SOTS 2nd Hour: Apple’s Dwindling China Business, Intel Leaders Testify, Live: CEA Chair Stephen Miran

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Sara Eisen (1:06)

Good Tuesday morning, welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla who's back, and David Faber live from Post 9 of the New York Stock Exchange. Stocks are higher. It's been a little more tentative today than yesterday. Actually, they're now unchanged on the S&P 500, as I was saying. NASDAQ, little bit higher right now. Where's the strength in the market this morning? Well, it's in communication services, energy and consumer discretionary, which is an interesting lineup. You have Netflix up 2%, AT&T, some of these media names, Meta higher as well. Disney is higher in the morning action. And then all the other sectors are a little bit lower outside of those three right now. It's why you still see the NASDAQ with a slight gain right now. We've got economic data, we've got FedSpeak, we've got earnings, all to talk about, all in the mix today. Take a look at how treasuries are faring. And there's a bid for bonds, at least on the short end of the curve, up to 10 The 4.3 is your number on the 10-year yield. So it is a little bit elevated than where we have been in recent weeks. The 30-year yield, 4.6, it's a little firmer today. We're 30 minutes here into the trading session. Here are some movers we're watching. Shares of Home Builder, KB Home, falling after missing earnings estimates and cutting its outlook. The company CEO describing the crucial spring selling season as muted. More on the quarter in just a moment. Volatile moves for Tesla. Shares giving up earlier gains. Huge day yesterday, but new data today showing European sales plunged again.

Tesla now up over 20% in the past week alone after having a rough start to the year. And then shares of Mobileye are soaring. The company partnering with Volkswagen to develop assisted and autonomous driving. Also keep our eye on, keeping our eye as always on shares of NVIDIA. The 200-day moving average, that's a technical level on the stock. It's now trading above its 50-day average for the first time in more than two years. So NVIDIA is helping, Apple is helping, Amazon, Metta. But Tesla, not so much. Broadcom, those are a little bit weaker. So kind of a split in the big tech action today.

Carl Quintanilla (3:07)

Meantime, getting some breaking economic data. Let's get to Rick Santelli. Hey, Rick.

Rick Santelli (3:12)

Hey, Carl, indeed, you're watching yields move lower. I'll give you the culprit here. It's consumer confidence. For March, we're expecting a number around 94 92.9, weakest since Jan of 21 Present situation, 134.5, weakest since Sep of 24 If you look at expectations, 65.2, weakest since July of 22 Now, here are some positives. We're not going down dramatically in rates because last month, February final on consumer confidence from the Conference Board got upgraded rather nicely. Now, let's quickly look at Richmond Fed Manufacturing. Mine is 4, weakest since December of last year. So, basically the weakest of the year. And if we look at the service side versus manufacturing, mine is 14, that's the weakest since May of 23 And we had non-manufacturing Philly this morning turn the market at 436 in a 10-year because it was weak. Now, new home sales for the month of February, 676,000 seasonally-adjusted annualized units. That's actually the best of the year. It comes to deas of last year. And we all know rates dribbled a little lower in February. We know existing home sales were actually pretty strong, up 4.2%.

So, let's get more granular with new home sales. And for that, we'll head east to Diana Olek. Diana?

Diana Olick (4:38)

Well, Rick, you said it's the best of the year, so it's two months of the best. It's really a little bit below expectations. The street was looking for up 3%. You got up 1.8%. Sales up 5.1% year over year. But mortgage rates came down during February pretty sharply, starting at 7.05% on the 30-year fix, coming all the way down to 6.74%.