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cover of episode Tax Bill Test, Huang: Curb "Failure," Consumer Check 5/21/25

Tax Bill Test, Huang: Curb "Failure," Consumer Check 5/21/25

2025/5/21
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Worldwide Exchange

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People
A
Alice Barr
B
Brian Cornell
C
Craig Johnson
E
Elon Musk
以长期主义为指导,推动太空探索、电动汽车和可再生能源革命的企业家和创新者。
E
Emily Wilkins
一位专注于商业、政治和政策交叉领域的获奖记者,现任 CNBC 华盛顿特区分局记者。
E
Ernie Garcia
F
Frank Collins
J
Jensen Huang
领导NVIDIA从创立到成为全球加速计算领先公司的CEO和联合创始人。
J
Jerry Storch
J
Juliana Tattlebaum
K
Karim Busta
N
Nikesh Arora
R
Rashawn Williams
S
Silvana Hanau
T
Tiffany McGee
W
Waymo Co-CEO
Topics
Frank Collins: 我观察到特斯拉的股价从四月份的低点显著反弹,涨幅超过50%。同时,首席执行官马斯克预计,在六月份将在奥斯汀推出完全自动驾驶技术。此外,马斯克还透露,特斯拉计划继续从英伟达和AMD采购芯片,并预测数据中心可能在2026年中期面临电力供应的挑战。 Alice Barr: 我在华盛顿报道,民主党议员们指责共和党试图在深夜强行通过税改法案,以避免公众关注其中削减医疗补助等争议性内容。国会预算办公室的评估显示,该法案可能导致数百万美国人失去医疗保险,并可能显著增加联邦赤字。尽管如此,最终的投票结果将是对特朗普总统国内政策议程的一次直接检验。 Tiffany McGee: 作为一名投资顾问,我认为当前的市场环境下,投资者应制定周密的投资计划,并构建多元化的投资组合。考虑到今年的市场波动性,现在是买入债券的良好时机,特别是长期国债,其收益率颇具吸引力。然而,对于特斯拉,我持谨慎态度,因为其股价更多地受到马斯克个人乐观情绪的影响,而非公司基本面。此外,特斯拉还面临来自Waymo等竞争对手的压力,且马斯克过去有未能兑现承诺的记录。 Karim Busta: 我认为特斯拉应该回归初心,专注于打造卓越的产品和用户体验,这才是公司成功的关键。虽然特斯拉的未来在于转型为提供交通服务的平台,但仍需重视产品和体验。然而,特斯拉在自动驾驶规模化、构建网约车平台以及商业模式转型等方面面临巨大挑战。Waymo通过与Uber合作,表明构建网约车平台需要专业知识和大量资金。 Silvana Hanau: 英伟达首席执行官黄仁勋呼吁美国政府放宽对华芯片出口限制,他警告说,如果美国不向中国供应芯片,将刺激中国本土竞争对手的崛起。他认为,目前的出口管制是彻底失败的。 Jerry Storch: 我认为塔吉特目前面临着严重的困境,股价大幅下跌,远低于几年前的高点。该公司偏离了战略,定价过高,执行不力。沃尔玛的同店销售额增长显著,而塔吉特预计将出现负增长。此外,公司不应主动提及因关税可能导致的价格上涨,这可能会吓跑顾客。沃尔玛之前的盈利报告中提及价格上涨就是一个不必要的错误。 Rashawn Williams: 我认为债券收益率的回升对市场是有益的,因为之前的低收益率将资金推向了私人市场,导致私人市场估值过高。我更倾向于投资私人市场,因为可以获得更高的回报。对于体育团队的投资,我认为某些历史悠久的团队类似于债券,因为它们拥有稳定的现金流。至于SpaceX,我认为其估值仍然偏低,因为该公司收入增长迅速。对于其他公开市场投资,我会根据公司的增长情况和盈利能力进行评估。 Craig Johnson: 我认为投资者将欢迎这次短期的市场回调,因为之前的上涨速度过快。许多投资者没有参与到这次上涨中,因为他们不相信市场已经突破了关键的移动平均线。市场短期内出现超买,但超买情况将是一个机会。我推荐优步和嘉信理财等股票,因为我认为共享出行领域前景良好,个人投资者将更加积极地参与市场。

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Burning the midnight oil, the president's tax cut bill facing an overnight test in the House, a whole lot rides on the outcome. Plus, NVIDIA CEO takes issue with chip controls to China and warns they could put the U.S. at a disadvantage.

And Wall Street gets another check on the consumer when Target reports its earnings later this morning. Take a look at futures. They're pointing to a lower open this morning after the S&P. It snapped a six-day win streak. It is Wednesday, May the 21st, 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. Let's get you ready for the trading day ahead. We begin with the U.S. markets, the S&P and the Nasdaq 100, both of them breaking six-day win streaks. As investors, they digest earnings and the president's negotiations with Congress to pass the tax bill. Take a look at futures this morning. A lot of red on this board right now. You can see the Dow looks like it would open about 240 points lower. The S&P and the Nasdaq pulling back more than a half a percent right now. We're going to take a look at the S&P 500 pre-market laggards.

Taking a look at those, an earnings mover going to show up right here at the top of this list. You see Palo Alto Networks pulling back more than 3.5% after earnings, followed by Take-Two, Cognizant, UnitedHealth. Charter Communications running out the worst performers on the S&P in the pre-market. Then we have the gainers in the pre-market. Another earnings mover right here at the top of the list, KBQ.

