Trump’s Reciprocal Tariffs, Momentum Names Rally, LIVE: Robinhood CEO 2/13/25

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Carl Quintanilla (0:59)

Market Moving Insight and Analysis join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street. Good Thursday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Sara Eisen, Mike Santoli here at Post Night of the New York Stock Exchange. Cramer and Faber have the morning off. Futures holding in there, despite this slightly warmer than expected PPI number, and the prospect of retaliatory tariffs from the White House today yields a little bit lower across the curve. A lot of February quarter earnings movers, including Cisco up six. Our roadmap, though, is gonna begin with deleted. Elon Musk calling for the US to quote, delete entire federal agencies, comparing them to weeds.

Sara Eisen (1:44)

Plus earnings watch, as Carl mentioned, Cisco riding the AI wave, Deere seeing a farm slump, and momentum names like Reddit, AppLovin, Robinhood, seeing big moves here pre-market. Hood CEO Vlad Tenev joins us later this hour. And Apple's AI play, Joe Tsai confirming that Alibaba will power AI on iPhones in China.

Carl Quintanilla (2:05)

Let's get right to this morning's PPI number. Four-tenths was a little bit higher than the three-tenths we were looking for. Mike, some of these year-on-years, we'll take you back to early 23, but the second look at CPI yesterday was really about maybe its idiosyncratic moves in cable and satellite prices, and certainly food was the main worry there.

Mike Santoli (2:24)

Yeah, people were over the course of the day looking for loopholes or looking for ways that it might not be the start of a new trend of acceleration and inflation. And in today's PPI, couple things. I mean, yes, on the core level, it was more or less on target. And then the immediate game becomes, how does this translate into the Fed's PCE inflation reading, which is to come and which has a lot of relevance from some of the components of PPI. And that reading was pretty benign. So those were some softer areas of PPI. I think yesterday's market reaction was also interesting. While you did have a pretty pronounced little pop in treasury yields and a pricing out of another Fed rate cut pretty decisively beyond the fall, it still kept everything in the range. I was talking about that yesterday. Nothing really got blown out of this kind of territory we've been going around in yields and in the stock market. It finds a way to support itself. It's obviously suggesting that we can do without, for now, any more help from the Fed if things stay as they are. I mean, it's very contingent. The market's really kind of like jumping from rock to rock to get across the river here.

It seems like we're losing the leadership of industrials. There's certain kind of holes in a lot of the bullish stories, but the overall index really finds a way to stay supported here.

Sara Eisen (3:40)

Tom Lee suggests maybe it's because investor sentiment is already pretty bearish and turned bearish. She looked at AI sentiment collapsed, he said, December, January, meaning investors had been de-risking, so maybe that takes some of the pressure off.

Mike Santoli (3:53)

It's really, I agree with him that it's very conspicuous. In fact, today's number on AI had 47% bears.

It jumped up to 47% bears, 28% bulls. That is unusual in an uptrend in a bull market when the market is within 2% of a record high. However, I don't think that's a clear read on what smaller investors are doing. I think there is an overlay of caution. The news flow has been very noisy. AI is kind of like your older buy and hold crowd, and they're just kind of very, week to week, they're going to kind of swing with the headlines. And then you're seeing crazy retail trader activity, a lot of the names that are moving today.