Closing Bell - Closing Bell: Trump, Xi and Musk Front and Center 6/5/25

Episode Date: June 5, 2025

A triangle of tremendous intrigue today surrounding the White House. We discuss all the latest – and what could be at stake for the market with Bryn Talkington, Alex Kantrowitz and Courtney Garcia. Plus, we get you set up for Broadcom results in Overtime with star analyst Stacy Rasgon. And, Brown Forman’s stock on the rocks today – we tell you why. 

Guys, thanks very much. Welcome to Closing Bell. I'm Scott Wapner, live from Post 9 here at the New York Stock Exchange. This Make or Break Hour begins with two major stories today. The big brewing brawl between President Trump and his one-time presidential pal, Elon Musk. A war of words between the two today, and it's getting very, very interesting. Tesla shares under some big pressure this afternoon, caught up in all of that. Look at that. Lows of the day down 13%. We have shareholder Brynne Talkington joining us momentarily on what all of this now means for that stock and all of that unfolding and perhaps even overshadowing that call between President Trump and

China's President Xi, the lead on any other market day for certain given where the trade war currently stands. Stocks not sure really what to make of either event. There's the majors now with 60 to go and regulation a mixed day largely certainly from a sector standpoint. Individually we're watching shares of Broadcom today the company reporting earnings and overtime in just about an hour or so. Top analyst Stacey Raskin joining us in just a bit with his outlook and all you need to know.

And how about shares of Circle surging today in its trading debut right here at the New York Stock Exchange. The stablecoin issuer halted earlier for volatility. It is only up 170 percent as we speak and we'll track that talk more about that coming up too. All of it takes us to our talk of the tape, Trump, Xi and Musk. A triangle of tremendous intrigue today. We start with our own Eamon Javars at the White House

on the heavyweight spat between two one-time besties. Eamon, we'll start there. We'll get to the call between President Trump and President Xi later. But this continues to develop. You have to be glued to your phone to capture all of it. Yeah, it continues to develop so fast, Scott, we can't even make graphics fast enough to get this up on screen as Elon Musk continues to tweet fire at President Trump here over

the past couple of minutes. The President had responded, you know, inevitably to what Elon had been tweeting during his Oval Office session. The President said, Elon was wearing thin. I asked him to leave. I took away his EV mandate that forced everyone to buy electric cars that no one else wanted and he just went crazy Musk responding to that in the past couple of minutes saying such an obvious lie so sad so calling the president of the United States a liar there a week after Elon Musk was in the Oval Office

being celebrated for his great contributions by that same President of the United States. And then responding to this idea that was floated by the President of pulling back Elon Musk's government contracts, including those for SpaceX, a user on Twitter saying that if the government pulls back the SpaceX contracts, that's going to make it impossible to operate or even safely de-orbit the International Space Station. Musk tweeting within the past couple of minutes, this just gets better and better. Go ahead, make my day. So a veiled threat there from Elon Musk to the International Space Station as all of

this plays out. It has been a wild back and forth, Scott, but the stakes here are enormous. It's control over America's biggest companies. It's control over the Republican Party. It's the future, really, of technology and its relationship with government in this country. So much going on here in this Twitter battle as it continues to rage, Scott.

Yeah, and I'm sure it will continue to do so as we even have this conversation. I'll come back to you in just a few minutes. That's Eamon Javers on the North Lawn Forest. Tesla shares, we showed you, down more than 10% today. Take a look at that. Lows of the day down near 14 now as investors in that stock weigh the fallout from all of this. Phil LeBeau joining us now with more on that move in the stock. Bryn Talkington of Requisite is a Tesla shareholder and a CNBC contributor and Alex can't you it's is with big technology also a contributor but Phil I

will go to you for more on this dramatic sell-off in Tesla stock today not surprise got I mean this is what we expected if there was ever going to be a fallout between Elon Musk and Donald Trump. That obviously shares of Tesla would come under pressure. I think aside from the watching the car crash aspect of this, the back and forth between Elon Musk and President Trump, the more interesting thing is what Eamon talked about at the end of his report there regarding whether or not there could be some changes in terms of SpaceX missions and what's approved, etc. Donald Trump ultimately could make things very difficult for Tesla on a number of fronts.

