SOTS 2nd Hour: Live from Pebble Beach - Citi, IBM CEOs; Plus: Goldman Sachs Chief Economist 11/7/25

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Carl Quintanilla (1:00)

Good Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla, live at Post 9 of the New York Stock Exchange, along with Sara Eisen. Joining us today from Pebble Beach, California at Citi's annual Tech & Media Conference. A lot to come from Sara in the next couple of hours. Meantime markets and about another 1% decline here on the NASDAQ, pretty milder on the S&P, but putting a tough week to bed with a little more losses. Ten year round for one, no jobs number today, of course, because of the shutdown. Speaking of which, Goldman Sachs Chief Economist, Dion Hantius will be with us anyway, with a warning about the economy, saying it's the worst the jobs markets looked in 50 years outside of a recession.

Sara Eisen (1:39)

And I've got a great lineup coming your way from Pebble Beach here over the next two hours. This is where you want to be at a tech conference when it's been a bumpy ride this week. You'll hear from Citigroup CEO, Jane Fraser, IBM CEO, Arvind Krishna, Altimeter Capital CEO, Brad Gershner, and Palantir CEO, Alex Karp. I mean, some of these companies at the center of the storm, questions about high valuations, whether all the AI spending is going to be worth it. What is the right price to pay? You'll hear of a lot of answers over the next few hours from some of these folks, Carl. Really at the center of it.

Carl Quintanilla (2:12)

It's very big names, Sara. Looking forward to that. Getting some consumer sentiment data. Let's get to Rick Santelli on this Friday. Hey, Rick.

Rick Santelli (2:19)

Yes, Carl. Just hitting the wires. Our November Preliminary View of University of Michigan Summit and the accompanying inflation indications. Headline number comes in light. 50.3. Very light. We were supposed to get a number 53 Our last final look was 53.6. 50 would be the weakest since, well, the all-time low, which was 50, and 50 came in at June of 22

That is the low. If you go back to the 70s, that's still the low. So very close. 52.3 on current conditions. Another huge miss. 52.3. Well, you're now going back to, once again, I don't have a number this low, and I go back to the late 70s. 52.3. That follows 58.6. Expectations, 49.0. That would be the weakest since, well, that one actually is on my charts. 47.9 would be the comp that would be May of 25, so not that long ago. And finally, let's look at the inflation indications. One-year inflation moved from 4.6 to 4.7. That would be the warmest since August when it was 4.8. September's number equals that at 4.7. And finally, 5-to-10-year. Here's maybe the only good news in this report. That's down from 3.9. We're expecting 3.8. 3.6 would be the lightest inflation rate, going back to August when it was 3.5. Not a lot of movement in the market. That surprises me a bit. You know, these numbers have been really soft from University of Michigan, and the inflation numbers have been rather on the high side. It seems as though many investors aren't paying as close of attention as they used to, but really is one of the few numbers we're receiving. If you look at the interest rate complex today, right now you have a two year 355 It closed last week at 358 You have 10s at 409 They closed yesterday and last Friday at the same yield of 4.08. So basically we're up one basis point. Carl, back to you.

Carl Quintanilla (4:28)

All right, Rick, thank you very much, Rick Santelli. Market is capping off a downbeat week for the major averages, led lower by tech, which we'll talk about in a minute. Joining us this morning, David Kelly, Chief Global Strategist over at JP. Morgan Asset Management, can help us kind of digest the week. And this Umesh print, David, I mean, we were just talking about how the stock market at record highs is not getting reflected in overall sentiment.