SOTS 2nd Hour: Eggflation, CNBC NBA Rankings, and DOGE’s Cybersecurity Tailwinds? 02/14/25

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Jim Cramer (0:44)

It's Jim Cramer here. You're listening to the opening bell of CNBC Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (0:57)

Good Friday morning, welcome to another hour of Squawk on the Street. I'm Carl Quintanilla with Leslie Picker, Michael Santoli here at Post 9 of the New York Stock Exchange. David Faber, Sarah Eisen have the morning off. Morgan, kind of keeping the cards close to the vest on this Friday, Dow is virtually unchanged. S&P is still hanging on to a gain for the week of more than a percent, but a lot of things in flux ahead of a long holiday weekend.

Leslie Picker (1:19)

And we're 30 minutes into the trading session. Here are three big movers we're watching this morning. Big tack in focus, Meta coming off 19 Actually, there it goes. It's positive of about 0.3 percent. It had had 19 straight days of gains, which was the longest daily win streak for any stock in the S&P 500 since 2000 So I believe this would be the 20th there. Airbnb, a top gainer, beating estimates on the top and bottom line with nights and experiences booked rising 12 percent from a year ago. Also topping expectation that stock up about 14 percent and applied materials under pressure. Revenue guidance came in below estimates. It said it expects escalating geopolitical tensions to weigh on sales of its chip making equipment. And for context, China represents the company's largest market share by revenue, a mat down more than 5 percent at this hour.

Michael Santoli (2:11)

Got some more economic data just crossing the tape. Rick Santoli has it for us. Here, Rick.

Eamon Javers (2:17)

Yes, Mike, indeed. This is the last of the data for the week in the form of December business inventories, expecting down one tenth. It's down two tenths of a percent. Now, something interesting about this, of course, is a fourth quarter number. It could have some bearing on GDP when you take away inventories. That's some production you lose. But what's interesting is, is that we've had several down two tenths in the fourth quarter of 2023

But to find a bigger month-over-month drop in business inventories, get this, that meaning looking for three-tenths or higher, you have to go all the way back to June of 2020, June of 2020 And maybe the big news today, the dollar index. It looks like it's going to close under 107 That hasn't happened since mid-December. We want to keep a close eye on that. And four and a quarter and a ten is down four basis points on the week. Four forty-seven and a ten is down three basis points on the week. We want to watch these yield closes on a Friday after big inflation data quite carefully. Leslie, back to you and happy Valentine's Day.

Leslie Picker (3:21)

Happy Valentine's Day to you, Rick. And thank you for flagging that. Appreciate it. Let's get right to Washington a day after President Trump announced those reciprocal tariffs, which could take effect in several months' time. Eamon Javers has the latest from the White House. Eamon.

Eamon Javers (3:36)

You know, Leslie, yesterday the president brought a small group of us into the Oval Office and took questions on every topic, you know, no restrictions whatsoever for nearly an hour, right? So we got a really unvarnished look at the way he sees tariffs. I wanted to play this soundbite for you because I think it shows how much he values tariffs. Take a listen.

Donald Trump (3:57)

Reciprocal tariffs, those two words. Reciprocal makes tariffs really fair.

Tom Flocco (4:05)

There would be no exemptions, right?

Ben Reitzes (4:07)

It would be all auto imports?

Donald Trump (4:08)

No exemptions, no, because you don't need to.

Jim Cramer (4:11)

With reciprocal, you don't need to.

Eamon Javers (4:14)

So we know that a lot of industry groups and international partners have been lobbying this White House for exemptions. The president there, you heard him say, he doesn't see any exemptions in these tariffs, which will start to roll out after April 1st. You know, one of the really interesting moments in the Oval Office yesterday was the president describing sort of a layering cake effect of tariffs. He was talking about these tariffs going into effect in April, but also the additional 25 percent tariffs, if they go into place, on Canada and Mexico on top of that. Tariffs on pharmaceuticals in particular, on automotives in particular, above that. He kept saying over and above, over and above. So what you get is an impression of a president who wants to kind of stack layers of tariffs on top of each other as he singles out particular industries, singles out particular countries. And I think what we're going to have now, guys, is an open ended negotiating period as industries and countries try to get themselves off that list and cut side deals with the president. He sees himself as a deal maker in chief. He relishes that atmosphere. I think that's what we're going to see. He joked yesterday in the Oval that, you know, in addition to God and family, tariffs might be, you know, number four on the list of things he loves the most, guys.