10AM Hour: Google Cloud CEO, IBM CEO, Tesla’s Worst Day in More Than a Year 7/23/26

**Sara Eisen** (0:00)
The board recommends approving...

**SPEAKER_2** (0:01)
Regarding that seat on the committee, we're promoting...

**SPEAKER_3** (0:02)
to most quarterly earnings...

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**Sara Eisen** (1:06)
Good Thursday morning. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and Mike Santoli, live from Post9 as always of the New York Stock Exchange. David Faber's off today. Tech in focus as results from Google, IBM, Tesla, Texas Instruments. Give some clarity, also raise some questions about AI spending. We'll talk with analyst Ben Reitzis about all of it. Plus a big first on CNBC interview with IBM CEO, Arvind Krishna. Just a few minutes as the stock comes off its worst day ever, earlier this month after warning around these results last night. Also, Google Cloud CEO, Thomas Kurian will join us for an exclusive interview following Alphabet's earnings that showed 82 percent growth in that all-important cloud unit. But guys, in the world of macro, we are watching oil prices after Brent hits 100 for the first time since May, a potential expansion of the war with Iran as the Iranian-backed Houthis, another terrorist group gets involved and starts shooting at Saudi tankers off the coast in the other important waterway that was being used to bypass the Strait of Hormuz. President Trump holds them accountable.
He put out a post this morning on Truth, said he's very disappointed and could potentially retaliate. Again, any kind of expansion in this means higher oil prices, right? Fewer options to get oil out of the Gulf region. That's problematic. So we're watching that carefully. But guys, it comes against the backdrop of the AI revolution and the massive boom in AI spending, which as we've been talking about every day, that's really what's front and center for the markets and increasingly for the economy. And because we're in earning season, we're getting more evidence that it is helping companies far and wide, not just the semiconductor names or the hyperscalers. I mean, listen to some of these signals that we're getting from other companies, CSX, the railroad company, for instance. We pulled out this quote, steady construction activity continues to support minerals and metals and investment tied to power infrastructure and data center build outs is driving demand in domestic coal, fracsands and heavy equipment. So again, the tech boom and the investment boom, not just helping the tech economy, Dow Chemicals, industrial solutions business reported an increase in net sales with local price gains in all regions compared to the year ago period. Volume growth was driven by increased demand for data center applications, partially offset by impacts from the Middle East conflict. And that was the quote that I really wanted to highlight given some of the angst right now around the conflict, expansion, higher oil prices, higher yields. I mean, we're at the highest ten year yields since January 2025
But look at how much it's being offset by the boom in investment spending around data centers and AI in this country.

**Mike Santoli** (3:53)
I would say not even offset. I mean, the market is trying to get its arms around the voracious appetite for capital and how fast it's being deployed in the capex AI spending build out. It has created the conditions that look almost like an overheat more than anything else, or at least that's what bonds are saying. And the way the market is having to navigate this is, look, since the S&P first got to 7,500 in mid-May, we've been talking about a couple of dynamics. One is, semis perform well at the expense of the spenders, the hyperscalers. So that has kept the tech trade in this offsetting mode. And then if the market wants to broaden out away from tech, it only happens if yields cooperate. So yields down is almost necessary for the majority of stocks to work. So both those things working against the market today doesn't mean that we've kind of fallen out of this range or anything like that. But we have a Fed meeting next week.