SOTS 2nd Hour: Nasdaq Record Highs, Musk’s Wealth Gains (Plus Putin Headlines), and Capri Sun-k 10/25/24

Sara Eisen (0:00)

Friday morning, welcome to another hour of Squawk on the Street. I'm Sara Eisen, here with Carl Quintanilla and David Faber. Live as always from Post 9 of the New York Stock Exchange. Stock looking to end the week on a high note. We're up three quarters of a percent right now in the S&P 500 If you look beneath the surface at what's working today, technology's right up there, so that's helping. Communication services, consumer discretionary. We've got a broad-based rally. Only materials and consumer staples are lagging. NASDAQ comp up one and a quarter percent right now.

NASDAQ's the only one of the big three that's positive for the week, but the S&P is trimming its losses for the week. Only down right now, two-tenths of a percent as this rally gets going here. again, fueled by tech, but broad-based cyclicals are playing as well. Take a look at Treasuries. They've been the story this week. Got some yield stabilization just in the last two days or so. The 10-year yield sits around 4.2. We'll talk about it. The two-year yield, 4 percent. So elevated on the week, but looks like it's not climbing further this morning. We're 30 minutes here into the trading session. Here are our three big movers we're watching. Shares of Capri holdings and tapestry moving in opposite directions after a federal judge blocked their merger. The latest there is Capri shares get nearly cut in half right now and 47 percent in just a moment. Also on the retail front, shares of Hoka and Uggparent, Decker's Outdoor on the move along with Sketchers, both company reporting sales gains. Look at Decker's up another 10 percent and then watching Tesla coming off its best day in a decade, second best daily performance ever and adding another 3 percent. But important to note, even after yesterday's gains, stocks on pace for a round trip month to date. We're going to talk what it all means for investors and for Elon Musk and his fortunes later this hour.

Carl Quintanilla (1:43)

Meantime, consumer sentiments out a couple of moments ago. Let's get to Rick Santelli. Morning, Rick.

Rick Santelli (1:48)

Good morning, Carl. Now, these are important because we had an October mid-month read. These are the October final reads. And they've all improved. We had 68.9 for the headline. It jumps up to 70.5, the best since April of this year. Current conditions, 62.7 mid-month, 64.9, best since June. If we look at what lies ahead, expectations, 74.1, best since September. And now let's go to the inflation numbers. And there's a surprise here as well.

2.7 on the one year, that was 2.9. Now 2.7 equals our September read. To find a lower one, you have to go back to December of 2020 And on the five to 10 year, it remains a 3.0. And by the way, that's the sixth 3 reading for 2024 If you had to summarize, good news on the one year inflation coming back to equal a month this year, but still on the low side based on history, but all three metrics a little bit better than expected. So we're going to watch the markets try to grapple with this a bit. It doesn't look like it's dinging. On the equity side, there's a lot of green. And of course, on the rate side, we see rates are a bit lower on the day. But on the week, take a step back. We're currently at 403 on a two year. That's up eight on the week. And currently at 418 on a 10, that is up 10 on the week. Now, if we look at one more thing, of course, the dollar index has been on a nice run based on interest rates. Many are going to continue to look at the close to see if it remains near term on a daily basis, but still rather lofty when you look at it based on the last month and a half. Sara, back to you.

Sara Eisen (3:36)

Okay, thank you, Rick. Summarizing the action this week in treasuries as well, which has been a big story on what's mostly been better news on the economy. You know, the IMF World Bank meetings got underway this week, where all the finance ministers and central bankers from around the world gather in Washington to talk about the world's issues. I'm hearing there was a lot of talk about tariffs, some nervousness around the election, and also just generally a global economy that is doing better than expected, thanks to the US primarily, but still feels a little bit lousy. Here's how the head of the IMF, Cristalina Gorgieva, summed up what they're talking about.

Kristalina Georgieva (4:14)