10AM Hour: Snowflake & HPE CEOs, Is a Rate Hike in the Cards? 9/3/26

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**Carl Quintanilla** (1:05)
Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Leslie Picker and Mike Santoli here at Post 9 of the New York Stock Exchange. Sara Eisen and David Faber are off today. Market with a nice second bounce in a row. We're going to get the latest read on the AI trade today from the three CEOs of big companies, Snowflake, HPE and NetApp. Snow up more than 20% this morning. NVIDIA makes it official. Buying Hugging Face for nearly $13 billion. That does make it NVIDIA's second biggest purchase ever. What it means for both companies coming up. And then some questions about whether a hike really might be in the cards for the next Fed meeting after comments from Waller today as Fed hike odds for September are now below 50 Reaction from DoubleLine's Jeffrey Sherman in just a minute.

**Leslie Picker** (1:49)
ISM Services just crossing the tape. Rick Santelli has that for us. Hey Rick.

**Rick Santelli** (1:55)
Hi Leslie and Dee. Now these are August fresh reads, unlike the S&P which were changing mid month reads. So for August 55.4, better than expectations. That will be the best read since May of this year. Now if you look at prices paid, it's also higher than expectations. But unfortunately in this category, that's not a really good thing. Hotter prices, 72.6. We're looking for a number at 70, sequentially following 70.3. So that is a big bump up. That equals where we were in the summer of 22 To find a higher prices paid, we're to July of 22 So August 22 equals the same number at 72.6. July of 22, you find a higher number. On the new order side, this is a nice one. 60.9, this is 4 plus points, better than we are expecting. Rear view mirror, 57.2. 60.9 will be the best read since February of 23 That is indeed good news on the service side. And here's the fly in the ointment. Okay, on a week where we have employment, this number coming in light again, 47.8. We're looking for number north of 48
Now 47.8 will be the weakest number. Actually, it was so weak last month at 47.4, this is the strongest number since June when it was 51.2. So now we have another number in contraction territory, and we really need to monitor the employment side. You know, we saw initial continuing claims remain very well behaved. But on the service side, the employment number has been a little bit soft. We're going to be looking forward to that labor market number on Friday. And you pointed it out, Carl. Waller Commons at 8.3 Eastern really made a very big difference. We now have a bull steepening going on with rates dropping faster in the short end, but all rates are lower. Watch that dollar-yen trade. The dollar really getting hit hard this morning, and there has been no intervention that I'm aware of. And we want to really make sure that the probabilities by the end of the day remain under 50% because that's big news indeed. Carl, back to you.

**Carl Quintanilla** (4:10)
All right, good stuff, Rick. Thank you so much, important data. Our thanks to Rick Santelli. So, Mike, did Waller foam the runway today?

**Mike Santoli** (4:18)
I think to a small degree, yes. Took the edge off of yield. They actually were already kind of hesitating. They were not kind of up before he mentioned it, but you're still seeing the two-year yield even kind of regain just a little bit of what it lost. So I think it's definitely probably market positive that there's not kind of this headlong rush to hike in September. On the other hand, his comments are very contingent. It's dependent on next week's CPI, it seems.