Let's talk about autonomous vehicle technology. NHTSA could open investigations. We could see the DOT become much more difficult for Tesla as it's trying to move towards autonomous vehicle technology, things like the cyber cab. Obviously NASA has a huge say in terms of space launches for SpaceX. And while it's, you know, we sit here and we watch that we say, oh, Elon says make my day and calls the president a liar. There is a point where Donald Trump and we've seen this with other things, we've seen this, look at Harvard University,

look at, you know, you wanna go toe to toe with the president? He will ratchet things up very quickly. Not saying that's going to happen with regard to Tesla, with regard to SpaceX, but that potential is there. And if you're an investor, that's what you're watching in this. Well, speaking of, Bryn, what are you paying attention to out of all of this? How are you thinking about this sell-off Phil said no surprise that if this was gonna happen the stock was gonna sell off

Why don't you opine on that too? Yeah, well, I mean first of all what a mess I will say that you read Walter Isaacson's book obviously, we've all seen this Elon Musk Musk, as brilliant as he can be, can also be mercurial and impetuous. And I just think we have next week the cyber cab rollout, and this is putting just such a cloud over that and really self-inflicted because he, you know, started this. And sometimes the best thing to say is nothing. And so when I sent my notes over earlier, I was like, well, 303 is support. Well, it blew right through that.

So now from a trading perspective, I think the stock could easily trade down into the 250s, 260s until you get some support. And then what you need to have happen over the next few days is because you need to have a really positive rollout next week. I mean, that's what a lot of people are excited for. And although that cyber cyber cab will be a small rollout,

this just puts a cloud because I think Phil sums it up perfectly. President Trump, there's only one president, it's president Trump. He can make things incredibly different for all of Elon's companies, which definitely need the government support in a, in a host the government support in a host of different metrics. Phil, it's so interesting on so many levels as you and Brynn have already laid out, not the least of which is the brand damage that Tesla has already suffered

because of Musk and Trump already being besties up until this falling out that we're witnessing literally in real time and questions that will still persist as to whether that brand damage is more lasting than not. And it's hard to know how that will shake out, Scott. And I don't mean to give sort of a wishy-washy answer there. Do I think that there are people on the Republican or the MAGA side of things who will see this spat

and say, you know what, I'm not a fan of Elon and I'm not going to buy a Tesla. No, I don't think the back and forth over the last 24 or 48 hours is enough for somebody who is looking at Tesla to say, I'm not going to buy Tesla. But there's no doubt that brand damage, it is there. And the question is, what's it going to take to get people back to looking at Tesla as an electric vehicle, as a leader within electric vehicles, as opposed to an Elon Musk product? That's really what has to happen. And it's going to take time, Scott.

It really will take some time. And as long as you have this back and forth, it just keeps it out there. And it just raises more questions for people who might be interested in buying a Tesla. There's so many different investing angles here, AK, not the least of which, as the prior program showed you, that Destiny Tech 100, the closed end fund that focuses on pre-IPO tech companies. We see it down a lot because SpaceX is 52% of that. We could show the ARKK, Kathy Wood, of course, her innovation fund. What's the number one holding?

Tesla. The ARKVX, what's the biggest holding there? SpaceX. So there are ramifications across the investing universe here, not to mention those in some hedge fund corners who have really leveraged themselves to the story of Elon Musk and what he has built and what they believe he will continue to build. I'm curious, AK, your reaction to how all of this is unfolding.

I'm not sure people necessarily are surprised at the falling out, but they may be surprised at how publicly acrimonious it has become so fast. Yeah, everybody watching Elon Musk's partnership with Donald Trump thought the long-term risk was maybe at some point, the Democratic administration comes in and starts to look at Elon's companies the way Elon has been looking at parts of the United States government and maybe dozing, you know, SpaceX or Tesla or causing problems there. This is the unexpected part here. When Elon Musk left the White House, the general commentary was, he's gone, but he and Donald Trump need each other so much that it was notable that it was like fairly friendly parting. But today's different. I think

Elon Musk today has crossed a line that's going to be very difficult to pull back from because he suggested that Donald Trump would not have won that election without him. And so now this stage of this partnership is really unpredictable and has sizable negative potential for Elon and his companies and all of the things that Phil mentioned. And we also see, like you mentioned, there is a potential downside here with SpaceX there in play. The one thing you would say if you're on the Elon side is, look, SpaceX is an important partner for the government and the government does need this company. So it's not as easy to, you know, as you would think to just shut it off.

And that's why Elon is saying, make my day. But Elon's playing with fire here and there could be some serious negative consequences for him and his company, given who's sitting in the White House right now. You give any credence to the idea, how cynical it might sound, that some of this is calculated on Musk's part because he knows the brand damage that he causes.

