it is 5:00 a.m. here at cnbc global headquarters and here is your "five@5." we start with stocks struggling to keep momentum going after the bounce back yesterday. futures currently are in the red. a big part of the market move is nike. shares sinking after slashing outlook and revealing a $2 billion cost cutting program. key for investors is the latest read on personal income and pce. the fed's favorite measure of inflation. we will see if powell and company can declare victory today. the white house is looking

at nippon's $14 billion deal for u.s. steel. and then apple pulls the high-end watches from the u.s. store. we speak with a shareholder and gets his take. it's friday, december 22nd, 2023. you're watching "worldwide exchange" right here on cnbc. ♪ good morning and welcome to "worldwide exchange." happy friday. let's start the day as always with the check on the u.s. stock futures. taking a look right now and you see futures are in the red. the dow would open 90 points lower. s&p and nasdaq in the red as well. this after the rally yesterday which cut the losses by more than half. the s&p is on pace for the longest weekly win streak since 2017. up eight weeks in a row. the big part of the story this morning is dow's nike. look at the shares this morning

in the red. slammed after shedding 92 points after revealing a $2 billion cost cutting plan. check on the bond market ahead of the two events today. pce and personal income out at 8:30 a.m. yields on the 10, 20 and 30-year yields are 3.86%. let's see how europe is shaping up with arabile gumede live in the london newsroom with more on the early action. arabile, good morning. happy friday. >> happy friday, frank. the market actuallyhasn't joined in on the festivities in the united states which we saw yesterday. the uptick that came across not filtering to the market in europe. the ftse 100 gaining .10% so far. we have seen the market move

between gains as nd losses. the third quarter gdp number has been revised downward. it was up 0.2%. it is revised to 0.1%. that doesn't necessarily help across the board. you had made note of nike going down 11.5% in the pre-market trading picture. overall look at the sportswear brands across europe. 5.7% for adidas. so, too, puma. negligativity filtering throughe europe sports brands. this negativity may be one to look out for with the open of nike later. >> arabile, thank you. happy friday. you are posed supposed to tell n we are wearing black. good to see you. let's bring in steve

charrone from federated hermes. >> good morning, frank. >> futures are in the red after the broad-based rally. what is putting us in the red? the nike results or something else? >> i think nike has been a little bit of a disappointment. you have china stepping in are surprise regulations which spooked the market a little bit. you have to are careful, frank. we are at the time of year where volumes are low and markets can move a little bit more than you think without a lot of fundamentals behind them. it is a factor of low volume. we had a heck of a rally in the last eight weeks. >> i know you are paying attention to washington, d.c. as well as nike. chuck schumer delaying the recess that was scheduled.

why should investors pay attention to this? is this having a market impact? >> as you look as washington, it will be the bigger story across 2024. that is the story. we have a little bit of an election coming up. the issues which have gone on in colorado raise questions and risks about that. as you look into 2024, politics will play a bigger role at lead in a headline level. when you think about the markets and the economy, the story that inflation is coming down means we will get more evidence of that today with the economy staying strong. as long as employment levels stay strong and inflation comes down, we are bias higher over the course of 2024. >> are you leading me to the next question. pce at 8:30 a.m. eastern. the estimate is core at 3.3% and decline from the previous month of 3.5%. does that give the markets a lot of confidence in your mind or do

we have the idea that the fed has it baked in? >> i think powell was almost over the top in talking about cuts at the last press conference that you would need stay the market narrative change. good news being bad news is the threshold. it threatens the idea that the fed would cut. the economy is relatively strong next year and they are still cutting. that bar has been raised. you have pushback from other governors, but the story is the fed is at least done. markets do very well when the fed is on pause. if we get a couple of rate cuts in the environment where the economy is strong gives us more upside because you have multiple expansion. you need to be a shocker. >> if it surprises to the

