Group 1 - Paramount Global has offered $15 million to settle a lawsuit filed by Donald Trump against CBS News, but negotiations are ongoing with Trump seeking over $25 million and an apology [1] - Trump initially filed a $10 billion lawsuit in October, later amending it to claim $20 billion in damages, alleging CBS News edited an interview to favor the Democratic Party [4] - Paramount Global is planning to nominate three new directors to its board, increasing the total to seven, while one current director will step down, ensuring a full board in case of potential deal complications [3] Group 2 - Bill Owens, the long-time executive producer of "60 Minutes," announced his resignation due to concerns about editorial independence [5]

Model Hailey Bieber's makeup and skincare brand, Rhode, is being snapped up by Elf Beauty for about $1 billion, giving the budget cosmetic retailer access to a celebrity-endorsed product line that has become hugely popular among Gen Z and millennials. Elf said on Wednesday it would pay Rhode shareholders $800 million in a combination of cash and stock and an additional potential earnout consideration of $200 million subject to certain performance-related conditions. Last month, Reuters reported that Bieber ...

Core Insights - Nvidia reported strong demand for its AI chips and solid first-quarter results, easing investor concerns about the tech industry [1] - The company expects revenue of about $45 billion in the fiscal second quarter, impacted by $8 billion in expected sales losses due to export controls on H20 chips to China [2][8] - Despite challenges, Nvidia's stock rose 4% in after-hours trading following better-than-expected earnings [3] Financial Performance - Nvidia reported earnings of 96 cents per share on sales of $44.06 billion for the quarter ending in April, with revenue up 69% year-over-year [1] - The actual first-quarter charge due to H20 restrictions was $1 billion less than expected, totaling $4.5 billion on excess inventory [4][6] - The data center business saw a significant increase, with proceeds jumping 73% to $39.1 billion [6] Market Position and Demand - Nvidia is positioned at the forefront of the AI boom, with major companies like Google, Microsoft, Meta, Amazon, and OpenAI relying on its chips for AI tools [7] - CEO Jensen Huang emphasized that global demand for Nvidia's AI infrastructure is "incredibly strong," with AI inference token generation surging tenfold in one year [4][10] - Major tech firms are expected to spend a combined $345 billion this year on AI initiatives, indicating robust market growth [9]

Core Viewpoint - Nike has raised prices on many of its best-selling sneakers by $5 to $10, but the company does not attribute these increases to tariffs despite expert opinions suggesting otherwise [1][4]. Pricing Strategy - Nike has implemented price increases of 2% to 6% on popular footwear, including models like Air Max 270, Vomero 5, and Zoom Fly 6 [1]. - The company is strategically raising prices on styles it believes can handle the increases, while avoiding hikes on children's products and items priced below $100 [2][9]. Sales Performance - Nike has experienced a 9% sales decline during the crucial holiday season quarter and anticipates a steeper-than-expected drop in fourth-quarter revenue [6]. - The company has appointed Elliott Hill as CEO to lead a turnaround after a year of sagging sales [5]. Market Context - Other major retailers, such as Walmart and Macy's, have indicated that tariffs will force them to raise prices, reflecting a broader trend in the retail industry [11][12]. - Nike's price increases began on its website and may extend to other retailers selling its merchandise [9]. Product Pricing Details - Most Nike sneakers priced over $150 will see increases of up to $10, while those below $150 will increase by $5 [9]. - Some popular styles, like the $115 Air Force 1 sneakers, have not seen price hikes [10]. Strategic Moves - Nike plans to return to selling its merchandise on Amazon for the first time since 2019, a move seen as critical due to declining sales [10].

General Motors is investing $888 million in its Tonawanda Propulsion plant in Buffalo, New York, “to support the production of the sixth generation of GM’s V-8 engines,” the automaker announced Tuesday. The investment is a shift from a previously announced $300 million commitment to make electric-vehicle drive units at the plant, as the V-8 engines are used in GM’s full-sized trucks and SUVs.GM says the newer engines will provide drivers better fuel economy and reduce emissions by utilizing “new combustion ...

Core Viewpoint - Meta is planning to expand its retail presence by opening physical storefronts and hiring retail employees to enhance sales of its devices, which currently includes only one store on its California campus [1][4]. Group 1: Retail Expansion Plans - The company is leading a project to increase its retail footprint, although details on the number of new stores and their opening timeline remain undisclosed [2]. - Meta Store, the only retail location, was opened in Burlingame, California in 2022, designed for customers to interact with Meta products through demos similar to Apple's retail strategy [2][3]. Group 2: Product Offerings - At the Meta Store, customers can try out various products including Meta Portal, Ray-Ban Stories (smart glasses), and Meta Quest (virtual reality headset) [3]. - A pop-up store named Meta Lab was also opened in Los Angeles, allowing customers to test smart glasses before purchasing, although it is currently closed [3]. Group 3: Sales Performance and Strategy - Meta sold over 1 million pairs of smart glasses last year, which was viewed as a positive start, but not sufficient to significantly impact the business [5]. - The company's chief technology officer emphasized a mission to enhance sales, retention, and engagement, with plans to introduce more AI-powered wearable devices this year [5].

