Alliance Implosion, Trump-Xi Speak, Jobs Day 6/6/25
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I'm Frank Holland, and you're listening to CNBC's Worldwide Exchange. Our show is live weekdays at 5 a.m. Eastern. Listen in.

The gloves come off. The relationship between the president and Elon Musk, it implodes in a spectacular and a very public way. The attacks personal, the cost to Musk, it is immense. The feud overshadowing a major market event and President Trump's first call with China's Xi Jinping on trade. More high-level talks, they're being promised. Investors, they're just kind of absorbing all of it ahead of today's critical jobs report. The futures, they're bouncing back.

It's Friday, June the 6th, 2025. This is Worldwide Exchange on CNBC and streaming on CNBC+.

Good morning. Thanks so much for being here with us. I am Frank Collins. Get you ready for the trading day ahead. We'll begin with the U.S. markets. The S&P and the Nasdaq breaking a three-day win streak as investors are considering that call between Trump and Chinese President Xi Jinping that the president described as good. Take a look at futures right now. You can see we're higher across the board, all three indices up right around a third of a percent. The Dow looks like it would open up about 150 points higher. And then we got the big thing that happened, the big thing that happened in the last 24 hours.

The fallout from the war of words between President Trump and Elon Musk really continuing this morning. Here's what the president said yesterday about the Tesla CEO who has ramped up his attacks against the so-called big, beautiful bill.

I'm very disappointed because Elon knew the inner workings of this bill better than almost anybody sitting here, better than you people. He knew everything about it. He had no problem with it. All of a sudden he had a problem and he only developed the problem when he found out that we're going to have to cut the EV mandate because that's billions and billions of dollars and it really is unfair.

And President Trump with him post on Truth Social in part, not reading the whole thing, but he says he doesn't mind Elon Musk turning against him. Then he claims the bill is going to lead to a record cut in expenses if it's passed and that taxes would increase by 68 percent if it's not passed. Two very important notes here. The Congressional Budget Office says the bill will increase the deficit by two point four trillion. And we still don't really know the final version until and really if it passes the Senate. But some strong words from the president on Truth Social.

So big impact for Elon Musk's personal wealth and, of course, Tesla stock in the wake of this back and forth. Tesla stock dropping double digits yesterday, really erasing a month of gains. I mean, you're seeing it right here. It's higher this morning. You can see right now Tesla shares up about 5%. But Musk himself, he lost about $35 billion in personal wealth, second biggest drop ever following his uptick.

other laws from back in 2021 and the battle between Trump and Musk also apparently having an impact on SpaceX and XAI. The president threatening to cancel Musk's contract with NASA. Take a look. We use Forge Global to track the value of these private companies. It's directional. It's not exact. But you see here the orange one, that's XAI. You're seeing a bit of a dip right there. Surprisingly, SpaceX seeing a bit of a pop. It dipped yesterday. So give you a directional sense of the impact even on Elon Musk and his private businesses.

Okay, that is your setup. Now, we're also looking at the reaction from the Beltway and even more developments in the last few hours. NBC's Chris Pallone, he's in Washington with this. Feeling like a bit of a mix of NBC and DC and a little TMZ right now, Chris. A lot going on.

Yeah, it really is, Frank. Good to be with you, my friend. And this was something to watch unfold in real time, wasn't it? You know, ever since leaving the White House last week, Elon Musk has been very critical, as you said, of President Trump's so-called big, beautiful bill, that spending and tax cut bill that's now winding its way through Congress. Yesterday, after days of silence, President Trump finally responded, essentially accusing Musk of being upset because the bill does not include any incentives for

for people to buy electric cars. That absolutely set Musk off posting on his social media platform, X, posting more than 40 times in all, culminating with Musk writing yes on a tweet that said that President Trump should be impeached and replaced by J.D. Vance. But today there are signs that the two sides might be trying to make peace. Politico reporting the

President seemed to brush off the fiasco in a phone call they had with him. And the White House aides apparently have set up a phone call with Musk today to try to end the conflict. After threatening to kill the Dragon space capsule, Musk looks like he walked that back

in a tweet last night. President Trump, of course, had threatened to take back all the government contracts that Musk's businesses have. And so on Capitol Hill, Democrats are absolutely reveling in this split, saying that Musk is absolutely right and the Congressional Budget Office is right, that this will add to the budget deficit. One Republican lawmaker said that Musk has lost his mind.

Frank. Yeah, a lot of drama there, Chris. So very quickly, you're mentioning that some aides are trying to like, I guess, bridge this rift between the two sides. Any expectations or any thoughts about a call between the two men?

Yeah, so that apparently is going to happen today. And it looks like some behind the scenes reporting is that the aides were able to kind of calm the president down a little bit and try to deescalate this. Obviously, a rift like this is bad for both sides.

And so it's in their best interest to kind of squash this at this point. But we'll see if it happens. You never know when big egos are involved. Yeah, we'll have to wait and see for these latest developments. Chris Pallone, live in D.C. Always great to see you, Chris. Thank you very much. Turn our attention now back to the broader market. Stock futures, as we mentioned, moving higher in the wake of yesterday's call between President Trump and China's Xi Jinping, his first since taking office. We had a very good talk.