Keysight Tech, those shares moving up more than 5.5% after earnings. This is a B2B player. It helps companies deploy electronic systems, followed by some defense names on this list as well. L3 Harris and also RTX. We're going to talk about the defense trade coming up in a second. Medtronic and Alexandra Real Estate renting out your best performers on the S&P.

A stock we are definitely watching this morning, that's Tesla. Our David Faber doing a wide-ranging interview with CEO Elon Musk. One headline, Musk says he expects full autonomous driving to start in June in Austin. We're going to talk a lot more about this with former Tesla executive Karim Busta coming up. Take a look at the chart, though. The stock's bounced more than 50% from its April lows right now. Shares at Tesla, you can see they're moving up more than a half a percent. Year-to-date, still down more than 14%.

Musk also talking about artificial intelligence, saying that Tesla will buy chips from NVIDIA and AMD. Also sharing his forecast that there will be power supply issues for data centers starting as early as the middle of 2026. Looking at some stocks involved in that, of course, NVIDIA and AMD, the companies he says he's going to buy chips from. You see NVIDIA pulling back almost 1%, AMD up more than a quarter percent. Constellation Energy pulling back about a third of a percent. Birdtip, big power player for data centers, pulling back about one and a half percent.

Equinix, big data center player, up about three quarters of 1%. Also in D.C., we have the president talking about defense, unveiling plans for a Golden Dome missile system. Look at some defense players this morning. You see Northrop Grumman, those shares up a quarter of 1%. Lockheed up just about a half a percent. And down here, the ITA ETF that's hit an all-time high in recent days.

up just about a half a percent right now. All right, moving on, we want to look at oil this morning. Also, oil coming off a 1.5% gain yesterday on reports that Israel is planning to strike nuclear facilities in Iran. Taking a look at oil this morning, up 1.5% right now. Week-to-date, you see it's up about three-quarters of 1%. You see the big spike on those reports.

about a possible Israeli strike. We're also looking at gold this morning. Gold coming off a 1.5% gain yesterday. We're seeing a reacceleration of that safe haven trade you see here on the back end of the week. Gold kind of moving higher. Week to date, gold up just about 4%. Right now it's up over three quarters of 1%. And a look at treasuries. This is one of the big stories this entire week after that U.S. credit downgrade. Take a look at treasuries right now. So you see the two-year very close to a 4% yield, the 10-year back above 4.5%, and then the long bond.

back above 5%. We'll be talking to market guests all about these moves in the treasury market. All right, that is your setup. Now let's see how Europe is shaping up as this trading day gets underway. Juliana Tattlebaum, she's live in London with a look at the early action. Juliana, good to see you. Hey, Frank, good morning. Well, trade has been pretty choppy here in Europe so far this morning, with sentiment deteriorating over the last hour or so. We're now generally lower for the most part in Europe. You've got the Zetra DAX down about half a percent now. The CAC

40 over in France, down by about six tenths of a percent. The Italian market holding up a little bit better, down about 12 basis points. And the FTSE 100 here in the UK, the only market that is trading higher at this stage. And that is despite a much hotter than expected inflation print out of the UK. CPI rising to three and a half percent in April. That was higher than the market had been expecting. A number of specific factors for the month of April driving the gains there. Nevertheless, it was a hot print.

From a sector perspective, in equities, we are seeing strong demand for defense names. You mentioned you're seeing some of that in the early trade indicated stateside, so similar here. Utils also doing well this morning, up by about three-tenths of a percent. The tech sector was in the green. Now we're coming under some selling pressure there as well.

for the laggards in the market. Investors seem to be selling those cyclical sectors this morning in large part. Here's a look at the laggards. Autos down 1.4%, retail down about 1.3%, construction and materials, and travel and leisure all down more than 1%, Frank.

Juliana, thank you very much. Our Juliana Tatelbaum live in our London newsroom. All right. To developing story and a live look at the House Rules Committee chambers. We'll take a look right here. Lawmakers, they're right now debating President Trump's self-described one big, beautiful bill. And what is a critical next step before that bill can reach the House floor for a full vote? NBC's Alice Barr joins us now from Washington live as well. Alice, late night in D.C.

Yeah, Frank, we're not used to having the Capitol awake and alive during our early morning hours here, but they are now four hours into their debate. They've been questioning committee leaders on the details of this bill and the very early morning timing of this session. Democrats are accusing Republicans of trying to ram the bill through in the dead of night to avoid exposing the more controversial details, especially cuts to Medicaid, something that President Trump told conservatives not to emphasize.

around with, according to two lawmakers in a closed door meeting on Tuesday. But of course, cuts are necessary to offset the bill's increased spending on immigration enforcement and the military and then the extensions to the 2017 Trump

tax cuts, also temporarily ending tax on tips and overtime. Republicans insist that they're only targeting Medicaid fraud, but the nonpartisan Congressional Budget Office estimates the bill would take health insurance away from at least eight and a half million people. Other independent reports have predicted the bill could increase the federal deficit.

by as much as $3.8 trillion. And that is the hangup for the Republicans who have been opposed to this so far and who President Trump traveled to Capitol Hill yesterday to persuade to get on side. Those fiscal conservatives, though, are not confident that the proposed cuts

will be enough to make up for new spending. At the end of the day, though, this really amounts kind of to an up or down vote on President Trump's domestic policy agenda. So it's difficult to see how Republicans don't find a way to get on board. And certainly the House speaker thinks they're going to. If it does clear this hurdle through the Rules Committee, and it likely will, we don't

have timing yet for when this vote will come up. There are amendments to happen first. The next step is the full House floor vote. And again, no official timing. Could be as soon as today, but the House speaker certainly wants it done by the end of this week before the Memorial Day holiday. Frank, back to you.

