not the curious case of the american consumer and muddled picture it is painting for the future of the u.s. economy it is. so watch the consumer.

and a reported department of justice investigation is sending shares of one stock sinking. amazon shaking up the entire car buying experience with devastating effects for some auto retailer stocks. good friday morning. and welcome to worldwide exchange. let's kick things off with a check of u.s. equity futures. after a mixed session yes, i did, ahead of the opening bell, the s&p 500 is higher and the nasdaq is up by two a bullish trend near term continuing. the averages are on track for three straight weeks of gains. that is the longest streak

since late july. and checking in on the bond market, yields moving on the downside ever so slightly. the ten-year benchmark is below the 4.4% mark. 4.95 the last one there. generally, they are taking a lower yield. and energy, oil coming off its worse sessions in weeks, falling nearly 5% in yesterday's session. the u.s. benchmark, $73.58. that is%. the world benchmark up 5%. and the nation gas is 3.05, down one-third of 1%. we have much more on the price action coming up later on in

the show. let's get a look at some of the top corporate stories. good friday morning to you. ibm is pausing advertising on x. that is the platform formally known as twitter after a report found that the company's ads were placed next to anti-semitic context. x said they have zero tolerance for hate speech and discrimination. they are owned by cnbc patriot company comcast. this is following the backlash for elon musk for comments he made on anti-semitic rhetoric. chip make under heavy selling pressure in the premarket. down about 7.3% before we even open. and the company is facing a

justice department investigation for allegedly violating export restrictions to china and dealing with the semiconductor manufacturing international cooperation. that is china's biggest chip maker. it previously disclosed a federal review of china delivery. there is oversea trading after a steep selloff that wiped out some $20 billion in market value. they are canceling the plans to spin off the cloud commuting business and pausing plans to lift the grocery arm. they are citing uncertainty in the computer chip in the decision to cancel the cloud lifting. back to the broader markets with the s&p 500 down and the nasdaq looking to cap off three straight weeks of gains on the heels of following treasury

yields and cooling economic data. another part of the market is also getting a bump in recent weeks, we're talking about small cap stocks. the s&p 500 600 index is up some 8% from the recent low that we hit in late october. but despite the bounce back, it is still trailing by a whopping 17%. that is the widest margin of underspeak underperformance since 1998. thank you very much for joining us this morning. it has been something tide to the economic narrative, the idea if a recession is coming, smaller companies and the balance sheets would not be able to withstand it as much. the narrative has somewhat changed. but interest rates are a big part of that story. why? >> the small cap companies are more the loan market.

so when the feds raises rate like mike cost, apple and google, they are inyou will lated insulated from the interest rates and they don't really care. the smaller companies are worried about the interest rates. we're having a lower growth environment. the market doesn't really -- has been not been on board with that. the idea that a slower growth environment coupled with the balance sheet challenges is not a place for then investors this year. >> does that mean that the bid that we've seen in the mall caps has been driven mostly then by the interest rate narrative that we've seen, this big for government bonds that pushed the bench market yields

below 4.4%. is it like the same thing helping mega cap technology stocks like the magnificent 7 helping the small cap stocks and the barbell effect? >> i thinking that is part of it. that is definitely helping. but there is another driver of small caps of the markets going on right now, especially the last couple of weeks. that is the fact that everybody notices the story on small caps. they are short small caps for this year. if you want to look of a trade at the end of year for most professional money managers, if you have a rally led by small caps and marks and this idea where the things that come to worse and people are underpositioned most of the year, they are starting to kind of chase and cover small cap rallies had they start. nobody wants to lose. >> the problem with some of the

pain trades and the rallies based upon short coverings and everything else has to do with the idea there is so much fuel in the tank. if that is the case. what would you do. and where would you put money to work given the fact that we have seen a run like we've seen in certain parts of the market? >> that could work at the end of the year. but you want to look out a little longer. you don't want to be too cute with it. and it is the kind of of stuff that worked most of this year. there will be a positioning for the ai revolutions and positioning for the commuting revolution. it is still your consumer discretionary. we have consumers that not

everyone has a job with a wants one and getting raises. the bar for the holiday season is pretty low. for longer term, it is going to be on the tech side and the discretionary side. we think that the benefits from this activity boom is going to be larger of the large kind of like the internet pc like we had a generation ago. >> scott with the call on mega cap stocks. have a nice weekend, stir. we have a lot more coverage coming up, including the one word thatinvestors need to know today. amazon shocks the auto dealer landscape with retail plans of his own. why one ceo said that he is not worried about amazon getting into selling cars. it fits just right. later on, we talk artificial

