it is 5:00 a.m. here at cnbc global headquarters and here is your "five@5." we start with stocks on track to snap a nine-week win streak as investors wait for the december jobs report and what that could mean for the fed's next report. and also a part of the week long slide for big tech and apple with the stock possibly headed to a place it hasn't been in a few years. following chevron's lead, ex ex exxon mobil warning of a $2

billion charge. and antony blinken lands in israel today in an effort to cool the tension in the reegion and later in the show, the small caps our next guest says you should be watching closely for 2024. it's friday, january 5th, 2024. 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 the day with the check on the u.s. stock futures. after a mixed session yesterday, the dow closed higher, but the nasdaq extended the longest losing streak since 2022. it is red across the board. dow opening up t80 points lower. for the week, every index is looking to snap the nine-week

win streak. nasdaq down more than 3% for the week. we are watching apple and a rough start to the new year. down 6% since tuesday. apple's pain may be microsoft's gain an head of the open. we are checking the bond market. the 20-year treasury and 30-year yields. the benchmark here back above 4%. something we will continue to watch. we are asking our market guest about the rise in yields. you see wti is up over 1%. br brent crude is up 1%. that is the set up.

let's check on the top corporate stories with silvana henao. >> good morning, frank. exxonmobil is taking a write down of the california operations. in the filing yesterday, this is related to the santa inez operations off the coast of santa barbara. this is days after chevron had similar writedowns due to the california strict policies. and india operations is being purchased for $2 billion. this will make brookfield the largest operator in that country. this is brookfield's largest telecom deal in four years. openai is in talks with dozens of publishers to license their contestnt as a broader

method to train the content. this comes a week after the new york times sued openai and microsoft for use without expressed permission. this would mean a multibillion dollar penalty for openai and it would be forced to untrain the content. >> it is just getting started. silvana, thank you. see you later on. turning attention back to the markets and the countdown is on for the monthly jobs report out at 8:30 a.m. t the forecast of 170,000 of non-farm payroll. economists say it range from 100,000 to 250,000 or more. if the numbers holds near that

number, that means the economy added 2.7 million jobs last year. that would be the strongest gain since 2015. a hot jobs number could push investors to push back rate cuts this year. traders now see a 63% chance the fed cuts in march. that is down from 71% a week ago. let's talk about this with david waddel from waddel associates. great to see you. >> good morning, frank. good to see you. >> the jobs report coming up at 8:30 a.m. how important is this for the stocks and the bond market? the ten-year yield has risen after the strong adp yesterday. >> it appears to be betting on the over. as you said, there's a range that people are looking at here. anything over 200 or 225 puts the fed back on the table. thing anything below 100 puts recession on the table.

think i the number that is more important is the average hourly earnings. we have not broken below 4% in years. the markets were priced for perfection for the end of the year and now dialing back rate cut fears. jittering this year. >> we were talking about snapping the nine-week win streak. you are telling your clients to look at equal weighted index. the s&p and the other is one i haven't heard of which is the qqqe. why is the equal weighted indexes are the place to be? >> the magnificent seven stocks had a great run. actually, they just stabilized the challenges from the year before. they ended up being 30% of the s&p 500. they are now a funding currency. nobody wanted to sell those into

year end because you needed to show you owned them. maybe you deferred the tax ramifications into 2024 and now you are selling and trying to figure out where to go. last year, you didn't have anywhere to go. the earnings and the s&p are up on the year. earnings in the midcaps and small caps were down double digits. you get earnings up double digits this year. you have a longer menu to choose from and you have overexposure to seven names. you said apple is interesting as well as microsoft. microsoft has gone from a m monetezation company to innovation company. that's why you see the deflation in apple. how exciting is apple and 10% of the q? i would like to be in the middle

of the pack. >> david waddel, great to see you. equal weighted index. thank you. >> equal weight everything. a lot more to come on "worldwide exchange," including the one word investors need to know today. and antony blinken is heading to the middle east to try to ease the tension. and we look at the state of hiring and the banking and financial services sector with james ryan at old national bank corp coming up next. or even trouble with recall., thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown

to improve memory. prevagen. at stores everywhere without a prescription. [disconcerting stomach gurgle] not again. maybe i should get this looked at? [suggestive stomach gurgle] zocdoc? [talkative stomach gurgle] you're right, i bet they deal with this all the time. dr. finley really puts you at ease. let's do it! you've got more options than you know. book now.