All right. Alice Barr live in D.C. late night for you. Thanks for staying up for us. Alice Barr, good to see you. All right. Turn our attention back to the markets and specifically the Treasury market making a round trip over the last few days. As fiscal concerns weigh on the long end of the curve, the yield on the 30 year, it's back above 5 percent. We were talking about that earlier after hitting that level early Monday following Moody's downgrade of the U.S. credit rating. The yield on the 20 year, that's now also above 5 percent.

Joining me now is Tiffany McGee, CEO and CIO at Pivotal Advisors. She's also a CNBC contributor. Tiffany, good morning. It's good to see you. Good morning, Frank. All right. So a lot of action in the bond market this week. I think the question is, is this a buying opportunity when it comes to bonds? And are bonds now creating competition for equities? When you see the 20-year yield above 5%, you see the long bond above 5%, the benchmark above 4.5%. Does that make you want to jump in or have your clients jump into the bond market?

Listen, you know, what it signals to me is that bonds are clearly doing their job. And so, but again, one of the things that I always talk about, Frank, on this show is that investors should have a plan. And part of that plan is a diversified portfolio. But, you know, just kind of considering all of the volatility of this year, yes, it is a good time to buy bonds. If you don't already have bonds, you should already have bonds. But just kind of like adding to that, especially with

The the longer treasuries above those rates. What does that mean? You would add when it comes to longer treasuries, like if you're looking to diversify and add bond exposure, is it the longer end that's more attractive? And by the way, later today, the government plans to auction about 16 billion dollars in 20 year treasuries later today. So we're going to get another read on investor appetite when it comes to long end of the bond.

Yeah, I would really be looking at and one of the things that we're doing with clients is really making sure that our that our fixed income portfolios segments are diversified. So I would make sure that that that the that your bond duration is diversified. All right. Got it. So some diversity long and right now looks attractive.

I want to talk about another area of the market we're going to spend a lot of time talking about today. We talked about it yesterday as Tesla. We're just showing the chart a short time ago. It's up about 50 percent from its April lows. What's your view on the stock? A lot of retail investors are in there. A lot of sentiment around it seems like a bit of what some people call a coal around Tesla. What's your view on the company? Would you be a buyer right here after what we heard Elon Musk say yesterday?

No, I wouldn't. I mean, listen, there are a lot of people that are excited about it, especially in light of the innovation like the robo-taxi, but I'm cautious, right? So the stock is trading on Elon's optimism and not fundamentals. It's got some competitive pressures from Waymo. And I would just kind of just think about the fact that Elon first started talking about robo-taxi in 2020. He promised 1 million robo-taxis by 2020.

I'm sorry, in 2019. And he promised 1 million robo-taxis. And so Waymo has actually hit 1 million,

1 million autonomous drivers, right? So when we look at that kind of competition, there's stiff competition there. And then when they start to kind of like roll them out, it's going to be a two-seater car. So I think that there are going to be some challenges here. But again, you know, when we talk about the stock that is Tesla, this kind of like magic that is Tesla that never seemed to trade on autonomous

fundamentals. This is a trillion dollar market cap stock that never trades on fundamentals. So I'm not sure if, you know, Elon has his history of promises, but often not delivering. But again, I'm not even sure if that even matters. Wow. That's a wait and see. Right now, take a look at Tesla shares. They're up just about a half a percent. Tiffany McGee, it is always a pleasure. Great to see you.

Thanks, Frank. All right. Turn our attention now to a market flash on Medtronic. The Wall Street Journal says the medical device maker plans to separate its diabetes unit into a standalone publicly traded company. The journal says sales of the diabetes business was nearly two and a half billion dollars last year and that separation is expected to be done within 18 months. Take a look at shares of Medtronic right now. You can see they're up just about three quarters of one percent.

All right, we got a lot more to come here on Worldwide Exchange, including the one word that investors have to hear today and the stock pick that every investor needs to know. But first, reaction to a wide-ranging interview with Tesla CEO Elon Musk right here on CNBC that included his China ambitions. Plus, speaking of China, some strong words from the NVIDIA CEO, Jensen Wang, on U.S. trade rules and a stark warning for the White House

And later, missing the target. What to expect when the retailer reports its results later this morning. Former Target Vice Chairman Jerry Storch, he's here to weigh in. A very busy hour still ahead when Worldwide Exchange returns. Stay with us.

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And welcome back to World Wide Exchange. We're watching shares of Tesla this morning after CEO Elon Musk. He did a wide range interview with our own David Faber, Musk confirming plans for Tesla to roll out robo taxis in Austin, Texas, starting next month. He also said that Tesla, as well as XAI, will continue buying chips from NVIDIA and AMD and could do so with other companies, but didn't give any hard numbers. Just to be clear.

Musk also dismissing the potential for a deal for Tesla to buy Uber. Musk says it's not really necessary because he says owners of Tesla's are going to be able to rent out their cars for autonomous ride share through Tesla. Musk also gave this take when he was pressed about the growing EV competition, especially in China. What we want to achieve is the platonic ideal of the perfect product. And as long as you focus on that, you will have a compelling product.

For much more, let's bring in Karim Busta. He's a former vice president at Tesla, a former VP at Lyft. He's also the co-founder of DVX Ventures. Karim, good morning. Great to have you with us. Good morning. Thanks for having me, Frank. All right. So, Karim, you got pretty excited about that interview, specifically that last soundbite we just played about the kind of model that Elon Musk says he wants to build. Why is that so exciting when we're talking about this company?

