it is 5:00 a.m. here at cnbc global headquarters and here is your "five@5." we begin p with rising records. another broad based rally yesterday with the dow and s&p lock in all-time highs. global markets are under pressure this morning. we are following breaking news in the middle east with tensions rising after new strikes on houthis targets this yemen. a live report coming up. a very busy morning in asia following the bank of japan policy decision and new plan to

prop up the struggling stock market. a rough quarter for united airlines doing very little to dent the full-year outlook. the shares are popping this morning. getting set for netflix earnings. the number one item you need to watch when it reports. it's tuesday, january 23rd, 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 of the stock futures with the dow and s&p and nasdaq sitting close to all-time highs. we are fraction ally higher thi morning. the dow is flat. a few points above the baseline. stocks are ine riding a

three-session win streak. salesforce and mcdonald's and merck. we want to look at energy and oil which is under pressure. right now after rbob gas best day since mid-december. you see it is under pressure. that is the setup. let's turn to the global markets. a mixed session off the bank of japan policy session and red arrows in europe. let's get to jp and silvia. jp, good morning or good afternoon. >> good morning, frank. out here in asia, not much to complain about with the indices seeing gains with the exception of the nikkei 225 which saw the step back after the blistering

start to the year. we will get to that in a little bit. we have to acknowledge the chinese stocks. on the back of the reports, authorities and reg regulators roll out a stimulus package. hang seng moving out of the 11-month lows with the mechanism shows offshore funds through the hong kong market. that is why hong kong is out performing the main counterparts this tuesday. i want to go into the currency market which you saw the yuan doing well. the report supporting the aussie dollar. the bank of japan is putting the yen at the top of the agenda today. the yield curve control allowing it to 1%. they did trim a little bit for consumer prices this year.

the consensus has held on the policies which they kept unchanged. the boj may be preparing to exit the negative rate policy by april. they will wait until april because they want to conclude the annual corporate news in april. there is a continued wage increase and that gives them more room to exit the negative rate policy which was a theme for the central banks. based on this, the japanese yen did strengthen. stock hoholders tested the high levels s since 1990. that's it so far in asia. we will see if these trends

continue tomorrow. good morning. >> jp, thank you. let's turn now to the early trade in europe and silvia amaro. over to you. >> good morning, frank. it is a different picture here in europe. yesterday's session saw the positive sentiment we saw st stateside. when you look at european equities, that is not the feeling. it is a red picture across the board in the uk. ftse 100 is down 0.15%. the dax is down with similar moves. i would point out to the spanish market down by 0.7%. we are seeing the biggest down moves in spain. what we could be looking at is investors taking a bit of a pause here to assess what they should do next as we prepare to hear from the european central

bank on thursday and also from the bank of england next week. that positive sentiment is not what is happening so far in today's session. when it comes to the sector picture, let me show you what we are looking at at this stage. at the top is basic resources up by 1.5%. perhaps some of the positive moves we are seeing here at this stage are related to the fact that we had those announcements from china. we could be looking at some stimulus measures there. overall, frank, the picture in europe off the back of earnings is aing ne negative one. >> silvia, thank you. turning attention now back to the u.s. markets. the dow closing at a record high for the third time this year topping 38,000 for the first time ever. it took 25 trading days for the dow to reach that milestone.

the shortest period from milestones from the move back in 2021. that took 21 trading days. let's bring in the chief investment officer at horizon investments. scott, good morning. >> good morning, frank. >> scott, bullish situation on wall street. new highs for the broader market and blue chips. it is important that tech is showing leadership. do you think this is sustainable? will we see more gains this year? >> we think we will see more gains this year. probably tech, but maybe not the tech you are thinking about. not the hardware tech will lead with semiconductors. we are past the hardware part and now moving to the services part and use case of a.i. which will be the more interesting part. it will be broader and more of the market is participating in that trade. we think it will be the largest driver in 2024. >> okay.