u.s. futures are lower right now. it looks like the dow would open up 65 points lower. let's see how europe is shaping up with joumanna. yo europe in the red. that's right, frank. another day of red. we did have slightly more e encouraging inflation data, but headline inflation for the eurozone is 2.9% against 3%. encouraging on the macro front. you see the stock market reaction today is still subdued. one story we have been tracking this morning is coming from china and they are looking to launch an anti-dumping investigation on brandy imported from the eu.

that is hitting the spirits makers this morning. down 5% and 8%. dragging down the luxury names in the cac 40. all of those name coming under selling pressure. ftse 100 is in focus. down .80%. positive signs for the home builders after home sales rose in the month of december. green shoots coming through in the uk housing landscape. we talked about the rate cut expectation as and lenders lowering the mortgage offers. these indices are falling. in terms of the week to date, this is the first trading week of the year and everyone of the indices is end in the reced. the dax is down 1.5%. the french index is something we spoke about.

the only relative is the swiss index. with the performance of healthcare, the swiss index has out performed. frank. >> joumanna. thank you very much. we turn to the middle east and developing story with the shipping giant maersk avoiding the red sea an tattacks. it has turned ships around after being attacked by the houthi rebels. it is not just maersk. chevron is watching closely. the ceo mike wirth spoke with brian sullivan last night. >> we are close with the kazakhstan businesses. we have offshore platforms which have been shutdown with the conflict in the middle east.

we have had ships attacked in the straits of hormuz. we have ships that transit through the red sea that we work closely with the u.s. navy and other military forces to than sure safe passage of the vessels. the reality of doing business around the world as we face these risks. >> joining me now with more is sky news correspondent who is live in jerusalem where u.s. secretary of state antony blinken is set to touchdown later today. nicole. >> reporter: this will be antony blinken's fourth trip to the region since the war in gaza started. he will be in israel visiting the occupied west bank and six countries across the middle east. it is likely we wilhe will be pushing to the third phase of

the war. he will replace it with more targeted operations inside gaza. he will talk about what happens inside gaza the day after the war ends. we heard from the icesraeli defense minister who presented a plan where israel maintains a security presence there and international multi-national force tries to rebuildgaza. that is likely to be the focus of the visit. >> nicole, are we expecting any mention by blinken about the assassination of the key leader in lebanon this week? >> reporter: for israel's part, it hasn't claimed responsibility for that and it never does. the entire middle east region

has been on edge since the assassination of the deputy leader of the political bureau of hamas in beirut. this was so significant because it happened in the lebanese capital. not just on the northern israeli border with lebanon, but deep inside the capital. it happened in the heart of the territory of hezbollah. we heard from hezbollah's leader this week and the response seemed to be hezbollah would go for a calibrated response. they don't want to risk an all-out full-scale war with israel at this stage. he did say they don't fear war. regardless, we haven't seen any real response from hezbollah yet. the region does remain on edge. >>nicole johnson live in jerusalem. thank you very much. coming up here on "worldwide exchange," congress has nine days to negotiate four spending bills to avoid another partial government shutdown. we are live in d.c. with what's

at stake and what can actually get done before that crucial deadline. stay with us. (grunting) at morgan stanley, old school hard work meets bold new thinking. ( ♪♪ ) partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas. morgan stanley.

i was on a work trip when the pulmonary embolism happened. but because i have 23andme, i was aware of that gene. that saved my life.