He caused by being involved in the way he was with the president. I mean, you look at the sales numbers out of Europe, they tell a story, right? They don't lie, and they've been consistently negative. He knows that he is upset at least half of his prospective customer base. He knows that he needs to some, in some respects, at some time, rehabilitate whatever damage he's done to his image. Do you give any credence to that being part of this? If that's Elon Musk's play here, then he's playing it wrong because, as the market is telling us today, that it's a silly play if that's the move, because it's going to take time to rebuild the relationship with Europe if he can.

I mean, if he can, it will take years. And this turning against Trump is not exactly going to win over those customers that he's lost already. And there is risk. I sort of think there is risk here that if you were running out to buy a Tesla, let's say you're buying a Tesla Cybertruck because you supported this Trump and Elon partnership, that maybe you're more lukewarm today than you were yesterday. How could you not be? So if anything, this is gonna further decrease Elon's popularity and increases unfavorability and pile on numbers that were already pretty bad for the guy.

Yeah, Brent, I'll ask you just one more time as we wrap it up. You alluded to it, but I want to just get it on the tape. You would not buy the stock here today because you think it's going potentially 20, 30, if not, many more bucks lower. Yeah, I think 250, 260, let it settle out. I have calls against the stock, which I'll probably be able to close out when I had sold calls. So I would wait to 250 to 60 before stepping in.

All right. Brins going to stick around. Phil, thank you. Alex, we rushed you to the camera and we're grateful that you did that for us. It's great to have your insight. We want to get back now for part two with Amon Javer's The Other.

Can you believe it's The Other? Big story out of the White House. The other is the other. The other is the other. The other is the other. The other is the other. The other is the other. The other is the other. The other is the other. The other is the other. The other is the other. and we're grateful that you did that for us. It's great to have your insight. We want to get back now for part two with Eamonn Javer is the other, can you believe it's the other?

Big story out of the White House today. It's President Trump's call with China's President Xi. I can't even believe that we've relegated this to second level story on your beat today at the White House, given how much anticipation there was at the idea of a call this week at some point. Yeah, we're 12 minutes into your show, Scott, and we're just getting to it. And we can't get to it just yet, actually, because Elon Musk just dropped another post

that I think we should discuss here, right? I mean, Elon Musk tweeting within the past one minute, time to drop the really big bomb at real Donald Trump is in the Epstein files. That's the real reason they have not been made public. Have a nice day, DJT! So there's no way to know whether Elon Musk has any insight at all into whether Trump had any connection with Epstein other than what we know publicly so far, or whether there are any Epstein files at all.

This is just pure political piling on and name calling by Elon Musk at a time when, you know, remember, the president hosted a Tesla sales event on the South Lawn and until recently, and I have to check, just down here about 50 yards from where I'm standing, the red Tesla that Trump bought from Elon was parked on West Executive Drive and we would see it every day. So this breakup is very very recent and now very very

harsh and very personal but but if I can make a very hard pivot here to to Xi Jinping and then the debate that you're having about you know whether this call today is a significant call in Wall Street terms in terms of there being a deal. The president said something in his Oval Office session earlier today that was a little bit amorphous about what was actually agreed to. Let's play that sound and we'll deconstruct it on the other side of the sound. I wouldn't even say finalizing it up, Scott. I would say we have a deal and we're going to just make sure that everybody understands

what the deal is. So the president there is saying we have a deal and we're going to make sure everybody understands what the deal is. So the president there is saying, we have a deal, and we're going to make sure everybody understands what the deal is. Well, what does that mean? I've asked White House officials. Nobody here is saying, to me anyway, what's in that so-called deal that the president

is talking about there, whether or not they actually agreed to anything on that call. No one is reading out any details of any agreements suggesting that they have to get to this additional meeting between high level staff and then maybe to the face to face meeting at some point later this year possibly between Xi Jinping and President Trump before anything can be finalized. So the president's suggesting that they agreed to some things. No one here willing to say what those things are, whether they were actually agreed to or not and whether any of that has been put in ink on paper anywhere.

Yeah. What a day at the White House. Eamon, raise your hand, man. I mean, keep your phone close and let us know what else happens, and we'll be the first to talk to you, we hope. That's Eamon Jabbers. That's a wild ride today. On the North Lawn of the White House for us.

