9am Hour: CoreWeave Whipsaw, Tesla’s Roadster Unveil, Netflix C-Suite Shuffle 10/16/26

SPEAKER_1 (0:00)

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David Faber (0:59)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Carl Quintanilla (1:11)

Good Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with David Faber, Sara Eisen at Post 9 of the New York Stock Exchange. Cramer has the morning off. S&P pretty steady pre-market and the index actually has a shot at breaking even for this topsy-turvy week at 78.11. Summer nude weakness in CoreWeave today. Mike Ron, Oracle, 10-year 5.1.

Brent's near 106, but our Bob futures close to a six-week low today. Our roadmap begins with more volatility for CoreWeave under pressure ahead of the open after staging that major comeback in yesterday's session.

David Faber (1:42)

Plus, we'll have a closer look at Tesla's next-generation roadster taking flight in last night's demonstration.

Sara Eisen (1:48)

And Netflix shaking up its leadership group, replacing the Chief Content Officer, Head of Earnings, next week.

Carl Quintanilla (1:55)

Let's get right to the markets following this wild week of volatility. Dow is on pace for its best week since August. The Nasdaq is trying to avoid its worst week since July. Had some high-flying names get crushed this week. You can see some of the week-to-date losses. If you look at drawdowns, plenty of those are down 30 percent plus. But we did have the best breadth yesterday, Sara, since June 12th as a lot of rotation happened.

Sara Eisen (2:20)

Defensive stocks have been working this week, dividend stocks have been working this week. What you saw was a drop in treasury yields, which made I think things easier to rally that were not technology, related to the specific concerns around AI data centers and credit concerns around core weave.

You got that nicer rally and finally relief on bonds. I do think, David, that's what's underpinning all of this, is just the rising cost of capital. Last week, it was France we were all worried about. This week, it's core weave. It's kind of related, though, which is credit risk rises when rates rise. By the way, I've heard also anecdotally, in the commercial real estate market, for instance, there's starting to be some pain there.

That's what happens when you have a big backup in yields. The best cure for that is things get so worrisome that treasuries rally and yields come down. That's what we saw this week. We got CPI and PPI that were both hot. Normally, that would have caused a sell-off in rates because inflation concerns, but they went the other way because things are starting to get a little bit more worrisome, I guess, in the broader picture on AI.

David Faber (3:27)

Yes. We are obviously below 5% now in the 10-year. To your point, there is this overall concern that when you get a move up the way we did, particularly in the longer end, things start to break. Not sure where, obviously, we've seen it in this growing concern. And this is not going to go away. The growing concern in terms of how dear capital is going to be for the continued build out of AI around our country and around the globe. And the lesser of the names in terms of their credit quality have been getting hit the most, of course, no surprise there. And so the unsecured debt of a core weave, and we talked a lot about this yesterday, Carl, Jim and myself, of course, trading in as much as 15% in terms of the yield, given the drop in price of those bonds. That's only about 20% of their debt stack is unsecured. But raising the question as to just the cost of capital, again, we saw a rebound yesterday, a significant one, not, interestingly, in shares of Dell, for example, but in share of CoreWeave, yes.