Yahoo Finance

Hello and welcome to Market Domination sponsored by Tasty Trade. I'm Josh Lipton live from our NYC headquarters. Here is your headline blitz getting up to speed one hour before the closing bell rings on Wall Street.

97 or 98% of our trade deficit is with 15 countries. 18% of the countries are major trading partners. I would be surprised that if we don't have more than 80 or 90% of those wrapped up by the end of the year, and that may be much sooner.

Investors are assuming that the company can maintain 30% or 40% plus growth for the next 5 years. The company's valuation trades at 64 times 2026 consensus sales. Pallanttier theoretically could fall by 70%.And it would still be tied as the most expensive name in its entire um software peer group.

You know, it's not a surprise that the, what they guided for in terms of tariff impact was much smaller than GM guided for 4 to 5 billion uh last week. A lot more of Ford's production is, is in the United States. Despite this beat that they reported after the bell yesterday, the, the results were still pretty weak and I think point to some, uh, some larger issues, uh, you know, taking place at Ford.All right, we got 1 hour to go until the market close. We'll take a look at the major indices now. Boom. We got some red on the screen. Dow is down about 275%. Your broad gauge, the S&P 500 down about 0.1%, and your tech-heavy Nasdaq is down about 0.5% right now. Of course investors are still very eager to learn what progress could be made on trade deals. That is front and center and get headlines. Bloomberg noting President Trump did say he'll be making a big.Announcement before he departs for the Middle East next week. No details or specifics just yet on that. And of course it's all coming before the Fed's decision tomorrow. The expectation being that our central bankers will stay on hold. We'll see. US Treasury Secretary Scott Besson began his two days of testimony before House committees Tuesday morning. Now our finance's Jennifer Schonberger is standing by on the hill with the very latest, Jen.

Good afternoon, Josh. Treasury Secretary Scott Besant told House lawmakers this morning that the US could announce some trade deals with our largest trading partners as soon as this week, though negotiations with China have not yet started.Approximately 97 or 98% of our trade deficit is with 15 countries. 18% of the countries are major trading partners, and I would be surprised that if we don't have more than 80% or 90% of those wrapped up by the end of the year, and that may be much sooner.That I, I would think that perhaps as early as this week, we will be announcing trade deals uh with some of our uh largest trading partners.Bess says that many trading partners have approached the US with very good deals and that we could see a substantial reduction in tariff and non-tariff barriers as well as currency manipulation and subsidization of labor and capital markets. Meanwhile, one Democratic congressman, Mark Polkin took Secretary Bess to task on tariffs, repeatedly asking the Secretary who would pay for President Trump's tariffs.

The tariffs areOn again, off again, some on again, some off again, uh, somewhat chaotic, I, I believe is your term is what crazy Ivan uh style. Um, I, I compare them to how a monkey throws dung. Uh, you're not exactly sure where they're gonna land, um, and that's the concern I have as a small business owner. No, no, no, ask the answer the questions I asked, please, I only have 5 minutes. Who pays tariffs? Who pays tariffs, Mr. Secretary, please.

The Secretary says he does not believe the US is in a recession and says he believes that first quarter GDP, which contracted in the first three months of this year, will be revised higher. Meanwhile, when it comes to that so-called X date, the date at which the US will run out of money to pay its bills if the debt ceiling isn't raised, Besson says that we are.On the warning track, meaning that we are not far away from that though Besson says he will have an exact date soon once the US Treasury tabulates just how many of those tax payments have come in as of that April 15th deadline. Besson pledging that the US will never default. We will raise the debt ceiling. Back to you.

Thank you, Jen.Well, President Donald Trump hosting Canadian Prime Minister Mark Carney at the White House today for a meeting, and the two went back and forth and the avail availability of Canada.

Having met with the owners of Canada over the course of the campaign last several months, it's not for sale, it won't be for sale ever, but the opportunity is in the partnership and and what we can build together we have done that in the past and part of that, as the president just said, is with respect to our own security and my government is committed for a step change in our investment in Canadian security and our partnership.And I'll say this as well, that the president has revitalized international security, revitalized NATO and us playing our full weight uh in NATO, and that will be part of.

They have, I must say Canada is stepping up the military participation becauseMark knew, you know, they were low and now they're stepping it up and that's a very important thing, but never say never, never say never.Yahoo Finance's Ben Worshko here with some of the details. Ben.