I think, frankly, this is the one sentence from yesterday's interview that got me really excited and it should get us all excited about the future for Tesla. And that's because what he said there says that the company is going back to its roots, to what has made it successful in the past. And that it's this obsession for building these products and these experiences that customers love. If you think of it, that's what made Tesla successful in the first place.

That's what we didn't see that much in the past few years. And hearing Elon say that they're now laser focused on rebuilding

with that DNA and these roots, new products and new experiences is really exciting about the potential for the company. So when we're talking about getting back to its roots, what do you think that means potentially for a lower cost vehicle? What do you think that means about also these other ventures like expanding into robotics and also the energy storage business? When we talk about getting back to the roots, does that mean there's less emphasis on these other projects or just more attention on just Tesla, the company?

No, I think going back to the roots is going back to the roots of the methods that has made Tesla successful in terms of building products and experiences that customers love. It doesn't mean that they're going to go back to focusing on being a car manufacturer. In fact, I think the future, the transition is already happening where the focus is going to be on these new services centered around robo-taxis.

So there is going to be an evolution of Tesla as going from a car manufacturer to a provider, a platform providing transportation services.

But having the focus on building a great product and a great experience is what should give us confidence about the ability of the company to do it. With that said, there are also tremendous challenges to be solved. And if I had to have concerns about what was said yesterday, it's actually about what was not said, what was not discussed, but how the company is going to solve these challenges. Self-driving at scale, then building a ride-hailing platform, and then

transitioning into this business model where the cars, the fleets are going to be made of cars being brought by Tesla owners. Well, Karim, that's actually what I want to talk to you about. So if you don't mind me interrupting you just for a second, I want to play a soundbite for you. Someone that worked at both Tesla and also Lyft, a rideshare company. You have unique perspective on this. We want to play this soundbite of Elon Musk talking about this plan for these autonomous cars and how owners can generate extra revenue.

Yeah. If I own a Tesla and I have the software and the capability of doing it. Yes. Right. But we'll have a model which is kind of like some combination of Uber and Airbnb. So if you're a Tesla owner, you'll be able to add or subtract your car to the fleet. So just like an Airbnb, you could rent out your spare bedroom or rent out your house when you're not using it. And the same thing will be available for Tesla owners. So it's a way for Tesla owners to earn revenue.

All right. So right now, those two services, they're two very big, separately publicly traded companies. We're talking about ride share and electronic EVs, electric vehicles. Do you think it's possible for an EV maker to operate an app to have the scale when it comes to the vehicles and also the software to operate a ride share company that would meet the needs of people the way an Uber and a Lyft do now?

Yeah, I think that's where the challenge really is for Tesla. I think that's a very ambitious and very challenging undertaking for several reasons. It's not about the app. Building an app that connects riders with vehicles, that's relatively easy. What's really hard is what's underneath, what's under the hood, to make sure that there's enough cars available at the time when people need them, where they need them, so the wait time is very low.

Second thing is to make sure that this fleet is constantly maintained and cleaned. And if there's any issue that these issues are taken care of. That's why it's taken a decade to lift an Uber to make the platform work. It's still taking, even if you're taking the driver out of the equation, there's still a lot of humans needed to make sure that the car is clean, that if something happens, that somebody takes care of it.

that the robot is not able to deal with. So there's a lot of implications of that statement that was made. And I think we're many, many years away from seeing this becoming a reality for Tesla. Now, what's exciting is there's other people that are more advanced

And they're showing us the way on how to succeed. So Waymo has been focused solely on solving self-driving at scale. And when they started to deploy their service in other cities than San Francisco, they partnered with Uber because they realized that building that ride-hailing platform, managing all the operations that I just mentioned, takes expertise, takes a lot of money.

And it's really hard to do quickly and at scale. So one of the things, one of the concerns that I would have for Tesla is the nature of the challenges, very hard. And we're still, from what we're hearing, this still seems to be the ambition for Tesla to doing it alone, to solve all these challenges on its own, while all the other players have shown that a very successful way of doing it is by partnering with people that specialize in one piece of the equation as opposed to trying to

We're so grateful to have your insight on a day like this. So special insight, former VP at Tesla, former VP at Lyft. Thank you very much. By the way, your AIS ETF also holds AMD and NVIDIA. So we have to have you back and talk about how chips play in this whole story as well. Thank you again. Great to see you. Also, for the audience, you can watch David Faber's full interview with Elon Musk over at CNBC+. If you're not signed up already, you can scan the QR code on your screen or go to CNBC.com slash plus if you want to sign up.

All right. Karim was just talking about Waymo. Autonomous ride share company Waymo says it completed more than 10 million fully autonomous trips with roughly half of those happening in 2025. In an exclusive interview with CNBC, the company's co-CEO compares its driverless tech to Tesla, saying it's all about replacing the driver, not just assisting the driver.

You have to be able to see at night. You have to be able to have this vision that's better than humans. What we're doing is we're replacing humans. We're not asking you to sit behind the wheel and take over the vehicle at a really vulnerable moment. Instead, we're inviting you to sit in the back seat, relax and unwind, and get safely to your destination. That's a very different value proposition, but it's one that requires belts and suspenders, and that's the approach that we've taken.

