it's 5:00 a.m. at cnb headquarters and we start with "five@5." netflix, they're surging since the early days of the pandemic. also, keep the records rolling. futures look to put stocks back in the win column after a mix yesterday after they locked in fresh new highs. also this morning more trouble for boeing pressure building after new comments from two major customers, both of them speaking to cnbc and nc exclusively now ceo david calhoun is heading

to capitol hill. plus ebay joins the ranks of nearly two dozen companies cutting staff in 2024. and later in the show, bill ackman is putting his money where his mouth is in the act of anti-semitism. it's january 24th, 2024. you're watching "worldwide exchange" right here on cnbc ♪ good morning welcome to "worldwide exchange." i'm frank holland. let's get you ready to start your day as always we kick off the hour with a check on u.s. stock futures after a mixed view yesterday, both locking in fresh highs while the dow snapped the streak it looks like the dow would open up 75 points higher, but really we're talking about the nasdaq

also asml pushing tin dex higher right now we're going to check behind yields. you see the benchmark coming in at 4.10, and we're also looking at oil this morning, taking a look at wti, trading at 74.75 a barrel, similar for brent crude. we've g ott to add one more to to our morning setup we're talking bitcoin. cryptocurrency looking to claw its way back just about 20 bucks under that level. keep in mind since the launch of the etfs, bitcoin itself is down double digits. that's your morning setup. now we're going to our top story and big money mover. we're talking netflix. they've added 13 million subscribers in the fourth quarter, revenue also topping forecast, although profit missed they now have more subscribers

around the world the company does not see ads as the primary revenue driver this year, but the streaming jiejt is looking to scale that business >> there's room for multiple players clearly, and when we think about how we compete for some of that ad spent, i think we need to play it to our strengths. we've got an incredibly engaged audience, the most engaged audience watching the most cultured defining films, series, and live events. that is an important place for brands to be and it's something that differentiates us from our competitors. >> let's get an analyst's take with peter good morning. >> good morning. >> the adding of the wwe event, that's exciting to a lot of o people, but we'll get to that in a minute did it change your rating? >> we have a mutual rating on netflix and we'll keep it.

it's fascinating right now between what we know just happen and what might happen in the future. >> interesting so a lot of people are talking about the subscriber growth. >> the subscriber growth, do you think it's sustainable there's going to be industry consolidation and the center itself is changing pretty dramatically. >> the rate of change in long-form video is great, and netflix has changed quickly over the past two years they've paid significantly for their willingness to adapt 18 months ago it slowed down badly. they launched their advertising business which they always said they wouldn't do, and the business accelerated from 6% growth in 2022 to over 12% or 13% growth in 2023 again, massive praise to the management team for their

willingness to adapt the question is what happens next with the benefits of password sharing waning, this growth model is going to have to lean a lot harder on revenue per member it has a lot to do with revenue and pricing. >> i want to talk about the addition of wwe. not live sports but it is sports-adjacent, and it is a live event how meaningful is this for netflix going forward, and does it tell you something about their plans in the future? >> it's sufficiently for sports, categorizing this in some way they're truly athletes while prescripted, they're performing athletic feats. wwe acts like sports for a broadcaster. it is regular programming, it is live programming, it draws an audience in the u.s. about 2 million per episode, so netflix has accurately called it sports entertainment and this is

adjacent to thinks they've already done we think this decision to air, to license wwe for a big number, 5 billion over ten years, is reminiscent f their slow walk toward advertising which is something they said they wouldn't do as recently as two years ago and then gradually socialized and launched aggressively we think netflix will become a bigger player in sports. >> one thing i want to talk about, it touches on subscriber growth the shareholder said expect consolidation, but netflix is not looking to acquire linear assets they went out of their way to say that give us your interpretation of all of that. >> well, it's all reflected tha paramount has to do a deal netflix was speaking to its investors and assuring them they wouldn't be a risk going

forward, which is not shocking netflix has never made a large acquisition and their relative competitive position has never been better in history, so it's hard to imagine why they would suddenly pivot now other than having a very high share price more broadly, we do expect netflix to consolidate, but they're not needing to chase it. they're very well funded >> peter supino says it's a great addition he smells what they're cooking. let's get a check of our other top stories. our silvana le now is here good morning. >> frank, good morning to you. ebay is adding to the list ebay plans to lay off 9% of its corporate workforce. that's about 1,000 full-time employees. the firm will also, quote, scale back on -- scale back the number of contracts we have within our alternate work force over the coming months. the move adds ebay to the ranks