Core Insights - Victoria's Secret is experiencing a significant website outage attributed to a "security incident" that began during a Memorial Day sale [1][3] - The company has engaged third-party experts and is working to restore operations while keeping brick-and-mortar locations open [5] Digital Sales Impact - The company reported $2 billion in digital sales last year, accounting for approximately one-third of its total revenue [4] Stock Market Reaction - Shares of Victoria's Secret fell by 6.8% on Wednesday due to the ongoing website issues [5]

Core Points - Ford Motor is recalling over 1 million vehicles due to a software glitch in the rearview camera that may freeze or delay the image, increasing the risk of a crash [1][2] - The recall affects various models from 2021 to 2024, including Bronco, F-150, Edge, Escape, and others [1] - Owners will be notified of the safety risk via mail, with a second letter to follow once a fix is available [3] Recall Details - The software error can cause the rearview camera image to delay, freeze, or not display when the vehicle is in reverse, reducing visibility [2][4] - The issue was identified after nearly 40 driver complaints were reported to the National Highway Traffic Safety Administration (NHTSA) [3] - Ford has previously faced issues with rearview cameras, recalling about 289,000 vehicles last month and paying a $165 million penalty for failing to recall 620,000 vehicles in a timely manner [6]

Core Viewpoint - Macy's has reduced its annual profit forecast due to the impact of tariffs and a slowdown in consumer spending, indicating a cautious outlook for the retail sector [1][3][4] Financial Performance - The company now expects adjusted earnings per share of $1.60 to $2 for 2025, down from a previous forecast of $2.05 to $2.25, with 15 to 40 cents of the drop attributed to tariffs [1][3] - Macy's reaffirmed its annual sales forecast of $21 billion to $21.4 billion, a decline from last year's $22.29 billion [4] - For the three months ended May 3, adjusted earnings per share were reported at 16 cents, beating projections of 14 cents, while revenue was $4.6 billion, above expectations of $4.5 billion [4] Market Challenges - The company faces challenges from a slowdown in consumer spending and increased competition in promotions and discounts across the retail industry [3][8] - Comparable sales at Macy's locations fell 0.8% compared to the same period last year, while same-store sales at Bloomingdale's and Bluemercury increased by 3.8% and 1.5%, respectively [7][9] Strategic Initiatives - Macy's is undergoing a three-year turnaround plan, which includes closing 150 locations by early 2027 and enhancing its Bluemercury and Bloomingdale's businesses [5][6] - The company has invested in staffing, improved displays, and a new merchandise mix at 125 locations, which is about one-third of the stores it plans to keep open [6][11] Stock Performance - Macy's shares have decreased by approximately 27% so far this year [10][13]

Core Viewpoint - Paramount's board and controlling shareholder Shari Redstone are in discussions regarding a potential settlement of a $20 billion lawsuit filed by President Trump, stemming from a controversial "60 Minutes" interview with Kamala Harris [1][5]. Group 1: Lawsuit and Settlement - The lawsuit involves allegations of deceptive editing by CBS during the interview, with Trump reportedly open to a settlement of up to $50 million [2][3]. - Redstone's willingness to settle is complicated by concerns that the company's Directors and Officers (D&O) liability insurance may not cover bribery claims, which could arise from settling with Trump [2][4]. - The lawsuit is seen as separate from the ongoing regulatory approval process for the Paramount-Skydance deal, valued at $8 billion, which is currently under scrutiny by the FCC [7][13]. Group 2: Financial Implications - If the Paramount-Skydance deal is completed, Redstone could potentially retain $2 billion, which is critical given her declining wealth due to a significant drop in Paramount's stock value [8][10]. - Redstone faces a substantial tax liability of up to $200 million related to her inherited stake from her father, further complicating her financial situation [16]. Group 3: Regulatory and Political Context - The Trump lawsuit coincides with the FCC's investigation into CBS's editing practices, which could impact the approval of the Paramount-Skydance transaction [12][13]. - The lawsuit has drawn attention from Democratic lawmakers, raising concerns about the legal implications of a potential settlement with Trump, who has significant influence over Redstone's financial interests [7][8].