And we've straightened out any complexity. It's very complex stuff, and we straighten it out. The agreement was we're going to have Scott and Howard and Jameson will be going and meeting with their top people and continue it forward. But, no, I think we have everything. I think we're in very good shape. Our Eunice Yoon joins us now from Beijing with a look at what's coming up next. Eunice.

Thanks, Frank. Well, the truce is still on. But from the Chinese perspective, these were the key takeaways from that conversation. From the Chinese perspective, they believe that the president, Xi Jinping, appeared very tough, repeating that the U.S. should remove the negative measures that are directed towards China. The Chinese also see that they potentially got a shift

in policy, a softening in policy when the readout said that President Trump said that the US loved Chinese students coming to America. And then finally, there is a belief that the Chinese were able to really stand firm on their rare earth export curves by saying that China seriously and earnestly was executing the Geneva deal. And in that deal,

uh the chinese had pledged to lift non-tariff barriers one of them was for some rare earths metals now the uh hall has really sparked a lot of discussion here within the international business community about those rare earth curbs and the potential impact that they are having on u.s industry the american chamber of commerce said that 75 percent of those affected

say that their stock is running out in three months. They also said that some Chinese exporters to U.S. firms have gotten approvals for six-month licenses, but that it's very unclear the timing, the type of rare earths, and including whether or not some of those were the rare earths named in the Geneva deal. The EU Chamber of Commerce also has echoed some of those concerns, saying that the Chinese rare earth curbs are slow and they lack transparency. And

And, Frank, President Trump himself had said -- referenced those rare earth curbs, saying that he believed that the rare earth curbs process is very, very complex.

So, Eunice, I mean, I have to ask. Obviously, there's some much bigger issues on the table here when we're talking about trade between the U.S. and China. But this rift between President Trump and Elon Musk obviously getting a lot of headlines making global news. We've seen China and Xi Jinping himself kind of do a goodwill tour around Asia, trying to basically reach an olive branch out to a lot of the nations that may be feeling some stress from the reciprocal tariffs and other things. Is China reaching out to Elon Musk? Are they trying to do anything with some of his other businesses that may be impacted by this fight?

I think it's early to say, but the rift between President Trump and Elon Musk has definitely gotten a lot of attention here. In fact, we've been seeing some memes of President Trump leaning over a Tesla, like the same red one that he purchased at the White House, and then putting a sticker on it.

saying that this is the Tesla that I bought before Elon Musk went crazy. So there's a lot of discussion here. People are watching it very closely. And I would say from just general public perspective, people are more amused because it's not necessarily something that they are dealing with directly. Our Eunice Yun live in Beijing. Eunice, always good to see you. Thank you very much.

We have a lot more to come here on Worldwide Exchange, including more on the Trump must stock fallout and a bull bear debate over the future of Tesla. We got Dan Ives and Sarah Kunst here. Plus, with a critical jobs report on deck, we're going to be speaking with Milken chief economist Bill Lee. And then later, Senate Republicans are just going to forge ahead on Trump's big, beautiful bill, despite opposition within their own party and the risk it may pose to cities all around the country.

Former New Orleans Mayor Mark Morleyow, he's here to weigh in. A very busy hour still ahead when Worldwide Exchange returns. Stay with us.

Stripe is the go-to choice for AI companies, from early-stage startups to scaled enterprises. 78% of the leading AI companies use Stripe to go to market quickly and scale globally. That includes pioneers like NVIDIA, OpenAI, and Perplexity. Stripe has developed cutting-edge tools to improve everything from fraud detection to checkout optimization. Whether you're aiming for incremental gains or planning for enterprise transformation, see how Stripe can help at stripe.com.

Don't just ride the index, seek to outperform it with FELC, the Fidelity Enhanced Large Cap Core ETF. Unlike passive ETFs, FELC is run by a team of experts to adapt to market conditions and pursue upside potential wherever it's hiding. And

And while you get the potential outperformance of an actively managed fund, you can still buy and sell it on your terms, just like any other ETF. Discover FELC, the Fidelity Enhanced Large Cap Core ETF, part of Fidelity's suite of active ETFs. Learn more at fidelity.com slash FELC.

Before investing in any exchange-traded fund, you should consider its investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus, an offering circular, or, if available, a summary prospectus containing this information. Read it carefully. While active ETFs offer the potential to outperform an index, these products may more significantly trail an index as compared with passive ETFs. Fidelity Brokerage Services, LLC. Member NYSC SIPC.

