11AM Hour: Intel's Apple Gains, Carlyle's Energy Outlook, & Nothing But Net Profits? 6/18/26

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Sara Eisen (1:03)

Good Thursday morning again, welcome to Squawk on the Street. I'm Sara Eisen with Michael Santoli today, live from Post 9 of the New York Stock Exchange. Carl has the morning off. Shares of Apple and Intel on the move. Apple planning to raise iPhone prices as memory and storage costs surge. Well, President Trump says the company is now working with Intel on chips. We'll explore what it all means for investors.

Michael Santoli (1:23)

Plus, oil price is falling as the US and Iran sign a preliminary ceasefire deal. Carlisle's Jeff Curry is with us. Find out why he thinks the challenge ahead may be greater than the war itself.

Sara Eisen (1:35)

And investing in the Knicks as New York City celebrates the team's NBA championship, investors and parent company MSG Sports. They're also celebrating a massive win. Shares are nearly up 100 percent in the past year and near record high. We're going to explore what's to come as CEO James Dolan moves ahead with split plans.

Michael Santoli (1:53)

Right now, markets are rebounding from yesterday's afternoon decline following Kevin Warsh's press conference first as Fed Chairman. S&P 500 up about 1 percent led by the NASDAQ and most specifically chips. Once again, the market goes to its comfortable place of grabbing for the sort of higher beta semiconductor stocks up 6.3 percent, although it is broader and some of the cyclical rate sensitive stuff that got hit yesterday afternoon is also bouncing back.

Sara Eisen (2:22)

Is it your expectation there's just going to be a bumpier ride here if he's not going to give us forward guidance?

Michael Santoli (2:26)

I think that's almost the point actually is to build in a bigger risk premium and allow the markets to kind of use wider swings in pricing to try and figure out the answer. We'll see if that actually happens. I think the market is still going to be fixated on trying to figure out what the Fed's decision making process is even if they're not going to tell us with any clarity. So today, given that the market didn't expect to move, given that the rates yields are coming back in off of yesterday's highs, it seems like there's a little bit of a let's take a beat and not overreact to what might not have been a radical change. We'll see. Well, let's bring in Wells Fargo's Chief Equity Strategist, Osin Kwan, to talk more about markets and how they're digesting the macro picture here. We had this strong patch in growth. Obviously, earnings have been very powerful to the upside.

On the index level, though, the S&P 500 has been range bound for the last five weeks or so. How are you seeing it, Osin?

Osin Kwan (3:25)

Yeah, so first of all, I wouldn't read too much into yesterday's action. I think the market overreacted at least a little bit. I mean, he didn't sound like a full hawk to me. I think he was more balanced than what the market perceived him as.

So we wouldn't read too much into it. I think the path of direction for the equity market is still higher. We actually just raised our S&P target to 79.5 by year end. We think there was a sentiment reset after the mini sell-off that we saw last week. And macro cycle, which we were questioning and were getting a little nervous about on the inflation front, with oil prices coming down to about $70, I think inflation is going to continue to come down for the next two months or so.

Michael Santoli (4:10)

So what does that mean in terms of how the market kind of rebalances itself or how it proceeds from here? Because there has been this idea that lower oil, lower yields, inflation coming off the boil should in theory allow parts of the market that are not tech to perform, although it's been kind of a fits and starts in that direction.