SOTS 2nd Hour: Countdown to Nvidia, AI Biotech Picks, and A Retail Wrap-Up: Key Takeaways From Results 5/28/25

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Sara Eisen (0:59)

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 just lost an early morning rally here. If you look at the S&P 500, we've just dipped negative. There's still strength out there. Communication services, for instance. Some of the media companies are doing well today. Healthcare, consumer staples, industrials, those are all green, but everybody else is in the red. Worst performing groups right now, real estate, materials and energy. The Nasdaq 100 is just positive. Nasdaq composite unchanged. We're waiting for the big event this afternoon. That's Nvidia's earnings. As for treasuries, keeping an eye on those after we saw Raleigh yesterday, reversing that a little bit today with the yields firmer. 10-year yield, 4.489. 30-year yield is just below that 5% level of high yields. So we're keeping a close eye on that. That's been sort of a warning sign for stocks lately. Ahead this hour, former Goldman Sachs Asset Management Chairman Jim O'Neill is back. He says President Trump's policies could dent the dollar's dominance and negatively impact America's standing abroad. He's going to join us to make the case. Plus, why health care and biotech could end up being a major winner in the AI revolution and which names to watch in that space. We are 30 minutes here into the trading session. Here are three big movers we're watching right now. GameStop shares on the move after the company announced it purchased nearly 5000 bitcoins worth more than half a billion dollars. Not helping today. Some results from the cloud names. Octa shares plunging after the company maintained the guide but warned of quote macroeconomic uncertainties. Well box shares pop higher on strong billings growth tied to AI, almost 14%. And it's a big day for retail. New numbers out of Capri, Macy's, Dick's, Sporting Goods, Abercrombie & Fitch. Shares of Abercrombie surging this morning. That's the big showstopper, up 25.5%.

And guys, you know I mined through some of these retail releases to find out what they're saying about the consumer. Abercrombie is really a brand story. And it's a Hollister story. You have teenage girls, Carl. Hollister is really making a move higher right now. Here's from the CEO Fran Hurwitz, just overall on what she's seeing. May month to date trends all incorporate the outlook of 3 to 5% for the quarter. Volume will build from here, she says, particularly for Hollister, as we move to the back to school season. It's those vintage tees and jeans of Hollister, which is a big come back story. Com Store sales there jumped 23% in the quarter, from 13% seen a year ago. So on top of double digit growth, that's really, David, a standout story among retail. And you have to be a standout now.

David Faber (3:34)

So what are they doing? Right, what's working?

Sara Eisen (3:38)

They have the right trends. You know, people are still buying baggy jeans and looking for new jeans, and that's been a big trend for Abercrombie. And the Hollister turnaround is sort of the new part of it. They've also been really good on social media, reaching influencers and those marketing campaigns, which you know drives a lot of the business. There's just also, you know, people say a lot of room for growth here still in this company, which is still, you know, revenue is about a billion dollars. But as far as what else we're getting from retail, you know, you can see Capri, for instance, they own Michael Kors, they own Jimmy Choo, softness in the luxury space on the Choo side. We were impacted by the continued softening demand for fashion, luxury goods globally.