Potential Acquisition & Valuation - Starbucks China business is valued at approximately $10 billion [1] - Starbucks intends to retain a majority stake, around 30% [1][2] - Potential buyers would hold less than 30% stake [2] Competitive Landscape - Centurium Capital, a potential contender, is a majority shareholder of Luckin Coffee, Starbucks' top rival in China [1][2] - Starbucks China has approximately 8,000 stores [4] - Luckin Coffee has more than 20,000 stores in China [4] Strategic Considerations - Starbucks is seeking a strategic partner with aligned values and remains committed to China [3] - Starbucks has struggled to compete with Luckin Coffee and Yum China's low-price model and rapid innovation [3]

Government & Regulation - Cryptocurrency momentum benefits from government favoritism and relaxed regulation [1] Institutional Adoption - Large companies are allocating billions to Bitcoin for their treasuries [2] - Companies aim to diversify their treasury assets away from solely dollar-denominated currencies [2] Financial Impact - A 10% increase in Bitcoin value can significantly improve a company's balance sheet, especially with holdings of $500 million [2]

Market Outlook & Strategy - Carson Group maintains a bullish outlook, anticipating a 12-15% gain for the S&P 500 by year-end, despite potential risks [19][24] - The firm advocates for diversification ("When in doubt, diversify it out") and has shifted some US equity exposure to developed international markets [13][14] - The market's current "sweet spot" (S&P 500 up 5-10% mid-year) historically suggests further gains in the second half [21][22] - Carson Group is overweight equities relative to bonds, expecting interest rates to remain somewhat elevated due to increased spending and deficits [35] Economic Factors & Fed Policy - The strategist believes the economy is stronger than perceived, with potential for earnings to exceed expectations [25] - The market is closely watching the Federal Reserve's actions, with potential market sensitivity to the Fed not cutting rates as much as anticipated [6][7] - While a 25 or 50 basis point cut may not significantly impact the market, a 300 basis point cut could signal economic distress [37][38] - High deficits, currently around 6.5% of GDP and potentially rising, historically haven't always negatively impacted markets [35][36] Sector & Investment Opportunities - Technology sector's resurgence, exemplified by Nvidia's $4 trillion market cap, signals a healthy bull market with broad participation [2][39] - Financials are highlighted as an underappreciated sector, with banks having delivered strong earnings [45] - Small and mid-cap stocks are considered potentially undervalued, especially in comparison to Europe, which has seen significant gains [54][55] Risks & Concerns - Potential risks include trade developments, the impact of tariffs on consumers (expected in the second half of the year), and a slowing economy [5][28][29] - August and September are historically prone to market hiccups, suggesting a potential correction in the fall [53] - Overly negative sentiment is not currently a major concern, as hedge funds remain net short and sentiment indicators are mixed [50][51]

Regulatory Impact - The Trump administration, particularly RFK Jr, aims to eliminate artificial flavors and colors from foods, potentially requiring companies to reformulate products [1] - This initiative could have major implications for the food industry, necessitating the removal of legally addressable additives [1] Financial Implications - Companies may need to revamp portfolios with new ingredients, incurring costs [2] - Smaller players like private labels and store brands could be disproportionately affected due to lower margins [3] - The industry may increase pricing by a few percentage points to accommodate the changes [3] Consumer Behavior - American consumers' preference for bright colors in snacks poses a challenge for companies [4] - Previous attempts to eliminate artificial flavors faced consumer pushback due to altered taste and appearance [4][5] - Consumers are becoming more discerning about ingredient labels and spending less on snacks [6] - The success of reinventing snacks without artificial flavors hinges on consumer acceptance [5][6]

Company Performance Concerns - Investors are concerned about the feud between Elon Musk and President Trump and its potential impact on Tesla [2] - Tesla's regulatory credits are becoming less valuable, negatively impacting the company's bottom line [2] - Tesla's Q2 sales are declining as consumers switch to competitors with better products from legacy automakers [3] Market Dynamics & Competition - The elimination of EV tax credits in the new BBB bill is a concern for Tesla [2] - Increased competition from legacy automakers is contributing to Tesla's declining sales [3] Potential Opportunities - Investors should focus on Tesla's other offerings, such as robotics, which may be more profitable than the motor company itself [4] External Factors & Risks - The Musk-Trump feud could create problems for SpaceX's relationship with NASA [2] - Demand issues are adding to the challenges faced by Tesla [2]

