What do new earnings reports say about the tech sector amid potential tariff losses
CBS News
[{'start': '0.719', 'end': '3.840', 'text': 'The stock market closed in the green for'}, {'start': '2.480', 'end': '5.359', 'text': 'the start of May, fueled by strong'}, {'start': '3.840', 'end': '7.440', 'text': 'quarterly earnings from Meta and'}, {'start': '5.359', 'end': '9.360', 'text': 'Microsoft. The Dow Jones is up nearly a'}, {'start': '7.440', 'end': '11.120', 'text': 'quarter of a percent. The S&P 500 up'}, {'start': '9.360', 'end': '13.360', 'text': 'more than half a percent and NASDAQ is'}, {'start': '11.120', 'end': '15.280', 'text': 'up more than one and a half% after both'}, {'start': '13.360', 'end': '17.520', 'text': 'tech giants posted stronger than'}, {'start': '15.280', 'end': '19.199', 'text': 'expected revenue. After the close,'}, {'start': '17.520', 'end': '21.439', 'text': 'Amazon also released better than'}, {'start': '19.199', 'end': '23.119', 'text': "expected earnings. Apple's after close"}, {'start': '21.439', 'end': '25.199', 'text': 'earnings topped Wall Street'}, {'start': '23.119', 'end': '27.599', 'text': "expectations, but the company's closely"}, {'start': '25.199', 'end': '29.760', 'text': 'watched services division fell short as'}, {'start': '27.599', 'end': '31.199', 'text': 'it navigates import tariff uncertainty'}, {'start': '29.760', 'end': '32.719', 'text': 'under the Trump administration. That'}, {'start': '31.199', 'end': '34.399', 'text': "includes the company's music streaming"}, {'start': '32.719', 'end': '36.640', 'text': 'and other product distribution that'}, {'start': '34.399', 'end': '38.079', 'text': 'would be hit hardest by tariffs. CBS'}, {'start': '36.640', 'end': '40.000', 'text': 'News Money Watch correspondent Kelly'}, {'start': '38.079', 'end': '41.440', 'text': "O'Grady is who we turn to in times like"}, {'start': '40.000', 'end': '44.879', 'text': 'these. So, Kelly, what do these earnings'}, {'start': '41.440', 'end': '47.039', 'text': 'tell you and what does it tell you about'}, {'start': '44.879', 'end': '48.719', 'text': 'really the tech sector in general and'}, {'start': '47.039', 'end': '51.600', 'text': 'how people are perceiving these'}, {'start': '48.719', 'end': '53.199', 'text': 'potential tariff losses? So, Meta and'}, {'start': '51.600', 'end': '55.680', 'text': 'Microsoft that was a really bright spot'}, {'start': '53.199', 'end': '57.520', 'text': 'as you said buoyed the market today. But'}, {'start': '55.680', 'end': '59.120', 'text': 'if you think about it, Meta and'}, {'start': '57.520', 'end': '60.800', 'text': 'Microsoft, the things that we heard'}, {'start': '59.120', 'end': '62.879', 'text': "were, hey, we're going to keep investing"}, {'start': '60.800', 'end': '64.879', 'text': 'in AI. We feel really good about the'}, {'start': '62.879', 'end': '68.720', 'text': 'space. We have enough money to do that.'}, {'start': '64.879', 'end': '70.720', 'text': 'Meta specifically big advertising uh'}, {'start': '68.720', 'end': '72.400', 'text': 'business said hey businesses are still'}, {'start': '70.720', 'end': '74.400', 'text': 'why is it music to investors ears that'}, {'start': '72.400', 'end': '77.040', 'text': "they're still going to go full boore in"}, {'start': '74.400', 'end': '79.280', 'text': 'AI investment because AI is ultimately'}, {'start': '77.040', 'end': '81.680', 'text': 'over the next 10 20 years what is going'}, {'start': '79.280', 'end': '83.680', 'text': 'to be the driver for these companies of'}, {'start': '81.680', 'end': '85.520', 'text': 'growth and so the idea is hey you feel'}, {'start': '83.680', 'end': '86.960', 'text': 'good enough about your business that'}, {'start': '85.520', 'end': '88.400', 'text': "you're still going to be spending for"}, {'start': '86.960', 'end': '90.880', 'text': 'the future rather than worrying about'}, {'start': '88.400', 'end': '92.560', 'text': 'the present okay now completely'}, {'start': '90.880', 'end': '95.119', 'text': 'different picture when it comes to Apple'}, {'start': '92.560', 'end': '96.960', 'text': "and Amazon yes they're current quarter"}, {'start': '95.119', 'end': '98.560', 'text': 'was good, but I was just listening to'}, {'start': '96.960', 'end': '100.960', 'text': "the earnings calls. They're happening"}, {'start': '98.560', 'end': '104.040', 'text': 'right now. Market futures are falling'}, {'start': '100.960', 'end': '106.159', 'text': 'because Amazon said there is tariff'}, {'start': '104.040', 'end': '108.320', 'text': "uncertainty. They're