QQQs -1% as Trump was back to threatening tariffs: this time raising tariff rate to 50% on EU and 25% on smartphones although most investors just rolled eyes and didn’t believe threats given we’ve seen this playbook before: outrageous numbers that then shortly get walked back, which is essentially what Bessent said this morning saying 50% is a negotiating tactic aimed at extracting a better deal. Oh, how the price action has changed in regards to Tariff tweets in a couple months…General consensus at this point seems to be that tariff burden likely not much more than 10% baseline with a few sectoral tariffs on top. (h/t VK).
Yields were mainly flat. BTC -2%.
Tweet from Elon couple hours ago - DOGE from IT spend headwind to IT spend tailwind?
Good Elon is back!
Pretty slow news/research day outside the above Trump tweets, but lets get to it..
Internet
DASH +2.6% as Yipit said that GOV tracking 1.5ppts above street QTD
Ad names weak: META -1.5% - hearing near-term data has decelerated from April (something Hedgeye also called out last week); PINS -2.7%;; TTD -60bps; GOOGL -1.4% taking a breather; RDDT +2.5% the standout outperformer today
MELI -4% as some main worry here is SE encroaching on MELI’s home turf: JPM had a note out this morning saying SE is expanding its logistics infrastructure in Brazil, with Sea Ltd.'s e-commerce division establishing a new fulfillment center in Pernambuco in Brazil's Northeastern region…JPM noted this follows the company's initial Brazilian fulfillment center launch in São Paulo during October 2024, and highlights that the company has "tripled its logistics capacity in Rio de Janeiro state." JPM also observed that MELI has announced shipping fee reductions in Brazil, offering "discounts of approximately 10-40% on shipping fees charged to sellers on some items
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