Now let's bring in Maryland Bank of America private banks, Chris Hyieze, excuse me, and CNBC contributor, Payne Capital's Courtney Garcia. Requisite Capital's Bryn Talkington, of course, is still with us. My bad on your great last name, Chris Hyieze. I'm going to spare you from commenting on the beef. Thank you. Okay? You're not spared from talking about

whatever the president is talking about in terms of this quote unquote deal that he referenced from this phone call. How much does the market need progression in the trade war, especially with China? It's still at the top of the heap. We were starting to shift from all things around tariffs and trade over to the potential passage

of a new bill. The market was looking forward to financial deregulation perhaps. It was looking to reexamine the new path forward. And that was part of our four phases. You go from reset, where we were in April, what are the new rules, Scott, to moving into relief,

we had a massive relief rally, one of the sharpest in history, right? And then you go into now, which is re-examine, are we actually going forward with economic growth? Is the consumer not just resilient, but are they okay? So we're going to be... Are you answering those questions too, rather than just asking them? Yeah. Do you think you have answers? Our data suggests real time, our data suggests that the consumer is not only resilient, they're right on track.

They've slowed down from higher spending where they were before, but they are not falling below the so-called normalcy trends. So that's a good sign. Your bank has a pretty darn good view into the consumer, as Brian's always talking about when he when he comes on on the air.

So I hear you on that. How do you view these events? Now I don't need you to comment on the personality clash between these two. But if this leads to some delay in the passage of this bill and a bigger argument

in the political universe. What's the ramification for the stock market if that happens? Well, the big question is what's happening with inflation in the short term, right? Because we've actually continued to see inflation coming down. But if some of these tariffs are going to get ratcheted up again or they're not going to be resolved, you could see longer term inflation continue to rise. And that's really one thing that investors are worried about. Is that going to start to reflect into the consumer.

So, so far that's not happening, but depending on what's happening with the talks with China, that can absolutely affect this. And then we started to move past this, which you make a great point and look at less regulation, look at tax cuts, which is all in this bill. But again, if that bill is not going through, a lot of that pricing may have to go back

to the drawing board. So people are absolutely gonna continue to watch this. We're two and a half percent, given just everything that's gone on, Chris, we're two and a half percent away from a new high. We're there about, I mean, we're at the lows of the session on the S&P. So we backed away a little bit, and the NASDAQ's down 1%. I mean, Tesla's gonna sell off 13%, 14%. You're obviously gonna see a recoil there.

But how about that? I mean, we're so close to new highs in part because it feels like we've desensitized ourselves from every little headline related to the trade war. Yeah, we're making progress on what was to what is about to be. And there'll be certain news stories that come and go, but the fundamental reasoning to re-risk a portfolio, not alone back then in April, but even now on a go-forward basis is going to be profits. Margins and profits. If you envision this world, Scott,

in which you get generative artificial intelligence in the next few years, not next few weeks, hitting at the cost line in a positive way, you get global growth, which is re-accelerating. For the first time, we're 16-year breakout emerging markets and non-US markets, and it's real fiscal spend over there. And you get those two engines working together,

revenues go up, costs are contained, margins widen out, you get a new profit cycle. So that's what we're focused on. I can't help but tell the story again about what's happening on the screen that everybody's looking at here. Tesla shares down 17% right now. You're below a trillion in market cap, $887, $888, $9 billion as we speak. It's the worst day for Tesla stocks in September the 8th of 2020, near

five years ago for shares of Tesla. That day it lost 21.5%. We'll continue to watch that. Back to the issue at hand, Bryn, because we've talked to you about Tesla already. This notion that it seemed like once again a foregone conclusion almost, that we were gonna take out these old highs. And here we go, wondering what's the real state of affairs between the United States and China,

and what's the real state of affairs on the roadmap of this tax bill? I think the tax bill will get passed. You know, Ted Cruz was on the show earlier. He's a veteran, obviously, Texas Senator. It will get passed in whatever form. It'll look different, but that will happen. We've seen this show many times.

I think with China, it's much more complicated because it's not about supply chains, per se. It's about rare earth minerals. It's about intellectual property theft. It's about intellectual property theft. It's about Taiwan. It's about national security. So it's not like structuring a deal with Vietnam. Okay, this is very complicated.

And so we'll see what happens. I think with China, this takes a very long time to actually negotiate a deal that's a win-win for both. While at the same time, we're in a whisper of all time highs with the S&P. I just still think it's a low probability we punch through that right now. I think that's going to have to happen at the end, more of the end of the summer when we get some quick wins out of the White House on other trade deals. But I do

think China's going to take a while to get anything substantive because there is such a big national security issue at hand. Yeah. Court, this move that we've seen in tech over the month of May was extraordinary. NASDAQ was up more than 10%. Is that a believe in that move can continue trade? How do you feel about that? I don't think that trade is over. I think you're getting a lot of people

who want to be in that trade, especially as we're refocusing on artificial intelligence. But that trade is getting expensive. I mean, when you look at the S&P 500, it went down from a forward P about 18 around that liberation day to now it's over 21 times forward earnings. But a lot of that is just the MAG 7, which is now trading over 27 times earnings. But look at the other 493, it trades at a much more reasonable 19 times. And that's where I think, I don't think the trade is over, but I think you're getting better value in other places. Tesla's

when we're talking about it, obviously it's getting hit really hard because it trades, it was a hundred and almost 40 times. I mean, it's dropping by the minute as the price is going down. But you know, you have this high bar to reach and now if they're not going to have the kind of regulatory approval people thought they did, yeah, it's going to bring down the valuation. Yeah, I don't know what the outlook is going to be.

