Power Lunch - Stocks are little changed as investors await details on U.S.-China trade talks 6/10/25

Episode Date: June 10, 2025

Stocks were little changed Tuesday, as Wall Street waits for more insight on trade discussions between the U.S. and China. We’ll cover all of the angles for you. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Stocks higher again as we close back in on record highs. Welcome to the show, everybody. I am Brian with Kelly Evans. Here's what's new at two. Three key questions and why they matter to you. I didn't even try to rhyme. First, could today be the make or break moment for the U.S. China trade talks? Then can meta Facebook learn from Apple's AI mistakes?

And finally, is the IPO market surging again? We're going to get you the answers to all of those. Straight ahead. But first, let's get you a check on these markets. The Dow is up around 100 points. The NASDAQ 100, closing in on some record highs. We're generally drifting higher ahead of the CPI report in the morning, but we were well off the session highs we notched just about an hour ago.

Energy is leading the S&P, interestingly enough. N-phase, APA, Schlumberger, SLB, I think we call it, now up 4 to 5%. Big moves the other way in the consumer space with smuckers falling on a revenue miss. That's leaving the decliner's in the S&P. It's down 15%. avocado distributor, Kalavau, also plummeting on some weak results. Haven't talked about that one, Brian, at a long time. And McDonald's lower after getting three downgrades in two days.

One standout, though, Casey's General popping on an earnings beat, those shares are up 11%. All right, so there's obviously a lot to get to, including apparently an avocado story. But let's begin with the trade talks between the United States and China. They are a bigger deal, and they are underway in London. Commerce Secretary Howard Lutnik saying they are, quote, going well. But there still is no firm deal.

And really until that happens, the market, you may not entirely trust some of the words today. And really the next few days could be make or break moments. So let's make you smarter about what is really at stake. Joining us now is CraneShare, CIO, Brendan Ahern. And on set with us here is MCC, Global Enterprise's CEO, Michelle Caruso Cabrera. Do I have to say you're also a CNBC contributor? If you like, whatever. Assumed, well-known, global celebrity.

What's at stake here in London? What's a win? Oh, well, so first of all, the way the markets are acting, they think a win is coming, or at least things will not get worse from here when it comes to the trade war. But they could. Well, if they do get worse, right now the market's offsides, right? Because it's been steadily climbing. It appears we are in a period of de-escalation.

We got that from Kevin Hassett yesterday, where he outlined the shape of a deal right here on CNBC. We heard it from Howard Lutnik as he got out of the car in London. They're sending all kinds of signals that things are going on a glide path that's more positive than it was. So when it comes to trading the trade war right now, that pressure is off. It could, if everybody's wrong and they come out and say, this thing fell apart, of course, you're going to have a sell off. I had a viewer and CEO come up to me on Saturday and asked me a really smart, as all of our viewers are just so smart. Simple but important question. Is the White House still able to screw this up?

I'm surprised he's even asking. It's, I mean, could they still botch? Because to Michelle's point, the markets have come roaring back, up 25% in a month, two months. Could they still botch this trade negotiation? So what we don't know is what ultimately the White House wants. They haven't made that clear. And that's not a criticism. I think that's part of their method here is to keep things close to the vest

and to figure out what they can get out of the Chinese. But I don't know. Do they want more production here, really? Do they really want the Chinese to trade, change some of the way they do investments in the country? So balance of payments shifts. So that way we have less of a trade deficit. It's not clear to me exactly what they want. And I'm sure they're not telling everybody what they want because they want that strictly for the negotiation.

So depending on what they want, I suppose, if they don't get what it is. I think that's exactly right. Brendan, I'm curious if you want to kind of take that ball as well. What outcome here do you think we're heading towards? It doesn't matter if all the signs are just simply positive that more or less the status coal will work out some tensions on whatever the key priorities are for each side. And stocks will continue to rally in the face of that. No, I mean, we believe President Trump is a business person at heart, that he certainly wants

to see U.S. businesses succeed in China. And obviously, a lot of U.S. multinationals, many of which have visited the White House, have probably explained that to him. So I think, you know, this is a little bit of the art of the deal, but I think that's, at least there's communication and dialogue, something that really didn't occur under the Biden administration. And so I think, I think, you know, they're making small steps. There's areas where I think they can make small, small deals, which hopefully then lead to bigger deals, things around fentanyl, issues like the rarer semiconductor exports. And ultimately, the potential for a Trump Xi summit, I don't think should be underappreciated. I think it's something that could actually happen this year.

