SOTS 2nd Hour: Google’s Big Win, Jefferies’ David Zervos, & LIVE: Counselor To The Treasury Sec. Talks Data 9/3/25

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Sara Eisen (1:07)

Good Wednesday morning. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla. We are live from Post 9 of the New York Stock Exchange. David Faber has the morning off. As for stocks, are we regaining some momentum this morning, at least on the S&P 500, up a quarter of 1%. The NASDAQ doing better. So tech is leading today up 8 tenths of 1%. The Dow lags down 200 points. And Treasuries, some drama overnight, which we'll talk about with the long bond, but there's buying. So we've got a little bit of reversal in yields. They've calmed down the 30 year 4.9%. The two year yield low are 3.62%.

Today, a major clearing event for Alphabet after a court ruling helped the tech giant avoid a breakup. Top analyst Mark Mahaney tells us what is next for the company. And Treasuries, Joe Lavorgna will give us his first reaction to today's economic data. Tell us more about the Treasury's tariff plan. Plus, Fed chair contender Chris Waller speaking to CNBC earlier today will get reaction from another Fed chair contender, Jefferies David Zervos, right here at Post 9

Carl Quintanilla (2:06)

Let's get some jolts with Rick Santelli. Hey Rick.

Rick Santelli (2:10)

Hi, Carl and Dee. You are watching yields move lower on the curve. And that is primarily because job openings and labor turnover, known as jolts, comes in on the light side. Expecting a number close to 7.4 million. This is a July read. Comes in 7,181,000.

That will be the smallest job openings number going all the way back to these of 2020 Now if we look at factory orders for July, comes in exactly as expected at minus 1.3, which is actually the strongest number since it was positive in May at over 8%. There is a revision in the review. No revisions yet. Factory orders X trans up six tenths also exactly as expected. Now when we get to durable goods, these are final reads. We had mid month reads. So minus 0.6, positive 0.6, excuse me, remains positive 0.6. That was in the factory orders. Durable goods, minus 2.8, stays at minus 2.8. And what's interesting about minus 2.8 is that is a very weak number. What we've noticed is there's a big tug of war that was going on in durables. He had minus 2.8 on our final July read. If you look at June, it was minus 9.4. That was the worst going all the way back to April of 2020 Then prior to that, you had a whopping 16.5. That was the best since 2014 So the tug of war going on with tariffs and all the issues is finally starting to settle back just a bit. Now, if you look at ex-transportation, we lost a tenth from 1.1 mid-month to 1%.

And if we look at capital good orders, non-defense ex-era proxy for capital spending, it remains at 1.1%. And that's a pretty good number. That would be the best number going back to May when it was up almost 2%. And finally, if we switch from orders to shipments, 0.7. So about 3 quarters of 1%. And that's exactly where it was on the mid-month read. As I pointed out, we are now hovering around 422 in a 10 year. That would be down four basis points. 361 in a two year, that's down three basis points. And I know that everybody, of course, is talking about the long bond, whether it's in this country, in the UK, in Japan, because the yields are moving up. Many want to blame it on what's going on with the Fed and Lisa Cook. Listen, I've been looking at these markets a long time. It's an arbitrage with many of these other overseas 30 years. But 30 years isn't the benchmark. Look at 10 years. 10 years have been in a squashed range. Don't see any movement in there based on this notion of Fed independence loss. It's actually been quite in a consolidated range on a closing basis between 420 and 433 Sara, back to you.