Yes, good to be with you, Josh. So yeah, so that, that clip you saw there was kind of emblematic of a meeting between Trump and Carney that was that showed sort of two men who were actually meeting in person for the very first time since Carney's election, trying to, trying to be positive. You saw some sort of positive comments in there in the middle, but a clearly frayed US-Canada relationship that's going to take quite a long time to repair. On that 51st state talk, which is what Carney and Trump were talking about, Trump went on to offer an extended pitch for making Canada.51st state claiming annexation would be good for Canadians, something Carney has has disagreed with over and over again. The the bottom line here on kind of immediate term is in spite of a lot of the optimistic talk you hear from the administration on other issues. Jen laid a lot of that out. This meeting really showed that Canada and Canada and the US are quite a long ways. Both Trump and Carney were focused on a review of the USMCA. The deadline on that is July of 2026, so it's, it's not a this week proposition for certain.It was a two hour meeting that both both sides seemed to sort of be happy with, say it was going forward, but Trump at the same time saying there was nothing Carney could say to change his views on tariffs. 11 bit of reaction in the hours since Carney left the last hour that I think is telling is the Canadian Chamber of Commerce, which has been deeply critical of Trump over the tariffs, offered a statement that said they call this a relationship reset and that this could be momentum towards things down the road, but it's clearly going to be a road to repair the US.Canadian relationship.

Yeah, you know, Ben, with Trump and that rhetoric around the 501st state, I mean, you do wonder how that also plays with some of our allies. Overall, the tone though, Ben, you know, between these two, would you describe it as, you know, was it antagonistic or was it more constructive, positive? It did sound like they were, you know, willing to offer each other praise there.

Oh sure, yeah, they went, they went out of both of them went out of their ways. Carney called Trump a transformational president. Trump went out of his way to praise the way Carney.He conducted his campaign, but that kind of antagonism that's underneath did bubble up over and over again. It was sort of in a 25 minute period. It was, you could see it come up a few times. One thing that I think was a win for the Canadian side is that there wasn't kind of open antagonism there. Trump at one point compared this meeting today favorably to that notorious Oval Office blow up with Vladimir Zelinsky, where the two men were shouting each other. He said this one is much friendlier.

