SOTS 2nd Hour: Goldman's Chief U.S. Economist, Ford Takeaways, & New Consumer Data 10/24/25

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Carl Quintanilla (0:52)

Good morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Leslie Picker, Michael Santoli at Post 9 of the New York Stock Exchange. Sara Eisen has the morning off, and Faber is on assignment. Record highs for the Dow, NASDAQ, and S&P this morning. A CPI comes in a 10th light, although headline year on year is about an eight month high, and yields have resumed their small climb higher, 10 years back above four. Today, Goldman's chief US economist, David Merical is with us, talk about this new clarity on the economy, even as the shutdown goes into day 24 Ford's on the move higher after an earnings beat, but that supplier fire is hitting guidance for the full year. Former CEO Mark Fields will be with us to discuss, and AI data center startup Crusoe, just raising new money at a $10 billion valuation with backers including Nvidia and CRM. We'll talk to the CEO about his plans to disrupt the AI ecosystem.

Leslie Picker (1:42)

But first, consumer sentiment data just crossing the tape. Rick Santoli has that for us. Hey Rick.

Michael Santoli (1:48)

Hi Leslie and Dee, just crossing the tape. These are October final reads. They'll replace the mid-month read. And the mid-month read of 55 deteriorates to 53.6. 53.6. That will be the weakest level going back to May of this year. If we look at the current conditions from 61 mid-month to 58.6, 58.6 will be the weakest going back to, you're going all the way back to July of 22, July of 22 On expectation, same, 50.3 and that is from 51.2, a big deterioration there. That will be the weakest going back to May of this year when it was under 50 Now let's get to the inflation data. The mid-month at 4.6 remains at 4.6. However, the 5-10 year read moves from 3.7 to 3.9, the warmest since June when it was 4%.

We see that yields are back up as Carl just pointed out and do keep in mind, but we settled at 401 last week on a 10, which means you're about unchanged for the week. We settled at 398 yesterday. We're up on the session. Same for 2-year, 2-year 346 last week up to yesterday. It was exactly at 346 So we're, excuse me, yeah, we're down a couple there as well. Maybe the most important feature continues to be that the CPI data was cooler than expectations. The initial market move was lower yields and higher equities, as it sunk in that were well above the 2% target. Rates came back, but we still see that the pre-opening equities held good and the final equity markets are also way in the green. Mike Santoli, back to you.

Michael Santoli (3:40)

Yeah, for sure, Rick, as a matter of fact, I think the S&P at the high for the morning. Let's get to Washington and a number of moving parts on the trade front. The president saying overnight he's terminating all trade negotiations with Canada ahead of a trip to Asia to meet with Chinese president Xi Jinping. Eamon Javers joins us with the latest on all of that. Hey, Eamon.

Eamon Javers (3:59)

Good morning, Mike. It's a cross-border fight between the United States and Canada over the words and legacy of Ronald Reagan today after President Trump objected to this ad produced by the province of Ontario using a Reagan speech on tariffs from 1987 In it, Reagan says, over the long run, such trade barriers hurt every American worker and consumer. Now, that provoked President Trump to lash out in a late night social media post calling the ad fake and saying, they only did this to interfere with the decision of the US. Supreme Court and other courts. Tariffs are very important to the national security and economy of the USA. Based on their egregious behavior, all trade negotiations with Canada are hereby terminated. And the Ronald Reagan Foundation issued a statement saying the ad used selective audio and video and misrepresents the April 25, 1987 radio address by Ronald Reagan. Ontario Premier Doug Ford responded to the president in a social media post of his own saying, Canada and the United States are friends, neighbors and allies. President Ronald Reagan knew that we are stronger together. God bless Canada and God bless the United States. No word yet from the White House on what the plan is now for talks between the two countries, which have been ongoing since Canadian Prime Minister Mark Carney visited the White House earlier this month. And guys, I should tell you that we went back and compared the edited version that was aired in this Canadian ad of that Ronald Reagan speech with the actual Ronald Reagan speech from April 25th, 1987 The ad did cut and splice some of the words of the president and rearrange the order of the words. But the parts of the radio address that they took out of the ad because it was too long are actually more critical of tariffs than some of the parts that they used in the ad. In the other parts of the speech that were not aired here, Reagan goes on to say that tariffs were part of the cause of deepening the Great Depression and saying that they cause American companies to be less competitive. So the president there, President Reagan, that is very critical throughout that speech of tariffs. Guys, back over to you.