11AM Hour: Cerebras CEO Talks Results, GEV's Turbine Dreams, & Trump's Housing Pivot 6/24/26

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Carl Quintanilla (1:01)

Good Wednesday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Leslie Picker here at Post 9 of the New York Stock Exchange. Sara Eisen's off today. Shares of Cerebras tumbling today after its first earnings report since the IPO.

Jib Maker forecasting some shrinking margins. Company CEO is gonna join us first on CNBC to talk about the quarter and the outlook.

Leslie Picker (1:18)

Plus Congress passing the largest housing affordability bill in decades, but the president reversing course, canceling a plan signing next hour. We'll discuss what it means for the housing sector with the CEO of TriPoint Homes.

Carl Quintanilla (1:31)

Speaking of affordability, this Bezos-backed electric pickup looks to challenge Ford for the title of the cheapest EV truck in the country. You'll hear why Slate Auto CEO expects every vehicle will be gross margin positive. As for the market today, really interesting action with oil. West Texas below 70 for once, Brent back below 74 Yields are lower, the long end coming into 485

As we see consumer discretionary really outperforming travel names, Expedia up 7 as response to some of what's happening in the Gulf.

Leslie Picker (2:04)

Yeah, a little bit of a breather today. For the first time in nearly two years, the Dow Jones industrial average is getting a new member. Let's get to Mackenzie Segalos with those details. Hey, Mac.

Mackenzie Sigalos (2:14)

Hey, Leslie. So Alphabet shares are trading higher this morning up around 2 percent now. As the company gets set to become the Dow's latest mega cap tech member, joining Nvidia, Amazon, Apple, and Microsoft in the index.

And because the Dow is price weighted, Alphabet will have immediate influence when it joins Monday, ranking fifth in the 30-stock average. That is a big change from Verizon, which should become one of the smallest weights in the Dow. So for the index, this is really a catch-up move. It gives the average more exposure to the parts of the market that have been leading, AI, cloud infrastructure, and advertising. For Alphabet, though, this isn't really a signal of major near-term demand for the stock. There's actually much less money directly tied to the Dow than the S&P 500, and recent Dow editions haven't been automatic winners. NVIDIA and Apple both traded lower two months after joining, and in some cases, the stocks that got kicked out have done better. Exxon outperformed Salesforce in the aftermath of that swap. We saw a similar dynamic when NVIDIA took Intel's place in the index, but the Dow nod is coming during a rough stretch for Alphabet. Shares are coming off their worst trading day in more than a year. Investors have been punishing the company for spending more, with fewer clear payoffs. SpaceX is starting to compete with Google for compute contracts. Open source models are pushing model prices lower. And from what I'm hearing out here in the valley, two top AI names leaving deep mind, including one tied to Google's coding product, raises serious questions about whether Google's in-house AI stack is keeping pace. So the Dow edition gives Alphabet a much needed vote of confidence from the index committee, just as investors are starting to lose patience with the stock.

Leslie Picker (3:52)

Guys, that's a good point about the timing for Alphabet Mac. Thank you so much. I appreciate it. Mackenzie Sigalos there. For more on the markets, let's bring in Young Yoo Ma, PNC Asset Management Chief Investment Strategist, who joins us here on set. Young Yoo, thank you so much for making the trip down to Post 9

So you have this kind of enduring question right now as to whether the volatility we've been seeing is a byproduct of market structure or a fundamental rethink of the AI narrative. I'm just curious where you stand on that basis.