SOTS 2nd Hour: May Jobs Report: w/JPMorgan’s Chief Strategist, Goldman’s Chief Economist; Plus: Trump vs. Musk Latest 6/6/25

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Sara Eisen (1:06)

Good Friday morning, welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla, David Faber, live as always from Post 9 of the New York Stock Exchange. Stocks are going strong this morning after better than expected jobs report. A lot to get into there, but we're looking at a more than 1% gain here for the S&P coming back. The Nasdaq up 1.3%, so technology leads, and the Dow is up 552 points. As for Treasuries, take a look at the reaction to jobs. They're selling with yields higher as the odds go down for two rate cuts this year. The 10-year yield, 4.47%. Coming up this hour, Council of Economic Advisers Chair Stephen Miran joins us. First comment on the jobs report from the White House and how the latest on tariffs and trade are factoring into the economic picture. Plus, the latest on the Trump-Musk feud rocking Wall Street and Washington. We'll talk about the impact on Tesla investors, on the tech community, but right now we've got every sector higher in the S&P 500

Palantir is actually leading the way after a sell-off. Tesla is higher by 3.6% after yesterday's squirmish left Tesla down double damages. Let's talk about jobs because on one hand, the number was better than expected. Yeah. Right? Overall, got a better headline number than we were looking for, for the month of May, more than 130,000 jobs. Unemployment rate stays at 4.2%. But look where the jobs are. There's a lot of moderation here beneath the surface. Healthcare was the big contributor, more than it's been on average. 62,000 jobs added. Leisure and hospitality, very strong. That was a lot because of restaurants. But we've also heard some bullish commentary lately from the hotel. So maybe not so surprising and social assistance. Look at where the jobs weren't. And I highlight that because you're starting to see the tariff impact and also doge, right? Federal government, federal government lost 22,000 jobs. That was the most since 2020 Manufacturing was a job loser this month, down 8,000 jobs, retail trade. So as you can see, you're starting to see the industries that we've been talking about that are dealing with higher costs and higher tariffs. And David, the other sort of moderation, weaker points in the report, 95,000 downward revisions to the prior two months. Participation is at a three month low, participation in the labor market. So these are things, it's good that we got an overall better number and better wages too. But beneath the surface, economists are saying things are definitely moderating.

David Faber (3:30)

Yeah. And what do you make of the revisions? I don't know, Jim seemed to think they were fairly significant and or at least get at the underlying data in terms of whether it's even reliable at this point.

Sara Eisen (3:39)

Well, 100,000 revisions is a lot because we only grew May by 139,000, right? So if you strip out the revision like that on this month, it would be pretty significant. I just showed a chart of workers for part-time workers, which grew in the month for economic reasons because they couldn't get a job and that's a cautionary thing to watch. Watch that spread, right? Because more part-time workers and fewer full-time workers is a sign of weakness.

Carl Quintanilla (4:06)

Temporary help down 20, not good. Ren Mac points out that the number of unemployed because they quit is down to 9.8. That's a cycle low as we now are getting the sense that consumers are a bit nervous to quit their jobs.

Sara Eisen (4:19)

And those are some of the parts of the fabric, right? Which lead to an overall weaker number.

It reminds me so much of my conversation with Fed Governor Adriana Kugler yesterday. She was kind of surprising, guys, as a hawk. She's worried about inflation. She's not as worried about jobs. I say surprising because she comes from the labor market. So I would think she'd be a little more cautious about some of the cautionary signals in jobs. But no, she's concerned about inflation. Listen to what she told me.