What’s News in Markets: Tesla Turmoil, Steelmaker Rallies, Dollar General Gains

Summary

WSJ What’s News in Markets: Tesla Turmoil, Steelmaker Rallies, Dollar General Gains

Release Date: June 7, 2025

Introduction

In the latest episode of What’s News in Markets by The Wall Street Journal, host Francesca Fontana delves into the week's most significant market movements and the news driving them. From high-stakes feuds affecting major corporations to strategic tariff implementations reshaping industries, this episode provides a comprehensive overview of the financial landscape as of June 7, 2025.

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1. Tesla’s Market Plunge Amid Trump-Musk Feud

The episode opens with a spotlight on the intense public showdown between former President Donald Trump and Tesla CEO Elon Musk, a conflict that sent shockwaves through the stock market.

Francesca Fontana [00:35]: "But we're gonna get to that later because really what captured all of our attention and not just in the stock market, was the giant feud unfolding between."

An unnamed analyst elaborates on the origins of the feud, highlighting Musk's criticism of Trump’s proposed tax and spending bill. The tension escalated rapidly, resulting in a series of harsh exchanges.

Unnamed Analyst [00:48]: "President Trump threatened to eliminate government subsidies and contracts for Musk's businesses. And Musk called Trump ungrateful after his campaign support and agreed with a tweet."

Francesca Fontana [00:58]: "Trump threatened to eliminate government subsidies and contracts for Musk's businesses. And Musk called Trump ungrateful after his campaign support and agreed with a tweet."

The fallout was immediate and severe for Tesla. On Thursday, Tesla's shares plummeted by 14%, marking the company's largest single-day decline and erasing approximately $152 billion in market value.

Francesca Fontana [01:10]: "Tesla's shares fell 14% during the session, losing about $152 billion in market value, which is the company's biggest one day slide on record."

The impact extended to Trump's media ventures as well. Shares of Trump Media and Technology, the parent company of Truth Social, fell 8% on Friday but later recovered, ending the week with a modest gain of 4%.

Despite these tumultuous events surrounding Tesla and Trump Media, the broader market exhibited resilience. The major indexes closed the week with gains: the S&P 500 and the Dow each rose by over 1%, while the Nasdaq increased by more than 2%.

Unnamed Analyst [01:42]: "The S&P 500 and the Dow each rose more than 1% and the Nasdaq rose more than 2%."

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2. Steelmakers Surge on New Tariffs

Shifting focus to the metals sector, Francesca Fontana discusses the significant rally in steelmaker stocks spurred by recent tariff developments.

Unnamed Analyst [01:53]: "Tariffs and what they mean for American steelmakers like Cleveland Cliffs."

The catalyst was President Trump's decision to double tariffs on steel and aluminum to 50%, announced on May 30th, in a rally promoting a $14 billion deal between Japan's Nippon Steel and U.S. steel. This move aims to bolster domestic production and ensure U.S. control over the partnership.

Francesca Fontana [02:03]: "Trump unveiled the higher duties at a rally the Friday before. And by that I mean May 30, not yesterday, while promoting a $14 billion deal between Japan's Nippon Steel and U.S. steel, which the president said would ensure U.S. control over the company."

The higher tariffs, effective from Wednesday, empower domestic steelmakers to increase prices in response to the previously cooling off demand and declining prices since April.

Unnamed Analyst [02:23]: "The higher tariffs, which took effect on Wednesday, give domestic steelmakers more power to raise prices."

Cleveland Cliffs exemplifies the positive market reaction, with their shares soaring 23% on Monday alone and achieving a 30% gain over the week.

Francesca Fontana [02:36]: "Cleveland Cliff's shares surged 23% on Monday."

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3. Dollar General Defies Retail Slowdown

The episode transitions to the retail sector, highlighting the impressive performance of discount chains like Dollar General amidst a challenging economic environment.

Unnamed Analyst [02:53]: "Next up, we've got earnings reports from Bargain chains like Dollar General."

Despite a prevailing trend of declining retail demand, Dollar General and its peers are bucking the trend, attracting higher-income customers seeking deals.

Francesca Fontana [03:05]: "Dollar General on Tuesday raised its annual sales outlook after posting better than expected first quarter results."

