SOTS 2nd Hour: Alphabet & Tesla Takes, LIVE: CSX CEO, UnitedHealth’s Road Ahead 7/24/25

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How those ahead, stay ahead.

Sara Eisen (1:02)

Good Thursday morning. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber, live from post-night of the New York Stock Exchange. Stocks are hanging in there. We've got Google helping the tech trade, fuel the AI trade. Market's up about two-tenths of one percent. Communication services at the top of the market. Thank you to Alphabet. Financials are doing well, though. Industrials, health care, technology all up today. Biggest loser so far looks like is materials, along with consumer discretionary. Nasdaq up two-tenths of one percent. As for Treasuries, show you what's happening there. Selling off, yields a little bit firmer. We got better jobless claims. Lowest level there since April. Perhaps fueling ideas that the Fed isn't going to cut, or isn't as likely to cut, or doesn't need to cut. We'll talk about that. The 10-year yield, 4.4, goes above 4.4 today. The two-year yield just below 4 percent. Big show coming up for you. Coming up, we'll speak exclusively to the CEO of CSX about the company's results and the new round of M&A headlines breaking this morning in the real space. Plus, we'll break down the quarter from Tesla and Alphabet, sending stocks in opposite directions this morning. Tesla down almost 8 percent. And new comments from IBM CEO as that name falls to the bottom of the S&P on the back of results and concerns about a deceleration in software.

Carl Quintanilla (2:18)

Yesterday was about existing homes. We're getting some new home sales data now. Let's get to Rick Santelli.

Rick Santelli (2:22)

Hey, Rick.

Rick Santelli (2:24)

Yes, Carl. These are June new home sales. Expecting a nice round number around 650,000 seasonally adjusted annualized units. Comes in on the light side. No surprise. 627,000. But it is from a 623,000.

So it is up just a smidge, somewhere around a half a percent. But here's the deal. Last month, 623,000 was the lowest in 7 months, going to October last year. This is barely above that. It still comes to that. The previous month was a much more robust 722,000. So we have back to back weak months. We know the story. Journal talks about how the spring shopping season was very weak. We're seeing inventory still building on a number of fronts with regard to new homes. And on the existing, well, we see that there's weakness there. Rates remain persistently high. And even if the Fed lowers, there's no guarantees what the 10-year is going to do. But I will say, if you look at the 2's 10 spread, it's been hovering around 50 basis points. Not much wiggle in the curve. That's because of the Fed meeting next week. Sara, back to you.

Sara Eisen (3:31)

Okay. Thank you, Rick. Rick Santelli. Well, we are knee deep in earning season, which means that I've been scouring through the reports and so far, our great producers, for what we're hearing about the consumer and what we're hearing about overall economic demand. Because companies have the best read right now. The one weak spot, I would say, on the consumer came from Chipotle. And you can see that in the stock. The company lowered guidance for the year for the second time this year. Stock's getting beat up. Here's what the CEO said about why.

Rick Santelli (4:03)

I think much of what we're experiencing right now is due to macro and the consumer, the low-income consumer is looking for value as a price point at present. You have to look no further than what's going on with our competitors with snack occasion or $5 meals or... And that's where the consumer is drifting towards is value as a price point because of low consumer sentiment. I think as sentiment improves, the business will improve. And so I think that's probably the biggest headwind we face.