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President Trump threatened Elon Musk’s ‘subsidies’ as Musk threatened a brand new political get together. (0:15) Huge soar in job openings help Fed pause. (1:33) Rise of the Amazon machines. (3:22)
That is an abridged transcript of the podcast:
Our high story up to now, Trump and Musk are again at it.
Tesla (NASDAQ:TSLA) is below stress after CEO Elon Musk and President Trump bickered once more on social media concerning the authorities tax and spending invoice.
Following some complaints from Musk concerning the monetary hazard of the tax and spending invoice and a teaser on beginning a brand new political get together, Trump stated that “Elon could get extra subsidy than any human being in historical past, by far, and with out subsidies, Elon would most likely have to shut up store and head again residence to South Africa.” (Which can, in a curious method, remind some old style followers like me of Public Enemy’s “Incident at 66.6 FM.”)
For his half, Musk stated: “Each member of Congress who campaigned on decreasing authorities spending after which instantly voted for the largest debt improve in historical past ought to cling their head in disgrace! And they’ll lose their major subsequent yr whether it is the very last thing I do on this Earth.”
In a separate submit, Musk, who spent round $290 million backing Trump and different Republicans within the 2024 election, stated that if “insane spending invoice passes, the America Social gathering will probably be fashioned the following day”.
Weighing in on the spat, Wedbush Securities analyst Dan Ives stated the Musk-Trump cleaning soap opera stays an overhang on Tesla’s inventory with buyers fearing that the Trump Administration will probably be extra hawkish and present scrutiny round Musk associated U.S. authorities spending associated to his corporations, and most significantly, the regulatory atmosphere key to the way forward for Robotaxis and Cybercabs.
On the financial entrance, Fed Chairman Jay Powell raised some eyebrows on Wall Road by utilizing what some noticed as language that places the potential of a July fee minimize in play.
“I actually cannot say” if a July fee minimize could be too quickly, he stated on the ECB Discussion board on Financial Coverage. “It depends upon the information.”
However T.S. Lombard economist Dario Perkins says: That was only a clumsy method of claiming he did not wish to give any coverage steerage.”
A “stable majority” of FOMC members anticipate to cut back charges later this yr, Powell famous.
He added that the Fed will probably be watching “very rigorously” for indicators of sudden labor market weak spot. However at the moment’s labor market knowledge appeared to help the case for ready, because the JOLTS report confirmed a second robust month in a row.
The variety of job openings within the U.S. jumped to 7.769 million in Might from 7.395 million in April, properly forward of the 7.32 million consensus.
As well as, the layoff fee fell to a really low 1.%.
Pantheon Macro says all instructed, “most FOMC members will see little purpose to get behind rising voices for a July easing after Might’s JOLTS report. However the outlook probably stays for slowing development in each wages and payrolls within the second half of this yr, which we proceed to assume will steer the Committee to ease by 75bp by December, almost definitely beginning in September.”
Amongst energetic shares, Las Vegas Sands (LVS), Wynn Resorts (WYNN) and Melco Resorts & Leisure (MLCO) noticed power as Macau gross gaming income jumped 19% year-over-year in Might to $2.6 billion. The GRR mark topped the consensus expectation for an increase of 9.4% and represented 88% of the income mark from the pre-pandemic yr of 2019.
And Kroger (KR) was named certainly one of Evercore ISI’s Finest Core Concepts. The curated inventory listing is a compilation of the agency’s high picks with a longer-term funding horizon.
Crucially, Kroger can be seen reaching 3% or greater in identical-store gross sales into 2026.
In different information of be aware, Amazon (AMZN) has deployed its one millionth robotic to a achievement middle in Japan, near the variety of people working at its services, because the e-commerce big continues to broaden the world’s largest fleet of business cellular robots.
Round 75% of the corporate’s international deliveries are actually assisted not directly by robotics, and its fleet spans greater than 300 services worldwide.
In line with a Wall Road Journal evaluation, the typical variety of employees per Amazon facility final yr – round 670 – was the bottom recorded previously 16 years.
In the meantime, they discovered that the variety of packages shipped per worker annually elevated since at the least 2015 to about 3,870 from round 175, indicating productiveness good points.
And within the Wall Road Analysis Nook, nonetheless the tech bulls, Wedbush says tech shares as an entire are prone to rise 10% or extra within the second half of 2025, thanks partially to AI.
The agency’s high 5 picks are acquainted names: Nvidia (NVDA), Meta Platforms (META), Microsoft (MSFT), Palantir (PLTR) and Tesla (TSLA).
Analysts stated: “Our bullish view is that buyers are nonetheless underestimating the tidal wave of development on the horizon from the $2 trillion of spending over the following 3 years coming from enterprise and authorities spending round AI know-how and use instances.”
“In our opinion after a comparatively robust few months navigating tariff and geopolitical storms, now tech shares are poised to see one other 10%+ transfer greater within the second half of 2025 led by the tech winners on this ‘golden age’ for the tech world,” they added.