despite the new highs for the dow and s&p, you believe wall street is having a vibes recession or a vibe session. we have big data reports out this week. there is a disconnect with the hard data and soft data. we have pce and gdp this week. we have a lot to chew on. what is going on with the vibe session? will it continue after this week? >> that may be starting to end. by vibe session, this is not something that i came up with, but certainly something that describes what is going on in the market and economy for the last year. all that means is that the way people feel and people have been answering surveys are different. we know everybody is flush with cash. they answer surveys and they are astonished when they answer surveys. the soft data and survey data and how i feel against how i am.

we think that may be starting to close. we got the first with the university of michigan sentiment index last week. if we get consumer confidence back up, that will be a tail stailwind for the rest of the year. >> scott, areyou are kind. you are giving someone else credit for that vibe session. i'll take credit for it. just kidding. investors in japan. you are looking at something guests yesterday talked about. 50% or more of japanese listed terms are restructuring. that makes japan more attractive right now? >> we think japan is one of the things that is still under the radar after a great year last year. people my age and been in the business 25 or 30 years, with he h we have never been excited about

japan. when you have something in japan that is more structural from a corporate development standpoint and western values inside of companies, creating shareholder value and things the western companies take for granted, that creation of a more western style japan firms can lead to equity value. that story is getting pulled right now. >> scott, are you saying play by etf or certain sectors in japan you are bullish on? give us one or two. >> if we are talking about japan, etfs are the easiest way to play it. we missix it up. you want the broad based japanese exposure. >> scott ladner says there is a vibe session on wall street. thank you very much. time for the check on the top corporate stories with shares of united airlines

popping. silvana henao is here with that and more. silvana. >> frank, good morning. shares of united airlines are moving higher in the pre-market after releasing its latest quarterly results. right now, we are seeing gains of 6% in the pre-market. the carrier says fourth quarter profits fell 29% from a year ago, but sales were up 10% both topping estimates. for the current quarter, prospects are weaker with united forecasting a first quarter loss between 35 and 85 cents a share with the fleet of planes still grounded. investors tension focusing on the sign of relief. united projecting adjusted earnings to coming in between $9 and $11 a share for 2024 while analysts were expecting a figure closer to 950.

hear more from scott kirby in a cnbc exclusive coming up at 7:15 a.m. frank. >> silvana, thank you. see you later on. turning back to the middle east and the developing story overnight. the u.s. and uk carry out the second joint air strikes on houthi rebel tar ggets in yemen. we have ali arouzi joining us now from tehran. >> reporter: that is right, frank. hitting eight targets in yemen and hitting a storage site under ground as one of them. this is the eighth strike. this is the second joint operation with the uk in the attempt to protect the free flow of commercial shipping. a joint statement said the strikes were carried out by

bahrain and australia and netherlands to restore the stability to the red sea. the statement added a warning to the houthis that the coalition won't hesitate to protect the lives of commerce in the most critical waterways. the latest strikes seem to be smaller than the previous joint operation on january 11th when the u.s. and british war ships hit more than 60 targets in 28 locations. look, the houthis with the backing of the pat rons in tehran, have disrupted the red sea and a number of companies have now chosen the costly route around the cape of good hope. frank. >> the u.s. and uk carry out the second air strikes on houthi targets in yemen. ali, what is the objective of the coalition? we know the problem, but is this

having any impact on deterring the houthis? >> reporter: frank, the objective is destroy or degrade the houthis ability, but despite several carefully calibrated joint attacks, the houthis are defi defiant. they launch a variety of missiles and projectiles at ships passing by the coastline. as long as the cache and weapons and support keeps flowing from t tehran, the conflict will not weaken. the air strikes will only increase their determination and they will respond to every attac attack against. they the rebelieve the internat response is ramped up.

they are still getting a steady flow of missiles from tehran. military experts say that makes it easier for them to hide radars and munitions and launch vehicles in the mountains. as long as the conflict goes on, there will not been any slowdown p in the se attacks. >> ali, great to see you. thank you. we have more to come on "worldwide exchange," including the one word investors have thto know today. first, china looking to prop up the stock market. we are live in beijing next. and p getting ready for netf netflix. we speak to one investor long on the stock. we will head to new hampshire to the primary and nikki haley is holding out hope when "worldwide exchange" returns.

