Hot Jobs Report Hits Stocks, Delta and Walgreens Surge, Constellation's $16.4B Power Play 1/10/25

Squawk on the Street

CNBC

News, Investing, Business

4.1 • 567 Ratings

🗓️ 10 January 2025

⏱️ 42 minutes

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Summary

Carl Quintanilla, Jim Cramer and David Faber explored market reaction to the stronger-than-expected December jobs report: The results sent stocks down sharply and yields higher on concerns the Fed might not cut rates later this month. Shares of Delta and Walgreens surged on the companies' respective earnings beats. Constellation Energy agreed to acquire Calpine for $16.4 billion in cash and stock, as tech companies seek power for their AI data centers. Also in focus: Elon Musk's "best case outcome" for DOGE federal spending cuts, big media players cancel their joint sports streaming venture, California wildfires impact. Squawk on the Street Disclaimer

Transcript

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0:00.0	It's Jim Kramer here. You're listening to the opening bell of CBC Squawk on the Street.
0:04.7	Don't miss a minute of the action.
0:07.6	Good Friday morning. Welcome to Squawk on the Street. I'm Carl Cantonia with Jim Kramer, David
0:11.2	Faber, Post 9 of the New York Stock Exchange. Futures are under some pressure as bond yields spike
0:16.0	on this is December jobs print. 256,000, strongest in nearly a year, some minimal revisions. 30-year cracks
0:24.3	5% for the first time since 2023. A rubmats going to begin with the job's number,
0:29.1	prompting some concerns the Fed might not cut rates later this month. And on the earnings front
0:33.7	this morning, shares of Delta and Walgreens are each getting a boost.
0:37.9	Their respective results have exceeded analysts' expectations.
0:41.5	We'll dive into both.
0:42.9	And Constellation Energy has agreed to acquire Calpine.
0:45.4	It's a $16.4 billion deal, cash in stock.
0:48.9	This, of course, is power demand, given the growth of data centers and AI continues to rise. Don't miss Constellation
0:58.4	CEO, Joan Dominguez. He'll join us in the next hour of Swalcon Street. Let's get to this reaction
1:03.8	on the jobs number. As we said, 256, looking for about 100,000 less than that. Unemployment falls a tick
1:10.1	to 4-1, Jim. Wages may be the only
1:12.6	dovish wrinkle in this. I'm so good you mentioned that because, look, we can all be very
1:17.4	negative. The economy put a lot of people to work, paying them 10 cents more. I have trouble
1:22.3	being really negative on that. 25 cents, maybe 30 cents. But when I see this number, what I say to myself is, okay,
1:30.5	would you prefer earnings to be good? Because this isn't earnings to be good. Or would you prefer
1:35.2	rate cuts? Anytime I can get earnings to be good, I vastly prefer that to rate cuts because
1:40.2	rate cuts don't necessarily translate into EPS. We are, in the end, creatures of what
	...

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