SOTS 2nd Hour: Eli Lilly Shares Slim Down, Chip on Trump’s Shoulder, Exclusive: ConocoPhillips CEO 8/7/25

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Carl Quintanilla (1:09)

Good Thursday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Leslie Picker and David Faber. Live at Post 9 of the New York Stock Exchange, Sarah Eisen has the morning off. Market enjoying a nice bouncer at the open, 63.85 as we look for sectors, almost all of them green. In fact, only healthcare is in the red, and we'll get to Lilly in a moment. Breath, very positive, almost three to one here at the NYSE. Coming up on today's show, Marcy Frost, the CEO of CalPERS with us, which has more than half a trillion under management. She tells us where she's putting some money to work. Plus, the CEO of ConocoPhillips joins us fresh off earnings with a read on global energy demand. And then the president calling for the CEO of Intel to resign as he lays out big tariffs on chips, with some exceptions. We'll get to details straight ahead.

David Faber (1:54)

First, let's get some economic data that's just crossing. Rick Santelli has it for us.

SPEAKER_6 (1:58)

Rick?

Rick Santelli (1:59)

Yes, David, we're looking at post sales, sales and inventories. On the sales side, this is a fresh June number. Expecting up a 10th comes in stronger than expected. Up three-tenths, that's the biggest trade sales month over month change, going back to March of this year, when we were up eight-tenths. And the high water mark was February, when we were up 2%, 2%.

And we all know that's most likely anticipation, getting in front of some of the issues that ended up coming out from Liberation Day and the pull forward. On the inventory side, this is a final read, which means the mid-month read, which was up two-tenths of a percent, gets downgraded to only up one-tenth of a percent. Up one-tenth of a percent equals, where we were in April to find a higher number. You go into March when it was up three-tenths, the high water mark there, was January for this year, where it was up eight-tenths of a percent. We look at interest rates today and we see a 422 in tens. Basically, for the last three sessions, we closed a 422 on Jobs Friday and we've been hovering in a low 420s. Not a lot of volatility. 30-year bond auction at one Eastern 25 billion at 1130 Eastern historic four-week bill auction to the historic amount of $100 billion. Carl, back to you.

Carl Quintanilla (3:24)

All right, Rick, talk soon. Rick Santelli, let's get the latest on trade this morning. The president did announce 100 percent tariffs on chips unless companies build in the United States. A number of chip names moving higher on the exemptions part of that news. But Intel is sitting this one out after the president called for the company CEO, Lip-Bu Tan, to resign, calling him, quote, highly conflicted. That comes after Republican Senator Tom Cotton questioned his ties to China. Let's bring in Megan Casella from Washington with the latest.

Ryan Lance (3:53)

Morning, Megan.

Megan Casella (3:54)

Hey, good morning, Carl. That's right. A lot for the chip sector to navigate this morning. But first, let's start with Intel. Here was the president's exact wording on the Intel CEO. He said, the CEO of Intel is highly conflicted and must resign immediately. There is no other solution to this problem. So some harsh words there from the president. We have not yet heard from Intel publicly commenting on this one. But as you said, it does come after Senator Tom Cotton and Arkansas Republican claimed that the Intel CEO controlled dozens, he says, of Chinese companies, including eight that he says had ties to the Chinese People Liberation Army.

So much more to watch there with the president pressuring this CEO. Obviously, you saw the shares, you see the shares under pressure this morning and also coming at the same time as that other big chip story. And as you mentioned, the exemptions part of this is going to be the key here. So take a listen to exactly what the president said last night.