people were bidding. they were buying. the economy was good. so, it was really the right time for rudy kurniawan, for him to come onto the scene 'cause people weren't asking too many questions, and they were raising their paddles a lot. and that meant profit. it is 5:00 a.m. here at cnbc global headquarters and here is your "five@5." we begin with investors with the second to last trading day of the year as the s&p marches closer and closer to a fresh record high. futures are working to keep up gains. apple not wasting time getting the watches up for save a after the import ban fight. and the white house is looking for a global response on the ongoing attacks in the red

sea and critical shipping space. details ahead. bumps in the road for tesla as elon musk finds himself at the center of the political pressure of the safety of evs. and later, the tech giant that rose to the top of the go forth or go home series is standing by the stock in the year ahead. it's thursday, december 28th, 2023. you're watching "worldwide exchange" right here on cnbc. ♪ good morning and welcome to "worldwide exchange." i'm frank holland. let's get you ready to start your day with the check of the u.s. stock futures. that's not it. the futures are across the board in the green. a change in direction right now. dow down. it looks to open 18 or 16 points

lower. s&p and nasdaq are in the green. nasdaq is the best performer. back to the action yesterday. the s&p moving closer to record territory. look at it now. it is less than 1% from its record high. more on that in just a moment. we want to get a check on the bond market with the ten-year yield. 3.81 for the yield. we are looking at energy. specifically oil. wti is the u.s. benchmark down 1%. $73.50 a barrel. brent crude is $79.50 a barrel. that is the setup. let's get a check of the overseas action in asia. the nikkei is the exception down .50%.

the hang seng is up 2.5%. we also want to look at europe this morning. you is see it is inverse right now. the ftse mib is flat. the cac 40 is down .10%. the ftse 100 is down .10%. time for the check of the top corporate stories with silvana henao. good morning, silvana. good morning, frank. a rainy morning in jersey. apple wasting no time in the contested smart watches available to consumers. the tech giant will resume online sales of 9 and ultra watches at 2:00 p.m. pacific time. the company said wider availability will happen by saturday. the move comes after that appeals court decision

temporarily halting the u.s. international trade commission ban on the import and sale of the products over a patent infringement case with masimo. two senators are calling on elon musk to recall any parts in tesla vehicles which may pose safety risks. a letter from democrats cites the investigation published last week showing how tesla blamed drivers for failures of components it has known were defective. they are looking at suspected parts and calling on musk to correct the false and misleading representations made to the safety regulators. and nearly all of the foreign money that flowed into the china stock market this year has already left. this is according to the financial times which says since peaking at $33 billion in

august, net foreign investment in china shares has dropped 87%. that move has largely been fueled by mounting doubts of the beijing willingness to take serious action to boost flagging growth. >> silvana, thank you very much. turning back to the markets and the markets looking to end on a high note. the major indices on track to notch the ninth straight week of winning. the dow and s&p are looking to close 3% higher this year and the nasdaq is on its track to close at the best for the year. let's talk more about quincy crosby. great to see you. >> thank you. >> it looks like we're in the middle of the santa claus rally. is that an indication of what

are you expecting for 2024? >> no, it isn't. one thing we know is when the market as a good year like 2023, you usually can go into the next year and have a positive year. the stats are fairly strong. the other thing that is very important about this rally and not just the santa claus rally, but how broad it has become. that also is a very important indicator of what the next year is going to look like. as long as it remains broad and doesn't have five or six or seven stocks leading the market higher, you can see that the market is looking for value across the board. that is a good sign for the next year. >> you know, speaking of the rally broadening out a bit, i know you are looking at the energy sector. i was looking at the sle and it has been out performing since

the fed's dovish pause in mid-december and up 5% since then. is that the broadening out you are talking about and energy stocks are more attractive next year? >> there are a number of catalysts for that. one is geopolitical risk. we don't want that catalyst in the energy market in the event the containment in the middle east in that conflict. that is a catalyst for oil prices not to inch higher or inch higher or surge higher. the other catalyst actually is a stronger economy. more people going out and more people driving and flying. the airlines use a lot of crude oil. the other aspect is that the u.s. government is starting to replenish the strategic petroleum reserve.

