it is 5:00 a.m. here at cnbc global headquarters and here is your "five@5." the nasdaq 100 hits a fresh record high on the back of the surging chip stocks. in the middle east, the u.s. continues the campaign against houthi rebel targets in yemen after a third ship comes under attack. lawmakers in washington vote late to fund the federal government for the next few weeks before the next showdown kicks off in march. and apple gets the taste of the consumer demand for the

$3,500 vision pro headset today. and macy's looks to turn things around with cuts. it is friday, january 19th, 2024. you are watching "worldwide exchange" here on cnbc. good morning. welcome to "worldwide exchange." i'm hollafrank holland. we kickoff with the check of the major indices. the dow would open up 40 points higher. this story remains all about tech. the nasdaq 100 is set to open up at the all-time high led by apple and nvidia. fresh comments from mark zuckerberg is moving the trade along. zuckerberg said meta will spend

money on the hardware in the carbon mo coming quarters. amd up over 2%. there is apple. biggest stock in the market. it is sometimes. it is battling with microsoft. moving higher after an upgrade from bank of america. shares are higher this morning up .50%. yields are at the highest level in weeks. the benchmark ten-year yield at 4.14. let's get the overnight trade in europe with carolin roth in the london newsroom. carolin, good morning. >> good morning. frank, we saw a mixed session in asia. shanghai not joining in on the tech party. we saw that playing out with the taiwan market with the chip sector doing incredibly well on the back of the super bullish guidance from tsmc.

the nikkei seeing some very nice gains here up 1.4%. december inflation came in lower than expected. that is not putting any pressure on the boj to move away from negative interest rates any time soon. let's look at the european trading picture. ftse 100 is up .50%. for the week, it is tracking for a decline of 1.5%. remember that hotter than expected inflation print we got earlier this week. this morning, we got retail sales which saw a miss down 3.2%. the dax is seeing nice gains here of 0.2%. overall, this week had a big re-pricing of interest rate

data. we are still looking at losses for the european indices. that means we would have seen three weeks of losses in a row. back to you, frank. >> carolin roth in the london n newsroom. thank you. turning to washington, d.c. and lawmakers hammering out a deal to avert a shutdown which was scheduled to take effect at midnight tonight. we have brie jackson joining me from washington. brie. >> reporter: frank, this pushes the deadline from january to march as the divided congress struggles for full-year government funding bills. >> this votbill is passed. >> reporter: government shutdown averted for now. congress passed the measure that extends funding through two dates. march 1st and march 8th. >> a bipartisan cr which keeps the government open and gives us

time to negotiate and pass full-year funding bills. >> we are gathered once again to kick the can down the road. >> reporter: house speaker mike johnson and senate majority leader chuck schumer reached a deal on how much to spend. lawmakers still need to agree on 12 appropriations bills to fully fund the government for a year. now this funding bill is separate from negotiations over a national security package that would provide aid to ukraine and israel. disagreements about border policy remain. >> whatever we adopt has to be strict. >> it has to be done in a bipartisan, common sense, humane, effective fashion. >> reporter: the biden administration requested $110 billion for war time spending and border security. lawmakers now have more time to work out their differences, but reaching a deal is far from guaranteed. some far-right house republicans are pressing for a strict border

deal that democrats will not support. this is the third stopgap bill passed by congress since last september. frank. >> brie, if the two leaders agreed to a funding deal, why was this cr needed? >> reporter: frank, the answer is time. johnson and schumer came to the agreement this week and both say that it wasn't enough time for the lawmakers to go over the details before the shutdown deadline. >> brie jackson in d.c. thank you very much. turning attention to the latest developments out of the middle east. the u.s. continuing its military campaign against houthi rebels in yemen as the group targeted another ship in the red sea. the targets now stands at 35 in the red sea.

