The Rundown - Trump Welcomes Crypto Leaders to the White House, Broadcom Rallies on Strong Earnings

Episode Date: March 7, 2025

Stock market update for March 7, 2025. 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.Crypto trading by Bakkt Crypto Solutions, LLC (NMLS ID 1890144), a NYSDFS-licensed virtual currency business. Not FDIC or SIPC insured. See Risk Disclosures at Public.com/crypto

Public.com presents the rundown. Your daily market update in five minutes. My name is Zadmani, and today is Friday, March 7th. In today's episode, I'll explain why the markets are throwing a tariff tantrum. We also dive into the latest jobs report and why it was a sigh of relief for some. Then we tell you about the first ever crypto summit at the White House and what it could mean for Bitcoin. Then stick around to the end of the show to find out about the latest things. exchange that's planning to move to 24-hour trading. It's coming, everybody. All right,

let's go. Another day, another change in tariff policy from President Donald Trump, but this time the markets didn't seem to care. Yesterday, Trump announced that he is pausing some tariffs against Canada and Mexico until April 2nd. Specifically, the tariffs are exempt for Canadian and Mexican imports covered by the USMCA trade agreement that was signed during. during Trump's first term. That includes about 50% of Mexican imports and 38% of Canadian imports according to the White House. So it looks like we have a partial tariff pause again, but here's a thing. The exemption is only until April 2nd. These tariffs could go back in place in less than a month. And then who knows what happens after that. There hasn't been any indication of what

the long-term plan is for tariffs. And I think that's why the stock market didn't rally yesterday like it usually does when Trump backs off of tariffs. In fact, the stock market had one of its worst days of the year. The S&P 500 lost 1.8% and the NASDAQ was down more than 2.6%. The NASDAQ is now down nearly 10% from its all-time highs that it's set back in mid-February. I think investors are throwing a tariff tantrum right now because we're all just exhausted from the will-he-won-he-he-when-it-cum-to-tall-tossi. Because remember, the markets don't like uncertainty.

The markets were hit with an additional piece of information this morning, the February jobs report, and the numbers were okay, I guess. According to this report, the economy added 151,000 jobs in February, which was just below the 159,000 jobs that was expected. Now, the unemployment rate did rise from 4% to 4.1%. So this jobs report did misestimates, but I think after the chaos from this week, investors are probably just relieved this report wasn't a disaster. So maybe this sparks a rally moving forward. I mean, there's a lot for the markets to process right now.

Next week, we're getting the February CPI report. So that'll tell us how inflation has been doing, which should be interesting. And then before you know it, it'll be April. And it'll be talking about the reciprocal tariffs, which are set to go into effect on April 2nd. And then earnings season's going to start up again. And the roller coaster will continue. So it's a great time to subscribe to the podcast if you haven't already because we're

going to stay on top of this stuff and keep you guys in the loop. Let's run through some headlines. And we're going to start with Walgreens. Walgreens is going to become a private company after nearly a century of being on the stock market. The private equity firm's Sycamore Partners is taking Walgreens private, paying $11.45 a share, making this deal worth about $10 billion. The deal is expected to close in the fourth quarter of this year. Wallgreens has been struggling for a while now. their stock prices lost nearly 70% of its value over the last three years.

And the company believes it'll take a few years to complete the turnaround, which they think would be better managed as a private company. And that makes sense because being a private company has its perks. You know, management won't have to worry about the short-term performance of the stock price or expectations from shareholders or getting angry letters from activist investors. They can just focus on the business and getting it back on the right track. So we'll see if they can pull this off. The PE firm that is buying Walgreens, Sickenmore Partners,

You know, they're already starting to do the private equity thing by suggesting plans to break up Walgreens and sell its parts. Like their health care segment called Village MD. They also want to split up the Boots UK division. Walgreens has also announced plans to close thousands of underperforming stores. So the private equity guys are getting their hands all over this thing. And no, don't be surprised in a few years that Walgreens is back on the stock market after the turnaround is complete. All right, let's shift gears and talk about crypto because the first ever crypto summit is being hosted at the White House. House today. Executives from the crypto industry, including Coinbase's CEO, Brian Armstrong,

and Strategy CEO Michael Saylor, will meet with President Trump and the so-called crypto czar David Sachs. And it's going to be a symbolic event because the Trump administration has pledged to make America the crypto capital of the world. So this summit will serve as a forum for these industry leaders to start pushing for favorable legislation. In fact, the Trump administration has already made some crypto-related legislative moves. Last night, President Trump officially signed an executive order that created the strategic Bitcoin Reserve, and an additional U.S. digital asset stockpile that's going to have all the altcoins in it.

