Apple’s Services Boost, Live: Chicago Fed President Goolsbee, Pres. Trump to Meet with Nvidia’s Huang 1/31/25

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SPEAKER_2 (0:28)

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Sara Eisen (0:44)

Good Friday morning. Welcome to another hour of Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber, live as always from Post 9 of the New York Stock Exchange. Stocks are higher on this final trading day of the week. Look at the NASDAQ. It's climbing back more than 1%. We're still lower for the week, but trimming those losses. We're now down a quarter of a percent for the week on the NASDAQ. S&P actually just turning positive on the week. So we've really climbed back from that meltdown around DeepSeek earlier this week. Communication services leading the charge right now. Consumer discretionary also sharply higher as the mega caps fight back. Information technology, health care and real estate. Those are your positive sectors right now.

Broadcom, Meta, Tesla, Google all leading. Treasuries, there's the 10-year yield. Continues to go a little bit lower. So there's buying hovering around that 4.5 level, two-year yield below 4.2. 30 minutes here into the trading session. Here are some movers we're watching. Shares of Apple rallying on the back of its latest results. iPhone sales fell, but gross margins hit a record as its services business keeps growing. More on the Apple trade ahead on the show. Keep an eye on Big Oil, Chevron missing earnings estimates. The company's refining business posting its first loss in four years. Rival Exxon beating estimates. Higher oil and gas production offsetting lower oil prices and weaker refining margins. Stocks both lower today. We're tracking a number of areas of the market that could be impacted by President Trump's tariff threat. The automakers, especially the Canadian dollar also in focus as well. The loonie, as it's called, sitting at a five year low against the US dollar. Their strong dollar, weak loonie. That's what we're going to talk about, tariffs. Because February 1st, Saturday, that's the deadline. And President Trump has indicated he's going to move forward with that 25% tariffs. We'll see if that actually happens. But here are the goods I decided to break down of what we Americans buy from Canada and Mexico. So top imports from Mexico. And this is why we watch the auto trade vehicles, auto parts, electronics and appliances. A lot of the supply chain goes through Mexico for US consumers. Crude oil is on there as well, medical devices, beer on there. From Canada, crude oil is a big one. And that's why President Trump has discussed this idea of whether they would give an exemption to oil because it is such a major import. And he wants lower oil prices, not higher oil prices. So doesn't want to raise the cost. Vehicles on there, gas, lumber, food and frozen food. Okay, the food and beverage sector guys, highly exposed to tariffs on Canada and Mexico. Listen to this.

The two countries account for more than 40% of US food and beverage imports. And David, some of these stats are amazing. 86% of imported US tomatoes come from Mexico. 86%, 83% of imported beer made from malt originates from Mexico. 83% of cabbages, cauliflower, kohlrabi, kale, all the things I like, fresh or chilled come from Mexico and don't even get into dates and avocados and figs. It's more than 70% of total US imports come from Mexico.

Carl Quintanilla (3:50)

Do we have the production capacity for tomatoes to suddenly meet the domestic market?

Sara Eisen (3:56)

I wouldn't think so. I don't think so unless those farmers get really busy on tomatoes.

Carl Quintanilla (3:59)

Or can figure out a way to grow them.

David Faber (4:01)

If their workers start keep showing up.

Sara Eisen (4:03)

Exactly, we also could have labor shortages on those. In Canada, there's some stunning statistics as well. Share of imports from Canada of swine. Live swine to the UF., 100%.

That's according to Evercore ISI. 100% of our live swine imports are from Canada right now. We've taken them all from Canada. Same with sheep, goats, poultry, live chickens, ducks, geese, turkeys.