the forces were preparing on firing on ships in the red sea. president biden will continue striking houthi targets. watching oil on the latest news. the oil market is moving higher. wti crude is up .75%. we will continue to watch this story as it develops. turning attention to the top corporate stories with silvana henao. silvana, good morning. >> happy friday, frank. shares of irobot sinking in the pre-market after "the wall street journal" states the amazon deal will be blocked by the eu after the february decision deadline. amazon wasn't informed during a meeting with the eu officials yesterday. amazon disclosed the plans to buy irobot in 2022 hoping to add

it to the portfolio of smart devices. macy's will cut 3.5% of the work force and close five malo indi mall locations. the company says the move will effect 2,350 positions across corporate offices and stores. macy's says the last day of work for impacted staff will be january 26th. the stores that are planning to close are in virginia, california, hawaii and florida. youtube and spotify are joining netflix saying they will not offer dedicated apples for vision pro headset. pre-orders for the vision pro headset begin today. frank, did you put your order in? >> no. 3,$3,500 is a lot of money. no netflix? >> i know. >> wait and see.

silvana, thank you. a lot more to come on "worldwide exchange," including the one word that investors need to know today. first, dig in the tech in the january tech changes. and the other black swan risk facing the market this year. a $36 million pay day for a ceo after a record-breaking year for profits. more ahead here on "worldwide exchange." stay with us. [♪♪]

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welcome back to "worldwide exchange." checking the stock futures as wall street is looking to end on a high note. nasdaq up over .50%. the comeback reflecting a trend in stocks this month after a rough start to the year which saw the s&p lose 1.5% between january 2nd and january 5th. since then it is the bounce back in the nasdaq 100 with the all-time high yesterday. it is set to open at that level yesterday. a.i. with nvidia and microsoft and meta and amd and palo alto adding 119 apppoints to the ind for the start of the year. apple on the back of the upgrade from the bank of america as jim cramer noted last night. >> i cannot emphasize how

important this upgrade was. the analyst who authored it is a student of apple. he is the person with the most thoughtful questions on the conference call. he hasn't been crazy about the stock in a while. that's the best kind. no wonder the stock rallied and worth 3.2%. the best gain since may. >> let's bring in ben emons from newedge wealth. >> good morning, frank. >> the tech trade and a.i. trade is reignited with the apple upgrade which is unexpected. the upgrade was on the prospects for the vision pro headset which we will talk about later in the show and the a.i. what is the view of the magnificent seven and this trade? >> it continues to power in tech. frank, these companies have a great growth profile. there is nothing much to stop that. whether it is interest rates or the election, it doesn't matter. people are buying into the a.i.

trades. it will continue to perform. >> you are into the a.i. trade. you are meh on the markets. the s&p price target is 5,000-ish. give us a sense if tech is great and the a.i. trade is great, what do you see in the rest of the market? >> there will be challenges if you think of consumer discretionary or materials or industrials. sluggish price action there. we have an economy that will slow down a bit further from here. and it may lower rates. i think the tech trade on its own can carry the index to the 5,000-ish level. it is not a bull market at 6,000. >> speaking of bulls, you do a lot of work with tom lee. he is a bullish person. how do you come up with a different one? we'll talk about that at a different time. bond yields are moving higher. the markets are expecting six cuts. the fed is guiding to three. how important are bond yields to

the market? >> it will be because if the fed ultimately lowers rates, it will not lower once, but several times. it is about the economy this year and trying to get inflation under control. the market had overextended with the rate cuts. the fed will not start in march. it will be later this year. >> you are also looking outside the u.s. for opportunities. we're a global show, obviously. the market is india. you are looking at growth for india and china. you see more growth there. we will show etfs to play the indian trade. what is exciting about india? >> if you look at the indian economy, it is like the u.s. economy. the domestic driven. that expanded 250 per year. so, it is an economy which is

growing at 6.5%. inflation is declining. a really good environment with high productivity. technology driven. if you look at the nifty 50, it looks like thes that s thatthes nasdaq. >> do you look at indian tech stocks? >> if you want to play tech, you have to look at individual big names like adr listed here. those are companies that are like our tech companies and growing fast. i think it is the way to play. >> ben emons, thank you for coming in. coming up on "worldwide exchange," a cnbc exclusive with the ceo of elastic and what he has done to help the stock sgeur over 30% in the last year. stay with us. more "wex" coming up.

