SOTS 2nd Hour: Strong Jobs Drive Gains, Amazon & Apple Earnings, Plus: Live From Omaha 05/02/25

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Carl Quintanilla (1:02)

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 (1:17)

Happy Friday, good morning, and welcome back to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla. David Faber is on assignment. We are live from post 9 of the New York Stock Exchange. Stocks right now are higher. We're higher at the open, held on to the gains here. Up 1% right now, almost, on the S&P 500 Nasdaq's adding 8 tenths of a percent. We have earnings to get through, we have jobs data to get through. Jobs were mostly better than expected, which we'll talk about in just a moment. And the Dow's up about 348 points. As for Treasuries, in reaction to all the economic data, we've got a sell-off in bonds with yields a little bit higher on those firmer jobs numbers. Maybe rethinking the growth outlook a little bit here. The 10-year yield, 427 right now. The 2-year yield at the short end, it's selling also 375 You've got every sector higher right now, except for energy in the markets. And the best performers are the cyclicals, those tied to the economy, industrials, financials, healthcare, materials, all doing well. We are 30 minutes here into the trading session. Here are 3 big movers we're watching. Apple and Amazon, both under pressure on the back of their latest results. We're going to break down all the street reaction, what to do with the stocks in just a moment. Airbnb shares are also lower, issuing weaker guidance, pointing to, quote, softening trends in the US in Q2. Plus, fresh report cards out of Big Oil, Chevron and Exxon, both reporting profit declines amid a volatile time for oil prices. We'll talk to Shell, Carl, in the next hour.

Carl Quintanilla (2:44)

Meantime, even more data coming out in addition to the jobs number. Let's get back to Rick Santelli. Hey, Rick.

Rick Santelli (2:50)

Yes, Carl, these are March Reads on Factory Orders and our final read on durable goods data. Let's start out with factory orders for March, shall we? Expected up 4.5, comes out 4.3. And even though it's light to expectations, it's a monster of a number 4.3. That's the best since July 2020, almost five years. However, when you strip out transportation, boy, we go from 4.3 to minus two-tenths, minus two-tenths. So we could see that that had a huge negative impact. Now, let's go to durable goods. These are finals. 9.2% remains at 9.2. And once again, that's the best since July of 2020 Let's call it darn close to five years. But also once again, transportation is the strength of the day. You take that out, you're back to a goose egg, which is where it was mid-month, zero. And if we look at capital orders, non-defense, ex-air, proxy for capital spending, it held on to its up 1 tenth from mid-month. And if you switch from orders to shipments, it moved from 3 tenths mid-month to up 2 tenths mid-month. And this data really does show us that transportation had a pretty good march. But bringing that to the actual number itself, well, whether it was factory orders or durable goods, once aircraft was subtracted, the growth really dissipated rather quickly. Interest rates, well, let's just look at it on a week-over-week basis. At 375 in a two-year, you're now unchanged on the week, even though you're up a handful on the day. And on 10 years on the week, at 427, it's up three basis points on the week. Sara, back to you and have a nice weekend.