SOTS 2nd Hour: Stocks Gain, Earnings Wrap-Up, Plus: Bank of America Chairman & CEO 04/15/25

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Market moving insight and analysis. Join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street.

Sara Eisen (1:14)

Good Tuesday morning and welcome to another hour of Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber. We are live as always from Post 9 of the New York Stock Exchange. How are we doing with stocks? Not too shabby this Tuesday morning. So far, the S&P 500 up a little more than a half a percent. The Nasdaq up 610, so tech is leading the charge. The Dow is up 172 points. Only group that's lower right now is healthcare. Everybody else up. Financials are best performers right now. We've got some more bank earnings to get through. Energy is also coming back strong, up more than 1% as a sector. Take a look at Treasury. Source of the drama last week. Things have calmed down, at least yesterday. Today, we're seeing slightly higher yields. 4.37 on the 10-year, 2-year elevated at 385 We are 30 minutes here into the trading session. Here are three big movers we're watching. More results out of banks as mentioned. Bank of America and Citi reporting. Bank of America CEO Brian Moynihan calling out a resilient consumer in the release. He's going to join us this hour in a first on CNBC interview. You do not want to miss. We're going to dive a lot deeper into what they are seeing. Johnson & Johnson topping earnings estimates, boosting their outlook, not helping the stock though, which is down a little more than 1%. We're going to break those numbers for you in a moment. And then HPE shares are surging. Elliott Management taking a billion dollar stake in HPE. That's according to a source familiar with the matter. Stocks down more than 25% year to date. But guys, wanted to dive into inflation today because it was quite a quiet data release. We did get import prices and that's very much in focus because A, it's an inflationary input and B, a lot of people think they're going to surge because of the tariffs, obviously. It's what we pay on imports coming in. We got a really good surprise there as far as lower inflation. A negative number, negative 0.1. This is of course was taken in early March before the tariffs started coming in. But I think it's more proof that heading into this tariff wave we're seeing, inflation has looked good, down. When I say good, I mean weaker. If you take out energy, because we know energy petroleum was a weight on prices during the month, it still is pretty flat. 0.1% increase in import prices. I say it also because it's the third piece of evidence we've seen, CPI, PPI, and now import prices, that the setup into tariffs is one of lower inflation. And that's good, because one of the worries was that we were going into this tariff environment at a high point of inflation or a phase where inflation was starting to pick up. Not seeing evidence of that. So that's a good thing. The question is, what now? And I'll just show you one chart from the Bank of America Fund Manager Survey that they put out, which was very bearish overall on the economy, on stock exposure.

This is the fund managers expecting higher global inflation in blue. You can see the spike there on the back of the tariff announcements and then the percentage of those fund managers, Carl, that expect short-term rates to be higher, that's not going anywhere because that comes along with expectations of a weaker economy. So, so far it's in the surveys, right? University of Michigan, consumer confidence, fund managers, everyone's expecting higher inflation. We haven't seen it yet, but we also start, haven't really starting to see the impact of the tariffs.