Ben, thank you, buddy. Appreciate it. Bye.Stocks fall and we're just under an hour to go now to the closing bell on Wall Street. Let's welcome in Joe Mazzola, Charles Schwab, head of trading and derivatives strategist who is gonna be hanging with me for the show today. Joe, great to see you on set. Thanks for having me, Josh. Appreciate it. Maybe, big picture, I'm interested, Joe, to get your take. When you think about markets and market sentiment, how would you characterize it based on what you're seeing with those Charles Schwab customers? Sure, so we have our, our stacks report, which is our Schwab Trading Activity index. We release it every month.Basically looks at what clients are doing, not what they're saying. So we have 35 million accounts we aggregate those we look at a couple 1000 of them, and then, you know, we, we look at it in terms of a range of where it's been, where it's at now. So one thing that's really interesting specifically about the month of April is we saw the biggest percentage drop from March to April that we've seen since March of 2020. So you gotta go all the way back to COVID. You remember those times, right?So there's a lot of um I think there's a lot of consternation around OK what do tariffs mean what does the trade policy mean and what does that really mean for the economy and the market. So specifically when we see big moves like that that's usually some sign that.You know, there, there's bear sentiment. Now what I will say is this that is the majority of the selling that we saw and that's really kind of what would give a negative stacks. The majority of the selling we saw occurred within the first week, right? So this is the April 4th to the April 7th period. You started to see some of that selling abating throughout the the the rest of the month, but a couple takeaways would be this.In the past when we've seen big sell-offs like that, it's, it's usually been met with some, some, uh, pretty decent dip buying. We saw a little bit of that on the 8th and the 9th, but just not enough to really say, hey, investors are willing to load the boat and get back in. I'm curious we'll get a specific names later, Joe, but on a sector level, any line of sight there, what what folks are buying, what they're fading. How about fading 10 out of the 11, that isn't that crazy? So.Uh, uh, 10 of the 11 sectors were on a dollar basis sold. The only sector that was bought was energy, and you know how much of that has to do with the fact that, you know, crude oil was kind of pushing towards multi-year lows, could have been it, um, you know, it's just, it's just interesting to see because IT was, you know, the, the big sell off, uh, and then, uh, staples and then discretionary. So you know, these are all kind of, uh, tariff tangents if you will, uh, especially on the discretionary and the staple side, and then IT, uh, what was really interesting about that.Was that that was, you know, the number one on a dollar basis in terms of where it was sold, uh, but the only, you know, there's only a few names that, you know, our investors continued to buy, uh, Nvidia being one of them, which is part of the IT sector, but, uh, it was a very select group this time. How granular, Joe, can you get on that data with your customers in terms of line of sight? I'm just curious, are there differences you can see generationally or what does it tell you? What do you see there?I'm Gen X, right? So Gen X came into, uh, that, you know, liberation Day if you will, they came into the liberation day, uh, much more loaded up kind of on equities and, uh, you know, what we call like portfolio beta exposure, right? So more tech names, more names that have a little bit more beta to them, uh, and they were also the ones that liquidated the most. So what we saw was if you came in kind of heavily loaded up on some of those tech names, you you you.Lowered them right you reduced the risk and you did that fairly quickly for some of the other generations out there, whether it was millennials or whether it was baby boomers, they looked at it. They weren't nearly as as heavily loaded up in some of those higher beta names, so they didn't they they they weren't dropping those names as quickly. Interesting. Final question, I'm just curious in the options market, any, any trends to call out what you're seeing with those retail clients? Yeah, really interesting there, so.We saw buying kind of heading into that April 7th date where we had the big pullback, right? And then after that, after the VIXs got up to 60 and kind of pulled back from there, we saw a lot of options selling so clients really did a nice job of, uh, you know, kind of uh option optimization if you will, kind of taking advantage of that volatility as it as it spiked, and we saw selling of spreads we saw selling calls put so on as we kind of moved into the rest of the month. So yeah, some, some really decent, uh, volatility.Optimization techniques that they employed. All right, Joe, interesting stuff. Stick around. You are gonna be hanging with us throughout the through the closing bell. So a quick check on the markets that is sponsored by Tay Trade stocks falling with just under an hour to go in the trading days. Some red across your popular industries here got the Dow down about 318. broad gauge, the S&P 500 down about 0.5%. The Nasdaq tech heavy gauge down.About 60%. I'm just looking at treasuries right now. Do a quick check of your benchmark tenure 4308. We are just getting started here on market domination. Coming up, shares of pound here getting crushed today. We'll take a deeper dive into the moves on the other side. And after the closing bell today, it's another round of earnings reports. We're gonna get you the very latest from AMD, Rivian, Upstart, and others. Stick around, much more market domination still to come.

Palantirer is having its worst day in exactly 1 year, and the reason is just the same as it was 12 months ago. A big disappointment on some key earnings metrics. So let's dive in and see how retail traders have been trading this stock over that time period. I'm Jared Blickery, host of Stocks in Translation. First off, this is a year-long chart. In white we have the price performance of Pallanter stock that I'm tracing along right now and in the green we have a line from Vander.This tracks retail participation and retail buying. It is a 10 day moving average of said buying, and you can see there's kind of a cyclicality to it. And a lot of times when price goes up, you'll also see this retail buying move up, and that means that retail traders are supporting the price movements, but it's not always the case. Sometimes it's institutions that are supporting it. So this is a 6 month chart and we're using a 5 day moving average.It's a little bit more volatile and here we have in white still this is palantir and there's that same bull pattern that I was just highlighting and in green we have that 5 day moving average of the flows. Now it's interesting and a representative from Vander Research pointed this out to me. Just take this price example. We had a little bit of a dip in price, then a recovery, and at the time this was a recovery to brand new highs, and we didn't really see retail join the party until it broke to new highs.And actually before that they were selling so it was institutions that were supporting the price and then retail was chasing the move and that's kind of important. Sometimes people say retail is always chasing, but I found that's not always the case. So I want to dig a little bit deeper into the price action over the last 3 days because as I said, we had a huge dip in Palantirer, about 10% drop. This chart goes 3 days back and I have Palantirer here.And white again, here's that drop, and we can see that today there was a little bit of a recovery. Now I have both large player and small player effective volume. Now these are different measurements that we were tracking with Vanda just a minute ago. This happens to be the discovery of Pascal Wilane, and he has something called effective volume, and he breaks down the price action into small player and large players. So the small player is a retail player and what I want to show you.Here is in green, the institutions were selling. They were selling that dip in the morning and retail was buying and then retail sold, so retail is kind of driving the trade up and then down, maybe day trading. Meanwhile, institutions, once we had that second dip into the morning, or once we got to that high rather, they have been supporting price since. So it looks like the large players, the institutions have stepped in a bit. So Palatier is one of those.Darlings and we've seen a lot of retail excitement over it and fits and starts. It's a day trading favorite and sometimes retail sometimes retail traders are the impetus for the moves that we see in the stock and sometimes it's the institutions. Today I think it's kind of a mix of both. So for more analysis, tune into stocks and translation for more market decoding deep dives every Tuesday and Thursday on the Yahoo Finance site and app or wherever you get your podcasts.

