11AM Hour: IMAX CEO on Sale Rumors, Eli Lilly Buys Vaccine Makers & the Benefits of a SpaceX-Tesla Merger 5/26/26

SPEAKER_1 (0:00)

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SPEAKER_2 (0:30)

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SPEAKER_3 (0:50)

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Meg Tirrell (0:57)

Brought to you by the National Council for Mental Well-Being, Shatterproof and the Ad Council.

Carl Quintanilla (1:06)

Good Tuesday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Sara Eisen, live at post nine of the New York Stock Exchange. Today, signs of a potential US and Iran deal, which could reopen the Strait of Hormuz. But we're joined by one oil and security expert who says the president will have to make some difficult concessions.

Sara Eisen (1:21)

Plus, with that massive SpaceX IPO on deck next month, one looming question remains. Will Elon Musk move to merge it with Tesla? We'll explore the potential benefits and setbacks of such a move.

Carl Quintanilla (1:33)

Disney's latest Star Wars chapter, Mandalorian and Grogu, the first in the franchise to be so-called filmed for IMAX, it did conquer the holiday weekend. We'll discuss box office expectations with Rich Gelfand of IMAX, as well as these reports that the company might be seeking a buyer. As for the market's all-time highs for the S&P, 75.3 Dow has given some back and is moderately red. Pretty mixed picture sector-wise, although industrials and information technology up almost 2% doing some heavy lifting today.

Sara Eisen (2:04)

I mean, look at the split personality between the AI and the non-AI, with the NASDAQ surging 1.25%. Thank you, Micron, AMD, Broadcom. The chips, the chip names are really working today. Everything else a little bit weaker. Financials under pressure. Same with energy and discretionary. We'll start with the latest on the war in Iran. Ayman Javarz joins us now.

So Ayman, some hope in the market here if you look at the lower price of oil.

Eamon Javers (2:28)

Yeah. Hey there, Sara. Iran is accusing the United States of violating the ceasefire with strikes in southern Iran late yesterday. In a statement, the Iranian Ministry of Foreign Affairs said these aggressive acts coinciding with ongoing Pakistan-mediated diplomacy once again exposed America's bad faith and malice toward the Iranian nation, the region and the world. The statement also said the Iranians would not leave aggression unanswered and would not hesitate to defend the country's sovereignty.

Now, that comes after a weekend of negotiations produced no breakthroughs and no deal to end the war. But on social media Monday, President Trump mocked critics who suggested that he risked signing off on a deal that failed to achieve his war aim of ending the Iranian nuclear program and left Iran in a stronger position than before. He wrote, I laugh at all the Democrats, rhinos and fools who know nothing about the potential deal I am making with Iran. Meanwhile, Iran's foreign ministry spokesman said negotiators were not discussing nuclear details. He also said that although Iran is not collecting tolls in the Strait of Hormuz, Iran is drafting a protocol with Oman for ships to transit that would involve paying fees to the two governments. And guys, we're learning that President Trump is expected to host a cabinet meeting at Camp David on Wednesday as those Iran talks continue.

Not yet clear what exactly will be discussed, but that's a venue that he doesn't use that often, so it may indicate some change in the president's thinking. Guys, back over to you.

Sara Eisen (4:01)

I think also, and you mentioned this last hour, the president using this deal to address the Abraham Accords and potentially expand them by getting other countries like Saudi Arabia or Qatar to join the Abraham Accords is really interesting, especially for long-term investors here that are looking at that region and the prospects for it. Has there been any response to that, Amen?

Eamon Javers (4:23)

Yeah, we haven't seen much enthusiastic response yet to that, and I think you can see why the president wants it, Sara, right? Because that would give the president the ability to end the war in Iran and say, well, look what we got. We got this broader consensus in the region that Israel is a country that we can do business with and we can have some security and kind of lock down the status quo for some period of time and provide some stability for the economies there to grow.