10AM Hour: OpenAI’s IPO Timeline, SpaceX’s Next Catalyst, CEO of AI Infrastructure Company Coherent 6/26/26

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Carl Quintanilla (0:51)

Good Friday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Leslie Picker, David Faber, Live at the Post 9 of the New York Stock Exchange. Sara Eisen's off today. Ahead this hour, as this tech sell-off intensifies, we'll talk to long-time market expert Ed Yardeni about how much more pain might be coming. SpaceX marking two weeks as a public company, sitting right around its first trade price, and the next big catalyst for the stock could be just days away. We'll talk about it. And with more questions swirling about the AI build-out, we'll talk to the CEO of AI Picks and Shovels company Coherent, an Nvidia partner who shares have doubled so far this year.

Leslie Picker (1:25)

But first, consumer sentiment data just crossing the tapers. Santelli has that for us. Good morning, Rick.

Rick Santelli (1:32)

Indeed, these are the final reads on University of Michigan sentiment, which means the mid-month reads get tossed. So 48.9 becomes 49.5. The problem is, of course, it's still below 50 We're expecting a number right around 50 If you look at the current conditions, 48.4 deteriorates to 47.7.

And if you look at what lies ahead, expectations, it's the only bright spot. 49.3 mid-month read comes up to 50.7. And that would put it back to a comp of March, the last time it was 50 or higher. And do remember, all three of those indices in the month of April, excuse me, in the month of May, made lows going back to the 1970s. Now, let's look at the inflation gauges embedded in these reports. We're expecting 4.6, that was our mid-month read. It remains there on the one-year inflation. And how does that compare? Well, 4.6 is less than the last two previous months, which were 4.8 and 4.7 respectively. So it comps to 3.8 in March. If we look at the five- to ten-year inflation, it moved lower. 3.4 mid-month now becomes 3.3. That was expected. 3.3 will be the lightest since March when it was 3.2. We see that yields are mostly lower, although when you get to the 20- and 30-year, a little bit different scenario. And as we sit at 4.38 in a 10-year, it's down one on the day, down seven on the week. And the shorter maturities, which have been stubbornly higher than the long end, flattening the yield curve, well, a lot of give back. A two-year right now at 4.08 is down 10 basis points on the week. David, back to you and have a good weekend.

David Faber (3:21)

Okay, I will certainly try my best, Rick, and same to you. Let's get to a story that may be adding pressure overall in terms of the market this morning. The New York Times reporting that OpeningAI is leaning towards waiting until next year to go public.

After initially, and again, this is their reporting, targeting the third or fourth quarter of this year, in part after watching SpaceX shares lose most of their post-IPO momentum. Now earlier this month, I did ask Sam Altman about his thoughts around going public.

Sam Altman (3:50)

I think there is a race to deliver the best technology and build the best business, but going public is a financing event. And I don't think that's one that we're focused on the timing of. We'll do it when we think it makes sense.

SPEAKER_10 (4:02)

But you will do it as well.

Sam Altman (4:03)

I assume we'll do it someday.

David Faber (4:06)

Interestingly, what I've been hearing, and obviously I want to talk to Leslie about this as well, it covers these things closely, it was never really tied to a specific date or even a period of time. So many of the people I've been speaking to had an expectation that perhaps, yes, this company would go public in the fall, let's say, but also could easily fall into next year as an IPO candidate, Leslie. And so I do wonder about the timing of the story and exactly why.