Still on deck here on Worldwide Exchange. Ford reportedly taking his foot off the pedal around its EV ambitions, but not everyone is souring on an all-electric future. We'll be back right after this. If your small business has a problem, you could say, Ugh, just my luck. But you should say, Like a good neighbor, State Farm is there. And we'll help get you back in business. Like a good neighbor, State Farm is there.

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Welcome back to Worldwide Exchange. Let's get in check with some of this morning's top stories, including some harsh words from one key chip CEO. Silvana Hanau is here with that and much, much more. Silvana, good morning. Hey, Frank. Good morning. That is right. NVIDIA CEO Jensen Huang is calling on the U.S. government to further roll back restrictions on AI chip exports, especially on China, warning if the U.S. doesn't supply chips to China's AI industry, home

grown rivals like Huawei will. Now, speaking with reporters on the sidelines at Computex in Taipei, Wang said, quote, China has 50 percent of the world's AI developers. And it's important that when they develop on an architecture, they develop on NVIDIA or at least American technology. Wang adding current U.S. export controls have been a total failure. And we're seeing shares of NVIDIA down about one percent in the

All right, shares of Palo Alto Networks moving lower ahead of the open. This is despite a top and bottom line beat for its most recent quarter. Shares right now down close to 4%. Now, investors focusing on revenue expected from pending orders, which the company says will come in lower than the street was expecting. Still speaking on Mad Money last night, company CEO Nikesh Arora called the quarter phenomenal. Listen in.

I think these are phenomenal results in that kind of an execution environment. It once again tells you that we have a team that puts its heads down and get power through things like pandemic, supply chain attacks, geopolitical tension. And that's what we want to do. We want to keep executing over the next many years to try and take the business and double it.

And Ford reportedly pulling back further on its EV ambitions. The Wall Street Journal reports the automaker will let rival Nissan use part of its unused flagship battery plant in Kentucky. Now, if confirmed, the move will help Nissan reduce sales

some exposure to U.S. tariffs on imported cars and parts. Ford lost $5 billion on its EV business last year, Frank. Yeah, taking a look at Ford shares, pulling back about a quarter of a percent. Nissan getting a bit of a pop there, up about 1.5%. Silvana, thank you very much. We'll see you a bit later in the show.

And speaking of EVs, Ford may be rethinking its EV ambitions, but one area that's not seeing an EV slowdown, that's the resale market. Carvana CEO Ernie Garcia speaking during yesterday's CNBC CEO Council on what he's seeing in the marketplace right now. We are back right after this. Stay with us. Last year, we were, I think, on the order of 7 or 8 percent electric sales. And I think we're

I believe the largest seller of used electric cars now. We definitely think it's going in one direction and that's up. I think there's a lot of fundamental reasons why electric is a simpler machine and has a lot of consumer benefits. I think we're very early in that technology curve, so I think it will probably improve relative to combustion engine vehicles more quickly. We've got a really optimistic outlook for the full year and

In a few hours, we'll talk about our confidence in the next five years. And sitting here today, I'm very excited about where Target sits as we think about the next five years and how we build on the momentum that we've built in our business.

That was Target CEO Brian Cornell in a squawk box back in March, offering an optimistic take on the company's year ahead following its earnings. But the retail giant facing a very different landscape as it prepares to release its latest earnings results as it tries to manage the impact of tariffs and the president's global trade war. Take a look at that chart. The stock's down more than 20% since earnings back in March.

All right, welcome back to World Wide Exchange. I'm Frank Holland. Coming up, we're going to tee up what you need to watch when Target reports with former Target vice chair Jerry Storch. It's going to be a great conversation. But first, we need you ready for the trading day ahead. We begin with the U.S. markets, the S&P and the Nasdaq 100, both breaking six-day win streaks.

As investors, they digest earnings and also the president's negotiations with Congress to pass the tax bill. Take a look this morning and see futures in the red across the board. The Dow hitting its lows in the morning. Futures down just about 300 points. The S&P and the Nasdaq also down right around a half a percent right now.

Also this morning, we're going to take a look at small caps. So yesterday, they had a very fractional gain. They're lower week-to-date, but they are coming off a six-week win streak. Take a look at small caps in the pre-market. You can see right now, this is how they closed yesterday. Week-to-date, as I said, they're down about three-quarters of 1%. We'll take a look at how they're moving in the pre-market just a bit later in the show. We also want to look at oil this morning. It finished 1.5% higher yesterday on reports.

that Israel is planning to strike nuclear facilities in Iran. Taking a look at oil this morning, you can see it's up once again, up about 1.5% for both WTI and Brent crude. Natural gas actually pulling back just about 1%, kind of a notable move there. Also, we want to check the bond market this morning. Yields, a big story this week. Taking a look, you're seeing the two-year just crossing 4%. It was just a tick below earlier this morning. The benchmark back above 4.5%. And down here, maybe the biggest headline, the long bond back above

We're going to be talking about this with guests later in the show. Also this morning, we have another earnings mover. We're watching shares of Baidu, results crossing just a short time ago, reporting a surprise rise in first quarter revenue, helped by increasing demand for its AI cloud services. Look at this chart. You see a big spike right here after those earnings were reported. Shares of Baidu, they're up just over 2% right now.

OK, that is your setup. Now we want to turn our attention to Washington and a developing story. A live look right now at the House Rules Committee chambers where lawmakers, they are debating President Trump's self-described one big, beautiful bill. And what is a critical next step before that bill can reach the House floor for a full vote? Again, live look at D.C. right now. Active debate going on in D.C. Emily Wilkins joins us now with the very latest. And Emily, I don't know if it's an early morning or a late night for you.

