it is 5:00 a.m. here at cnbc global headquarters and here is your "five@5." we start with stocks riding a five session win streak as tech continues to power wall street higher. we will see if the key economic report adds fuel to the fire. and also another big day for earnings we are watching shares of tesla taking a hit after a major sales warning for the year ahead. and we are keeping an eye on big blue despite the sour outlook on the economy. another hit for boeing federal regulators put a cap on

the 737 production plan. and later in the show, a new bidder emerges in the paramount sale saga. it's thursday, january 25tt, 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 and we kickoff the hour with the check of the u.s. stock futures with the s&p coming off another record close and looking to extend the five-session win streak the dow would open up 100 points higher we continue to see some signs of the rally broadening out beyond the magnificent seven. this morning, 66 s&p companies are trading at an all-time high or 52-week high. meta platforms crossed the $1 trillion market cap yesterday. a number of other big names,

berkshire, microsoft which is trading under a $3 trillion market cap and marriott and waste management as well on the back of the asml report yesterday, we have a number of chip names hitting all-time highs. nvidia and broadcom and lam research amd up 1%. nvidia is doing the best of all of the stocks on this board which is up 1.25%. perhaps helping that sector more today is ibm shares taking off after the top and boughttom lines earnings bet we will get more coming up here sayis a look at the needs the ten-year note is up to 4.35. look at oil here with the wti trading at $76.25 a barrel

up 1.5%. brent crude trading at $81.15 a barrel that is the setup. we turn washington, d.c. the white house revealing $5 billion for 37 major projects across the u.s the largest item is $1 billion for the replacement for the blacknick bridge the president will visit the bridge two years after he celebrated the infrastructure law signing. we will have more on this later on in the hour. turning back to the market and stocks key to the market action is the fourth quarter gdp report out at 8:30 a.m economists are expecting a 2% increase compared to the 4.9% read that potential slowdown highlighting the impact of higher interest rates which are now at a 22-year high. let's talk more about this and what it means for the markets and your money with anneka

treon. anneka, anneka, great to see you >> good morning, frank. >> talk about the gdp report and the market reaction. are we in the situation where good news is bad news with the market pricing in six cuts this year >> i mean, we all know growth is slowing down in the u.s. it had to. the question is by how much. it is all about what markets are priced in with rate cuts and we do feel more comfortable because the rate cut expectations have come down a bit today versus pre-christmas. >> in your mind, is six cuts likely reasonable? we have seen the fed signal three. the market seems to insist we are going to have more than three. we go into pce on friday

where do you stabnd with the cuc cut outlook? >> the fed is being outspoken and make the pivot, but the ecb is saying we are not ready the bond markets have already eased into the financial conditions so much last year, central banks and europe lifted rates 200 basis points the ten-year german bond yield was down 50 basis points the u.s. lifted 100 points that is one angle of it. the other angle is the u.s. election year. when there is an election year, policymakers do what they can to make people happy. that angle is part of it >> obviously, a lot of policymakers want to make people happy. i want talk to you about your research you are negative on equities in the u.s. you are concerned about the

valuation. so far, only a few companies reporting. 16% reporting. eps is 3.5% above expectations if we see this trend continue, only 16% companies reporting, but if it continues, does it ease the concerns of the valuations >> our concerns are around the index level. you spoke about the magnificent seven. we all have been talking about it if you look inside the index and look at companies, it is less worrying the reason we worry at the index level, it is simple to look at with the risk in equities compared to the risk-free bond market, are you getting paid off? that is the risk premium it is normal the equity should give you the premium of 3% or 4% it only gives you 1% in the u.s. equities last year, soaring u.s. equities it kcame from valuation, not