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we have with the early act from the european trade. good friday morning. good morning. we just had some inflation figures come through from the euro zone showing that the numbers continue to fly. to 3.4% in september and now 2.9% for the month of october. getting close to the 2% target. and they have said it is too soon to start talking about rate cuts, the market got head of themselves. all of this means it has been a good week as a whole. every single sector in europe is bouncing quite nicely this morning. the commodedies are weaker retail sales this morning. we're seeing a turnaround in the energy. the stock has been a focus of

the last couple of days. the company had to go to the government for the guarantees. they are seeing a bit of a turnaround. so almost 16,000 up. seeing a bit of a bump in the luxury sector. they have bounced back. let me give you a quick view of how the indexes have gone. every single one of them is in the green. this is up 4.4%. the spanish index, a lot of focus is on this is the political turmoil. mr. sanchez will be leading the government for another term. that came through yesterday as well. so a broadly week. amazon is getting into a new product category, cars. it will start selling vehicles on the platform next year in a

partnership with hyundai. they can browse for vehicles in their area, buy it online or pick it up at a dealer or having it delivered by a dealer. it was not taken well by the public dealership. carmax down by 5%. automation dropped 6%. appearing on closing bell overtime just yesterday, carvana said that he welcomes the competition. >> amazon jump nothing the fray here. i think it validates something that the consumers want. and we think it will accelerate auto commerce and that is something that we welcome. >> let's talk about them muscling in. this is something, when i saw the news, i just laughed a little bit. because amazon is getting into

everything. is no doubt about it that amazon will at some point have a presence. i don't buy shoes without really trying them on. why would i want to make, who could be the second biggest purchase of my adult life online and not there and what do the car companies have to fear about it or benefit from? >> like you pointed out, the dealers and the used car dealers took a big hit yesterday once this was announce ed. the most important thing here to kind of separate this amazon is partnering with the dealerships. and they're partnering with hyundai to have dealers essentially sell their vehicles through amazon. it has been a slow progression. it has been a decade since amazon started getting into

automotive. and we actually have kind of a partnership between amazon and the auto company and brands pages on amazon that are lead generators for the dealers to take them to the grand would be site. this say grand step for amazon top take the step in the ecosystem to continue growing. investors are scared that amazon could essentially come in and crush a lot of these smaller retailers and decide that they're just going to sell cars. having said that, it is a little bit more difficult because of the franchise dealer laws in several states. in states you cannot directly sell a vehicle to a consumer without doing it through a franchise dealer. and hyundai has thousands of franchise dealers. so that is where we have a little nuance here for what is going on. >> this is pretty much puts some of these dealers or the companies that are partnering with amazon, in essence in the

same category as a third party seller on amazon's platform. it is not a.m. zone that is own amazon selling it. is it the dealer using the platform. what exactly will this look like in terms of what kind of benefit amazon gets from doing this from a fee standpoint? >> i'm sure it will have a nice benefit. that is the outstanding question right now is just how much amazon will take off the top of the car sales. and just how much will be done completely through amazon. buying a car is a complex process. it is hard to do without the vehicle kicking the tires or doing a test drive. when you talk to a company like

carvana, you get the vehicle for 7 days. those are new vehicles. a car dealer do not want to give you a new car and have you depreciate the value as soon as they drive it off the lot. the new vehicle is far more difficult. how much are they going to take off the top of these or share revenue or exactly is going to come of that, we have to wait and see. >> that is michael wayland, a guy has kicked his share of tires in his days. a change, are you ready for it? wall street's love story with taylor swift living out its wildest dreams. why it seems that everything has chgeand when it comes to some of the bee jeweled research notes. i guess you can see what i did there. we'll be back after this.