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Welcome back to Worldwide Exchange. Take a look at the S&P 500 pre-market leaders and laggers. We're going to start off with the leaders. Tesla shares bouncing back up more than 5% after dropping as part of that Elon Musk, President Trump view. We're going to talk much more about that throughout the show. Palantir, those shares up almost 3% as well. And then the laggers, Lululemon, your biggest lagger in the pre-market, falling more than 20%, almost 21%. They cut four-year guidance.

having a lot of issues when it comes to tariffs and also some demand issues. Also, you're seeing on there Broadcom, another earnings mover. Strong results, even gave some strong current quarter guidance, but clearly investors a bit disappointed. We're going to talk more about that as well later in the show. Broadcom shares pulling back more than 4%.

All right. Turn our attention now back to the markets in the event of the day outside that battle between President Trump and Elon Musk. The May jobs report out at 830 a.m. Eastern. It's likely to show that hiring slow considerably as companies, they struggle with headwinds from tariffs, but maybe not enough to push the Fed to cut its rates anytime soon. Nonfarm payrolls, their forecast arise by one hundred and twenty five thousand compared to one hundred and seventy seven thousand back in April.

unemployment expected to hold steady at 4.2 percent for the third straight month and wages. They're expected to rise by three tenths of a percent. Let's talk much more about this now with Bill Lee, chief economist at the Milken Institute. Bill, good morning. Great to see you again. Hey, Frank. Thanks for having me. All right. So, Bill, give us a sense when you're looking at this. What are the ramifications of this job report? What do they show and what do they potentially mean specifically to the Fed?

Oh, this job report is absolutely critical because all this uncertainty going around and people talking about cutting back on payrolls and cutting back on output and cutting back on investment, all the talk about cutting back has yet to show up in the hard data. And the most important piece of hard data for the Fed is going to be the jobs report. And let me say that, you know, you mentioned that there's a drastic slowdown from 177 down to 125. But 125 is more than enough to keep the unemployment rate steady at its current level. In fact, you can even go below that to closer to 100,000.

So I think the labor market and the economy in general is doing very well. GDP numbers show that domestic final sales, if you knock out the imports, has been growing at 2.5% in real terms. Those are fantastic growth rates. All right, so just in all fairness, 4.2% is historically a relatively low unemployment rate, but the unemployment rate certainly ticked up in the last couple of months or the last year or so. So you're mentioning that 125,000s

strong enough to keep it where it's at. But directionally, what do you think about what's going on? On CNBC, our colleagues put out a great article about layoffs accelerating. Procter & Gamble, 7,000 jobs. Microsoft, several thousand jobs as well. We are starting to see layoffs. How does the Fed view something like that?

I think the Fed's going to have to tease it out between cyclical layoffs because of the economy slowing down and because of layoffs because of technology. We already have a steady softening in the market for programmers and a lot of AI people because the AI itself is doing so much of the entry-level work. Even mid-level people are starting to feel the pressure. So I think

There's a there's a secular downtrend in the employment levels that are needed to sustain businesses. But the Fed is going to have to tease that out from just a typical downturn. All right. So we also got the Beige Book and I know it's backwards looking, but I think economists like yourselves, you always point out that it's backwards looking, but it gives us some insight into how the Fed's viewing things.

They're seeing rising prices. They're seeing hiring slowdowns. We're talking about layoffs, but also just hiring slowing down in general. How concerning is that when we're talking about that dual mandate of keeping prices steady, but also full employment?

It's concerning because people are so nervous about the state of the economy, a lot of it because of talk about tariffs. But again, the Beige Book is part of that pack of soft data that is so contradicted by the actual hard data that comes out. Job openings, for example, the latest JOLTS numbers show that job openings did not show that kind of drastic fall off, nor did it show any kind of increased layoffs.

So, again, the hard data, which the Fed based decisions and policymaking on, has yet to show the fears in the soft data. All right. Here's the question we really need your expertise for. The president, Xi Jinping, had a call yesterday. We don't really know how it went. We don't know what's going to happen next. But hypothetically, how does a potential China trade deal, how does it deal when it comes to tariffs for other countries? How does it change the math when it comes to the Fed?

Oh, this is just going to be a huge game changer, Frank. This is the most important event yet to come, because what we're trying to do is reshape the global trading system. And we're talking about the number one and number two largest economies in the world setting up an agreement that will be a template for the rest of the world. So this is going to be the real game changer. If we can get this deal done, I think it's going to be, you know, onwards and upwards. But

but that uncertainty about whether or not we can get the deal and get all the peripheral stuff like the rare earths and other things in place, that's the big holdout against any kind of forecast for things resuming at any kind of normal pace. All right, Billy, we've got to leave the conversation there. Always good to see you. Thank you very much. Thank you for having me.

All right. This morning, we're also tracking ETF flows that are now over $449 billion year to date. We're also looking at the moves above and below the 30-day moving averages for the popular index funds like the SPY and the QQQs. This week, investors, they mostly moved away from these ETFs with a high concentration of mega cap tech. As you can see, yesterday was really the exception. Top inflows this week were into ETFs that hold treasuries and investment grade bonds. Northern Trust says

After the ECB's latest rate cut, it also expects increased flows into the NFRA. That's a global infrastructure ETF. Especially in this market environment where rates are falling outside of the U.S., that's a benefit for infrastructure. And having that global exposure gives you areas of the market that if you're just confined to the U.S., you're not tapping into in this environment.

