10AM Hour: Golman’s Frist Reaction to the Jobs Report, Cybersecurity CEO on Rogue AI Hacks, Iran Proposes Banning U.S. & Israeli Ships from Strait of Hormuz 8/7/26

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**Carl Quintanilla** (0:58)
Good Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Seema Modi here at Post9 of the New York Stock Exchange. David and Sara are off today. Stocks mostly higher this morning and yields are definitely down following this morning's jobs miss. We're going to get the first reaction from Apollo's Torsten Slock. Later on Jan Hatzius from Goldman, including what it means for the Fed's next move. Plus another rogue AI hack in the news. We'll talk to the CEO of cybersecurity firm SentinelOne about the concerning trend as China's moonshot now says its Kimmy model also broke out of its own testing environment. And then shipping and logistics expert Ryan Petersen from Flexport's with us, as the fate of Hormuz remains a major question mark for the global economy.
Let's get straight though to the jobs number. A bit disappointing, payrolls down by 23,000 in July. Joining us with this first reaction here at Post9 this morning is Torsten Slock, Chief Economist at Apollo. Good to see you, T. Happy Friday.

**Torsten Slock** (1:51)
Thank you.

**Carl Quintanilla** (1:52)
Any hair on this number that makes it less reliable or is this a real picture of what's going on?

**Torsten Slock** (1:56)
Well, there were two underlying problems. One problem was that there was a very negative print, 50,000 in local government education. That's a little bit unusual. July, summer vacation, could there be something here going on that this was just a seasonal adjustment problem? Another quirk was in the leasing hospitality data, which also had some numbers that looked like maybe the World Cup was also playing a role in holding down the headline number.
So, all those quirks aside, the bottom line is still that, well, the unemployment rate did decline. There was something with the participation rate. And if you take those quirks out, you get a number that's not too far away from what the consensus expected. So the bottom line is, I think it's fair that the market is saying rates have to go down a little bit. Maybe Fed hikes have been pushed out a little bit. But for now, the key point we're waiting for is, of course, CPI next week, which will then tell us what is on the agenda for the Fed when they go into their September meeting.

**Carl Quintanilla** (2:43)
I'm thinking about revisions, negative, wages, weak. And then household decline. Doesn't that in general point to a softening picture? Not to mention ADP, for example.

**Torsten Slock** (2:54)
It does indeed point a little bit weaker. But the key issue again is, well, how big are these quirks? Are they just small things where we don't really need to worry about it? Or is it actually something that's so big that it could have been a more normal number if we had not had these unusual statistical things? So yes, you're right, Carl. We should view this, which is what the market is doing, as maybe things are a little bit weaker on the labor market. And that's why we're back to watching. And now it is really inflation, because the labor market has been definitely the backseat of the car here for the Fed. Most of the focus has been on inflation.

**Seema Modi** (3:23)
Without Kevin Walsh's forward guidance, how important will Jackson Hole be? And what do you expect he'll say there that could provide some more clarity on the path forward?

**Torsten Slock** (3:30)
Well, I think, I mean, Walsh has been very unfairly treated because a lot of people think that forward guidance should be removed. This is not only Walsh. This was also Bill Dudley has been saying this. There's also papers by Jeremy Stein, others that have argued actually for years that removing forward guidance is a good idea. So that's why I do think that we will get an opportunity in, when it will come to August and listen in a few weeks to what Walsh is saying. And I do think we will and probably get more clarity around what is the view on all these things that the committee has been discussing on the economic outlook and forward guidance, because this is probably a good opportunity for the FOMC and in particular for him to come out with his views.