Yeah, that could be a future catalyst in June. They keep talking about the birthday summit because their birthdays are so similar, and they happen to be in the same place at the same time. So that could also be a place for progress. But let me paraphrase Brandon Bryan's question again, which is we now we have this anticipation about what at birthday summit or what could happen, you know, kind of happy talks on both sides, although maybe a little bit less than the Chinese side.

I mean, is all of the good news already priced in here? And could we wake up to another nasty surprise in the form of a tweet or otherwise, where we're going back down the road that we were on kind of pre-April 2nd? I think I think it's certainly feasible. I mean, we are still in this 90-day truce period. But I think a lot of on U.S. equities, certainly they've performed very well over an extended period of time where I think for us kind of investing on the Chinese equity side, we think this geopolitical headwind, if we can make some progress, it really takes some of those

handcuffs off. And we really do believe despite the year to date, despite the strong performance, of K-Web over the last year and a half, we do think there's significant upside to Chinese equities based on valuations where I think for U.S. equities, it kind of need, it potentially needs a trade deal more because of the higher valuations today. Who has more to lose here, Michelle? Us or China? And who has the leverage?

I've always believed China has more to lose than we do. We have a much more dynamic economy. We have many more choices. We are far less interventionist. in the economy compared to the Chinese. The Chinese have a weak economy because of self-inflicted wounds where they continue to be deeply involved in distribution of capital, so the best companies don't get the money.

They are so reliant on trade. They have, I believe, far more to lose. Do they have points of leverage when it comes to rare earth? Yes, but price draws commodity to markets, and we have dynamism where we can eventually replace those things. But if they have more to lose, Why have we backed down and seemingly gained nothing? Oh, I don't know that we've gained nothing.

I don't know. I mean, I think China's going to end up with much higher tariffs on them than when they started out. And I think they're also going to have to, at some point, kind of look internally and say, okay, what are we doing to actually fix our own economy? And the more pressure we put on them, the more pressure they face internally. Right. We just saw that report by Eunice about all the excess production of EVs, for instance, which, again, great for the consumer.

which is driven by government intervention. And cheap labor. By the way, everyone's like, look what China's doing with the BYDs. Yeah, if you have people working for a dollar an hour, you're going to make a cheap car. By the way, a disposable car with really bad battery stuff. That said, Brendan Ahern, the Chinese stock market has been on fire. Why? Well, I think, one, we had a derivative-induced meltdown in January of 2024.

And since then, Kweb's done twice the performance of the S&P 500. So I think you're seeing a little bit of a re-rating taking place. Some of that's driven by Deep Seek, as well as the Chinese government is stimulating their economy. They're trying to deal with a housing crisis. But I would say I would disagree that China has more to lose. I think that's why they're the only country that's retaliated against the tariffs. China's far less reliant on exports than I think.

Most people think that 1.4 billion Chinese people are sitting around making these things. And that's just not true. Over 50% of China's GDP is driven by the service sector. Less than 12% of their GDP is driven by export-driven manufacturing. And if you apply that to what percentage of Chinese exports go to the U.S., we think less than 3% of China's GDP is directly geared to the U.S. economy. Conversely, the U.S. economy, two-thirds are personal consumption expenses. So I think going into this trade war, the Chinese government had done a lot of work knowing that the U.S. economy, as a consumption economy, is potentially more reliant on China than China is relying on the United States.

The one thing I would add when it comes to the Chinese stock market is, remember, you have the home team, like they literally have the government team in their buying stocks. There's just data out today. The Financial Times published it that the sovereign wealth farm, an arm of the government. of it has bought something like a trillion dollars worth of stocks. I mean, they are working very, now that's good if you're buying China stocks. It's a good reason not to bet against China stocks. Exactly. Because we joke around about the plunge protection team right here in the United States. Well, the Fed step in. They actually do step in. It's the, I guess it's the power, what do they call it the velvet fist or the iron glove or whatever it is. No, they admit it. They admit it. They admit it

that they go in and they have, you know, arms of the government buy stocks because they want to support the stock market. It's, you know, they're also seeing it as a measure of success. So, you know, you don't necessarily, like, we don't fight the Fed here. I don't think you want to fight that trend in China for sure. Good stuff, good discussion. Certainly a lot at stake. Breiden Ahear and a crane chairs, thank you. Michelle, thank you. And before the break, want to flag some moves in the drug makers, HHS Secretary RFK Jr., abruptly firing the CDC's vaccine policy panel. Pfizer and Mark shrugging off the news are up higher by 1 and 2% today. Moderna down two and a half percent. It's had a much harder year. In the pharma space as well, we have

