The Rundown - Coinbase Rallies on S&P 500 Inclusion, China Calls Off Boeing Ban

Episode Date: May 13, 2025

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Public.com presents the rundown. Your daily market update in under 10 minutes. My name is Zadadmani, and today is Tuesday, May 13th. In today's episode, we'll recap the surprisingly solid CPI report and what it means for investors. We'll also discuss why Boeing is breathing a sigh of relief from the de-escalating trade war with China. And we'll tell you why McDonald's big hiring push this summer is raising some eyebrows. Then stick around to the end of the show to find out why movie is, tickets are about to get a bit cheaper this summer. We get a great show for you today. Let's go.

Markets were flying on Monday after the U.S. and China agreed to temporary lowered tariffs. Investors were hyped. The S&P 500 jumped 3.3%. The NASDAQ was up over 4.3%. In fact, the NASDAQ is officially back into bull market territory. It's up more than 20% from its April lows. And the S&P 500 is now within 1% of the $1% of $1% of $1.000. away from turning green for the year. So an incredible turnaround for the stock market. Shout out to everyone that ignored all the doom and gloom about tariffs and bought the dip over the last few weeks. Now to add to the good news, let's talk about inflation because the CPI report for April just dropped this morning and inflation came in at the lowest level

in four years. Headline inflation came in at 2.3% compared to last year. That's below the 2.4% that was expected and core inflation slowed to 2.8%. You know, some economists, were worried that tariffs would lead to higher prices, but we haven't seen that just yet in the CPI report. And now with the tariffs on China being rolled back, the inflation impact might end up being pretty minimal. We'll have to see, though. Some economists think that companies are waiting to pass on the cost of tariffs to consumers, but as of right now, that hasn't happened. As things stand today, tariffs are easing, inflation is cooling, the stock market is back to rallying, and the vibes are pretty good. What's that Warren Buffett saying again? Be fearful when

others are greedy and greedy when others are fearful? Yeah, he was cooking with that one. Let's run through some headlines. China just lifted their ban on Boeing deliveries. This ban had been in place for nearly a month now as part of China's response to the trade war with the U.S. Basically, Boeing got caught in the crosshairs of the trade war when China prohibited domestic airlines from taking deliveries of Boeing's aircrafts. But now with a trade truce on the table, Boeing can finally resume deliveries to Chinese airlines, and they've got about 50 planes lined up to deliver in 2025. So Boeing can breathe a side relief for now. Over the last couple of weeks, they were scrambling to find backup buyers for these 737 max jets. They were talking to airlines in India and

Saudi Arabia, but now they don't have to worry about that. And the bigger news here is that Boeing still has access to the Chinese market, because China is projected to account for a fifth of global air traffic demand over the next two decades. Now, it's not all smooth skies ahead for Boeing, no pun intended. Boing's relationship with China has been rocky ever since 2018. See, back then, China made up about a quarter of Boeing's deliveries, but because of trade tensions that started back then, and of course, Boeing's own safety and quality issues, China hasn't made any major orders over the past few years. So I'm sure Boeing would like to solidify the relationship with China, and this might be the first step. Now, Boeing's in the middle

of a turnaround right now, and I got to say their stock is doing pretty well. Their stock is up more than 15% this year, way outperforming the S&P 500. Let's shift gears and talk about McDonald's, because they are ready to make a big hiring spree this summer. The fast food giant announced plans to hire 375,000 workers across their 13,000 U.S. restaurants. That is the biggest hiring target they've had in years, even surpassing the 260,000 they aimed for

when reopening in the summer after COVID. McDonald's is one of the biggest private employers in the world, and they claim that one in eight Americans have worked at a McDonald's at one point in their lives. That's a wild stat to me. But I do find it kind of weird that McDonald's is expanding their workforce at a time when their revenues are dropping. Same store sales at U.S. locations fell 3.6% in Q1. That's the steepest drop since the pandemic, and it was their second straight quarter of decline.