earnings growth. to your point, if companies can show strong earnings, we can be comfortable. that is the case for certainly companies. at the index level, it is exaggerated. >> we have to leave it there anneka treon, thank you. we are turning to the big money mover and top story iof tesla. it ramps up plans for the next generation vehicle we have arjun kharpal joining us from london with more. looking at tesla shares which are deep in the red after earnings >> reporter: frank, tesla's earnings are 71 cents per share and the revenue for the fourth quarter which missed expectations auto revenue were closely watched at $21.6 billion posting 1% growth. the biggest concern was tesla warning that vehicle volume growth in 2024 quote may be

notably lower than 2023 as the company works to the next generation vehicle tesla has been slashing prices in key markets like china and europe which contributed to that slowdown as its margins remained under pressure in 2023 investors are watching now if tesla may cut prices further amid the continued competition particularly from the chinese ev makers and particularly byd. speaking of new vehicles, elon musk said he sees s the company delivering 250,000 cyber trucks without a timeline he said the production will take longer due to the manufacturing difficulties and complexities. looking ahead, elon musk will start production in texas in the second half of 2025. it was a tough quarter for tesla with expectations high and going into the rest of the year facing a difficult macro environment

and rising competition across the world. frank. >> right now, we are looking at tesla suppliers. under a bit of pressure this morning. i want to go back to something you talked about at the very beginning. china and the price cuts that tesla had to do there. i want to play a sound byte. elon musk issued a stark warning over the chinese competition >> the chinese car companies are the most competitive car companies in the world i think they will have significant success outside of china depending on what kind of tariffs or trade barriers are established. frankly, if there are not trade barriers, they will demolish most other car companies in the world. they're extremely good >> arjun, you listened to the whole call i rarely hear elon musk sound

that down and set that he might be beaten. what was your take on the comments it was sour sounding >> reporter: it was fascinating which the same companies musk is praising are the ones that pose the biggest threat to tesla. byd in the fourth quarter beat tesla in terms of car sales. that company, in particular, is pushing aggressively overseas. here in the uk, you see marketing on tv and billboards byd is making a play for other countries in europe and southeast asia these are markets where tesla plays. xpeng and li are launching cars aggressive live. they are always trying to be one step ahead in the technology around the software side of the car with the self driving features that is something, of course, tesla and elon musk is very aware of and he has seen the competition in china and it certainly is something that can

pose a threat to tesla, but the other traditional oems who have been quite behind in the electric vehicle race. frank. >> the other ev makers in china. byd down .50%. surprising after the tesla report arjun kharpal, thank you time for the check of the top corporate stories with silvana henao. silvana. >> good morning, frank we are watching shares of boeing making another sharp move lower this morning after the faa put new limits on the company's 737 max jet production expansion plans. the agency said it will not agree to any new requests from boeing for expansion and production or approved additional production line force t lines until we are convinced the problems have been resolved.

the news has a small sigh of relief with the other airlines will return to service as soon as friday. shares of paramount global popping in the pre-market. sources close to the matter tell cnbc that sky dance and backers are exploring a deal to take paramount private. sky dance has exchanged preliminary information with paramount, but full due diligence has yet to begin it will be national amusements which controls 77% of the paramount voting stock and sky dance merging with paramount. and hpe hacked by the same russian intelligence group that compromised microsoft and solar winds. hpe said the group accessed and infiltrated data in may of 2023

from a small percentage of mailboxes belonging to individuals in the cybersecurity and go to market and business areas. >> silvana, thank you. we have more to come here on "worldwide exchange," including the one word that investors have to know today. first, more on the tesla rough report and our next guest says could turn it around for the stock. we are digging into a rough year for luxury stocks and the key report out later today. and later on, the chinese r ock looking to prop up support fothe sector a very busy hour ahead when "worldwide exchange" returns stay with us i've been doing flight nursing for 24 years. as you get older, your brain slows down and i had a fear that i wouldn't be able to keep up. i heard about prevagen from a friend. i read the clinical study on it and it had good reviews. i've been taking prevagen now for five years and it's really helped me stay sharp and present.

