11AM Hour: EQT Chairman, TD Bank Vice Chair & Anthropic Gets Philanthropic 10/19/26

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Sara Eisen (0:59)

Good Monday morning. Welcome to Squawk on the Street. I'm Sara Eisen with David Faber who stayed with me. Lucky me from the New York Stock Exchange. Carl has the morning off. Today on the show, TD Banks, Jeff Solomon is with us as Wall Street looks to bounce back from last week's tech and AI jitters. Why he says focus should now be on the economic return from the AI capex boom.

David Faber (1:18)

Plus Gartner predicting that 80 percent of neocloud companies will cease operations by 2030 The forecasters behind that report will join us and explain this hour.

Sara Eisen (1:28)

And could Anthropix shake up the global philanthropic landscape, their new move, the AI giant launching a massive benefit fund with 5 percent of its shares. We've got all the details for you. First up though in the markets, a little bit of a rebound here in the S&P 500 and the NASDAQ. S&P have 7 tenths of a percent. The NASDAQ up one and a half percent. It's being driven by Amazon and Micron, AMD, NVIDIA, a lot of the stocks that get hit hard last week amid the AI sell off. Meta, Netflix, both are down ahead of results. It's really information technology, consumer discretionary and communication services. All the other sectors are down, but that shows you just how heavy of a lift those groups do right now, how big those market caps are in this market.

David Faber (2:08)

Yeah, including the likes of NVIDIA and AMD, which are up. Let's focus on that rebound in tech today. CNBC's Senior Markets Commentator Mike Santoli joins us here at Post 9 You know, we start off every morning on Squawk on the Street now, me, Jim and Carl, typically talking about CoreWeave. It's about 3%.

Not sure it's leading here, but at least giving some comfort.

Mike Santoli (2:33)

It's not leading, but it's not worsening. And I think it's essentially a pretty good time. I think CoreWeave and Oracle, to a maybe even more important degree, are the sort of linchpin between, are we going to continue to finance things the way we have before? And is financial condition tightening going to have a broader restraint on what markets can do? I do think Thursday and Friday, the intensity and the messiness of some of that intraday selling, the sort of real rapid reduction in risk that we saw, grab for put options to hedge and all the rest of it, did create a tense tone going into the weekend. And we're exhaling a little bit here because if you don't see a lot of force selling at the open and it feels like maybe credit spreads can stabilize a bit, which they have this morning, then okay, let's figure out if we can position for earnings. I do think you've repositioned in terms of the big money in a much more defensive fashion. And so you have the S&P right here. It has not broken this trend. It's been very, very tough to get out of this range for months, but we're just kind of playing with the 50-day moving average. It's really all the action is happening below the surface. NASDAQ 100 bouncing today, and it has to kind of bounce here to preserve this trend. See, it's kind of sitting on that shelf that goes back to May.

So, we haven't really made much headway, and I think it's the answer to everyone who says, hey, earnings are going to bail us out. And they might, because expectations and valuations are down, but earnings were amazing in the second quarter, and we're kind of trading where we were before those numbers came out. So, I think that the fact that the biggest contributors of rapid earnings growth are exactly the areas in the AI food chain that we're reluctant to put a heavy valuation on and extrapolate earnings in years to come creates this interesting fix for the market. Final thing I wanted to point out, MAG7 and S&P Energy, same chart for two years. So, it sort of shows you, there's been kind of a flip in terms of where people have managed to find the absolute upside this year.