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fewer promotions and ongoing cost customers, but they still remain focused heading into this holiday season. but the result is a 17 and a

half percent surge in gap. ross stores are offers a more positive outlook on the consumer. sales are higher thanks to the higher demand for offprice merchandise. they performed expectations as customers focused on finding value. ross stores are up 7%. charge stores for the feel energized. they are down double digits right now and weaker giant guidance and announcing the leaving of its creve. this a quarter of its value in the premarket trade right now. the countdown is on to this weekend's big formula one race in las vegas.

it is getting more attention and more money to sin city. we're there in vegas how the city is rolling out the red carpet for big spenders in the f1. >> reporter: they have some of the most influence sports fans in the world. and they are being catered to like never before in las vegas. i like to see how the jet setters do in these f1. >> you'll see the race circuit. >> reporter: as the rich and famous dissend on las vegas for the first one on the strip, an entire fleet of helicopters is ready to give fans a different perspective. >> you see the grand strand and the track how it is laid out. so you'll see that first. as we fly north here, we'll make the turn around and then you'll see the entire straightaway down las vegas boulevard. >> reporter: a lofty view for

those willing to pay for it. >> is it unbelievable. a hundred thousand f1 fans coming in. obviously, wealthy fans. this is no joke. >> reporter: from the ultrawealthy and the luxury experience begins even perfect they land. >> it looks amazing. who is coming in this week for f1? >> we have dozens of high end customers. is it the busiest we have been from an aviation standpoint. >> reporter: the jets are dispatched around the world to bring customers to las vegas. the flight crew rolls out the the red carpet. the high rollers and superstars go behind the cashiers' cage. this has never been seen before

on television, the vault, a secret cocktail club where guests with order 90-year-old conac. cheers tocheers to that even the well healed want an attention-getting post. they can hob knob with a driver and get a haircut? some experiences are down right affordable. >> everything is actually tweeted and it feel like a formula 1 bar. >> reporter: a chance to practice. no crashes in the vip version and hot lap around the circuit. what does las vegas get out of catering to the movers and

shakers of the world? >> the eyes of the world are on las vegas and it gives us an opportunity to show up and show what we can do to merge the f1 brand with the las vegas brand. >> reporter: vegas is hoping for is to escape the old reputation of sin city. you don't have to be super rich to enjoy this. these are $500 general admission tickets. it gets you three day access and the food is complementary by wolfgang puck, pretty memorable, even if you don't spend a million bucks. >> not just for gamblers. let's get a check of some morning's top headlines. happy friday. we begin with the latest in the trial of former president trump. the appeals court blocked the gag order in the $250 million civil fraud trial. and trump already started

insulting the law clerk. it will stay in place till november 27th when a full appeals court panel will review it. ventura said that combs and her over the course of a decade. susan g.comb's lawyer said that he vehemently denies the charges. it is tough to say. they don't know if he has a wrist injury or how long he'll

be out. >> i hope that he'll heal up soon for the fantasy owners like me, hopes that he heals up soon. we'll be back after this. s with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more - all crafted just for traders. and with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. trade brilliantly with schwab.

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winning streak. a key driver for this week is the retail. and we look at the sector and what it means for the help of the consumer. and a new warning from ai on google's ceo's front and the potential global impact. is it friday, november 17th you're watching worldwide change right here on cnbc. welcome back to the show t is friday morning. let's pick up the half hour for the check of you can you can equity futures that are big. the dow jones industrial averages higher by 114. and the nasdaq high by 14 to 15 points. and digging into the marks overall, one place that has been hot over the course of the past few weeks has been technology. if you look at technology, and real and utilities, those are

the three best performing sectors in the s&p 500 in a month to date base so far in november. if you take when it looks like for the technology trade, believe it or not, that spike just hit a record high in yesterday's session. it was not that long ago that we were talking about the pull back. and technology a huge part of this. within that, take a look at what has been driving some of the action overall. if you look at that mega 7 trade, microsoft 11 percent, invidea up 22%. these are the stocks driving the ac. so there is a the action. so there is a lot of muscle. they go back to the same stock they have for the past decade

and a half. we'll see if that sticks. let's check the bond market right now. yields are a big part of that story. the benchmark ten year treasury down 4.0. turning to energy and the price of oil, coming off its worst day in more than a month, settling down 5% in yesterday's action. and now trading at its lowest level since early july. is it now tracking for its fourth down week in a row for the first time since may. energy stocks following crude's move lower including chevron, a 52-week low there. exxon/mobile, all some of the stocks that are weaker in yesterday's session. the spider xle attracts that sector, down more than 9% in just two months alone. right now, trying to get a bit

