Disney CEO Speaks, AMD CEO Exclusive, Trade Hopes and the Fed 5/7/25

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Carl Quintanilla (1:02)

Market moving insight and analysis join Jim Cramer, David Faber, and me Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street. Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with David Faber, Mike Santoli at Post 9 of the New York Stock Exchange. Cramer has the morning off. Stocks get a bounce on this news that Besant and Greer will head to Geneva this week for what's being dubbed an icebreaker with their Chinese counterparts over trade. Fed decision at 2 p.m. Eastern and more guidance cuts today from Novo, SMCI, and others. Our roadmap begins with these China talks. Futures bouncing on the news, the Treasury Secretary and the top trade official Jameson Greer will meet their counterparts in Switzerland this week.

David Faber (1:41)

Plus, shares at Disney are rallying this morning. The company reported a perhaps surprising uptick in the number of streaming subs. Also announced its plans to build a new theme park and resort in Abu Dhabi. We're going to bring you more of my exclusive conversation with CEO Bob Iger. That'll be in just a few minutes. And keep an eye on shares of AMD. The company dodged stronger than expected first quarter results. Its CEO Lisa Su will join us exclusively later this hour.

Carl Quintanilla (2:07)

Let's begin with the markets, trade and decision day for the Fed. Interesting news about going to Switzerland, Mike. Although at the same time, the EU continues to say they're going to ready some countermeasures in the event that their talks with the Americans fail.

Mike Santoli (2:21)

Yeah. I mean, stand off on every front. The market at this point, having come back the way it did, certainly prices in some measure of de-escalation and the absence of some kind of real economic calamity. So any progress in that direction is welcome. The market has shown a little bit of an instinct to bid for even rumors of meetings and deals. That being said, we're down 1.4% in the S&P this week after a very strong 3% gain last week, after we've come 17% off the low. And to me, it's, okay, short term, overbought. We got back to the April 2nd levels. You regained 60% of all that was lost, and it's a now what moment. At the same time, you still have plenty of negative sentiment to burn off, I think, and institutions probably felt left behind by the rally. So to me, that's why we're in this sort of low volatility way, churning around in this area. Currency volatility has eased up today. That's to me the thing to watch in terms of whether it bleeds into everywhere else. Credit's been fine, but currencies has been that little bit of a tail of capital flight.

David Faber (3:31)

We were talking, in fact, yesterday a good deal. I spoke with Sarah about it as well when we were both at Milken in terms of the expectation in the market that there would be some signs of de-escalation in the next few weeks, and we already have gotten them. But I guess the key question remains, what has the market already priced in in terms of those expectations? Obviously, C Futures are pointing to a higher open 28 minutes or so from now, Mike. But when I speak to a number of market participants, it's now, all right, what are the tariffs going to be lowered to when we get this de-escalation? And again, that is still uncertain in terms of whether we get it and what it looks like. But is it 50%? Is it 40%? And of course, as is typical of hedge fund managers, they're trying to figure out, well, if it's less than 50, that'll be really good. And then we'll get a bump up in the S&P, maybe a few percent. And the Russell probably more so because it's been penalized more so as a result. But that's the kind of thing that's going on right now. And obviously no surprise that the market already has priced in this expectation to some extent that we will get this de-escalation.