Silicon Valley Bank Turmoil, Contagion Fears, Jobs Report Friday and the Fed 3/10/23

Squawk on the Street

CNBC

Business, News, Investing

4.1 • 567 Ratings

🗓️ 10 March 2023

⏱️ 46 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, Jim Cramer and David Faber focused on the two big stories of the morning: The SVB Financial meltdown and the key February jobs report. Sources told David that efforts by the parent of Silicon Valley Bank to raise capital have failed and its attempts to sell itself are in doubt. Shares of the tech-focused lender extended Thursday's rout and dragged regional bank stocks down with them -- including First Republic Bank losing half of its value. Where is the money going after rotating out of the regionals? As for the February jobs report: Employers added a better-than-expected 311,000 non-farm jobs, the unemployment rate ticked up to 3.6%, labor force participation rose and wage growth came in tamer than expected month-over-month. What does it all mean for the Fed?

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. Don't miss a minute of the action. Good Friday morning. Welcome to Squawk on the Street. I'm Carl Kington-Awe. Jim Kramer at Post 9 of the New York Stock Exchange. We're going to hear from David Faber in just a moment. Future is fairly steady. Really only two big stories today. There's SBB Financial halted for news after Thursday's crash.
0:22.0	And of course, February jobs, 311,000 with some relief in hourly earnings, work week,
0:27.6	and labor force, some of the benchmark yields near a six-week low today.
0:31.6	We're going to begin with SVB shares halted. As we mentioned a few moments ago, Jim, you were talking to Andrew.
0:36.9	You'd rather wait than surmides what the news is. Yeah, I mean, who wants to be a part of the story? That's just a
0:43.2	bad call. What I do know is this. It's big enough to change the narrative because we found out
0:51.4	both sides were bad. We found out that if you went against securities that are not public yet, well, that's terrible. And then you've got to put more collateral. The first is really sweet, generous. Silicon Valley, it's the only one that really did that kind of stuff. Like, J.B. Morgan, we never touched them. The second is difficult, because if there's really a lot of portfolio risk, duration risk, meaning that the sensitivity to what the Fed does
1:13.2	is a little bit greater than we thought, then the Feds can't move with the alacrity.
1:18.2	And that's why I'm saying that barring some bad read of this, of the income of these numbers
1:24.1	at 20, 30, take goes 25.
1:26.4	25 over 50.
1:30.2	David Faber, of course, course off today but as is common david calling in with news especially with the story we're watching today good morning
1:35.6	good morning guys yeah it's the typical day off we're going to get news um we're obviously keeping
1:43.5	a close eye i know you
1:44.3	guys are on silicon valley bank uh... you know a few things to share here at this
1:48.1	point
1:49.0	as the market already seems to be well aware though i don't believe the company is
1:52.3	formally announced that may be why it is
1:55.0	a halted news pending
1:56.6	that capital raise that goulpen sax had embarked on is a fail
2:00.0	uh... it's not going to happen. There are
2:02.4	plenty of reasons people can point to for why. They certainly didn't seem to time it particularly
	...

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