SOTS 2nd Hour: Earnings To Know, Fodder For The Bulls, & Sen. Elizabeth Warren LIVE 4/22/26

SPEAKER_1 (0:00)

Trading at Schwab is powered by Ameritrade, giving you even more specialized support than ever before, like access to the trade desk. Our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy gut check. Need assistance? No problem. Get 24-7 professional answers and live help, and access support by phone, email, and in-platform chat. That's how Schwab is here for you, to help you trade brilliantly.

Learn more at schwab.com/trading.

SPEAKER_2 (0:28)

She loves it hot, he loves it cool. The Pod by 8 Sleep is a smart mattress cover that fits on your bed, and keeps each side at the perfect temperature all night long.

By staying comfortably warm or cool, the Pod helps you sleep deeper and wake up feeling more rested.

Every morning, you get daily health insights and a sleep fitness score. However you sleep, the Pod by 8 Sleep adapts to you. Try it at 8sleep.com.

Sara Eisen (1:03)

Good Wednesday morning. Welcome to Squawk on the Street. I'm Sara Eisen with Mike Santoli and David Faber. We are live as always at post-night of the New York Stock Exchange. Carl's off today. Coming up this hour, Senator Elizabeth Warren with us following yesterday's grilling of Fed share nominee Kevin Warsh on Capitol Hill. We'll get her take on his performance. Of course, the state of the economy, private credit and much more. Plus, Alphabet ramping up its efforts to compete with Anthropic and OpenAI for enterprise customers. Details on new steps revealed just this morning.

It's another Supreme Court Opinion Day. We are awaiting a potential decision this hour on President Trump's authority to fire Fed Governor Lisa Cook. We'll bring you the headlines as soon as we get them, if we get them. But guys, we do have a lot of new data and new commentary about how the economy is fairing, given the rising gas prices, the rising oil prices. So we've been monitoring some of the commentary to see how consumers are doing and so far so good. I just wanted to bring you a few call outs. How about Capital One, okay? Credit cards, CEO on the call. This was the sort of most explicit acknowledgement of what's happening as a result of the war on the consumer. CEO says, the new conflict in the Persian Gulf represents a significant cloud on the horizon. If energy prices remain elevated for an extended period of time, that would be a real headwind for consumers, okay? But, so far, we've not seen any adverse effects on our portfolio, either in our credit or spend metrics. We continue to really feel good about not only our portfolio performance, but good for the credit outlook of consumers.

Why are you laughing?

David Faber (2:32)

Because we played this sound at 9 o'clock.

Sara Eisen (2:36)

So I do the macro pullouts from the morning.

David Faber (2:38)

I'm sorry, we played it because it was seemingly important. And to your point, it was one of the first times I think somebody's addressed it so clearly and also said it's a concern, but to your point, it's not yet being seen in the metrics.

Sara Eisen (2:51)

Yeah, I mean, you and Jim can talk about it, and then we can talk about it. Got it.

David Faber (2:55)

No, of course, and I'm happy to do that. So give me your take, Sara.

Sara Eisen (2:59)

I mean, the take is that so far so good. No adverse effects on the portfolio, credit or spend metrics. It's exactly what we heard from the regional banks last week. It's exactly what we heard from the big banks last week, the Citigroups and the JP Morgan. And it jibes with what we're hearing from consumer CEOs as well. How about United? I mean, we'll talk about United as a mover and what the jet fuel impact is going to be. But on consumer, here's what the CEO is saying right now. Demand has remained strong. We do anticipate that it will turn into some kind of elasticity event. Even if there's a 15 to 20 percent increase in fares, that is going to at some point drive less demand. We frankly have not seen it in our bookings yet. Bookings are really strong. So I think it's a similar kind of like, if this continues, you would expect there to be an impact. But so far, we haven't seen an impact.

Mike Santoli (3:46)

The counter is that it's early. I mean, there's no way that in six weeks, you're going to see wear and tear on credit card portfolios necessarily. What was interesting is that stock on the Reflex print after the close actually backed off because it was a reserve build. And then the commentary was like, look, no real change. And it is the place to look for it. As we've talked about the big banks, they have a premium customer base. It's not the place that you're going to see this stuff show up first. They cater to people with jobs and money to deposit at the back.