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welcome back to "worldwide exchange." taking a look at futures in the green. the dow would open up85 points higher we always say it is early. ibm is one of the big gainers here up 7.5% intel reports later today. up almost 1.5%. let's see how europe is shaping up as the trading day gets under way silvia amaro is in the london newsroom >> good morning, frank let me give you context. yesterday, we saw the stoxx 600 ending wednesday's session up 1% we saw european equities benefitting from the positive momentum that we had seen stateside. additional stimulus measures in china and also some positive earnings news from europe.

as you look at equity markets today, you can see to my left that it is red across the board. i would highlight in germany, the market is down 0.3%. we are seeing the biggest moves to the downside in spain by almost 1%. this as we are counting down to the ecb first rate decision of the year the krcentral bank is expected keep rates on hold markets are pricing in 62% chance of a cut at the april meeting. that is the latest opinion from markets. of course, the biggest move is expected actually by june. if i show you quickly how european bond yooields are movig we had seen a lot trying to get on the higher yield, but we will

see what helps ackmessage from b about the potential rate cuts and what it means for the bond market >> silvia amaro, thank you. turning to the world's largest luxury goods maker lvmh is behind brands like vuitton and tiffany is expected to report a profit of $17 billion and sales topping $93 billion. with investors focusing on slower growth, shares are down 20% in the last six months during that time, lvmh was surpassed by tsmc as the hottest company. let's bring in our guest this morning.

javier, good morning >> thank you, frank. >> let's start off talking about lvmh they report later today. according to you, the leather goods segment includes the ironic louis vuitton bag this is a bullish sign for the sector tell me in the first half the year where they had 20% growth and now this drop off. what does it mean? >> we know about luxury sector right now is in the middle of the perfect storm with the slowdown in the consumer in the u.s. and we had travel still restricted globally. the chinese consumer is under pressure on many fronts. we have seen a slowdown of

growth in the sector as you pointed out rightly with the bellwether stock of lvmh has shown that decline in the last six months i think what the market or investors are looking for is understanding better whether we are closer to the bottom of the earnings cycle revision. i think things are likely to get tougher into q1 and q2 you have higher comparatives i think the forecasts are reflecting that. it could bring later today and more a bit confidence comments in the conference call could help investors >> looking at shares right now and down .50%, javier.

you are speaking of soft luxury and hard luxury. richemont shares are up 14%. they own cartier give us a sense why hard luxury or jewelry doing so much better? >> i think it is the result of not having enjoyed such a high peak through the pandemic people i think historically what we have seen is hard luxury tends to be cyclical than soft luxury. i think this time is different in that soft luxury has enjoyed a bigger pick and may prove that this time and slowdown cycle over hard luxury may prove more resilient. i think the numbers from richemont earlier this month supported that case. >> i want to ask you something

else about richemont, in-store shopping was a boost they opened up new stores in new york and in vietnam. how important is in-store shopping >> very important. we have seen migration of sales through digital, but consumers, when they buy luxury goods, they want to go through the shopping experience that only the brick and mortar can deliver i think it is still a very key driver of sales. >> one more question burberry is down 25% they said there is soft sales china. you have a number of companies in there l'oreal and burberry is in there. how important is china to the luxury sector?

hard or soft luxury or alcohol >> very important in absolute terms of today and more important in terms of the region being a growth driver. the fact that consumers are still under pressure or not showing confidence to purchase the luxury goods it's an important space. >> javier, thank you it is all about hard luxury. thank you. coming up on "worldwide exchange," a hampton home price record as sales prices in the town surge to all-time highs that is just one of the top trending stories and it's coming up when "wex" returns. stay with us