The company’s updated guidance anticipates that current tariff rates will remain until mid-August. Executives attribute their robust sales to increased demand from middle and upper-income customers, despite ongoing economic uncertainties.

Unnamed Analyst [03:17]: "It's looking at ways to cut shipping costs and plans to raise prices on some products."

Additionally, peer company Five Below also reported better-than-expected quarterly results, reinforcing the strength of the discount retail segment.

Unnamed Analyst [03:34]: "Low cost retail peer Five Below joined the dollar stores in posting better than expected quarterly results."

Dollar General's stock benefited significantly, soaring 16% on Tuesday and closing the week with a 17% gain.

Francesca Fontana [03:51]: "Dollar General soared 16% on Tuesday and ended the week with a gain of about 17%."

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4. Lululemon Faces Profit Outlook Challenges

Concluding the episode, Francesca Fontana addresses the recent struggles of Lululemon, the renowned sportswear brand.

Francesca Fontana [04:08]: "Last but not least, let's talk Lululemon. You may know it for its yoga pants."

Lululemon has cut its annual profit outlook due to a combination of cautious U.S. consumer spending and the looming threat of tariffs impacting its supply chain. The company sources products from countries such as China, Vietnam, Cambodia, Sri Lanka, Indonesia, and Bangladesh, and is bracing for tariffs of 30% on Chinese imports and 10% from other nations.

Unnamed Analyst [04:16]: "Lululemon said it's assuming tariffs of 30% on Chinese imports and 10% from other countries."

In response, Lululemon is exploring ways to reduce shipping costs and plans to raise prices on certain products to mitigate the financial strain.

Francesca Fontana [04:37]: "It's looking at ways to cut shipping costs and plans to raise prices on some products."

The market reacted negatively to these developments, with Lululemon's shares plunging 20% on Friday and the stock recording a 16% weekly loss.

Francesca Fontana [04:45]: "Lululemon shares plummeted 20% and the stock notched a weekly loss of about 16%."

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Conclusion

As the week wraps up, What’s News in Markets provides a nuanced analysis of the interplay between political dynamics and market performance. From the dramatic stock market reactions to high-profile feuds to strategic tariff implementations bolstering specific industries, the episode underscores the volatility and interconnectedness of today’s financial markets.

For a more in-depth exploration of these stories and additional stock movements, listeners are encouraged to read Francesca Fontana's column in the Wall Street Journal's Exchange section.

Francesca Fontana [05:03]: "Have a great weekend and I'll see you next Saturday."

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Notable Quotes

• Francesca Fontana [00:35]: "But we're gonna get to that later because really what captured all of our attention and not just in the stock market, was the giant feud unfolding between."

• Unnamed Analyst [00:48]: "President Trump threatened to eliminate government subsidies and contracts for Musk's businesses. And Musk called Trump ungrateful after his campaign support and agreed with a tweet."

• Francesca Fontana [01:10]: "Tesla's shares fell 14% during the session, losing about $152 billion in market value, which is the company's biggest one day slide on record."

• Francesca Fontana [03:05]: "Dollar General on Tuesday raised its annual sales outlook after posting better than expected first quarter results."

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Produced By

Today's episode was produced by Zoe Kulkin with supervising producer Talia.

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Disclaimer: Investing involves risk, including the risk of loss. Fidelity Brokerage Services, LLC is a member of NYSE and SIPC.

Transcript

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[Francesca Fontana]

Hey listeners, it's Saturday, June 7th. I'm Francesca Fontana for the Wall Street Journal and this is what's news in Markets, our look at the biggest stock moves of the week and the news that drove them. Let's get to it. All right, what happened this week?

[Unnamed Analyst]

Of course, of course we had more earnings reports.

[Francesca Fontana]

We had developments in tariffs with steel and aluminum. But we're gonna get to that later because really what captured all of our attention and not just in the stock market, was the giant feud unfolding between.

[Unnamed Analyst]

President Trump and Elon Musk. So it started with Musk's criticism of Trump's tax and spending mega bill, and it escalated to an afternoon of back.

[Francesca Fontana]

And forth insults and attacks.

[Donald Trump]

Trump.

