SOTS 2nd Hour: Goldman Chief U.S. Equity Strategist, Apple WWDC Takeaways, and McDonalds: Not Lovin it? 6/10/25

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Sara Eisen (0:47)

Good Tuesday morning. Welcome back to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber, live as always from Post 9 of the New York Stock Exchange. Stocks are higher again today after an up close yesterday. If you look at the major averages, we're up a little more than a tenth of a percent, so many rallies, but enough. Nasdaq outperforming. You do have big tech. Tesla rebounding. Dow's up about six points right now. Kind of a light day. We have CPI tomorrow and then wholesale inflation after that. As for treasuries and what we're seeing right now, there's buying across the curve, 10-year yield down to 4.44. We have a three-year note auction later, a 10-year tomorrow, and then the biggie on the 30-year auction on Thursday. People are scrutinizing these as sentiment indicators for the bond market overall. Utilities, industrials, financials, and staples are underperforming today. Energy is actually one of your best performing sectors right now, along with communication services and healthcare. Coming up this hour, Goldman Sachs Chief US. Equity Strategist David Costin joins us with his outlook for the market as the major averages flirt with record highs. Plus, Bob Iger on the record will bring you highlights from David Faber's interview with the Disney Chief following news that the company has come to terms with Comcast to buy out its Hulu steak. But first, we're 30 minutes here into the trading session. Here are three big movers we're watching. IBM announcing plans to build a large scale quantum computer by 2029 called IBM Quantum Starling. It will be based out of New York, have 20,000 times more operations than current quantum computers, according to the company. Smucker's under pressure after posting weak numbers and guidance, the company citing tariffs and changing consumer behavior as concerns. And then look at shares of KC General.

Those shares are popping after a top and bottom line beat, higher same store sales and strong guidance. On the call, executives said, quote, we're seeing good strength from high income consumers, those making over $100,000 a year. And then even on the low end, we're seeing that traffic is hanging in there. With smuckers, it's more of a, it's a tariff problem, it's a dog food problem, it's a snacking, not snacking as much.

Jim Cramer (2:55)

It's a write down on the hostess acquisition.

Sara Eisen (2:57)

The host and hostess is not performing well.

Jim Cramer (2:59)

I am never afraid to show my ignorance. So breakfast pizza, do you know anything about this with KC? What's going on here?

Sara Eisen (3:06)

Breakfast, no, it's very popular.

Jim Cramer (3:07)

Tell me about it.

Sara Eisen (3:08)

KC General, I don't, I'm not.

Jim Cramer (3:10)

I haven't experienced breakfast pizza.

Sara Eisen (3:11)

I can always eat breakfast pizza. You know I can eat pizza anytime.

Jim Cramer (3:14)

Yes, I do.

Sara Eisen (3:15)

But KC General has done a really good job catering to a younger consumer and staying on trend. We've interviewed the CEO before. It's found the sweet spot, unlike say a smuckers with hostess and lunchables, which are just not getting it done right now. But guys, my big barometer today of what we're watching, as far as how the economy is doing, is small business. Small business is the engine of the economy and we got a small business optimism survey and guess what? It perked up a little bit. Don't want to play too much into it and it definitely leans in the pro-Trump era, region in terms of small businesses, but it declined sharply on the back of the tariff announcements, confidence that is, and it's coming back a little bit. If you go through some of the components guys of small business survey and this is soft data, this is what they're responding to, plans to increase employment, down one from last month, so not a big drop off there. And in fact, we saw nice increases and plans to make capital outlays. Remember all the concern that small businesses are gonna pull back on spending because they're so worried about tariffs? Guess what? Came back a little bit. Economy to improve, 25% of small businesses say they expect the economy to improve and that was an increase from the last month. They even think it's a good time to expand a little more.