SOTS 2nd Hour: Earnings Blitz Breakdown, “Security Blanket” Software, Plus: FTC Chairman Talks Regulation 04/24/25

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Good Thursday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with David Faber here at Post 9 of the New York Stock Exchange. Sara Eisen, once again in DC, live from the World Bank. This hour, big interview coming up from Sara in a few minutes. Meantime, markets trying to stay constructive here. Dow's up 45, S&P holding 40, 54.15. Treasury's a 10 year, about 433 Some of the big movers we're watching today include some names under pressure, like IBM, despite beating estimates after saying some of its federal contracts were suspended. Some exclusive comments from their CEO coming up later on this hour. On the flip side, Texas Instruments rallying thanks to some strong guidance. P&G, Pepsi, Chipotle, all on the move after results. More on those names coming up in a moment and some healthcare names in the red, namely Merck and Bristol Myers, despite a top and bottom line beat from both names.

David Faber (1:47)

We also have some housing data just crossed the tape. Diana Olek has that for us. Diana.

Diana Olek (1:52)

Well, David, existing home sales in March fell a much wider than expected 5.9% from February to a seasonally adjusted annualized rate of 4.02 million units. Sales down 2.4% from March of last year and that is the slowest March sales pace since 2009, the Great Recession. Now remember, this count is based on closing, so its contracts likely signed in January and February when mortgage rates were over 7%, but it was before the market volatility of April. Supply is rising fast, 1.33 million units for sale at the end of March, up nearly 20% from the year before that makes a 4-month supply, which is still on the lean side. Six months is considered a balanced market. More inventory and slower sales are starting to put the chill on prices. The median price of an existing home sold in March was $400, $3,700. That's still an all-time high for the month, but it's only up 2.7% from last March, and that annual comparison is shrinking. First-time buyers made up 32% of the market the same as last year. They should be around 40%. All cash dropped to 26% from 28% the year before, but investors held SETI at 15% of sales. Sara?

Sara Eisen (3:05)

All right, kind of a bad combo. Weaker sales, higher prices. Diana, thank you very much. Diana Olek, I am here again at the IMF building today, the site of a lot of bilateral meetings between finance ministers and central bankers, mostly focused around trade and the global economy. You know, it's interesting, the Chinese finance minister and central banker are both here in Washington for the IMF meetings, but no word, of course, on any trade talks officially between China and the US. The big news here overnight that people are talking about is the response from China, very clear response about, you know, these two countries, the US and China staring each other down to see who was going to open communication first. According to the Commerce Ministry spokesperson in China, the US should respond to rational voices in the international community and within its own borders and thoroughly remove all unilateral tariffs imposed on China if it really wants to solve the problem. So again, just more sort of talking about talking, but not actually talking. And that is what is happening here, just not between the US and China. The other thing that stood out is we're starting to see some of the damage on both sides because of these tariffs. For instance, you know, what stood out to me guys, and what has people talking a little bit is this financial time story about Chinese factories slowing production, sending workers home, according to tariffs. They did some deep reporting here and showed that there is some furloughing of workers as the trade war has halted demand. And then Carl and David on the US side, you know, one chart that stood out to me, Port of Los Angeles. It's the largest port in the US. And the forecasts are for volumes to drop. This is a port where 40% of the imports originate from China. And so that's the effective trade embargo we have here with those very high tariffs on both side. We're hearing it from companies as well, but just wanted to sort of kick it off with what's at stake and how it's starting to be felt as countries here are trying to talk about mitigating the impact on their own economies and also going to the US with trade deals.