SOTS 2nd Hour: Jobs Report & Big Tech Breakdown, PLUS: SEC Chair, Goldman’s Chief Economist, & Atlanta Fed President Bostic 8/1/25

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Sara Eisen (0:51)

Good Friday morning, welcome to Squawk on the Street. I'm Sara Eisen with David Faber. We're live, as always, from Post 9 of the New York Stock Exchange. Carl's off today. Stocks are under some pressure for a change. We've got an S&P down now, accelerating those losses, almost 2%. Combination of new tariffs, got a weaker jobs report all in the mix. The Nasdaq down 2.3%.

Amazon is really the story here as well.

David Faber (1:16)

It's August, I mean, always August, just every time we get volatility.

Sara Eisen (1:20)

Well, we had a lot of news, we got a lot of news. Take a look at Treasury's also big time rally today. After a weaker jobs report spurs bets that the Fed is going to cut now in September. We'll get two cuts by the end of this year. We'll talk about it. We've got the perfect guests ahead this hour. Atlanta Fed President Rafael Bostic joins us exclusively to talk about today's jobs number, the Fed's decision this week and how the latest tariff news is impacting the inflation outlook. Plus, we will speak with SEC Chair Paul Atkins as the Securities and Exchange Commission debuts what it's calling Project Crypto, really important speech he gave last night. We'll also break down Amazon and Apple, two tech names driving the action today on the back of earnings, both lower, but that 7% slide on Amazon is really weighing on the Nasdaq.

David Faber (2:04)

Yeah, of course, as is potentially that jobs number as well that crossed at 830 Speaking of, we got more economic data just crossing. Rick Santelli has that for us.

SPEAKER_6 (2:13)

Rick?

Rick Santelli (2:14)

Yes, David. Let's start out with June construction spending down four-tenths of a percent. We're expecting an unchanged number. That would equal last month with a revision, which equals down four-tenths now. But you have to go to March to find a bigger drop in construction spending. ISM on the manufacturing side, the headline number comes in light at 48.0. That means it's the fifth consecutive number in contraction territory, and that would come to, well, 48.0. You have to go back to October of last year to find a lower number. Prices paid moving down, but that's a good thing. 64.8, that would be the lowest since February at 62.4. Good news there on new orders. 47.1, definitely light. 47.1 would be the lightest, well, just since last month, because the number has been now the fifth consecutive month, also under 50 Employment, kind of late after today's number. Employment comes in at 43.4, so it was kind of correct. It's well below 45 in the rear-view mirror, well below expectations. Now, let's look at what's going on with University of Michigan sentiment, shall we? If we look at the headline number, this is a final read, so we go from 61.8 to 61.7, no big change. If you look at current conditions, here's a big change, from 66.8 to 68.0.

That'd be the second best reading of the year outside of January at 75 and change. If we look at what's going on on the expectation side, 58.6 now jumps up to 57.7.

That's a solid number, and it's still well below 58.6, but it's, I'm sorry, 57.7 is on the light side, of course, and that would be the weakest level of just since, well, since March. Finally, inflation, maybe the most important aspect at the University of Michigan. 4.4 becomes 4.5 on the one year, and there's a 2.10s drop on the five to ten year, from 3.6 to 3.4. That would be the second lowest reading of the year outside of January, where we started at 3.2. So we see that that's going to potentially fuel a little bit more, maybe, downside. I could sum up the morning pretty easy, everyone. If you look at May, non-farm, it was 144 before revisions, 19,000 now. If you look at June, it was 147,000 after revision, 14,000. That combination of mine is 258 That was the biggie. Sara, back to you.

Sara Eisen (4:47)