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Squawk on the Street

SOTS 2nd Hour: Trump’s Tariff Sell-off: Key Laggards & How To Trade it – Plus: Former Treasury Sec. Steven Mnuchin 4/3/25

Squawk on the Street

CNBC

Business, News, Investing

4.1567 Ratings

🗓️ 3 April 2025

⏱️ 52 minutes

🧾️ Download transcript

Summary

A massive sell-off across the street as investors work through President Trump’s new tariffs – Sara Eisen, David Faber, and Carl Quintanilla broke down the latest along with the key laggards to watch across retail, autos, banks, and more. The Mag-7 erasing nearly a trillion dollars in collective market value... and many questioning the Trump Administration’s methods when it comes to their “Discounted Reciprocal Tariffs” (Senior Economics Reporter Steve Liesman explains the math this hour). Plus: Former Treasury Secretary Steve Mnuchin joined Post-9 for a wide ranging interview - talking Trump, tariffs, trade, and even Tiktok. Squawk on the Street Disclaimer

Transcript

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0:00.0

We'll see if the corporate commentary, beginning a week from tomorrow, can absorb all this news. And the ones that I find in the battleground is what would Jamie say, Jamie Diamond? What will Charlie Sharp say? Charlie's largely a domestic bank. He's going to say that employment's good and things are good. Brian Moynihan may say that. I like some of the, like I said, I like Bristol Myers. I mean, there's a lot to like. It's kind of very similar. We didn't hit the banks we should have.

0:24.7

I know. And I think that may be wrong. It's April 2020. Take a look at the big shift out of the out of tech into Bristol Mars. Right there. Coca-Cola is a great stock. We'll see it tonight, Jim. Important day. Mad Money 6 p.m. Eastern Time.

0:39.3

ISM services are up. Let's get back to Rick Santelli.

0:42.3

Yes, boy, there are some weak numbers here, gang.

0:46.3

These are ISM for the month of March. They have no mid-month read.

0:50.3

These are the only and final for March.

0:52.3

On the services index, 50.8. That's about two points

0:56.9

less than we were expecting weakest level since June of last year. Prices paid. This is the good

1:02.9

news. It went down. It went down to 60.9. That's the smallest prices paid component since

1:10.1

Nova of last year.

1:11.3

And this is one we're coming down as a good thing.

1:14.5

If we look at new orders, 50.4, that's about one and a half points, less than we're expecting.

1:20.8

That the last time we're at these levels would be June of last year.

1:24.2

And finally, on the employment front, and this is important considering we had ADP yesterday,

1:29.2

a bit better, and tomorrow's the big jobs report, 46.2, 46.2. To find a lower number, I'm going

1:37.3

back to D's of 23. All the other comps were, of course, last year, this goes back to Ds of 23.

1:44.0

Interest rates, well, is the equ Dees of 23. Interest rates,

1:45.3

well, as the equities make new lows, interest rates are making new lows. And as Jim's pointed out,

1:51.6

there is a positive to lower interest rates. I know our Treasury Secretary was on our program

1:57.2

not long ago on CNBC saying he was going to get long rates down. One heck of a way to do it is to, of course, make the economy potentially weaker, or, of course, a lot of this could just be the uncertainty and nervousness about how all this will turn out in the terms of equity prices, Treasury's being one good hedge. But I will tell you something, the dollar index, everybody expected to be much higher. It's not. However, it's orderly. So if you look at the dollar index, it's basically at a six-month low. You look at the euro, it's basically at a six-month high. You look at the end, it's basically a six-month high. If you look at the onshore and offshore you want, they're basically at two-month

2:34.8

lows, so the dollars at two-month highs. Yes, it's messy, but it's orderly, and in many ways,

2:41.1

it adds up and makes sense, especially if you look at the breakdown of the dollar index.

...

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