SOTS 2nd Hour: Tariffs Latest: Yields Jump, CEOs Speak Out, and More On How To Trade It 4/9/25

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Sara Eisen (0:58)

Good Wednesday morning. Welcome to Squawk on the Street. I'm Sara Eisen with David Faber and Mike Santoli. Carl's on assignment and we are live as always from Post 9 of the New York Stock Exchange. Stocks are trying for a big rebound. We've got another up and down day here. Take a look at the action. The S&P 500 is actually higher by 1 percent, which you wouldn't know by all the headlines flying around and the volatility. Technology is leading. We've got information technology up 2.5 percent. The stocks that are lagging, energy, real estate, health care and utilities. That's why the NASDAQ is, I would say, surging. Now 2 percent compared to where we've been and where we were. Keep in mind, it's still like 19 percent off the highs, but we are coming back today. A lot of the action is in the bond market. We're going to really dive into this, but let's just show you where treasuries are right now. They're selling off with yields higher. Third day in a row, we're going to talk about the dynamic because a lot of people are paying attention. It's become sort of the center of the action, but right now we've got a 10-year yield off the highs at 4.365 percent.

David Faber (1:57)

Yep, a lot more to come on that. Another volatile day of trading, of course, as well. We've got wall-to-wall coverage of what you need to know this hour. Eunice Yun is live in Beijing. She's going to have the latest on China's moves regarding tariffs. Angelica Peebles is tracking the big moves in pharma. As President Trump plans new tariffs for that sector, Phil LeBeau, he's got the airlines, of course, following that pulled guidance from Delta. But let's start with Rick Santoli, who is tracking that action in the bond market, talking a lot about the basis trade during the last hour as well. Rick, I know you've got some data for us as well.

Rick Santoli (2:31)

Yes, let's start out with the data. This is the February final for wholesale inventories. Mid-month read, up 3 tenths. It remains up 3 tenths. And up 3 tenths, well, up 8 tenths was January to give you a perspective. And the end of last year, it was minus 7 tenths. If we look at trade sales, this is a fresh number. Expecting up 8 tenths, buckle up. Multiply that by 3, 2.4 percent, up 2.4 percent. To find a higher number on sales, you're going back to March of 22 Very solid. And last month's minus 1.3 gets upgraded to only minus 9 tenths. And as David Faber pointed out, lots of action in the treasury complex. And by the way, 39 billion reopened 10s go for Auction 1 Eastern. There's an auction you don't want to miss. Yesterday's 3-year wasn't a good auction. And with today's movement, consider this. We settle at 430 We're currently at 436, up 6 basis points. You know what the high yield was? 451 Now, everybody out there is talking about liquidity. And some say we have a liquidity issue. Others say we don't.

I used to trade. This is an easy one. Liquidity, well, it's how many 30 seconds you need to move a certain amount of size in the market. The bigger that distance is, well, the less liquidity there is. So when you look at the ranges, that should smack you right between the eyes that with those type of dramatic moves in the last 10 hours, there is a liquidity issue, but there's not necessarily a liquidity crisis. David and the gang, back to you.

Mike Santoli (4:12)

Yep, hope we stay on that side of it. Thank you, Rick. Europe and China both announcing tariff moves this morning. Eamon Javers at the White House with more on what Europe is now doing. Hi, Eamon.