SOTS 10AM: Palantir Pulls Back, Kostin’s Red Flag Warning, Ted Leonsis on the Enduring Power of Sports 11/4/25

Carl Quintanilla (0:00)

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SPEAKER_2 (0:17)

Hey, welcome into Walgreens.

SPEAKER_3 (0:18)

Hi there. All right, hon, I'll grab the gift wrap, cards, and oh, those stuffed animals the girls won.

Carl Quintanilla (0:26)

Great, and I'll grab the string lights and some.

David Kostin (0:30)

How about I grab some cough drops?

Dara Khosrowshahi (0:32)

This is not just a quick trip to Walgreens.

SPEAKER_3 (0:35)

I'm fine, honey.

Carl Quintanilla (0:37)

Just in case. You know what they say. Tis the season.

SPEAKER_6 (0:41)

This is help staying healthy through the holidays. Walgreens.

Sara Eisen (0:45)

Good Tuesday morning and welcome back to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber. We are live at post 9 of the New York Stock Exchange. Stocks right now are under pressure. The S&P is down six-tenths of a percent. We've come back a little bit, but the NASDAQ is getting hit harder. It's down eight-tenths to spots that are working, financials and real estate. Everything else is lower. We've got a lot of earnings to talk about, but at the bottom of the pack today, you have energy, industrials, and information technologies. As for treasuries right now, we'll show you what's going on. Again, we're data light here in the middle of the shutdown, but there's buying of safe haven treasuries, and that's pushing yields lower. We've got the tenure now back below 4.1. That's where it ran up to after Powell last week.

That's reversing. Today, Goldman Sachs Chief US. Equity Strategist, David Kostin will join us with his take on this renewed volatility and the one potential red flag for the market from earnings season so far. Then speaking of earnings, Palantir getting slammed this morning, despite strong results across the board. Let's take a look at what's driving the move. It's down almost 7 percent. Then a Titan in the sports world. We will be joined by Ted Leonsis, the owner of the Washington Capitals, Wizards, Mystics as team valuations keep rising. Ratings hold strong. But guys, since we don't have the official data, what we do have, we are blessed with a ton of earnings, and from all different kinds of sectors. So I pulled out some key quotes about what companies and CEOs are telling us about the consumer right now. It really varies by industry. For instance, look at Clorox, Linda Rendell of Clorox. This is where the consumer pain is really being felt in some of these staples companies. The consumer continues to be under stress, definitely reacting to the level of volatility and uncertainty that's out there. And we're seeing that in their shopping behaviors. Remember, David, when I warned you about Kenview yesterday? When consumers don't pay top dollar for the high-end brands, the consumer staples feel it. And so Clorox is an example of one as well. But it's different if you're in the travel business, where, for instance, Marriott CEO Tony Capuiano, high-end consumers, he says, have demonstrated resilience to macro uncertainties and continue to prioritize travel. So they're not prioritizing Kleenex, Clorox, Clorox Bleach or whatever. And they are prioritizing travel. And that's kind of a continued theme. High-end, low-end is also obviously a big one as we get through some of these earnings.

Carl Quintanilla (3:12)

Although we did see Norwegian suffer today.

Sara Eisen (3:15)

Yeah, that was a revenue miss. Although the numbers were quite good. And the commentary on travel.

Carl Quintanilla (3:20)

You can see that stock is actually worsening. That gentleman was 12%.

Sara Eisen (3:23)

Contessa is going to talk to the CEO. And we'll hear from him a little bit later. But some of these stocks are also very priced for perfection. They've had such tremendous run ups. Yum Brands, they have their news on Pizza Hut, obviously, which is moving the stock. But as far as what they're saying about the consumer, we're not seeing the consumer pull back in the Taco Bell business, we do think the consumer in the US is cautious, but incredibly resilient. So that's what you're getting. A lot of these executives acknowledging the caution, the volatility, the uncertainty, but also the resilience. On the other end, Uber CEO, Dharakas Rishahi was on Squawk Box this morning. I thought pretty bullish about what they're seeing from consumers.

Dara Khosrowshahi (4:10)

When we look at our results in terms of the high end consumer or the more budget consumer, they both continue to grow. We're actually now penetrating increasingly outside of the large cities and our growth rates outside of the large cities and some of the sparser geographics that we're going after are one and a half to three times faster growth than in the big cities. So we're not seeing consumer trends one way or the other change. They continue to be strong.