SOTS 2nd Hour: Treasury Sec. On The Hill: Day 2, Boeing Crash Latest, Chime IPO 6/12/25

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Sara Eisen (0:50)

Good Thursday morning. Welcome back to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber. We are live at Post 9 of the New York Stock Exchange. Stocks have come back from a little morning sell-off here. The S&P climbing toward the flat line. A number of sectors positive now. Utilities, real estate, information technology. Thank you, Oracle, on that one. Materials and healthcare still have stocks up about four-tenths for the week on the NASDAQ, about three-tenths for the S&P 500 A mix of geopolitical headlines today, another benign inflation report, trying to figure out what comes next on the trade front. Treasuries are rallying big time. You're seeing lower yields across the board. We do have a big 30-year auction later today, but again, more better news on inflation maybe means the Fed can cut more. That's leading to a bond rally, 30-year yield now, 4.87%.

Today, Secretary Bessent back on the Hill, the Treasury Secretary testifying this hour before the Senate Finance Committee. We'll bring you the highlights as we get them. Plus, much more from David Faber's conversation with the CEO of Chime as the FinTech company gets ready for its public debut later today at the NASDAQ.

Carl Quintanilla (1:56)

First, though, to the breaking story of the morning, an Air India flight carrying more than 200 passengers crashing in the western city of Ahmedabad. Shares of Boeing were down sharply after it was reported the plane was a Boeing 787 Dreamliner. Our Phil LeBeau is back with what we know so far this morning. Hi again, Phil.

Phil LeBeau (2:14)

Hey, Carl, more questions than answers regarding this crash. The video that was fed in minutes after this crash shows that this plane went down in a fairly populated area, not far from the airport in northwest India. And as you look at the video here, you're saying to yourself, well, how much do they know about what happened? Well, it only got to 621, 625 feet in the air before it plunged out of the sky.

There were 242 people on board. It crashed shortly after takeoff. Now the focus is going to be, okay, did anybody survive? And if there's no survivors, the recovery of victims. That's the focus right now and will be likely for the next 24 hours or so. The NTSB and the FAA are likely to help with the investigation. Here's how it goes when there is a crash in a country. That country leads the investigation, but almost always they will ask the FAA or the NTSB to assist with the investigation. NTSB would be the lead investigator there. The FAA would provide technical expertise. In terms of the Dreamliner, despite the problems when it was initially launched, and we covered those extensively back in that 2006 to 2011 time period, despite those problems, since then the Dreamliner has had a pretty good track record. In fact, if this is the first crash involving a Dreamliner, Boeing is in the process of increasing its production of the Dreamliner from four per month up to five per month. Take a look at shares of Boeing over the last year. It is also expected within the next couple of months to ask the FAA for an increase in 737 max production. We'll see if this investigation influences that decision by the FAA. And then finally, take a look at shares of General Electric. GE Aerospace, I should say. The Gen X engine has a strong reliability record. And when you talk with people within the industry, they will say time and again, GE Annex is a solid engine. Now the question becomes, did something go wrong with the two engines on this aircraft or strictly with the aircraft? Or was there pilot error involved? More questions than answers, guys.

Sara Eisen (4:27)

And Phil, we've mentioned before some of the Boeing safety incidents. We mentioned the ones in 2018 and 2019, Lion Air, Ethiopian Air, the door thing last year. How much is Boeing done to improve the safety standards and the perception? Because that's a blow.