InnsMed shares surging on positive results for pulmonary arterial hypertension. You heard that right. INSM up 27 percent today. That's a good way to relieve hypertension. Have your stock rise 27 percent? Or maybe get a different kind of hypertension. As we go to break, just like we saw with Apple, companies have a lot to gain with AI, but also a lot to lose. We'll highlight some of the winners and losers and who could be said to cash in next. Stay with us. Welcome back yesterday. Apple learned a tough lesson that AI isn't just a buzzy word right now. Investors really want to see real results. And the company is failing to convince them it's making substantial progress on AI development. Barclay says they weren't expecting much, but we're still disappointed. UBS says announcements were more evolutionary than revolutionary. And Goldman directly called out Apple's limited AI updates. Turns up the pressure for meta, who is also at risk of falling behind. In response, Mark Zuckerberg, creating a new. AI lab pursuing super intelligence. But as with Meta's last big bet the Metaverse, Will Zuckerberg missed the mark here as well. Let's talk about it all with Daniel Newman, the CEO Futurum

group. Daniel, I don't know if I'd go so far as to say that meta's behind. I mean, there's clearly some internal drama, but they can use, look, they have Lama. There's tons of companies developing on top of that. Maybe they just need to monetize it. They are using their own AI to optimize ad spend, which is music to investors' ears. Yeah, good afternoon, Kelly, and thanks for having me. First of all, I think you're absolutely right. I don't think they're missing the mark in the same way. You can say both companies, Apple and meta are challenged, but the challenges are very different? One, it's like, are they going to become the Kodak or the Blackberry of AI era? And the other is kind of like,

are the scaling laws and the challenges of acquiring the right talent going to be some sort of ceiling on their continued development? Meta is making massive investments, just the scale AI investment alone that we are hearing that it's going to make, that likely will be a deal that's going to happen, is going to continue to push it forward in terms of training their behemoth models and continue to evolve. But yeah, they've basically built the rails for open source AI development and so much of what is happening in AI is being built on meta. Yeah, I just can't imagine that's a negative for them in the long run, whatever they are scrambling to catch up with now with scale and all the rest of it. Apple's probably a harder one. I mean, it's more obvious that there's not, you know,

a clear competitive play there. Although, in a very simplistic way, I'll just say, the more I use chat GPT on my phone, the more, the husband's trying to not use the iPhone, and he can't because he's using chat GPT all the time as a small anecdote. Yeah, I mean, I think the ability for them to use their sort of app ecosystem

to deliver us AI is great. They have 2.3, 2.4 billion install user base. And I think one thing that a lot of people need to understand is that does buy Apple some time. The problem is it's been a year now. We heard about the super cycle. We heard about Apple, you know, and the new device is going to drive this future of AI and Apple intelligence. And most of the AI we're experiencing on Apple right now is other people's AI, which means it can move to other devices.

It can move to an Android. We saw what Open AI is doing with Joni Ive and I.O. They're thinking of the future new devices. And we say that meta missed the metaverse. But, you know, you could say Apple missed it too with its, you know, Vision Pro. It hasn't hit. I actually think meta and their Rayban glasses are closer to that kind of future form. So will we wear it?

Will we wear it on our eyes on her chest? Will it be a hand-centered device? And overall Apple right now, they did a bit of a, you know. And Daniel, I'll add to that. It might be even worse because Apple's main design guy, Johnny Ive, who's created with doing making the iPhone, making the iPod, making all these great things. He's now working effectively for the competition. I mean, with Open AI and that deal that they made for,

for, I think, over $6 billion for Ives' company. So not only does Apple not have that, they actively have potential competition from their own long-term guy. Yeah, it felt a little bit like, one, everything that Apple rolled out was a bit of a parlor trick. It was like, look over here. We've got a new design platform.

Yay, translucent icons or whatever. Meanwhile, Open Eye spending $6 billion because they believe the hardware AI integration is going to be completely revolutionized in the near future. And like I said, meta, and if you listen to what is being said about the inside of meta, is basically Zuck is back in founder mode. He is basically bringing the smartest, highest talent, potential people in his little inner sanctum to create the future. He understands what's at stake. It can be the big multi-billion dollar data centers they're building out, the power expansion, you know, what they're doing with Lama.

He's investing big. Like I said, two very different problems. And Apple doesn't have that founder. They don't have Steve Jobs, of course, and they don't even have that design. leader right now, it just feels like they're a little bit lost. Can you imagine, can I posit something? Can I posit something?

