Closing Bell Closing Bell Overtime: Yields Spike, Hit Stocks; AT&T CEO On Fiber Acquisition 05/21/25
May 21, 2025
Scott Chronert, a Citi U.S. Equity Strategist, and CNBC reporter Kate Rooney dive into the recent market pullback as rising yields keep investors cautious. They discuss AT&T's $6 billion acquisition of Lumen's fiber business, emphasizing the growing telecommunications landscape. The duo also highlights earnings trends from Snowflake and Zoom, along with the surprising statistic of U.S. cars aged 12.8 years, reflecting shifting consumer behaviors amid economic challenges.
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Budget Deficit Affects Yields
- The $2 trillion budget deficit remains a key factor in today's tricky bond auction and rising yields.
- This leads to a weaker U.S. dollar and ongoing valuation headwinds in the market.
AI Acquisitions Signal Strong Trend
- AI acquisitions without current revenues show the competitiveness and opportunity in the AI space.
- The purchase of Johnny Ive's startup by OpenAI signals the sustained AI investment trend.
Consumer Firms Resilient to Tariffs
- Companies like Amazon, Walmart, and Procter & Gamble are attractive due to their lower sensitivity to tariffs and demonstrated growth strategies.
- Identifying firms with resilience amid tariff concerns presents investment opportunities within consumer sectors.