There are now suddenly so many moving parts on the tech trade. What do you think? It's hard to be anything at least benchmark weight. You can't underweight innovation. I'm not even suggesting that that would be in the conversation. Should you continue to overweight it? Well, it really depends on what the other bookend you have.

If you are overly exposed to the high valuation trade just in and of itself, no, but we're still benchmark weight. Why? valuation trade just in and of itself? No, but we're still benchmark weight wide because it's still the engine of growth in not only this economy, but the S&P. And there's a reason why they have the higher multiples. If you're going to look at a full portfolio, take your growth, take your technology in the States,

take your value overseas. That's the big barbell that people should consider on a go-forward basis. Still, that trade still works. I mean, the ECB has been what, the eighth rate cut they did today. Now they're going to be on the sidelines, it sounds, for a while. And you know, I know the German chancellor was in the oval today. Their economy maybe has shown signs of sort of turning the corner.

And you still believe in that trade? We do. This is early days. I mean, 12, 13 times earnings for many companies, many countries overseas. So it's first a value, and then profits come later. They're not gonna surpass US profit growth, but they'll narrow the gap. You get a weak dollar tailwind

and you get fiscal spend overseas. The under allocation in non-US should be narrowed over the course of global allocators. And we see that happening and it's still very early. All right, we're gonna leave it there. Chris, thank you. Chris Heisey.

Court, good to see you as well. And Bryn, thank you. Bryn Talkington. There's another big story today. A monster IPO here at the New York Stock Exchange with an incredible move in circle, surging. Taneya McKeel is tracking that for us at this moment. Taneya? Yeah Scott, you

don't see a lot of IPOs doubling in their debut. The shares opened at $69 after being priced at $31 last night. At one point it traded as high as about $103. Trading volume right now about $39 million, so exceeding the number of those freely floating shares available for trading. An enormous success in its second attempt at going public, a big part of that, of course, thanks to the much more crypto-friendly administration under President Trump. This company, Scott, has been around for more than a decade.

It didn't become focused on stablecoins until about 2018, and Wall Street Now saying this sector of crypto could grow tenfold in the next five years. And in an industry that is rife with scams and scandal and meme mania, Circle really is known for its commitment to regulatory compliance, has a very clean reputation. So as you start to see banks, payments firms, fintechs and more, Uber, I think I saw headlines today moving into stable coins, that advantage could really continue to serve them. The stock up 148% right now.

Yeah, we didn't want that to get overshadowed at all today. That incredible move. Taneya, thanks for highlighting it for us. And we'll watch that stock right up until the end. We're just getting started here on Closing Bell. Up next, Broadcom results are hitting an OT. And that's why we have star analyst Stacey Rascogne standing by. He'll tell us exactly what he'll be watching for. We are live at the New York Stock Exchange and you are watching Closing Bell on CNBC. Broadcom shares surging over the past month which makes today's earnings all the more interesting.

Can it live up to that hype? Let's ask top chip analyst Bernstein's Stacey Raskin. Nice to have you here on a very interesting day. I hope you've had a chance to actually look at Broadcom and not the your Twitter feed to see the latest. Well we're looking at it for sure. Yeah I'm sure you are. I hope you have enough attention though on Broadcom today. What are your expectations? Did I write that intro in the appropriate manner? The stocks go straight up to the right. I mean, the hype is they better live up to that.

Yeah, I think so. So yeah, the stock's been vertical the last month or so. I think the numbers and everything should be fine. I mean, the AI story still looks pretty good and you have some of those products that are ramping into the second half. You know, you got 40% of the revenue is like sticky mission critical enterprise focused subscription based software in a world where people worried about tariffs and things that should be fine.

And the non AI semi business is already kind of at a cyclical low. And the expectations for growth are the streets basically modeling very little growth going forward. So it's fairly conservative. I think the numbers should be okay. The question is just, will that be enough to your point? The stock's up a lot, the valuations are higher. The setup's a little trickier than maybe it would have been a few weeks ago just because of that.

