Squawk on the Street 2ND Hour 3/6/26

SPEAKER_1 (0:00)

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Sara Eisen (0:28)

Oh, could this vintage store be any cuter?

SPEAKER_3 (0:31)

Right? And the best part? They accept Discover.

SPEAKER_5 (0:33)

Accept Discover?

Robert Frank (0:35)

In a little place like this?

Sara Eisen (0:36)

I don't think so, Jennifer.

Jan Hatzius (0:38)

Oh, yeah, huh.

SPEAKER_8 (0:39)

Discover is accepted where I like to shop.

SPEAKER_9 (0:41)

Come on, baby.

SPEAKER_1 (0:42)

Get with the times.

Sara Eisen (0:43)

Right. So we shouldn't get the parachute pants?

SPEAKER_9 (0:47)

These are making a comeback.

David Kelly (0:50)

I think.

Robert Frank (0:51)

Discover is accepted at 99% of places that take credit cards nationwide. Based on the February 2025 Nielsen Report.

Sara Eisen (1:04)

Good Friday morning, welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla. We are live, as always, from Post 9 of the New York Stock Exchange. David Faber has the morning off. Stocks are under pressure this morning. The S&P down a little more than 1.5%. Every sector is lower in the S&P right now. Energy's holding up the best as oil prices surge. Financials are getting hit the hardest, along with materials and consumer discretionary. The Nasdaq's down 1.2%.

WTI crude surging. We're talking about a gain of 9.3% right now. Brent crude, the international benchmark, it's above $90 a barrel, in fact, above 91 right now. Up 7% on these risks coming out of the Middle East. We'll talk about it in just a moment. But just adding up the losses, it's been a tough week for the bulls. S&P now down 2% for the week. And treasuries, just show you what's happening there. Kind of a mixed picture. On the short end, they're rallying and you're seeing lower yields. Maybe that's the weaker jobs report, but on the long end, sell off with higher yields, and maybe that's concerns about inflation. There's a lot going on right now. We'll talk about all of it this hour. Goldman Sachs chief economist Jan Hatzius with us. We'll hit the big jobs miss, the inflationary concerns around surging oil prices and the war in Iran. And then later, a cannot miss interview with Fed Governor Stephen Myron, just ahead of the blackout period before the Fed's March meeting. He will react to this morning's weaker jobs.

Carl Quintanilla (2:24)

Let's get some more economic data this morning with Rick Santelli. Hey, Rick.

SPEAKER_8 (2:29)

Hi, Carl. Indeed, this is December Read on Business Inventory. So, it's the final capstone on the year, and it comes in as expected, up one-tenth. So, we would have had back-to-back one-tenth, except for last month, revised to unchanged. What I find interesting is that the high water mark was up four-tenths, and that was in January of 25, which means next month when we get Business Inventory, we'll pay special attention because many significant adjustments during this tariff question period always seem to happen in January. And we look at 416 in a 10, that's down 23 basis points on the week, and Sara, you're exactly right. We are basically unchanged to a little higher and price a little lower in yield only on a two-year, but this is the first steepening I've seen in a while on the 10s to 2s spread, steepening today about four basis points. Sara, back to you.

Sara Eisen (3:25)

Okay, thank you, Rick Santelli. Let's just hit the jobs report this morning, because it was a bummer, the headline. Down 92,000 jobs, so a negative number on the jobs print. The expectation was around 50,000 jobs. So we're not talking about high expectations of big job growth because of what we've seen in terms of the slowdown in jobs, but this one really went negative, and I think that was a big surprise to people, and it shows you where we've been over the last few months or so.

It's been a sluggish environment for job creation. The unemployment rate goes up to 4.4 percent. Interestingly, the debate continues, Carl, about just how much of it is businesses not feeling in the mood to hire, or just not enough supply of labor to hire because of the immigration crackdown and everything else going on. The reason that that debate rages on is because wages were really strong. They were up 0.4 percent average hourly earnings, and that was more than expected, 3.8 percent year on year, so better than expected, but also feeds into some concerns this morning around, and I hate this word, stagflation, right? Because job growth slowdown at the same time that you have inflationary pressure, the rising oil prices, big spike today, can't get away from that one, and then higher wages, and it makes you wonder where we're headed and what the Fed can do about it, because typically the Fed would say, oh, we're not seeing job growth, let's cut rates, but not if they have to worry about inflation.