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every change leads to a bold possibility. you have the vision. we have the insights, financial solutions and global perspectives to help you make it real. barclays corporate and investment bank powering possible. welcome back to "worldwide exch exchange." time for the big money movers. jb hunt missing on eps which fell 23%. jb hunt saying it is due to higher insurance and labor and equipment costs. shares up 4% right now. ppg industries under pressure. the paint giant says it expects the u.s. economy to reman subdued in the first half of the year.

the company adding overall grow global production is at the lowest levels. shares down .50%. and super micro shares are up. smc offering the comments on the a.i. chips which account for half of revenue. shares right now up over 12%. artificial intelligence dominating conversations at davos this week from the growth opportunities to the risk of misinformation. amazon is betting big on japan in 2027 for a.i. services. another company with the hat in the race is elastic. shares doubling over the last year as it benefits from the growing need for cybersecurity and the wave of a.i. enthusiasm. the company has three segments. observe ability and search and

security. customers include cisco and booking holdings and compccomca. joining me is the ceo of elastic. ash, good morning. great to have you here. >> thank you for having me. good morning. >> so much talk about a.i. in davos dominated so many con conver conversations. where do you see a.i. having the biggest impact on your business? >> the biggest impact with a.i. is core of search. when you think about the large language models, you need real-time context on your business so these generative a.i. models can respond. that is what elastic does. that is the role we play. we also see it enhancing security by making it easier for professionals to take advantage of the tools they have and data they have and apply a.i. to get

better insights. >> you have a product that you say creates relevant a.i. search and helps you build applications and build custom a.i. without a large language model. we hear so much about the a.i. what does it mean to create relevant generative a.i.? >> let me give you an example. imagine you are a home improvement store and you want to build the experience that consumers are now able to get with something like chatgpt. chatgpt has been trained and this is true for every large language model. they have been trained on publicly available information. everything on the internet. chatgpt has no understanding of what you as a home improvement store sell in your stores. specifically the real-time inconvventory as i'm based in s

francisco and let's say in the san francisco store. if you want to provide the experience on the web site and somebody comes to the web site and i want to build an irrigation system for the backyard, give me recommendationsand you want those items. here is the link here and we will ship it to you in 24 hours. we allow you to connect your data in real-time to the large language models to get the answers to be relevant to your business. >> how do you bridge the gap o you are not building from scratch? >> a great question. we connect that bridge between your proprietary data to the large language model. when the question gets asked, that gets sent to elastic and the large language model. we facilitate that and we say respond to the question based on

this information about musty inventory. >> i want to ask about cybersecurity. that is 25% of the business. cybersecurity is creating challenges and opportunity with a.i. for your company, what are you seeing with a.i. and cyber? >> a.i. is a great boon for practitioners. can it can get through the noise. a.i. is helping those who are trying to do damage. as an example, we always know human error is the big reason why cybersecurity is a problem in many organizations. when you think about phishing attacks and large language models can create songs in the style of drake or create essays in the style of shakespeare, how hard is it to create an email in the style of your manager?

imagine what that can do to make you more vulnerable to click on the wrong links and allow phishing attacks to go through the system. this is a cat-and-mouse game. we use a.i. to help you get better insights and identify the threats and block them before they really cause damage within your organization. >> ash, if a.i. can create a drake song, it can fool a person in the argues. ash, thank you. >> thank you. here on "worldwide exchange, we are following breaking news. the biden administration is following student debt cancellation for under $5 the billion. the announcement did not specify when borrowers would expect to see the relief. the biden administration canceled $136 billion in student debt for more than 3.7 million americans. we will watch the story this morning. the biden administration

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♪ ♪ from hr to payroll, adp designs forward-thinking solutions ♪ ♪ ♪ ♪ it is 5:30 a.m. in the new york city area. there is more ahead on "worldwide exchange." here's what's on deck. stocks preparing to close out a week as and s&p avoid a

losing week. and why the government is looking to avert a government shutdown. and does the apple headset live up to the hype? we find out on this friday, january 19th, 2024. you are watching "worldwide exchange" here on cnbc. welcome back to "worldwide exc exchange." i'm frank holland. we pick up the half hour check on the u.s. stock futures. the dow and s&p work to avoid a losing week. the nasdaq hits a freesh all-tie high. the nasdaq is moving- higher.