Top holdings in the NFRA include telecoms like AT&T and railways like Canadian Pacific. You see year-to-date that ETF, the NFRA, is up just about 13%. All right, still on deck here at Worldwide Exchange. We've got your big money movers and a kind of a rough morning for chips and yoga pants. We just hit it a short time ago. We're going to get much more into it coming up. Lululemon shares pulling back more than 21%. Broncom down nearly 4%. Stay with us.

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All right, welcome back to Worldwide Exchange. Time now for your big money mover. As we start off with Broadcom, you can see shares are lower, down about 3.5% or so, but off their lows in the morning after the company reported second quarter results that were slightly better than expected. Current quarter guidance was also roughly in line, and on the call, CEO Hock Tan says AI chip demand may pick up during the second half of fiscal 2026 due to strong inference demand or the process of generating answers from AI models. Broadcom shares pulling back just more than 3.5%.

Shares of Lululemon, they're just tumbling this morning. The company cut its profit outlook for the year, higher cost, offset U.S. tariffs, and also seeing some tepid demand for its latest products, failing to draw shoppers away from athleisure rivals like Vuori. I think that's how you pronounce it, Vuori. Lulu saying it's planning to take a strategic price increase on a small number of items. Lululemon shares, they're down more than 21%.

DocuSign's first quarter earnings and revenue beating forecast, but shares are lower as billings fell short of estimates. The company is also trimming its outlook for that closely watched metric for the full year. Shares of DocuSign also dropping nearly 19%.

All right. Turn our attention now to the race around artificial intelligence and the booming demand for data centers. The New York Times this week highlighting how Wall Street is all in on data centers, but at the same time raising the question of whether there could be a bubble taking shape. The Times pointing out how investment giants like Blackstone, KKR, BlackRock, they're all vying for a piece of that action. With that, let's bring in Abhijit Dube, CEO of NTT Data, which is one of the world's largest data center providers. Abhijit, good morning. Thanks for joining us.

Frank, thanks for having me back. All right. So TD Cowen just recently came out with a note seeing an oversupply when it comes to data center. You have so many big customers, global customers like L'Oreal, UPS, BMW, Salesforce. What are you seeing? So, Frank, we operate in the data center market segment, which is inferencing for enterprise customers.

not in the training for frontier models. And that's a critical difference to understand, because as we go forward to really get value from AI, it's not about the frontier model training. It's actually much more about the inferencing of the models within the enterprise context. So we remain pretty bullish on the market segment of AI data centers that we operate in.

When we're looking at how you're operating those data centers, what are you seeing when it comes to chips? In some quarters, we're seeing some companies say that they had more demand than they could actually meet. Are you having issues getting chips? And what about pricing? Is that prohibitive in any way to what you want to do? Yes, indeed. We still have a demand supply imbalance where demand is ahead of supply right now.

Oh, pretty short and sweet answer there. One thing I want to ask you about, we were just talking about ETFs a short time ago. One of the things that was kind of hit on there is that the central bank cuts outside the U.S., the Fed's not cutting rates, it appears anytime soon. But we saw the ECB cut rates. We also saw India's central bank cut rates. How does that impact your business when it comes to your global customers?

So we're the third largest data center provider. We put about $3 billion of capital into our data centers every year, which means that we are making long-term strategic bets across countries and currencies into our data centers. The three most central banks that have the most exposure for us in terms of our debt financing are the Fed, by far number one, the ECB next, and the Bank of Japan, the third.

And so that influences how we structure, refinance and stagger our debt across currencies. So any easing in the Fed, in the interest rates environment will actually positively impact us in the short term. But longer term, we are taking a much more of an asset light strategy to move to a REIT sort of model. All right, Abhijit Dube, great to see you as always. Thank you very much for joining us. Have a great day.

Thank you, Frank. Appreciate it. All right. As we had a break, we're watching shares of Microsoft looking at yesterday's gains after seeing its first record high close since July. Taking a look, shares up about a third of a percent right now. The stock's currently riding a six session win streak. It's longest since December. It's now up more than 30 percent since this 2025 low that it hit back on April the 8th. We're back right after this.

The President: Elon gave an incredible service. Nobody liked him. He's an incredible patriot. The good news is that 90 percent of the country knows that, and they appreciate it, and they really appreciate what he did. I thought I'd give it to Elon as a presentation from our country. Thank you, Elon. Take care. Elon Musk: I expect to remain a friend and an advisor. And certainly, if there's anything the President wants me to do, I'm at the President's service.

What a difference a week makes. That was President Trump and Elon Musk at the Tesla CEO's farewell event at the White House less than 10 days ago. The former allies turning into bitter rivals seemingly overnight. The fallout from Musk very quick and very expensive. Welcome back to Worldwide Exchange. I'm Frank Holland. Coming up with Tesla stock tanking in the aftermath of that public fallout with the president. Longtime Tesla bull Dan Ives, he continues to make the case for the stock.

