11AM Hour: Former CFTC Chair on Prediction Markets, Lululemon Settles Proxy Battle & Zscaler Sinks on Earnings 5/27/26

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Sara Eisen (1:03)

Good Wednesday morning. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla, live from Post 9 of the New York Stock Exchange. Today, President Trump entering the predictions markets fight against state gambling pushback, pledging to ensure markets thrive, and backing his own federal regulators in the process. We'll discuss with former CFTC Chair Gary Gensler.

Carl Quintanilla (1:22)

Plus AI demand fueling this recent market run, still hovering near record territory. We're joined by one strategist who says the major infrastructure buildout will end with a productivity shock, and we'll discuss how you should be positioning from here.

Sara Eisen (1:35)

Plus, what earnings prints from the likes of Dix and Capri say about the current state of the American consumer?

Carl Quintanilla (1:42)

Astral markets right now, relatively flattish action on the S&P, holding above 7,500. Dow is definitely being led by some defensive names, Procter, Nike, Home Depot, names that have lagged so far this year. Got some relief in yields, and of course, the big story is oil with WTI back to 91, Brent briefly below 95

Sara Eisen (2:02)

And guess who benefits? The cruise lines, the hotel companies, those that were vulnerable on oils right up. This hour, we are monitoring President Trump. He's holding a cabinet meeting. Our Megan Casella joins us now with what could be on the agenda. Megan.

Megan Casella (2:15)

Hey, Sara. So this is the meeting that we had initially expected would be held at Camp David. Now it will be in the cabinet room at the White House. A change that the president says was made due to weather. So this is the 12th time that we know of that the president has convened his full cabinet like this, and we have been told to expect full attendance. It will be on camera, open press, at least at the start, the way these usually go, we hear from the president, and then he tends to go around the room, has each official give an update on his or her agency, and then they usually take questions from the press. But the biggest news here would likely be any update on the Iran war. Iranian State TV this morning is claiming to have a draft of a framework of an agreement with the US. And they say the draft says Iran will restore commercial traffic in the Strait of Hormuz to pre-war levels within a month of it being signed. We did just hear from the US side on that report, the White House knocking it down, saying not to believe it. So expect that to come up during the meeting, especially if some of the officials leading negotiations with Iran are in attendance. Steve Wittkopf, for one, he's the president's special envoy for the Middle East. He's not technically a cabinet member, but he has attended these cabinet meetings in the past. He could be there today to give an update on all of this and on where things stand in general.

Carl Quintanilla (3:24)

Guys, Megan, they did respond a bit to this Iranian state TV report, right? About the draft of the memo, calling it essentially false.

Megan Casella (3:34)

That's right. Just in the last few minutes, the White House putting out on X saying that this is not something to be believed. And they have maintained throughout these negotiations, guys, we've tended to see some details come out through Iranian state media, the US side, the White House often never responding to them at all. And then through it all, tending to say the only real news is what you hear from the White House or even more often what you hear from the president directly on this. So they knocked that one down. We don't know what Iranian state media was referring to when they said they had this draft. I will emphasize though, even though that initial report did move markets this morning, they said it was a draft of a framework of a memorandum of understanding. So look at all the sort of caveats that were in that were clearly not exactly right on the precipice of a deal, guys. Right.