Thank you, Jared. Bringing back in here Joe Mazzola, Charles Schwab, head of trading and derivatives strategist. Joe, so, uh, Jared there was running through through all things Palantir. I'm curious what you're seeing. Is that a name Charles Schwab customers are interested in, Joe? Number 5 on the list of the top 5, top 5 buys so.What he said, I, I thought was pretty poignant and that, um, retail definitely about the dip in April and that we saw, we saw a lot of money move into Poland here, but I, I gotta tell you, heading into earning, I was, I was a little bit maybe skeptical of an additional bullish move and here's the reason why.Options were pricing in about an 18 to $19 move. That's, that's a pretty big move for a one week, uh, straddle or one week, one week move on a, you know, a $125 stock. So that was already kind of priced in that we were gonna see a big move we saw, uh, you know, basically an $18 move. So, you know, about right there. I think one of the big differences I saw this year as opposed to maybe what we've seen in the last few altier, uh, earnings cycles was there wasn't a lot of, uh, bullish momentum on the call side, right? So you talk about.You know, retail, when do they get in, uh, and you know, maybe one of the ways that you could look at that is if you see a lot of that upside bullish momentum from call buying, expecting a big move to the upside, we didn't see that nearly as much. What we saw was a little bit more on the put excuse, so a little bit more hedging. Maybe that's what they were getting at when they were kind of talking about this fact that institutions had maybe moved out a little bit, maybe there was some hedging on the downside, but we weren't looking at that same upside bias that maybe we've seen in the last couple of earnings reports.Another name I want you to take on Palantirer. Now Palanter Bulls will say, listen, this is a smart way to play the, the mega AI trade and, and trend. Of course, Nvidia Bulls would say the same thing. What do you see with Nvidia?Well, uh, Nvidia, you know, #1 on the list in terms of, uh, retail buys for 1, #1 in terms of for the month of April, and I would say it's been that way 16 out of the past 18 months, right? It, it, it still continues to do it and it was number 1 by a wide margin. So number one was Nvidia, number 2 was Amazon 8 fold is what we saw the dollar dollar amount come in for Amazon versus uh excuse me, for Nvidia versus Amazon.Um, what's interesting about that is, look, if you're looking at a sequential growth and we're talking about 35% annual growth for uh Palanttier, well, you're talking about 45% growth, uh, for Nvidia. You're talking about, uh, uh, a peg ratio on a, on a company like Nvidia that's, you know, 0.9%, right? If you're, if you're looking at that and extrapolating that versus, uh, the PE ratio where it's currently trading. So you know, I don't think there's anything wrong with Palantirer or its earnings. It's just wow, that bar was set really high.I mean, it was up, Joe, to your point, heading into that print, it was up around 400% over the past 12 months. It's just a rocket ship. Another name often discussed, debated Tesla. I'm just curious, where does that fall on the radar? You know, before Nvidia took the mantle about two years ago, that was, uh, the, the retail favorite was was Tesla. Um, you know, look, we can, we can talk about Doge, we can talk about kind of where that was, uh, in terms of why the, the, the stock fell from grace, you know, where it was at the end of December.Uh, but I think a lot of it is retail saw the opportunity to buy some dips. I mean, it was almost basically a 50% move or 50% and more right from, uh, from, from the December highs. They bought into that. That was, um, number 3 on the list in terms of retail buys, uh, for Schwab, uh, for, for our clients and yeah a lot of participation in the options market as well.Let me ask you, so we, we ran over what, what they, what they liked. I'm also curious what they're fading, what they're selling. One I thought was interested and you brought this up was Netflix. Netflix was, uh, you know, they might have been a little early on that one, right, because Netflix had blowout earnings, uh, stock, uh, pushed to another, you know, high, and it's, it's Netflix has basically, uh, bucked the trend of the overall market, specifically kind of in the communication services. Uh, it's had a really good year. I think probably some of that because remember Josh, it doesn't necessarily mean that they got shorted, it just means that they could trim it.So you could see, you could absolutely see somebody still carrying a position in Netflix trim it and have that have a negative effect in terms of what it does towards, uh, the tax report. So I had plenty of smart Tesla, uh sorry, Netflix analysts coming on here and telling me Netflix was actually, if you were part of their argument was if you're worried about tariffs, if you're worried about macro, they were banging the table on Netflix.Yesterday, right, until yesterday, right, another name Baba. What's going on there? I mean, I, you know, that's basically Baba is in the crossfire between kind of what's happening with the, you know, with the Chinese and the US tariffs and trade policy. And so once again, a company that had a really, really nice start to the year, as did many of the, uh, the Chinese companies and and ETFs.Had a real strong, uh, February March up until we really started to have those conversations around the tariffs and the stock kind of pulled back a little bit and it looked like we saw uh clients trim that. Finally, just I'm just curious, Joe, broadly, how concentrated has the buying been?Real concentrated. So, so here's what's interesting, Josh it's a sliver. So it's a sliver between those, you know, those top five names. But what I thought, you know, was even more interesting than that is usually when we look at the top 10 buys you might see one ETF on there, maybe two at the most. What we saw this time was basically, you know, those, those top 5 names that I shared with you and then 4 ETFs. So either and which were the ETFs do you?Fighters' cues, you know, your traditional ones, right, um, but what was interesting about that is think about kind of how retail kind of uh reacts to volatility. They kind of go with what they know. So they go with the companies that were the mag sevens that are cash rich that they feel comfortable owning, uh, that, you know, that they look at it and say, OK, well if interest rates go up or if trade policy, uh, changes, are they really gonna be that affected? So they kind of looked at it that way.Otherwise they said if if we're not gonna invest in those we want to broaden out a little bit because we don't know what the overall effect is gonna be on some of the other sectors. Like I said, 10 out of the 11 sectors were sold, so what we want to do is just maybe diversify that risk a little bit. Alright, so interesting. Thank you, Joe. Stick around. Coming up, Disney set to report 2nd quarter earnings results on Wednesday. We're gonna tell you everything you need to watch from the house, a mouse from market domination occurs.Phillip's out with earnings this morning and joining me now to talk about all of that is Philips CEO Roy Jacobs. Roy, really good to see you. Talk to me about this. You're in line with revenue at $4 billion. You got a great surprise beat on earnings per share. Talk to me about this quarter and what it means, you know, with this macro environment we're hearing, of course, tariffs is top of mind for people. I know you addressed that. So talk to me about how this quarter sets you up for the rest of the year.