upside, if it comes in at expected, that is baked in? >> that's right. >> steve, great to see you. have a great weekend. >> happy new year. let's check on the top corporate stories. silvana henao in the green this morning. good morning. >> good morning, frank. maybe markets will turn green. let's show you headlines. the white house may take a look at nippon steel's $14 billion deal for u.s. steel. lael brainard said the purchase of the iconic american company from the foreign entity appears to deserve scrutiny in terms of the impact on national security and supply chain reliability. if approved, the deal would create the world's second largest steel company. berkshire hathaway continues to grow the stake in occidental

petroleum. 5.2 million shares purchased on tuesday to bring the total to 43 million shares of the 27.7% stake. berkshire paid a price of $60 a share valuing the latest buy at $313 million. warren buffet started pbuying again after one month hiatus. and apple watching are unavailable on their web site. it features a promotional image of the se, the lower cost model, introduced in 2022 which is not impacted by the patent dispute. >> we will have to wait and see with the watches. they are popular. >> i heard they won't work on

your watches. they will only help you is through a software update. >> people love them. >> i have one. i love it. >> see you later on. coming up on ""worldwide exchange," more could come including one word that investors need to know today. shares of nike are hit hard ahead of the open. our next guest is not giving up on this stock yet. more on the patent problems and if it is doing anything to scare off an investor. we dig into the data market center with the ceo of equinix. we have a very bus you hour still ahead when "worldwide exchange" returns.

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welcome back to "worldwide exchange." shares of nike down double d digits after missing revenue expectations. the company expecting sales to increase 1% compared to the previous forecast of mid single digits due to macro headwinds this china. mik nike announcing $2 billion of cuts. all of the moves part of the effort to accelerate innovation and drive profitability. let's talk about this with

jessica ramirez. >> good morning, frank. >> great to have you on a day like this. having a negative impact on the dow this morning. give us a sense. nike beat on earnings, but lowered revenue expectations. is that weighs oing on the stocr something else? >> i'm not surprised this was the reaction and the nike plan going forward. we have seen this from other brands and retailers during earnings season where they have decided to cut costs. it is to navigate during a volatile consumer back drop as we go into 2024 and protect margins. i'm not surprised. i feel the investor community has been bullish on nike and positive joaoverall. they were likely expecting something better, but obviously, it is a prudent approach going forward.

>> you are not surprised. obviously, investors don't like it right now. long term, do you think this is a wise decision? >> go on. >> nearrowing the product line. they are facing competition from hoka and cloud. reducing the assortment as you see competition heat up? >> yes. if if we analyze neike, they have football and golf and the list goes on. what you want is a product line which is productive. you want to reduce anything that not a best seller or of interest to the consumer. you want the best product assortment in itthe store. the product inconvventory has b down. they talked about that. they talked about the promotions. they have been minimal.

they have been protecting margins as much as they can which we saw that to weigh in this quarter and part of the plan going forward. >> there were positives. we don't want to focus on the negatives. jordan and the women's business. women is now 40% of business for nike. how should investors view that? >> that is still a growth channel. women's jordan and running category overall. with women's, we have seen innovation focusing on what is in need for the women's consumer product. that has really generated a lot of women interest. a product that suits women and not necessarily for men or keeping the male mindset. the jordan has a lot of growth they have been tapping into other categories. >> the company highlighted potential sales boost from the olympics. running category. again, nike shares down double digits.

i want to broaden the discussion into the nike results. courtney reagan has more. >> reporter: 2023 was an active year for retail with macroeconomics headwinds. the u.s. consumer proved resilient. in 2024, perhaps that will change. some retailers have called out softness in apparel and home goods this year. home depot called 20 if23 the y of moderation. fitch says it will continue to pressure retailers in 2024 in the same categories. consumers favor travel and experiences. to that point, tourist spend in could present new growth over 2019 levels back when it was normal. the tourists are traveling to the u.s. with the intent to shop.