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welcome back to "worldwide exchange." chinese stocks rebounding on the report that the government is weighing stimulus plans to stabilize the stock market. the hang seng is leading this morning up 2%. eunic

eunice yoon is joining us from beijing with the steps the government is considering. eunice. >> reporter: frank, investors got relief today by talk that the authorities here are considering a stabilization fund. reports are saying this could amount to $279 billion and this money would come from offshore a accounts of state firms. the reason for that is they would not want to put more downward pressure on the stock exchange. the measures would be announced later this week if approved by beijing. while this was going on and the talk going on, the premier li had vowed that beijing would take more forcemful action to boost market sentiment. there was not a lot of detail and no shortage of reports within the market of unofficial

guidance. the latest being state insurers are instructed not to sell shares. this comes after the past several days with more reports of the biggest broker being told not to curb short selling and local funds told to buy more equities or launch equity products. frank. >> this report that china will launch a $279 billion stabilization fund. eunice, will this help turn things around? >> reporter: it is calming the market for now. for the moment. there are a lot of big questions as to whether or not this is going to be effective. all this week, people have been really grumbling about the losses they had in the stock market portfolios. people have been comparing to 2015 and 2016 with the stock market crash which came a

stability issue for beijing. if this turns out to be true, the report, then the question is whether or not or not it will address the larger issues that people see with the economy here and the property sector and worries about the private business sector. if it doesn't address that, people are in that wait-and-see mode and if this is a larger change of the attitude at the top. >> we have to wait. looking at the markets in china. up right now over 2.5% for hang seng. eunice yoon, thank you. coming up on "worldwide exchange," new details into the fake s.e.c. tweet green lighting trading for a dozen etfs a day before the actual decision. more coming up on "wex." stay with us.

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and in 20 seconds you've got yourself a nutritiou and delicious smoothie. mmm! tastes just like the ones they sell here. and for a whole lot less. i m ruined. awww. kick your expensive smoothie bar habit to the curb. order yours now at blendjet.com. welcome back. we return to the campaign trail. votes are cast in the new hampshire primary with nikki haley getting a win. we have brie jackson with more from new hampshire. >> reporter: good morning, frank. voters here in new hampshire say they are not excited about the potential biden-trump rematch. they are looking for alternatives. that is where nikki haley campaign's campaign is hoping to

gain support. republican candidates delivering their closing message to new hampshire voters. former president trump wants to seal the deal for the dgop nomi nomination. >> we are coming over to take over the beautiful white house and run the country the way it is supposed to be run. >> reporter: trump's former ambassador for the u.n. nikki haley is looking to seek better than the third place finish in the iowa caucus. >> do you want more of the same or do you want to go forward? >> reporter: that's the sentiment echoed on the democratic side. >> they don't want donald trump. >> reporter: dean phillips is considered a long shot, but he says he hopes to build momentum in the state where biden's name is absent from the ballot. >> he needs competition.

donald trump is coming back to the white house. that is the truth. >> reporter: biden could win through a grassroots write-in biden campaign. >> he has done a stand-up job with the economy. i don't know why we would pick anybody else. >> reporter: here at the brewing company in manchester, craft beer is flowing and so are conversations about the presidential race. some say they are not enthuenthusiasm about the choices. >> this is a tough election. nobody wants to vote for people, but against people. >> reporter: the first in the nation primary gives the country a sense of where voters stand in the 2024 presidential election. frank, as you mentioned, some results have come in. the tiny town of dixville notch have the tradition of voting at the stroke of midnight. we know the results they have there. this year, they had a whopping

six registered voters. four republican and two independent. all six of them voted for nikki haley. >> six voters. a small town there. one thing, brie, president biden's name is not on the ballot in new hampshire today. why is that? >> reporter: it really comes down to timing. president biden's name will not be on the ballot in new hampshire today because democrats have gone with south carolina, the primary there on february 3rd. that is the first sanctioned primary. that move happened after a dispute with south carolina and new hampshire. president biden's name is not on the ballot here because of his support of the democrats decision to move the first primary to south carolina on february 3rd. >> brie, you are in manchester. i'm surprised you did not drive those three hours up to dixville. >> i need to be back here and i

needed to get some sleep. >> brie jackson, thank you very much. we turn to the market alert tied to the contest in new hampshire. former president trump performance in primary season boosting for the big boost for the spac. the media company that runs his social media platform. gains surging 80% yesterday in the wake of ron desantis' exit in the raice. big boost after desantis dropped out of the race. we will continue to watch that. coming up, chinese gaming guto a ready to boost on the relarybout face. we will explain more when "wex" returns.