welcome back to "worldwide exchange." we are turning to washington where congress doesn't get back to work until next week. there are four spending bills that need to be passed before

the partial shutdown. emily wilkins has the latest on the budget talks on capitol hill. >> good morning, frank. at this point, things are not looking that good. one of the key reasons for that waning optimism is congress has still yet to get the top line spending amount. congressional leaders thought they had agreement earlier this year, but hard line conservatives have concerns about reopening the debate of the spending levels and federal debt. tennessee republican chuck fleischman said every day without that top line number brings them closer to a shutdown. they are not quite out of time yet to come to the january 19th deadline. >> one west get the top line number and the numbers, it is

not impossible to get a deal done. if we could get a top line number within a day or two, i think it is possible that we could put something together. >> about 20% of government funding will lapse on january 19th. that includes bills cover the department of agriculture and energy and veterans affairs and transportation and military construction and fda and housing and urban development. the longer a shutdown goes on, of course, the greatest the impacts are. airlines could bear the burden because the faa can furlough staff and you could see issues with loans for crops. speaker johnson has vowed no more stopgap bills, but if they were close to agreement by the 19th, they could have a short-term stopgap. frank. >> certainly a lot at stake, emily. there is another high stakes

deadline on february 2nd. >> that is correct. we will see the rest of the government funding is including the defense bills for this deadline. the issue is what happens if they don't get the individual bills done. johnson said he would try then to move basically a continued level from 2023 for the rest of the 2024. that would lead to a 1% cut across the board and that might not sound like a lot, but that translates into millions of billions of dollars. that would hit the defense sector. there's a lot of pressure on d.c. right now not just to pass something, but actually get the nitty gritty done. >> emily, great reporting. emily wilkins live from d.c.

time for a check of the headlines from nbc's frances rivera in new york. happy friday, frances. >> good morning, frank. we begin with the unceisealing the jeffrey epstein documents. it did provide a glimpse of how the girls were lured to the mansion in florida. the palm beach detective said that epstein's former girlfriend was involved in finding girls to give massages and work at his home. he interviewed 33women. none had massage experience and all of them were younger than 18. in a deposition of the epstein victim whose name has been redacted, she said he took my clothes off without my consent the first time she met him. jeffrey epstein hanged himself in prison in 2019. at least two dozen subway

ri riders are recovering after the derailment in new york city. authorities say an empty train rear-ended another full one of passengers at a low speed spesp sending the train off the tracks. on thursday, the nba fined the nets for a player policy. the nba head of basketball operations said the nets actions violates the spirit of the new rule and what it is trying to accomplish. you are up to date, frank. back to you. have a great weekend. >> frances, thank you. have a great weekend as well. coming up here on "worldwide exchange," could it be the end of meme trading madness?

what amc shares are doing this morning. if you miss "worldwide exchange" you can follow us on your favorite podcast app. more "wex" after this. many opt. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now.

get over here kids. you've got more options time for today's lesson. wow. -whoa. what are those? these are humans. they rely on something called the internet to survive. huh, powers out. [ gasp ] are they gonna to die? worse, they are gonna get bored. [ gasp ] wait look! they figured out a way to keep the internet on. yeah! -nature finds a way. [ grunt ] stay connected when the power goes out, with storm ready wifi from xfinity. and see migration in theaters now.

it is 5:30 a.m. in the new york city area. there is more ahead here on "worldwide exchange." tech looks to cap off the worst weekly run since september. futures are under pressure.

key today is the december jobs report and a hotter or cooler than expected number could mean for the fed's next move. we are laying out top ideas for your portfolio in the first quarter of the trading year. our next guest says the tide may be turning for small cap stocks. it is friday, january 5th, 2024. are yo you are watching "worldwide exchange" here on cnbc. good morning. welcome back to "worldwide exchange." i'm frank holland. let's start off with the half hour check on the u.s. stock futures after a mixed session for stocks yesterday. the dow closed higher, but nasdaq extended the longest daily losing streak since 2022. you see stocks are hitting the lows of the morning with the dow opening up almost 80 points

lower. it's early. for the week, every index is on track to snap nine-week win streaks. nasdaq down 3%. we are also watching shares of apple this morning and what has been a rough start to the year. down 6% for the week on two separate downgrades. apple's pain may be microsoft's gain. ahead of the open, microsoft is worth $100 billion less than apple. the narrowest gap since 2021. the 20-year treasury hitting the highest level since mid-december. the ten-year yield back above 4%. we saw that rise 15 basis points after that stronger than expected adp jobs report which puts more emphasis on the jobs report coming up at 8:30 p.m. eastern. wti and brent crude up .75%.

