10AM Hour: Alberta Premier on Tariffs, Dell Jumps on Earnings & Investing in Venezuela 9/2/26

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**Carl Quintanilla** (1:00)
Good Wednesday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with David Faber, Leslie Picker here at Post 9 of the New York Stock Exchange. Sara Eisen's off today. Some big moves and big tech this morning. Dell surging, some software names are lagging. We'll talk about what that means for the broader tech trade coming up. Some big energy investment deals in Venezuela announced this morning. We will get a live report from Caracas in just a minute. Stocks getting a little spooked yesterday after tensions flared between the US and Iran. What's the worst day to start a month for the S&P so far this year? Richard Haas will explain why. He says economic pressure may be a better strategy than military escalation in the Middle East.

**David Faber** (1:37)
First, let's get factory orders just crossing. Rick Santelli has them for us. Rick.

**Rick Santelli** (1:42)
Indeed, David, these are July 1st reads for factory orders. Expecting a number around three quarters of percent increase comes in a little stronger. Up nine-tenths. Up nine-tenths will be the best read since April. We've had a couple of negative months, both June and July, excuse me, May and June were in the negative camp, although a little less negative on last month, from minus three-tenths to minus two-tenths. Now, when you strip away transportation, it still remains quite strong. So transportation wasn't a negative. We're expecting up four-tenths comes in up six-tenths. So nine-tenths on headline, up six-tenths when you take out transportation, and that would be the best read also since April when it was up 1.7. Now, on the Durable Good Orders, these are final July reads, which means we take the mid-month read and we toss it, fine-tune it, and this is what goes into the books. 1.1 was mid-month, 1.1 remains. 1.1 is the strongest since April. X-transportation was up four-tenths, it remains up four-tenths. That would be the best read, well, just since June when it was up 1.1.
If we look at the Capital Good Orders Non-Defense X-Air, a proxy for capital spending, this is a bit of a miss. We looked at our last time, up two-tenths of a percent, it now goes to zero. But do keep in mind, we've had several very strong months in a row. Now if we switch to shipments, it remains strong. 1.4 now does go to 1.2, but 1.2 follows and up 2.4, some very solid reads indeed. We see interest rates around the globe still guns hot. If you look at the boons in the EU, fresh trades at 15-year highs. If you look at the French in the UK, 18-year highs on their 10-year. Fresh high yields over 3% on the Japanese 10-year. And on the US 10-year yesterday, it closed at a yield that was the highest since October of 23
Currently, we're down 2 basis points in both 2s and 10s. And 479, a closing basis, was where we were looking at our January high-yield close. Yesterday, usurped that back to October, but we are slipping here just a bit. We want to pay very close attention to oil prices as they are now hovering very close to unchanged, maybe giving a little back of that big pop yesterday that helped boost rates. Leslie, back to you.

**Leslie Picker** (4:15)
Yeah, Rick, that correlation between oil and yields very much in focus. Thank you very much. As Rick was just saying, the 10-year yield hitting its highest level in nearly three years earlier today, closing at those levels yesterday. Let's bring in Ed Yardeni, president at Yardeni Research. Ed, it's good to see you. You say in your recent note that you, quote, share the bond vigilantes' concerns, but aren't convinced bond yields are or will soon be prohibitively high. Why?