10AM Hour: SpaceX Falls for First Time, HPE CEO on Nvidia Partnership, U.S. Oil Reserves at Lowest Level Since 1983 6/17/26

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Sara Eisen (1:00)

Good Wednesday morning, welcome to Squawk on the Street. I'm Sara Eisen with David Faber. We are live as O8 from Postmine of the New York Stock Exchange. Carl Quintanilla has the morning off. Coming up this hour, SpaceX in the red this morning for the first time since going public. And the options market is pricing in some huge potential moves in the coming months. We've got the numbers for you. Plus, Kevin Warsh takes center stage, what he might say at today's Fed News Conference and how his comments could move the market in just a moment. Also ahead, the CEO of HPE, as the company expands its partnership with Nvidia and announces new deals around Quantum. Also, President Trump expected to hold a news conference this morning from the G7 Summit. We'll take you there live as soon as that happens.

David Faber (1:40)

First though, business inventories just crossed the tape. Rick Santelli has that for us. Rick.

Rick Santelli (1:45)

Yes, David, this is our April read on business inventories. We're expecting up half of 1% and that's exactly what arrived, up half of 1%.

And if we look at last month, last month's up 9 10s, gets revised to up 1%.

And even at 9 10s, without that revision, it was the best going all the way back to June of 22, almost four years. So the.5 puts us back just a bit. The February read was.4, so.5 is the second best read of the year. Of course, the previous month is the best, as I pointed out. We see that yields are moving down slightly. We're down a couple of basis points in a 10 year as we await the Fed's decision at 2 o'clock Eastern. The probabilities are very low for any type of rate change. But of course, we're looking to see how Chairman Warsh is doing for his first meeting and deals with his first press conference. We also have pending home sales out for the month of May. And for that, we head east to Diana Olick. Diana.

Diana Olick (2:47)

Well, thanks, Rick. Pending home sales in May rose 3.8% month to month, according to the Realtors. That's a beat. The Street was looking for just a 1% gain. Sales up 4.8% year over year. Now, this count is based on signed contracts. So that's people out shopping in May and inking deals when mortgage rates were actually rising again. Remember, they spiked higher at the start of the Iran War in March, then came back a bit in April, but then moved higher again in May. So, maybe buyers are just getting used to all this volatility. Regionally, sales were up everywhere, but strongest in the Northeast and Midwest. The Midwest is, of course, where homes are cheapest. The Realtors' Chief Economist Lawrence Yun called it a late spring buyer rush, an indication of pent up housing demand and consumers acceptance of above 6% mortgage rates as the new normal. He also added that more supply is needed to moderate home price growth, which is still positive nationally. Sara.

Sara Eisen (3:40)

Okay. Thank you, Diana. Diana Olek. Adding to that, we got some positive tones on the consumer. Remember how we've been talking about how resilient the consumer is and how they're holding up? Retail sales were out this morning and it was a beat. The headline number, the control group, which goes into GDP, X autos, X gas prices, and here was the number of 0.9 percent, up from 0.4 percent gain in April. So this was a two-month high. If you strip out autos and gas stations, it was still a 0.5 percent increase. The caveat on this report is it's not adjusted for inflation, so there's a little bit of an inflationary impact there. But most economists are seeing this as strong evidence that the consumer is handling the price at the pump okay. Saw a big jump, for instance, in online sales, which I think is reflective of overall demand. So that should help going into a Fed meeting where, David, there's some drama and intrigue just about how Kevin Warsh sounds, what kind of tone he strikes, does he say anything about plan changes, regime changes around things like communication. But nobody's expecting any big change in policy.