Hello Capitalists,

US-China talks open for their second round in London, LA burns as anti-ICE protests spiral out of control and the National Guard rolls in, Warner Brothers just made a huge announcement with implications for CNN and HBO, Soros is dumping money in to Texas to turn it blue, and your next Walmart order might be delivered by a drone.

Let’s break it down for you:

• The Top Line Market Numbers:

• DOW: 42762.36 (⏸0.00) 

• S&P: 6007.06 (⬆️0.11)

• NASDAQ: 19581.21 (⬆️0.26)

US-China trade talks start in London and Wall Street is watching them like a hawk!

The U.S. and China are sitting down for trade talks again, and it’s got Wall Street buzzing with cautious optimism.

And does Trump have a “secret weapon” up his sleeve to use against China?

• Stocks Edge Up: The S&P 500, Dow, and Nasdaq each climbed about 0.2% as renewed U.S.-China trade talks in London sparked hopes of dialing down tariff tensions.

• Trade Talks Take Center Stage: High-level discussions kicked off after a call between President Trump and Chinese President Xi, with investors watching closely for signs of a possible tariff deal.

• Trump’s “Secret Weapon?”: According to Heritage Foundation China expert Michael Pillsbury, upcoming U.S.-China trade talks will test competing theories about China's economic strength, with results likely becoming clear within hours of the high-stakes meeting. Speaking on "Varney & Co." Monday, Pillsbury argued that America's "secret weapon" against long-term Chinese competition isn't just trade negotiations, but "unleashing our own economy" through policies President Trump has already begun implementing. (Read More)

• Mixed Market Signals: While trade optimism lifted stocks, investors are also eyeing upcoming inflation data and tensions in Los Angeles, where Trump deployed the National Guard to address anti-deportation protests.

• Corporate Moves: Robinhood’s stock dropped 5% after the S&P 500 index rebalancing snub, showing how individual companies are navigating the broader market mood.

Quote of the Day:

Developing: Trump vows to “liberate Los Angeles” as anti-ICE riots burn through the city

President Donald Trump promised to “liberate Los Angeles from the Migrant Invasion” in a Sunday Truth Social post as rioters continue to clash with law enforcement and the situation intensifies.

• National Guard Deployed: President Trump ordered about 2,000 National Guard troops from California’s 79th Infantry Brigade Combat Team to Los Angeles to address protests and now riots against immigration enforcement, using federal authority under Title 10, despite objections from Governor Gavin Newsom.

• Why Protests?: Protests flared up in Paramount and downtown Los Angeles, with crowds gathering Friday and Saturday in response to ICE operations, including a reported raid where union leader David Huerta was injured and detained for allegedly obstructing federal agents.

• Economic Impact: While the economic impact of the riots are yet to be fully realized, the nationwide BLM riots in 2020, sparked by the death of George Floyd, amounted at least $1 billion in property damages. This marked the most expensive U.S. riots in insurance history. Could the present riots be headed in this direction?

• Federal Response Intensifies: Defense Secretary Pete Hegseth put active-duty Marines at Camp Pendleton on high alert, ready to back up the National Guard if unrest continues, a move Newsom called “deranged.”

• Clashes with Law Enforcement: Protesters surrounded a federal detention center, leading to police using tear gas and flash bangs, declaring an unlawful assembly, and detaining people; reports also mention assaults on ICE officers and property damage.

Warner Brothers just announced a huge split in its business model.

Warner Bros and Discovery are shaking things up with a major split! This is a huge deal because it could change how your favorite shows and films are made, streamed, or even what channels you watch them on. It’s like they’re hitting the reset button to compete in today’s fast-changing media world, and it might affect everything from HBO Max to CNN.

• Two New Companies by Mid-2026: Warner Bros. Discovery will split into Streaming & Studios (think Warner Bros. films, HBO, and HBO Max) and Global Networks (cable channels like CNN and TNT), aiming to give each business sharper focus.

• Leadership Split: CEO David Zaslav will lead the Streaming & Studios company, while CFO Gunnar Wiedenfels will head Global Networks, setting the stage for tailored strategies.

• Stock Jumps, Industry Trend: Shares rose nearly 9% premarket as investors cheered the move, which mirrors Comcast’s cable spinoff and signals a broader shift away from bloated media mergers.

Soros and Democrats look to turn Texas blue with a huge influx of cash

Democrats, backed by big-time donor George Soros, are pouring serious cash and energy into flipping Texas, a Republican fortress for decades. This could shake up the national electoral map, especially as Texas grows and gains more influence.

• Massive Blue Texas Push: The Soros-funded Texas Majority PAC, alongside Texas Democrats and county parties, is launching the “Blue Texas” initiative to rally thousands of volunteers, recruit candidates, and boost voter turnout for the 2026 midterms, starting with organizing rallies in June and candidate recruitment in July.

• Targeting a GOP Stronghold: Texas hasn’t gone blue in a statewide election since 1994, and Trump won big there in 2024, but Democrats see an opening with the state’s growing Hispanic population and a potential 2026 Senate race where incumbent John Cornyn faces a tough GOP primary challenge from Ken Paxton.

U.S. job cuts surge, retail job cuts skyrocket 274%

U.S. employer job cuts rose 80% so far this year compared to the same period last year, according to a report released by Challenger, Gray & Christmas.

• Job Cuts Nearly match All Of 2024’s: Job cuts announced in the first five months of 2025 surged 80% compared to the same period in 2024, reaching approximately 696,000 cuts versus just over 385,000 last year. The cuts are now only 65,000 away from matching the entire 2024 total, with some experts citing "tariffs, funding cuts, consumer spending, and overall economic pessimism" as key drivers.

• The Department of Government Efficiency (DOGE) initiatives are the leading cause of job cut announcements in 2025, affecting federal government positions, contractors, and private nonprofits through funding cuts and terminated contracts. Economic and market conditions are also contributing to the increased layoffs across various sectors.

• Retail job cuts have skyrocketed 274% over 2024 levels, reaching nearly 76,000 cuts and making it the second-highest industry for layoffs behind the federal government. Major retailers like JCPenney, Macy's, Forever 21, Rite-Aid, Walgreens, and Party City announced store closures, while craft retailer Joann closed all its remaining 800+ stores after filing for bankruptcy twice within a year.

Walmart looks to challenge Amazon’s Prime supremacy with a drone delivery fleet

Imagine getting your Walmart order dropped off at your doorstep in under 30 minutes—by a drone! Walmart’s making waves in the delivery game and it’s stepping up the competition with Amazon, pushing the boundaries of how fast and convenient shopping can be.

• Walmart’s Drone Expansion: Walmart is rolling out drone delivery to 100 stores across five states—Arkansas, Florida, Georgia, North Carolina, and Texas—partnering with Google’s Wing to bring super-fast delivery to cities like Atlanta, Charlotte, Houston, Orlando, and Tampa.

• Speed and Convenience: Wing’s drones can fly up to 6 miles from a store, delivering items in under 30 minutes, making it perfect for quick needs like groceries or last-minute essentials, competing head-to-head with Amazon’s Prime Air.

• Retail Innovation Race: This move builds on Walmart’s existing drone operations in Arkansas and Texas, aiming to outpace Amazon by leveraging its massive store network to redefine fast delivery in retail.