that takes out from the majors that give it to the energy department. the government buys that oil, in other words. they only have now about 11 million barrels of oil they put in. they are down quite a bit. they took out over 200 million barrels of oil. they have a lot more buying to go. >> quincy, i want your take on the latest delivering alpha survey and strategies for the first quarter and beyond. the nation's leading strategists are asked which are the top areas next year. 35% say financial stocks and 23% say high dividend stocks. 19% say healthcare stocks. then 15% say mega cap stocks and 4% with energy and consumer discretionary. what is your take? >> they change. we saw energy leading the market

a number of quarters ago and it came down as it appeared we were heading into a recession. the cuts that came from saudi arabia just did not matter. what we're going to see going into 2024 is we're going to see, i think, the large cap growth names in the s&p 500 across the board do well. especially if the fed comes in with the rate cuts. remember, this rally has been predicated on the fed finish raising rates and the fed cutting rates. the expectations are a rate cut in march. if we do not get that and if the fed somehow decides that the economy is too strong and is igniting inflation again, they will be forced to raise rates. that could stall the rally. >> quincy crosby, great to see you. thank you for being here. >> thank you so much. we have more to come here on "worldwide exchange," including

the one word that investors have to know today, but first, another bite out of apple and the watch ban could help the tech giant's push return to growth. our fourth quarter go big or go home series and why our next guest is not giving up on that stock. and later, we dig into the 2024 stock playbook and the disruption for the media and entertainment industry and what it means for the sector ahead. we have a very busy hour still ahead when "worldwide exchange" returns. stay with us. and eward analysis help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity.

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welcome back to "worldwide exchange." take a look at the year to date s&p laggards. utilities and energy down 10%. looking at the winners for the year. not a surprise on this one. technology on top up over 56%. behind it is communication services. similar is discretionary. possible thoughts of recession. disc discretionary up 42%. we asked our analysts to go big or go home. we challenged them to give us our best ideas of the stock with the biggest upside heading into the fourth quarter. let's bring in james chakmak with his pick of amazon.

the magnificent seven member put in strong gains of the year. up 59%. in the fourth quarter, amazon up 20% with two days to go. james, take that bow. pat yourself on the back. i'll clap for you. what a pick. congratulations. we gave you your props. we have to move ahead. looking ahead to q4. you expect amazon to continue? what is the catalyst for the strength? the ecommerce business or ad business that is a sleeping giant. $12 billion of business last quarter. >> frank, it is all of the above. now talks about reports with advertising being part of the pri prime video experience for 2024. really, the driver for q4 is going to be about continued operational efficiency and adding to the bottom line.

that trend will continue and when this has been a stock which is talked about being so expensive, but within a year or two, you are not looking at the multiple, but the company is trading on the pe basis with the earnings power of the company. we he continue to like it. we see 15% to 20% upside in 2024. 15% to 30% through 2025. >> we are talking about the fact that you have to pay extra to avoid the ads on prime video. when i'm watching the boys, i don't want to see the ads. i want your pick to 2024. coin coinbase. you have a lot of conviction. looking at the coinbase chart. huge year for coinbase. up 150% this quarter alone.