while artificial intelligence long existed in retail, particularly for product suggestions on linelonline, exp see more targeted ads for suggested products powered by a.i. on retail and social media. machine learning will help improve inventory management and uncover cost efficiencies. harder for human analysis to detect. frank. >> great human analysis from courtney. let's get back to jessica. do have have a top pick? >> with 2024, we believe the first half is similar to 2023 in the second half. consumers are cautious with their spend and retailers are conservative with the outlook and also the way they are managing their business. i don't feel that will necessarily change. we have a tough consumer back drop and geopolitical issues

going forward. as far as favorite categories, wellness and beauty are top. wellness is anything apparel and also footwear. in beauty, anything that is wellness. that is where we see the co consumer spend. when they decide to spend, those are the categories we see. we like ulta and lululemon and dick's sporting goods. any of the retailers which are managing better with the categories is really our top pick for 2024. >> there we go. gentljessica ramirez. thank you for being here. >> thank you. coming up on "worldwide exchange," why shares of two major online video game makers are losing a quarter of the value in the trade in asia. we will have the full story right after this.

♪ is it possible to fall in love with your home... ...before you even step inside? ♪ discover the magnolia home james hardie collection. available now in siding colors, styles and textures. curated by joanna gaines. welcome back. let's check on the headlines are jessica layton in new york. good morning. >> we are beginning with thursday's tragedy in the czech republic. the country rocked by a mass shooting. at least 14 people killed in prague. the massacre happened at the charles university. the suspected gunman is among the dead.

the exact motive is unclear. rudy giuliani is filing for bankruptcy. the move comes the day after the judge ordered the former new york city mayor of the money he owes. he has $5 million of debt and $1 million in assets. the move will not discharge the debt that julianna owes the two former election workers. and the dodgers on thursday signing standout japanese pitcher yamamoto to a 12-year $325 million deal. that's the highest amount ever given to a pitcher. he is the latest acquisition for an l.a. squad that features shohei ohtani. frank, back to you. >> i'm excited for the dodgers. watching ohtani is amazing. >> it will be a great squad.

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at risk as futures point to the lower open. this morning, it's all about nike. shares hit hard in the pre-market after a weak outlook and massive $2 billion cost cutting program. we break it down in a moment. our next guest says the bear case against the paramount warner bros. merger is so much stronger than the bull case. it is friday, december 22nd, 2023. you are watching "worldwide exchange" here on cnbc. ♪ welcome back to "worldwide exchange." i'm hollanfrank holland. happy friday. take a look at the futures. they are in the red across the board. dow opening 90 points lower. this is what you are seeing

right here. this follows a broad based rally yesterday which cut wednesday's losses by half. ahead of the open, the s&p on the pace for the longest weekly win streak since 2017. up eight weeks in a row. we are checking the bond market ahead of personal income and pce out at 8:30 a.m. eastern time. look here at the yields on the 10-20-and 30-year yields. down 1% from there. a big part of the story is dow's nike. shares are getting slammed in the pre-market. set to lose $20 billion of market value at the open today. it is shaving 90 points from the dow. do the math. dow would be flat without the results. sales were not enough to offset sales in china.

it is cutting sales outlook on 1% of concerns. consumers are reining in spending. nike now expects sales to be negative from a year ago. the company is shaving up to $2 billion of costs in the next three years through streamlining and shedding employees and a number of other moves. turning to tech and media in a very busy week for the sector. let's bring in one of our favorite guests for the hot takes for the stories of the week and setup for the year ahead is nancy tangler. nancy, happy friday and happy holidays. great to have you here. >> thank you, frank. i only get up this early for you. >> thank you, nancy. i appreciate it. christmas gift for me. we will get right into things. we kick it off with the widely held stock in the united states. apple is officially halting

online sales of the apple watch series 9 over a heart rate patent dispute. the stock is up 50% this year. give us a sense as an investor, how big of a deal is this for apple? >> i don't think it is that big of a deal. they have other problems. this will get resolved. most people don't know that function is available. i heard many team say this was a stunt to pull forward sales. it may have been, but i don't think it is. i bought one in anticipation of the sales of the watch stopped. the important thing about apple is they have $100 billion of share buybacks. whether or not the stock rallies will put a floor under the price while they figure things out. this notion of innovation that they have not innovated, that was the concern when tim cook