I don't want to be clear. I'm not, I'm not, I'm just, look, we're having fun here. I'm not saying this, but yesterday, Dan Ives on halftime report said Apple may have to do a deal because Apple normally doesn't buy companies. That's not their DNA. Couldn't Apple buy a meta? I mean, I know that sounds insane.

And Zuckerberg controls the voting stock, so it would never have to sell. But if they start to fall behind, there's, I could see something massive like that happening. Well, Brian, we are having fun. I don't think a regular. We're just having fun here. Yeah. I don't think a regulatory body would ever let them through. But I will say, I've been on the record. I've suggested perplexity, a tool that's being used in growing very, very quickly, a deal like the one that was just made with meta and scale to help Apple. I mean, Apple's putting out papers right now saying that LLMs and reasoning, don't really work. And what they said wasn't entirely wrong about the challenges, but having that

come out and then having a WWDC like they had and not really addressing the fact that intelligence has been a total flop, it more sounds like, oops, look over here because we don't know exactly what we're doing while all these other MAG7 companies are building humanoid robots, are building massive data centers in the future, are building the actual networking and GPUs. Apple is like, oh, we have a lot of users and they love our stuff, but they have to figure out how to turn that back into growth, back into revenue. And it's pretty scary right now seeing all the analysts come out. And basically nobody, even you mentioned Dan. Ives, even Dan wasn't impressed and he's got to be the most bullish person on the street when it comes to Apple.

He likes it. Hey, Mikey. Yeah, it was kind of like that moment, you know? Yeah, no, it's true. Daniel, appreciate it today. Thanks for your time. Daniel Newman with Future. All right, before the break, check out shares of Mike.

Microsoft, speaking of AI, Microsoft is actually down a little bit right now, down about 1%. Why are we showing this to you? And it's not a very big move. It's because Microsoft is in the middle of its longest winning streak in about a year and a half. So today would break that winning streak. So again, not a big move by Microsoft, but if it declines, Kelly, then rip the streak. I love a good streak. Let's make it nine folks. Come on. Got a few hours left. It looks like the streak may have been struck. We'll find out. on deck, has the big Max, big run, finally gotten fried? Sorry, we're going to look at a story that's hot off the grill next. All right, welcome back. You can see the markets are very, very slightly higher again right now.

If you're on the radio, you can't see anything, but the S&P 500 is up 0.2%. Again, not big gains, Dom Chu, but that with these gains, every inch higher, the NASDAQ 100 and the S&P close back in on their record high. Stones throw away. Stones throw, and it all depends on the size of the stone and who is throwing it. The NASDAQ got one and a half percent from its record high. And here's what's amazing. 25 percent.

That is the gain of the S&P 500 and NASDAQ 100 since the April 7th trade and tariff pet. 25 percent in 60 days. That's even more amazing than Cornell winning the lacrosse national championship. You know, I'll tell you what, the V-shaped recovery has been the name of the game ever since the wake of the great financial crisis back in 2008, 2009. But this has been a rapid, rapid assent for the markets overall. Like record rapid recovery. It's absolutely crazy right now.

But apparently all of that movement to the upside is not amazing for McDonald's shares. That stock is still higher this year, but it just got another downgrade. And that's the third time in just two days. So is it time to dump on the old McDonald's, Mickey D. Narches trade. We are going to now talk about what's happening with McDonald's and Redburn Securities, Redburn Atlantic, downgrading, double downgrading the shares to a sell from a buy. They also slashed their target price. Now, it marked the third downgrade from McDonald's in less than a week. Our next guest says he would not short the stock, but thinks these cuts could

provide traders a good entry point to actually buy some shares amid the weakness. Navigation style. Joining us now is Tony Zang, chief strategist over at Options Play. So Tony, Tony, the McDonald's trade, it's a Dow component. One of the reasons why we're seeing a little bit more of that relative weakness in the Dow. What exactly is your McDonald's thesis and why do you think this is a dip worth buying? Yeah, more specifically, I think this is an opportunity that generates a little bit more interest in this particular stock. You know, implied volatility on options are higher. And I think this is an opportunity to actually pick up some of the stock by selling some put options on McDonald's because, you know, the downgrades that you're referring to over the last few days,

I don't particularly think that they represent a meaningful change in the outlook of this particular company. I think you have to remember McDonald's, you know, trades at around 25 times forward earnings, but if you look at net margins here, you know, they're north of 30%. So I think from a valuation perspective, McDonald's is at very fair value, if anything, even slightly undervalued, especially if you compare it to the overall restaurant group. So I think given kind of the business, I don't particularly think that, you know, McDonald's, McDonald's entire business is going to be shifting, you know, much very soon.