It's a little bit of both, Frank. And it's going to probably be a long day, to be honest. You know, Republican leaders, they're really rushing right now. I mean, right now you can see everyone talking, but behind the scenes, rushing to finalize changes that they're going to be making to this Trump mega bill to satisfy their members.

and be able to get more folks to yes. This House Rules Committee that you're seeing here, they began meeting at 1:00 a.m. this morning, and it, as you mentioned, is the latest hurdle for the Trump mega bill. You've had these days and days of negotiations, of leadership meeting, talking with holdouts, but this is the part where they have to show their work to finalize their changes.

We got the details on one of those tentative changes, which is a new cap for state and local deductions, SALT cap. NBC News is reporting a new tentative agreement that would raise the cap to $40,000 for those making $500,000 or less.

both the cap and the income level then would increase by 1% throughout the next decade, and then that would lock in and become the new baseline at the end of 10 years. Now, of course, there are other issues that Republicans are still negotiating. We are expecting to see more details later this morning, not exactly sure when, but we also did get some new data on the Trump megabills impact last night, and this is according to the nonpartisan Congressional Budget Office.

According to them, the average American household would see an increase in the resources provided to them by the government under this package. However, the report further notes that resources would decrease for households in the lowest tenth of the income distribution, whereas resources would increase for households in that highest decile, highest 10%. Now,

Now, Speaker Mike Johnson said he wants to get a vote on this bill possibly as soon as tonight. Could also be tomorrow. Might be Friday if they can't get an agreement. It's really going to depend on how this hearing goes. This could stretch for hours and hours into the day, and these lawmakers might be in for a very late night. Frank?

All right. So you said this stretch for hours and hours more. Again, this started at 1 a.m. today. So as you said, the latest hurdle, it's both literally the latest and also the latest hurdle. What's left? What's left to negotiate? What's left to talk about?

So we are obviously waiting to see if that 40,000 salt cap is in fact the final thing that they do agree on. We are also, of course, taking a close look at those green energy tax credits. You've seen lots of different energy industries, wind, solar, nuclear, weigh in and say, hey, these timelines are a little bit shorter than what we want. However, it looks like they are going to make them even shorter

It's something the fiscal hawks are pushing for to try to get more savings in the bill. And then, of course, if there's any sort of changes to Medicaid, we'll see if Republicans do not heed Trump's warning to not F around with Medicaid, as he told them yesterday. That's maybe one of the best headlines right there, that people continue to have to say that headline, not that he said it. Emily Wilkins, thank you for the great reporting as always. Hopefully you can take a nap at some point. Thanks again.

All right, turn our attention now to retail and watching Target. That stock down more than 27% this year. The company out with Q1 earnings in just about an hour. Head of that report, Wall Street mostly sour on the stock, citing tariffs and other headwinds. CEO Brian Cornell warned in March as customers could see price hikes because of tariffs. We know for certain categories...

like fruits and vegetables, where during this winter season, we depend on Mexico for a significant amount of supply. Those are categories where we'll try to protect pricing, but the consumer will likely see price increases over the next couple of days.

Today's report follows kind of mixed numbers from rival Walmart and from Home Depot just yesterday, both reaffirming their full year outlooks, but taking very different approaches to commenting on possible price hikes when it comes to tariffs. Joining me now, Jerry Storch, former Target vice chairman and CEO of Storch Advisors. Jerry, good morning. Great to have you here to talk Target. We're supposed to have you on Boo Barn Day. I know that's your thing, but still great to have you here for Target.

It's a pleasure. Tell me, what are you expecting when it comes to Target? We've been talking to other guests about this. Target and Walmart, while they're often kind of lumped in together, Walmart has a very big grocery business. About half of their revenues come from grocery. Target, much more consumer discretionary. Analysts came out with a note saying about half their goods are imported. So what are you expecting?

Look, it's really hard to predict what's going to happen on any given day. It's a fool's errand to say what the earnings are going to be right now or what their sales are going to be. But the bigger picture is Target is a very badly broken story. They're down from a high of over $240 a share just a few years ago. Now they're at $98.

And you said, as you point out, they're down 27 percent year to date, down 37 percent over the last 52 weeks. During that same period that Target stock was down 37 percent the last 52 weeks, Walmart's up 52 percent.

So Target's getting killed. That's what's going on in the marketplace. It has nothing to do with tariffs. That's a big problem to add to all their other woes. But basically, they're off strategy at Target. They're overpriced and they're not executing. And they haven't been for a few years. They continue to disappoint. So whatever they report today is

It's versus very low expectations. And so they could beat them. They might not beat them. But the story is still fundamentally broken. Target, Walmart's same store sales report was a gain of 4.5% year over year for the quarter. Target is supposed to have a negative same store sales report today. Down one or 2%. We'll find out exactly what it is. They could beat that and the stock could go up for a few days.

But basically, that's a massive gap in performance by companies that used to be equal competitors. Yeah, we're showing it right here. I mean, a big delta when it comes to performance between these two companies. I want to ask you another question more going forward. So we heard from Target CEO Brian Cornell a few months ago. He said they're going to have to raise prices due to tariffs. Since then, the president's kind of taken a pretty strong stand against companies that mention tariffs in their pricing or talk about raising prices. So going forward for Target, it seems like they're kind of caught between the fire and the frying pan.

If they say they're going to raise prices, what does that mean for their customers? Do you think that would scare some customers away? If they say they're not going to raise prices, what do you think that means for investors? They don't have to say anything about what they're going to do about prices. I think we all saw this week what happens when you do that. Walmart's earnings report last week when they mentioned that prices would be going up on some items, totally unforced error, totally unnecessary. Two-thirds of Walmart's sales are in groceries and consumables.