took over in 2011. stock is up since then. you need to respect the name and use weakness to add to holdings. >> big rise under cook. by the way, nancy, i don't think you can call it a stunt if you bought one. it was an effective sales technique. we will move on. we will turn to media and reports of a possible paramount warner bros. tieup to create a streaming giant to challenge netflix. investors are not enthusiastic about the deal. shares are down sharply this week. what is your take? >> i think the biggest concern of the deal is the debt load. it th if they combine, they will have over $60 billion of debt. warner bros. ceo is committed to

lineal tv which is in decline. i look back at office max and office depot. the model going away and they were trying to combine to at least mitigate some of the damage and loss in sales and free cash flow. this is a business model that you want to run away from. streaming is here to stay. they have some streaming exposure. i'm a paramount plus subscriber. i think there are better places to be invested, particularly with the debt load, and the space they are traveling in. >> right now, we have showing the assets that would be combined if this deal happens. some pretty big names. mtv. dc comics. well known things. i want to ask you and maybe you are not as enthusiastic about this tie up, but what about comcast? >> comcast has been a sleeper surprise. the stock has done really well in an environment i would not

expected it to do. comcast has a secure spot. they have cnbc among other assets. the space is getting crowded. you know, i think the way i see it, it reminds me of the telephone companies split up and re-merged. it is a space that is slowing. you have to stand out. the parks that comcast owns. remember, they have a huge dependence on box office. we see that in a slow decline rather than the pre-covid bounce. >> i appreciate the cnbc shoutout. comcast shares up 26% year to date. good year. last, but not least, alpha bet agreeing to a settlement over

the and tyti-competitive behavin the play store. what do you think? >> call me an unenthusiastic owner of google. we own it. we do think it is attractively valued at 17 times earnings. they have a wide and deep mode around them which is an important thing to be aware of. they're behind on generative a.i. you know, the word is that this is going to be a better solution than microsoft. they lost the intellectual ownership of it. the suits are not super debilitating to the company. $700 million they have to pay out in the state suit. the epic suit has yet to be decided. they will appeal all this. these things will string out into 2024 and 2025. i think you use weakness to add to the name if you don't own it. it is not a major holding for us. it is a holding. >> we have to watch out for

that. nancy tengler, thank you. happy holidays. >> you, too, frank. thank you. we will stick with tech. a.i. boom is helping lift one pocket of the; sector in a big way. a data center in portage, michigan as they are purchasing 1,000 acres of land for micron. another name benefitting from the trend is data center equinix. customers include nvidia and partners with all three of the hyper scalers, microsoft, amazon and google. joining me now in the cnbc interview to discuss the data center business and outlook for a.i. in 2024 is equinix ceo charles meyer. >> good morning. >> your stock is having a solid

year this year. your customers, nvidia and walmart and a number of other customers. what do they tell you about the needs for data centers in 2024 and outlook for a.i.? >> what we're seeing and have been seeing for a number of years is a broad trend on dug tall t digital transformation. that continues and, in fact, we see a.i. as fuel on the fire for that demand. right now, really solid pipeline for a.i. as an opportunity and how people are thinking about that and i think that's fuelling, as you said, significant demand for the underlining data sender centers support that. >> you raised your dividend by 25% a few weeks ago. give us a sense. what gave you the confidence to raise your dividend? >> it is a reflection of the cash flow profile of the

business. i think the strength that we have as a market leader as a growing space. that was us assessing the continued have as a reit. i think it is a really good outcome. >> on the last earnings call, another topic you were talking about was private a.i. give us a sense, what is private a.i. and what entities are using private a.i.? >> all of them. we talk about equinix is a place where private a.i. happens. people are em bbracing the hype scalers as the key technology for a.i. and other partners like nvidia. deploying the technologies at equinix. people cared deeply about their data, they want control over

that data. they come to us and say we want control over data. we want to use all of the clouds available to us and they really want their data to be approximate to the cloud infrastructure. we are the place to make that happen. that's what we're seeing and we had some great wins with companies which have been partnering with nvidia and others on the private a.i. opportunity. >> you are saying variety of companies. what companies? what sectors? i know you said all of them. a concentration in some areas. can you deploy private a.i. on hyper scalers which are public cloud? >> when you think about private a.i., you think of deep control of the data and putting that proximate to the cloud in a private setting. it is really much like cloud in terms of the term hybrid cloud.

