SOTS 2nd Hour: Stocks Bounce Back, Musk's DC Chaos, Live: Accenture CEO 12/19/24

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David Faber (1:00)

Good Thursday morning. Welcome to another hour of Squawk on the Street. I'm David Faber with Leslie Picker and Mike Santoli. We're live at Post 9th at the New York Stock Exchange. Sarah's off and Carl's out of here. He's on the move for the next hour. He's got a big interview actually. So he's going to go over to West Street, to Goldman Sachs' trading floor. And you can see the co-head of Global Banking and Markets will be among his guests. Speaking of markets, let's take a look at ours after that very significant sell-off yesterday. You can see we are rebounding, though already off the highs. Keep an eye on that 10-year treasury yield at 4.564. Leslie.

Leslie Picker (1:36)

Yeah, macro, big story today, of course. But there are some interesting idiosyncratic stocks to watch as well. We're 30 minutes into the trading session. Here are three big movers we are watching. Shares of Micron tumbling. The chipmaker beat profit estimates but gave weaker than expected guidance for the second quarter. We'll have more on the streets reaction. The state of Semi is following yesterday's sell-off. But currently, those shares down more than 16 percent. Shares of Darden Restaurants rallying, however, the owner of Olive Garden meeting earnings expectations and raising its full year outlook after adding the Tex-Mex chain, Chewy's, to its portfolio and reporting higher same restaurant sales at its major chains. Those shares up more than 14 percent. And shares of Accenture also jumping this morning up about 6.6 percent. The company beat earnings estimates thanks to strong demand for Gen. AI services. It's also raising its revenue guidance for fiscal 2025 And Accenture CEO, Julie Sweet, will join us first on CNBC to give us more details about her outlook for the next year.

David Faber (2:37)

For that, though, let's get to some economic data out just moments ago. Rick Santoli has it for us.

SPEAKER_6 (2:42)

Rick.

Mike Santoli (2:43)

David, this is a big day. Leading economic indicators for the month of November came in positive. Up 3 tenths of a percent. They have had 32 consecutive months without a positive number. We had one zero this year, but the last positive integer was in February of 22, and it was equal to the current 3 tenths. To find a bigger number, you're going all the way back to December of 2021

And on that, we see that interest rates, particularly that 10-year, making new high yields on the session, and should they close here, highest yield close is going all the way back to the end of May, and the yield curve is steepening to the tune of 25 basis points currently, also the steepest since the end of May. We'll call it about 7 months. And we also have November existing home sales hitting the wires. And for that, we go to Diana Olek. Diana?

SPEAKER_8 (3:43)

Well, Rick, existing home sales in November rose 4.8% to a seasonally adjusted annualized rate of 4.15 million units, sales up 6.1% year over year. That's a beat. The street was looking for a 2.5% gain from October. This count is based on closing, so contracts likely signed in September and October. Mortgage rates had fallen to an 18 month low in September, but then shot higher in October. And the supply of homes for sale, 1.33 million units, up 17.7% from November of last year. At the current sales pace, that is still just a 3.8 month supply. Six months is considered balance between buyer and seller. That pressured prices, the median price in November, $406,100, up 4.7% year over year, and 18% of sales went above list price. First time buyers gained some ground, 30% of November sales, up from 27% the month before. Slightly lower than a year ago though. Cash is still king at 25% of sales and investors pulled back. Just 13% of sales down from 18% in November of last year. And I do want to note that mortgage rates shot up yesterday after the Fed announcement, up 21 basis points to well over 7.13%.