10AM Hour: Wall St. Legend Leon Cooperman, Memory Stocks Bounce Back, OpenAI’s Talent Exodus 8/14/26

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**Carl Quintanilla** (0:52)
Welcome to Squawk on the Street. I'm Carl Quintanilla with Contessa Brewer and David Faber here at Squawk on the Street, the host of the New York Stock Exchange, Sara Eisen's off. Today, Omega Family Office Chair and CEO Lee Cooperman is with us. Markets coming off all-time highs. We'll see where Lee sees value right now and whether he thinks this AI trade is a bubble waiting to pop. Disney's chief, Josh Demaro, one of his first interviews since taking the job, will be live at D23 in Anaheim, and a talent exodus at OpenAI, raising some concerns ahead of any potential IPO. We'll look at the recent departures there and these new reports surrounding the company's financials.

**Contessa Brewer** (1:27)
First, let's kick this hour off with business inventories and consumer sentiment just crossing the tape. Rick Santelli has that for us. Morning, Rick.

**Rick Santelli** (1:35)
Good morning. Thank you, Contessa. Indeed, these are weak numbers. These are our August 1st glimpse, the preliminary for University of Michigan, which has diverged in so many ways with other indices. 51 is the headline number. That's four points lower than the 55 expected. And yes, it's in expansion territory, but sequentially lower than 55.2. That will be the weakest since we're back under 50 in June when we're at 49.5. Now, if you look at the current conditions, very similar scenario. 51.8, we're expecting a number closer to 55 It follows 54.8. 51.8, also the lowest since June, when it was also in contraction territory below 50 Now, expectations, all three, this one's above 50 That is probably the only good news that they are all expanding, but at 50.6, 50.6, that's about five points weaker than expected. Definitely, sequentially lower than 55.4. And in a similar fashion, that would be the weakest, well, not since June. We have to go back just a little bit farther, and we're going to go back to May when it was 44.1.
The expectation indices was the only one in June that was above 50 Now, let's look at the one-year inflation rate. 4.2 expected, a smidge warmer at 4.3.
4.3 would be the warmest since 4.6 in June. Last month, of course, at 4.2 is unrevised. That was the smallest since March, when it was 3.8 percent. And finally, the 5 to 10-year outlook exactly is expected 3.3. Same as the rear view mirror 3.3. And that would mark the fifth month this year of a 3.3 reading. Now, let's move to business inventory, shall we? This is a June number. Expecting up 1 tenth comes in unchanged. Last month, you ended up grabbing your tenth. It was revised from up 3 tenths to up 4 tenths. If we look at what's going on in Fed fund probabilities for the September meeting, you know, it's vacillating anywhere from slightly below to slightly above 30 percent. Many more eyes looking at Bank of Japan for its September meeting, which is looking like a lock for a rate increase. David, back to you.

**David Faber** (3:49)
Rick, I'm going to come back to you for a second just to get your take on that auction yesterday in the 30 year. Just overall, you know, I know you were speaking earlier on Squawk, I think, but I wanted to get your overall. We've started the show here, which is a rarity at 9 o'clock. We're talking about the bond market, you know, we hardly ever do that.

**Rick Santelli** (4:08)
Yeah, no, I'll tell you what, David, there's so many more eyes focused on the non-benchmark 30 year, primarily because it's the highest yield on the curve, at five and a quarter right now. In the auction, well, we had 3s, 10s and 30s, 3s and 10s weren't bad. The 30s were the weakest. I think they're the weakest because there's a little bit of a fear there. The widening of the spreads, for example, between the rate of a 30 year versus 10 year rest of the curve, and it's a little bit more sluggish, not as liquid. I thought the 10 year benchmark went pretty well. Also, there's a bit of contagion, David. Look at what's going on in Japan. They are approaching a 290 yield on their 10 year. That's a fresh 29 year high.