And I think for those reasons, the valuation that's currently trading at is, is very reasonable. And then also you see that, you know, despite the downgrades, McDonald's still continues to hold that $200-day moving average. It's holding that $300 psychological level. It's holding the 200-day moving average. And I think for those reasons, you know, the sell-off that we've seen here, the small sell-off we've seen here over the last few days, you know, represents an opportunity for option sellers to take advantage of the elevated implied volatility, sell some options with the

opportunity to potentially pick up some shares in the high 290 range or so. All right. Tony Zhang with the play on McDonald's shares. Thank you very much. We'll see you again soon, Tony. This is interesting. To take advantage of the volatility to sell options means you actually take in more premium than you have in the past on a relative basis, but you've got to be comfortable owning the stock at a certain point lower if you get put or assign those two. I know there's people that say, why you focus so much of McDonald's? Folks, it's not about McDonald's. It's about there a Dow component that the biggest restaurant chain, one of, in the United States, and kind of a, I don't know, a tea leaf. And they're a battleground. And they're a

battleground. Are they a battleground? I think they are. You're making the call right now. They're a battle. Love is a battlefield, and this is a battleground. Easy Pat Benettar. GLP 1 versus fast food versus all of the macroeconomic cycles. I know which. One's winning over here. I know for me as well. I do love the Pat Benatar reference, though. That was strong. I'm old.

You know, Lita Ford, though. Kelly, back to you. Thank you both. Still ahead. Temperatures are heating up, but your energy bills could get even hotter, too. We'll explain why. Right after this. Welcome back.

110,000 is what we hit on Bitcoin earlier on. We're off that now back below 109. Bitcoin has now been trading above 100,000 for, geez, what is it? Probably a month straight now. It could be a sign. that the cryptocurrency has created a new, Brian we call sort of floor level here. It's a stalwart performance has been astounding. Yeah, but it wasn't 111,000 a month ago.

Yep. So, you know, not knocking bitcoins. Can you imagine if you bought a bunch of Bitcoin like 10 years ago for $8? Because you just thought it was cute. Even if you bought back during the first hype cycle, right, whenever that was Thanksgiving of, I forget what year now, you'd be, it was like, it got to $20,000 and people were like, This is unbelievable. Yeah, now it's at 5X that. It's extraordinary. I bought a Bitcoin 130 and sold it at like 180 just to see how it worked.

$130. Yes. And I just, because I want to know how the wallet worked and how everything worked. Can you imagine if you had hung on to that? I'm an idiot. I'm sure you're not the old. I'm driving a 2010 Jeep ranger. Everyone else is rolling around in limousines. All right. There are two big energy stories to be aware of. First up, get ready for maybe a little bit of an electric shock this summer or at least a jolt because your summer power price is set to rise again. the EIA estimating, the average American household bill will go up about to about $186 per month this summer. That is up from 148 just four years ago. So about a 25% jump in power costs, Kelly, in just four years. Part of this is because America, and this is something a lot of people

don't know, how often dangerously short of electricity production we are. In fact, recently the Department of Energy, I think it was just last week, ordered an old power. It's near Philadelphia. It's called Eddie Stone. I think it might be the oldest power plant still operating in America to stay on because old Eddie Stone, literally old Eddie Stone, could be the difference between having enough power in the Mid-Atlantic region in the summer or literally running out and having black or brownout. To your point, did you see the Goldman note about it was earlier this week or end of last week. It was an entire deep dive where their analysts said we are there's key markets, including the Mid-Atlantic at risk. of being short on power this summer, which was much more rapid than what the earlier projections showed. Yeah, the grid operator called PJM warned about this like last year in a Friday night news dump. We may not have enough electricity, and yet we still think we might.

All right, the next energy news, you need to know. Some sad news in solar. Sinova Energy filing for bankruptcy. It's a residential solar installer. It's being crushed under the weight of rising debt and slowing demand. Stock is worth just pennies now. We're not showing you the stock for any reason, but at its peak in January of 2021. So just four and a half years ago, Sinova was worth $6.5 billion.

