Wall Street Breakfast Podcast: High Costs Grounds Travel

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Fewer Americans plan on taking a vacation this summer. (00:20) Intel backs off plan to detach from Intel Capital. (01:48) Guess? spikes on a report of a rival bid to acquire the company. (02:44)

This is an abridged transcript.

Less than half of Americans are planning to take a vacation this summer.

This year 46% are planning some R&R which is down from 53% who planned a vacation last summer.

These numbers are from Bankrate’s 2025 Summer Travel Survey.

With higher air fares, hotel costs, and eating out all factors in determining if and where to take a vacation, two-thirds of those surveyed said it was the cost that made their decision to stay at home this summer. And of those who do choose to travel, only 29% are planning to use credit cards to finance their excursions, down from 36% a year ago.

But it’s not only the cost of a vacation that is discouraging travel, but also the cost of everyday expenses. Bankrate found that 68% of the people polled said that the high cost of living is preventing their ability to finance a vacation, while 64% said travel was too expensive.

Data compiled by the Bureau of Labor Statistics showed a 1.7% increase in the price of a hotel or motel stay and is up 15% from pre-COVID levels.

One less expensive option is a cruise. Cost-conscious consumers are piling into ships at a record pace with 19 million Americans expected to go on a cruise this year, an increase of 4.5% from last year, and the third straight year of record passenger volume.

Intel (NASDAQ:INTC) CEO Lip-Bu Tan said during Thursday night’s first quarter 2025 earnings call that the company has decided against spinning off its venture capital arm, Intel Capital.

This is a reversal from early this year, when Intel expected to finalize a spin-off during the second half of 2025.

Instead, Tan said the Intel Capital team will focus on monetizing its existing portfolio, be more selective on new investments and begin the process of deleveraging.

Intel Capital has more than $5B in assets under management and has invested in more than 1,800 companies since it was founded nearly 35 years ago.

Intel is down -5% premarket after the company reported Q1 results that exceeded expectations but issued a weaker-than-anticipated outlook for Q2.

Guess? (NYSE:GES) shot up in Thursday afternoon trading after Bloomberg reported that Authentic Brands Group is considering launching a takeover bid for the apparel company at a higher price than the $13 per share offer from WHP Global.

Sources indicate that deliberations on a bid are still ongoing.

Shares of Guess! (GES) closed 17.2% higher on Thursday at $11.65. The 52-week high for GES is $27.41.

What’s Trending on Seeking Alpha:

China mulls exempting select U.S. goods from 125% tariffs – report

Alphabet CEO signals personal ownership optionality for Waymo robotaxis

Apple to shift assembly of all US iPhones to India by 2026 – report

Catalyst watch:

• The six-day American Association of Cancer Research annual meeting will begin. The AACR meeting serves as a critical platform for unveiling the latest scientific breakthroughs, clinical trial data, and technological innovations in cancer research and treatment, particularly for biotech and pharma companies presenting pivotal clinical trial data or announcing major R&D advances. Companies participating include Amgen (AMGN), AstraZeneca (AZN), Bristol Myers Squibb (BMY), Eli Lilly & Company (LLY), Gilead Sciences (GILD), Merck (MRK), Novartis (NVS), and Pfizer (PFE).

• Abbott Laboratories (ABT) will hold its annual general meeting.

Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in mixed territory. Crude oil is down 0.6% at $62/barrel. Bitcoin is down 0.3% at $93,000. Gold is down 1.6% at $3,296.

The FTSE 100 is flat and the DAX is up 0. 9%. And the market in Australia is closed for a holiday.

The biggest movers for the day premarket: Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) +5% – Shares rallied after the company reported strong Q1 results that topped estimates, fueled by continued momentum in its search advertising, cloud, and services businesses. Revenue rose 12% Y/Y, while operating income grew over 20%, with margins expanding to 34%. Net income jumped 46%. CEO Sundar Pichai highlighted solid traction from its AI offerings, including the launch of Gemini 2.5. Additionally, the company raised its dividend by 5% to $0.21.

On today’s economic calendar: