11AM Hour: LA Mayoral Candidate Spencer Pratt, Former CFTC Chair Timothy Massad & Waymo's Next Generation of Vehicles 5/28/26

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Sara Eisen (1:03)

Good Thursday morning, welcome back to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla, live from Post 9 of the New York Stock Exchange. Today, Goldman Sachs is co-head of Private Equity on what he expects for M&A activity and the IPO market in 2026 and beyond. He joins us exclusively.

Carl Quintanilla (1:18)

Plus the CFTC moving to scrap a 2025 fine against the Winklevoss-led crypto company Gemini, potentially reigniting questions about the billionaire Trump donors' influence over the regulatory agency. We will discuss with the former CFT chair.

Sara Eisen (1:33)

And polls are showing that ALA mayoral candidates remain locked in a tight race here ahead of Tuesday's primary. Former reality TV star Spencer Pratt looking to unseat incumbent Karen Bass. Spencer Pratt joins us here at Post9 this hour.

Carl Quintanilla (1:48)

As for the markets, we did get some fresh highs today, right around the 75-50 level. Kind of a mixed bag sector-wise. Financials and utilities are lower. Tech doing some heavy lifting, along with healthcare actually up more than one and a half percent. Still watching the tape for fresh headlines regarding a potential memorandum of understanding between the US and Iran. Try to get some traffic moving in the Strait of Hormuz.

Sara Eisen (2:10)

Yeah, Axios reported that there's a deal on the table, but Trump has yet to sign off on it. Our Ayman Jabber is telling us a little bit about that, that it includes negotiations for ending the Iran nuclear deal. But any hint or talk or headline around a deal being finalized still gets this market excited.

Carl Quintanilla (2:27)

Yeah, still haven't erased the gains this morning on oil. WTI is still green. We'll move on to the big move in Snowflake and what it means for the broader market. Our Senior Markets Commentator Mike Santoli joins us this morning. This story has everything. It's got short interest, it's got some Amazon in there.

Mike Santoli (2:42)

You've got the craving to anoint new members of the AI Club, which I think is what's going on. The market is going through really kind of impacted software names and deciding how to separate out from the group. Take a look at this market cap look at Snowflake versus Datadog.

Absolute step function jump in market cap up to $80 billion for Snowflake. It got back about, I would say, there you go, it got back about two-thirds of what it had lost in six months today. Snowflake, so clearly there's this willingness to decide where the winners and losers are. Now these stocks, Snowflake and Datadog, infrastructure data kind of processing software, helping AI are trading at, let's say, three to four times the price to sales multiples as the sales forces and service now. So that's where the market wants to go. I think it also feeds into another craving of investors, which is, let's find a way outside what could be an overplayed semiconductor trade, at least in the short-term overplayed. It looks like it's been pretty well exploited in the near term and see if there's a way to rebalance this market away from dependence on that in the near term. I think that's also what you're seeing, by the way, in the general response every time we get these headlines about a reopening of the strait, which is the market sees it as an opportunity to rescue some of the left behind stocks that are consumer sensitive and obviously commodity sensitive and say maybe we can paper over a needed cooling off of some of the leading AI sectors in the near term without having big index pullbacks.