11AM Hour: Invitation Homes CEO, eToro CEO & Oil Market Outlook 8/11/26

**David Faber** (0:00)
The board recommends approving...

**Carl Quintanilla** (0:01)
Regarding that seat on the committee, we're promoting...

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**Carl Quintanilla** (1:00)
Good Tuesday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Sara Eisen, live at Post 9 of the New York Stock Exchange. Today shares of eToro under some pressure after revenue takes a hit from these volatile crypto assets. We'll talk about the outlook for that space and the broader markets with the founder and CEO.

**David Faber** (1:14)
Plus oil prices stabilizing amid signs of progress and talks to break the stalemate over the Strait of Hormuz. The US and Iran reportedly closed to quote, some sort of arrangement. We'll discuss the implications for energy markets with Goldman Sachs' co-head of Global Commodities.

**Carl Quintanilla** (1:29)
And home sales falling for a second straight month in July. Buyers holding off due to some of these higher mortgage rates. We'll talk about the housing economy with the CEO of Invitation Homes.

**David Faber** (1:39)
We are going to start though with some breaking news out of the New York Fed. Steve Leesman has that for us. Morning, Steve.

**Steve Leesman** (1:46)
New York Fed's second quarter household debt and credit report showing little sign of consumer stress despite the higher inflation we've had out there and lackluster job growth.
The change on the top line was down 13 billion, but you need to adjust that for some issues that were out there about reporting. So it really gained about 60 billion, the difference being a one-time issue with reporting of mortgage debt that showed a decrease when it was likely flat according to new year's researchers at the New York Fed. The report did find gains in home equity, credit and auto loan debt, but none were far out of line with prior trends. And what the New York Fed researchers consider to be their best metric for measuring consumer credit stress, it's the flow of debt into 90-plus days delinquent. That's been flat now for almost two years and remains largely unchanged in the second quarter. The levels are elevated from the pre-pandemic years, though. The only potential sign of consumer credit stress you can find in a modest uptick in early delinquencies, that's 30-plus days for autos and mortgages, auto loans have gotten bigger with the increase in car prices. And the key question that you really can't answer from this data, but it's out there, is whether big tax refunds in the spring help consumers keep the debt problems under control. At nearly 19 trillion, that's the number for the total of consumer debt. Right now, the debt level remains high, but it's growing at a modest 2.5% to 3% a year, and the lack of obvious stress in credit, I think, underpins the decent consumer spending data we reported earlier this week in the CNBC NRF Retail Monitor and in data we got this morning from the Bank of America Institute.
Sara, I don't think it's that big a deal to have 2.5, 3% growth of overall debt, and you're not having a really flat flow into delinquencies.

**David Faber** (3:26)
Right. So overall consumer resilience remains the theme?

**Steve Leesman** (3:33)
They're finding a way to get by, and you're not really seeing the cracks.
We know there's a lot of debt on the corporate side, and we can talk about that. That's a separate issue from what looks to be happening on the household side. But you can also imagine not just the issue of the refunds, but higher stock prices for some households also has to help on the debt side as well. With an asterisk next to all of this, with what's going on with the on-again, off-again payment for student loans, that does create some stress down among younger borrowers.