not exactly sure"}, {'start': '106.159', 'end': '110.079', 'text': "what's going to happen. Of course, big"}, {'start': '108.320', 'end': '112.560', 'text': 'part of their business, right? Consumers'}, {'start': '110.079', 'end': '114.880', 'text': 'buying products on Amazon Prime. We'}, {'start': '112.560', 'end': '117.119', 'text': 'already know third party sellers, some'}, {'start': '114.880', 'end': '120.399', 'text': 'items are going to be going up because'}, {'start': '117.119', 'end': '122.159', 'text': 'of the tariffs. And we also know that,'}, {'start': '120.399', 'end': '124.399', 'text': 'you know, Amazon is in a tough spot'}, {'start': '122.159', 'end': '126.479', 'text': 'because a lot of their stuff comes from'}, {'start': '124.399', 'end': '128.000', 'text': "overseas. They're not manufacturing the"}, {'start': '126.479', 'end': '129.840', 'text': 'stuff. The one bright spot there, they'}, {'start': '128.000', 'end': '132.400', 'text': "said they've got a lot of inventory. So,"}, {'start': '129.840', 'end': '134.400', 'text': 'this next quarter looks good before'}, {'start': '132.400', 'end': '137.680', 'text': 'those tariff increases would hit in real'}, {'start': '134.400', 'end': '139.840', 'text': 'force. Apple, they were in a tough spot.'}, {'start': '137.680', 'end': '142.959', 'text': "They said that they're going to hit uh a"}, {'start': '139.840', 'end': '144.560', 'text': '$900 million increase in cost this'}, {'start': '142.959', 'end': '146.720', 'text': 'current quarter. So, this would be April'}, {'start': '144.560', 'end': '149.280', 'text': "to June. It's next one that we're we'll"}, {'start': '146.720', 'end': '151.599', 'text': 'get the results in J uh June because of'}, {'start': '149.280', 'end': '153.599', 'text': 'these tariffs. $900 million. $900'}, {'start': '151.599', 'end': '156.160', 'text': "million. Apple's really taking it on the"}, {'start': '153.599', 'end': '157.920', 'text': 'chin after the bell closed. And you told'}, {'start': '156.160', 'end': '159.840', 'text': 'me what that means. Yes, I did. Right.'}, {'start': '157.920', 'end': '161.920', 'text': 'Just like that. The stock. But the other'}, {'start': '159.840', 'end': '163.680', 'text': 'thing was is that Tim Cook, Apple CEO on'}, {'start': '161.920', 'end': '166.080', 'text': 'the call said, "I really don\'t know what'}, {'start': '163.680', 'end': '168.440', 'text': 'the future looks like past June in the'}, {'start': '166.080', 'end': '171.680', 'text': 'back half of the year." And that\'s'}, {'start': '168.440', 'end': '173.200', 'text': 'reprieve on cell phone imports. Why is'}, {'start': '171.680', 'end': '175.519', 'text': 'it still why are they still expecting'}, {'start': '173.200', 'end': '177.920', 'text': "it's going to cost them $900 million?"}, {'start': '175.519', 'end': '179.519', 'text': "Well, because there's still some, you"}, {'start': '177.920', 'end': '182.239', 'text': "know, pieces of things. There's also, I"}, {'start': '179.519', 'end': '184.159', 'text': 'think, the concern about retaliation'}, {'start': '182.239', 'end': '186.000', 'text': 'that could be coming. I mean, this'}, {'start': '184.159', 'end': '187.599', 'text': 'tariff war back and forth is really'}, {'start': '186.000', 'end': '189.760', 'text': 'tough. And you also have Apple thinking'}, {'start': '187.599', 'end': '191.280', 'text': 'about, well, do I move some of my'}, {'start': '189.760', 'end': '193.360', 'text': 'production to all of these different'}, {'start': '191.280', 'end': '195.120', 'text': 'places besides China? And that costs'}, {'start': '193.360', 'end': '197.680', 'text': 'money at the end of the day. So, you had'}, {'start': '195.120', 'end': '200.159', 'text': 'mentioned Amazon. Uh we had reported'}, {'start': '197.680', 'end': '203.040', 'text': 'that they were thinking about displaying'}, {'start': '200.159', 'end': '204.959', 'text': 'the cost of tariffs next to items and'}, {'start': '203.040', 'end': '207.519', 'text': 'Steven Miller spoke about that. This is'}, {'start': '204.959', 'end': '209.040', 'text': 'what he said. This was a clear attempt'}, {'start': '207.519', 'end': '210.560', 'text': 'by whoever proposed it originally. I'}, {'start': '209.040', 'end': '214.599', 'text': "don't know because Amazon says they were"}, {'start': '210.560', 'end': '219.120', 'text': 'never going to do it to try to undermine'}, {'start': '214.599', 'end': '221.440', 'text': 'our trade negotiations with China. I'}, {'start': '219.120', 'end': '223.040', 'text': 'mean some