Halftime Report: Trading Trump’s Tariffs – May 23, 2025
Released on May 23, 2025
Podcast Information:
- Title: Halftime Report
- Host/Author: CNBC
- Description: Halftime Report is on the front lines of CNBC’s market coverage. Hosted by Scott Wapner, the show features discussions with top investors to dissect market actions and set the trading agenda for the day. It airs weekdays from 12-1 PM ET on CNBC TV.
1. Market Overview and Tariff Rhetoric
Timestamp: [01:02]
Scott Wapner opens the episode addressing the heightened tariff rhetoric from the President, leading to a decline in stock markets. He notes, “The president ramping up his tariff rhetoric. Stocks are falling. Apple's under pressure today.” He emphasizes that despite today’s downturn, the market is up 16% from the April 8 lows, suggesting a potential stabilization until more clarity emerges.
Notable Quote:
"We have come a long way. We're still up 16% from the April 8 lows. So I would not be surprised to see us just backing and filling for the time being until we get answers."
— Stephanie Link [02:18]
2. Analyzing the President’s Tariff Threats on Apple
Timestamp: [07:38] - [10:02]
The discussion pivots to President Trump's specific threats against Apple, demanding that iPhones be manufactured in the United States or face a 25% tariff. Jenny Harrington elaborates on the implications, stating, “President Trump is looking at that and saying, I want some of it now.” The panel debates the feasibility of Apple shifting production to the U.S., with Steve Kovach highlighting logistical challenges and potential price hikes for consumers.
Notable Quote:
"Apple had 100 billion of profit last year. President Trump is looking at that and saying, I want some of it now."
— Jenny Harrington [07:38]
3. Impact on Apple’s Valuation and Market Position
Timestamp: [12:21] - [18:50]
The team delves into Apple’s stock performance amidst the tariff threats. Scott Wapner references analyst opinions labeling the idea of U.S.-manufactured iPhones as a “fairytale” and discusses potential price increases. Stephanie Link critiques Apple’s high valuation, questioning the sustainability of its earnings growth:
"Why, why, why would you pay 28 times for mid single-digit revenue growth."
— Stephanie Link [17:00]
Jim Laventhal counters by emphasizing Apple's brand strength and historical resilience, suggesting that despite current challenges, long-term value remains.
Notable Quote:
"I still believe in America, I completely believe in companies to continue to generate earnings growth."
— Jim Laventhal [05:30]
4. Strategies for Investors Amidst Tariff Uncertainty
Timestamp: [15:16] - [25:13]
Kevin Simpson advises investors to remain invested in Apple, suggesting strategies like writing covered calls to mitigate risks:
"I wouldn't blow this off short term, but Scott, what I'm more worried about intermediate and longer term is what happened yesterday with Open Air Chat, GPT and Jony."
— Kevin Simpson [14:47]
Jenny Harrington echoes the importance of not overreacting to market volatility, highlighting that Apple remains a significant component of major indices like the S&P 500.
5. Broader Market Implications and Other Affected Stocks
Timestamp: [26:19] - [36:10]
The panel discusses the broader market impact, including the potential effects on other technology and industrial stocks. They touch upon Bank of America’s list of stocks poised to benefit from higher interest rates, mentioning names like Wells Fargo, SLB, and Diamondback. Stephanie Link connects higher rates to increased net interest income for banks, emphasizing the positive outlook for financial institutions amidst rate hikes.
Notable Quote:
"I think the regional banks actually will benefit more for the energy stocks."
— Stephanie Link [36:10]
6. Headline News and Legal Developments
Timestamp: [32:14] - [34:43]
Silvana Hannell reports on recent legal actions, including a judge blocking the Trump administration from revoking Harvard University's ability to enroll foreign students. Additionally, Democratic senators Warren and Blumenthal urge the DOJ to prosecute Boeing in a criminal fraud case related to the 737 Max crashes.
Notable Quote:
"None of us should be surprised that the Trump administration is spending money. Both administrations were going to spend money, no matter who got in."
— Stephanie Link [02:18]
7. Upcoming Earnings and Market Predictions
Timestamp: [41:37] - [47:05]
Looking ahead, the team anticipates significant market movements tied to upcoming earnings reports, particularly Nvidia and Salesforce. Kevin Simpson remains optimistic about Nvidia’s continued strong performance, while discussions about Salesforce’s prospects remain cautious pending earnings results.
Notable Quote:
"We're not expecting too much out of this. I wouldn't be buying it in advance of the print."
— Kevin Simpson [42:47]
8. Final Trades and Investment Moves
Timestamp: [28:17] - [30:56]
The analysts share their final trades for the day. Kevin Simpson highlights buying American Express (AXP) on a market pullback, emphasizing its strong service model and consistent earnings growth. Stephanie Link discusses adding Quanta Services (PWR) due to its robust backlog and strategic positioning in the clean energy infrastructure market.
Notable Quote:
"They had a really good quarter, too. So they beat and they raised. And Earnings were up 71%. Revenues up 26%."
— Stephanie Link [43:23]
Conclusion
The episode of Halftime Report delves deep into the ramifications of President Trump's tariff threats on Apple, exploring both immediate market reactions and long-term investment strategies. Analysts provide a balanced view, acknowledging the challenges while highlighting opportunities for investors to navigate market volatility. The discussion extends to other sectors impacted by rising interest rates and underscores the importance of strategic stock positioning in uncertain economic times.
For full insights and live discussions, tune into Halftime Report on CNBC weekdays at 12 PM ET.