SOTS 2nd Hour: Treasury Sec. On The Hill, CPI Breakdown, & Musk’s Mea Culpa 6/11/25

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Sara Eisen (0:44)

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 having another up day. It's a small rally given some of the big catalysts today, like word of the US-China trade deal, more benign inflation reporting. The NASDAQ's up 2 10ths of a percent. Healthcare, actually the leading sector in the S&P right now. Some of those names coming back. Information technology, consumer discretionary, all doing well. It's materials, staples and industrials that are negative in the S&P. As for treasuries, reaction to the CPI report coming in softer than expected, leading to a further rally in treasuries with yields lower, especially that policy-sensitive two-year yield below 4%. Odds go up of a second rate cut this year. Today, Goldman Sachs chief US economist will join us with his first take on the morning CPI print and how it could factor into the Fed's rate path. Plus, Voyager Technologies, sometimes called the Berkshire Hathaway of space, getting ready to make its public debut right here at the New York Stock Exchange. We're gonna talk to the CEO ahead of the first trade.

Carl Quintanilla (1:50)

Got some breaking news out of Washington this morning. The Treasury Secretary gets set to testify at House Ways and Means after just returning from those trade talks in London. Let's get to our Eamon Javers in Washington with the latest. Morning, Eamon.

Eamon Javers (2:01)

Yeah, good morning to you, Carl. Treasury Secretary Bessent may be a little bit jet lagged here this morning in Washington after flying from London after yesterday's meeting with the Chinese delegation. We saw a post on social media this morning from the President, and there you see a live look in at the Treasury Secretary arriving in the House committee room there. We will hear from him, presumably, his assessment of what happened in that session yesterday with the Chinese delegation. The talk's not over. We saw a post from the President on social media earlier this morning in which the President suggested that a deal of some kind has been crafted that has to go to the two leaders now, Xi Jinping and himself, in order to be ironed out. And you can bet that the members of this committee are going to press Treasury Secretary Bessent for his assessment of what that deal is. The President suggested that there were some mining agreements, some magnets agreements, rare earths, and also an exchange for allowing Chinese students to stay at American universities, something the President said he's never been opposed to all along. We'll see if Bessent here gives any more detail on that. Also, on the docket, guys, today, a lot of members are going to want to know more details about this administration's plans for tax and spending. Obviously, the Ways and Means Committee is the tax committee on Capitol Hill. As you see that camera go a little wonky on us, you get the sense of the action in the room as everybody's getting settled in. So a lot of details here on tax planning that might be in the works as well. So we'll watch all that and bring it to you as we have it, guys.

Carl Quintanilla (3:42)

Some of his comments, according to The Wires this morning, Eamon, talk about if China will uphold its end of the initial Geneva Agreement, he says, a big beautiful rebalancing of US and Chinese economies is possible. He had the president on Truth Social talk about a reopening of trade. Is that a bit of whiplash for corporates that have been working anxiously to exit the China environment?

Eamon Javers (4:08)

Yeah, I think it's a very confusing environment right now for corporate leaders who are dealing with supply chains that touch China. And that's just about everybody who deals in materials of any kind, right? So at this point, you just have to assume that this is a moving target. And it's not entirely clear where this is going to land. And so I think everybody in the economy top to bottom is watching these talks to see whether or not they can come up with some resolution and some predictable rules of the road for trade going forward. We don't know what's in this deal. We don't know if there's going to be a deal signed between the two leaders. There's a lot we don't know here. And that's why I think a lot of people are going to be really watching Bessent over the next couple of minutes to see if he can give us any more clarity on that.