positive showing for oil in the pre-market right now. a big part of the market narrative today with the december jobs report out at 8:30 a.m. and ex-pectations are for 170,000 increase compared to 199 thunders 199,000 added in november. the unemployment rate as well is an issue. one area shows signs of strength is financial activity. adding 4,000 jobs in november. let's talk about this with jim ryan. jim, good morning. >> happy new year. good morning, frank. >> tell us, jim, old national bank corp. have you added jobs in 2023? paint the picture of the employment picture out there right now. >> mid sized banks like old

national are optimistic for 2024. i think we will continue to add jobs selectively. particularly with relationship management and continuing the infrastructure. i think we're bucking the trend with the biggest banks which shed jobs in 2023. >> all right. one other thing i want to ask about is the big story which is worker retention and worker flexibility. as you add jobs and according to you, you are adding diverse strategic hires. what is the compensation picture like and how do you balance work from home? >> it is a competitive market. there are opportunities for us to continue to add to our team and we're having great success, particularly at banks our size where we just make a bigger impact in the communities and a little closer to our clients. we will continue to do that throughout the year even though

it might cost us more. despite the increased costs, wall street has been receptive to the opportunity to continue to degrow revenue. >> we have seen big banks lay people off. does that create a pool of better talent for you? are you able to get those people to work at your bank? >> you said it well, frank. it is creating opportunities for old national to continue to grow. particularly those largest metro markets where they continue to shed thousands of jobs. >> you are in one of the large metro markets in the chicago area. i want to ask you with the earnings coming out in a few weeks. ihave to ask after a year of disruption with a lot of pressure on commercial real estate and forecasts coming out for more defaults with commercial real estate and the disruption following svb. how does that impact hiring for you? >> i think revenue is going to be a little bit shofter with th

inverted yield curve you showed. we have toexpeexpenses. that might not allow us to hire as many as we would like to hire in a normal year. nonetheless, i am optimistic that we will have a relative soft landing and banks will continue to operate business as usual in 2024 despite our projections or uncertain projections. >> i'm not asking to give us a read on the results which is coming up in a few weeks, but the impacts of the housing markets as rates continue to decline. what does it mean for your business and do you have to hire for people in that area? >> you know, since we didn't lay anybody off in that area, we maintained staffing despite volumes being down in the last year and i don'tanticipate us hiring people.

i'm optimistic the housing market will recover. i was with team members before the holidays and they were very optimistic that it will create -- people are getting used to this level of interest rates and this will create new -- people have been sitting on the sidelines for some time. that will create an opportunity for more demand. >> one last question. i imagine employees are asking the same question. we see the emergence of artificial intelligence and how does that impact your change your hiring needs and worker needs in the office? >> i think that will create an opportunity for us to get more efficient in the back room. i really do. i think that will help us. the reality is it is difficult to go off and staff our back room as much as we want to hire new people, it is difficult. that is the common theme i hear across the midwest from a lot of our customers.

it is hard to hire people. i think these automation tools will help us reduce that need to hire people and those middle area or back room support positions. i am hopeful we can deploy that as an industry and make the client experience better. >> old national bank corp. jim ryan, thank you. good to see you. the polar plunge is coming up. i'm not joining you. >> come join us. >> do not come get me. happy new year. >> good to see you. time for the check of the top corporate stories with silvana henao. silvana, would you do the polar plunge? >> absolutely not. i will also stay warm here. let's get you headlines. spacex is suing the national labor relations board the day after the official accused the company of violating federal law

by firing employees who sent around a letter critical of elon musk. this is an effort by employees in 2022 to get others to sign on to the letter describing the public statements and behavior as embarrassing. spacex said the letter caused distractions for employees and workers who were fired violated policies. berkshire buying more shares of the liberty xm track in recent days. berkshire purchased 3 million shares for $$82 million. it owns 66 million shares. liberty media and sirius announced a deal last month to combine the holdings. and amc stock set to open at a fresh record low after falling 5% yesterday. it is set to open over $5 today.