But first, we're going to get you ready for the trading day ahead. We begin with the U.S. markets, the S&P and the Nasdaq, both of them breaking the three-day win streak as investors are considering that call between Trump and the Chinese President Xi Jinping that the president, he described as good. Take a look at futures right now. You can see they're in the green across the board right now. It looks like the Dow would open up about 150 points higher. Also, we'll look at bond yields this morning, taking a look at those.

We're seeing the benchmark right now come in at four point three eight percent. Still kind of a stand where it was right around the levels that we saw yesterday. The two year right now, three point nine one down here in the long line at four point eight six. So not too much movement in the last few hours. Also, we're tracking the real story, the big story of this morning, kind of global news, the fallout and that war of words between President Trump and Elon Musk really continuing this morning after threats of impeachment, contract cuts.

and even allegations tying the president to Jeffrey Epstein. The latest developments, there are some signs, the two sides, they might be trying to make peace. Politico reporting that President Trump, he kind of seemed to brush off the fiasco in a phone call, and the White House has its aides trying to set up a phone call between Elon Musk and the president today, really to try to end this conflict. And after threatening to kill the Dragon Space capsule, Elon Musk walking back that threat in a reply to one ex-user.

For all this, though, the president making his position on Elon Musk pretty clear. Speaking from the White House yesterday. I'm very disappointed because Elon knew the inner workings of this bill better than almost anybody sitting here. Better than you people. He knew everything about it. He had no problem with it. All of a sudden he had a problem and he only developed the problem when he found out that we're going to have to cut the EV mandate because that's billions and billions of dollars. And it really is unfair. All

All right. So, again, reports this morning, the two sides are trying to make up. But yesterday, the president posted on Truth Social in part. He doesn't really mind Elon Musk turning against him. The president also claims that the bill, the Big Beautiful Bill, is going to lead to a record cut of expenses. He also says if the Big Beautiful Bill isn't passed, that taxes will increase by 68 percent. We're just reading part of that Truth Social post. Very important to note, the Congressional Budget Office says the bill will increase the deficit by $2.4 trillion.

And we still don't know the final version of the bill until it passes Senate, if it passes Senate. So big impact for Elon Musk and his personal wealth, as well as Tesla stock in the wake of all this back and forth. Tesla stock had dropped double digits yesterday, really erasing a month of gains.

It's higher this morning, as you can see, up nearly 5%. Also, Elon Musk losing just about $35 billion in personal wealth, one of the biggest drops ever following another loss from him back in 2021. We are also seeing that the battle between Trump and Elon Musk is apparently also having an impact

On SpaceX and XAI, the president again threatened to cancel Elon Musk's contracts with NASA. Take a look. We tracked both of those companies through Forge Global. This is really directional. We want to make sure we emphasize it's directional. But you see the orange line, that's XAI, apparently taking a bit of a dip here. SpaceX, however, after a dip yesterday, seeming to rebound in the private markets. Again, really directional from Forge Global. Not exactly. You shouldn't read into the numbers very specifically.

Okay, that is the setup. Now let's talk more about the fallout and the feud between President Trump and Elon Musk, especially for Tesla and the rest of Musk's business empire. Joining me now is Dan Ives.

Global head of tech research at WebBush Securities and Sarah Kunst, managing director at Clio Capital. Good morning to both of you. Thank you so much for joining us on a day like this. Dan, I got to come over to you first. Your price target on Tesla, 500. That's about a 60 percent increase from where it sits right now. Do you still see that possibility with this war of words between the president and the Tesla CEO?

Yeah, look, Frank, I mean, obviously, you know, friends that are fighting here, but I think they're going to be able to resolve this. I mean, my view, the autonomous, the regulatory future does not change because of this. And I think Trump will ultimately be positive for Musk, for the autonomous future.

Look, it's a little frenemy situation that's going on here between Musk and Trump. I think it will be resolved. This does not change my medium. Long term view remain very bullish. And I think way, way oversold Tesla yesterday.

All right, Sarah, coming over to you. Dan continues to be a bull when it comes to the stock and the EV maker, but a lot more at stake than just EVs when we're talking about Tesla. We're talking about robotics and autonomous driving. What's your take on this spat? And some of the things that Elon Musk honestly just said on social media, what do you think that means for the businesses outside just the EVs?