Yeah, good morning and uh great to be back on your show. Um, it's a very encouraging start to the year I must say. Uh, we came in ahead of expectations for the quarter and especially pleased by seeing the increased momentum of orders and also growth in our consumer business. So we see that the fundamental demand for our innovations is strengthening in a world that of course is also seeing more uncertainty.Um, and that actually, uh, confirms that of course the challenges in healthcare has not been changed by what's happening with, for example, tariffs. There's still a significant gap in the demand that needs to be there to take care of the patients, the amount of staff that we have to take care of these patients, but also keep their affordable and accessible and therefore our innovations and AI really have an impact to make there.On the other hand, we also, uh, we're clear that we do take a current new reality into account.Where the announced tariffs have an impact in the year, not on sales, so we kept our sales guidance untouched because of the strong demand that we have, but we do reflect potential impact of the tariffs into our profit and cash guidance, and that's what we guided for in terms of 250 to 300 million net impact after a very substantial mitigation of a few hundreds of millions that we actually are actioning as we speak. We are adjusting our supply chain.To build on the plan that we already are executing against last few years to further regionalize and now also to further strengthen and localize in the US and at the same time take very stringent cost measures to also make sure that we don't have to offset.Um this with price increases to our customers, but actually we can manage it within our own turf and make sure that we keep healthcare affordable and accessible.

Yeah, and that's because a lot of your customers are in fact hospitals, you know those margins tend to be kind of thin. Talking about the regionalization of manufacturing. I know you on the call were talking about America for America and Europe for Europe in terms of the supply.Chain. Talk to me about what needs to be done right now, how you're, you know, building up a sort of resilience against potential tariffs staying, considering that you're in the medical devices uh business and that did not get the carve out or did not get sort of protected from the initial round of tariffs. What is it that needs to be done in case these tariffs don't go away?

