SOTS 2nd Hour: Iran Tensions Rise, Chip Stocks Gain - Plus: On Semi CEO, FDA Commissioner Commentary 5/5/26

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Carl Quintanilla (1:06)

Good Tuesday morning, welcome to Squawk on the Street. I'm Carl Quintanilla, live at the New York Stock Exchange. Alongside Sara Eisen, David Faber, joining us once again from Milken Global Conference in Beverly Hills. Coming up this hour from Milken, we will hear from the CEO of On Semi, pulling back this morning despite an earnings beat after a major run-up of the stock so far this year. Plus, FDA Commissioner, Dr. Marty McCary, as a new report calls out, quote, paranoia, turmoil and backlash at the agency, and questions swirl around its drug approval process. We will get the latest on Palantir and Intel, those names moving in opposite directions in early trading. But first, let's get some ISM insults. Once again, with Rick Santelli. Hey, Rick.

Rick Santelli (1:45)

Yes, ISM, this is April number. These are the services side, of course. And on the index, expecting 53.7, comes in a little light, 53.6. That will be the lightest since November of 25 If we look at prices paid, they remain at 70.7, and those are basically the loftiest levels. Since October of 22, and it's now back to back. If we look at new orders, very light here. We're expecting 57 and change, 53.5. That would be the second weakest of the year, outside of January's, 53.1. And employment, on an important week, we're going to get the big job, job, jobs report.

48, we're expecting 48.3. 48 would actually be the best, since it was over 50

And 51.8 in February, because last month we were down at 45.2. The week is since the end of 23 Job openings and labor turnover, a March number, expecting 6,850,000 comes in a little on the heavy side. 6,866,000. And that would end up being the, well, that would be the lightest since it was the end of the year, 6,550,000. So, this is definitely not a bad number, and it's the third highest of the year. It's been going down January, February, March, but we did start out the year over 7.2 million. We still have new home sales. This is a March number as we get caught up. And for that, we're going to go to Diana Olek. Diana?

Diana Olick (3:20)

Well, Rick, we got both March and February numbers, and both were a beat. March came in at 682,000, seasonally adjusted annualized rate. That's up 7.4% month to month. From February's 635,000, which was also a gain from really dismal numbers that we saw in January. January was really hit hard by the weather. Median price of a newly built home sold in March, $387,400. That is down 6.2% year over year. So builders obviously pulling down prices a bit to try and ease that affordability for homeowners because in March, when people were out shopping for these homes, that's when the war hit and mortgage rates shot up. So you started end of February, 30-year fix was at 5.99%.

It shot up to 6.64% by the end of March. So that's what buyers out there who were signing these contracts because this is based on signed contracts, we're dealing with and that you would have thought would pull them back, but we did see this nice gain. Inventory also came down to an 8.5 month supply. So a really good read for the builders. Sara, back to you.

Sara Eisen (4:25)

Okay, Diana Olek, Diana, thank you very much. We are here in Los Angeles for day two of Milken, where David, I think a lot of the conversation has centered and what's really stood out to me around the war. Just watching treasury yields, I think, in the last 24 hours, there's a lot of credit and bond, investors and managers here. And so we've been talking about this. We're watching the third year very carefully, that 5% level that was surpassing kind of a line in the sand.