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pressure reporting a 13% decline in profit it kept the trains running smoothly the ceo joe hinrichs will be on cnbc at 10:25 a.m. and knight-swift posted q4 revenue misses guidance coming in well below expectations the ceo david jackson remarked truckload rate and cost pr pressures continue to mount. weak demand is not helping the price information as freight demand is stable to low. ant chinese stocks as the state is looking to boost the sector the hemeasures allow banks to issue loans to commercial real es

estate shares of countrygarden and logan group are all higher on the announcement longfor up 8%. coming up on "worldwide exchange," a boeing supplier shock after the faa grounded planes for any 737 max production expansion is anil lebeau will be here and hestding by with the story. stay with us [♪♪] your skin is ever-changing, take care of it with gold bond's healing formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond. did you ever stress about us having three kids? no, it was always part of the plan. (inner voice:three kids?!) (inner voice: this was never part of the plan!) (inner voice: these kids order the lobster mac and cheese.) (inner voice: what if she wants to play golf?)

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"worldwide exchange. here's what on deck. the records keep coming as the nasdaq keeps hitting all-time highs. we have new developments in the boeing saga. the company getting approval to bring the max 9 back into service following the midflight blowout. phil lebeau is here with more. and tesla warning of a rough road ahead when it comes to growth we will breakdown the numbers driving the declines on this thursday, january 25th, 2024 you are watching "worldwide exchange" here on cnbc welcome back to "worldwide exc exchange." i'm frank holland. we kickoff the half hour with the s&p coming off another record close

look at the s&p fractionally higher right now we want to tpay attention to the nasdaq turning to the red a short time ago. we will continue to watch the action on the nasdaq futures ahead of the open, we continue to see signs of the rally broadening out beyond the magnificent seven. this morning, 66 s&p companies are trading at an all-time high or 52-week high including meta platforms and berkshire hathaway and microsoft which is trading below $3 trillion market cap we need to look at the bond market with the 20-year yield and 30-year yield. the benchmark 10-year yield at 4.16 moving up higher from yesterday. that is the set up now we want to turn to the latest developments on boeing.

that stock takes a hit in the pre-market the faa grounding the production plans in the 737 max jets. some progress to get the max 9b9 9 back up in the sky phil lebeau has more phil >> frank, the faa made a decision yesterday that is good news for the airlines operating the max 9 thas that were groundd here is the faa decision that came out yesterday here is what it means for boeing as well as the airlines. the rules have been set for ungrounding the max 9s with alaska and united. they can start doing the work to make sure the planes are ready to fly again the faa is telling boeing you cannot expand max production if you want to expand in the future, we have to give you final approval that is one decision along with reviewing boeing safety culture. we expect a report from the faa recording that safety culture in

the next couple weeks. it is the halt on expansion that is weighing on shares of boeing. remember, they make 38 737 maxs right now. supposed to go up to 42 this quarter and ultimately 50 per month in 2025 and 2026 does the company push those plans out further which has implications in terms of revenue and free cash flow in a statement yesterday, boeing said we will continue to cooperate and transparently with the faa and following their direction as we take action to strengthen safety at boeing. we will work closely with our airline customers as they complete the required inspection pr procedures to return 737 max 9 airplanes to service let's talk about the two alls that operate the max 9s. united airlines will start to

fly max 9s as early as sunday. these planes have been in place. they have teams ready to do inspections. they have 79 max 9 planes. there is alaska which has its max 9s set to resume flight friday tomorrow is we could see max 9s going back into service. we will speak with the ceo of alaska airlines later today. huge day for earnings. american and southwest and alaska we will hear from the men who run the airlines throughout the day. this is i is a big decision froe faa, frank max 9 production is the key to the revenue. if you cannot expand as planned, you have to make changes here over the near term

what is the implication over the next year? >> the faa halting expansion which is hitting the stock i want to look ahead to the faa report of the culture at boeing. you have spoken to the faa administrator. what do you expect penalties? what changes could come out of the report like this >> certainly changes in terms of how they inspect aircraft before they leave renton, washington. that is a given. we already see faa inspectors on the shop floor checking the work at key points and making sure boeing is doing what it is supposed to be doing you will see that. in terms of fines, it is too early to know if we will see something like that, frank this is the faa realizing that what happened during the max after the crashes in 2018 and 2019 and the faa was really criticized and rightly so in many ways for being too slow to