Yes, so we have been actually already since COVID seeing that there is a world where we see a need to produce closer and closer to where also the demand is, and that indeed goes towards US for the US, EU for the EU, and Asia for Asia. Still, the medical technology supply chain is a complex one, so it doesn't mean that you can just source all components from one country and therefore what we have been doing is bringingMore of the components, more of the manufacturing into these regions, and what we will accelerate is doing that also further into the US. We have a strong footprint in the US. We have 46 locations. We also produce a manufacturer in the US. We do that for the US actually we also export out of the US and we will continue to do that more. We just announced a multi-million investment in Minnesota as an example for for cardiac devices, but we also produce.the ultrasound in the US are monitoring and part of our imaging, including the blue seal magnet, which is actually a world standard that we are also exporting around. So we still strengthen the footprint in the US, but we also make sure that actually bring more of the components that can support that and therefore the risk towards a further trend of regionalization that even if maybe the tariffs change and get lower, we still expect that that trend will continue.

And then the best case scenario, I know the industry is hoping for really getting a carve out or getting some kind of relief right now you're dealing with the very high China tariffs as well as the incrementals around Europe and the rest of the world. Talk to me about, you know, what it means for Phillips to get that carve out and sort of what areas of the business are really getting impacted or could get some relief.

Yeah, so if you look to the Philips business, 80% of Phillips is healthcare, so we're providing healthcare innovation. So that is the part where exemptions of course will be highly beneficial to providing the care to the patients that they need without disruption. That's also what we are strongly advocating for. We are actually in active engagement with the different governments across the world, also in the US, in Europe.In China and actually we see also resonance for that argument, so that's still being discussed. That's why we didn't want to preempt any outcome, and we said we take the current known terrorists into account as announced by the 2nd of April, where you have indeed very elevated US China tariffs. Then we have the 10% rest of world and we also assume that after a pause for the moment we revert back to what.Known as the terrorists that would take into effect by the 2nd of April. So that's the case, the kind of the case that we have taken into our full year outlook and then offset with substantial mitigation in supply chain cost measures, but also further driving our innovations to fulfill those demands that we see underlying, continuing and actually strengthening into the year because I think that was where the encouragement came from in Cuba.It was not only a beat on what we had guided the market for, but actually how we come out is with momentum, momentum on the consumer side where we saw personal health coming into growth, very strong growth, double digit growth in the international region and also the healthcare order intake was strong, actually double digit growth in North America, very strongly currently doing, and we expect that to continue.