Sure. Let me ask you this. For those who may not know enough about the differences between all of these chip players, especially the ones that are the most highly regarded in the AI play. What area of the market does Broadcom do better than most? What do they have that Nvidia doesn't have?

Why would I buy Broadcom and not Nvidia? Yeah, you bet. So, I mean, there's sort of two competing types of silicon for AI infrastructure. One is GPUs and Nvidia cells, and the other is custom silicon that's really for the hyperscalers. Every single hyperscaler is working on their own chips for their own workloads. Broadcom's kind of the 800 pound gorilla there. There are some other players, Marvell and AllChip and MediaTek, a few other guys in Taiwan, but Broadcom really is the big one.

They've got the biggest customers. They have the best, it's a technology called Certes. You can think about it as like a really high speed, high bandwidth interconnect to get data on and off the chip. They've got best in class, it's hugely important. They've got scale that others don't. I mean, and they've got long customer relationships. Google's their biggest customer.

They've been working with them on this stuff for over 10 years. So that's kind of where they play. But in a world where ASICs are taking share in a pie that's actually getting bigger and bigger, they're kind of viewed as the way to play that. And it's benefited the financials and it's clearly it's also benefited the multiple.

Let's finish with just broadly speaking about the semi trade which is back in a big way as you know better than most. Right. What's up with that. Is it is it like is does that have staying power. So we'll see.

Right. I think it's a few things. Right. So we had a postponement of the tariffs at least for now. So that certainly helped. I think in the broad day space there's some signs that maybe we're

reaching a cyclical bottom, maybe going into recovery. And we'll see if that's tariff related pull forward or not. But I mean, there's a lot of companies like in the analog space are talking about recovery. And then clearly the AI trade is back on versus where things got to after liberation. And even Broadcom, I think it was 140 bucks in the beginning of April after Liberation Day as the AI trade went away and that's back in spades and that's driving things a lot. I think the AI trade is real and I think can still happen

and that demand looks really strong. I think on the more broad-based demand recovery, we'll have to see as we get into the second half of the year but near term looks pretty good. At least for now, maybe this has a little bit of a little bit of legs. All right. Half hour so we'll find out

what actually happened. Stacey thanks. We'll see you soon. Stacey Raskin joining us once again. All right. Up next being successful in sports beyond the field of play

our next guest doing just that Zach Leonsis of Monumental Sports is right here post nine after the break. All right welcome back standing out in a crowded arena isn't easy but our next guest company doing just that.

Monumental Sports winning multiple awards last night at an event honoring standouts in sports media. Zach Leonsis is the president of media and new enterprises for Monumental Sports joins us now. It's good to see you.

Good to finally meet you. Yeah, thank you for having me. It's nice to be here. Nice to give some love too, to a fellow media company. I love that. Doing things well. Washington DC fan here.

Yes, there's no doubt that everybody knows about that. How'd you win these awards? Like what is it about Monumental that has enabled you to stand out as I said? Well, yeah, I think most people, they think of us just as sports teams, but sports teams have really evolved into being modern day media companies. You know, clearly there's a lot of pressure on the traditional linear system these days. The middleman is really being pushed out and so really I think what's become valuable is people who own valuable live IP or big libraries of programming,

the Disney's of the world for example. And I think that our leagues, our teams in particular, we can deliver a lot of tonnage in programming. We bought our regional sports network back from Comcast and NBCUniversal, kind of a zig when most were zagging a couple of years ago. I was going to say, most people couldn't run fast enough from the regional sports networks. You guys doubled, if not tripled down. Exactly. So it was definitely a different perspective to take but I think when we

looked at the opportunity we viewed it as an opportunity to buy our rights back and fandom isn't on the decline. The traditional system is hurting but I think that we believe in the medium to long-term future of our rights and when we bought our network we built brand new infrastructure. We have the best in class production plants, studio space, streaming platform, brand. We revamped our programming lineup. We're doing more live games than ever before. Linear and sort of traditional cable

and satellite distribution is always gonna be important for us, but increasingly direct to consumer, additional digital players out there, growing our ad sales business, consolidating that with our sponsorship team has been a huge hit for us, integrating real time gaming and sports betting opportunities has been a great opportunity as well. So we've had a lot of fun with it and we're attacking as opposed to trying to retreat in this place.

