SOTS 2nd Hour: Tariffs Latest Ahead of Trump’s Remarks, Tesla’s Road Ahead, and Newsmax Shares Slump 4/2/25

SPEAKER_1 (0:00)

Don't just ride the index, seek to outperform it with FELC, the Fidelity Enhanced Large Capcore ETF. Unlike passive ETFs, FELC is run by a team of experts to adapt to market conditions and pursue upside potential wherever it's hiding. And while you get the potential outperformance of an actively managed fund, you can still buy and sell it on your terms, just like any other ETF. Discover FELC, the Fidelity Enhanced Large Capcore ETF, part of Fidelity's suite of active ETFs. Learn more at fidelity.com/f-e-l-c.

Before investing in any exchange traded fund, you should consider its investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus and offering circular, or if available, a summary prospectus containing this information. Read it carefully. While active ETFs offer the potential to outperform an index, these products may more significantly trail an index as compared with passive ETFs. Fidelity Brokerage Services LLC, member NYSC SIPC.

SPEAKER_2 (1:01)

Are you still quoting 30-year-old movies? Have you said, cool beans in the past 90 days? Do you think Discover isn't widely accepted? If this sounds like you, you're stuck in the past. Discover is accepted at 99% of places that take credit cards nationwide. And every time you make a purchase with your card, you automatically earn cash back. Welcome to the now. It pays to Discover. Learn more at discover.com/creditcard, based on the February, 2024 Nelson Report.

Sara Eisen (1:29)

Good Wednesday morning. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber, live as always from Post 9 of the New York Stock Exchange. Stocks are under a little pressure here. The S&P is down half a percent ahead of highly anticipated tariff announcements later this afternoon from the White House. The Nasdaq down a third of one percent. You do have every sector lower right now. Energy is actually getting hit the hardest, along with materials and healthcare. So tech is faring a little better. Financial is holding up the best though. Financials and utilities basically flat on the day. As far as big cap tech, it's kind of a mixed picture. You have Netflix and Palantir higher for instance, but some of the other big names like NVIDIA, the chips all lower. Take a look at Treasuries right now as we anticipate those tariff moves. We've got ADP, private sector jobs solid. Ten-year yields still lower. So bid for bonds continues at least in the long end of the curve. The 30-year and the 10-year and the five-year yields all lower.

We're below 4.1. We're about 4.15 right now, 4.15. We're 30 minutes here into the trading session. Here are some movers we're watching. Just hours away from President Trump's reciprocal tariff announcement. The administration providing few details on what to expect. The ETFs, though, tied to China, Mexico, Canada, and Europe, they're all trading lower. Shares of Tesla falling on the back of its latest delivery numbers, $336,000 in the first quarter, and that's down 13% from a year ago and below estimates. More on the road ahead for Tesla in just a moment. And then shares of Trump Media, they're falling after the company, which operates Truth Social, filed papers with regulators that would allow Trump's trust to sell up to $2.3 billion worth of stock.

Carl Quintanilla (3:09)

Carl. Decently busy morning for data. Let's get some factory orders with Rick Santelli. Morning, Rick.

Rick Santelli (3:15)

Yes, and notice that the yields are moving up and the equity markets are moving up as well.

And here's the reason why. Factory orders for February, expected to come out half a 1% higher, come out a little better, up 6 tenths of a percent with a nice positive revision in the rear view mirror from 1.7 to 1.8, 1.8 or 1.7. Both will be the best since July of last year, so we're holding on to some of that strength. Takeout transportation, still pretty good number, up 4 tenths exactly as expected and another positive revision. We gain a tenth on our January number from 0.2 to 0.3. Now, durable good orders, these aren't fresh. These are finals, which means they're taking mid-month and moving them just a bit. And in this case, the durable goods number that originally came out was up 0.9. This improves to up 1 percent. Stripout transportation, still holding nicely, and it remains at the mid-month level, up 7 tenths of a percent. And if we look at capital good orders, non-defense X-ary proxy for capital spending, it improved to tenths, but it's still negative. Minus 2 tenths originally reported minus 3 tenths. Finally, if you look at shipments, up 8 tenths, that's the only one that gave up a number a little bit in the wrong direction. Originally released in the mid-month, at 9 tenths now becomes 8 tenths. But in either case, that's a really powerful shipments number that remains the best in a little over a year on shipments. And those are the reasons you're seeing the market tick up just a little bit. And do remember, 415-ish is a very important number, about where we're at in 10s. If we are below that in the settlement, we comp towards October 18th. If we're above that, the comp gets extremely short. So we want to watch that as a good technical level on the closing areas of 10-year rates. David Faber, back to you.