You know, I think that that is really where the concern is going to lie. The reality is that if you are valuing Tesla as a car company, you would be valuing it at kind of a six or seven P.E. ratio, similar to a GM or a Toyota, not the sort of hundred and sixty that it is right now. And and so that's a huge discount you have to take if you just think they're making cars. So the story that's been sold around robots is

I find it hard to believe that they're anywhere near ready, not to mention that we've seen what China's doing with robots, what other big tech companies are doing. It doesn't seem likely that Tesla is going to be the early winner in that space, nor do they have buyers lined up. And the same with the self-driving cars and the cyber taxis. Waymo is really far ahead, way far ahead there. And it is not clear what this June rollout is going to look like. And so

I think that if you if you don't believe that Tesla has some sort of magical regulatory capture, it's really, really, really hard to feel good about where the valuation stands now. And I think even the Wells Fargo, that sort of hundred and something low price target right now on the street is probably too high if it's trading on real multiples. Yeah, right now we're looking at the current multiple Tesla trading at about 132 times forward earnings, as you point out, you know, legacy automakers at a

a significantly lower valuation jam at about five times for it at about eight and a half times right now. So, Dan Ives, I want to come back over to you. One of the things that these two sides are fighting about is the removal of EV credits in the so-called big, beautiful bill. How big of a deal is that really for Tesla? It seems to be one of the critical kind of points of contention between these two gentlemen. When we're talking about the stock and the future of the EV business, how big is it?

Yeah, well, again, first, I just say to Sarah's point, I mean, haters always hate on Tesla, and they've been wrong for the last decade, right? So calling Tesla a car company, it's like saying Steph Curry is just a basketball player, you know?

You know, in terms of that sort of my view, Scheffler is just a golfer. And in terms of the EV tax credit, look, that continues to be something we've already assumed that that goes away. It's a hit. But ultimately, I mean, Tesla is hurt less than the traditional car companies, GM, Ford's and others. And I think

It's all about autonomous and robotics. I think it's worth a trillion dollars. And I think Waymo Essential will be at the kids' table when it is all said and done as they scale out over the coming years with CyberCab and Robotaxi. So...

Number one, I think we're past a hater situation, Dan, in all fairness. This is beyond haters. This is some real issues potentially when it comes to regulation. I mean, that's why the stock ran up after the elections, that people thought it would be a friendlier regulatory environment. And just in all fairness, our Philip Boe did some great reporting on this, on all the different government agencies that touch some of the different businesses that Elon Musk is in. Not only does it impact self-driving, but also, you know, the space program, you saw them fighting about that.

If there's any change to regulation beyond EVs, if it's some of the other businesses, and Elon Musk has to put his attention over there, doesn't that potentially hurt the stock? And isn't that going beyond just hating?

Yeah, and Frank, great point. And my point would be it's all about autonomy. In a softer regulatory environment for autonomy. I remember next week is when it launched in terms of Austin, the start of this. And I just believe under Trump, it's going to be a softer regulatory environment for autonomy, which is bullish for Tesla. And I do not believe this frenemy situation that's going on today. I think it gets resolved and they become friends again. And I just think that that bromance

is not ending because this little spat. All right, Sarah, coming back over to you. Obviously, Elon Musk has a lot of big time investments and companies in the private market as well. As we're looking at those private company investments, we're showing the Forge Global moves. And again, that's directional. You shouldn't really look at the percentages more directional. Does it change your view when we're talking about an XAI? Does it change your view when we're talking about a SpaceX, about the valuation and the possibilities?

I think that SpaceX is really at risk here as well. You know, they, one, already have brought that into their fight. And the thing to remember about, you know, Elon likes to have fights when you look at his track records with his companies and even people like Peter Thiel that he's really close with, he's also been really not close with at times. He can sort of have that rupture and repair, to use my therapy speak,

Trump isn't so great at that. We don't usually see Trump have these huge knockdown drag outs and then go back to everything like it's normal unless he's doing a guest spot on WWE. And so I do think that this is going to stick with Trump, even if Musk gets over it. And in SpaceX, that's a huge risk because even though their Starlink business is much bigger than sort of the business of, you know, Dragon and

taking people to and from the International Space Station, the reality is that if regulators say, hey, you can't do this, NASA doesn't wanna work with you anymore, we're not renewing these contracts because there are other companies that can fulfill some of these contracts, that's not good for SpaceX. And I think a lot of the value that people are kind of giving Elon a pass on with X and the related X companies is because of their faith in the value of things like SpaceX and Tesla.

Most of those private investors have exposure across the portfolio of Musk companies. And so if Tesla is going down, if SpaceX doesn't have regulatory support and there's questions about its sort of long-term longevity with huge space programs, I think that that is a huge risk for everything Elon touches.

So Sarah, we're going to give Dan the last word, but very quickly, what's your view on the stock? It's up 5% right now in the pre-market, bouncing back after a big drop yesterday. But what's your view on Tesla stock?

Tesla shareholders largely who've been buying this year are retail bag holders. They have diamond hands. I would not bet against them. You won't find me shorting Tesla. That being said, I hope that they get out at the top because these are not Wall Street. This is Main Street. Dan, I see you making some faces. I'm going to ask you the same question. I know you're not changing your price target.

But so I know how you feel about Tesla, but what about its competitors? What about the rest of the EV landscape? Are there other winners out of this spat? Do other EV companies benefit from this?