Company will lay off over half its employees. There are a few reasons for the bankruptcy. You got higher rates hurting the industry, Kelly, because many families borrow the money to install solar panels. You've also got states, you know, California, warm and sunny almost all the time, changing the amount of money that households can get back from increased solar production. And remember that last year, another residential solar company called Sunpower also collapsed after it was the subject of an SEC investigation. The White House also canceling a partial loan guarantee to Sinova last month. But by that point, the stock was already trading for just pennies on the dollar. Got to be really careful. Solar continues to be an

industry that even as it's gotten cheaper and cheaper loses investors probably more money than it ever makes them. Bridge brings us to three stock lunch today where we hit three different movers and why they matter to you and what you should do with them. Here with our trades is CIO of Kreekmer wealth advisors, John Kreekmer. John, it's good to see you. Let's jump into Disney, which took full control of Hulu and Comcast after agreeing to pay $440,000, I should say, for the remaining stake. CEO Bob Iger weighed in on Squawk on the Street this morning on where Disney stands with its cable networks.

What we've determined is the combination of both is actually a, winning combination for us. It's one of the things that's enabled us to turn the streaming business around from a huge loss to profitability. And over the next several years, it will enable us to grow margins significantly on the streaming side because, again, the ability to amortize program costs and the ability to essentially aggregate audiences and revenue. Of course, that comes in light of what Warner Brothers and Discovery are doing, separating. So, John, what do you do with shares of Disney? Would you buy them here? I'll tell you. We love Disney right here. We see an upside target at 133. You know, that Hulu taking them full on as far as full ownership is a strong move, very accretive to earnings. That is their most profitable of their three primary subscription services, Disney Plus and ESPN. We love Disney right now. We see an upside target all the way to 133. All right. You love it. So up next is Taiwan semi. It's been on a tear of the past months continuing today. They announced a 40% year-on-year revenue increase for the month of May. A lot of people say this is the no-brainer way to play the AI.

cycle. You agree? To do it. Taiwan Semi has been a long-term holding of ours for many years. This is a phenomenal company. We want to hold right now on as far as on TSM, TSM. So they're causing it the price got a little bit ahead, especially with the huge announcement today. We're looking for a little of a pullback. So we're to hold right now, a pullback to that 190 to 195 range and they'll look at acquiring pretty aggressively at that point. And then we do see strong momentum all the way to $240 a share. Wow. Okay. J.M. Smucker, meanwhile, is getting crushed.

revenue expectations for the quarter, gave full year EPS guidance well below what the street was looking for. Those shares are down almost 15%. Is that an opportunity for you or another reason to stay away? Yeah, definitely a reason to stay away right now. So we have kind of been sour on smucker ever since the middle of last year. And we knew with inflation going out, the cost of their inputs and also the cost of labor increasing so drastically. Their pricing is very inelastic, which is squeezing margins. We saw that as far as in the results today. We stay away from smuckers right now. if you own some, we would look to actually liquidate the position to sell from it. That is, you know, make your positions clear, John, in a very short period of time.

We appreciate it. John Krikmer with Krikmer Wealth Advisors. And remember, we camp every three-stock lunch. Anytime you want, just scan that QR code or head to CNBC.com. All right, let's step outside of business right now and get a CBC News update with Bertha Coombs. Hey, Brian. Hospital officials in Austria raised the death toll in today's school shooting in the city of Gratz. They say an adult woman who was taken to the hospital with serious injuries has now died. Local media are reporting that the victims include seven students and two adults.

Authorities say the suspected 21-year-old male shooter took his own life. The State Department called on Russia this afternoon to stop attacking Ukrainian cities. The demand came after local authorities said a massive overnight drone attack hit a maternity war, in the Odessa region. A State Department spokesperson condemned the strikes and said the U.S. is monitoring the situation closely. And President Trump is traveling to North Carolina right now, where he will help to celebrate the 250th anniversary of the Army at Fort Bragg. The installation is the home of the Army's Special Operations Command, including the highly trained Green Beret and Rangers units. The president's speech comes just before a massive military parade on Saturday in the nation's capital,

which is said to include tanks, military vehicles, and thousands of soldiers. It also happens to be the president's birthday that day, Brian. Back to you. Just the one 365 day chance that they fall in the same day. Amazing. Bertha Coombs, thank you very much. All right, coming up, CNBC unveiling its annual list of Disruptor 50 companies. and let's just say this year's crop of companies are flush with one big thing. What that is ahead. Crypto watch is sponsored by crypto.com. Crypto.com is America's premier crypto platform.

That's a cool graphic. CNBC unveiling the 13th annual Disruptor 50 list, just breaking the light bulb. The companies this year valued at nearly $1 trillion. But what industry is? industries really are the standouts and what are these companies all have in common? Julia Borsden here on set in New Jersey, where you went to college, by the way, at Princeton. Good to see you again. It's great to be here on set.