At the end of the day, for a media company to be successful, you have to have great content, right? You do. Content is king for a reason. Speaking of I mean you had arguably the best content you could ever want in Alex Ovechkin and the great chase right. Trying to break the

record. So in game viewership for Caps games on monumental up 37 percent year over year streaming viewership for the regular season up 90 percent. It was huge. The Ovi effect. Definitely the Ovi effect. It helps to have a good team as well. Like I said, I mean our fandom isn't on the decline. I mean our fans are increasing their engagement and the number of fans tuning in has been better than ever. We also had

a generational talent 20 years in the making, eclipsing a record that obviously no one thought could be broken in the past. And people forget Alex Ovechkin broke his leg earlier this season, came back, still scored over 40 goals at age 39 years old. Truly amazing. It's something that, you know, just frankly, personally, we were really proud of. Let's clear up one bit of interest I know to everybody, not only in the D.C. area, but everywhere, frankly, given how much of a draw he is. Is next year his last year? I couldn't tell you you'd have to ask Alex himself but I think Alex is having a lot of fun and the team is having a lot of fun around

him last year I mean it was such a magnificent celebration of our 50th anniversary as a team we had a great team and for him to break the record I don't think there was a dry eye in the house. We'll have to see how next year goes. Speaking of the house, you're enhancing the house, aren't you? Yes, big renovation. And the transformation that you're doing. When's the completion date?

What kind of costs are we talking about and why the need? So it'll be completed three summers from now. And if you went to the basement level of our building, it looks like a totally construction you know, construction zone right now. Over the last five years, we've invested $200 million into the arena to elongate the life of the building. We're now pursuing an $800-plus million renovation.

So in terms of size and scale of other buildings, this is one of the largest renovations ever. It's a total overhaul of the entire fan experience, no matter where you're sitting. Bigger hospitality areas, better kitchens, bigger food quality. We're expanding our footprint from 900,000 square feet to 1.6 million. So we're just totally reinventing the experience and adding a lot of premium space as well. And then not to, certainly not least, the player experience is going to be changing too. We're doubling the size of our locker rooms, really trying to future-proof the building and the organization for the next 30 years to come.

I mean, you're telling the story about why sports in and of itself has become an investable asset. That's why we have a vertical here at CNBC, CNBC Sport, because of that very reason. I appreciate you stopping by and spending time with us. Zach, thanks. Thank you very much for having me. And congrats on those awards. That's Zach Leoncis joining us right here post night. Up next, we are tracking the biggest movers as we head into the close. Kate Rooney is standing by with that. Hi Kate. Hi Scott. So we're going to

be looking at a retail reckoning. One fashion giant is warning about tariffs and then a satellite company with what we're going to call out of this world quarterly results. Boosting share today, we're going to tell you who it is, all the details coming up next on Closed. With 15 out from the bell, let's get back now to Kate Rooney for the stocks that she's watching. Tell us what you see, Kate. Scott, so let's start with PVH shares tumbling today after the retailer cut its full year profit outlook, citing the impact of tariffs on shipments to the U.S. The Calvin Klein and Tommy Hilfiger owner did report better than expected Q1 results,

but that was not nearly enough for investors today. The stock has been down more than 16% or so for its worst day since April 2024. Meantime, we have Planet Labs on the other side. Shares are soaring today after posting a Q1 beat on both the top and bottom line. The satellite imaging company posted break-even adjusted earnings, but also its first quarter of positive free cash flow. Shares are up, have been up more than 50% today, 5-0. Best day on record for that stock, Scott. Wow, Kate, thank you. Kate Rooney, still ahead. Brown Foreman shares on the rocks today. What's weighing on that name? We will tell you when we come back. Programming note for you, don't miss

the CNBC exclusive. The CEO of MongoDB, that's coming up four o'clock Eastern time because the stock is up big today on the back of the earnings report. Look forward to that. Up next, right here, what to watch for when Netflix shareholder meeting kicks off in just over two hours. The market zone is next. We're now the closing bell market zone CNBC senior markets commentator Mike Santoli here to break down the crucial moments of the trading day. Brandon Gomez with us on Brown Foreman's tariff warning and Julia Borsten looking ahead to Netflix's shareholder meeting this afternoon.

Mike I'll turn to you. Was this a day or what? And the biggest news had nothing to do really. I mean yes the Tesla sell off but the drama causing it was the biggest story of the day. It's pretty extraordinary in detail and also the way that it tested this market's ability to try and just sort of hive off what seems like outlier moves, and then just sort of stay focused. And it mostly passed that test.