the movie thoeater chain is on four-day losing streak. the longest since mid-november. in the filing, amc negotiated several private stocks and debt swaps. amc's ceo has repeatedly warned the company faces liquidity challenges. frank. >> a lot to watch. down more than 35%. i thought that twaylor swift movie was big. >> i guess it wasn't enough. >> joe kernen says he was key to get that movie in the theaters. silvana, thank you. turning back to the markets. it is not just the dow and s&p and nasdaq tracking the first down week in nine, but the small capssharply this week. also the second down week in a row. consider this thought piece from market watch suggesting the

russell is destined to under perform. we are evolving from the winner take all economy and they earn most of the economy wide pr profits. that means the earning pie is shrinkin shrinking. it goes on to say the top 100 profitable companies was 48.5% in 1975. by 20215, that shot up to 42.5%. now they are fighting over crumbs. that grim outlook is doing little for the sector. we have amy zhang with us from alger. she has been named one of the top female managers by morning star in 2023. we have her here.

amy, happy new year. >> good morning, frank. happy new year. >> you are focusing on the small cap stocks. one in the healthcare space. the ticker g-k-o-s. it is developing a treatment for glaucoma. why are you bullish on this stock? >> glaukos is a pharmaceutical company. they are a leader on the large glaucoma market. the company was a minimal invasive surgery devices. it recently received fda approval on the technology which is a sustained release drug delivery device that injects

medication in the eye over a three-year period to treat glaucoma. that is a breakthrough innovation. it replaces eye drops and help patients avoid invasive surgery. we think this is really a game changer and that would sustain the company growth over the long period. >> stock is up over 70% in the last year. your other pick in the small cap space is n-t-r-a. a testing company in reproductive health and oncology? >> and natera is one of the most innovative companies with the proprietary biopsy testing.

they start with the reproductive health. the most important growth engine is testing and monitoring for cancer recurrence with the product. the company has built a wide moat that can sustain the revenue profitability for a long time. >> so, both of the companies are small caps and out perform the s&p last year. they don't generate profit. they are forecast to lose money next year. do you think that turns around in a different interest rate environment? >> for glaucos, they have r&d. glaucoma is an issue with the

revenue over $300 million. they will gain a lot of market share and be a dominant player. the company will spend a lot on r r&d. na natera is spending over 30% on r&d. we like those companies which are innovative. in this economy, whether it is a soft landing or a hard landing, growth will be scarce . these two companies should out sdls outdo outgrow the economy. >> thank you, amy. coming up on "worldwide exchange," more recall worries for tesla. this time in china. what it is doing to the stock.

first, not sure where you stand on valentine's day? the company that has new limited edi edition candy hearts, now they have the situationship sweethearts. ikea has a new hot item. a giant bear. the $30 bear winning the hearts of customers around the country. boasting a five-star rating online. it is a viral hit on tiktok. and if you look on social media today, you might see something that i'm going to be posting. #j #j5. our motto is achievement in every field of human endeavor.

that includes business. members include bob johnson and reginald lewis. beyond business arthur ashe is among the most famous members. happy founders day to kappa members. and bonawyn eison has more coming up when "worldwide exchange" returns. stay with us.

i was on a work trip when the pulmonary embolism happened. but because i have 23andme, i was aware of that gene. that saved my life.

welcome back to "worldwide exchange." time for the morning call sheet. rbc with snowflake with theout import perform rating. it has at rapid adoption of the new generative products. you see shares of snowflake down. and okta is being cut from hold to buy by jefferies. jefferies has it has the top pick in the space. and stifel in the gaming and leisure sector.

it believes invess investorswil benefit. it's time for the global briefing. india investigating the units of several shippers, including dhl and u.p.s. and fedex over anti-trust practices and price collusion. reuters says the competition committee is reviewing thousands of emails in connection with the fees charged with airport services by those companies. foxconn with a year over year decline in sales. foxconn logged record revenue in the first quarter of last year after factories resume normal operations post pandemic. also in china, tesla recalling model s and model x and model 3 and model y. the automaker will fix the

issues including the misuse of the steer function. this follows similar recalls in 2 million tesla vehicles here in the u.s. over the last month. coming up, the one word every investor needs to know today. first, yesterday's big movers and what shares of peloton are doing ahead of the open after the blockbuster thursday bounce. why jim cramer says investors should brace for a market shakeup in the weeks ahead. if you miss "worldwide exchange" check us out on apple or spotify or other podcast apps. more "wex" coming up after this. is that a qr code? dr. stafford makes you feel at ease. thanks rash! you've got more options than you know. book now.

