SOTS 2nd Hour: Return of The Tariff Man, Mag-7 Now Lag-7, and Fundstrat’s Tom Lee Talks Stocks 03/11/25

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Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Carl Quintanilla (0:56)

Good Tuesday morning, welcome to another hour of Squawk on the Street. I'm Carl Quintanilla with Leslie Picker and Michael Santoli, live at Post 9 of the New York Stock Exchange. David and Sarah on assignment. Bulls hoping for a Tuesday turnaround. NASDAQ trying to get to work on that, up about half a percent. Some of the corporate guidance coming in a little bit soft, especially regarding travel, but it's not all red, and the tenure just around four and a quarter.

Leslie Picker (1:18)

Unfortunately, the movers were watching this morning, not experiencing that rebound. We're about 30 minutes into the trading session, and here are those movers.

Dick's Sporting Goods and Kohl's under pressure after disappointing guidance from both names. Dick's down about half a percent. Kohl's down about 15 percent. A similar story for the airlines. Delta shares dropping after cutting its profit forecast. American also slashing guidance, and Southwest lowering its outlook and announcing plans to charge a fee for checked bags for the first time. We'll dig deeper into the airlines later this hour. And Oracle under pressure after missing earnings estimates. The company also issuing weak revenue guidance. More on the streets reaction and the big tech trade coming up.

Carl Quintanilla (2:00)

Let's get some Joltz data just crossing the tape with Rick Santoli. Morning, Rick.

Rick Santelli (2:04)

Good morning, Carl. Indeed. If you look at the markets, you're looking at interest rates at the highs of the session and equity markets doing better. Why? Because job openings and labor turnover, known as Joltz, comes in better than expected. January read expected to be around 7.6 million, comes at 7,740,000.

Now, the good news is, of course, that this is a bit better sequentially than the slightly revised rear view mirror, which was 7.508 million. And that was the four-year low in terms of the opening's pace. So indeed, a bit of a bounce. We see that right now we're hovering at 423 in a 10-year. That's up a couple of basis points on the day. 390 in a two years up one basis point. And of course, this is all after the equity markets continue to experience a significant amount of volatility based on a significant amount of uncertainty with revisions to potential tariffs of the past, how it may look in the future. Market continues to grapple with some of these details. Carl, back to you.

Carl Quintanilla (3:14)

All right, Rick, thank you very much, Rick Santoli. Stocks, in fact, are rebounding a little bit after yesterday's drop, the Dow and the S&P with their worst day since mid-December, Nasdaq's worst day in about three years. That so-called fear index, the VIX, spiked into its highest level since December. Mike, what are you watching this morning?

Michael Santoli (3:32)

Well, we're in that zone of a correction of a sell-off where everyone's kind of looking at the same metrics and trying to figure out if they've gotten extreme enough, if it's gotten so bad it's good in terms of the force selling we saw yesterday afternoon.

Just how oversold a lot of the market is. The leadership of this downside has been the previous upside leadership, of course, which is the mega cap growth stock. So a lot of street commentary, Leslie, as you know, is trying to handicap where we are in this process of force repositioning out of the old momentum growth leaders. Most of the metrics say kind of almost done. Maybe it's getting mopped up right now. We did overnight, the S&P futures were down about 1% below where they opened today. So there was another attempt at breaking it and getting it down. Like, it wouldn't surprise me if we need to go and check out that level and just see if that one holds. The standard playbook says you don't want a tepid rally to start one of these days. All that being said, 10% corrections are kind of normal, but there's this abnormal mix of things I think feeding into this, which is that momentum reversal at the same time. You're talking about the cyclical trade is getting compromised by the recession fears and, obviously, the global situation where other cyclical stocks in other parts of the world are taking up the slack from ours. So I would argue that a lot of this has been the repositioning move, but nobody sees a moment of where an all clear is going to be declared, right? Because we are still dealing with more tariff noise. We are still dealing with this effort to essentially say we're not playing for near-term economic acceleration.