SOTS 2nd Hour: An Exclusive w/Trump’s New FCC Pick, Big Highs For Big Tech, HPE CEO 12/6/24

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Steve Liesman (0:49)

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Steve Liesman (1:00)

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Carl Quintanilla (1:02)

Good Friday morning. Welcome to another hour of Squawk on the Street. I'm Carl Quintanilla with David Faber. Melissa Lee is with us here at Post 9 of the New York Stock Exchange. Sarah Eisen has the morning off. All-time highs yet again for the S&P. We got to 60.99 a moment ago. Just a point shy of 6,100. Ten-year yield, lowest since mid-October, even as the jobs number comes in solid, 227

Melissa Lee (1:24)

We are 30 minutes into the trading session. Here are the three big movers are watching for you this morning. Lululemon shares leading the S&P and NASDAQ after a top and bottom line beat plus guidance raise. Strong international growth helping offset slowing US sales. Alta also popping higher on a similar story, beating estimates, raising guidance, and a host of tech names hitting new 52-week highs at the open. Tesla Palantir Service Now plus HPE. That is surging following strong results there. CEO Antonio Neri will join us later this hour to break down those numbers.

Carl Quintanilla (1:54)

Busy day for data. Getting some consumer sentiment now with you, Mish. Let's get to Rick Santelli. Hey, Rick.

Rick Santelli (2:00)

Hi, Carl and Dean. Now, these are these preliminary in a couple weeks we'll get the final, so they'll be altered potentially. There's some surprises here. If we look at the headline number, sequentially higher, better than expectations, comes in at 74.0, best since April of this year. Current conditions, same scenario, better than the windshield, better than the rear view mirror, by far, 77.7, also the best since April of this year. Now, here's the surprise. What lies ahead? Expectations takes a nosedive. It's below expectations. It's below the last read, so it's lower sequentially, comes in at 71.6. Last look in our final read was 76.9. That's the weakest since July of this year. Now, on the inflation front, also some surprising news. The one-year inflation jumps from 2.6 all the way up to 2.9. That would be the hottest since June of this year, when it was 3%.

Yet, 5-10 year came in exactly as expected at 3.1, one-tenth cooler than the rear-view mirror at 3.2. 3.1, 3.1, this would be the smallest month over month change in that category. Just since October when it was 3.0, the lowest read actually occurred in March when it was 2.8. So, in a way, been there, done that, but it is moving down a bit. The aftermath, not much change in what's going on with interest rates, but there was a big change from this morning. When we came in this morning, we were at 4.16 on a 2 Now it's at 4.08, and that's down 7 on the day, 7 on the week. We're at 4.18 before all the numbers this morning in a 10 It's currently at 4.13, which means it is now down 5 on the day, down 4 on the week. Carl, back to you.

Carl Quintanilla (3:51)

All right, Rick, thank you for that, Rick Santelli. Stocks gaining a little, as you can see, 16.95 this morning. Unemployment came in strong this morning, but unemployment did edge up to 4.2. Our senior economics reporter, Steve Leesman, is here to break down some numbers, talk about what it might mean for rates in the Fed. Morning, Steve.

Steve Liesman (4:07)

Hey, Carl, yeah, just enough, I think, what you'd call it, the November jobs report. Although a bit on the hot side, still showed just enough weakness to convince markets the Fed will remain on track to cut rates in December. We'll talk about more in a second.