Squawk on the Street 2ND Hour 5/9/25

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Carl Quintanilla (1:09)

Good Friday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Lesley Picker and David Faber. Live at Post 9 to the New York Stock Exchange, Sara has the morning off. Bulls hoping that these initial U.S.-China trade talks gonna bear some initial fruit this weekend in Geneva, adding to some gains here. S&P above 56.85, got some FedSpeak today, consumer earnings, all sectors green, except for Staples and the VIX back to 22

Lesley Picker (1:33)

Yeah, the movers this morning. Downside for a couple of big names we're watching, we're about 30 minutes into the trading session. Here are some of those movers. Expedia shares getting crushed this morning. Q1 results hurt by weaker than expected travel demand in the US. Expedia also giving soft guidance. You can see those shares down about 7.5% right now. Shares of a firm also moving lower despite beating on third quarter earnings, but the company posting weaker than expected guidance for the current quarter, setting that stock down about the same magnitude, about 7.4% right now. Now, one name that is surging today is Lyft of double digits as the company boosts its share buyback plan to $750 million in its first quarter earnings report. Revenue also growing 14% from the year prior, and market likes what it sees. That stock up about 21% right now.

David Faber (2:20)

All right. Investors, of course, are looking ahead to what is going to be high stakes trade talks. The beginning of them, at least, between the US and China. They're taking place this weekend in Switzerland. Let's get over to Eamon Javers. He's at the White House and can bring us up to date.

Eamon Javers (2:34)

Good morning, David. President Trump getting the market's attention this morning with this social media post where he wrote, 80 percent tariff on China seems right up to Scott B. That's Scott Besson, the Treasury Secretary, obviously, who's going to talk to the Chinese this weekend. That would be a significant pullback from the 145 percent tariffs that are in place now. So the question is, when does the president want to do that? I want to draw your attention to some potentially significant remarks a short time ago here at the White House from National Economic Council Director Kevin Hassett, asked by reporters about the president's social media post there. He said this.

Kevin Hassett (3:13)

On China tomorrow, Trump said today 80 percent would be, it would be okay.

Bob Pisani (3:19)

It will come out tomorrow. What happens is a negotiation.

Kevin Hassett (3:21)

So you don't anticipate any drop in tariffs before those talks?

Jason Robbins (3:24)

I think that everything will happen while the talks are happening. Not before.

Eamon Javers (3:30)

So note that that has it said there, it will come out tomorrow and it will happen while the talks are happening. Now that sets up a potentially dramatic scenario this weekend where we could see the president significantly walk back China tariffs as part of or immediately after the meeting in Switzerland between the US and the Chinese negotiating teams. Now I asked a White House official if that scenario could be coming. The official said there's a reason why Kevin made those remarks. So anything can happen here, guys. Note of caution as always. But the president and his staff right now are leaning heavily into this idea of walking back those China tariffs, guys. Back over to you.

David Faber (4:08)

Yeah, interesting. Certainly conceivably, I guess, would set the stage for for talks that might progress from there, Ayman. That said, 80 percent. I mean, if people term 145 percent an embargo, I'm not quite sure how they'll term 80 percent, but it is still a fairly significant hurdle.