give us a sense of the catalyst for the stock going into next year. >> this is a company that we wanted to own since the ipo, but we couldn't justify the price. we finally got in in august before the run-up. fortunate on that front. when you have a tremendous run like this, it is hard to say it. we think it will go further and in a big way. we are looking to increase exposure across the crypto bucket whether through miners or coinbase. coin specifically, the street is not fully appreciating the revenue potential of the company. we bought in august is because the street estimate assumed that bitcoin would not appreciate $1 above $28,000. that was wrong. now the street is zero revenue

growth from 2024 to 2025. we think that is outrageous. >> coinbase going into the year with momentum. james, stick with us for a moment. the world's most valuable company, apple. a solid year. shares up 50%. it has not felt that positive apple investor. the company has several quarters of falling revenue. steve kovach joins us now. steve, is the path clear for apple to return to growth next year? >> this is the biggest question for apple investors for 2024. will it finally return to the top line revenue growth? apple is said to expect flat sales for the december quarter. despite that, it is part of thing magnificent seven, soaring

all year. looking ahead to 2024, we have good news and bad news with the return to growth. headwinds in china. we know huawei is returning and coming back and putting out new smartphones for the first time in a few years. there is data out there that people are switching back from iphone to the android huawei phones. there is crackdown from the government with the online games and restrictions. that could damage apple's app store revenue and then the slow economic recovery in china. over to the u.s., the watch is still being worked out. that fight is not over yet. now the good stuff. services growth. reaccelerating the high margin business. up 60% in the september quarter. on the hardware side, signals that pc and smartphone demand

may start growing again. here is what won't move the needle. the vision pro headset is a small launch as early as february. it will be in the u.s. only at first. it is not a mass market device. it is interesting to see how apple sells it. >> steve, you mentioned the apple watch news. how big is this for the company coming up in 2024? >> i'll point to what morgan stanley analyst said looking forward to the march quarter. they are saying 2% of revenue is on the line. it could be up to $135 million for every week the watch is banned. they have the reprieve. they will sell the watch in the u.s. as the yesterday and online today through january 15th, until the next beat in the leg fight. apple is working behind the scenes to change the software to potentially get around the patent disputes. it is not a done deal yet.

there is reprevieve for the fir couple weeks. >> steve, thank you very much. james cakmak is still with us. james, back to you. what is your take on the apple eapple's year ahead? >> they have a lot of challenges to overcome. i think the dark horse for the business is on the pc side. as long as you see that mac business reaccelerate, it should proper poleell the stock. i think it will be a safe and steady growths as the estimates bottom out and you revert back to growth. >> james cakmak with $210 for 2024. james, congratulations on the big go home or go big for q4.

we will see what coinbase does in the new year. >> thank you. coming up, fresh hearurdlesr the biden administration in the critical red sea trading route. dad, we got this. we got this. we got this. we got this. life is for living. we got this. let's partner for all of it. edward jones

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on the other side of the coin, the dow laggards. walgreens boots alliance down 29% of the year. chevron and johnson & johnson down as well. turning attention to the latest in the middle east. the biden administration's push to create a strong international response to yemen's houthi t attacks on the red sea shipping. a week after the maritime force to patrol the waters, many allies say they don't want to be associated with it. the pentagon said the force is among 20 nations, but so far, those have not come forward to acknowledge contributions or allowed the u.s. to do so. speaking yesterday, president biden said the strike on the targets in iraq was to further

prevent attacks on american personnel in the middle east. turning to the morning headlines outside of the worldjn new york. good morning, frank. we start with the legal victory. just last week, colorado state supreme court took donald trump off the ballot saying he is not eligible because of the role in the events of the capitol attacks. the party has asked the supreme court to overturn the state ruling. the biden white house is asking for munitions for surface-to-air missiles and more than 15 million rounds of small arms ammunition. more than $60 billion in ukraine

funding is still stuck no ncongress as lawmakers are in recess until next year. and russell wilson may have thrown the football for the last time for the denver broncos. the team would bench the nine-time pro bowler following the krchristmas eve loss. wilson faces a possibility of the team releasing him despite signing a five-year extension in 2022. when they had the blockbuster trade with seattle, i did not see him ending up on the bench. back to you. >> i didn't think he did, either. small consolation. he still gets paid $37 million next year. >> he'll be okay. >> i'm a fan of russell wilson, but i'm not going to cry for him. thank you, jessica. coming up on "worldwide exchange," tesla facing pressures from washington with

