SOTS 2nd Hour: Alphabet Earnings Concerns, A Read on Regionals, LIVE: Oklo & Liberty Energy CEOs 7/23/25

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Sara Eisen (1:17)

Good Wednesday morning. Welcome to 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 rallying out again today, perhaps celebrating the Japan trade deal, which we'll talk about in just a moment. Up a little bit on the S&P. Nasdaq's kind of given a little back. Unchanged, we're waiting for big tech earnings. If you look at the breakdown of what's moving right now, healthcare is actually the leading sector, up 1.1% industrials, also strong. Energy, we've got a few energy CEOs coming your way. A technology a little bit under pressure and so are financials ahead of Alphabet, Tesla, IBM earnings. Take a look at treasuries here in the early action light data week today ahead of the Fed next week. A little bit of firming of yields here. The 10-year at 3.4.37, so nothing dramatic. Two-year a little elevated at 3.8. Coming up on today's show, we are getting you set for one of the most important day of earnings seasons. With reports this afternoon, as mentioned from Alphabet, Tesla, IBM, we'll get Chipotle and more. We'll talk to a portfolio manager who counts one of those names as his top holding. Plus, nuclear company OKLO teaming up with oil and natural gas firm Liberty Energy on a new partnership to power large-scale projects like data centers. The CEOs of both of those companies will join us this hour to discuss.

Carl Quintanilla (2:33)

Let's get some existing homes this morning with our Diana Olick. Morning, Diana.

Diana Olick (2:37)

Good morning, Carl. Existing home sales in June dropped 2.7 percent month to month to a seasonally adjusted annualized rate of 3.93 million units. That's a miss. The street was looking for essentially flat. Sales unchanged year over year. Now, this report is based on closing. So, contracts likely signed in April and May when the average on the 30-year fixed jumped over 7 percent a few times and never really went below 6.8. Now, on supply, there were 1.53 million units for sale at the end of June. That's up 15.9 percent from June of last year, representing a 4.7 month supply at the current sales pace. Six months is considered balanced. So, we're still lean. The median price of a new home sold in June was $435,300, up 2 percent year-over-year, and another record high for the month of June. That is the 24th consecutive month of annual increases. Houses are spending longer on the market, an average 27 days compared with 22 last June. First-time buyers at 30 percent. Historically, they're at 40, and all cash still elevated at 29 percent of sales. Sales are strongest on the higher end of the market. That's a change from the spring when the high end was hit by stock market volatility. And just one more thing, Sara, the chief economist Lawrence Yun on the conference call just answered a question about that potential cut in capital gains on home sales that the president suggested yesterday. He said their calculations show that that would affect 15 percent of current homeowners and largely on the very highest end of the market, Sara.

Sara Eisen (4:06)

Okay. Good to get that analysis, I guess, as we digest what that policy would mean. Thank you, Diana, Diana Olek. Big news today in the market and in Washington, the U.S.-Japan trade deal. And just to put it all in perspective, Japan is one of our biggest trading partners in terms of the size of trade deficits, which the president likes to view the world through. It's number seven just behind Taiwan. Of course, biggest trade deficit is with China, Mexico. Vietnam is in there. Ireland buy a lot of our drugs from there. But Japan is right behind Taiwan. There's a little more than $60 billion trade deficit in 2024 And guess what? A lot of that is autos. They ship a lot of autos into the US. And this is something the president has complained about, that it's not a two-way street. But look at here. Here's it's almost 80%.