10AM Hour: Nvidia’s $500B Deal with Wall Street, GXO Logistics CEO, The Next Test for the AI Trade 8/11/26

Sara Eisen (0:00)

The board recommends approving...

SPEAKER_2 (0:01)

Regarding that seat on the committee, we're promoting...

Seema Modi (0:02)

to most quarterly earnings...

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Sara Eisen (1:00)

Good Tuesday morning. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber. We're all back together live at post nine of the New York Stock Exchange. Coming up, Jensen Wong's new big concept for AI. We'll talk about the half a trillion dollar financing deal between Nvidia and Wall Street's biggest lenders with tech investor Byron Deeter. Plus, we're getting you ready for two key earnings reports after the bell that puts out the tone for the tech trade from CoreWeave and Super Micro. And we'll talk to the CEO of GXO Logistics about how the company is positioning itself as an AI player.

Carl Quintanilla (1:32)

First, though, let's get some existing home sales just crossing the tape and get to Diana Oleg with the number. Hey, Diana.

Diana Olek (1:39)

Good morning, Carl. Existing home sales in July dropped 1.7% to a seasonally adjusted annualized rate of 4.06 million units. That's pretty close to expectations.

Sales were up 0.7% from July of last year. Now, this count is based on closing, so it's contracts likely signed in May and June when mortgage rates didn't really move all that much, hovering in that higher range around 6.6% on the 30-year fixed. As for inventory, there were 1.54 million homes for sale at the end of July. That's down a little less than 1% year over year, now at a 4.6-month supply.

Tight supply continuing to pressure prices. The median price of a home sold in July was $434,100, an increase of 2% year over year. Now, 26% of transactions were all cash, down from 31% the year before. 14% were investors, down from 20% a year ago. Speaking of investors, just a programming note, we're here at the headquarters of Invitation Homes, the nation's largest single-family rental company, for an exclusive interview with CEO Dallas Tanner, based first since President Trump called for a ban on institutional rental investors back in January. That ban is now law, and we'll have the interview coming up in the next hour of Squawk on the Street. Back to you guys.

Sara Eisen (2:56)

Okay, well, we'll be back to you for that. Thank you, Diana, Diana Olek. So Wall Street going big, all in on AI with this new financing deal. Main Street, though, is still not convinced. Just wanted to highlight the impact of these data center builds on local communities and start with a Gallup poll, which really shows the opposition across this country to data center construction. Seven out of 10 Americans oppose building a data center in their area. 71% basically say they strongly or somewhat oppose having a data center built. Only 27% strongly or somewhat favor having a data center built in their area.

But there is increasing economic evidence that it's very helpful and beneficial to have data centers built. Look, we hear a lot about the complaints on noise and on water and on energy costs. So I just wanted to present an alternative view. The NFIB, Small Business Optimism. You don't think of small business as a big beneficiary right now, the data center boom, but here's what we got in the survey today. Capital investments have been driving economic growth, primarily AI investments in ships and structures to house them in. Although this is not primarily a small firm activity, it looks like spillover business opportunities are reaching them. I just thought that was notable and somewhat surprising that small business is getting a little bit of a tailwind from the massive buildout of AI. And then this Wells Fargo data that they've been increasingly trying to gather that shows local communities are seeing material economic benefits in places like new housing building units.