of a bounce back and premarket. to join me to talk about all of this is director of research at energy aspects. a woman that we turn to for a lot of insight on the energy markets. can you take us through what the overriding story is here? is this one where it is a tale of consumer weakness? concerns globally? a supply issue? what is driving the prices down right now? >> it is sudden. i think it is a combination of factors. one of the things that we're picking up is that the refineries have been slow in coming back. we had a bit of refining market. there are technical issues. there is a big driver on the

demand side. the supplies always rise this time of the year. canadian production is at its peak. we have seen product increases more than expected for instance. they have been running down. we will not see a repeat of that next year. we were expecting the big production growth. but that is coming in slightly higher. so all of that combined, we're seeing a softening, we're still seeing counter season draws. the draws were meant to be a lot bigger. they are less now. but i also don't think it is -- the price suggest that there's will be a huge build in the industries. that is not there yet. that is seasonal. but there is a bit of a mismatch between price action and fundamentals as well. >> price action indicates that we'll see some of these lower prices as you point out over

the next few months. and then maybe a ramp up against seasonally speaking as we head to spring and summer what does this mean now for fuel prices, specifically for retail customers around the world? i know here in the u.s., we're seeing oil prices drive lower unleaded gasoline prices. i filled up this morning and i paid the lowest than i have paid in a few weeks. can the consumers expect the gasoline trend continue? >> gasoline came off much more sharply than crude had. i think that is what you're seeing as the consumer at the pump. but what we have seen as the crude prices have come off, diesel and gasoline has headed higher. it gives me confidence that the demand is still okay. i think that is why a big part of the crude has declined.

but what i was say to you for the pump is we're not going to see as big of a decline in gasoline prices. winter gasoline is always cheaper than the summer just because the spec-wise it is easier to produce. demand is holding up okay. >> we're about a week or so away from a big opec and the partner country meeting. at what point do the prices on the downside make o peck and the countries think it could be in the coming weeks? >> it is not that opec is targeting a price. it worries everybody, right. even as analysts we're like, what are we missing? they're looking at all the numbers and the factors.

is it ultimately fundamentals are much more to do with positioning. we still believe and we continue to believe that opec will do what it takes to balance this will market. saudi arabia has cuts in place. we believe they will likely get extended through next year. that should help stabilize prices. as the fundamentals pick up in the year ahead that we'll get the prices to pick up as well. >> good to get your thoughts. thank you for the insights. have a nice weekend. let's get a check on some of the top stories. good morning. ceo offering a fresh take on artificial intelligence. speaking at the apec comparing the new tech to climate change. >> ai is in one county will

impact every other country. some places it is like climate change. you know it will be true, you have to start building the frameworks globally to make progress. >> the comments coming and and goggle releasing aa and chas gdp. they have released the tool for some of its customers is now pushed to the first quarter of next year. and speaking of apec, president biden planning to lift restrictions on an agency accused of human rights violations for a new crackdown on the fentanyl crackdown in

china. thank you very much for if the headlines. retail has a busy week of reports and the concerns of consumer dominate the conversation. home depot, target, walmart, ross stores, gap, all beating targets. but only target and ross stores beating its target. joining me to discuss this further is the equity research vice president at jeffries that could have that covers the retailers. tell me what stood out to you in the stories between walmart's results and target's results. if you looking at a chart here

today, you see both of them, it is probably not a surprise. it made a record high the day before. target has been an underperformer. is this a meaner version or something more? >> i think it is a little bit of a meaner version. one of the questions that we got can target sustain on a mid- single digit comparable same store sales decline. you also see coste leverage, coupled with shrinkage that we have seen at the consumer level. it has been a little bit of a profitability headwind. what we saw this quarter was similar to last quarter, target was able to generate a 5.2% operating margin even with the

compare same stores that declined in the single digits. the question going forward is this repeatable and sustainable? for now, there is renewed confidence for target to generate higher margins from amid potentially same store sales. and the outlook for the full year was actually raised modestly on earnings and the stock was down. typically when that is down, the stock is usually up. so it was a little different reaction to your point, the setup was very elevated into the quarter. but nonetheless, is it one where we still see continued upside to the earnings because market shared gains. and we see potentially