[Francesca Fontana]

Trump threatened to eliminate government subsidies and contracts for Musk's businesses. And Musk called Trump ungrateful after his campaign support and agreed with a tweet.

[Unnamed Analyst]

That Trump should be impeached.

[Francesca Fontana]

And it certainly made Thursday's trading interesting. Tesla's shares fell 14% during the session, losing about $152 billion in market value, which is the company's biggest one day slide on record. And Trump Media and Technology, the parent company of Trump's Truth Social media, saw its shares fall 8% on Friday. They made up some ground. Both gained close to 4%. All in all, the three major indexes notched weekly gains. The S&P 500 and the Dow each.

[Unnamed Analyst]

Rose more than 1% and the Nasdaq rose more than 2%.

[Francesca Fontana]

Now let's get back to those metals.

[Unnamed Analyst]

Tariffs and what they mean for American steelmakers like Cleveland Cliffs.

[Francesca Fontana]

Steel producers seriously rallied on Monday on.

[Unnamed Analyst]

Trump's recent move to double steel and.

[Francesca Fontana]

Aluminum tariffs to 50%. And yes, that's five zero.

[Unnamed Analyst]

He unveiled the higher duties at a rally the Friday before. And by that I mean May 30, not yesterday, while promoting a $14 billion deal between Japan's Nippon Steel and U.S. steel, which the president said would ensure U.S. control over the company.

[Francesca Fontana]

The higher tariffs, which took effect on.

[Unnamed Analyst]

Wednesday, give domestic steelmakers more power to raise prices. And as we've seen since April, steel demand and prices have been cooling off.

[Francesca Fontana]

So back to that rally.

[Unnamed Analyst]

Cleveland Cliff's shares surged 23% on Monday.

[Francesca Fontana]

And on a weekly basis, the stock gained 30%.

[Unnamed Analyst]

Next up, we've got earnings reports from.

[Francesca Fontana]

Bargain chains like Dollar General. We've talked about the ongoing trend of falling retail demand and these companies are apparently bucking that trend thanks to an.

[Unnamed Analyst]

Influx of higher income customers looking for deals.

[Francesca Fontana]

Dollar General on Tuesday raised its annual.

[Unnamed Analyst]

Sales outlook after posting better than expected first quarter results.

[Francesca Fontana]

The company said its updated guidance assumes.

[Unnamed Analyst]

Current tariff rates remain in place through mid August. As we've seen, of course, it's hard to predict anything when it comes to Trump's trade policy. Executives for Dollar General and rival Dollar.

[Francesca Fontana]

Tree said that increased demand from middle and upper income customers boosted sales in their spring quarters.

[Unnamed Analyst]

Meanwhile, as Dollar General's CEO mentioned, lower.

[Francesca Fontana]

Income customers remain financially strapped.

[Unnamed Analyst]

And on Wednesday, low cost retail peer five below joined the dollar stores in posting better than expected quarterly results.

[Francesca Fontana]

So back to Dollar General.

[Unnamed Analyst]

How'd the stock do? Well, it soared 16% on Tuesday and ended the week with a gain of about 17%. Last but not least, let's talk Lululemon. You may know it for its yoga pants.

[Francesca Fontana]

The sportswear brand cut its annual profit.

[Unnamed Analyst]

Outlook as the company faces cautious US Consumers pulling back spending and tariffs that.

[Francesca Fontana]

Stand to threaten its supply chain. Specifically, tariffs affecting products from some of the company's largest sourcing bases. It makes products in China, Vietnam, Cambodia, Sri Lanka, Indonesia and Bangladesh.

[Unnamed Analyst]

Lululemon said it's assuming tariffs of 30% on Chinese imports and 10% from other countries. It's looking at ways to cut shipping.

[Francesca Fontana]

Costs and plans to raise prices on some products. On Friday, Lululemon shares plummeted 20% and.

[Unnamed Analyst]

The stock notched a weekly loss of about 16%.

[Francesca Fontana]

And now you know what's news in markets this week you can read about more stocks that moved on the week's news in the Score, my column in the Wall Street Journal's Exchange section.

[Unnamed Analyst]

Today's show was produced by Zoe Kulkin.

[Francesca Fontana]

With supervising producer Talia. I'm Francesca Fontana. Have a great weekend and I'll see you next Saturday.

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