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distance of a record high. and the new legal action gm is taking against one u.s. city. we are digging into the stock 2024 playbook and what it means for the media and entertainment industry. it is thursday, december 28th, 2023. you are watching "worldwide exchange" here on cnbc. welcome back to "worldwide exchange." i'm frank holland. we kickoff the hour with the check of the u.s. stock futures. a mixed picture with the dow down right now. it would open 14 or 13 points lower. s&p is fractionally higher. looking at yesterday's action. the dow notching a fresh

all-time high. it is now less than 1% from its record high. we will talk more about that in a moment. we want to get a check on the bond market. the ten-year yield at 3.81. the two-year note is 4.26. we are looking at the energy market with the oil which is wti. you see it is $73.05 a barrel. down 1.5%. it is falling deeper than it did earlier this morning. brent crude is taking a similar move to the downside. trading at $78.60 a barrel right now. let's check on the overseas market in asia. positive session mostly in asia. hang seng finishing the best of the major indices up 2.5%. nikkei is the outlier down 1.5%. we get a check on the trade in europe. looking at the inverse of asia.

the italian mib is fractionally higher. time for the check of the top corporate stories and our silvana henao is back with those. silvana. frank, good morning. let's get you headlines. global dealmaking with data from lseg showing $2.9 trillion of transactions were made this year which is down 17% from 2022. marking the first time that metric has sank below $3 trillion in a ecade. the low inactivity extenttendin from last year with the low m&a and willingness and need to do deals. the fallout from gm with the automaker suing the city of san francisco for more than $100 million on allegations of higher

tax bills. gm is seeking $11$180 million o back taxes along with penalties and interest saying cruise was improperly used to make the tax bill calculations. amazon prime fans, it will incorporate ads into movies and tv shows on the prime video platform starting january 29th as it doubles down on the investment in compelling content. in the email, amazon says no action is required for those who plan to continue paying the $14.99 a month or $139 annually. customers have the option to pay an additional $2.99 per month to avoid ads all together. frank, i will stick with ads. >> i'm torn. it's $2.99 more a month? >> on top of the prime

subscription. there are so many other streaming services you have to pay. >> so many shows i love on amazon. for an ad to pop up? i don't know. >> it messageses with the experience. >> can i borrow $3 a month? we have the latest in the bundle for the boom in technology with a.i. we have julia boorstin with what is coming down the road for media and entertainment in 2024. >> looking ahead to 2024, all of the media giants are facing the same challenging. cord cutting and weak linear ad market and competition with the tech giants for content and

sports rights pushing up prices. they are all fighting along with the tech giants for subscribers in a crowded market. this year, netflix's crackdown drove a surge in subscribers, but as streamers are more y judicious, we could see more bundling of services, but moves similar to verizon's offering of max and netflix together to keep subscribers hooked and minimize turn. and sherri redstone and bob bakish meet with buyers as they face with debt. and warner bros. will be free to sell after the two-year old merger expires. and another factor is the need for sports rights. paramount cbs has nfl that

warner bros. discovery doesn't and look for interest in the nba. the next rights deal starts after next year's season. back to you. >> let's talk more about this space as the calendar turns to 2024 with grace lee, the head of media and entertainment for the americas at allx partners. >> thank you, frank. good morning. >> i want to pick up where julia left it off. the nba deal and sports rights. that is coming up. what is the outlook for that? how does that influence the streamer war? >> the sports rights is actually interesting. it is conducive for people to stick around and then be more loyal to the platform. as you know, the streaming war has started and there is not enough market for 80 streamers to have their own portion. we at alix partners believe it will consolidate down to four or

