SOTS 2nd Hour: Tariffs Impact – From Stocks to States to Your Wallet 2/3/25

Squawk on the Street

CNBC

Business, Investing, News

4.1 • 567 Ratings

🗓️ 3 February 2025

⏱️ 45 minutes

🔗️ Recording | iTunes | RSS

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Summary

Stocks selling off after President Trump announced new – and wide sweeping – tariffs on Canada, Mexico, and China… But new as of the 10AM ET hour: Mexico’s tariffs will be delayed for a month. Carl Quintanilla, Sara Eisen, and David Faber broke down what it all means for stocks, yields, and the Fed’s path for rates. Tariff talk within: Why one Canadian auto parts supplier says vehicle production could “grind to a halt”; Goldman’s Chief U.S. Equity Strategist forecasting tariffs could hit S&P earnings as much as 2-3%; The top U.S. states that could benefit – or feel the pinch – of trade swings; and the latest out of CNBC’s exclusive Fed Survey on potential market impacts Squawk on the Street Disclaimer

Transcript

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0:00.0	Good Monday morning. Welcome to another hour of squawk on the street. I'm Sarah Eisen with Carl Kintania and David Faber live, as always from post nine of the New York Stock Exchange. Take a look at stock. Sell off mode on Wall Street after those tariffs are imposed on Canada, Mexico, and China. The S&B is down one and three quarters percent. Nasdaq is taking it harder, down 2 percent, and the Dow is down 640 points right now. Take a look at Treasury's. Interesting reaction here because there's a lot of worries about inflation, but we're actually seeing after the short end, the five-year, 10-year 30-year yields all lower right now. 10-year yield is 4-5, 2-year yield, a little elevated, 4.25. We'll talk about all of it. We're 30 minutes
0:38.8	here into the trading session. Here are some movers we're watching this hour, many related to tariffs.
0:43.3	A big leg lower in the autos, for instance, GM, the biggest loser here. Nearly 40% of all vehicles
0:48.9	that the company made last year in North America came from plants in Canada and Mexico alone.
0:54.7	You can see the earnings hit that's being factored in.
0:57.5	Food and alcohol names also taking a hit.
0:59.4	Piper Sandler downgrading Constellation this morning on tariff headwinds
1:02.8	and fast casual chains with big exposure to produce like tomatoes and avocados,
1:07.9	namely Chipotle and Kava, also seeing pressure.
1:11.0	And then we're watching the transports, loop capital downgrading the entire sector as they
1:15.1	write, quote, don't buy transports into a trade war.
1:19.4	There's no shortage of losers on this.
1:21.4	Let's get some ISMs this morning on a busy week.
1:24.0	Let's get to Rick Santelli once again.
1:25.4	Hey, Rick.
1:26.9	Yes, ISMs. These are our January
1:29.3	reads. These are, of course, ISMPMIs versus S&P Global. On the manufacturing headline, expecting 50,
1:35.8	we end up with 50.9. 50.9. What's interesting here is that we reverse 26 consecutive
1:42.8	months under 50. Yes, now we are back over 50. 50.9
1:47.9	would be the best read going back to September of 22. September 22. Impressive. New orders.
1:55.5	Also, well above what we're expecting. If 55.1, that would be the best since May of 22.
2:03.6	And if we look at the employment side, employment, 47.8 expected leaps over 50, 50.3.
	...

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