SOTS 2nd Hour: Where Markets Stand, Apple's Earnings Gains, & Is It Finally Time To Touch Software? 5/1/26

SPEAKER_1 (0:00)

This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com/marketupdatepodcast, or find Schwab Market Update wherever you get your podcasts.

SPEAKER_2 (0:29)

What made you confident that you could do something that hadn't been done before? I have no fear of failure.

SPEAKER_3 (0:35)

Trailblazing women changing the game.

SPEAKER_4 (0:37)

One of my favorite pieces of advice, think about what your boss's boss needs. Leadership can look in many, many different forms.

SPEAKER_3 (0:45)

It really does come down to just trusting yourself. Life is short and you just gotta think big to accomplish big things. Julia Borsten hosts CNBC Changemakers and Power Players. New episodes every Tuesday wherever you get your podcasts.

Sara Eisen (0:59)

Good Friday morning. Welcome to Squawk on the Street. I'm Sara Eisen. With Carl Quintanilla, we are live as always from post-night of the New York Stock Exchange. David Faber is off today. Coming up in the show, the S&P 500 and Nasdaq just wrapping up their best month since 2020

We'll talk to longtime market expert Jeremy Siegel about whether or not the rally has more legs. Plus, anthropic investor Byron Deter is with us as the company looks to raise new money at a $900 billion valuation. The latest on Apple Hire this morning after wrong revenue guidance. But we'll talk to one analyst who says risks are rising here for shareholders.

Carl Quintanilla (1:33)

Let's get one more macro data print to wrap up the week with Rick Santelli. Hey Rick.

Rick Santelli (1:39)

Hi, Carl and Dee. These are the last of the PMIs. These are manufacturing. They're from ISM. April, fresh April. We're expecting the headline number to come in over 53 A bit of a disappointment, 52.7. Now it is the fourth consecutive number over 50 That's an expansion territory, but it is equal actually to the last look. So 52.7 back to back, and those numbers are the best since the summer of 22, even though it is a little light to expectations. Price is paid going the wrong way. Expecting a number around 80 comes in all the way up to 84.6.

Equals April of 22 to find a higher number. You're back to March of 22

On new orders, it is now the fourth number in a row over 50 in expansion territory. At 54.1, light to expectations, sequentially higher than 53.5, and 54.1 would be the best since February when we were almost at 56 And finally on the employment, and keep in mind, a week from today, we'll have an employment report. This has been the weakest part of the PMIs. 46.4, well below expectations, sequentially lower than 48.7.

It's the 31st consecutive number in the employment index component to be under 50 And 46.4, that would be the lightest going back to a DC of last year when we were at 44.8. So employment is an area we'd like to see a little bit stronger as we are in this sort of no hire, no fire environment. And I would like to point out rates are higher on the day, higher on the week as we're up 300 day, up 10 on the week and a 10 year. Sara, back to you.

Sara Eisen (3:33)

Okay, good to see manufacturing expanding though again. Overall and new orders especially better. Thank you, Rick Santelli. We are getting some breaking news now out of the Fed. Let's get to Steve Leesman with the details, Steve.

Steve Leesman (3:46)

Thanks, Sara. Dallas Fed president, Lori Logan, explaining her descent, saying it is possible and the Fed needs to communicate this to the markets. In her opinion, it's possible for the next Fed move to be a cut or an increase in interest rates. The Fed, she says, should not be providing forward guidance implying a bias to cut rates. Logan was one of three Fed presidents who dissented from the last meeting because of the statement, the line in the statement suggesting a bias. She says, she's increasingly concerned how long it will take the Fed to get back to the 2% inflation target, which has exceeded that target for more than five years. And she goes on to say, the Mideast conflict is creating further inflationary pressures that she's concerned about while the labor market has been stable, so less concerned with the employment side of the mandate. Inflation, she says, could improve if tariff-related price increases subside and supply disruptions resolve quickly, but inflation could also remain suddenly high very quickly. Neil Kashkari earlier had also put out a statement saying, there's two possibilities here. One is a quick opening of the Strait of Hormuz would keep the Fed on hold, so no cut built in only followed by gradual easing. And here's his look of the, if it stays closed for a longer term period of time, he's concerned both inflation and unemployment could rise unanchoring inflation expectations. The funds rate, he says, should increase even at the risk of further market weakening.