10AM Hour: S&P 500 & Dow Hit New Highs, Early SpaceX Investor Peter Diamandis, Match Group CEO 8/5/26

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

**SPEAKER_2** (0:01)
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**SPEAKER_3** (0:02)
to most quarterly earnings...

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**Sara Eisen** (1:00)
Good Wednesday morning. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber. We are live as always from Post 9 of the New York Stock Exchange. Stocks adding to major gains on the week, the Dow and the S&P 500 hitting record highs. We'll talk to one expert who says the market is now overpriced and it's getting harder to find opportunities. Plus, SpaceX under pressure after the company's first earnings report since going public, we'll talk to early SpaceX investor Peter Diamandis about the results and Match Group CEO Spencer Rascoff with us as the dating company's stock pulls back on declining revenue for its Tinder app.

**Carl Quintanilla** (1:33)
Got some ISMs today on services. Let's get to Rick Santelli. Hey Rick.

**Rick Santelli** (1:38)
Hi Carl, indeed. Now our last look on S&P PMIs was a final read. This is a fresh July read for ISM on the service side. Headline coming in a bit light at 54.1, light to expectations, but one-tenth higher than our last look at 54 So basically back to back right in that area. And if we look at prices paid, going in the wrong direction. Looking for 65 comes in at 70.3. Also if you look at the rear view mirror, of course, it's 67.7, so this comes to May 71.3.
So it is a little lower than May, but it's definitely higher than our last look, unfortunately, on the new order front. Coming in stronger than expected, much stronger than the rear view mirror. 57.2, that would equate to 57.3 in May. They're all basically going back to May. And finally, on a very important week, where ADP July Reed came in on the light side of 44,000, the employment side is coming in light as well. Sub-50, it's in contraction territory again. 47.4, we're looking for a number over 51
47.4 would be the lightest. Going back to, wow, we're going back to, let's go August, almost a year, last year. And what's really interesting about this is, is that one, two, three, we've only had three reads above 50 this year. So on the employment side, it's been a bit weak. We all know that the Fed did some easing because they thought the labor market was a bit weak earlier in the year, last year. Now we're going to really see if that test holds true with some of the anecdotal evidence showing a little backtracking in the labor space. Interest rates are slightly elevated, mostly because oil isn't having the kind of drop we experienced last couple of sessions. Sara, back to you.

**Sara Eisen** (3:31)
Okay, thank you, Rick. Rick Santelli.
So the focus with these big tech earnings is on CapEx, capital expenditures, just how much they're spending. SpaceX, just the latest. And the stock is being punished a little bit after, here's a great chart that shows how much it's spending on AI relative to both the revenues and the profits that SpaceX is making. $15.8 billion. And that was a huge jump on AI capital spending from $7.7 billion in the first quarter. The overall CapEx numbers on SpaceX were even higher, $18.4 billion. And the CFO, the Finance Chief, Brett Johnson, said that you can expect these kind of numbers over the next two quarter to be similar. And you know how, guys, every so often we take a look at just how much spending is going into AI and how it is driving the economy? Those are the charts that we have for you today, just after another round of earnings and just another round of huge CapEx numbers. Here's a good one, okay? This is data centers construction as a percentage of overall non-residential construction projects in this country, and this is the numbers as of June 2026