Market moving insight and analysis join Jim Kramer, David Faber, and me, Carl Kintania,

on the opening bell hour of CNBC Squawk on the Street. Good Tuesday morning, welcome to Squawk on the Street. I'm Carl Kintania with Jim Kramer at Post 9 of the New York Stock Exchange. David Faber has the morning off. Equity's trying to build on Monday's bounce as these tragic headlines out of Israel are offset by some dovish Fed speak and some relief

in yields, 10-year drops to 466. That's near the lows of the month. Our roadmap begins with

the Israel-Hamas conflict entering its fourth day now. Israel says its border with Gaza is now secure.

We're going to go live to the scene. Pepsi rallying in the pre-market, posting a beat on earnings

and revenue. We're going to dive into that quarter. And in the pre-market, posting a beat on earnings and revenue.

We're going to dive into that quarter. And more labor strikes to come, thousands of hospitality

workers in Vegas planning to pick up this week after another round of failed negotiations with

the casinos. Let's begin, though, with the markets trying to build on yesterday's rally, Jim.

Were you surprised at all by what stocks and oil did? Yes, actually, I started my show last night by saying a little counterintuitive that you could have both at the same time. But if you take a look at the timeline, obviously, Vice Chair Jefferson speaks, and then, boom, 130, just like that. But they couldn't take the oil stocks down, obviously, because of what's going on in the Middle East. And then they didn't have the bonds because of Columbus Day. So it was kind of a three-pronged oddity that oil could be up, that the S&B could roar, and we didn't have the bonds to key off of, and set up a picture that I think was counterintuitive to the most people in the events that occurred in the minis.

You had Logan and then Jefferson talking about higher term premiums

and being mindful, they said, of the impact of longer, higher rates,

longer.

Yeah, I mean, I also think that you had that note from Ed Yardini,

who's really, he's always distinguished himself and he's an old friend,

and done things with him, but he's an old friend, done things with him.

But, you know, he's in the camp that we've got to be more careful.

And that seems to be winning people over.

I do think that it is overblown that the mid-East could hurt the U.S. versus, say, 73,

where you've got an oil embargo, which really hurt the U.S.

But I also recognize that if you try to define how far this. versus say 73, where you got an oil embargo, which really hurt the U.S.

But I also recognize that if you try to define how far this thing goes, you could be instantly wrong, 48 hours with that.

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