five major players. in that sense, sports will play a role to make the customers stick out for us and remain in the platform. go ahead. >> you said something that caught me. you said consolidation is on the way. warner bros. and discovery and paramount have been discussed. how do you see it all playing out with the consolidaconsolida? >> sure. 2024 will be a year of change for media and entertainment. as i said, the streaming market has been growing at 22% starting from 2017 to 2023. we believe that growth will come down to mid single digits from 2024 to 2026. that means for the media and entertainment player, they will have to consolidate to get

bigger. i would not be surprised if we see more deals coming in the next few years. >> one thing that is a driving force for media and entertainment is ad spending. the forecast is for ads spending to recover to mid single digit growth likely. what is the outlook with ad spending? we saw a lot of companies say the ads markets was softer after the sort of the israel-hamas war. >> i see two big trends. one is the rotation to digital. as the advertisers start to think about their advertising budgets, they would like to put their money where they can track the clear bottom line. that will cause the rotation toward the digital market. the second thing i expect to see is the more volatility. as digital market is pulled and pushed frequently, that means mostly volatility going into

every quarter from 2024. >> all right. now we're past the strikes and other disruption, what are some of the other things you are looking for in the media and entertainment space? we have seen a shift with the box office. superhero movies, amazing over the last decade. now? not so much. >> the form of content distribution is moving digital and over the top. from the advertising pers perspective, we will see a continued rotation toward the digital channels. with that said, the box office trend, i don't think will be reversed dpgreatly from here. the streaming will be still a preferred platform of media consumption. >> you mentioned this shift with media conconsumption. that goes for box office and

regular tv, especially with local news and local programming. how does that shift? we saw "the new york times" suing microsoft and openai. is that a factor with the influence of a.i.? >> so, in 2023 doesn't go down without mentioning a.i. a.i. has been a major disruption in many industry and hmedia and entertainment is not an exception. a.i. will be real into 2024 whether content creation or production or the other side the media with post-production or data analytics. across the media chain, a.i. adoption will become more real and investors will require the media and entertainment company to generate a reserve by using a.i. >> grace lee, i appreciate your time. thank you. >> thank you.

coming up on "worldwide exchange," picking the cream of the conrop with the magnificent seven. which one will have the biggest year in 2024? to the top trending stories. the study from harvard finding social media companies made over $11 billion in ad revenue from minors last year. lions gate is closing the acquisition of e one. the sale adds shows like "yellow "yellowjackets," but excludes "peppa pig." and the new year's eve celebrations based on entertainment and food costs show orlando and new york city

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welcome back to "worldwide exchange." nasdaq on pace for the best year since 1999. nvidia at the top of the list up over 230% year to date.

behind it is meta and crowdstrike. the other side of the coin are the laggards. moderna down 42%. illumina down 29%. walgreens on the laggard side down 28% for the year. time for the global briefing. a number of allies, including italy and spain, are reluctant to join the maritime response due to the attacks in the red sea. it is made up of 20 nations, but there are 12 named. and narendra modi pushing back on the warnings to the politicians that government hackers may have breached their phones. india is demanding the weakened on the warnings from october.

credit suisse paying a penalty of $3 million to singapore. according to the statement by the monetary authority, credit suisse bankers gave customers inaccurate or incomplete post trade disclosures leading clients to spread charges above the agreed rate. credit suisse has compensated clients. coming up, we have the one word every investor needs to know today and we have the latest on beaten up stock. and if you miss "worldwide exchange," check us out on spotify or other podcast apps. more "wex" after this. hi, i'm ben and i've lost 60 pounds on golo. (guitar music)

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welcome back to "worldwide exchange." look at the year to date s&p gainers. we are looking at nvidia up over 230%. behind it is meta. the third name is builders first

source up over 160% year to date. on the other side of the coin, for the s&p 500. at the bottom is fmc corp down 48%. enphase energy has been hit hard this year down 48%. dollar general is a surprise down 45% year to date. time for the "wex wrap-up." we start with apple which is looking to restart sales after the watch ban. se se senators demanding tesla recall after blaming drivers for the failures of the products on the vehicles.

