SOTS 2nd Hour: Goldman’s Chief U.S. Equity Strategist, Palantir’s Blowout Quarter, and The Healthcare Playbook 8/5/25

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David Faber (1:08)

Good Tuesday morning, welcome to Squawk on the Street. I'm David Faber with Leslie Picker and Mike Santoli. We're live from Post 9 at the New York Stock Exchange. Carl and Sarah have the morning off. Let's give you a look at the markets, a half hour into trading, and we'll also have you look at Treasuries. There you can see the yield up ever so slightly on the tenure at 4.2%. The S&P barely in positive territory with the NASDAQ, a more significant gain. Coming up on today's show, Goldman Sachs Chief US Equity Strategist, David Kostin, will join us right here at Post 9

We'll get his takeaways from earning season so far and where he thinks the market will head next. Plus, we're gonna talk Palantir. That stock is at record highs as the company hits a billion dollars in revenue for the first time. Also lifts guidance thanks to what else? AI.

Leslie Picker (1:53)

But first, breaking economic data just crossing the tape, Rick Santoli has that for us. Hi, Rick.

SPEAKER_6 (2:00)

Hi, Leslie. Indeed. We had S&P Global Final Reads for July. Now we're having ISM Service Sector PMIs. These are fresh, first time look at July. Expecting 51.5-ish on the headline comes in light. 50.1, sequentially lower and light expectations. The week is since, well, just a couple months ago, May of this year. If you look at prices paid, it's going in the wrong direction.

69.9, following 67.5, well above expectations. 69.9 will be the highest rate of prices paid since October of 22 Look for yields to pay attention to that, potentially. And new orders, 50.3, 51.3 in the rear view mirror, so that's sequentially light. Lightest since a couple months ago, the month of May. And finally, the employment index, 46.4 follows 47.2. 46.4 will be the weakest since March of this year. So these numbers do disappoint on the service sector, but instead of paying more attention to the prices paid's inflationary implications, it's the weakness that seems to be taking the market, as yields are moving down just a bit, but I don't want to over emphasize how tight these ranges are. Basically, 4.21 and 10's, we've seen it a lot the last 72 hours. Mike, back to you.

Michael Santoli (3:27)

Sure have, Rick. Thank you very much. Let's turn now to the latest on trade. President Trump commenting this morning on Squawk Box about negotiations with China and India. Megan Casella has the highlights. Hi, Megan.

Megan Casella (3:38)

Hey, you guys. Good morning. So quite a newsy interview, especially on the trade front this morning. The president really touting the deals that he struck with the European Union, with other countries as well, but he also talked about one country whose tariff rates might change before that implementation date on Thursday, and that's India. Take a listen here.

Donald Trump (3:56)

So we settled on 25 percent, but I think I'm going to raise that very substantially over the next 24 hours because they're buying Russian oil, they're fueling the war machine, and if they're going to do that, then I'm not going to be happy.

Megan Casella (4:10)

So not appearing to have settled guys yet on what rate he will be lifting that 25 percent level to, but clearly going to be something substantial for a pretty sizable US trading partner. He had said that the India tariffs would take effect on Thursday. The secondary tariffs against Russia, he had previously said, would take effect on Friday. So we are expecting some final movement and something to be signed to that effect later this week. The president then also spoke about China. He said things are going well there. He believes they have the makings of a deal, but he didn't go so far as to guarantee a meeting between him and Chinese President Xi Jinping later this year. Take a listen to that.