SOTS 2nd Hour: Shutdown Day 3 - JPM Asset Management's Top Strategist, Goldman's Chief Economist Talk Impact + A Rare Apple Downgrade 10/3/25

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Carl Quintanilla (0:52)

Good Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Leslie Picker, Mike Santoli, live at Post 9 of the New York Stock Exchange. Sara Eisen and David Faber have the morning off. All time high, number 31 for the year is in the works. NASDAQ all time high as well. Yields are creeping a little higher this morning. Ten year is back above 41 Today, a rare downgrade for Apple. We got the man behind the call here to tell us why he put his cell rating on the tech giant. A new report says Nvidia's Chief Jensen Wong frustrated with delays over its chips deal with the UAE. We've got a shareholder to discuss how important that market could be for the company and the stock. And the government shutdown means no jobs number today, but Goldman's Jan Hatzius still with us. He'll give us his latest take on the economy, talk about what data he is looking at in light of the shutdown.

Leslie Picker (1:39)

And speaking of data, we are getting some breaking economic data right now. Not the jobs report, but Rick Santoli has that for us, Rick.

Rick Santoli (1:47)

Yes, ISM services, we had the PMI services and they were sequentially mixed, but they were still about 50 Here's a September read, 50 on the nose for the headline. That happens to be the weakest actually since May of this year, when we had our sub 50 reading, the only one of the year at 49.9. And obviously, it's sequentially lower than our last look for August, which was 52

On the price is paid, well, it's sequentially higher, but this is one of the components we'd rather have lower. 69.4 follows 69.2, warmer than expected as well. We're looking for a number closer to 68 On the new orders front, 50.4, big miss here. We're looking for a number somewhere around 54.5. Our last look was at 56 This is the weakest, well, since July of 25, also the last time we were under 50 And finally, if we look at the service employment picture, especially on a week where we're void of the BLS report, but we had a weak ADP report, comes in at 47.2. So this is interesting. It's the only reading here that's below 50, but it's better than we expected, and it's sequentially higher than our last look at 46.5. The market's somewhat nonplussed on the interest rate side, but once again, the equity's holding their gains. If we look at interest rates from a weekly perspective, which I think is important, right now at 409, we're down nine basis points on the week in tens. At 355, we're down nine basis points on the week in two year as well. Mike Santoli, back to you.

Mike Santoli (3:25)

All right, Rick, thanks so much. We have day three of the government shutdown. The Senate expected to vote again today on the same proposals that failed Tuesday and Wednesday. Let's get to Emily Wilkins with the latest from DC and whether we should expect any different.

Emily Wilkins (3:41)

Mike, I mean, at this point, the short answer is no. We should not expect any different today. At this point, there just doesn't seem to be a way out of this government shutdown. So what we're expecting to see later this afternoon, the Senate will come back, they will have a vote again, not expecting it to get to those 60 votes. But of course, the one thing we are going to be watching for here, do you have any Senate Democrats who crossed the aisle to join Republicans? Last time we saw this vote happen, there were three Senate Democrats who do that. Obviously, now we've seen the White House go ahead with the number of cuts in terms of energy programs, in terms of grants for transportation to these blue states. Of course, we've missed job numbers now, and the impacts of the shutdown are only going to get worse. That of course will put pressure on Senate Democrats. We'll see if any more of them go with Republicans today.