10AM Hour: Exclusive: Israel Prime Minister Benjamin Netanyahu 6/3/26

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Carl Quintanilla (1:06)

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 on assignment in Israel this morning, where she will join us in just a moment for an exclusive interview with the Prime Minister, Benjamin Netanyahu, as tensions do ramp back up in the Middle East. Here's a look at where things stand in the market meantime. Got a little softness. The S&P would be going for a 10th consecutive game today.

A little tough going at the open here below 7,600. VIX a little elevated at 16 1⁄3. Yields a little elevated and that oil of course up 10% so far this week. Got some fresh economic data coming. Let's get to Rick Santelli. Hey, Rick.

Rick Santelli (1:48)

Yes, Carl, kind of a long list actually. Let's start out with fact orders. April number, expecting 4.6 comes in stronger. 4.8. 4.8 would be the best level going all the way back to May of last year. And if we look at the durable good orders, these are all final reads, meaning mid-month gets moved out. 7.9, 9 becomes 8%.

8% is a very strong number. Last time it was 8%.

We have to go all the way back to, well, this is the best since a year ago as well. Now, let's look at durable orders, X transportation up 1.1%.

That would equal the last couple months. It's been back to back to find a higher number. In February, where it was a little bit over 2%.

Now, let's look at capital good orders, non-defense XR, proxy for capital spending, minus 1%, very close to expectations. That replaces minus 1.1. And even though this is not a terrific number, 3.9% was the best since June of 2020 That was our March number. A little mean reversion going on there. Let's switch gears to shipments. It remains at up 4 tenths of a percent. Now, let's go to the ISM side of the equation for services. We had S&P Global. On the ISM, these are all fresh, no mid-month reads. 54.5, much stronger than expected. That will be the best read since February, so the second best read of the year. If we look at prices paid, we want this one to go down a bit. And indeed, it was less than expectations. They were over 72 This comes in at 71.3. The problem is, it's still sequentially higher than 70.7 in the rear view mirror. 71.3 would be the warmest on this number since August of 22 And if we look at what's going on with new orders, 57.3, much stronger than expected. That would be the best level, well, just since March, when it was over 60 And finally, on the employment side, after having a very strong ADP this morning, employment is 47.9 in contraction territory, less than 48 in the rearview mirror, hasn't been above 50 since February, which was the high rate of 51.8. Interest rates remain stubbornly high, oils turned around, but it's still up on the session. Carl and the gang, back to you.

David Faber (4:11)

All right, Rick, thank you. Rick Santelli, as we await Sara's interview with Israeli Prime Minister Benjamin Netanyahu, let's get to Ayman Javaruz in Washington. He has developments this morning on the war with Iran. Ayman.

Ayman Javaruz (4:22)

David, Sara's interview with Benjamin Netanyahu couldn't come at a more dramatic or important moment in the relationship between the United States and Israel. It has been a wild week in that relationship. We saw the President of the United States in a podcast interview with the New York Post this morning, confirming that in a call with Benjamin Netanyahu earlier this week, he called the Israeli Prime Minister f-ing crazy, the President saying, well, I was a little bit perturbed about Netanyahu's continuation of an invasion of Lebanon in pursuit of Hezbollah. That has been the bone of contention throughout the week. So how did we get here? Let's go back to Monday.