations. The Stock is up 75% from the April real low. And it is now like common to, to like this, to own this. Whereas, you know me, I kind of like to be on the other side of the boat. Right. So I think the expectations are very, very high. But the company is very well run and you've got AI exposure, you've got software exposure, you've got cyclical exposure. That actually, that, that last piece should see a recovery. So if it is weak, that would be your opportunity to add to it.

[Scott Wapner]

Yeah, I mean, look, the stock is up so much, Brian. You look at like a crowd strike. Different ball game, totally different industry, but same ballgame in terms of a stock that's just been off to the races going into a number, thus a lot to live up to. Even good might not be good enough. You just never know.

[Brian Belsky]

Exactly. And Stephanie nailed it.

[Scott Wapner]

Right.

[Brian Belsky]

You have so many people, including ourselves, we've owned it for a while and we actually think it probably has one of the best opportunities. Opportunities to be Pepsi to Nvidia's Coke. We want to think thematically about that, but at the end of the day they have to nail it to continue to hold these owners. But I would say that if you have some sort of a significant pullback, that's your next buying opportunity.

[Scott Wapner]

Let's try and get some final trades in too from the group here as we. What a busy hour. Obviously that we've had most of it geared towards Washington and that call between the President and China's President Xi. And then of course this very public falling out between the President and Elon Musk. You have a final trade staff. You want to drop drop on us?

[Stephanie Link]

I have the gap. It is down 33% in a week and the stock trades at 9.7 times, has a yield of 3.1%. They actually had a very strong quarter where they're gaining market share. This new management is doing a phenomenal job. You use the weakness to be buying the stock.

[Scott Wapner]

Okay. Farmer Jim.

[Farmer Jim]

Walt Disney. It's been in this one 15 ish range for quite some time. I think it breaks out above 120.

[Scott Wapner]

Okay. Bill.

[Bill Baruch]

Bruce Silver. Highest since 2012 if you have the stomach for it. Commodity super cycle. Here we go.

[Brian Belsky]

Kelsky, Ulta Beauty. I need all the help I can get, number one. But number two, it's more of the staples and discretionary side of the midcap world.

[Scott Wapner]

Need some powder? You're looking a little.

[Brian Belsky]

I do need a little.

[Scott Wapner]

We'll see you soon. I'll see you soon as well. At 3 o' clock. You've been listening to CNBC's Halftime Report, the podcast. You can always catch us live weekdays at 12 Eastern only on CNBC.

[Huggies Advertiser]

All opinions expressed by the Halftime Report 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 Halftime Report 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 Halftime Report disclaimer, please visit cnbc.com halftime reportdisclaimer.

[Discover Advertiser]

Your new beginning starts now. Dr. Horton has new construction homes available in Ellensburg and throughout the greater Seattle area. With spacious floor plans, flexible living spaces and home technology packages, you can enjoy more cozy moments and sweet memories in your beautiful new home.

[Huggies Advertiser]

With new home communities opening in Ellensburg.

[Scott Wapner]

And throughout the Seattle area, Dr. Horton.

[Discover Advertiser]

Has the ideal home for you. Learn [e-mail] Dr. Horton, America's builder and equal housing opportunity builder.