11AM Hour: Impactive Capital's Lauren Taylor Wolfe, Former TikTok CEO Kevin Mayer & GM Tumbles After Earnings 10/20/26

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Carl Quintanilla (0:56)

It's Tuesday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Leslie Picker in for Sara Eisen here at Post 9 of the New York Stock Exchange. Today, Impactive Capital's Lauren Taylor Wolfe warned a year ago that we were quote, absolutely in an AI bubble. As global AI risk fears return, she'll join Faber live from 13D Monitor Active Passive Summit today with her latest outlook.

Leslie Picker (1:18)

Plus, amid continued supply constraints, Apple making a push to expand domestic production of components for its new iPhone models. We'll explain.

Carl Quintanilla (1:26)

Netflix looking to stem its stock slide down 25% this year, set to report tonight with questions swirling over its content strategy. We'll discuss the streaming landscape with former Disney and TikTok executive Kevin Mayer.

Leslie Picker (1:39)

Right now though, markets receiving a bit of an intraday bounce. You can see the Dow of 1.3%, the Russell up 2% and the NASDAQ now in the green up about half a percent, alongside the S&P 500 which is up about 0.7% right now.

Taking a look, Carl, at the banks as well, the biggest Dow contributor today is Goldman Sachs, which is receiving a bit of a bounce probably alongside some of these AI related companies, Goldman and Morgan Stanley specifically, and JP Morgan as well are pretty sensitive to the capital markets, and the capital markets has largely been driven by AI. So recently, there's been this fear that they won't get as much financing business, they won't get as much underwriting business for the equity capital market side of things, and there could be a potential slowdown as it pertains to M&A related to what we've seen in interest rates. And so all of that has been, you know, created a pressure dynamic on those names in particular. And then I'd also draw your attention to some regionals this morning, which are also receiving a bit of a bounce. KeyCorp released earnings, that's up nearly more than three and a half percent right now, fifth third. So the regional earnings have come in stronger than expected by and large and that's helping boost the KRE and some specific idiosyncratic regional names as well as it appears that so far on a kind of loan making basis, we're not seeing any dramatic impacts of higher interest rates. It's actually been a net positive for the loan making profitability as opposed to as much of a net negative as some may have feared as it pertains to margins.

Carl Quintanilla (3:14)

Yeah, we should point out that the banks are on pace for the seventh consecutive week lower and we haven't had that kind of a weekly loss since the financial crisis. So you would expect a bounce would be welcome here.

Leslie Picker (3:25)

Yeah, earnings was such a mixed bag and any kind of little thing that you could pick apart, the market tended to do that and it was negative sentiment going into earnings as well. So you'd seen tech and the banks benefiting together, and then you saw the reverse take place in the weeks leading up to earnings as well. So the numbers themselves, at least with the big banks weren't enough to assuage some of those concerns, but as you see some kind of new life breathed into the AI trade this morning, or at least intraday, that's also seeming to help some of the banking system as well.

All right, let's get to more on today's market action with HSBC Chief Multi-Asset Strategist, Max Kettner. Max, I want to get your thoughts on the moves we've seen today. The market opened one way and then we saw oil reverse, we saw the NASDAQ reverse into the green. For that move higher, what do you make of today's market activity?