10AM Hour: Morgan Stanley’s Adam Jonas on SpaceX, Former Defense Sec. Esper on Iran Ceasefire, RXR CEO 7/8/26

Megan Casella (0:00)

The board recommends approving.

Oliver Renick (0:01)

Regarding that seat on the committee, we're promoting to most quarterly earnings.

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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, live at Post 9 of the New York Stock Exchange. Sara Eisen is off today. Stocks getting hit here this morning. Oil is up after the president said the ceasefire with Iran to him is over. We're going to talk about the fallout for global markets and we'll head to a NATO summit for the expected presidential news conference this hour. A rare interview this morning with Morgan Stanley's Adam Jonas. His first appearance in around five years after just initiating SpaceX with a big upside target. And the Evercore's Julian Emanuel is with us while he says the developments in the Middle East today make the Fed minutes a huge market event.

David Faber (1:39)

First, so let's get wholesale inventories. Just crossed the tape. Rick Santelli has the numbers for us.

Carl Quintanilla (1:44)

Rick.

Rick Santelli (1:46)

Yes, good morning, David. Wholesale inventories, this is a May final read. So we take our mid-month read, which was up 3 10s, and it now moves into a much weaker mode, only up 1 10th. Second week is to the year outside of January, where it was a minus 3 10s. And this is notable. We've seen a real slowdown in the growth of inventories.

What we see is 1.5 in March, 0.7 in April, and obviously this up 1 10th in May. That deceleration most likely will prove to be a bit of a subtraction, ultimately, when we receive Q2 GDP. On the sales side, this is a fresh number, 3.4%.

That is 4 times more than we were expecting. And in the rearview mirror, our last look of 2% becomes 2.2. 3.4 is the best sales number, going all the way back to Jan of 22 And indeed, it is good news. And remember, we see the trade deficit going up. We see these inventory numbers moving down. So this is good to see sales picking up, of course, as we potentially see better demand. Also, some of the large, durable goods, like washing machines, are decelerating for more of a less durable type good. And we're moving from more of a essential to a less essential commodity. So we want to pay attention to some of the price action, especially when we receive the newest version of retail sales. Carl, back to you.

Carl Quintanilla (3:10)

All right, Rick, we'll see you in a bit. Rick Santelli. Stocks did fall in pre-market trading after the president said that for him, the ceasefire with Iran is over. And he just warned a few moments ago that more strikes on Iran could be coming tonight. Let's get to Megan Casella now with the latest. Morning, Megan.

Megan Casella (3:26)

Morning, Carl. That's right. The president's frustrations with Iran clearly boiling over after a series of attacks on commercial ships in the Strait of Hormuz. The US military responded last night with attacks that Defense Secretary Pete Hegseth says this morning targeted anything that Iran used to harass shipping in the Strait.

Now, the president says more strikes are likely coming.

Donald Trump (3:46)

And so we hit them very hard last night. Very, very, probably hit them hard again tonight. I'll give them a little warning. We're going to hit them hard tonight. But we'll see how it all works out.

Megan Casella (3:56)

The president also reupped his threats to take out Iranian infrastructure, some bridges. He suggested the US could take over Karg Island. That's Iran's oil export hub. So really escalating his rhetoric against Iran here. For all the attacks that we've seen traded between the US and Iran since the ceasefire first took effect in April, this is really the first time, guys, that we've heard the president say outright that it's no longer in place. That said, he and other officials have said that negotiations with Iran can continue. But the president this morning casting significant doubt that a diplomatic solution is still possible.