it is private a.i. which is a similar thing. they are using public clouds, but combining that with a data environment that is private and immi mplementing technology. in the sectors we have seen, we had a great win with continental in the auto space which we have been working with nvidia on that and they are working on a.i. and autonomous driving. a great win with harrison data, an australian company. healthcare and manufacturing and retail. i have seen the nike news. i will tell you retailers are really looking at digital transformation as a major priority. it is fundamental to their survival. we see strength if n that secto as well. >> we mentioned the companies investing in data centers.

your business is spread out and it is diversified around the world. 40% of the business in u.s. asia is about 20%. where do you expect to see the biggest growth next year with data center demand? >> you know, what we are seeing is the front edge of the a.i. wave is hitting more in the americas and u.s. specifically. that is not too unusual for some of the technology trends. we continue to invest aggressively across our foot footprint. i think you will see strength in the u.s. market. we actually had really some accelerated growth in the u.s. market over the last few years and coming back to double digit growth in that market. i think that will be a bright spot for us as we look at the years ahead. >> charles meyers. great to see you. we will have you back and talk

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welcome back to "worldwide exchange." time for the "morning call

sheet." several calling for cuts on nike. shares down 12%. citi is holding firm with the $135 target. dtd cowen is downgreading pap paychex. you can see shares are do down .75%. edward jones upgrading devices from buy to hold over the greater use of a.i. devices. also, cars with enhanced features and continued move to evs should drive chip demand. shares up almost 1.25%. time for the global briefing. shares of tencent and netease are sinking in the overnight

trade after beijing announced sweeping regulations to clamp down on excessive gaming and cracking down on incentives based on the amount of money you spend on lline platforms. and the red sea crisis continues this morning with 150 ships diverted away from the region for the fear of the houthi attack. as a result, the cost to ship goods is surging again. some routes are up 40% month over month costing as much as $10,000 to shipper container. and tesla acquired a new plot of land for the factory in shanghai. tesla says the factory will produce 10,000 battery packs a year with most slated for export. construction is set to begin in the third quarter of this year, with the propduction set for th second quarter of 2024. coming up on "worldwide

exchange," the one word that every investor needs to know today and why history and santa may be on wall street's side as we kickoff the final trading days of 2023. if you haven't already, follow our podcast. check us out on apple or spotify or your favorite podcast apps. more "wex" after this. i'm so glad we did this. edward jones icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot.

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welcome back to "worldwide exchange." a quick look at the tree right there. the quick look at the "wex wrap-up." nike announcing $2 billion of cost cuts as it focuses on cost margins. the economic council president brainard says the

nippon deal needs scrutiny. warren buffett boosting occidental stock to the tune of 5.9 million. it brings the stake to under 28% total. and the frequent flyer programs over deceptive practices. it is looking to weather the devaluation of the frequent flyer miles makes it harder to book tickets. elon musk lashing out on x with cathie wood. musk says the high burden pressure from shareholders that limit efficiency and passive investing is fuelling volatility. here is what to watch. core pce and durable goods. we get december manufacturing and services pmi numbers. at 10:00, it is november new

home sales. it is the most wonderful time of the market as we enter into the santa claus rally today. that may bring fear into investors. bob pisani is here tracking the patterns. >> reporter: frank, it is that time of year. the santa claus rally. the santa claus is the s&p to rise in the last five trading days of one year and the first two trading days of the following year. it is good for an average gain of 1.3% of the s&p since 1950. no other consecutive seven-day period has higher results. it is up 80% of the time. elsewhere, we are in a re remarkably strong period. this is the beginning of the best six months of the year, november through april, and it is also the best three-consecutive months of the year, november, december and january. elsewhere, this is also the end of the pre-election year. the strongest of the four-year