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it is 5:30 a.m. in the new york city area. there is still more ahead on the "worldwide exchange." the dow closing past the 38,000 mark for the first time ever. a key driver for the markets earnings. netflix quarterly results. we layout the numbers to watch when the numbers cross. and bernie sanders looking to rein outrageous compensation for ceo pay. it is tuesday, january 23rd, 2024. you are watching "worldwide

exc exchange" here on cnbc. welcome back to "worldwide exchange." i'm frank holland. let's start the half hour check on the u.s. stock futures with the dow and s&p and nasdaq 100 sitting at fresh all-time highs. futures are in the green. we open at new highs in we stay on this trend. we are kchecking the bond marke. the yield at 4.13 for the ten-year yield. the oil is under a bit of pressure after rbob's best day since mid-december. the lows this morning showing here with brent crude down .75%. that is the set up. we are looking at earnings. we are watching shares of netflix which report after the close today. key to the report is price hikes and crackdowns on passwords

being the issue. julia boorstin has more. >> reporter: netflix is delivering growth and subscriber additions in line with the last quarter describe of the subscriber beat. 9 million new additions which brings the paid number to 256 million. and 11% is the revenue growth that netflix forecasts. both numbers reflect freeloaders to subscribers as advertising upside. netflix announced 23 million ad supported subscribers. netflix is seen giving a greater advantage to other content and spend less overall on content. despite the 36% run-up in shares since the last earnings report,

60% of analysts have a buy rating on the stock. 34% have a hold and then those at 6% have a sell. frank, back to you. >> joining me with his expectations is the chief investment officer of main street research who owns netflix for clients. james, good morning. >> good morning, frank. >> julia gave us the average price target on the street which has a 2% upside. how do you feel about netflix and what are the expectations for the result? >> i think the street is a little bit too cautious about the company. this is the mega hit of the streamers. the one and only profitable company with 250 million subscribers at this time. who knows what that number will be as julia was alluding to. our view is the stock is up 160% on the year, but keep in mind it

is 30% off the high from the end of 2021. you know, in our view, they are the leader in the space and the stock is trading at valuation that actually is reasonable. >> james, trading at 35 times forward earnings. you are saying that's excessive but a year ago, they reported 12 cents. we are expecting $2.22 a quarter. this company is growing in excess of the pe multiple at 35. maybe not relative of the growth rate. >> you are willing to pay for growth. you hit on it. this quarter is 8.8 million paid subscribers for ad tier. julia laid it out. if they are able to hit the targets or exceed, it is a win

on the password crackdown. is this a bullish sign for the company going forward? >> they will meet the numbers. who knew the crackdown on the password shares across families and friends has been a credit to revenue. we think they will hit or beat that number and that is part of the bullish position. i think you want to think about expenses here. one thing that the street might not get right and i think we're going to be concerned about is looking at the expense. you had the writers' strike end and a content pipeline coming at them. >> you are leading to my next question. content. i want to ask netflix film chief is leaving netflix to start a new company. he joined it in 2017 and oversaw

"bi "birdbox" and "glass onion" among a few. >> it is not great news that he is leaving. this company groomed a lot of people behind him and knows how to attract talent better than anybody in the streaming business. here is where you say if the stock trades down, maybe at a miss slightly or don't meet expectations or the fact he is leaving causes people to be sel sellers means if you don't own the stock, you come in and take a position. that is one of the things i think. if you are a netflix user, the newest movie is phenomenal. >> i was watching the kevin hart movie. it's pretty good. james, we will check in with you down the line.