Yahoo Finance continuing its coverage at the very busy Milken conference in California. Joining us right now is no stranger to Yahoo Finance Andy Sis, city head of wealth. Andy, good to see you. It's been a while. Hey, it's great to be here. Thank you. Uh, 5000 people at this conference. I think it's up more than, uh, compared to 3000 last year. The team is telling me. A lot of lot of international investors. What have been some of your takeaways? You've been on the ground since day one.And of course we got topic one is tariffs and US policy vis a vis the rest of the world. It's the beginning and the middle and the end of most conversations, but it's certainly not the only thing that's being talked about here because there are powerful forces that are shaping the markets. There's a lot of time being spent on AI, and I think every business has a strategy, but most businesses haven't, they can't really say they.The full effect of AI in their business. I mean, we think about it in C. This is going to have a profound impact across city and in wealth in particular. It's not going to be very long until we see this be transformational in terms of the way we're delivering advice, and we're leaning into it. Level set for the finance community. How big is the business that you run at Citi? I know you have you been over there for 2 years or 18 months, 18 months. OK. $1 trillion in client balance.We've got clients all over the world, a private bank. We've got more mass affluent businesses in the US, Hong Kong, Singapore, and in the Middle East. We've got a tremendous business in a law firm group in the US and in Europe, predominantly, so about 13,000 employees and a business with massive growth potential because C's brand.has real meaning to clients around the world. It represents what many people are looking for, which is a US financial institution with truly global DNA. And when you think about what it takes to manage through all these curveballs that are out there in the global markets right now, you know, the city speaks to it, our global network, our deep local expertise, our ability to help people.Who may have may be living in Hong Kong, but their family has kids going to school in Europe. They've got businesses that are thinking about buying in the Middle East or in Europe. We can help bring our global network to bear to enable them to achieve all that and more. In your seat yesterday for us was Mark Rowan, Apollo CEO, of course Apollo's parent company of Yahoo. He said something that surprised me. He said the US brand has been damaged because of the trade war. You're a global company.Are investors concerned about putting money to work in the US? I honestly don't think so. I mean, I think that we think about the quality of companies in the US, the depth of markets in the US, the legal framework in the US, the flexibility of the US labor market. I mean there is just a long, long list of reasons that investors remain.Excited about the US, I mean, on the increment, sure you're seeing the tariff dialogue create a little pause, a little hesitation, but I think the US story is going to continue to be a powerful leading story in global markets for many decades to come. Are investors able to separate between the city story and the US story? Yeah, well, 100%. I mean.Most places around the world, I mean, Citi has been there 100 years. We are seen as a US bank, but again, the DNA is, it's not just global, it's local. So I was at a lunch in Shanghai, not so long ago. Clients were talking about US companies and how geopolitics would affect US companies. Someone asked about City and before I could even answer the question, another.Client intervened and said, well, you know, city is not really a US bank it's a city it's a it's a global institution and so that's uh you know that that's how we're perceived and of course we play key roles here in terms of helping US companies reach around the world, but we also offer people around the world the ability to understand the US, you know, rely on the strength and stability of the US underpinnings of city to have confidence.Treasury Secretary Scott Besson was here gave a closely watched speech. I would try to read. I know it's noisy in here, but I want to read what he said because it was very interesting. He said, quote, We have uprooted government waste and harmful regulations. We have planted the seeds of private investment and we have fertilized the ground with fresh tax legislation. Next we harvest. Do you agree with that? And do you think.The economy is at a point where it is fertile.Like for investors, it is, it is the right agenda. It's an agenda about reinforcing US economic strength. It's an agenda though, as you just went through it, there's a lot of moving parts on this agenda. So, as is the case, you got to have a solid strategy, and then execution becomes paramount and the execution on the deregulatory.Agenda, the execution on the tax bill over the next few months. These are going to be pivot points in terms of whether this can all come together. And I would also say, I think it's a consensus here at the meeting that's a strong agenda. It's not necessarily a complete agenda. A lot of discussion at milk and around human capital in the US. What needs to happen to the educational system in the US to really step up to this.Opportunity to bring jobs here, bring manufacturing jobs here, compete in a different level, but you know we're supportive of the direction overall of policy, but again, execution here is this is going to be a very complex set of policies to put in place in a synchronized way. I watched another interview did. It was, I think it was early April after maybe liberation Day. You weren't alone, but you're cautious on stocks. Now we've seen the market come back, I think, to the surprise of many.Are you looking forA new drop. And are you a believer in this rally? I mean, we remain cautious in terms of where to deploy incremental risk assets. Our message has not been liquidate your portfolio and go to cash. Our message has been right now there's great uncertainty. We've seen soft data but not a lot of hard data yet. We're beginning to see earnings estimates being readjusted. We've seen we've seen, you know, as many download revisions as we've seen in a long, long time.So this is, you know, we would like to get a little more data under our belt, a little more visibility going forward before we're going to have conviction about putting incremental risk assets out there, and you know that remains our view. We generally think the market is going to remain in a trading range here over the next few months until until some of these things become more visible.Yeah, I was talking to Mattel's CEO this morning, and I cries, he just yanked his guidance. I mean, he said tariffs this year will cost his business $270 million. Is the market too optimistic right now? I think as we see the markets swinging from optimism to pessimism, you know, one day after another because there is great uncertainty. This isUnprecedented number of trade discussions they have going on in parallel. Obviously above all is the US-China dynamic. No one has a crystal ball. I think the president has an approach, but again, the pace with which events are going to unfold is almost impossible to predict. And so I think I think we're going to see investors swinging back and forth here.From, you know, from fear to greed on a fairly regular basis, and we're, we're going to need some of these agreements in place. We're going to need some traction on other aspects of the agenda before we're going to have true confidence and conviction. Lastly, Andy, the president has said he wants to create a sovereign wealth fund. They are moving forward with that. How impactful will that be to the broader wealth management industry and how does that impact the City? Well, I think.You know steps like the ones the president said, which are designed to strengthen the US economy and position the US to compete around the world, ultimately that is very good for the city. I mean we are a US bank and that benefits us in a variety of ways. I don't think probably direct impact on the wealth business in the US.But there's the wealth business in the US over time, of course, is driven by the wealth creation that's happening in the US and around the world. And again, you know, despite, despite uncertainty, despite fear, despite geopolitical shocks, the main drivers of wealth creation around the world are they are still moving forward. Markets are spreading around the world. There are levels of innovation happening in all corners.Of the world that we've never seen before and you know talent not just in the US and in China, but in so many markets. There's incredibly deep markets of talented people. This is all going to produce tremendous wealth creation. Good to see the work you're doing at City. I know you're getting a lot of shout outs on these earnings calls from CEO J Frasier. Good stuff. We'll talk to you soon. Thank you very much. I appreciate it. All right, do stick around. Much more ahead on Yahoo Finance.

