The Rundown - GameStop Earnings Disappoint, U.S & China Reach 'Framework' for Trade Deal

Episode Date: June 11, 2025

Stock market update for June 11, 2025. Follow ⁠⁠@TheRundownDaily⁠⁠ on Instagram.This video is for informational purposes only and reflects the views of the host and guest, not Public Holdings or its subsidiaries. Mentions of assets are not recommendations. Investing involves risk, including loss. Past performance does not guarantee future results. For full disclosures, visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Public.com/disclosures⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠.

Public.com presents the rundown, your daily market update in under 10 minutes. My name is Zaid Admani, and today is Wednesday, June 11th. In today's episode, we'll tell you about the latest trade development between the U.S. in China that has President Trump pretty excited. We'll also discuss the latest comments from NVIDIA CEO Jensen Huang about quantum computing. Then stick around to the end of the show to find out about Starbucks's latest moves to boost sales. We got a great show for you today.

Let's go. Stocks kept climbing on Tuesday with both the S&P 500 and NASDAG jumping 0.6%. Investors have been optimistic that a trade deal between the U.S. and China gets worked out during their meetings in London. And now we're getting official word that both sides have agreed on a framework agreement. Now, this framework still needs to get approval from President Trump and President Chi, but the early signs are promising. I mean, Trump seems to be pretty happy about this deal. He posted on True Social this morning that the deal would involve China relaxing their export

restrictions on rare earth metals and the U.S. would ease up on their export restrictions as well. He followed that up by saying that relationships with China is excellent and that the U.S. is getting a 55% tariff while China is getting 10%. So based on that post from Trump, it looks like the tariff rates between the two countries aren't changing. But both, sides are cutting back on trade restrictions. Hopefully we'll get more details soon. You know, one of the concerns that economists had about Trump's tariffs was that it would lead to higher inflation. Well, according to the latest inflation report, that doesn't seem to be the case. According to the May CPI report, which came out this morning, inflation in May was up

2.4% year over year and up just 0.1% month over month. Both those numbers are lower than expected, and it's a sign that Trump's tariffs from earlier this year haven't had a significant impact on inflation yet. So yeah, investors have a lot to react to this morning between the China Trade Framework News and the inflation report. We'll have to see if these two major headlines are enough to push the stock market to record highs, which were now less than 2% away. Honestly, it's pretty incredible to think that even with a 55% tariff on China, the markets are near all-time highs. Let's run through some headlines. starting with quantum computing.

Nvidia's CEO Jensen Wong seems to have changed his tone on quantum computing. During Nvidia's developer conference in Paris yesterday, Jensen said that quantum computing is reaching an inflection point and that we're within reach of these machines solving real-world problem. Now that's a big shift from what he said back in January when he said that quantum was still decades away. And those comments sent quantum stocks tanking. Following those comments in January,

quantum companies like Rigetti computing, Ionic, and D-Wave all dropped more than 40%. And many people thought at the time that the quantum bubble had popped. But despite Jensen's rug pull in January, these stocks have made a comeback recently. D-Wave shares have jumped nearly 60% in the past month, helped by the momentum around its new quantum computer advantage 2. Apparently, this new computer is 40% more energy efficient and twice as coherent, allowing the computer to come up with solutions much faster. Meanwhile, Ionic made a big move this week acquiring Oxford Ionics for $1.1 billion to boost

their research firepower. Now adding these positive comments from Jensen Huang in Paris, seems like the quantum hype is back in full swing. So shout out to anyone that was brave enough to buy the quantum dip after the drop in January. Let's shift gears and talk about some drama in the weight loss industry. Eli Lilly is trying to put an end to copycat weight loss drugs by giving telehealth companies an ultimatum. The pharma giant told these telehealth platforms like Roe and Life MD that it will only continue

working with them if they agree to stop selling generic versions of weight loss drugs, including its own Zepbound and Novo Nordis's WeGovie. See, these telehealth companies like Hymns and Rows, were legally allowed to sell these copycat versions of these weight loss drugs because at one point the name brand versions were in short supply. But now there's no longer a shortage anymore, so legally these telehealth platforms need to stop selling the generic copycat. And Lilly is serious about this.

They went as far as to say that they would take legal actions against anyone still mass selling these generic compound weight loss drugs. And that's a pretty different strategy from the other weight loss giant Nova Nordis is doing. Novo is the maker of Ozempic and Wee Govy. They're actually working with Hymns. They reached an agreement back in April to offer WeGovie on their platform at a discounted price. So these two pharma giants are taking different strategies. Now, Hymns investors thought a similar deal would happen with Eli Lilly, but that doesn't seem to be the case.

So following this news on Tuesday afternoon, Hymn stock was down nearly 6% at one point. They did bounce back a little bit, closing the day down 3%. But Eli Lilly, on the other hand, jumped more than 4%. It is interesting to see the two different strategies by Eli and Novo Nordisk. I think Eli Lilly has had more success with their weight loss drug recently. In fact, their market cap is more than double that of Novo Nordus now. But yeah, I'm definitely keeping my eye on this space. Let's talk about some stocks making moves today.

Dave and Buster's shares are rising this morning after delivering a pretty mixed earnings report. Revenues and profits did miss analyst expectations, but investors seem to be more focused on the comparable store sales. That was still down 8.3%, but it was better than the 8.9% drop that Wall Street was forecasting. See, Dave and Busters is kind of going through its own Starbucks moment right now, meaning they're trying to turn around the company and focus more on getting back to the basics. For example, the company just reintroduced their popular eat and play combo, which management said on the earnings call has had positive early results.

They're also rolling out a new menu, bringing back some top selling items that will come out later this year. So yeah, investors seem to be pretty excited about the turnaround plan and shares are up more than 15% this morning in reaction to the earnings. Now, speaking of games, GameStop shares are down this morning. after reporting Q1 earnings. Hardware sales, which includes video game sales, fell by 32% in Q1. GameStop also says they plan to close a significant amount of stores this year. I mean, they already closed around 600 stores in the U.S. in 2024. So yeah, it looks like GameStop's business is still on the decline, which might explain why they're shifting to be more of a Bitcoin holding company. GameStop has purchased more than 4,700 Bitcoin so far this year.

Shares of GameStop are down more than 4% this morning in reaction to the earnings. Let's wrap the show with a fun fact. Starbucks is getting into the protein game. Yes, the company known for selling 800 calorie Frappuccino's now wants to be your post-gym pit stop. The coffee giant is starting off by testing a new drink. It's going to be a sugar-free vanilla latte topped with protein banana cold foam, which actually sounds pretty good. I'm not going to lie. And Starbucks is hoping that by offering protein, it'll help,

Turn around, they're struggling sales. I mean, protein is the hot thing right now in the fitness space with growing demand. I feel like I see a new protein bar or new protein drink brand pop up every week. So Starbucks is jumping into the mix. And this is part of a broader strategy by their new CEO Brian Nicol to revamp their menu to make it less confusing and also attract the fitness and wellness crowd. But I feel like they're just playing ketchup here to other coffee chains like Dutch Bros, which has been offering protein-infused drinks for a while now.

So yeah, we'll see if this new protein offering, help turn things around at Starbucks. Let's just hope that it goes better than their olive oil coffee they had a couple years ago. I still can't believe they launched that. What were they thinking on that one? Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did and you have like nine extra seconds, consider giving us a five-star rating on Apple, Spotify,

or wherever you listen to your podcast. If you are listening on Spotify, don't forget the vote in today's Spotify a poll. Leave us a comment on Spotify. All of that engagement really does. help us out and it helps other people find the show. 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.