of the nearly two dozen companies announcing layoffs this month alone after some wide ranging cuts last year. china securities regulators are reportedly asking some hedge fund managers to restrict short selling in the stock index futures market and yet another effort to stabilize sagging stock prices the company's blue chip cfi index this week is trading close to a five-year low the country's central bank will cut the ratio rekwiermtd by 50 basis points starting february 5th and provide 1 trillion yuan in long-term capital to help stimulate growth. and bill ackman and his wife are buying a neil 5% stake in the tel aviv stock exchange, the announcement coming as the israeli exchange announced pricing of a secondary offering priced at $5.50 a share. it marks ackman's first major

investment in is reeling since its war with hamas began in october and it comes after ackman sharply criticized harvard university and other schools for failing to root out anti-semitism on their campuses, frank. >> thank you very much. we have a lot more to come on "worldwide exchange" including one word investors have to know today but first markets looking to add to their fresh record-highs as hopes for a near term fed rate cut are starting to fade. boeing is starting to fade they call out the company's quality control issues. and later, listing chips a very busy hour ahead when "worldwide exchange" returns stay with us ♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot.

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introducing storm-ready wifi. now you can stay reliably connected through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network. welcome back to "worldwide exchange." futures are up the dow broke a three-day win streak the s&p 500 closing at another all-time record high also check this out. take a look. this is the dollar index it's up 2%, on track for its best performance since september as traders lower their expectations of early rate cuts from the fed following solid economic data. now there's a 40% chance of a rate cut in march. that's down from 88% just a month ago. let's talk more about this with the partnership managing head

funds. good morning the odds of a rate cut in march basically cut in half. how do you see it impacting the markets? also the five or six cuts, is that still realistic this year >> it seems realistic from a fundamental aspect the economy has slowed people are saying now it can't happen because it hasn't happened, but the market is still pricing in about five cuts by the end of the year despite what the market says, the markets are going lower and the markets are reacting accordingly. >> people are saying now's the time for small caps. you're one of them you have ticker hfmdx. it's a small cap balance focused fund we're going to show the people the performance since the dovish pause.

it's underperforming you say value is the catalyst. why aren't we seeing small caps do better? >> it's a great question and we talked about it before i think it's partly just the excitement for good reason over, you know, stocks like netflix that premarket is higher and kind of the cloud software companies and googles of the world. and that all makes sense they're great companies and the performance makes a lot of sense to me despite the dramatic nature of it but i think that small caps, you know, and mid caps, they get overlooked there's not a ton of liquidity in a passive-driven etf focused marketplace, you know, it's hard to trade in those. i think that, you know, smaller investors kind of benefit from the fact that they don't need that same amount of liquidity, yes, it's inevitable. >> we'll have to wait and see. i have to ask you about

something else we're seeing netflix surge, chip stocks surging as well people thought that run and rally would take a breather, but we just don't see that. >> yeah, we don't. you know, i think that so many people remember back in the dot-com bubble and how, you know, it was an exciting time and that was built on the foundation of sand this is a foundation that's quite strong you know, microsoft, people would say it can't get any bigger that law's been repealed these companies benefit from scale. they're dominant they're not going away. >> so you like small caps. you're a buyer in mega cap tech as well? >> we're not ite note something that would come into our portfolio typically. they're priced to perfection most likely. 30 times earnings on the nasdaq versus 15 times on the mid caps. i don't think it's crazy, but i think that -- you know, i sleep

a lot better, you know, kind of looking at off-the-run names, in our midcap 30 run for example that are not that exciting, don't make for great cocktail party chatter, but you get the job done. >> there you go. we're showing some of your research right now trading to a discount of the broader s&p. that's part oi why you're so bullish on small caps. coming up on "worldwide exchange," an exclusive conversation with the co of pseg much more w.e.x. coming up in just a moment.

