SOTS 2nd Hour: The Mag 7 Trade, Tesla's 'DOGE' Risk 02/13/25

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Carl Quintanilla (0:59)

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 Thursday morning again. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and Mike Santoli live today from Post 9 of the New York Stock Exchange. David has the morning off. Stocks are hanging in there quite nicely despite another hot CP or PPI report, another inflationary read that came in. Little disappointing on the upside. You've got strength in a lot of groups, materials, consumer discretionary, technology, financial staples, industrials, energy, utilities, and communication services. They're all up right now. The only ones that are down are real estate and health care. The S&P 500 up a quarter of a percent, adding to the weekly gains. The Nasdaq's up now more than 1% for the week. Treasury is also catching a bid despite that warmer CP or PPI report. And we are seeing yields come down a little bit from their elevated levels yesterday, though the 10-year note yield is importantly still above that 4.5 level, which we did break higher yesterday on the stronger inflation number.

Carl Quintanilla (2:08)

It's a very busy day in Washington, DC. We've got a house budget markup. We've got a White House appearance on tariffs, Prime Minister Modi of India, and this, Robert F. Kennedy Jr.'s final Senate confirmation vote to be at Health and Human Services set to begin at 1030 Eastern Time. We'll bring you the latest when we get that later this hour.

Sara Eisen (2:26)

And we've got a lot of movers, 30 minutes here into the trading session. Here are three that we are watching. Cisco in the green, beating estimates, reporting revenue growth for the first time in four quarters. Full year guidance also coming in above expectations. AI, a bigger part of that story.

Shares of Applovin, surging. The company which helps developers make apps for mobile devices, but is really now just becoming an advertising company. Beat on the top and bottom line, revenue up more than 40% from a year ago. Shares have now gained 1,000% over the past one year. And then Deere shares are under pressure. Earnings topped estimates, but were down sharply from a year ago. Deere feeling the impact of farmers renting equipment due to weaker incomes and higher borrowing costs. Guidance also pointing to more revenue declines. Deere down 3.4%, but it had been an outperformer on the year.

Carl Quintanilla (3:15)

Meantime, a developing story. We're watching this hour. The president set to announce reciprocal tariffs on countries that impose higher duties on US goods. Let's get back to Eamon Jabris with the latest. Morning again, Eamon.

Eamon Javers (3:27)

Yeah, good morning to you, Carl. I'm learning a little bit more now from White House officials on what to expect at the one o'clock event in which the president's going to announce reciprocal tariffs. One thing to watch for is, I'm now told that there's going to be a time delay of some kind on these tariffs. They're not going to go into effect today. There will be a date certain in the future. Unclear what that date will be. April 1st has been discussed as a possibility for the tariffs to go into effect. That is still TBD, so don't count on that particular date. But one thing is for sure, these tariffs are not going into effect today. This is going to be a presidential memorandum, not an executive order, so a little bit sort of lower on the totem pole of presidential authority here. The USTR is going to be tasked with identifying next steps in the reciprocal tariffs as part of this presidential memorandum that we're going to see today. We're going to expect to see a couple of new details in terms of exemptions in this announcement today. We're not really sure exactly what the exemptions are. I'm told there will be some slight exemptions to the tariffs. The president has been resistant to the idea of offering any industry group that asks for it an exemption to the tariffs. But he has put in some exemptions, I am told. We'll wait and see what the details of that are. A couple of CEOs have been in the building over the past 24 hours, I'm told. Not clear which ones have spoken to the president about tariffs, but the CEO of American Airlines and the CEO of Verizon, I'm told, have been on campus over the past 24 hours.