SOTS 2nd Hour: Trump Tariffs Latest, Chipping Away At The Semis, Battered Banks 03/05/25

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Jim Cramer (0:47)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Sara Eisen (1:02)

Good Wednesday morning. Welcome to another hour of 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. Take a look at stocks. We started out with a nice little bounce rally. S&P, we lost it. We're coming back. S&P now up about 4 tenths of a percent, so it's been a little bit choppy. The NASDAQ coming back by 4 tenths as well. Again, after a big sell-off yesterday into the close, the Dow was up 246 points. It's very sensitive to these trade headlines that are coming lately and to the economic data. Let's look at Treasuries. There's been a lot of buying lately, and Treasury yields have fallen sharply. We're higher today, 422, so pretty steep bounce here from the lows. We were below 4.2 yesterday. The two-year yield is still lower, below that 4 percent level. We're 30 minutes here into the trading session. Here are three big movers we're watching. Shares of CrowdStrike dropping, the cybersecurity company's outlook falling short of estimates. The stock is also getting a number of price target cuts on the street. We're looking at an 11 percent decline right now. Novo Nordisk shares rallying, the company offering its blockbuster weight loss drug Wegovi for less than half the price through a new direct-to-consumer pharmacy. Also keeping our eye on Tesla after another rough day yesterday, a price target cut, bearish sales numbers out of Europe. The stock is up, though, a percent. More on Tesla coming up.

Carl Quintanilla (2:24)

Market taking some heart in these ISM services number. Let's get to Rick Santelli. Hey, Rick.

Rick Santelli (2:30)

Yeah, the new batch of data looking pretty solid. Look at equities and rates both moving up. Factory orders for January coming in as expected, which isn't bad when you expect 1.7. In the rearview mirror, we went from minus nine-tenths to minus six-tenths. 1.7 is the best month-over-month change since July of last year. Strip out transportation and it's up two-tenths exactly as expected. Now, let's look at durable good orders, shall we? Now, these are January final numbers. So 3.1 now becomes 3.2, and that, of course, is a positive number. 3.2 would be the best read. Going back to, you guessed it, July of 24 Let's strip out transportation. Unchanged. Unchanged matches are mid-month read. If we look at capital good orders, non-defense X aircraft, a proxy for capital spending, well, that remains at up eight-tenths. That remains at up eight-tenths, which is the best number since August of 23 And if we go from orders to shipments, well, shipments are under pressure and they remain under pressure from mid-month to now down three-tenths, down three-tenths. That would be the most negative month of the month change since July. And finally, what we have here is ISM. And also very positive, ISM 53.5. That's a full point better than expected. That would be the best rate going back to the last month of last year. 62.6 on services, prices paid. 62.6 would be the highest since December. And of course, we want this to go the other way. In the rear-view mirror, that was 60.4. If we look at new orders, last look was 51.3. It moves in at 52.2, also the best since the end of last year. And finally, employment. The employment index after a weaker ADP in front of the big jobs report comes in at 53.9. That's a solid read. That would be the best read going all the way back to December of 2021

So, we see rates moving up yesterday. The low yield in the 10 was 4.104.10.

It's currently now coming back up towards 4.23 and the high yield today is 4.26. Sara, back to you.