Good Monday morning. Welcome to Squawk in the Street. I'm Carl Kintaner with Mike Santoli, David Faber, live at Post 9 of the New York Stock Exchange. Sarah Eisen has the morning off. A little bit of selling this morning to start another busy week. Indices are red, fairly broad-based. Most sectors are red. Com service is the only one that's

meaningfully higher. Yield's not really cooperating as the 10-year tries to get closer

once again to 4-3. Today, did Powell give the all-clear to stocks on Friday? We'll talk about

that this morning. In just moments, veteran investor Dan Niles will give us his playbook

going into year-end. Plus, it's not just Intel. The White House now says the government could take stakes in more companies. We'll look at what that might mean for investors. And this new deal buzzed this morning with Tura, Dr. Pepper, buying the owner of Pete's coffee for $18 billion. We'll tell you what it means for competition in the coffee space. First, though, let's get some new housing data that has just been crossing.

Diana Oleg has that for us. Diana.

Well, David, new home sales in July came in at a seasonally adjusted annualized rate of

652,000 units. That is a beat. The street was expecting 632.

It is still down 0.6% month to month and down 8.2%

year over in year. Why? Because June's number was revised down from, was revised up to 656 from

627. So you saw a stronger June than we thought. Now, this number is based on signed contracts

during the month of July,

so people out shopping, inking their deals. And that's when mortgage rates were still on the higher

level, above 6.75% on the 30-year fix. They have since come down considerably, but that didn't

happen until the first week of August, so that's not represented in these numbers. Now, the median

price of a new home sold was $403,800.

That is down 5.9% year over year. So you see the builders lowering prices. Of course, we know the builders,

the big publics, have been buying down mortgage rates. We did see in the builder's sentiment report for August that they started to see a little more buyer traffic,

so that combined with lower rates might help in August. But we did also see the supply come down

to a 9.2 month supply. That's down from a 9.8 month supply. So supply coming down is better. We need

a balanced market. But again, so sales lower, but better than expected. So it's kind of a strange report. Back to you.

Diana, thanks. Diana, I look. In the meantime, watching the reaction, the follow-through to Friday's

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