Tesla shareholders vote on Musk's pay: Market Domination Overtime

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On today's edition of Market Domination Overtime, Yahoo Finance's Julie Hyman and Josh Lipton break down the market close and the trading day's biggest...

) fell into the red. This comes off the back of the Federal Reserve leaving interest rates unchanged as inflation cools. BNP Paribas Managing Director and Senior Multi-Asset Specialist Mark Howard explains that while the Fed's decision was noteworthy,topped Wall Street estimates on both the top and bottom linesvalued at $46 billion, the California Public Employees' Retirement System — which holds 9.2 million Tesla shares — disclosed it will vote against Musk's compensation package.

So off 11 basis points pretty big move there in the 10 year, the dollar down as well on the day and then just glancing at some other stuff, I know we've been watching Bitcoin not doing much went up and came back down again, I guess, and crude oil, uh trading a little bit higher. But uh the real mover today as you saw in market action was CP I which helped long duration equities like the tech stocks.Uh 10 year treasury and two year Treasury all rallied.But then the fed came in later and said, you know, not so much, it's probably more like December.

The the valuation paradigm uh is somewhat based on the expectation that rates are not gonna go higher. And so that's something where I think a lot of corporate execs are gonna wanna see, uh what is the most likely outcome with regard to tax policy?Will it be there and importantly trade policy? And we'll see um, you know, with the first debate coming up pretty soon, uh, more clarity around what some of those policies may be and mark, um, you don't just focus on stocks, you focus on multi assets as your title implies.Well, you know, I think, uh, commodities have taken a back seat and, uh, and, and people are not talking as much about commodities.

There's been a lot of focus on the different uh picks and shovels that go into energy transition, however you want to define that. And so even though it's, it's results were sort of lackluster, people were really focusing more on that.For words, Mr Johnson says the world's largest cloud companies and the world's most successful and accomplished A I companies choose to use Oracle cloud services and data centers.

Bloomberg Intelligence saying that these deals are likely to accelerate growth in that cloud infrastructure business which could help offset a slot a slowdown in the broader cloud portfolio.So for Katz on the show, sure, that's an open invitation, open invitation coming up with Tesla shareholders set to vote on Musk controversial pay package tomorrow.

And by the way quick uh note on the stock split here that will be effective as of July 15th on the open up trading.You will get the results tomorrow afternoon.Yahoo Finance's Alexis Keenan here discussed some of the pros and cons that shareholders are weighing Alexis.So it's still kind of a wait and see even though Elon Musk teased us a little bit in that tweet or ex post saying that 90% of the retail shareholders that have voted so far wanted a yes for his pay deal.

They could say that there's harm to the company's value if it loses the 40 to 50 billion plus that it might have to pay Elon Musk.Also maybe just punishing the board of directors for their approach to analyzing the pay deal.So, you know, that's not necessarily a ton of detail though the company holds out that they did put this rigorous analysis to come up with this redo this copycat version of the 2018 deal.

So you know, who knows, we don't know how it's gonna go, but there have been some big names like that significant shareholders that have come out and said they're voting against it.We are right now in fact, and while we're awaiting this decision from Tesla shareholders on Elon Musk's pay package, our next guest says it is a nightmare, lose, lose situation for shareholders joining us.It is good to see you, Ross.

So, you know, we throw around these numbers, but in the real world, the average American makes 65 $1000 a year. So he put Tesla in a position where if we don't fall for him and he, let's say threatens to leave the company and leaves the company.So he's done this while the board is again, closed their eyes and been fine as he's just let go, a ton of, you know, really talented long term executives at Tesla for one reason or another.

Um If it does pass, you know, the good news is we can just go back to litigating this comp package as it, it will be re litigated.And the shareholders will be responsible for $25 billion of taxes on this that, you know, he'll have to liquidate stock to pay and, and shareholders will bear that cost.

 

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