10AM Hour: Squawk on the Street 6/29/26

SPEAKER_1 (0:00)

LinkedIn is pretty great at a lot of things, like helping you tap into the latest trends and insights in your field. We cannot stop your coworker from tapping her pencil.

LinkedIn can help you find new jobs that align with your career goals. We cannot help you find the source of that weird smell in the office fridge.

SPEAKER_2 (0:18)

Ew.

SPEAKER_1 (0:18)

And while we can't stop your coworkers from bringing their hobbies into the office, LinkedIn can help you bring your career to the next level. LinkedIn is the network that works for you.

SPEAKER_2 (0:30)

This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information-packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com/marketupdatepodcast or find Schwab Market Update wherever you get your podcasts.

Sara Eisen (0:58)

Good Monday morning. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber. We are live as always at Post 9 of the New York Stock Exchange. Stocks are higher after brutal week for the bulls. As we count you down to the end of the first half of the year, we're going to ask market expert, Mohammed Al-Aryan, whether he thinks the volatility that we've seen lately is here to stay. Plus the CEO of Data Center Company applied digital with us to talk about the latest in the AI trade. That's stock up nearly 300% in a year. Also, I had Comcast shares are jumping this morning as the company undertakes another spinoff. But well off their highs of the morning, we've got the latest details. Also, it is Supreme Court Opinion Day. Of course, we are awaiting that decision still on President Trump's authority to fire Fed Governor Lisa Cook. We'll bring you any headlines on this as soon as we get them. But guys, this is a big week in the macro world. We'll get the jobs data on Thursday, the holiday shortened week, and a big focus will be hearing from central bankers themselves. The ECB has its big sort of Jackson-Hull style meeting in Cintra, Portugal this week. We'll be moderating the key debate on Wednesday on the economy. We'll bring it to you live with the heads of the Federal Reserve, Kevin Warsh, Christine Lagarde of the ECB, Andrew Bailey of the Bank of England, and Tiff Macklem, who's the Bank of Canada. Questions for all of them about where they stand right now when it comes to the battle against inflation and the sort of different approaches we've seen. Lagarde raised interest rates, but has been speaking a little bit more dovishly.

Warsh, we have not raised interest rates, but has been speaking a little more hawkishly. Tomorrow as a preview, I'll get you an interview with the Cleveland Fed president, Beth Hammack, who is a hawk and a voter, and then Andrew Bailey, the head of the Bank of England, ahead of that tomorrow. So a lot of central banks speak and focus, and the markets will be watching closely. I just want to give you a snapshot of where these major central banks are on interest rates because we're not all at the same place right now, and the Fed and the US actually has some room, if you look in terms of where we are on the rate versus the ECB versus the Bank of England. I mean, we've all followed the same direction. We hiked during the big inflation in 2022 and then things have come down a little bit further, but you could see the ECB raised a little bit, but it's still not caught up with the Fed. That's just where we are. And then on inflation, everybody's above target. The targets are all 2% and Europe has a single mandate of 2%. We also have jobs in our mandate. But as you can see, the latest data show we're still a little hot. We're running hot.

And the question for I think central bankers, guys, is it a temporary phenomenon because of oil prices and the war with Iran? And therefore, they can look through that. Or are we going to see some responses? And with war specifically, it's about the communication and the balance sheet and monetary policy. All big outstanding questions as we have this new regime with this new Fed chair.

Carl Quintanilla (3:53)

It is a huge debate. PCE last week, I know you were out a couple days, but core services, six-month annualized, running 4-2.

I don't know how much that has to do with the war itself, but that is a big number.