Squawk on the Street Tariffs Latest, PCE Takeaways, & JPMorgan’s Retail Playbook 5/30/25
4 snips
May 30, 2025 In this discussion, Matt Boss, a retail analyst from JPMorgan known for his expertise in consumer behavior, dives into the current retail landscape. He highlights the significant impact of tariffs on major players like Gap, causing a sharp decline in stocks. Boss also shares insights on which retail stocks are worth buying and which to avoid in these turbulent times. The conversation also touches on the broader economic indicators, such as the PCE inflation measure, and addresses the market's response to trade tensions.
AI Snips
Chapters
Transcript
Episode notes
Inflation Near Fed Target
- The Fed's preferred inflation measure (PCE) shows inflation hitting 2.1%, close to the 2% target.
- Companies are currently absorbing tariff costs, delaying price increases to consumers, which could change later.
Margins Absorb Tariff Costs
- Corporate profit margins remain high, allowing firms to absorb tariff costs without immediate price hikes.
- AI-driven efficiencies may further boost margins, delaying consumer price inflation.
China Uses Export Curbs as Bargaining Chip
- China delays removing rare earth export curbs after U.S. trade deal, seen as negotiation leverage.
- Chinese tactics often interpret agreements literally, not in spirit, to gain advantage.