act with boeing. they are not doing that this time around. mike whitaker realizes their job is to be a regulator that's what they are doing they are making sure all of the rules and regulations are followed and that this doesn't happen again you can't have a piece of a plane fly off in mid flight. >> phil lebeau, latest on boeing phil, thanks we turn to d.c a news alert from washington the biden administration announcing billions of dollars in fresh infrastructure spending the president and other administration members are on the road today to promote the spending and progress in the broader economy. megan cassala joins us now >> reporter: frank, the biggest project will be $1 billion for a

bridge connecting minnesota. janet yellen will travel today with the goal of showing voters that president biden's policies are working. americans have been downbeat on the economy for months the biden administration needs america to realize that needs to change >> what does janet yellen need to talk about in chicago today >> she wants to make a two-pronged pitch to voters. voters say we understand that price growth has been high and that has hit families. they want to do more part of that is elect us for a second tefrm we have more work to do. they want to celebrate the wins they had

surprise that's the pitch she will make. >> if you look at the potus xaccount how does that different from how they have been doing >> we heard this before. i think what we have not seen from the administration before is really a concerted push to combat the economic pessimism in the economy. you know, this is almost an implicit acknowledgment there is negativity out there they have more work to do. they will draw parallels with the trump administration and what was done then and talk about this moving forward. >> we had a guest on a couple of days ago talking about the vibe economy. tomorrow, we have pce. how much does the late evident c latest consumer sentiment data bring into this?

>> gdp figures are likely to look good. we have seen sentiment jump up because of that. they are hoping the wind is at this backs on. this is something where they expect wages continuing to rise and growth will stay steady as they continue to roll out the stimulus funding they hope that is the case there is a lot of time left between now and november. >> megamegan, thank you. coming up, our next guest is bullish on the tesla ev maker despite the bumps in the road. and john stewart announcing his return to "the daily show. he will stay on the show through the election cycle he hosted for more than a decade before leaving in 2015. speaking of returns, the nfl

is welcoming back michigan head coach or former michigan head coach swapping the wolverines for the chargers jim harbaugh spent the last nine seasons at michigan. and competition is not heating up in football, but the hamptons sales rose for the first time in ten quarters and listings increasing in the last few months there are more buyers and sellers. more "wex" coming up in a minute ♪ ♪ every day, businesses everywhere are asking: is it possible? with comcast business... it is. is it possible to help keep our online platform safe from cyberthreats? absolutely. can we provide health care virtually anywhere? we can help with that. is it possible to use predictive monitoring to address operations issues?

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possibility of a dual class structure at tesla >> i don't want to control it, but if i have so little influence over the company at that stage, i can be boarded out by some random shareholder advisory firm. we had a lot of challenges from institutional share holder cer services i'm not looking for additional economics. i want to be an effective powerful technology. >> tesla prices moving lower that is dragging down xpeng and li auto. let's talk more about the quarter with george gianricas. >> good morning, frank >> you have new research out you lowered your price target on

tesla. you lowered the target at 234. it was 267 you see a 20% upside in the stock. why did you lower the price tar g target >> we ladhad pure auto growth margin, but the lack of guidance for 2024 unit sales. the company talked about a l sloslow down in growth we called it a time to bide time tech adoptions have slowdowns and for some over the last 100 years, you had a reduction in penetration during times of economic stress. we're now in the slowdown period of growth for tesla. it is not great, but we're not long-term bears.