Well, first, I think Sarah brought up a great point. When you talk about WWE, I mean, it's possible Musk and Trump are not watching this from the seats. They could be in the ring soon, right? So you don't know where this is all heading. Look, I think when it comes to others that could benefit, I mean, obviously it's going to be, you know, does BYD benefit in terms of some of these situations when you think about China? Do some of the traditional players? Has Waymo benefit, you know, in terms of Alphabet? But I just believe that the

The top of the mountain in terms of autonomous, I think it's Tesla's world, and everyone else will be paying rent over the coming years. All right, we've got to leave the conversation there. Dan Ives maintaining his price target on Tesla of 500. Sarah Koontz, thank you very much. Great to see you both. All right, coming up here on Worldwide Exchange, local economies around the world bracing for the impact of President Trump's big, beautiful bill and the spending cuts that could come with it. Former New Orleans Mayor Mark Morial, he's here to weigh in. Coming up next, stay with us.

All right, welcome back to Worldwide Exchange. Turn our attention back to Washington and the Senate looking to push ahead on President Trump's big, beautiful bill with a 4th of July deadline. That's despite some vocal opposition within the Republican Party. I'm really glad that Elon is speaking out and speaking out on debt, saying we need to show fiscal responsibility in this bill. I hope the result of Elon's comments is we see the Senate step in and make this bill much, much better.

Join me now on the trickle-down effect of the so-called... One big, beautiful bill was not the best idea. We should have done what John Thune always wanted to do, split this up into multiple parts. Join me now on the trickle-down effect of the so-called big, beautiful bill and the impact of the White House agenda on cities across the country is Mark Morial, National Urban League president and CEO, also the former mayor of New Orleans. Mark, good morning. Thank you for joining us. Hey, Frank. Good morning. Thanks for having me again.

So what's your view? Again, I think it's very important for the audience to know we don't know the final bill. It still has to get through the Senate. But from what you're seeing and you're hearing out of D.C., what are your big concerns when it comes to this big, beautiful bill? That this bill is going to disinvest in local economies. Already you see with substantial layoffs in the capital region of Washington, Baltimore, Virginia, you see many, many people

people out of work. That means they're spending less. That means they fall behind on their mortgages. It means they can't take care of their basic expenses. I think it's important to understand that the bill, as currently constituted, would significantly disinvest in local communities, big cities, small towns, by cutting back on programs, by cutting back on the safety net. It's going to have a negative economic effect.

When you combine it with two things, one, the tariffs being imposed by the administration, which raises the cost of goods for so many Americans, and it raises the cost of inputs for many small business owners who import the things they sell in the United States from Asia or from South America or from Canada.

It has an impact on those small businesses and therefore decelerates the economy. And the third thing is the retaliatory tabs, which are hammering the agriculture sector so that those farmers that are used to selling their grains and their agricultural products abroad aren't

aren't going to sell as much because of the retaliatory tariffs or it's going to be more difficult for them to sell. These three things combined, combined is where you'll see the impact. So the budget... Mark, let me jump in just for a second. You have a list of a few things you're concerned about. Clearly, you have a number of concerns. You don't see it as a positive.

I want to get a little bit more specific. One part of this bill potentially are salt deductions, potentially going from about 10,000 up to 40,000. What do you think that means for people living in big cities around the country? I mean, specifically, you know, your hometown of New Orleans. What would that mean to see that salt deduction? So that part of the bill, the reversal of what they did in 2017 is something I support because I don't think people should pay a tax on a tax.

I don't think the federal government should tax the money you pay to state and local governments. I've believed that since 2017. And I think to reverse that would be a good thing. Some people believe it benefits only certain Americans. I believe what it does is it creates a fundamental playing field where you don't pay a tax on a tax.

What about the what we like to call the Trump tax cuts? The president posting yesterday on True Social, if this bill doesn't pass, taxes increase by 68 percent. Part of its personal taxes is also business taxes. Do you have do you have differing views when it comes to the individual taxes? Absolutely. OK. I think, Frank, that the tax bill that the president has proposed, 75 percent of the benefits go to the top five percent of Americans.

Substantial benefits go to the 813 billionaire Americans. We've proposed a better idea. Why not cut taxes substantially for Americans who make less than $100,000 a year? Those that make $100,000 a year in this bill are going to get crumbs.

while others get substantial cuts. The bill is imbalanced. It's not going to benefit working people. And I think the details around what the tax cut have not been discussed. People are using talking points. They're using spin. The real thing, when you get into the details, the benefits go to the wealthiest Americans. Eighty-five percent of Americans make less than $100,000 a year.

60% of households make less than $100,000 a year. If you want to do something, as we think at the Urban League, for those Americans, let's cut taxes for them and let's make billionaires pay their fair share. All right, Marc Morial, thank you very much for your time here. You've got to come back as this continues to develop. We really appreciate your time and your insight on this matter. Thank you again. Good luck with the show, Frank. All right. Thank you very much, Marc. Good to see you.

All right, coming up later today, we're also going to hear from House Speaker Mike Johnson on all of this coming up at Squawk Box. Becky and Joe, I'd imagine it's going to be a very interesting conversation coming up at 8, 10 Eastern time. Coming up, quite the conversation ahead. All right, ahead here on Worldwide Exchange, though, the one word that every investor has to hear today and the stock pick that every investor needs to know. Plus, the stablecoin play surging for a second straight day. We'll be right back with that and much more. Stay with us.

