SOTS 2nd Hour: Fmr. Defense Sec. Talks Iran, Wall Street's Week Ahead, & LIVE: CBOE CEO 4/6/26

SPEAKER_1 (0:00)

At Janice Henderson, we strive to deliver better outcomes through insight-led investing, innovation for clients, and a partnership approach that's core to our identity. I'm Jessica Liancini, Head of Fixed Income Client Portfolio Management. I'm passionate about my role in investments. It allows me to partner with our clients, simplify fixed income, and support them in achieving better outcomes for their clients. Janice Henderson, investing in a brighter future together.

SPEAKER_2 (0:30)

Men are struggling with their mental health at some of the highest rates we've ever seen, but most aren't getting the support they need, and that needs to change. I'm Dr. Guy Winch, your host for Season 3 of The Visibility Gap, presented by Cigna Healthcare. This season, we're focusing on men's mental health, bringing together real stories and expert insight to explore the pressures men face every day, and why opening up can feel so difficult. Join us for the new season, wherever you stream your podcasts.

Sara Eisen (1:00)

Good Monday morning. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber. We are live as always at Post 9 of the New York Stock Exchange. Coming up on today's show, former Defense Secretary Mark Esper with us, as President Trump threatens Iran's energy and civilian infrastructure and reports swirl of a potential ceasefire framework. Plus, New Jersey Congressman Josh Gottheimer will join us after sending a letter to Anthropic CEO about a major leak of the company's source code warning about potential national security risks. And we'll talk to the CEO of CBOE about the growing popularity of options among retail traders and the rise of prediction markets.

Carl Quintanilla (1:37)

Let's get a busy week of data underway with some ISM services. Rick Santelli's got it. Hey, Rick.

Rick Santelli (1:43)

Yes, good morning, Carl. These are March for the ISM service side, 54 is the headline number. That would be the slightest, the weakest since just January this year when we were at 53.8. We were expecting a number closer to 55, sequentially lower than 56.1. Price is paid. We'd really rather have this go down. This is not only the 16th reading that is above 60 This one is above 70, 70.7, 70.7. We're expecting 67

This would equal where we were in October of 22 to find a higher number. You're going back to August of 22 Now let's look at new orders. Expecting a number right below 57 comes in strong, 60.6. That would be the strongest since Feb of 23, sequentially higher than 58.6. And finally on the employment side, and this is after we had the jobs report Friday with better showing on non-farm payrolls, comes in light, 45.2. Expecting a number at 51 Last look was 51.8. 45.2 would be the weakest going back to December of 23 So we do see prices paid moving the wrong way. Lots of weakness here on the service side. Interest rates, well, they're under a little bit of pressure. If you look at the maturities from 7 years out the 30s, yields a bit lower, slightly higher, twos and threes and fives. Sara, back to you.

Sara Eisen (3:20)

Okay, Rick, thank you very much. We're going to kick off the hour in the week with some breaking news here on the Trump accounts. So we can now officially confirm that Treasury has chosen BNY, Bank of New York Mellon, to manage the Trump accounts. It's also selecting Robinhood to help as well. It's a big deal because this was a competitive process. Part of the job here is designing and creating an app for people to track their accounts. Remember these Trump accounts. They're now law where anyone with a baby born after January of last year can apply starting this tax season, and there have already been millions of applications, to receive $1,000 in an S&P 500 index fund that kids can access starting at 18 years old. Treasury has been running this process to pick which financial institution will be able to manage them. And I'm told it was competitive, but in the end BNY won, and they will officially be contracted by the Treasury. There's no performance fees here. It's more just bragging rights and sort of soft marketing and also those contracting fees. And it kind of fits with the America 250 theme. BNY is America's oldest bank. It's founded by Alexander Hamilton. It was actually the first company listed on the New York Stock Exchange. BNY CEO Robin Vince telling us in part, this will help more Americans invest in our economy, strengthen US capital markets, and give more children a foundation for long-term financial security. That's what the administration's trying to do here.

Guys, the app should be live by July 4th, at least the accounts should be live. And I'm told it's not just going to be a sort of boring brokerage app. They're really trying to design it to get kids to learn and engage. Treasury Secretary Besson kicked off Financial Literacy Month this month. And this is the ultimate aim here, to bring people into the system, to teach them about the markets, to teach them about finance, to give them a stake, maybe to help fight the rise and the allure of socialism here by making them part of the system.