there are too many good things >> george, you are a long-term bull you pointed out dpros auto margin which beat expectations, but still well down from a year ago. i want to ask you how did it beat expectations with tesla cutting prices explain that for tesla investors. >> it was a very marginal beat relative to pexpectations we have seen margins come down a bit. we bottomed, but it was a small bounce we think in terms of upside catalyst, we may see a more materially improvement in margins because we don't think the company will cut prices as much as they have over the last several quarters. >> two big questions price target is 234. a 20% upside for the company

before the estimate was for 20% growth in vehicle sales. tesla said it will be notably lower. give us a figure where you think that will be and what is going on with the next generation vehicle? how opt his paimistic about it it is supposed to compete with the honda accord >> we see vehicle sales this year of 2.1 million versus 1.8 million in 2023. with regard to the next generation platform, that could be a big deal. the car that will get tesla to the long-term goal of 20 million units. they just did 1.1.8. that is a lot of growth going forward. that will be the mass vehicle. >> george says this next generation vehicle will take tesla to 20 million vehicles george, great to see you thank you. >> thanks, frank.

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welcome back to "worldwide exchange." time for the "wex wrap-up. sky dance media is exploring a deal with paramount global hpe says it was hacked by the russian intelligence group and sands remains deeply enthusiastic as the operating in both regions continues to improve. don't miss the ceo interview with rob goldstein today and ibm announcing a $500 million venture fund for a.i. startups and the intent to buy two software companies for $2.3 billion. csx shares reporting a 13% drop in revenue the company says the railroad is

reliable and it expect growth this year. chinese property stocks is hoping to boost the property developers through the end of the year countrygarden up 6% and logan group up 6%. let's see how the markets are shaping up with the s&p continuing to test the all-time highs. nasdaq in the negative territory. dow is opening up almost 100 points higher. let's bring in patrick frizzetti with $1.5 billion in asset management patrick, thank you for being here. >> thank you, frank. >> a lot on tap. w we have the president out and about. what is the wex word of the day? >> i'm start the wex word with preparation. i think ever investor out there

needs to be prepared for today and the year they need to probably look to re-balance portfolios, but the economic data in front of us and p gdp coming in today. 4.9% last quarter. good growth. we are speexpecting 1.9% today that will lead to the expectation of interest rates may move this market is all about interest rates we'll have more economic data tomorrow with the pce indicator. if that comes in and the trend is lower, you know, i think the market will accept that. if it is not, be ready for some volatility with rates. >> like many, you are putting a lot of weight in the pce report. you are saying good news is actually bad news. i want to talk about earnings season a critical event for the markets. we have visa and union pacific

reporting. we saw csx with disappointing results. what do you expect from visa and up u.p. >> start with railroads. csx is on the eastern united states some is coal driven and things like that. overall, with union pacific, it is a good indicator. the cost of transportation is going up or down and are they getting pricing? what do shipments look like or cargo? those are the indicators we are looking for with the health of the economy and the future growth of the economy. when it comes to visa, visa is going to be after the bell today. i would say if you are looking at the health of the international consumer, see what visa has to say. >> we have to get moving shares of p&g. why p&g right now? >> consumer staples under

performed last year. if you are prepared and re-balanced portfolio, you have to own a strong consumer stable. they getting pricing and good volumes. >> patrick, great to have you here thank you very much. one quick look at futures wildfirbefore we let you go. nasdaq slipped in negative territory. the dow is opening up 95 points higher that's going to do it for us "squawk box" is coming up next

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good morning tesla shares plunging this morning after the company warned of the slowdown in growth this year details straight ahead. regulators clearing the way for the grounded 737 max planes but will not allow expansion. we will get you ready for the first look at gdp for the fourth quarter also quarterly reports from major airlines and our parent company comcast. it's thursday, january 25th, 2024 "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. here we go it's thursday. if you check out the u.s. equities, you will see green arrows again even after the gains across the board yesterday. dow futures indicated up close to 100 points. nasdaq up 5 and the s&p up 3.5 if you check out the treasury market right now, you will see the ten-year yield is 4.15 we have the two-year note at 4.37 >> the dow is off. >> you are right the dow transports with the worst day since th