hi, i'm jason. i've lost 228 pounds on golo. ♪ you've got more options than you know. changing your habits is the only way that gets you to lose the weight. and golo is the plan that's going to help you do that. just take the first step, go to golo.com. welcome back. time for the "wex wrap-up." we begin with exxonmobil. the impartment will be recorded in q 4. shares are down 6% for the year.

and india tower being purchased for $2.5 billion. brookfield is the largest telecom company in india. and openai in talks to license content. this is after the times sued openai and microsoft. shares of peloton popping double digits yesterday on news it is partnering with tiktok to offer short-term fitness c classes. walgreens is down after slashing the quarterly dividend by 50%. this as the company is looking to strengthen the long-term position. mobileye is warning of

slowing customer orders. customers stock up on chips over supply chain issues and now they are working through the excess inventory. here is what to watch today with the december jobs report at 8:30 a.m. along with the november factory orders and december ism services out at 10:00 a.m. richmond fed president will speak at 1:30 p.m. we constellation brands. the major average for the market as investors sell out of tech. jim cramer doesn't think that is necessarily a bad thing. he spoke out on "mad money" last night. >> no longer do i come out and talk about seven stokcks. the tech giants doesn't mean we will have a total converge eaeaconverge.

i always tell people to remember that in the end we are trying to make our money work for us. you need to buy stocks that go up a great deal. the magnificent seven now feels very incremental mixed with some slides down. there are better opportunities right now out there for 2024. >> joining me now is bonawyn eison. happy new year. good morning. >> happy new year. i appreciate you having me. >> i agree with jim cramer that there are better opportunities outside of magnificent seven and that investors should look elsewhere as the market broadens. >> i think you need to take a balanced approach. i expect the same time of bgrowh might be fool hardy going into 2024. with that said, i think the

best-case scenario has been priced into the market. that is the calculus behind investing in a speculative market with the regional banks. when you look to slide down the risk curve, you are looking for increased outside returns. i agree with that aspect. you are looking at more volatility into the portfolio. >> i want to look ahead to the day. bonawyn, give us a sense of how you see the day shaping up. what is your wex word of the day? >> it is following suit with volatility. again, the goldilocks scenario with the fed cuts on the first half of the year is priced in. we saw from the jobs opening numbers and any deviation from the norm will see volatility in the market. i expect today to be similar in

fashion. >> you have a pick for us. it is an etf. japan hedge equity etf. some of the top holdings are toyota and mitsubishi. we saw the earthquake in japan and the yen weaken. it is also the earthquake which changed the bank of japan's plans. >> essentially, the longstanding story has been deflation and negative real rates and lack of corporate governance. you are seeing that pivot on all three fronts. dxj i'm suggesting because of the hedge. you don't have the same currency risk if you invest there to hedge that krurcurrency. it gives you good risk/reward. we don't expect the magnificent seven to lead us.

>> all right. great to see you. thank you for being here. happy founders day to you. "squawk box" is coming up next. have a great day.

in order for small businesses to thrive, they need to be smart, efficient, savvy. making the most of every opportunity. that's why comcast business is introducing the small business bonus. for a limited time you can get up to $1000 prepaid card with qualifying internet. yup, $1000. so switch to business internet from the company with the largest fastest reliable network. give your business a head start in 2024 with this great offer. plus, ask how to get up to $1000 prepaid card with qualifying internet.

good morning. welcome to jobs friday. we will get you ready for the big number and impact on the fed and markets and your money. a supermarket giant is dropping pepsi and lays in several countries in protest of rising prices. we have details straight ahead. and espn is betting big on women's hoops as part of the $920 million media rights deal with the ncaa. it is friday, january 5th, 2024 and "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. a i'm becky quick with mike santoli and steve liesman. there is a lot riding on this. let's look quickly at where the futures stand on this friday morning. red arrows once again. this has been the picture for the year. granted, the year is four days long in terms of trading days. we have seen weakness in the futures in the morning. we have seen markets down for this week and we will continue to keep an eye on it. the dow is off 60.

the s&p futures up 10. the nasdaq