Now, the value of the 50 companies on this year's disruptor list is higher than ever. A total of $798 billion. That's up from $436 billion last year. The amount they have raised has grown to $127 billion, up from $70 billion last year. Now, the top five companies, Andrel, Open AI, Databricks, Anthropic, and Canva have a combined valuation of just under half a trillion dollars. That's more than almost every past Disruptor 50 list due largely to OpenAI's $300 billion valuation. And this year, AI continues to dominate. And Enterprise AI is the largest category on the list with 17 companies, which is three more than last year.

Other key sectors include defense with four defense tech companies, including Andrel, which is in the number one spot. There are seven FinTech companies down from nine last year. Five disruptors are tackling health care. Four are in the food and agriculture space. And there are three each in transportation as well as biotech. Now, generative AI is having a massive impact on technology in general with 20 newcomers to the list this year. Another 19 newcomers the prior two years. Only 11 companies on this year's list were disruptors before chat GPT launch.

And many of those, like Andrel, Databricks, and Canva are thriving because of their embrace of AI. You can find more on all 50 Disruptor 50 companies on CNBC.com slash disruptors. And make sure to tune in to our interview with Andrews CEO and founder Palmer Lecky. That's coming up on closing bell over time. Kelly and Brian? Well, I mean, you know you changed my life with the Disruptor 50 last year. She told me about grocery delivery with Thrive markets and the other things going on. Yeah.

It might not be defense and kind of world shaping things, but it made a big difference. Yeah, and Thrive is back on the Disruptor 50 list. Again, this year, they're using technology to speed the way you get your groceries delivered to your home. Also, making more environmentally friendly as well. Well, maybe Palmer Lucky can combine his drone business with Thrive. There we go. And then they would get your groceries delivered really fast. Yeah, incredibly fast.

In LA is so, it's always moving so quickly. L.A. does have a traffic problem. But you're touching on another key point here, which is robotics. There are a number of robotics companies on the list. Exotech is one. We're seeing robotics being used in warehouses for logistics. And sometimes it's humanoid robots, but also we're seeing just more robotic arms and things to get products into delivery vehicles, whether it's a drone or something else. We also have Zipline, which is a drone company back on the list again this year.

and they've really innovated in the drone delivery space. That's fun. I think next year might be the year of like humanoid D50. We'll see maybe the year after. You've got a lot of robots. Maybe next year there'll be more humanoid robots. Julia, thank you. I want to note, we'll also be speaking to one of this year's disruptors tomorrow right here on Power Lunch.

The CEO of Databricks, Allie Goatzee. Still ahead, stable coin issuer circle. Wow, it can actually go down. What? Shocking. 8% lower today, but it has tripled since it's blockbuster trading debut last week. Interactive broker says it's one of the most traded names on its entire platform. Your next guest says the hype is legit. We'll be right back. Welcome back.

A couple of big IPOs are expected this week. Haven't said that in a long time. We've got Voyager. They're an aerospace and defense company. That'll be on the nice see tomorrow. And Chime Financial is on the NASDAQ on Thursday. It all comes after circles blockbuster IPO last week. The stable coin issuer is up over 230% since going public on Thursday. CoreWeave also, it's lower today, but it's up 200% since its debut. Will Voyager and Chime be next? Dan Premack is business editor at Axios. And you love to throw cold water, Dan, on all of our excitement. So the bucket is yours. Yeah, look, people should be excited right now, right? We've gotten a, not only have we gotten a recent spate of IPOs, almost all of them have traded up, you know, not just the ones you talk about. We've had a

couple digital health ones, like a modern hinge. Those are both up. Eitoro is up all to differing amounts, nothing quite like circle. But what this is proven is kind of what I've been saying for a couple years, which is if you go public, the markets kind of do want these new issues. They are ready for these. The only cold water I'll give you, Kelly, is that there's not a huge pipeline of things already filed to come later. But that might partially be calendar, just people don't generally like pricing into the summer. I'll be very curious if this ends up just being crypto IPOs that explode. or like, for instance, Voyager.

I mean, I guess that if you're in space, maybe you're kind of in that Elon Musk world of excitement. I don't know. But that's what I'm curious about is, is it kind of crypto-specific or not? Yeah, I mean, really, the vast majority of what we've seen has either been FinTech. I mean, that's been most of it. Chime is a neo-bank, obviously, circle. E-Torra was an exchange.