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welcome back to "worldwide exchange." time now for your big money movers we start with asml, those shares popping, the chipmaker blowing past esty matss including a 30% jump in revenue. still the chipmaker expects sales to be flats as it navigates the battle between u.s. and china you can see right here those shares are up more than 5% we're looking at other chip stocks moving higher with asml they include amd, intel, and applied material you see amd up almost 2.5% shares of texas instruments, they're under pressure, offering a disappointing revenue forecast

ti also continuing its reduction of factory loadings as it looks to shift its market demands. shares down over 3.5%. s&p shares surging to an all-time high as it looks at a restructuring plan it will focus on ai and expects revenue to rise to $10 billion next year. s.a.p. previously cut jobs to combat higher interest rates and a decline in tech shares shares are up almost 6%. we're also watching pseg this morning, shares down almost 4% in the last 12 months following a volatile year for the rate-sensitive utility spacing it's a large-cap east coast utility company providing utility services to 70% of new jersey it has 2.3 million electric customers and 1.9 million gas customers. pseg also has a nuclear and wind

business joining me now on a cnbc business to discuss utilities and a broader utility transition is ceo ralph larossa good morning. >> good morning. great to be here. >> give us a sense what's going on in the utility span give us a -- paint a picture of the space right now. >> so you did a great job of setting it up. higher interest rate environment. so certainly we've felt that over the past year but i think what you also just said was so key is that usage has gone up, but not necessarily total usage. it's become an issue that people want their power on when they need it, right if you're charging your iphone, watching tv, whatever you might be doing, you need that power and you need to have it reliably delivered to you, and more and more people want it to be cleaner than ever before. >> you're also going to the new jersey board of public utilities to request a rate increase

according to your research, that rate increase is going to be about 9% -- 12%. it's going to cost the average person about 25 bucks more per month. give us a sense. how do you plan to spend that money? you also raised your outlook. >> we have not been in for what we call a straight case for over five years now, and all through that time we've managed the expenses we've talked about, whether it be interest rates or other increases that we've seen in our business services but that spend is going to go right back into the system i mean we've talked about this quite a bit. we've earned on making the investment people want more reliable power. they want their natural gas pipes to be upgraded we're continuing reinvest several billion dollars a year back into the system in new jersey it's paid on it. our reliability is the best in the make and leakage is low.

what's important is -- and we keep an eye on this every single year -- how does that arc of your expenses play out what's really turned out for us, about 3% of your expenses here in new jersey go to pay your electric and gas bill with the average customer and the low income customers have been under 2%. >> i want to talk to you about the energy transition. i know your company is heavily involved in the energy transition what does that mean when we talk today? we've seen a lot of people talk about electric vehicles and some of the demand pull back, and you also have a nuclear and wind business. >> let me start with the supply side certainly on the nuclear business, we've enjoyed the benefits we've seen from the i.r.a. and the certainty that's come into the sector with the investment tax credits we'll be getting. that's across the industry the nuclear industry is safe and sound for many years to come as a result of that what that means for customers,

we'll be generating cleaner power than we would otherwise be without having nuclear power our grid has still delivered 26% from pole. so the loss of nuclear would be very detrimental from an environmental standpoint what it means to you and your home is making sure that power stays on, which i said earlier it's about making sure the wires are as reliable as possible. >> pseg ralph larossa, fwrtd to h have you on. coming up on "worldwide exchange," we await the results from tesla and ibm we talk about the key numbers that our next guest is watching. much more w.e.x. coming up after this meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real.

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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. it's around 5:30 in the area, and a here's what's on deck subscriber shares are taking off and a banner quarter for the streaming giant and massive gains when it comes to customers. that said, the s&p is coming off another fresh all-time high. futures right now are solidly in the green. and the turbulence continues to grow for boeing as its ce prepares to head to capitol hill to face lawmakers on questions about quality control issues it's wednesday, january 24th, 2024, you're watching "worldwide exchange" right here on cnbc.

welcome back to "worldwide exchange." i'm frank holland. both s&p and nasdaq hitting record-highs take a look. in the green across the board. it looks like the dow would open up higher, but you can see the nasdaq really leading the way off the back of the netflix earnings and also the chips earnings netflix taking off after reporting the best subscriber growth since the early days of the pandemic arjun kharpal joins us now from london good morning. >> good morning, frank investors shook off that mixed bag. instead it was the user numbers in focus, and netflix's password-sharing crackdown and

ad-supported tier are helping the company. that i added 13.1 million subscribers during the fourth quarter, stronger growth than what wall street had expected. netflix now has 268 subscribers. it's higher than market expectation. it might not be great news for subscribers. it could raise prices again. clearly netflix very confident in its product even amid rising competition from disney and the others it's also taking its first major foray into live sports with a deal with tko group to stream wwe's flagship roll. it's offering content beyond just tv shows and movies, now

