Market Insight and Analysis. You're listening to the opening bell of CNBC, Squawk on the Street.

Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Canton-Aye with Jim Kramer and David Faber at Post 9 of the New York Stock Exchange.

The post-Fed stumble for equities continues this morning as the market comes to terms with hire for longer.

Jobless claims lowest since January, not helping tenure almost to four and a half.

Our roadmap begins with big deal news this morning. Cisco, acquiring cyber security firm Splunk, all cash, worth $28 billion.

Plus the end of the Hollywood strike for writers may be near. We'll give you the latest reporting on that potential deal between the studios and the writers.

And the Fed is holding rates steady, signaling it will keep rates, though, higher or longer.

Let's begin with that deal of the day. Cisco agreeing to acquire Splunk for $28 billion, $157 a share in cash.

Both companies cite what they call complementary capabilities in AI and security.

Splunk's Gary Steele is going to be part of Cisco's executive leadership team,

reporting to chair and CEO Chuck Robbins.

And both gentlemen are going to join us exclusively at 915 this morning in about 15 minutes, Jim.

Yeah, look, I think this is terrific to you and I'll tell tell you why, because what Cisco's tried to do for a long time is have a lot of recurring revenue, okay?

And Spunk is nothing but recurring revenue.

Cisco has tried to be a major factor in security, cybersecurity we know is incredibly important.

Spunk will give them the opportunity.

They had a smaller division that does cybersecurity. It's not really been that much of a winner, frankly. In the meantime, Gary Steele has taken this company, and David, you remember, Starboard was agitating about about Splunk. He came in, he fixed a company in, what, 17 months, and then prepared to be able to sell it. That was not what he wanted to do. It was actually going to come on May of money. But he has done so much in a very short period of time that I think it makes tremendous sense for Cisco to strike right now. We can ask the guys, but I mean, there was, you know, there were talks between these companies a year or two ago. Yes, there were. some time back and they didn't get a deal done then. I just wonder what changed. Well, obviously, ask them. But do you have any sense? Well, I think that Gary Steele is a deal maker. He sold proof point when he thought it was right for Tom Barba. He's a realist. They were doing terrifically. I think it was a company always for sale. You'd name the price.

And you don't want to think, Carl, but these guys,

and they were going to be on. These are two of the most straight shooters I've ever met in business. Gary's man, a few words. Got to be careful. I always come with a hundred questions for Gary. Is that true? Yeah, because Gary said yes, no. You know, well, how do you think is that's a new Microsoft Azure deal?

Good.

Okay, that's good to be it going into the Senate.

Yeah, got it out. his character says yes now you know well how do you think is that's a new uh Microsoft Azure deal good okay that's super excited going into the sim yeah got to know and yeah I have

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