thank you. time for the check on the top corporate stories with silvana henao. silvana, good morning. >> frank, good morning. new details emerging why the breach of the s.e.c. account on x earlier this month. the agency saying a sim swap attack was to blame. a sim swap is when the phone number is transferred to another device without the permission of the owner. potentially allowing someone to reset account passwords associated with the number. the person who accesses the s.e.c. account sent a fake post claiming the agency approved the first ever spot bitcoin etf which moved crypto markets. we are watching shares of archer-daniels midland this morning after falling 24% in yesterday's session. they are up 1% in the pre-market right now. that was the most on record yesterday and that drop was

coming after the company revealed it was placing its cfo on administrative leave as it investigaties accounting practices. adm is re vvealing it is cutting the fourth quarter properties. senator bernie sanders going after outrageous pay for ceos. sanders and others introduced legislation that would raise taxes on the companies that pay chief executives 50 times more than the typical worker salary. the lawmakers argue the bill could impact some of the country's biggest companies is needed to fight corporate greed. frank. >> silvana, thank you. coming up on "worldwide exchange," united airlines shaking off turbulence tied to boeing's woes. the u.s. and uk are carrying

out fresh strikes on houthi targets. we have the latest on the tension in the middle east. first, forget a penny for your thoughts. 13 pennies for a new home. a town in croatia is getting people to settle in the area with the population fall since 1918. and speaking of incentives, you may have one more reason to hit the gym this year. $5,000 if you keep your fitness resolutions to march 29th. if the goal is not reached, the money is donated to the person's opposing political party. and a doughnut shop inin ro rochester popping. the spike is leading to 39 new employees. too bad the bills lost.

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nutritious smoothies, protein shakes, or frozen treats, just about anywhere! recharge quickly via usb-c. it even cleans itself. order yours now from blendjet.com and bring a little disney into your life. welcome back. time for the morning call sheet. jpmorgan chase cutting the rating on coinbase and moving to unde under underweight. it will disappoint investors. shares down 4.5%.

jeffries is moving teva to a buy. it believes it will transition into the innovation focused company. it expects to see expansion this year with a number of factors lining up. shares of teva up 1%. and cantor fitzgerald initiates nvidia as the a.i. platform and the third cheapest magnificent seven on stock on the pe basis for this year and next. time for the global briefing. bank of japan voting to keep interest rates unchanged at negative 0.1% and stick to the yield curve policy. that keeps the ten-year bond yield at 1%. investors believe the central bank will end the policy at the april meeting. chinese officials are boosting the country's struggling stock market. according to bloomberg, beijing

is looking to mobilize $278 billion. the funds coming from offshore accounts at state owned companies to buy through the hong kong exchange. the plan is drawing skeptical responses from unconvinced investors. and video games stocks are popping in china. ed the video game regulator is removing the content from the web site. the word is it is tied to revisions coming down the road instead of the removal. turning to another developing story we are watching. the u.s. and uk launching strikes on the houthi targets to stop the attacks in the red sea. the strikes on eight targets include rockets andmissile depots and underground storage facilities. this is the second assault by the joint forces and eighth strike overall by western forces on the rebel group.

the pentagon says the strikes were successful. we we are hearing british foreign minister david cameron is degrading their ability to carry out these attacks. ahead on "worldwide exchange," the one word every investor needs to know today and the tech names beyond the magnificent seven our next guest is looking for with opportunities. and if you miss us, check us out on your favorite podcast app. "wex" will be right back after this. are likely to recommend us. ameriprise financial. advice worth talking about.

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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. welcome back to "worldwide exchange." looking at the futures here and you see they have all moved to the red. the dow is flat. the same story for the nasdaq as well. we are on record watch for the indices. we are looking at europe. red across the board. the ftse mib is down fractionally. time for the "wex wrap-up." shares of united popping after the first quarter loss of the boeing 737 max 9 planes. ceo scott kirby is growing concerned over boeing's ability to handle the quality issues.