could say look it would be'}, {'start': '221.440', 'end': '224.560', 'text': 'transparent for consumers to know'}, {'start': '223.040', 'end': '226.319', 'text': 'exactly how much more. Why would the'}, {'start': '224.560', 'end': '229.200', 'text': 'administration be so afraid of that? But'}, {'start': '226.319', 'end': '230.879', 'text': 'what is your read on on this? Yeah. So,'}, {'start': '229.200', 'end': '232.799', 'text': "look, the the administration's argument"}, {'start': '230.879', 'end': '234.799', 'text': 'is, hey, you know, you just have a line'}, {'start': '232.799', 'end': '236.720', 'text': "for taxes and fees. You're not breaking"}, {'start': '234.799', 'end': '238.799', 'text': 'out every little piece. Why would you'}, {'start': '236.720', 'end': '240.879', 'text': 'break out tariffs? That feels like a'}, {'start': '238.799', 'end': '242.319', 'text': 'very timely moment. Amazon, to your'}, {'start': '240.879', 'end': '244.080', 'text': 'point, political and hostile act is what'}, {'start': '242.319', 'end': '245.760', 'text': "Caroline, that's exactly what they said."}, {'start': '244.080', 'end': '247.200', 'text': 'But to your point, Amazon is also'}, {'start': '245.760', 'end': '248.959', 'text': "saying, well, we're going to see prices"}, {'start': '247.200', 'end': '251.560', 'text': 'go up immediately. We want to tell our'}, {'start': '248.959', 'end': '253.760', 'text': 'consumers this is exactly why.'}, {'start': '251.560', 'end': '256.239', 'text': 'Regardless, we know prices are going to'}, {'start': '253.760', 'end': '258.479', 'text': "go up. We've already seen Amazon sellers"}, {'start': '256.239', 'end': '259.840', 'text': 'raising prices. This is going to be a'}, {'start': '258.479', 'end': '261.600', 'text': 'really tough spot for them. I did'}, {'start': '259.840', 'end': '263.280', 'text': "mention they've got inventory, so"}, {'start': '261.600', 'end': '265.440', 'text': "they've got a little bit of a runway,"}, {'start': '263.280', 'end': '266.880', 'text': 'but then beyond that, I mean, every'}, {'start': '265.440', 'end': '268.960', 'text': "earnings call that I'm listening to"}, {'start': '266.880', 'end': '270.320', 'text': 'where a company depends on the consumer,'}, {'start': '268.960', 'end': '273.280', 'text': "Amazon specifically, they're going,"}, {'start': '270.320', 'end': '275.440', 'text': '"We\'re not sure." Wow. Uh Tesla stock'}, {'start': '273.280', 'end': '277.280', 'text': "relatively flat this afternoon. The EV's"}, {'start': '275.440', 'end': '279.120', 'text': 'company chair is denying reports that'}, {'start': '277.280', 'end': '281.520', 'text': 'his board is looking to replace Elon'}, {'start': '279.120', 'end': '284.400', 'text': 'Musk. How are investors viewing Musk and'}, {'start': '281.520', 'end': '285.759', 'text': "Tesla right now? So, they've had a tough"}, {'start': '284.400', 'end': '288.320', 'text': 'run of it, right? I mean, the stock I'}, {'start': '285.759', 'end': '290.560', 'text': "just checked, it's down over 25% for the"}, {'start': '288.320', 'end': '292.160', 'text': 'year. We saw their earnings report. I'}, {'start': '290.560', 'end': '295.040', 'text': 'mean, they were just getting decimated'}, {'start': '292.160', 'end': '296.960', 'text': 'in terms of sales. Generally, Elon Musk'}, {'start': '295.040', 'end': '298.960', 'text': 'has had a bit of a brand problem with'}, {'start': '296.960', 'end': '301.440', 'text': 'his engagement with the government with'}, {'start': '298.960', 'end': '303.600', 'text': 'those Doge layoffs, but also Tesla in'}, {'start': '301.440', 'end': '305.759', 'text': 'general has had a tough time with their'}, {'start': '303.600', 'end': '308.800', 'text': 'sales in China. They have a lot of'}, {'start': '305.759', 'end': '311.600', 'text': 'competition. And so investors and folks'}, {'start': '308.800', 'end': '313.759', 'text': 'who are Tesla consumers really wanted'}, {'start': '311.600', 'end': '315.280', 'text': 'Elon Musk to be focused on Tesla. On'}, {'start': '313.759', 'end': '317.039', 'text': 'their earnings call a couple weeks ago,'}, {'start': '315.280', 'end': '319.120', 'text': 'we heard he said, "Look, I\'m going to be'}, {'start': '317.039', 'end': '321.840', 'text': 'back more at Tesla." I think investors'}, {'start': '319.120', 'end': '323.360', 'text': 'are looking for fruits of that labor'}, {'start': '321.840', 'end': '326.479', 'text': 'over the next couple of quarters. Okay,'}, {'start': '323.360', 'end': '326.479', 'text': 'Kelly, thank you so'}]