Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Cantonia with Simam Modi and David Faber here at Post 9 of the New York Stock Exchange.

Sarah Eisen is the morning off. Coming up this hour, Muhammad L. A.R.I. and from Allianz will be with us as we come off that downbeat week for the major averages, pressured by some AI disruption fears.

Speaking of AI fears, we'll talk to a fund manager who focuses on software. Sector's down around 20% on the

year and sees a little more pressure today. Much more on the media news of the morning. As Netflix,

as Warner Brothers gives paramount, an additional seven-day window to reopen deal talks. We'll get to

David on that. All right. First of all, let's get some new housing date. It's just crossing. Diana Oleg has that for us. Diana. David, home builder sentiment in the single-family market dropped one point in February to 36 on the NHB index. Now, the street was actually looking for a one-point gain. This is the second straight month of declines. The index stood at 42 in February of last year, even though mortgage rates

were significantly higher last year. Builders cite persistent affordability challenges,

including high housing price-to-income ratios, and elevated land and construction costs

help push builder confidence lower for the second

straight month to start the year. Now, of the indexes three components, current sales conditions

were unchanged at 41 from January. Buyer traffic fell two points to 22, and future sales expectations

fell three points to 46. The survey found fewer builders cutting prices, though, 36% down from 40% in January.

That's the lowest share since last May. The use of sales incentives was 65% in February.

That's unchanged from January and marking the 11th straight month that this share has exceeded 60%.

The builders did note that although demand for new construction

has weakened, remodeling demand is solid. Of course, thanks to a lack of household mobility.

Nobody's moving, Carl.

Fix up your own place if you can't change. Diana, thank you for that, Diana Oleg.

Stock's under a little pressure here this morning as early trade begins coming off of that downbeat

week. Let's bring in Muhammad Alarian today,, Alianz, chief economic advisor, former Pimco CEO, who actually

wrote a lot over the weekend, Mohammed, about what you're calling a jobless boom.

Interesting set of tables that you assembled over the weekend.

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