Wall Street Breakfast Podcast: Google Confirms Leak

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Google (GOOG) (GOOGL) Search secret algorithm documentation leaked. (00:27) Biden administration throws support behind building large-scale nuclear reactors. (01:16) Homeland Security cracking down on customs brokers used by Shein, Temu (PDD). (03:18)

This is an abridged transcript of the podcast.

Google (NASDAQ:GOOG) (NASDAQ:GOOGL) has confirmed that the 2,500 leaked internal documents with details on data tracked by the company are authentic, The Verge reported.

The documents contain details on Google’s (GOOG) (GOOGL) secret algorithm for ranking search results which sheds light on the kind of data that Google collects and uses.

“We would caution against making inaccurate assumptions about Search based on out-of-context, outdated, or incomplete information,” company spokesperson Davis Thompson told The Verge. “We’ve shared extensive information about how Search works and the types of factors that our systems weigh, while also working to protect the integrity of our results from manipulation.”

Rand Fishkin, a search engine optimization expert, earlier this week shared the leaked Search API documentation obtained from Erfan Azimi – founder of EA Eagle Digital – and confirmed by former Google (GOOG) (GOOGL) employees.

The Biden administration announced new measures Wednesday intended to accelerate the development of new U.S. nuclear power projects.

The goal is to help mitigate risk associated with the construction of plants that can cost tens of billions of dollars.

The last commercial-scale reactor built in the U.S. was Southern Company’s Vogtle nuclear project which came in more than $16B over budget and seven years behind schedule.

The White House unveiled a new working group – including members of federal agencies as well as nuclear developers, contractors, labor and non-profit organizations – that will identify ways to mitigate cost and schedule overruns in plant construction.

It also said the Army will solicit feedback for a program to deploy advanced nuclear reactors to provide power to multiple facilities around the U.S.

The Biden administration has said nuclear power is needed to meet U.S. climate and clean power goals, but a dozen reactors have closed since 2013, losing out against cheaper power from natural gas and renewable energy sources.

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Temu (PDD), Shein and other foreign e-commerce companies might lose an attractive loophole that lets them avoid U.S. customs.

Regulators have begun cracking down on entities which facilitate shipments from overseas.

The Information reported Wednesday that the U.S. Customs and Border Protection Agency has suspended Seko Logistics’ participation in the Entry Type 86 program for 90 days.

Section 321 Type 86 allows for shipments with a value less than $800 expedited entry into the U.S.

With millions of packages shipped each day, the savings are tremendous for both Shein and Temu (PDD).

Lawmakers have been stepping up pressure on government agencies to stifle these shipments from China as the exemption not only undercuts U.S. manufacturers but can indirectly result in the use of forced labor.

According to data from Customs and Border Protection cited by The Information, 705 million of Type 86 packages have been imported into the U.S. so far in 2024 compared to 1 million for all of 2023.

It’s unlikely that the suspension of a handful of customs brokers will put much of a dent into the businesses of either Shein or Temu but is this a potential snag for Shein as it looks to go public in the U.S.?

More articles on Seeking Alpha:

Activist investor Nelson Peltz sells out of entire Disney stake – CNBC

Gap between Nvidia’s 20% post-Q1 leap and S&P 500’s slip was unprecedented – Evercore ISI

Stocks with momentum and at least 5% EPS revisions since end of March – Wolfe Research

Catalyst watch:

• Notable investor events include Xylem’s (XYL) Investor Day, ICON’s (ICLR) Investor Day meeting, Cloudflare’s (NET) Investor Day, and Axis Capital’s (AXS) Investor Day.

• Sanofi (SNY) is scheduled to spin off Inhibrx Biosciences (INXB) after completing the acquisition of Inhibrx (INBX). The spinoff will include all the non-INBRX-101 assets of Inhibrx into the new company. Inhibrx’s shareholders will receive 0.25 shares of Inhibrx Biosciences per Inhibrx share. Inhibrx Biosciences will be capitalized with $200 million of cash at distribution. Sanofi will retain an 8% equity stake in Inhibrx Biosciences.

• Ford (F) will participate in the Bernstein Strategic Decisions Conference in New York City. CEO Jim Farley will discuss the company’s customer-centered Ford+ plan to grow, raise margins and increase capital efficiency while improving business durability.

Wall Street ended lower on Wednesday.

The Dow (DJI) shed the most among the three major averages, falling 1.06%. The S&P 500 (SP500) retreated 0.74%, while the Nasdaq (COMP:IND) lost ground by 0.58%.

All 11 S&P sectors ended in the red.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the red. Crude oil is down 0.4% at less than $79 per barrel. Bitcoin is down 0.3% at more than $67,000.

In the world markets, the FTSE 100 is up 0.3% and the DAX is flat.

The biggest movers for the day premarket: Despite upbeat Q1 results, UiPath (NYSE:PATH) shares plummeted about 29%, overshadowed by the announcement of CEO Rob Enslin’s resignation, effective June 1. The company re-appointed Daniel Dines, founder and former CEO of UiPath, as a successor.

On today’s economic calendar:

• 10:00 Pending Home Sales

• 10:30 EIA Natural Gas Inventory

• 12:05 PM Fed’s John Williams will speak before a hybrid Signature Luncheon event hosted by the Economic Club of New York.