We've seen really, really tremendous demand from phenomenal investors that I think see what we see, which is that the internet is entering a new chapter and it is the chapter of upgrading the financial system with stablecoin money and with all the other things that are coming that can be built up around this.

Welcome back to Worldwide Exchange as we close in on the 6 a.m. hour. A check of a few big stories that we're following this morning. Shares of stablecoin company Circle. They're higher again this morning after surging in their first day of trading. The shares were priced at $31. They opened up at $69. Right now you can see shares of Circle. They're up nearly 15.5%. You can see some movement in the pre-market.

Harvard won a temporary reprieve after a judge ruled the government cannot ban new international students from entering the U.S. despite the president's proclamation saying so, at least for now. The judge said Harvard would face immediate and irreparable damage if the proclamation went into effect, a hearing on the matter set for June the 16th. President Trump and Canadian Prime Minister Carney have reportedly been in direct talks trying to hammer out a trade deal as some Canadian officials hope some sort of an agreement can be reached before the G7 summit in Canada on June the 15th.

Broadcom shares are lower this morning, despite second quarter results that were slightly better than expected. You see it's down about 3.5%. Third quarter guidance was also roughly in line. Shares of Lululemon, they're falling sharply as the company cut four-year profit outlook, citing higher costs to offset tariff. Shares of Lulu down more than 21%. And also DocuSign's first quarter results

Those beat estimates, but shares are lower this morning as well. Billings, those missed estimates. And the company is also trimming its four-year outlook for that closely watched metric. Shares of DocuSign, they're down just about 18 percent. All right, coming up here on Worldwide Exchange, we're going to turn back to Broadcom and the case for buying the dip today. We are back with Freedom Capital Markets' Jay Woods coming up right after this. Stay with us.

Worldwide Exchange markets coming off a pretty volatile session as investors grappled with positive U.S.-China trade news, the hawkish ECB decision and weak economic data, as well as the very public dust-up between President Trump and Elon Musk and all that before today's headline event.

The May jobs report feels like we haven't really talked about it. With that, let's bring in Jay Woods, chief global strategist at Freedom Capital Markets. So much going on, Jay. Let's start off with your word of the day. Why is it your word of the day? What do you think about this Elon Musk and Trump dust up? Just get into the word of the day is exhaustion. I mean, just the headlines, just this intro was exhausting. Every time we turn around, there's something. The reason I chose the word was because I think the market is.

is getting a little exhausted as well, and we should see a pause here. But given the news cycle, given everything we're going through, I think it's a perfect word for a Friday in the summer. Let's get to your pick because it's one of the big movers in the pre-market today. It's Broadcom. Shares are down despite current quarter guidance being in line and results being relatively good. Why do you think investors aren't happy?

Well, I don't know if investors are unhappy, but what they do is they don't guide. They don't give this rosy outlook all the time. And the guidance was tepid. It was OK. And then the stock had a tremendous run up going into earnings. It broke out. So, you know, me, a technician, it broke out to new highs ahead of earnings. It's retracing. Where is it retracing? It's retracing right back to 250 where it broke out from. I think it's giving investors an opportunity to get into the stock. But

seeing the market seeing exhaustion, the stock was a little overbought and now it's pulling back. It's taking a little bit of a rest like I think this market will do. So for me, Broadcom over the long term is a great stock to own. They don't talk enough. Do you own it? I do not. I do not. But I wish I did a long time ago. It's only up 85 percent over the last 52 weeks.

But it's a stock that over the long term is great. They don't talk enough about the software side of it. That acquisition of VMware, creative to the bottom line this year, just this quarter, not really being focused on because it's the AI story, the AI spend. But what they're doing at Broadcom continues to slowly, steadily increase. And technically, it's phenomenal. You like Broadcom. Despite the fact it's down about 3.5%, you like it. Got that. What about Tesla? It's not going to be an easy answer.

Also, give us the technical take. This is a stock. Does it have a technical thesis or does it simply trade off posts and tweets? Well, no, no. It definitely has a technical thesis. But yesterday was more of a crash. It was the worst day in the history of the stock. The drama. It was days of our lives in real time on Twitter. It was crazy. So it.

I wouldn't want to jump into these waters. If you're trading Tesla, you have to be on top of every single move. But it's going to recapture the 50-day moving average. So we look at it technically. If it does not close above that, if this feud goes on, watch 220 as the next support level. It was only at 220 back in April. Viable dip, yes or no?

I would avoid it. All right, there we go. Jay Woods, we're going to leave the conversation there. You're a pick. Broadcom. Before we let you go, we're going to take a look at U.S. stock futures right now. As we mentioned, the stocks are coming off their first down day in the last four sessions. Right now, futures in the green across the board. That looks like it would open up about 140 points higher. That does it for us. You've been listening to CNBC's Worldwide Exchange. You can always catch us live weekdays at 5 a.m. Eastern.

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