election cycle. if this is not enough for you on seasonality, check this out. when the election year when the sitting president is running, next year, the market tends to out perform. in those years, the s&p gains 12.8%. when there is no sitting president running, the s&p has a loss of 1.5%. the common explanation is that the markets are stronger with a sitting president because a sitting president can pull certain levers to help the economy. number two, markets tend to be weaker with no sitting president running because of increased uncertainty around kpeconomic out outcomes. it looks like there is more life in the rally. back to you. >> thank you, bob. let's talk about those great

stats and more that bob laid out with victoria green at g squared private wealth and you have your santa hat on. you're in the spirit of things. it seems silly to ask based on what are you wearing. bob says 80% of the time since 1950, we have a slanta claus rally. agree? disagree? what is your take? >> i agree. santa is coming to town. he has such strong technicals that are driving this market up. you have seen the best signal we have seen which has expanded. leading out of the bottom in november and december have been small caps. they have been horrible. they are up 20% since the end of october. it is great signals in the market. you could see all-time highs if we get santa coming to town next week and you could close at 4,800. >> i should have known you

thought there would be a santa claus rally coming. i want to ask about nike today. all the declines on the dow futures right now. cost cutting, lowering guide aa gu gui guidance. >> that is the hardest things for investors to grasp. nike is fascinating. they missed a little bit. they have the $2 billion cost cutting which should help. this year, companies that announce cost cutting, have been rewarded. it is interesting to see nike punished. i think a concern of china coming in weaker than they wanted. that's sections and the u.s. caused investors to step back and say you have to get through inventory and do some discounting to get through inventory. and concerns near term with the reductions of the sales

forecast. nike and retail and sporting could take a hit today. >> you gave us your sense of the day ahead. to put a button it, what is your "wex word of the day" here? >> it's blitzen. any number one favorite reindeer name. right now, we are in a blitz raid in the market. a rally, railly, rally. blitzen will lead the way. fun fact. all of the reindeer are female because male reindeers shed antlers in the fall. blitzen and rudolph might actually be chicks. >> this is too much reindeer information. you hit me with so much. you threw me off. bank of america. new records set. $1.3 trillion inflow into cash. what does that say?

>> investors are scared. you are still making the 5% plus. that build up of cash is a bullish sign because dry pouwde on the sideline. this could push more cash into the markets if they don't get the gc yields. investors see a bit of risk and want to make their earnings. i'm happy for anybody moving into the money market or something making them interest. don't sit at 0.1% at this point in the market cycle. >> one more from bank of america. $33 billion of outflows from treasury inflation protected securities. is that the market saying we think the inflation story will continue to go down? >> i think it is. i think pce will confirm this morning. peak inflation is likely behind us. we are seeing the trends and if pce comes in today, your six-month pce is around the 2%

target. i think with the easing inflation concerns, you are seeing peak inflation behind us. >> one of the picks today is well tower. we had another read earlier. two unloved sectors. real estate and healthcare. why bullish? >> don't hate on the reits. some is a play in the changing rate environment. the healthcare and senior living. you have seen the rise of the aging population and construction hasn't caught up. i love this sector. >> i love the santa hat. great to see you. blitzen your favorite reindeer. thank you. one quick look at futures before we let you go. futures are in the red. the dow is down 82 points right now. n nike, alone, 90 points on the down side for the dow. shares down 12% right now. thank you for watching. have a great weekend and a great

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good morning. nike shares today now falling after the company cut the sales guidance and announced $2 billion in cost cuts. recently, we were talking about nike doing well. now the opposite. china unveiling a surprise new rule that could smother profit-general rgenerating features in online games. and holiday travel heats up, the department of transportation

is probing frequent flyer perhaps for deceptive or unfair practices. apparently santa is and a half d navigating his way here as we speak. we will talk about that flight. it's friday, december 22nd, 2023. "squawk box" begins right now. good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with kejoe kernen and andrew ross sorkin. we're set to go for the holidays. lovely tie. >> thank you. lovely dress. >> it's a shirt. >> shirt. okay. >>