into live sport and gaming the market was very happy with the report netflix shares up more than 10% in after hours, frank. >> very clearly the market was very happy with the report despite that eps miss. so i have to ask you i asked our earlier guest about this how big of a deal is the wwe signing, ten years, $5 billion it's not sports, but it is live events. >> it certainly is they call it sports entertainment, frank valued at more than $5 billion it's a fascinating deal. netflix can leave it after five years. it's now changing its tune it will be a big test for its company how it handles these kinds of events, but also for the appetite on the streaming platform wwe has a strong fan base. it has a strong audience but it might open the door for other live events which will be very interesting as well

for the wwe, it's had mixed success in its own streaming service. but now i think with netflix it's got a much bigger distribution base for its content and could help bring the audiences to it as well. a big deal on both sides. >> they believe the wwe was underdistricted outside the u.s. always great to see you. outside of netflix, we have a number of other companies reporting earnings this week after the close today. kristina partsinevelos and contessa brewer have the key investors to watch. >> it's driven by the access of open source software and now major investments in ai platforms, all within the last three years, and this upcoming earnings report will shed some light as it's sharing revenues from its data platform based on

the cloud. analysts say this is a good push for ibm software business but they see more potential in its consulting business with its 20,000-plus strong staff they're desperate for help implementing these complex ai systems. call it a kconsulting ai uplift they contribute 75% of ibm's total revenues the street consensus right now expects full year 2023 software and consulting revenue growth to fall in line with guidance especially right now as you have companies cautious with their i.t. budgets they expect free cash flow to be slightly above the guidance level which bodes well for its cash flows. >> all eyes are macau. you know it ee been a year since they've fully reopened and yet shares of las vegas sands are

down 12% it's as though investors have given sands no credit for macaw's reopening. it accounts for more than 60%. they've sold out of las vegas. they expect tourism levels with macau macao back up. in the third quarter, it produced more than a billion dollars in revenue 96% okccupancy with room rates running at $700. we may get details on sa sands' hopes for an increase

and atleman's family is planning to buy the mavericks from mark cuban. it's interesting between sports and casinos and texas where there are no casinos -- yet. >> be sure to catch the in tear view with rob goldstein tomorrow at 2:00 p.m. eastern. we cannot forget tesla shares are down as it prepares its results. key will be the demand picture and how profit margins have been impacted by recent price cuts. tesla is looking to start production on a new crossover e v-code name redwood by 2025. let's get the latest on this our friend of the show, all-around good guy, frank, nice to have you here. >> good morning. >> we've got to talk about recent troubles with tesla

we mentioned tesla down 3% year to date, facing price wars in china and europe how are you seeing this quarter? >> yeah, i think you have to embrace this emotion in tesla. you're absolutely right. when the s&p 500 is up at all-time highs, we've seen tesla down 15%, 16%. this pullback, this opportunity is in the wake of a couple of different emotional components we saw hertz sell to,000 of their evs, their teslas. they're dumping those. we saw the halt in germany we're also seeing emotion. we heard elon talking about wanting to own more shares he owns 13% and has another 70% in stock options he has 80, 90% but he wants more it puts shaireholders in the hot seat. >> if it falls below 200, you're

not buying but if it's above, you are? >> i want to own more at a $200 level. but it's a bit in no man's lachltd took nikolai the 50-day is up. but right now it looks like it's up 2%. i think you're going to see a 10% move hopefully to the upside i wouldn't be surprised if there's some type of emotion again from elon on the call. >> a lot of emotion. >> a lot of people see this as an under the radar ai place. it's relatively cheap. it trades at 18 times. let's talk about red hat shares are up 20% since the red hat acquisition. kristina who did a preview for us said analysts say it had previously been under pressure how do you see this? >> i think it's a cloud company. to kristina's point, they've purchased stream sets and sets that continue to put ai tools in their portfolio. if you remember ten years ago

when it was trading above $200, it was a wildly different company. the ibm name itself, big blue, is not the big blue of yesteryear it's an essential name it's in umer 3 in cloud and continues to grow and continues to build up the business to business ai tool set. last but not least, netflix, shares are surping on the back of the big blowout quarter when it came to subscriber fees what do you think about the company? >> what does the rock got cooking? the rock came in here. he was on the road it's up. if you look technicallying there's an opportunity for tesla to go up $60 i think you can still own it, but i think $600 will be it. netflix continues to crow. >> 600 bucks for netflix after a blowout quarter. jeff, it's always great to see you. coming up on "worldwide exchange," growing pressure on boeing with two major companies.