evaluation expanding as well. >> knowing what you know about the consumer environment, of the u.s. economic picture, what you've heard commentary wise from the likes of walmart, target, home depot and others what is your outlook for the consumer. what companies seem to be the most insulated? >> the consumer into the holiday, what is clear based on the results from walmart is that the consumer is a little bit pressured. and what we saw was a strong september, a relatively strong october in the beginning. but then in the second half of october fell off a little bit. the consumer is on shakier weather. it has been an incremental

headwinds. walmart is in a position that what people want and very much what they need, yes, being 60% food and other retailers like target. so it is a business that we see a continued market share gains ahead. is a company that we think is well positioned for the holiday. >> wal-mart shares, a bit of a buying opportunity there. have a nice weekend. coming up in the show, shares of applied materials, they're getting hit on legal troubles in the u.s. but as we head to break, some of your top trending stories, will ai take my job in if you're a musician, maybe. "youtube" has a new tool that mimics singers.

it can use the voice of a selective artist and be shared. the next investment may be in baseball. a rookie card could go to 5.5 million in auction and expected to hit 8 figures when it hits the auction next month. a 1952 mickey mantel card went for 12 and a half million dollars last year. wall street can't get enough of taylor swift, jeffries and others using taylor swift songs as titles as references to her work across wall street appear to be surging. for the year, swift has contributed up to 8 and a half billion dollars to u.s. economic growth in the third quarter due to demand for her

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industry stocks are now in the bottom in the current downturn. evercor is bringing its grading to airbnb and looks at the stock at the current price

level and investors should hold out for a better evaluation. zoom rating is on hold. they see the stocks below the target price with most the downgrade concerns playing out in the particular stock. time for your global briefing. inflation pulling back in the european union according to the data a short time ago, a 3% from last month and 4% in september. in the uk, retail sales following unexpectedly last month and revised figures showing september's drop was worse than first estimated. and sales of volvo cars falling to a record drop overseas. the holdings are at a deeper discount price. coming up on the show, the one word that every investor needs to know today. and the stocks heading into the holiday shopping season. we'll be back after this break. all that planning has paid off. looks like you can make this work.

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roider is take that they are facing a justice development investigation for allegedly restrictions to china. pausing on advertising place form x are on pause because they are said to it be next to anti-semitic contents. gap rising after better than expected profits. president biden officially signing a temporary spending bill the day before a purported government shut down.

that will keep us open for two more months while a permanent bill is worked to you the in congress. keith, this bull market run that we've seen has caught a lot of people offguard. are interest rates the primary driver and can this continue if rates don't go lower? >> great to be with you. on october 27th, we put out a note when the market was around 4100 titled pull back and the people's opportunities. and a big premises behind that note is that interest rates that closed in at 5% were peaking. i think the rates need to stay where they are or move where they are to have more energy than the move that we have seen

recently. >> we have new fund data from bank of america. what they did note amidst of the the government drop in yields, they saw the u.s. treasury fund report their first outflow, roughly a billion dollars, but weekly inflows to stock funds, the second largest of 2023 with the large cap funds seeing the largest inflow since february of 2022 at roughly $23.7 billion. help us reconcile that. >> if there is one thing that brings people back into the market is higher prices. so i'm not surprised that we're seeing more equity flow after the markets moved higher. so sentiment has shifted a bit. the data we're looking at is

for the year. >> what is the word of the day? >> the word of day is digestion. like a big thanksgiving male, you have to digest that big meal. the market is in the process of digesting the gains. and we think there is some upside before the year ends. the marks are moving a straight line. we think there may be a time where the marks are chop back and forth for a little bit before we make another push higher before year end. >> let's hope that the markets don't go comatose after that big thanksgiving meal. thank you very much. have a great weekend, sir. check out the futures right now. the s&p 500 is higher by 17 points, 12 points, roughly.

and the nasdaq higher by 15, 16 points as well. that. >> that does it for us here on worldwide exchange. have a nice weekend. we'll see you back here on monday.

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[speaking in a non-englis language >> i'm joined by - hello everybody and welcome to -- we're live from the nasdaq