shares of amd and nvidia hitting all-time highs. they are higher again this morning. we are checking the bond market with yields higher. take a look at the ten-year yield. 4.14% this morning. we are looking at oil, specifically after the 2% pop yesterday. wti trading at $74.70 a barrel. up almost 1%. that is the morning setup. we turn back to washington, d.c. where congress passed the third stopgap spending bill to keep the government open as they continue to fight for long-term funding. half the republicans joining with democrats yesterday after the senate voted to pass the bill. it extends the deadlines to march 1st and 8th to draft a dozen appropriations bills for the rest of the fiscal year. lawmakers have little time to get it done. you see how little time they have. the house and senate are in session together for six days

between now and march 1st. let's bring in matt gergin at bca research. matt, good morning. great to see you. >> good morning. good to see you, frank. >> i want to take us back a couple months ago. last year, we saw moody's downgrade the u.s. and fitch as well. they cited polaripolarization. how should this continue in d.c.? >> the u.s. is at a historic level of polarpolarization. in fact, this is a generational struggle. the last two baby boomers standing are president biden and former president donald trump. this is not a time when polarization will fall, but re-testing the highs from 2020. that will make it extraordinarily difficult to

avoid a government shutdown and other quandaries this year. >> you say difficult. you sound like you expect a government shutdown at some point. >> the issue is that speaker johnson doesn't have a majority now. you know, you show the yeas and nays. one member can vote to vacate the speaker seat if johnson is too cooperative with the democrats. we could have chaos easily. >> paul ryan said if it is not contentious, you are not doing your job. $101,000 obligation for every u.s. citizen. is this a big deal?

>> yes. it's a very big deal over the long run. particularly if interest rates stay high. the higher for longer problem is that the payment on that debt starts to really pinch the budget and that will then require congressscongresses in e to cut taxes or spending or both. interestingly on the political front on the context of polar polarization, we see two forms of neither will allow the choice and that choice is to inflate the debt away. we look at the republican side which was the fiscal conservative side, but that is not on offer in the 2024 election if the republicans win and that means they will take the congress as well. they are not likely to impose draconian cuts.

they will not raise taxes. on the other hand -- >> i want to get to your other area of expertise. the geopolitical situation. middle east tensions are boiling. tonight bet on restraint. we have not seen a recession in an election year since the '40s. gridlock is good for the prmarks for the u.s. give us a sense how investors should view those. >> the u.s. uncertainty is an invitation for foreign powers to challenge the u.s. and really encroach on u.s. interests. there's this negative dynamic and vicious circle which biden's veh weakness invites the iranians to blackmail him and threaten regional instabinstability. this is causing ann n n n n ann

issue from the region. we see it exacerbated in the global actions and that feeds back to the u.s. mean meanwhile, the labor market is softening and that is negative for the equity market. >> matt gertken, great to have you here. i appreciate your time. have a great day. >> thank you very much. time for the check on the top corporate stories with silvana henao. silvana. >> good morning, frank. boostin jamie dimon's pay. boosting his pay to $36 million in salary and performance based compensation from $34.5 million in 2022. the board singing dimon's

praises saying his pay reflects his o oversight of the bank. shares of jpmorgan chase are up 24% in the past year. citigroup reducing head count. managers in investment banking business were informed they were let go as part of the reorganization. the report adds ceo jane fraser held the conference call yesterday to discuss the overhaul touching on the broader plan to cut 20,000 jobs over the next two years. shares of wendy's getting a bump in the pre-market. up .75% after the fast food chain announced it is tapping a pepsi veteran as the new ceo. kirk tanner will start february 5th.