for more on the quarter, don't miss the interview with kirby at 7:15 a.m. this morning. ten cent riot games is layig off 11% of the staff calling the move a necessity. taking a look at shares up over 3.5%. france's sanofi is buying inhibrx for a drug to boost the business. the shareholders receive $30 a share. bitcoin prices extending the slump from yesterday now hovering below 40,000 since the first time of the launch of the spot bitcoin etfs. and ubs will spend tens of the millions of dollars of debt

and reground. and ericsson is warning of a slump and drop in earnings. and a new survey shows the unhappy workers cost companies 1$1.9 trillion in loss produ productivity. here is what to watch today, a busy day of earnings with results from netflix and 3m and general electric and johnson & johnson and p&g. it is presidential primary day in new hampshire as voters decide between former president trump and former governor nikki haley as the republican nominee. the latest wave of earnings with the dow and s&p hitting fresh records as we are looking at the pre-market numbers. the dow is higher right now.

let's bring in kevin simpson from capital management. >> good morning, frank. >> the futures are mixed right now. what do you make of that? >> we're still reviewing the rally that we saw begin in late october and november and december and now here in january. it is great to see it. it is a result of the fed pivot off the rate hiking policy. we are ahead of the skis right now. it will be up to the economic data to determine whether this market will be able to push higher. >> we will talk about earnings and economic data coming up. i want to get the wex word of the day. >> sticking with the theme we were just talking about, my word of the day is basics. getting back to basics. for this market to move higher, it will be indicative of earnings reports being better than expected. not like last year where it was better than feared and that was good enough. we need earnings produce so we

can justify the market moving. we have a first week last week with 60 companies report. 69 of them beat. that's not good enough. 70 companies coming out this week. look at the names. thi they have to deliver. >> the earnings wall is being shown to the audience right now. i know you are looking at p&g coming up later today. why is that important? >> it is the first one that we own. we own johnson & johnson and verizon. p&g is a bellwether. it talks about the consumer. we want to listen about forecasts for 2024. they are expecting single digit internal growth. they have good earnings last time. so many stocks, frank, this hasn't done anything in two years. for them to be able to produce returns because they have a good dividend and growth history, we need to see them manage their

costs and supply chains because the shutdowns from covid are over. you can't just continue to raise prices. i'm paying attention and not expecting a lot of movement from the stock, but i want to see what they are seeing for the consumer for 2024. >> you are talking about expectations. we were talking about the economic reports out this week. friday is the biggest report of the week with pce. we get preliminary q4 gdp. what do the reports mean for investors as we are close to all-time record highs on the dow and 52-week high on the s&p? >> if you want to see the index go higher, it will be based on the earnings. not so much the multiple expansion. how do you get earnings to go higher? you can improve margins and multiples move up a little bit. they are 19 to 20 going forward. it will be lower, but growth is still growth. friday, you are right.

the big boy for the week with inflation. >> kevin, your picks are a.i. by acquisition picks. some mixed results with the stocks with the acquiacquisitio. why are you looking at a.i. by acquisition over the magnificent seven stocks? >> sometimes the acquisitions take time to build the synergy. if you missed the big seven trade, these are three stocks, cisco, ibm and broadcom which made great acquisitions to allow them to be participates in the a.i. trade and still having tons of free cash flow. every acquisition is not built the same. the broadcom vmware merger stock is on a tear. you show ibm at quite the opposite. they bought red hat a hundred

years ago. everybody thought that was a square peg in a round hole. it is not. this is a company now that can progress and turn the a.i. trade into a profitable part of the business. you are speculating a little bet less with the old school companies. you don't want to mention cisco in the acquiacquisition, but acquisition is starting to pay off. >> kevin, thank you. that does it for us. "squawk box" system is coming u. thank you for watching. is that a qr code? dr. stafford makes you feel at ease. thanks rash! you've got more options than you know. book now.

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good morning. voting is already under way in some parts of new hampshire as the state's presidential primary kicks off. we have to mention dixville notch. it is almost like gobbler's knob. nikki haley won 6-0. details straight ahead. united airlines shares soaring after the full-year guidance was impressed by the street. we have an interview with scott

kirby. and senator bernie sanders is pushing to raise taxes on companies with the highest pay discrepancy with the ceo and the average worker. what? he just keeps on going. bernie? it is tuesday. it must be bernie? it is january 23rd. "squawk box" begins right now. good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. u.s. equity futures are flat this morning. i'm not going to call the couple points here or there. flat