that i sound off on issues with the aircraft maker we have much more on "worldwide exchange" coming up. we'll be back in just a moment

welcome back to "worldwide exchange." we're turning to boeing. the pressure is mounting on the airlines giant after the alaska air blowout. just under $210 a share and moving even lower this morning the latest black eye coming in the last 24 hour, a new

criticism from two of its top customers. first in a cnb exclusive it was united airlines scott kirby speaking with our phil lebeau. he says he's disappointed the manufacturing chamgs keep happening and the adds that his fleet plans do not include versions of the 737 max-9 jet as we've gone through the last year internally as united, we've grown increasingly to believe at best case the max-10 gets pushed further to the right the max-9 is probably the straw that broke the camel's back to us we're going to at least build a plan that max-10 isn't in it we're going to build an alternative plan. >> while boeing is not commenting, they did say in a statement in part, quote, we have let down our airline

customers and are deeply soy for the significant disruption to them, their employees, and their passengers we are taking action on a comprehensive plan to bring these airplanes safely back to service and to improve our quality and delivery performance. just hours ago the ceo of alaskan airlines speaking with "nbc nightly news" saying they found many loose bolts on inspections of the planes and he's angry, frustrated, and disappointed in boeing. >> within few days of the event, i had dave calhoun and his entire leadership team in our offices here and we had very tough candid conversations about what happened and why it happened yes, i'm angry it happened to our guests and our people the men on boeing is what are

they going to do to improve their quality programs in house. >> today the political pressure increases as dave calhoun heads to capitol hill to talk with warner and ted cruz. they will keep, quote, boots on the ground at every boeing manufacturing until quality control systems are in check let's discuss this further with jeffries aerospace and defense analyst. good to have you this morning, sheila. >> thank you. give us a general sense. how do you see the company and stock right now and what's the future of the max jets >> it's taken a downward hit since january 5th. it's lost about $2 billion in market caps since then the market is not just saying

it's a one-time issue. it's really discounting long-term free cash flow so it's saying that the company could earn maybe 6 billion dollars to $8 billion instead of 10 to 15 like the street thinks because it's permanently impairing max production and delivery. >> a very significant infect dave calhoun is coming to d.c. to speak with senators what do you think will come out of it and how will it impact the financials of the stock price? >> i don't think it will impact the financials of the stock price, but boeing has shown it has to work with the faa we don't know what the result will be. it seems like everything is pointing to manufacturing processing issues with more oversight needed, more regulation needed.

there is more oversight they expect than the faa does and the carriers because they're quite expensive pieces of equipment. how much more oversight can we do what else can they do i don't think this is a design issue. it seems like it's more of a process issue. >> i think just the blowout itself was very shocking we've heard from a number of ceos and we're showing some of the comments right now the ceos voicing their frustration and anger. if key customers are saying this, what does it say about boeing going forward what does it mean about the competition landscape going forward? >> so many questions there it's such a large customer

it's their yesterday plan they laid out in 2021 and they have another investor day coming up in two months. basically this plan says they're going to grow 4% to 6% top line frmg how are they going to do that they're going to do by upgauging their fleet by 2% to 3%. that's because they're getting larger aircraft. the max-10 seats more passengers than the max-8 that's why it's so important to them they're so frustrated. delta is another and alaska, another five you don't want these three on your badside, right? so boeing has to get the max-10 certified. even though this has nothing to do with the max-10, it's the max-9, i it's only 171 aircraft. the faa has to srt feed the max-10 and there could be delays so boeing has to work on their relationship and their reputation to fix that. >> i would say so. by the way, we were showing the

audience the airbus chart. it goes straight up and aligns airbus, is this a big opportunity for airbus do you see airbus taking market share after these disruptions? >> they have you know, it's a global duopoly. we used to think of it as 50-50. since 2019 narrow body shares of boeing have fallen 40% with airbus taking 60 by next year airbus probably can't do more than 75 a month if they even get there because they have their own issues with their supply chains and quality there. so we don't see shares going further one way because the supply chain is so strange you have these suppliers you can't really swap them out so it's probably going to end up at 60/40, but what it means for boeing and this is what investors are discounting with the market cap falling is what

does pricing look like for boeing with the aircraft it was impaired. that's our view. is it going to continue to be impaired >> huge story today. boeing shares down half a percent. sheila kaiing on lieu, also great to have you here. coming up on "worldwide exchange," we have the one word every investor needs to know today, plus why our next guest is shaking off concerns that our market share run iruinons nng empty. we'll be right back. much more w.e.x. stay with us $14 girl, what is you doing? but making smoothies is such a hassle. not with blendjet. what's going on? shhhh. hold that thought. just pour in some milk, throw in some frozen fruit, 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. [♪♪] your skin is ever-changing,