Now, this Bitcoin Reserve will be made up of Bitcoin that the federal government already owns. This is the Bitcoin that the government has seized from criminal and civil forfeit proceedings. And any additional Bitcoin purchase would require a budget-neutral strategy that comes at no extra cost for the taxpayer. Not really sure what that means,

but the markets didn't really like it. In fact, Bitcoin's price slumped on this news because I think Bitcoin bulls were hoping the Strategic Reserve would just start buying hundreds of millions of dollars in Bitcoin. That's not what's happening. They're just going to hold what they currently have. Now, the order does say that Bitcoin cannot be sold out of the Strategic Reserve. The U.S. government is going to be a true hoddler of Bitcoin. Now, as far as the altcoin stockpile, which was kind of controversial, even amongst the crypto community, the government says they're not going to buy any additional alt coins outside of what's been acquired from criminal or civil forfeitures.

But the government does have the discretion to make sales of those assets. Not sure who makes the call on that. By the way, just as a heads up, public offers trading in more than 30 cryptocurrencies, including Doge and Solana. In fact, this week, they added seven additional cryptos like Avey, Uniswap, and Stellar. Public is always on top of their game when it comes to making sure investors have what they need. So if you are interested in crypto, go check out the public app if you haven't yet. Let's talk about some stocks making moves today. Broadcom stock is having a nice morning, shares are soaring after the chip company provided an upbeat revenue guidance thanks to the demand for their custom AI chips. Their current quarter revenue is expected to come in

at $4.4 billion. Broadcom management says they have four more customers who are looking to hyperscale AI via custom chips. And Open AI is currently working with Broadcom in an effort to lower its reliance on Nvidia products. So as more companies try to move away from Nvidia chips, Broadcom seems to be the one winning that business. And as a result, shares of Broadcom, are up more than 7% this morning on this news. Now, on the flip side, shares of Costco are falling after the retail wholesale club slash potential cult, question mark. They missed on earnings and showed an uncertain future about the impact that tariffs will

have on their business. Costco said they're trying to keep price hikes to a minimum, but a third of their U.S. sales is derived from imported goods. Now, Costco did beat revenue estimates for the quarter, along with same store sales expectations, which were up 6.8% in the period. but investors seem to be worried about the future and the impact of tariffs, and that's why Costco's stock is down around 5% this morning. Let's wrap the show with the fun fact. The NASDAQ stock exchange is planning to offer 24 hours stock trading five days a week.

They're waiting for approval by regulators, and if they are approved, it will begin in the second half of 2026. This move follows the New York Stock Exchange's plan to offer trading for 22 hours a day. So in the very near future, we'll be able to buy. and sell stocks in the middle of the night. Now, on one hand, I do think it's silly that this hasn't happened yet. But on the other hand, I didn't really mind that the stock market closed. I'm not sure if I can handle 24-hour trading. This is going to test a lot of relationships.

Well, all right, guys, that's the rundown for today. That's the rundown for this week. I mean, what a week it was. I am mentally exhausted. I'm going to definitely catch my breath this weekend. If you guys want to support the show and have like 12 extra seconds, consider giving us a five-star rating on Apple or Spotify. If you're listening on Spotify, vote in our Spotify 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 for the weekend deep dive. This is the rundown. Your real-time resource for news events and trends in the markets. All views presented in the show reflect the opinions of the guests. You should not take any mention of a publicly traded security as recommendation to buy, sell, or hold that security.

Run-down guests are not financial advisors and are not affiliated with public holdings, board subsidiaries. You should make your own financial and investment decisions or consult. Respected professionals. Learn more at public.com disclosures. In partnership with Zayidimani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.