SOTS 2nd Hour: Palantir CEO, Plus: Trump-Xi Trade Call, Broadcom Expectations 6/5/25

SPEAKER_1 (0:01)

Want to quickly create and execute trading strategies to help keep up with the markets? With Fidelity Trading Dashboard, you can access live data, advanced charting, portfolio insights, and automated alerts, all on one screen. We streamlined the trading experience so you can build and place trades better. Your Fidelity Trading Dashboard is ready now for free. Visit fidelity.com/tradingdashboard.

Investing involves risk, including risk of loss. Fidelity Brokerage Services LLC, member NYSE SIPC.

SPEAKER_2 (0:31)

Are you still quoting 30-year-old movies? Have you said, cool beans, in the past 90 days? Do you think Discover isn't widely accepted? If this sounds like you, you're stuck in the past. Discover is accepted at 99% of places that take credit cards nationwide. And every time you make a purchase with your card, you automatically earn cash back. Welcome to the now. It pays to Discover. Learn more at discover.com/creditcardbased on the February 2024 Nelson Report.

Sara Eisen (1:05)

Good Thursday morning. Welcome back to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber, live at Post9, as always, from the New York Stock Exchange. Take a look at stocks this morning. We are breaking the wind streak under a little pressure, nothing extreme, down a quarter of a percent on the S&P 500 Downs down 142 points. And the NASDAQ, again, tech is outperforming here. It's helping. NASDAQ down only 2 tenths of 1%.

Word of the Trump she-call, not doing much to turn things around, but stocks ran up into it. As for treasuries, take a look at how we're doing today. We've got the big jobs report tomorrow. There's more buying of treasuries, and yields have come down this week. 435 is your yield on the 10-year. We've had some softer economic data, which we'll talk about. And that's leading to lower yields. The two-year, the rate policy-sensitive one, 3.86%. Today, Palantir CEO Alex Karp joins us in a first-on CNBC interview from the sidelines of his company's artificial intelligence platform conference as the company pushes back against criticism about collecting data on Americans and the stock sits at record highs. Plus Broadcom trading at record levels ahead of results tonight after the close. We're going to talk about what's at stake in that report.

David Faber (2:18)

All right, first we have some breaking news. It's from Washington, of course. The news is that there was a phone call between President Trump and China's Xi Jinping. We learned it from the Chinese side. Let's get to Ayman Jabber's, of course, see what else, if anything, we've learned in the last hour or so since we first heard about the call. Ayman.

Ayman Jabber (2:35)

David, no confirmation from the White House on this call. And I can tell you that no human being that I can physically get to in the West Wing is able to confirm this. They're all saying no updates to offer right now. Obviously, you know, we can't just walk in the Oval Office and check and see who he's on the phone with. So it's possible that that call has happened as the Chinese side has said here. Take a look at the Chinese statement.

It doesn't give us much in terms of guidance on the Chinese side. Just saying President Xi Jinping is on a phone call initiated by US. President Donald J. Trump. So to parse the nuance there, you know, important potentially that the Chinese are the first out of the gate to confirm the existence of this call and also to say that the call was initiated by President Trump. Xi Jinping, very sensitive to protocol and sort of manners of how things are rolled out. The idea that this is a call that was initiated by the US side, clearly important for the Chinese to get into their statement, saying that they're sort of being magnanimous or generous in taking the call from President Trump. Now, we'll wait to see what the White House has to say about that. And it's not clear whether that call is still ongoing or not, if it has happened at all. My understanding, going back years, is that calls, presidential calls with Chinese leaders have been very long in the past because there's often an opening speech that both sides need to make to sort of lay out their position at the top of the call. That's all scripted and needs to be gotten through. And then there's the issue of consecutive translation back and forth as each side works through the translation on what each leader has said. So this can be a very long process. So it may be the case that all of that is still ongoing right now. We just simply don't know from the US side, guys. But obviously this has been very closely watched. And the question is not just the existence of a call but the content of a call. Can a call between these two leaders move these countries off of the talking points that they've been on for weeks now and actually get to a deal? Or are these situations in terms of trade just intractable? And no matter what kind of a call you have, you can't really move the underlying dynamic. We'll wait and see what the White House has to say if they say something later this morning, guys.