SOTS 2nd Hour: Data Deluge - Key Highlights & Market Implications, Biggest IPO Of The Year, and LIVE: Kraft Heinz' New CEO 12/16/25

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Sara Eisen (0:52)

Good Tuesday morning, welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber. We are live as always from Post 9 of the New York Stock Exchange. Ahead this hour, market veteran Ed Yardeni and David Kelly join us to break down the flood of data we got this morning and what it all means for your money. Plus, Kraft Heinz gets a new leader. We'll talk to incoming CEO Steve Cahillane in a CNBC exclusive interview. And two reads on EVs, Tesla near record highs while Ford shakes up its electric ambitions in a big way. We've got the latest for you straight ahead.

Carl Quintanilla (1:23)

A lot of catch up on the data front today. Got some more right now with Rick Santelli. Hi again, Rick.

Rick Santelli (1:28)

Hi, Carl. Business Inventories. This September number, expecting that number to increase by one-tenth of a percent, comes in up two-tenths. Now, it's interesting. This is the third reading of up two-tenths in this data series. It equals where we were in June and Feb to find a higher number. You're going to January, which was the high-water mark of the year, up four-tenths. We do see rather sticky behavior on the long end, hovering around that 416, 417 area, virtually unchanged. We see some buying in the short end, pushing yields down, steepening the yield curve. Sara, back to you.

Sara Eisen (2:06)

Okay. Thank you very much, Rick Santelli. Yeah, 10-year yield, a little bit lower. Let's talk about the big jobs data that we got today. Overall, I think, pointing to a softening trend in the labor market, but it wasn't so simple. There was a lot of confusion in the data. So here's what's going to get the most play, the unemployment rate, because it did tick up to 4.6% in November from 4.4, highest level now since going back to September 2021 You don't want to see the unemployment rate go up. Now, part of the explanation here, though, is not all that bad. The participation rate went up a little bit. So more people entering the labor force drives that rate up, but it doesn't explain the full jump in the unemployment rate. So that's something that definitely the Fed is going to be paying attention to. Now let's show you what we got on jobs. So we got October jobs and we got November jobs. November, more important, 64,000 jobs added in the month of November. That was actually better than expected, but it was mostly coming from like one or two sectors. The negative number that we got in October down 105,000 jobs, kind of not too surprising because it was the government shutdown and we had those government job losses as well. I think the breakdown of November is important because it does spell weakness overall. Why? 64,000 jobs, which is the whole picture, was in the healthcare and social assistance industries. Construction was a net job adder, professional business services. They all added some jobs. Retail, OK. You know, holiday season. But look at some of the job losers on the month in terms of industries. Transportation and warehousing, that's a trade thing. Leisure and hospitality, down 12K. That may be somewhat surprising, given some of the resilience in that sector. Manufacturing, goods producing sector, down 5,000 jobs. So this wasn't a broad-based job gain. It was lumpy. And I think, you know, for those David at the Fed who are saying, we need to keep cutting rates and get ahead of this, they can point to this job data. I would also just add one more little fact here from it, which is that wage growth is cooling, which makes it easier for the Fed to cut interest rates because we expected average hourly earnings up 0.3. We got 0.1.

David Faber (4:17)

Kevin Hasse joined us, of course, potentially future Fed chair, certainly running the Council of Economic Advisors now. Talking about a very strong 2026, Sara.