SOTS 2nd Hour: TikTok SCOTUS Decision & Analysis 01/11/25

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Carl Quintanilla (0:31)

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 (0:46)

Good Friday morning, welcome to another hour of Squawk on the Street. I'm Sara Eisen with Mike Santoli, live at Post 9 of the New York Stock Exchange. David and Carl had the morning off. Stocks are rallying here, and adding to gains that we've seen all week, we're now up almost 3% on the week for the S&P 500, adding a full percent right now. NASDAQ's up 1.3%, so technology is back in the lead. You've got two sectors lower, utilities and healthcare. Nvidia is driving the charge here, Broadcom, Tesla, Amazon, Microsoft, Apple, all higher in today's session. Take a look at treasuries. We've seen yields now turn around. They're lower, 4.6% on the 10-year, 30-year, 4.8%. The buying of treasuries has been helpful for stocks this week.

Mike Santoli (1:27)

Absolutely, with some Goldilocks data up and down the past few days. We are keeping a close eye on the Supreme Court this hour, as the justices have been debating whether to step in and block a potential TikTok ban from going into effect this Sunday. We will bring you that opinion if and when it happens during this hour.

Sara Eisen (1:44)

We are 30 minutes into the trading session. Here are three big movers we are watching. JB Hunt slumping, the transportation company missing profit estimates with higher expenses and lower truck count hitting revenue. Novo Nordisk just mentioned in the red, its blockbuster diabetes and weight loss struggles. Zempik will now be subject to Medicare drug pricing negotiations. More on what that means straight ahead. And then Apple rebounds. After coming off its worst day since August 5th, stock is down about 11% from its most recent high in December and is the worst performing of the MAG7 names so far in 2025 As far as the overall market, you just said Goldilocks data, also this rally that we've seen in treasury yields. I think it was a little bit supercharged yesterday by Fed Governor Chris Waller, who was very dovish. I mean, even more dovish than he sounded a few weeks ago and certainly more dovish, I think, than the market expected when he hinted that first half cuts were firmly on the table for him if we continue to see good inflation data like we saw this week. Even I asked him about March as soon as March. Here's what he said.

Chris Waller (2:50)

January we need to kind of see what's going to happen. It's, there's, you know, the chair has said we're in really no rush to do things. We need to see a little more progress on inflation. This month was good, but we need to make sure we get through the turn of the year to make sure it continues. We'll have to wait and see. I don't think March could be completely ruled out, depending on what the data, but anything that kind of disrupts that, it's likely to push it back some. But it's, as long as the data comes in good on inflation or continues on that path, then I can certainly see rate cuts happening sooner than maybe the markets are pricing in.

Sara Eisen (3:27)

I asked for specifics, Mike. Three or four, he said, cuts this year. Wouldn't be out of the question for him. He said even if the data goes back to last year or like sticky inflation, he could then say, we're looking at two cuts. I mean, it's much more dovish than where the market is pricing.

Mike Santoli (3:42)

He's defining the dovish edge right now, I think, of the spectrum in the committee at this point. And the market did grab hold of it, though, because it was really gotten way on the other edge of pricing out cuts last week.

Sara Eisen (3:55)

Yes, there's also the question of what happens in fiscal policy and what happens with tariffs and whether they're inflationary or not. There's a whole debate about it. I thought it was interesting that Waller discounted it and said he doesn't think that they're inflationary. Also, Scott Bessend at his confirmation hearing also sort of dismissed the idea that they were inflationary. We are getting the Supreme Court ruling. Let's go straight to Eamon Javers in DC with a decision on TikTok, Eamon.