So, it's letters, letters, letters day. So, we have seven new letters today from President Trump to a variety of trading partners. He's promising more either later this afternoon or coming tomorrow morning.A big one that he said this afternoon was going to drop soon as Brazil. So, that that's a major trading partner. But what we have so far are threats of 20 to 30% tariffs on a range of countries from Algeria to Muldova that would take effect on August 1st.Um, and and this goes this is on top of 14 letters ...

video which has now hit $4 trillion in market cap and the stock is at a record with that 2 and a.5% gain that we are seeing here today. There was no particular catalyst in today's session that was uh leading Nvidia shares higher just more of the flows that are going into large cap technology that we've been seeing. Let's talk more about all of this and for that I want to bring in my contributor for the morning that is Kevin Gordon director and senior investment strategist at Charles Schwab. Um, so Kevin, we ...

Market Trends & Trade War Impact - Major indices ended the day up despite trade war uncertainty, with the NASDAQ boosted by Nvidia reaching a $4 trillion market cap [2] - President Trump is issuing tariff letters, with a recent announcement of a 50% tariff on Brazil [2][3] - The overall trend is for tariffs to move higher, potentially impacting major trading partners like the EU and Japan [6][8][9] - The market may react negatively as the August 1st tariff implementation deadline approaches [9] Federal Reserve & Economic Policy - The administration wants interest rates to go down due to the cost of financing US debt [15] - President Trump is considering candidates like Kevin Hasset and Kevin Walsh for the next Fed chair, seeking a more dovish stance [14][29] - Piper Sandler suggests high tariffs, particularly in the housing market, could contribute to stagflation, prompting consideration for earlier rate cuts [27][28] Company Performance & AI Infrastructure - Penguin Solutions' stock soared nearly 11% after reporting earnings, with revenue in line with analysts' expectations [34] - Penguin Solutions highlighted a strong balance sheet, now net cash positive with zero net debt, positioning them for future growth in AI infrastructure [36] - Penguin Solutions is focused on custom solutions, with 70-75% of its business now AI-related [44][46] Retail & Consumer Trends - Costco reported an 8% year-over-year increase in sales for June, representing a nearly $2 billion rise [49] - Dollar Tree announced a $25 billion share repurchase authorization, prioritizing returning excess cash to shareholders [48] - Kellogg's shares surged after hours on reports that Ferrero is nearing a roughly $3 billion deal to acquire the cereal maker [48]

Market Performance & Trends - The Dow closed up around 200 points, the S&P 500 up about 0.6%, and the NASDAQ up nearly 1% [2] - Nvidia hit a $4 trillion market cap, closing up around 2% [2] - Apple is down around 16% year-to-date, while Tesla is down roughly 26% [3][4] - Industrials are the number one sector year-to-date [6] - Stocks that cross into the $1 trillion club rally another 9% over the next 6 months on average [12] Company Specific News - Nvidia's revenue soared up more than 200% year-over-year due to demand for AI chips [11] - Nvidia could be on track for a $6 trillion market cap in the near future [14] - Merc will acquire Verona Pharma for about $10 billion [37] - Samsung announced their new Z Fold 7 and Z Flip 7, with the Fold 7 priced at $1999 and the Flip 7 at $1099 [49][53] Economic Factors & Outlook - Potential market pullback with drawdowns on the order of 75% to 15% is possible [21] - Economists forecast initial jobless claims to tick up to 235,000, signaling a slight increase in layoffs [62] - 30-year fixed mortgage rates are currently sitting at 66%, marking the fifth consecutive week of declines [61]

Hello and welcome to Market Domination. I'm Josh Lipton live from our NYC headquarters. There's just an hour to go until the closing bell stocks edging higher here after President Trump unveiled more tariff letters directed at US trading partners. And while AI chipmaker Nvidia, meanwhile, became the first company to ever touch a $4 trillion market cap. Let's welcome in now RBC Capital Markets head of derivative strategy. That would be Amy Wu Silverman along with Yahoo Financ's Washington correspondent Ben W ...