Halftime Report: Stocks Surge on Tariff Delay (05/27/25)
CNBC’s Scott Wapner with Josh Brown, Joe Terranova, Shannon Sokosha, and Jim Labenthal
Release Date: May 27, 2025

1. Introduction and Market Overview

In today’s episode of Halftime Report, Scott Wapner kicks off by highlighting a significant day for the stock market. Following the President’s decision to postpone tariff implementations, stocks experienced a notable surge. The Dow approached 600 points, the Nasdaq saw substantial gains, and the S&P 500 climbed back above 5,900.

Scott Wapner [01:02]:
"Front and center this hour, this big day for stocks. The president once again backs away from a tariff threat."

2. Impact of Tariff Delays on the Market

The primary focus of the discussion revolves around the President’s delay of EU tariffs and its immediate positive effect on the markets. The uncertainty surrounding tariffs had previously led to market volatility, but the postponement has reassured investors, leading to increased market confidence.

Josh Brown [02:07]:
"We were pretty much highs of the day, almost 600 on the Dow. Nasdaq's having a biggie S&P back above 5,900 as well."

Joe Terranova [03:42]:
"Maybe this isn't just getting desensitized to the trade wars or not taking it seriously. However rephrased it. There's actually capex going on around the world."

3. Treasury Yields and Tax Bill Considerations

The panel delves into the movements in Treasury yields, noting a retreat in both 10-year and 30-year Treasuries. This decline is attributed to the delayed tariffs, which alleviates fears of a massive tax bill that could have pressured long-term yields.

Shannon Sokosha [02:12]:
"Since Thursday morning at 8:30, you've seen a retreat of nearly 18 basis points for a 30-year Treasury, 15 basis points for a 10-year Treasury."

Scott Wapner [03:06]:
"Those are starting to be incorporated into earnings expectations now... we're back into this mode of looking at the potential for all-time highs."

4. Tax Bill Implications and Market Desensitization

Joe Terranova emphasizes the complexities surrounding the tax bill, suggesting that while deficit concerns are prevalent, dynamic scoring and potential pro-growth aspects might mitigate some negative impacts. This nuanced view contributes to the market's desensitization to tariff threats.

Joe Terranova [05:54]:
"There is a silver lining. They do put some money into the Treasury's coffers."

Shannon Sokosha [07:07]:
"We're now one month, one and a half months away from the 90-day pause on the reciprocals. The markets may be saying, 'Set the level and let's move on.'"

5. Individual Stock Analysis

a. Nvidia

Nvidia stands out as a top performer, with expectations of robust earnings driven by strong AI demand. The panel discusses the stock's impressive growth, bullish analyst ratings, and its strategic position in the AI sector.

Jim Labenthal [12:19]:
"Revenue is expected to grow 66.5% year on year to $43.37 billion for the quarter... on a PE basis it's one of the cheapest of the mega-cap stocks."

Shannon Sokosha [14:18]:
"Year on year growth of 200-plus percent... we've got enough bad news priced in."

b. Apple

Apple faces challenges with a selling streak and tariff impacts. Despite strong fundamentals, the stock has seen recent declines, prompting discussions on its valuation and future prospects.

Joe Terranova [20:48]:
"I'm very happy with my Amazon, very happy with my Nvidia... Alphabet is an opportunity after their development conference."

c. Amazon

Amazon’s performance remains strong despite brand challenges and competition, with insights into its strategic positioning and growth opportunities.

Joe Terranova [21:30]:
"I'm very happy with my Amazon, very happy with my Nvidia doing what it's doing right now."

d. Cleveland Cliffs

Cleveland Cliffs is highlighted as an undervalued stock facing significant downturns. Joe Terranova discusses his conviction in its turnaround story despite recent performance woes.

Joe Terranova [23:34]:
"This is a stock that's now being looked at as if it's somehow going out of business, which I really don't see."

e. Snowflake

Jim Labenthal introduces Snowflake as a new addition to the best stocks list, citing improving fundamentals and strong revenue retention as key factors.

Jim Labenthal [37:21]:
"They have over 600 companies paying them a million dollars or more each year in revenue, which is up 27% year over year."

6. Sector Performance

The panel examines various sectors, emphasizing the resilience of semiconductors and the challenges within the healthcare sector. Despite bearish reports from certain firms, positive data from ETF flows and stock performances paint a more optimistic picture.

Jim Labenthal [08:12]:
"Flowing through whether you're in video producing chips or you're a concrete manufacturer... there's demand to build these things all over the globe."

Shannon Sokosha [19:14]:
"The semi equipment names are where you're actually seeing the biggest recovery in terms of price."

7. Consumer Confidence and Retail Earnings

Consumer confidence has reached its highest level since February, bolstering the retail sector. The podcast discusses upcoming retail earnings reports from major names like Dick's Sporting Goods, Kohl's, and Best Buy, highlighting strong performance in discretionary spending.

Shannon Sokosha [29:10]:
"It's about the balance sheet, the improvement in the balance sheet... navigating what was a very difficult environment."

Josh Brown [28:37]:
"Booking holdings all-time high. TripAdvisor doing well. Hilton Carnival, Royal Caribbean... top pick for the second half of the year at Bernstein."

8. Upcoming Events and Future Outlook

Looking ahead, the panel anticipates a busy week with significant retail earnings and potential updates on tariff negotiations. Joe Terranova forecasts a decisive move beyond the current trading range, contingent on forthcoming economic data and policy decisions.

Joe Terranova [41:08]:
"There are a lot of threads going to have to be bundled together... first kind of tariff inflected earnings season."

Josh Brown [42:14]:
"The market started to get desensitized to some of the tariff and trade threats... it's the world's most boring roller coaster on the way up."

Notable Quotes

• Scott Wapner [01:02]:
  "Front and center this hour, this big day for stocks. The president once again backs away from a tariff threat."

• Shannon Sokosha [02:12]:
  "You've seen a retreat of nearly 18 basis points for a 30-year Treasury, 15 basis points for a 10-year Treasury."

• Joe Terranova [05:54]:
  "There is a silver lining. They do put some money into the Treasury's coffers."

• Jim Labenthal [12:19]:
  "Revenue is expected to grow 66.5% year on year to $43.37 billion for the quarter."

• Jim Labenthal [37:21]:
  "They have over 600 companies paying them a million dollars or more each year in revenue, which is up 27% year over year."

Conclusion

The episode of Halftime Report provides a comprehensive analysis of the stock market's reaction to delayed tariffs, the interplay between Treasury yields and tax bills, and in-depth discussions on key individual stocks and sector performances. With consumer confidence on the rise and robust earnings reports anticipated, the panel remains optimistic about the market's trajectory while keeping a cautious eye on potential economic shifts.

For more insights and detailed market analysis, listen to the full episode of CNBC’s Halftime Report weekdays from 12-1 PM ET on CNBC TV.