Acting Labor Secretary, Goldman Chief Economist on Jobs Data, Fastest Growing ETF in History 5/8/26

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Sara Eisen (1:00)

Good Friday morning. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber. We are live as always from Post 9 of the New York Stock Exchange. Coming up this hour, stocks moving higher here after the April jobs report more than doubled expectations. We'll talk to acting labor secretary, Keith Sonderling in a first on CNBC interview about the print. Plus Goldman Sachs' Jan Hatzius with us on a jobs day. His first reaction to the number and read on the economy right now.

And we'll talk about a number of big movers in the NVIDIA ecosystem today, including this pullback for CoreWeave on results and a jump for AI infrastructure company, Iron, on news of a new partnership.

Carl Quintanilla (1:37)

First, let's get some inventories and you miss with Rick Santelli. Hey, Rick.

Rick Santelli (1:41)

Hi, Carl. Indeed. You know that University of Michigan's sentiment is probably going to be affected in a negative way due to all the issues of the day, not the least, which is what's going on in Middle East. And indeed, that's the case. 48.2 is our May preliminary figure. Well below expectations, a new all-time low going back to my database in the 70s. And if we look at current conditions, 47.8, guess what? New all-time low going back to the 70s based on my work. And if we look at expectations, 48.5, that's actually a smidge better than expected and a bit higher than a 48.1 in the rear view mirror. Obviously, it comes to March when it was well over 51 These aren't terrific numbers and all three in contraction territory. Let's get to the inflation numbers, shall we? 4.8 expected, 4.5 is what arrived, two-tenths less than a 4.7 in the rear view mirror. 3.8 in March, that's what it comes to. Take the big view, let's go to 5-10 year inflation, 3.4%, one-tenth lighter than both forward and backward looking. 3.4 would be the actual highest, highest since it was 3.2 in March. We had 3.3 in Feb, 3.3 in January, so less than expected but still pretty lofty. Now let's go look at the inventories. Our March final read on wholesale replaces the 1.4 with 1.3. These are huge and it definitely shows you that imports and exports and inventories have been affected by what's going on because 1.4 or 1.3 both come back to the summer of 2022 since inventories have been that big. And if we look at the sales side, 2.8, that's a full percent more than we were looking for. 2.8 would be the strongest since March of 22 Interest rates indeed are moving lower. We had better jobs and much weaker confidence and on the inflation front high, but could be higher. Sara, back to you.

Sara Eisen (3:45)

Okay. Thank you very much, Rick Santelli. Interesting mix here of, according to the University of Michigan, consumers worried about gas prices and some mentioning tariffs as well, about a third of them. Let's talk jobs. The headline number was good. I mean, this is a bit of a relief on the labor market front. 115,000 jobs added during the month and that was a lot better than the consensus, which was for just 55,000 jobs added. Also, April was the first back-to-back gain in payrolls in a year. Good momentum there for the jobs market. Also, if you zoom out and take it as a whole, the first four months of the year, monthly payrolls or jobs have averaged 76,000 jobs per month. That is up from the same time last year, which was about 42,000 for the first four months of the year. All of this is good news. It shows that there's this re-acceleration in the jobs market, and the unemployment rate remains unchanged around 4.3, though it edged up slightly if you look at the unrounded version.