Those are mostly domestically sourced. There was no reason for even to discuss prices. Home Depot went to school on what Walmart had said. So, actually, they said, oh, you know, generally our prices are going to be about the same. That's exactly what Walmart should have said. Too little of their assortment is actually even affected by the tariffs for them to have had to say anything. That was in the midst of a report, by and large. You said it was mixed. It was a great report from Walmart, but they messed it all up.

by walking into this whole pricing and tariff mess. They never should have even gone there. And, you know, Target, look, if their other results are poor, I expect them to talk only about tariffs because they don't want to talk about how broken the business is. Jerry Storch, give us some advice. I mean, you've been on those earnings calls. You've done these calls yourself, so you would know. Jerry Storch, always a pleasure. Thank you very much.

All right, coming up, the increasing allure of owning a piece of a sports team. Shark Tank star Rashawn Williams, he's here talking his new venture with Mark Cuban, plus his views on tech and his investments in some big private companies like SpaceX, also his investments in the public market like Airbnb, Palantir, and much more. We're back right after this break. Stay with us.

Welcome back to Worldwide Exchange. Two investors you may know best from Shark Tank, Mark Cuban and Rashawn Williams. They recently announced a new $750 million private equity fund focused on sports franchises. That fund called Harbinger Sports Partners comes as valuations soar in professional leagues. They're opening the door to private equity investments. Joining us now is the co-founder of that fund and the founder of Value Investment Group, Rashawn Williams. Rashawn, thanks for joining us. Hey, excited to be here. Thank you.

Great to have you. So you have a lot of holdings when it comes to tech and also sports. I got to talk to you about something else. The bond market. When we're looking at those yields rising, you're laughing right now. How does it change your view on some of the equity investments you have and also some of the investments you have in private companies that are pre IPO? We're going to show some of them, some of the companies that you've invested in the public markets. We're talking Palantir, Alibaba.

you know, Airbnb, Spotify and other big names and also SpaceX in the private market and Klarna. How are these rising yields changing your view of those investments? Well, most people don't know this about me. I actually come from the bond market. So I spent the first 12 years of my career at Goldman Sachs, Wachovia and Deutsche Bank dealing with fixed income credit and structured credit. We've been at historic highs

high, let's say over the last 25 years based on where we started in the late 90s and early 2000s. The bond market yields going back up is actually a healthy thing for the market. And the reason I say it is a very controversial statement. It's because all of the money because of the low historic yields has been pushed into the private markets.

So whenever someone says to me private market assets are overvalued, it's because they weren't getting the yield in fixed income or in the equity markets. They all went to the private markets. So you want to have a healthy fixed income market. You want long-term investors and retirees to be in safe asset classes.

You don't want them chasing tech and private equity when they're 75 years old. So I'm a big fan of a moderate yielding bond market and not historic lows or historic highs. Well, you also run a family office. So when we're talking about your investments for your family office, when we're talking about equities and bonds, just roughly, how are you seeing it? Is it, you know, 50 percent bonds, 50 percent equities? Give us the rough percentages. Yeah, I think you see most family offices above a billion dollars are probably in that 50 percent privates,

fifty percent public space i'm a little extreme because i'm a venture capitalist and i'm a private market investor i'm more seventy five eighty percent private i'm just getting better yields i can buy boring businesses like plumbing and hvac companies and get fifteen to twenty percent cash on cash returns i'd rather do that than be a money markets at three and a half or four percent and then i buy private equity or venture capital i'm getting twenty plus percent returns so you're actually of the mind that when you invest in a sports team that's like investing in a bomb but you gotta explain it to me because

A sports team's not backed with the full faith and credit of the U.S. government, and it's certainly a much longer horizon than most bond investors I would think. Well, let me ask you this. Which one is safer, U.S. government bonds or the Dallas Cowboys?

I'm an Eagles fan. So you're talking to the wrong person. The Eagles. Well, so here's the concept behind it. First of all, not all sports teams are safe or fixed income-like or bond-like. I'm really thinking about the ones that have been around for 100 years, basketball, football, baseball. And the reason I'm comparing them to bonds is because it's a stream of cash flow. The majority of the revenue from the big three leagues are annual contracted revenue from media rights and sponsors. If 80%.

If 80% of your revenue is locked in from tier one creditors for 10 to 20 years, that's a stream of cash flow. And it's solely based on the credit worthiness of the media rights companies. So you're saying our parent company, Comcast, NBCUniversal, that's a tier one supplier of capital, it sounds like.

Moving on, I want to talk about some of your private investments. One of them is SpaceX. We're talking a lot about Elon Musk today. Our colleague David Faber did a wide-ranging interview. What's your view on SpaceX? I'm looking at the chart through Forge Global. We track the valuation of SpaceX through Forge Global. Total valuation is about $350 billion over the last year. According to Forge, the valuations jumped just about 65%.

I think you think that's actually undervalued because you're saying right now the IPO market is kind of dead, which is depressing values in the private market. So are you saying that SpaceX should be even more highly valued? Well, I'll tell you this way. Find me a company that's doing $14 billion in revenue growing at a 56% CAGR. And you tell me what the valuation of that should be. So $350 billion is not enough, is what you're saying?