Disney set to report 2nd quarter results and give investors the latest insight on how the company is thinking of macro uncertainties, and Yahoo Finance's Alexandra Canal joins us now with more. Hi Josh. Yeah, Disney earnings finally here, and as usual, investors are going to be focused on two big themes, one being the health of the parks and the profit improvements within streaming. But let's start with parks because historically this has been a very reliable profit engine.For Disney, but we have had a bumpy few quarters due to weather disruptions, cruise ship expenses, and now we have a consumer that's potentially pulling back and spending less on travel. So any further color on the health of the consumer, the macro environment, that's going to be closely watched along with competition. We have NBC Universal's Epic Universe debuting in Orlando later this month. That's been looked at as a big.Challenger to Disney. So what market share could look like post Epic will also be on the minds of investors. And then quickly turning to the streaming side, the company's direct to consumer unit, which includes Disney Plus and Hulu, that turned a profit again last quarter. It was boosted by price hikes and a crackdown on password sharing. Those efforts will likely continue to boost revenue in the 2nd quarter, but Disney Plus is expected to lose some subscribers.Due to those higher prices, along with some disruption changes out in France, overall, Disney still says it's on track for earnings growth this year in the mid to high single digits, but the stock is down sharply in 2025. Investors will be looking for more concrete signs of a turnaround here moving forward. We have shares down about 17% since the start of the year. I'm just going to be really interested, Ali, how execs.Walk analysts, the street and investors through how they're just thinking about navigating an economic downturn because you just laid out there parks and streaming and ad revenue that is a that's a lot of exposure though I guess made to your point, you could say that the stocks are down nearly 20% this year. So how much the bad news is priced in. Yeah, that is a question. I know in the last earnings call Hugh Johnston, he's the CFO of Disney, he basically said.It's very hard to change their guidance at this point, so they really reiterated everything that we heard from the end of last year and this guidance this forecast was very strong, and they basically said, no, full steam ahead, we're fine, we're, we're doing well at this point and they do expect a lot of acceleration in the back half of this year but that's a big question mark, right, because a lot of economists out there have been saying we could see pain on the labor side, pain on the inflation side.In mid to late summer, so if that happens, the back half of the year for Disney, it's not going to go so well. So I'm curious to see if management has a change in tone because we didn't really see that in February. They were pretty confident, but clearly since then there's been a lot that's happened even last month alone, so I, I agree with you. That's one thing I'm watching. And then switching gears, Comcast released the name of its cable spinoff. So what's the latest there?This is very interesting. If you remember, the temporary name of the spinoff company was Spinco, but we now have a new name, Verscent. It is meant to represent the corporate versatility of this new company, which will be spun out from Comcast later this year. It will be home to most of NBC Universal's cable TV networks including USA, CNBC, MSNBC, Oxygen E, Sci-Fi, the Golf Channel, but Comcast will maintain ownership of its NBC broadcast network.Including NBC News along with its Peacock streaming service and Bravo, which has been a big content feeder for Peacock, but for Scent, I don't know if I'm too crazy about it. It's it they have released a whole video on it. They say they've been thinking about it since December. They were at 50 names. It was this whole process. I just don't know if that translates to the consumer. Yeah, you know, if they'd asked me and and my marketing, I would have gone with a like a V.AI, you sprinkle all that AI dust on this. That is the moment. Then you got something. All right, I agree with you, Josh. I'll have to tell NBC management. Please do. Thank you, Ali. All right, while we are wrapping up today's market domination, don't go anywhere. We've got you covered with all the action following the closing bell, including the latest earnings results from Rivian and AMD, as well as conversation with the upstart CEO following their latest quarterly results. Stay tuned for market domination over time.