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back to "worldwide exchange." time for your w.e.x. wrap-up ebay is cutting about 1,000 employees. this adding to two dozen companies announcing layoffs this month. chinese regulators reportedly asking hedge fund managers to look at the bid to stabilize stock prices the central bank announcing it will cut its ratio requirement for banks by 50 basis points that starts on february 5th and will also provide 1 trillion yuan in capital. bill ackman and his wife are buying a 1% stake in tell aveesh exchange. ford is recalling 1.9 million vehicles they're recalling 2011 to 2019 explorers due to trim retention clips potentially not being properly engaged, allowing that

trim to detach. and asml shares are popping and forecasting similar sales for 2024 the strong quarter is helping lift other chip stocks that include amd, intel, and applied materials. here's what to watch today we have several pieces of economic data. they include weekly manufacturing data and flash services pmi figures, and, of course, the earnings parade continues as a result of tesla, ibm, at&t, csx, and las vegas sands. the s&p is coming off yet another new all-time high. taking a look at futures right now, we're seeing the dow would open up about 50 points higher, but it's nasdaq surging higher on the back of the chip stocks for much more let's bring in kelly cox. good morning great to have you here. >> good morning. great to be here. >> give us a sense we mentioned new records for

netflix. netflix shares popping dhouchl you see strocks trading up and what's your word of the day? >> first of all i say value, frank. i say value because we closed for a third straight week. futures are high looks like we could be gaining on the day the big complaint that comes around with record-highs is the fact there may not be a lot of value, but these are unusual highs. we see a lot of value and that could be unearths as we get the manufacturing and services data today. >> all right speaking of today, you're looking ahead theest mat in december was 47.9. this month, 47.2 what does it say if it comes in at the estimate? >> it would be around 47 it wouldn't be shocking to me. i think manufacturing is still in a tough spot. the thing that investors should

focus on is activity has gone down so quickly. we're starting to see confidence pick back up i wouldn't be shocked if we see the headline number come in well below that 50 that signals expansion. at the same time we need to watch the new orders in manufacturing. we need to look at the optimism from the c-suite right now you know, people took notice when the fed let us know last month that, you know, rates could be coming down this year, and executives might have capex that they're leaning onto. i would expect this manufacturing number not to stay in contraction for too long. >> you're down in charlotte. a lot of people call that the wall street of the south booming real estate market there. your pick is the real estate sector you say it's trading at a discount, right now trading at 38 times five-year, 42 times. is that what makes real estate so attractive? >> yes, i'm in charlotte where real estate is booming, so i might have a bias here but i think as the market has

rate cuts and treasury yields come down, it could have an interesting play real estate is trading at a 38 pe, which s you know, well below its 42 average over the past five years and it's one of those sectors that could be in focus as the market turns more toward rate cuts. you know, we're really bullish on cyclicals that includes banks, consumer staples, but real estate, i think, could be one of the sectors that stands to benefit as we see economic data improve, which we believe will happen considering the uptick in confidence that we've seen lately. >> i think everybody thinks the cuts are going to happen but does it matter to you if it happens in march or is a later cut just as good for your thesis when it comes to the rate-sensitive cyclical sectors? >> i think the market is pretty much kind of led to the fact we're going to get a cut sooner

rather than later this year. if it happens in mar or may, it doesn't change the thesis too much because the outcome is the same but i think the market eyeing several rate cuts isn't so crazy. the fed has told us they're eyeing rate cuts, they're pleased with inflations progress but at the same time you have to remember the unemployment and inflation, the fed's not looking at stock prices here that i want to get it in balance. >> callie cox from etoro, thanks for coming on the show. futures are higher that's going to do it for us here on "worldwide exchange. "squawk box" will be coming up next

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good morning former president donald trump winning the new hampshire primary. rival nikki haley is vowing to continue her campaign. details straight ahead. netflix shares soaring after the company reported a much larger than expected jump in subscribers. more highlights from the results are straight ahead. and china cutting its bank reserve ratio in a move that the central bank says will inject about $140 billion into the

mar markets wednesday, now it's january 24th i have to watch every morning to know what day it is. 2024 "squawk box" begins right now. ♪ good morning, everybody, and welcome to "squawk box" at times square i'm becky quick along with joe kernen and andrew ross sorkin. let's take a look at where the futures are. yesterday you saw a pullback and the s&p closing at all-time highs. this morning green arrows across the board. i'm guessing netflix has something to do with some of that we'll look at that stock in just a little bit the do