So it's mostly been fintech so far, a little bit of digital health. But you're right. We haven't seen a lot of, say, things like enterprise software. We haven't seen a lot of pharma, although Karras Life Sciences is supposed to come next week. We haven't seen a lot of those other sectors. Remember, there are hundreds of unicorns sitting waiting to come out, let alone lots of other private companies, including private equity-backed ones. There is an insurance broker supposed to go this week, but beyond that, it's been kind of light. I had dinner with a chairman of a big M&A law firm a couple weeks ago, and he said he was very busy.

Another lawyer friend of mine says they are very busy. But I guess the question, Dan, is, is this just like a weird window of? of time because you've got some, you know, peace in the stock market. We've stored 25% in two months. Or do you think this is kind of a broader theme the rest of the year will also be sort of ramping up the IPO window? Well, part of is we do have a little bit of a kind of a concentrated push because after Liberation Day, you had a handful of companies that were planning to go public in early to mid-April, and they all put everything on pause. They freaked out. They all stopped. And then, you know, three, four weeks later, they restarted their process. So you had those,

plus some that were already planning to go in May or June. So you had a little bit more concentration than you otherwise would have. I do think the second half is the big question, right? We don't have a lot of stuff on file for the second half of the year for the summer. And again, as I said, Kelly, that's not that unusual. Bankers' companies often like take vacation and don't like to price into July or August. The real question is going to be, come the middle of August, do we start to see a lot of companies file then so they can come out after Labor Day, which traditionally, that Labor Day, to think,

is usually the busiest period for IPOs in a normal year. Anything you'd add for people who are thinking specifically about Circle or Voyager? Not particularly. I mean, look, Circle is an interesting bet, right? And it feels a little bit like an old-fashioned IPO, right? Like it's actually popped a lot after it. People who got in at the IPO price actually are getting value on it. Look, it's the largest U.S. stable coin issuer. And it's come out at a, I know people say you don't time IPOs, but man, it came out right as

stable coin legislation seems, I know there's a little hiccup here or there, but seems like it's probably going to pass and get signed into law. You know, if you were going to, you can't time it better if you were circled. What about chime? Chime. Chime is a little different, right? Chime is going to come out, but it's looking at least like it's going to come out way below where its last private market valuation was. And on the one hand, you'd look at that and say, well, that's a sign of weakness. To me, though, what that's suggesting, and we've seen a couple other companies like this, is that some companies are willing to say, you know what, the valuations we got in 2021, 2002, those were zero interest rate valuations, venture capitalists were a little bit drunk

with their own capital. We didn't actually deserve it. We can grow into it in the public market. We don't have to wait to grow it into the private market. Even Circle originally, before it upped its IPO range and then obviously the pop, even Circle was planning to go public below its last private valuation. Yeah, that's a good point. And we'll see how much of an indicator that is as well, or if people are just in the mood to buy the IPOs broadly. Dan appreciate it, as always. Thanks. Dan Premak of Axios.

Folks, did you miss an episode of Power Lunch? Well, we forgive you. And you can always catch the audio-only versions of every episode anytime. Power Lunch Podcast, available on all the podcasting platforms. Download yours today, Kelly. I'll go do it right now. You haven't already? Follow you.

Welcome back. Let's get a couple check on some movers before we say goodbye. Shares of Tesla are up 5% today as it gets a reprieve from its recent selling pressure. The stock remains down about 6% in a week and 20% this year. But of course, Brian, we've seen even a spate of kind of, I don't know if they've gone so far as to downgrade it. I think there were a couple downgrades this week where they said, look, the rift between Musk and the president is a problem for the stock. But that said, Musk's tone on social media has been much more constructive lately. and I think people are looking beyond this, the Robotaxy launch in Austin,

and all the rest of it, again, the shares are up 5% today. Humanoid robots. All right, we're also watching some of the transport companies. Remember our Port of Long Beach show, folks, just over a month ago, we talked. Well, I've said, if you think the trade talks are going to work, names like a Mattson, a CSX, a J.B. Hunt, right? Trains, ships, trucks.

Well, we just said, if you believe it's going to end, maybe these are companies to look at all these stocks are up about 10 to 15% in a month. We didn't call it, but if somebody did call it, they made a lot of money on the trade talks. You led the horse to water. I just throwing some names out. They had to drink. Well, it was contrary to the time to say, oh, sure, let's load up on a bunch of these names. It's all going to blow over.

But that's at least we're in the eye of the storm right now, don't you think? Let's see how these trade talks end up, like we talked about at the top. Last I saw they were bringing fast food to the Chinese delegation. Thanks for watching Power Lunch, everybody. Closing bell starts right now.