Now, the Tesla sell-off definitely destabilized the NASDAQ to a fair degree. You have a lot of stocks that are adjacent to Tesla, people who are loaded up on Tesla, they're also going to own a lot of Palantir. They probably have some Nvidia. That stuff's getting sold off, but not really in a messy way. And in fact, the equal-weighted NASDAQ 100

is kind of not doing much of anything. Meanwhile, in the New York Stock Exchange, exactly as many stocks up as down. We're hesitating here ahead of the jobs number and trying to do everything we can in the market, just collectively, to not get knocked out of gear. And so far, you've been in gear. It's been almost like this summer grind higher mini melt up mode. We'll see if that can last into and through the jobs

number tomorrow because they do think market craves a stronger number. We'll see if we get it. There are so many derivative conversations to be had off of the Trump must battle that the market will and maybe already is paying attention to, the tax bill, the future of that, the bigger picture, does Musk go scorched earth? Does he put his money to work against certain candidates? I mean, there are so many different things to sort of game out based on how this thing plays out.

It really does scramble the field a lot. I don't think the market even knows how it would try to extrapolate, let's say, what it means for the budget bill. You know, I mean, does it just mean that maybe there's gonna be a little bit more of a movement to narrow the deficit effects? Does it mean that it's just gonna create

a stalemate there for a while? The midterms I'm thinking about. All of this stuff needs to be thought out in what is today an impossibility. Not enough to work with yet but it is fascinating and just it shows you just kind of how wide things can swing in a short period of time especially when you consider the way so many stocks got capitalized after the election because of their proximity to the administration and what it could mean for them. Yeah, it's just extraordinary.

Brandon Gomez, Brown Foreman, tell us more please. Hey Scott, yeah, more uncertainty in the market to your point, but for Jack Daniels, maker Brown Foreman, it's plummeting on a disappointing quarter, missing Wall Street estimates, net sales for whiskey products flat to end the fiscal year while tequila and those canned ready to drink cocktails, well, they both saw declines. The company's CEO, very upfront saying Q4 results, quote, did not meet our long-term growth aspirations, issuing weaker than expected guidance. Why?

Well, weak consumer spending and tariffs. The company's CFO giving investors little relief on the call, saying, quote, none of us can predict what's going on, saying impact will largely come from steel tariffs and Canada removing US bottles from shelves. Analysts at Bernstein estimating a 50% tariff on US whiskey sold in the EU across the pond would hit brown foreman's earnings before interest and taxes by 10%. You see Constellation Brands, Anheuser-Bosch,

Molson Coors all trading lower in sympathy. Scott? All right, Brandon, thank you for that. Julia Borsten, on any given day, Netflix has been one of, if not certainly the best stock in this market this year, and now a shareholder meeting on tap. Well, that's right. Netflix shares gaining another percent today ahead of its annual shareholder meeting that's tonight at 6 p.m. Eastern. The company hitting another record high as the stock continues its big run. It's now about 90% in the past year.

This after earlier this week, UBS raised its price target on the stock $1,450, saying solid viewership trends, a strong pipeline for new titles, and the favorable industry backdrop gives them rising conviction in Netflix's ability to drive subscriber growth. Now, Netflix's annual meeting tends to be somewhat non-eventful, but today we are watching the election of the company's board of directors. Most notably, both Institutional Shareholder Services and Glass Lewis recommend that stockholders vote against the election of Jay Hogue, who has been a director since 1999, both noting his poor attendance to board meetings in the last fiscal year.

Scott will be watching this meeting coming up. All right, JB, Julie Borstin, thank you very much for that. Back to Mike Santoli. Jobs report tomorrow. We can get back to like some serious stuff. Yeah, it was a little bit of a flutter today when we got slight uptick in weekly claims. Nothing too decisive on that front. Bonds are kind of hanging in there. They're in the range. Again, I said before, I still think you want kind of good news on jobs because the Fed's not going to be in a hurry to come to the rescue. So you're not rooting for a weak number that would bring rates down in a hurry. We are with the S&P 500 at basically

a three month high. You've had this nice march higher. You know, definitely at a spot where you've priced in some trade progress. I think that was one of the lessons we got today too. This phone call between Presidents Trump and Xi, maybe not much happened, but there was a time when just the existence of that call, you would have gotten more of a sustained lift in the market. Right now, I think we're already presuming we get progress on that front. The other thing Jobs is going to do is at 8.30 tomorrow, that's the biggest known catalyst to come for a little while.

So we'll see if the market has its reaction and then either goes to sleep or tries to figure out whether this rally we've had up to this point is in need of a rest. Okay, good to see you. I'll see you tomorrow. It's Mike Santoli. See all of you as well. We'll go out red across the board. Tesla Stair is going to close down about 14%.

Circle surging. An IPO so nice, they ring the bell twice. We'll go out red across the board. Test the stairs, gonna close down about 14%. Circle surging. And IPO so nice, they ring the bell twice. And the O.T.