tanner is the head of the pepsi north american beverage business steps into wendy's as they face pressure from investors. >> silvana, thank you. turning attention now to apple. the stock having a choppy start to the new year while most of the big tech peers are higher in 2024. you can see on the chart here where apple is down 1.5% year to date. tim cook hopes that changes with the mixed reality headset vision pro. pre-orders begin this morning. ahead of the rollout, youtube and spotify will not launch apples for the vision pro. we have our next guests with us here now. gentlemen, good morning. great to have you both here. scott, i'll start with you. i watched the review on cnet this morning. i want to ask, you seem most

impressed by the entertainment and cinematic abilities of the headset. big deal or little deal with youtube and netflix and spotify saying we're not creating apps. >> it was interesting. the idea of the metaverse is meta defined it and a lot of companies were talking about the cross app ecosystem of apps working together. it is hard to tell whether this move is popping on it later. is this the beginning of the turf war in the new space? certainly google is expected to come out with its own mixed reality headset and other companies are morworking on it. meta's almapps are not on it either. what you will use on it -- this is day zero of the headset. it is interesting to watch. >> give us a sense if you can

give it a grade. >> as far as the audio visual and technical element, it is a 9/10. this is something which has not been seen in headsets i have used. i used all of them that i can think of. the type of mico oled technology in here is vivid and high resolution will show up in other headsets down the road. sony has a business-related one with the oled display. it reaches cinema quality. the hand tracking part and you look at headsets that try to be business focused were trying to do this too, with little success. >> you said you had a couple of difficulty it'sies trying to do yourself. jason, scott said it is a cool

toy right now. great visuals and fidelity. boa upgrading apple on enthusiasm over the headset and a.i. in general. give us a sense is this really a big deal for the stock itself? some people compared it to an iphone. do you think we will see real adoption for the headset for apple? >> that's the key question over the next five to ten years. if you listen to tim cook, he is excited about it. he uses them daily. as far as a shift in the consumer can be as big as iphone. that's a big ask. iphone is 55% of the apple business. no matter what happens at the launch, this is a tiny part of the apple story. there is a big opportunity in the a.i. ar glasses. the interesting peek into where this could go for apple. right now, it is used in the

home. they look like ski goggles. they will be used at home for entertainment and communication and enterprise productivity that eventually on the street, the a.i. glasses can move the needle for apple. remember apple's business model is touch points at the device level to sell more services. it folds into that business model. there is a big opportunity here. it is the first product category for apple since the watch in 2014 or airpods in 2017. >> jason, from the investor angle, what is the issue with the headsets? a lot of people online say you can buy an iphone and ipad and laptop for that $3,5 hun00. they are shipping 100,000 units in the first year.

is selling that the success and should investors be excited about that? >> you know, not out of the gate. there will be a limited supply. they will set out quickly and scarcity to value with that. over the long term, it will get to unit volume. it will not be $3,500 forever. the first is to launch to developers and the second step is to silicon valley. eventually, sell to you and i and our parents. that is how it goes. there are four tiers of adoption. price falls from $3,500 likely to the cost of the iphone. you get the economics out of volume. that is the way we see it playing in the next many years sdplchyears. >> scott, the last word. will this go mainstream? you tried a lot of these devices out. >> for the quality of visuals, it will shock people and the interface and the way it is slowing apps up.

it is interesting. meta looked at this as a game console with increasing extras. that's a harder path because it is its own app store. i think so. it will be less expensive. it has to fold in fitness which meta is already doing. >> you were impressed with the 3d. jason and scott, it is a very comprehensive review. great to see you. have a great day. coming up on "worldwide exchange," friendlier skies for spirit airlines. the comments from the troubled carrier have the stock pushing higher. and will start with the collection of artifacts from nasa and world war ii up for auction in l.a. astronaut signed hardware and uniforms used in combat in world war ii up for sale. and a riddle. reba and post malone and andrew

day. the singers expected to perform for the super bowl lvii. r reba will sing the national anthem. and forget a penny for your thoughts. national croissant day. burger king will celebrate for 1 cent sandwiches. more coming up on "worldwide exchange" after this.