This is also coming at a time when fast food chains are experimenting with AI drive-thrus and other technologies to potentially reduce their workforce. So this hiring announcement was pretty surprising, and it's possible that it might be more of a PR move. This announcement was made at a news conference on Monday that included the U.S. Labor Secretary, and some are taking this as a sign the company is trying to cozy up to the White House, especially since McDonald's donated a million dollars to Trump's second inauguration fund, something they haven't done in more than a decade. So I don't know, maybe McDonald's is trying to get some regulatory help here. Something to keep an eye on. Let's talk about some stocks making moves today.

Coinbase is flying high this morning after it was announced that they are joining the big leagues. The company is being added to the S&P 500 index replacing Discover Financial. Now, the S&P 500 is probably the most exclusive club in the world. It's the top 500 companies in the U.S. And you have to meet a certain criteria just to be considered. Like you have to show profits, not just in the most recent quarter, but also cumulative profits over the past four quarters. So Coinbase finally met that criteria and they got past the bouncer into the club. It probably helps that Bitcoin has been on a tear since Trump was elected back in November.

It did experience a dip last month, but it reclaimed the 100,000 mark earlier this week. As a result of getting added to the S&P 500, Coinbase stock is up around 15% this morning. Stocks usually pop when they get added to the S&P 500 because every ETF and index fund tracking the S&P now has to buy Coinbase stock. stock that's popping this morning is on. The running shoe company backed by Roger Federer saw a 43% jump in Q1 sales driven by demand for their new product launches and collabs with celebrities like Zendaya. As a result of stock is up nearly 3% this morning in reaction to these earnings. On the flip side, United Health Group is getting smoked this morning. The health insurance giant

just suspended their 2025 guidance and they also announced that their CEO is stepping down for personal reasons. That's usually PR talk for getting fired. The company says that rising medical costs are taking a toll on their profits, especially from Medicare services. In fact, back in April, United Health reported its first earnings miss

since 2008, and they also cut their annual guidance. That caused the stock to drop 23% in a single day, and it's down another 13% today. So yeah, it's been a tough few months for United Health. Now, the guy taking over to the company is Stephen Hemsley. He actually already served as CEO of the company from 2006 to 2017.

So he's coming in to try to save the day. Let's wrap the show with a fun fact. AMC is bringing back cheap movie tickets this summer. Starting on July 9th, AMC is slashing ticket prices by 50% every Wednesday in hopes of getting more people to show up to the big screen. And here's the thing, AMC's business is struggling right now. The company reported an 11% drop in revenue for Q1, which they say is their worst.

first quarter since 1996, outside of the pandemic, of course. So yeah, I think lowering ticket prices, you'll probably get more people to show up. But the overall trend hasn't been great for the movie industry over the last couple decades. Here's a bonus fun fact. Movie ticket sales have dropped by half since 2002. You know, I got a feeling that everyone having a large screen

TV at home along with streaming and scrolling on their phone probably has something to do with that. Also paying 19 bucks for popcorn at the theaters probably doesn't help either. I'm pretty excited about that. the 50% discount because the movie line of this summer is pretty stacked. There's Lilo and Stitch, Jurassic World, Superman, and the F1 movie, which I'm most excited about. So yeah, there's a good chance that you'll see me at a Houston area AMC theater on Wednesdays this summer.

Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did and you have like 10 extra seconds, consider giving us a five-star rating on Apple or Spotify. And if you're listening on Spotify, don't forget to vote in today's Spotify poll. leave us a comment on Spotify. All that engagement really does help us out, and it helps other people find the show. And if you guys are looking for some extra content to listen to,

check out our weekend deep dive episode we did about Palantir. We talked about how Palantir was founded and what they actually do today. We've gotten some great feedback on that episode so far, so if you haven't checked it out, I highly recommend you listen to it, and let us know what you think. And if you have any topics we should cover on future deep dive episodes, let us know in the comments as well. Thank you guys so much for listening.

Shout out to Mike and Connor. for all the help behind the scenes, and we'll see you guys back here tomorrow.