Triple Whammy: GDP, Hotter Inflation Gauge, Meta Spark Market Sell-off 4/25/24

Squawk on the Street

CNBC

News, Business, Investing

4.1 • 567 Ratings

🗓️ 25 April 2024

⏱️ 43 minutes

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Summary

Carl Quintanilla, Jim Cramer and David Faber covered all of the bases regarding Thursday's stock market sell-off, surge in yields and rate fears. The catalysts: Q1 GDP growth below consensus estimates, the Core PCE Price Index -- a key measure of inflation -- came in hotter than expected, Meta shares plunged on revenue guidance and plans to increase spending on AI. Also in focus: An earnings barrage including Thursday’s Dow laggards Caterpillar and IBM, the CEOs of ServiceNow and Southwest Airlines joined the program to discuss their companies' quarterly results and outlook. Squawk on the Street Disclaimer

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0:00.0	Market insight and analysis. You're listening to the opening bell of CNBC, Squawk on the Street. Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Cantonea with Jim Kramer, David Faber, post-night of the New York Stock Exchange. Futures do tumble here, not just on meta-IBM last night, but that disappointing macro as Q1 GDP comes in 1-6, lightest since 2022, with a warmer than expected core PCE.
0:22.5	Ten-year 4-7 is now the high of the year.
0:24.7	Our roadmap begins with that growth surprise.
0:26.6	GDP increasing less than expected in Q1.
0:29.3	Stocks do look to open sharply lower.
0:31.6	Plus, meta-shares are set up for what could be the worst day the stock has seen in years.
0:36.2	The company surprised investors
0:37.6	with plans to spend even more aggressively on AI also that second quarter guidance perhaps
0:43.6	not that exciting and on top of that we got a massive earnings day of course comcasts
0:48.5	five Dow components also reported we got Merck honeywell caterp, and IBM. One of the biggest laggards on the
0:55.5	S&P, by the way, ahead of the opening. Let's begin with the market reaction to the weaker than
1:00.2	expected, the GDP, Jim 16, looking for two, five. No, prior, prior estimate was about two, five.
1:07.2	Goldman was at three one. Right. This is one where people are obviously in the wrong way on both.
1:12.2	Wrong on how slow it is and wrong on inflation.
1:15.8	So the Fed needs some help.
1:17.1	These were numbers where you could say, you know what, they can cut.
1:21.2	But, David, you don't cut when you have this kind of inflation.
1:23.9	So the core price index up 3.7, you're looking for it's 3.4.
1:29.1	You don't have a... What are you smirking about? These are awful numbers. I'm not smirking. You're smirking? No, I was just looking at you happily. Happy to see you. My gosh. What am I your kid? You bring me to work today? Listen to me.
1:44.1	GEPC, no, you know what I'm...
1:45.7	You know I'm...
1:45.7	You know, the worry now is stagflation, right? It's like... Well, I was leading to that. All right, well, I beat you to it. Yeah, you did. But look, stackflation to people who aren't familiar with things means that there's nothing you can do. The Fed can't get inflation under control, so therefore it can't cut rates, which therefore
	...

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