SOTS 2nd Hour: AMD CEO Talks AI, Financials To Bank On, & Cantor's Equity Drawdown Warning 1/6/26

Squawk on the Street

CNBC

News, Business, Investing

4.1 • 567 Ratings

🗓️ 6 January 2026

⏱️ 42 minutes

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Summary

Carl Quintanilla, Sara Eisen, & David Faber kicked off the hour with some reasons to be optimistic about markets and growth into 2026 - before breaking down the bear case with Cantor Fitzgerald's Chief Equity Strategist who's warning of a drawdown ahead. Plus: what comes next in Venezuela as the President says the U.S. could reimburse energy companies to rebuild there... with one expert who says that's no easy task - and UBS's top picks within the financials as the group kicks off 2026 with a big rally to fresh all-time highs. Also in focus: the state of the AI race and how demand is holding up - with the CEO of AMD, who sat down with the team for a wide-ranging interview, live from one of tech's biggest conferences of the year. Squawk on the Street Disclaimer

Transcript

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0:00.0	Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Cantonier with Sarah Eisen, David Faber, live at Postal 9 of the New York Stock Exchange.
0:05.9	Coming up this hour, big interview with AMD's chief Lisa Sue, live from CES in Las Vegas, as the company announces new AI chips after a stellar year of gains. Plus, big bank stocks trading at some record highs.
0:18.2	Cycical names start out the year with the bang.
0:20.4	We'll talk to an analyst who says it's still too early to take profits.
0:23.8	And, of course, the latest event is... trading at some record highs. Cycical names start out the year with the bang. We'll talk to an analyst
0:21.2	who says it's still too early to take profits. And of course, the latest on Venezuela, as the president
0:26.0	is expected to meet this hour with House GOP members in Washington.
0:31.8	Guys, the overall vibe in the stock market continues to be optimistic. We're up again. And part of the reason why is that
0:39.5	there is a lot of hope about a rebound and growth in Q1. So this is when the impact of the one big,
0:46.4	big beautiful bill, the tax legislation, starts to really hit. And so I've been going through
0:50.8	some of the market research or the Wall Street research about how much it's actually going to help growth in consumer spending.
0:57.1	So Goldman Sachs says the tax cuts will boost household consumption growth by 0.2% for the year.
1:03.1	Remember, the idea is bigger refunds, tax relief on things like overtime and tips.
1:09.6	Wells Fargo says incremental 800 to 850 in tax
1:13.7	return per filer on average, representing a 45 basis point tailwind to GDP. Not bad, almost
1:19.8	half a percent. And Deutsche Bank says 50 to 60 billion dollar boost to consumer spending.
1:25.5	So that's part of, I think, the underpinning, Carl, why the setup looked good for this year.
1:31.3	If you look overall at what Wall Street is expecting on growth, remember we haven't had fourth quarter GDP yet,
1:37.3	but if you look ahead to the first quarter on GDP, Wall Street estimates are pretty strong.
1:43.3	They're expecting more than 2% growth, 2.5%
1:46.6	growth, which would be a rebound from the fourth quarter, which the estimate is at 1%.
1:51.1	So that's kind of the story right now, that along with Fed cuts, which is keeping earnings
	...

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