10AM Hour: Warsh's Next Moves, SpaceX Rally Takes A Breather, & Accenture CEO Defends Results 6/18/26

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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 (1:05)

Good Thursday morning. Welcome to Squawk on the Street. I'm Sara Eisen with David Faber. We are live as always from Post 9 of the New York Stock Exchange. Carl has the morning off. Coming up, Intel surging after President Trump said Apple has agreed to work with the company on Made in America chips. We'll talk to longtime analyst Ben Reitzis about the news. Plus, look at Accenture shares. They're at the bottom of the S&P this morning, down 16%.

After a mixed quarter and news of a number of acquisitions, CEO Julie Sweet will be with us. And it's one of the last Supreme Court opinion days of the session. We're still awaiting a potential decision on President Trump's authority to fire Fed Governor Lisa Cook. We'll bring any headlines as we get them.

David Faber (1:45)

First, though, we do have some economic data just crossing. Rick Santelli has that for us. Rick. Yes.

Rick Santelli (1:50)

Good morning, David. Leading economic indicators for the month of May. We're looking for a number around up one tenth of a percent. And that's exactly what we end up with up one tenth of a percent. And last month gets revised higher from one tenth to up two tenths, which means we have back to back positive numbers. We haven't had back to back positive numbers in LEI since the end of 2021 Yes, leading economic indicators have not been leading us higher, but indeed it does show the weakness of this statistic because as equities continue to grow and the underpinnings of the economy remain somewhat solid, leading indicators has been mostly on the weak side, so it's nice to see it moving up. The high water mark this year was February at up three tenths, and that, of course, as you guessed, it was the high water mark going back to DC of 2021

Yields are moving down today in the curves, flattening. Yields were moving up yesterday and the curve was flattening. So flattening is the watchword. As a matter of fact, that two tenths spread is the flattest since March of 25 on a closing basis. Sara, back to you.

Sara Eisen (2:59)

Okay. Thank you, Rick. Rick Santelli, watching the 10-year yield. We're still digesting what we got from the newly minted Fed share. Kevin Warsh yesterday at the news conference sparked a sell-off in stocks. No question there's a new sheriff in town. Sounded different, felt different, a lot shorter, different tone.

But the emphasis and I think the market takeaway is that he made it clear he's very serious about fighting inflation and price stability. Listen.

Kevin Warsh (3:26)

I've said for years, inflation is a choice. You bet it is.

And today, I'm announcing that this committee unambiguously and unanimously have decided we are going to deliver on that. This committee will deliver price stability. In a way, the full range of ideas for delivering price stability, we have the capability and commitment to deliver on our price stability objective of 2%.

The way to get monetary policy right is to deliver on the remit that Congress gave us, to deliver on price stability. To be clear, the Fed will deliver price stability. But ultimately, the goal that I set at the outside, deliver on the price stability objective. I had a great old mentor named George Shultz, and his mantra was press conference are useful. But when you have one, you want to make sure you have something important to say. Today, I think we had something important to say about our commitment to deliver on price stability.

Sara Eisen (4:21)

The guy wants to deliver on price stability.

David Faber (4:23)

Did I mention price stability?

Sara Eisen (4:24)

But that was a message, right, to the market. That it's not okay that the inflation rate has been above the Fed's target for a long time, and the markets took it as this is going to be a more hawkish Fed. Now, he did stop short of saying hikes, saying what we're thinking of doing. I mean, he was very clear. He does not want to do forward guidance. He didn't even participate in the dots with his colleagues. And the dots were hawkish, too, by the way.