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Episode Description
Generated finance podcast with host Dusty based on prompt: Finance and economic news from yesterday and today
Episode Transcript
Welcome to "Profit Insights," where we break down the latest in finance and markets to help you make informed investment decisions. I'm Dusty, your host for today’s journey through the sometimes bewildering world of economics and market trends.
This Friday, May 30th, 2025, we see a market wrapping up the week on a rather quiet note, following a whirlwind of tariff-related news. Investors today are holding their breath, it seems, waiting for key inflation data to roll in and watching how our tariff saga unfolds. With U.S. stock futures pointing slightly lower, everyone’s eyeing the possible impacts on their investments.
Starting with our market overview, it’s been a mixed performance this week. The Dow Jones pushed up by about 50 points. On Thursday, it capped the day at 42,215.73, rising slightly by 0.3%. Meanwhile, the Nasdaq took a little hit, dropping around 60 points. Yet it’s worth noting that it had picked up nearly 0.4% on Thursday, settling at 19,175.87. As for the S&P 500, it hovered without much movement throughout the week, finishing unchanged after a slight climb the day before. In the bigger picture, investor fear seems to have eased, as indicated by the CBOE Volatility Index ticking down 0.7% to 19.18. And for the crypto enthusiasts, Bitcoin is on the up, trading at a whopping $106,000.
Our first headline for today’s financial stories centers around some intriguing company performances. Costco delivered a modest surprise, with earnings just above what analysts forecasted. Over in tech, Dell Technologies saw a 1% bump in premarket trading following an impressive first-quarter revenue boost—a testament to surging demand for its AI servers, despite slightly lower-than-anticipated earnings per share. Not to be outdone, NVIDIA continues to impress with a jaw-dropping 69% year-over-year increase in revenue, warming investor hearts even amidst looming trade tensions.
Turning to our economic indicators, there’s cautious optimism with the PCE report suggesting inflation might be cooling. We’re possibly looking at levels unseen since last September, though elevated inflation is still in the cards for the near term, dampening consumer spirits. In tariff news, a dramatic turn of events unfolded with President Trump's previously struck-down tariffs being reinstated. Despite adding uncertainty to trade relations, this reversal was met warmly by stock indices, signaling some hope for reduced tensions.
On a broader economic scale, consumers and their wallets are tightening up, as data indicates a slowdown in spending and a drop in imports. Internationally, Bolivia finds itself struggling with an economic slowdown, driven by a mix of natural and logistical challenges, driving inflation to a steep 10%. Meanwhile, around our credit markets, high-grade corporate bonds are selling like hotcakes, yet the shadow of rising interest rates looms, especially for those with shaky credit standings.
Before we wrap up, let's touch on some lighter news. Taylor Swift fans have something to sing about—Taylor has regained ownership of her back catalog. It’s a powerful move in the music industry and one that resonates with many about taking control of one's legacy.
And now, for some investment tips to guide your strategy. As inflation shifts and tariff policies unfold, it's important to keep your portfolio diversified. Consider watching how tech stocks fare with the AI momentum and be mindful of the credit markets as interest rates adjust.
That’s it for today’s edition of "Profit Insights." I'm Dusty, reminding you as always: when the dust settles, only the truth remains. Stay savvy and see you next time!
Supporting Data
**Market Performance:**
* The Dow Jones Industrial Average (DJI) added approximately 50 points. On Thursday, it had closed at 42,215.73, up 0.3% or 117.03 points.
* The Nasdaq Composite slipped around 60 points, or about a third of 1 percent on Friday. It had gained 0.4% or 74.93 points on Thursday to close at 19,175.87.
* The S&P 500 ended the week virtually unchanged. It had risen 0.4% or 23.62 points on Thursday to close at 5,912.17.
* S&P 500 futures were 0.1% lower on Friday morning. Nasdaq futures were also down 0.1%, while Dow Jones Industrial Average futures were little changed.
* A total of 18.65 billion shares were traded on Thursday, which was higher than the 20-session average of 17.7 billion.
* The CBOE Volatility Index (VIX), often referred to as the fear gauge, decreased by 0.7% to 19.18 on Thursday.
* Bitcoin (BTCUSD) was trading higher at around $106,000. Gold futures were lower, while oil futures were higher. The yield on the 10-year Treasury note was little changed. However, U.S. Treasuries were on track to deliver their first monthly loss of 2025.
**Company Earnings and News:**
* **Costco Wholesale (COST):** Reported fiscal third-quarter results that narrowly beat analysts' estimates.
* **Dell Technologies (DELL):** Shares rose 1% in premarket trading after the company reported better-than-expected fiscal 2026 first-quarter revenue, driven by "unprecedented demand" for its AI servers. Revenue grew 5% to $23.38 billion, and the company generated $12.1 billion in AI orders in the first quarter. Adjusted earnings per share of $1.55 were lower than estimates.
* **NVIDIA Corporation (NVDA):** Impressive earnings reported on Wednesday after hours continued to boost investor confidence on Thursday, with the company announcing a 69% year-over-year revenue increase to $44.1 billion, beating expectations.
**Economic Indicators and Trends:**
* **Inflation:** The Personal Consumption Expenditures (PCE) report, a key inflation gauge, was expected to show that inflation had cooled for a second straight month in April, potentially reaching its lowest levels since September. There is an expectation that inflation will remain elevated in the short term, contributing to negative consumer sentiment, though consumers are still seen as resilient.
* **Tariffs:** A federal appeals court reinstated President Donald Trump's wide-ranging tariffs on Thursday, a day after a trade court had struck down some of the import taxes. This created fresh trade uncertainty. The U.S. Court of International Trade had initially ruled that President Trump had surpassed his authority by imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977 without Congressional approval. The reinstatement of the tariffs by the appeals court, however, led to a positive reaction in financial markets on Thursday, with major U.S. stock indices gaining as some investors anticipated a de-escalation in trade tensions.
* **Consumer Spending:** Fresh economic data indicated that U.S. consumers were reducing their spending, and imports were plummeting.
* **Bolivia's Economy:** The IMF concluded its 2025 Article IV Consultation with Bolivia, noting that real GDP growth moderated to 2.1% in the first three quarters of 2024 due to declines in hydrocarbon production, a slowdown in services, and impacts from 'El Niño'. The country faced high import costs, weak agricultural production, and road blockages, pushing inflation to 10% at the end of 2024. Public debt increased to 95% of GDP.
* **Federal Spending:** There are expectations of more U.S. federal spending than previously anticipated, with deficits likely to remain.
* **Credit Market:** High-grade corporate bond sales were strong, with AT&T leading a $53 billion month, the highest for May since 2020. However, there are concerns for below-investment-grade companies with floating-rate liabilities due to higher interest rates. The cost of capital is higher, leading companies to be more nimble and thoughtful about debt and capex plans.
**Other News:**
* Pop superstar Taylor Swift announced she has bought her back catalog of recordings.
**Sources:**
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