and musk slams the report that the media to dredge up an injury from two years ago. net foreign investments drop by 90% this year on the concern of the china slumping growth. the u.s. proposing working groups from g7 countries discuss ways to seize $300 billion of frozen russian assets. among those in favor of a potential meeting in it february are the uk, japan and canada. here is what to watch today. two pieces of economic data and november pending home sales. the launch of the space force reusable space plane. it will carry a number of items when it takes off at 8:00 p.m. eastern time today. let's see how we are shaping up on the second to last trading

day of the year. we continue to see the dow hitting the lows of the morning. looking like it would open 35 points lower. joining me now is kari firestone of aureas asset management. kari, great to see you. >> thanks, frank. >> i want to get a sense of how you see the day shaping up. what is your wex word of the day? >> the word of the day is justified. we are using that because in order to think through next year and what we want to own after such a big year, where this year has been phenomenal with stocks with dividends, we are looking at close to 27% return for the year. to hold a position, we really have to justify it to ourselves. does it deserve to be part of the portfolio? is the price justified based on its earnings and future growth

and valuation? that is the word. it means we have to look carefully at what we own and what we buy and what we should sell. we can't justify owning it. >> kari, i want your latest strategies for the first quarter and beyond that. some are asked which of the magnificent seven stocks post the best returns in 20 t24. 44% say microsoft and 24% say amazon and then nvidia. what is your take? >> the average return of that group was about 75% this year. at least that much. if you are talking about what do we think is going to be the best performer of the group that was up that much, it is really hard

to justify the stocks move much this year. i would pick amazon not because i think amazon is selling for valuation that is less expensive, which is 31 times 25 ee earnings which is not bad for amazon. the consumer will hold up better in 2024 than people thought. it would be a relative thing year to year for those stocks. they were so strong this year. the rest of the market has to carry the s&p higher. it is not going to be these names again. they were so great. everything worked well for them. i'm giving you amazon. that is with a low bar of confidence. >> does that mean you think the market will broaden out for another strong year or do you think next year will not be as good as this one? >> i think the market already has brought in. you see what happened in december. up until the end of september

and about 85% of the returns came from the magnificent seven. that is huge. 85%. the rest of the market was up 2%. now the equal weighted s&p is up 11.5% year to date. there has been a move and other stocks have out performed the magnificent seven. that will have to continue, we believe, for the market to go higher. the top four market caps represent 21% of all of the valuation in the s&p. you have to get participation from financials and healthcare and industrials and consumer staples which have done little to negative this year. we expect there to be more of that and that can happen this year if we have lower interest rates and softer landing. >> one of the picks in the financial space for you is a company which has not had a great year. schwab. what gives you confidence for

2024? >> interest rates, we believe, will start to come down. the rise in interest rates caused people could move cash into high yielding vehicles in schwab which is cash sorting. that is ending. the ameritrade deal is getting resolved. it is starting to act better. it was a real under dperformer with the banks. >> kari firestone, great to see you. beautiful painting behind you. >> thank you. quick look at futures before we let you go. the dow hitting the lows of the morning. a mixed picture with the futures. s&p is almost flat. nasdaq is the best performer in the pre market. we will leave it there. "squawk box" coming up next. thank you for watching.

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good morning. new highs for much of the market with two trading days left in the year. will we get there? apple getting a courtroom win. some watches are on sale. two senators taking aim at tesla demanding a recall. it is thursday, december 28th and "squawk box" begins right now.

good morning. welcome to "squawk box" here on cnbc. live from the nasdaq market site in times square. i'm mike santoli along with brian sullivan. you see the futures indicated with the slight gain. the dow yesterday closed at an all-time high. up 13% for the year. the nasdaq is up 44% this year on track for the best year since 2003. the s&p is inches closer to the all-time high under the 44,800 level. and to the treasuries, they started the ten-year yield at 3.81. guys, i really feel as if you

have to look a