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and stand with palestinians and israelis for basic human rights. welcome back to "worldwide exc exchange." time for the morning call sheet. texas instruments upgraded by ubs. it has cleaner comps and fundamentals. shares up 2% right now. another upgrade from stifel on draftkings. the stock has pulled back from the high last year suggesting it takes advantage of the correction. shares up 1.5%. another downgrade for hertz. je

j jeff jefferies downgrades the stock. and the u.s. strikes more houthi targets in the red sea. president biden says u.s. will continue striking houthis as long as they are a threat to global trade. and amazon is expanding cloud computing for a.i. services. the expansion in tokyo will build cloud capacity in the country. one week after the public debut after the spot etfs in the u.s., hong kong is looking to jump on the bandwagon. it will have a goal of $500 million of assets by the end of the year. coming up on "worldwide

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welcome back. market flash on shares of apple. apple offering concessions with regards to the pay feature. it will let rivals access the pay feature. shares of apple up .50%. that is on the upgrade from boa over the headset. time for the "wex wrap-up." we start off with walmart announcing a pay increase for the store managers. starting on february 1st, managers who hit all targets

will see bonuses account for up to 200% increase of the base salary. basf report ing a slump in earnings offsetting cost cuts. the company announcing shutdowns in the chemicals division and reduction in investments by $4 billion. birkenstock with a loss of $31 million. the german shoe brand warning profit margins could take a hit as it scales up the business. spirit airlines fell 7% yesterday. shares did creep higher this morning after the company refuted a report yesterday that it is planning to explore restructuring options with advisers. irobot moving in the opposite direction saying the eu regulator plans to block

amazon's acquisition of the company ahead of the deadline. and macy's will close five mall locations. it will impact 2,000 positions across corporate offices and in stores. here is what to watch today. january consumer sentiment and january existing home sales. we get earnings from several regional banks and including comerica and fifth-third and state street. we will hear from mary daly after the close today. catch a cnbc exclusive conversation with the chicago fed president austan goolsbee coming up on "squawk box" at 8:30 a.m. a big day on tap with the futures in the green. dow would open up 85 points higher. the nasdaq hit a new record high. it will open up at that level right now. joining me now is dirk willer at

citi. dirk, good morning. >> good morning, frank. thanks for having me on. >> i want to start off with the action on the pre-market. apple with the pre-market and the upgrade from boa. how does that make you feel about the markets? >> in general, we think it is a decent environment. the fundmamentals have been strong. recession talk has receded. citi has recession on the books, but there is little indication it will be an event we need to worry about right now. at the same time, there has been a back up in bonds, but that was to be expected after the aggressive pricing last year. we are going to see rate cuts in the big picture and be in a good spot. >> i want to continue the conversation today. how do you see today shaping up? what is your wex word of the

day? >> the word of the day is hangover. that is what is happening this year. we had a tremendous performance late last year for the 60/40 portfolio and it's likely there will be a pullback. maybe too hard with the fed pricing. that has to be taken out to some extent. citi is not looking for a large cut. therefore, there was a bit of sogginess in s&p and sogginess in bonds. nothing that an alka seltzer can't cure. >> i'm looking at forecast and the market with 11% growth for eps and industrials at 12% and materials at 4%. why cyclicals? >> we are not negative on tech.

we just think the market will broaden out. we have a target of 5,100 for s&p. to get there, you cannot just rely on a few large cap tech stocks to keep going. you do need the market to broaden out and we think that will happen. we think it will happen both in terms of industries in the u.s. and sectors which will also happen in global markets. we think the european or asian markets an are inre interesting. >> you are looking forward to mary daly speaking later today. big deal? >> more of the same. the fed is having a concerted effort to try to confervince th market it is not as aggressive as it is priced. she will add to the chorus. it won't be a turn around story for yields. it is more of the same. >> dirk, we have to leave it there. great to see you. chge is it for us on "worldwide

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good morning. the markets snapping a cold streak. futures trending higher following the gains yesterday. macy's slashing jobs. the work force reduction and it is closing stores. a busy day ahead for the white house. shutdown averted. more student debt erased and more money for ev infrastructure. it is friday, january 19th, 2024. "squawk box" begins right now. good morning.

welcome to "squawk box" here on cnbc. i'm melissa lee with steve liesman along with mike santoli. u.s. equities at this hour look to continue the gains made in the technology. nasdaq is opening higher by 131 points. s&p is adding 119. we are talking about key levels. strong day for semiconductors which many see as the economic indicator. >> apple and semiconductors were a large story yesterday. the largest highest quality mega cap stocks. a divergence again. it does seem as if you had enough of a push there. 4,800 is the intraday high. 4,818 is the all-time