Good Thursday morning. Welcome to Squawk on the Street. I'm Sarah Eisen with Carl Kintini and David Faber, live from post nine of the New York Stock Exchange.

Stocks are hanging in there. We've got Google helping the tech trade, the AI trade. Market's up about two-tenths of one percent.

Communication services at the top of the market. Thank you to Alphabet. Finanials are doing well though. Industrials, healthcare, technology, all up today. Biggest loser so far looks like is materials, along with

consumer discretionary. NASIC up two-tenths of 1%. As for treasuries show you what's happening

there. Selling off yields a little bit firmer. We got better jobless claims. Lowest level there since April.

Perhaps fueling ideas that the Fed isn't going to cut or it isn't as likely to cut or doesn't need to cut. We'll talk about that. The 10-year yield 4.4.4 goes above 4.4 today. The two-year yield just below 4%. Big show coming up for you. Coming up, we'll speak exclusively to the CEO of CSX about the company's results and the new round of M&A headlines breaking this morning in the rail space. Plus, we'll break down the quarter from Tesla and Alphabet, sending stocks in opposite directions this morning.

Tesla down almost 8%.

And new comments from IBM CEO as that name falls to the bottom of the SMP on the back of results,

some concerns about a deceleration in software.

Yesterday it was about existing homes.

We're getting some new home sales data now.

Let's get to Rick Santelli.

Hey, Rick.

Yes, Carl, these are June new home sales, expecting a nice round number around 650,000 seasonally adjusted annualized units comes in on the light side no surprise 627,000 but it is from a 623,000 so it is up just a smidge somewhere around a half a percent but here's the deal last. Last month, 623,000, was the lowest in

seven months going to October last year. This is barely above that. It still comes to that.

The previous month was a much more robust 722,000. So we have back-to-back week months, and we know the

story. Journal talks about how the spring

shopping season was very weak. We're seeing inventory still building on a number of fronts with

regard to new homes. And on the existing, well, we see that there's weakness there. Rates remain

persistently high. And even if the Fed lowers, there's no guarantees what the tenure's

going to do. But I will say, if you look at the 2's 10 spread, it's been hovering around 50

basis points, not much wiggle in the curve. That's because of the Fed meeting next week. Sarah,

...