I'm just saying it's fair for something that's trading at 10 times the CAGR of publicly traded companies. So a multiple of 20, it's around 29 times revenue. So the valuation is a little higher in the secondary market than you quoted. But if you're trading at 10 times the growth rate of publicly traded companies and you're doing public company revenue, 14 plus billion, and you're introducing new products like Starlink, that's doubling in revenue every year. I think people are chasing after SpaceX, but SpaceX is literally a rocket itself. All right. All

All right. Really quick, we're going to come full circle back to bond yields and some of your public market investments. Again, Palantir, Spotify, Robinhood, Coinbase. You've got just a wide variety of them. Does the rise in bond yields change your view on those companies? Because those companies still do need capital. We often talk about the Mag7 not really needing capital or having balance sheets that are kind of a fortress against the rise.

the cost of rising capital. These other companies are a bit of a different story. - Yeah, the trade-off is do I want to grow revenue by reinvesting all of my profits into revenue growth? And I may need to raise capital in order to fuel that growth. Or do I slow revenue growth and become a profitable company similar to what Toro did when they were positioned to go public?

All of the companies we're investing in are hyper growth, dominant, trying to take over an entire industry. So they just want to grow and crush their competitors. But yes, they can pull the levers and slow growth down and become profitable. All right. Rashawn Williams, it is really great to have you. You got to come back. You got to talk. You got to talk again. It's great to see you. Especially if you invest in any more sports teams. Absolutely. By the way, not the Dallas Cowboys. Don't even use that. People don't like the Dallas Cowboys, Rashawn. Philadelphia Eagles all the way.

All right. Coming up here on World Wide Exchange, this is not a sports show. We're digging into one of the biggest free market laggards. Take a look at the top of this chart right here. It's Take-Two Interactive. Those shares pulling back more than 3.5%. We're going to be back right after this.

Welcome back to Worldwide Exchange. Market flash on shares at take two. You can see they're pulling back more than three and a half percent right now. The number one laggard on the S&P in the pre-market. The video game maker just announcing a proposed offering of one billion dollars in common stock right now. Shares to take to pulling back more than three and a half percent. Quick look at futures. Very close to session lows right now. Looks like the Dow would open more than 300 points lower. We'll be back right after this.

Welcome back. Let's get ready for the day ahead. Joining me in studio, Craig Johnson, Chief Market Technician at Piper Sandler. Craig, great to have you here. Great to be here. I want to talk about the moves in the pre-market right now. We're seeing the futures hit their lows of the morning. Also, bond yields benchmark above 4.5%, long bond above 5%.

Frank, I think investors are going to welcome this sort of short term pullback. This move down over the last 30 days or so, advance to back up has been so quick. It's been so technically driven. But a lot of investors really have been whipsawed and haven't been able to really participate in this. So I think they're going to be welcoming any sort of pullback in this tape. All right. Your word of the day is FOMO. What are people worried about missing out on?

Well, the word is FOMO because a lot of investors just haven't participated. We've had this 20 percent advance off of the lows. They haven't believed that we've gapped above the 20 period moving average, a 50 day moving average and the 200 day moving average.

And they still look at this market and say, how do I get on board with this? When, again, the market's going up, it's creating a lot of challenges for investors. Because when you look at the positioning data, they're just not there. They're not participating in this in this advance the way they should be. So I've heard other people say that. But then why do we see a decline yesterday? Why we see the S&P snap that 60 win streak if people are trying to catch up to the rally?

Well, I think, again, we've had a very sharp move in this tape. We're running into some overhead resistance levels technically. And so you're seeing a little bit of sort of people backing off. The market's got a little bit short term overbought.

But again, this is overbought condition is going to be an opportunity. Think about what happened on Monday when the U.S. debt got downgraded. Everybody's like, oh, we're going to see a big sell off in the equity market. Wasn't the case. I think investors looked at that particular as an opportunity, not as a that is a reason to be selling stocks. And often as we saw a sell off in the morning and then we rebounded. That is correct. I want to get to some of the stocks that you're highlighting. One of them is Uber. So Uber, obviously, in the news recently.

After Elon Musk said no plans to buy it, they actually test the plans to roll out its own app. Does that worry you about the future of Uber? No, I think this whole ride sharing space is in good shape. I look at the chart. We're starting to break out the new highs on the chart. And that's a very constructive setup. The pattern that we're seeing there is being replicated in a lot of other stocks, too, whether it's Uber or some of the other ride sharing companies. That's the future. All right.

You also like Schwab in the financials. Give us the elevator pitch on that one. Is it disruption in the market leading to more trading volume? I think it's more individual investors coming into the market, getting more sophisticated and managing a lot of their financials themselves. And when I go back and I just look at Schwab, look at the chart, look at the setup, it's in great shape. Also keep in mind that the yield curve is

has also been steepening and normalized, which should also be a positive for financials across the board. And Schwab is going to benefit from that, too. Yeah, looking at Schwab, shares up over 20 percent year to date. Craig, it is always a pleasure to have you here. Thanks for joining us in studio. Craig Johnson from Piper. All right, before I let you go, one quick look at the futures right now. We mentioned earlier futures hitting their lows of the morning. Right now, it looks like the Dow would open about 325 points lower. The S&P and the Nasdaq also down more than a half a percent. That's going to do it for us here on Worldwide Exchange.

You've been listening to CNBC's Worldwide Exchange. You can always catch us live weekdays at 5 a.m. Eastern. You get the store clerk's attention and point to your favorite lottery scratcher. You prepare your lucky quarter and work that popcorn shell out of your tooth. Quarter beats scratcher and scratch away with the Illinois Lottery. Be smart, play smart. Must be 18 years or older to play.