SOTS 2nd Hour: Recession Odds Latest, Jefferies’ Volatility Playbook, and Applied Digital CEO Talks AI Demand 6/3/25

Squawk on the Street

CNBC

Investing, Business, News

4.1 • 567 Ratings

🗓️ 3 June 2025

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla and Sara Eisen broke down the latest for stocks as UBS raises its recession odds – the OECD cuts growth estimates for the United States – and Chicago Fed President Goolsbee warns inflation could head higher from here. Jefferies David Zervos with the team to breakdown the market impact of it all – and why he says “the needle is moving” towards the bulls… That said, Goldman’s Head of Corporate Credit Jonny Fine warning: keep an eye on the deficit if you’re a long-term investor. Hear his read from the ground, this hour. Also in focus: Constellation Energy a top gainer this morning after inking a new deal to power Meta’s AI projects… The key details. Plus: the team caught up with the CEO of a different name, but similar story - Applied Digital’s CEO, fresh off a $15B deal with Coreweave to host their AI datacenters. Squawk on the Street Disclaimer

Transcript

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0:00.0	Good Tuesday morning. Welcome back to Squawk on the Street. I'm Sarah Eisen with Carl Kintania.
0:04.2	We are live from Post 9 as always of the New York Stock Exchange. David has the morning off.
0:08.5	Take a look at stocks, starting off weaker and then coming up higher. We're about unchanged right now on the S&P 500.
0:16.6	The NASDAQ is outperforming today. It's up about a third of 1%. And the DAZ down 52 points, kind of waiting on some economic data. We'll get the biggie at the end of the week with the jobs report. Take a look at Treasuries. As we kick off the month of June, we are seeing some buying today. Yields are a little bit lower. 4.426. We had a good Japanese bond auction. I know we're watching the
0:38.0	global picture, and that may be having an impact here with yield softer across the board.
0:43.2	Coming up this hour, we'll talk about it. Jeffrey's chief market strategist, David Zervos,
0:46.7	joins us with his latest read on stocks and the macro setup as a key economic group cuts for
0:52.5	forecast for U.S. growth.
0:56.7	Plus, we'll talk to the CEO of Applied Digital.
1:02.6	This is the AI Data Center company who shares skyrocketed nearly 50% yesterday on news of a deal with Corewave in just a moment.
1:05.6	First, though, let's get some Jolts and Factory orders with Rick Santelli.
1:08.5	Hey, Rick.
1:09.8	Hi, Carl, indeed, on this job's week. Job
1:12.5	opening labor turnover for April comes in at 7,391,000 above the 7.1 million estimates
1:20.1	and sequentially above slightly revised 7.2 million in the rearview mirror. That is the best
1:26.5	since just February because we reverse that
1:29.1	March downturn. Now let's look at factory orders. Minus 3.2 expected minus 3.7 arrives. Weakest
1:36.8	since January of last year and a negative revision from 4-3 to 3-4 for previous month. Take out transportation. Still negative, but a bit less
1:47.2	negative, down half of 1%. We're expecting a positive number down half a 1% weaker since May of 24.
1:55.7	Now, these are durable goods coming up. These are final reads that replace mid-month read.
2:03.0	Minus 6.3 remains at minus 6.3. That's the weakest going back to Jan of last year. If we look at durable goods
2:09.8	X transportation, a dramatic improvement up two-tenths equals our last look, and that would be
	...

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