11AM Hour: SK Hynix Opens for Trade, FCC Chairman Brendan Carr & Apple's China Sales Fall 7/10/26

Sara Eisen (0:00)

The board recommends approving...

John McNeil (0:01)

Regarding that seat on the committee, we're promoting......to most quarterly earnings...

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Sara Eisen (1:00)

Good Friday morning again. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla live from Post 9 of the New York Stock Exchange. Today, FCC Chair Brendan Carr is with us with the latest on the agency's Disney investigation and his first comments since ABC blasted the probe in a new filing this week calling it misinformation in an effort to quote chill critical protected speech.

Carl Quintanilla (1:20)

South Korean memory chip maker SK Hynix making a highly anticipated US debut. We are expecting trade to begin this hour.

Sara Eisen (1:28)

And Volkswagen and BMW reporting quarterly sales declines getting hit hard by slumping demand in China. Here in the US signs that consumers are still buying, especially hybrids and EVs. We're going to break all of that down with the former Tesla president and former GM board member John McNeil.

Carl Quintanilla (1:43)

And a big interview coming up in one hour. Elon Musk is going to join Julia Borsten for an exclusive interview. They'll talk everything from Grok's new model launch and reaction to the first month of trading in SpaceX.

Meantime, markets here a little jumpy after the president did reiterate on Truth Social that the ceasefire with Iran is over, in his words. A 10-year treasury gets a little bounce back to 455 Vicks, though, still not old enough to drive. We'll see how much of this sticks.

Sara Eisen (2:13)

Yeah, I mean, nothing like the sharp reactions that we saw in the beginning of the war, where oil prices are sort of barely higher.

And 70 was below before this escalation. We're in 72 We're going to start off, though, with breaking news here out of the Fed. Steve Liesman has that for us.

Steve Liesman (2:31)

Good morning, Sara. The Federal Reserve releasing the monetary policy report to Congress. This typically comes out on the Friday before the chairman testifies before Congress next week, two days scheduled by Kevin Warsh. The Fed is saying in the report that inflation has risen this year, reflecting supply shocks that include energy. It remains elevated relative to the Fed's 2% target. Tariffs, the surge in energy prices and demand for high-tech products are what's driving inflation, according to the report. Inflation expectations, however, are consistent with that 2%.

Target labor market is broadly stable.

Layoffs are subdued. Job vacancies mostly flat. Private payrolls have picked up. Real wage growth, however, has been cooling. There's been a slowdown in immigration and declines in participation. Those are what's reducing the supply of labor. Real wage gains by disadvantaged groups, they have moderated, according to the report. Economies growing at a modest pace and the economy's productive capacity, this is important here, appears to be rising at a solid pace. This is a point that Kevin Warsh is making for the perspective of possibility of where to set interest rates. Subdue labor force growth is offset by that strong productivity. CapEx is strong, but it does talk about household spending being up only very modestly, and some other places talks about it really slowing down. Asset valuations are above historical norms. They use that language a lot. I don't think it's a change. They cite equity, corporate debt and real estate markets or residential real estate markets. The US financial system remains sound and resilient, according to the report. Private credit does face some redemption and default risks. It notes the market expectations for rate hikes, but it offers no further comment about it. It also mentions those task forces that we've been talking about all morning and yesterday, but doesn't offer any new specifics. Sara?