SOTS 2nd Hour: Big Tech On Deck, Huawei vs. Nvidia, and Spring Selling Concerns 4/28/25

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Sara Eisen (1:02)

Good Monday morning. Welcome to Squawk on the Street. I'm Sara Eisen with David Faber and Mike Santoli today, live from Post 9 of the New York Stock Exchange. Stocks unchanged on the SMP, a little bit lower, and that's because information technology is the worst performing sector, along with utilities and communication services. Nvidia, down 2.5 percent, part of the story there, but there's strength. Financials are up half a percent. Industrials, materials, some of the cyclical groups are catching a bid this early Monday morning. Nasdaq down half a percent. Dow actually remains higher, which I think reflects the split here in terms of cyclical groups up, tech a little bit down. What's contributing to the Dow? Goldman Sachs, Caterpillar, Boeing and Visa.

Take a look at Treasuries and how we're going to kick off the week. Remember, the Fed's in quiet period ahead of their big meeting next week, so those headlines will diminish. The 10-year yield unchanged at 4.26 percent. The two-year yield 3.74. So we have come back from those elevated levels post the drama where Treasuries were selling off along with stocks. 30 minutes here into the trading session. Here are three big movers we're watching. Tesla about flat after coming off its best week in five months and reportedly raising prices across the board for cars sold in Canada. Separately, Morgan Stanley's Adam Jonas with a new note bullish on the company's robotics technology. The stock is a little bit higher now. Speaking of big tech, watching Apple as well. Reporting results this week, Thursday, Morgan Stanley raises their price target on the name to 2.35 a share ahead of earnings while JPMorgan is forecasting a better than feared report. That stock giving back a little today. Then Domino's, the latest consumer name to issue earnings. Same store sales there falling half a percent and their CEO calling out a challenging global macroeconomic environment in the release. But guys, as far as the week ahead, it's peak earnings week. I mean, we will hear from not just a few of the Mag 7, including Microsoft and Meta, but we're also going to be hearing from a lot of consumer names. Coca-Cola is tomorrow, Caterpillar on the industrial front. This is the week. And what's going to be important is less the quarter and how businesses are fairing, because that's generally been okay. But what they're saying about the future, what they're saying about tariffs, what they're saying about the spending environment for consumers and what they're saying about their plans for spending themselves, because that's the big question mark, I think, over the entire economy right now. What are big companies doing? Are they hunkering down? Are they cutting costs? You know, we're in, I've been talking to CEOs, we're in this mode of, we are controlling the controllable. We're controlling what we can control. We can't control the tariffs, we can't control the exchange rates in the markets. We can control cost, that's one thing. And you know, it's interesting, guys, we have not seen in the weekly jobless claims number any kind of spike in layoffs, that's a good thing, but we are starting to see signs that the cost control is materializing. How about this Torsen Slock from Apollo chart on CapEx plans? This is capital spending plans for companies. He took a look at all sorts of surveys and how companies are thinking about what they're doing with their CapEx. The important thing is, and there's lots of lines because they're from all different sources, they're from the NFIB, the Small Business Survey, they're from the New York Fed, that survey of manufacturers, it's coming down. We're not at recession levels, as you can see those big drops around COVID and bigger drops during recessionary periods, but we are trending lower. So watch out for productivity, cuts on the earnings call, because while they've slowed their hiring, they haven't actually laid off, and that's the next thing that the market could worry about or the Fed could worry about.