it is 5:00 a.m. here at cnbc global headquarters and here is your "five@5." we begin with taking a turn. stocks under pressure to end the week with earnings in one key economic report takes center stage today. taking a new turn from wall street one is intel sinking in the pre-market we are keeping a close eye on tesla running out of road after closing down 12% and losing $80 billion in market value. what jim cramer says he is kicking the ev maker out of the

magnificent seven. the wave of 2024 job cuts continues as salesforce gets set to reduce work force. and later, apple changing the app store operating overseas it's friday, january 26th, 2023. you're watching "worldwide exchange" right here on cnbc good morning and welcome to "worldwide exchange. i'm frank holland. let's get you ready to start the day with the check on the u.s. stock futures. you can see it is in the red across the board the dow would open up more than 50 points lower at this moment the real story is the nasdaq down .50%. we will talk more about those slides largely due to intel later in the show. we saw the dow close at the all-time high and the s&p with the sixth record close in a row. you can see the s&p this week up

over 1%. the nasdaq up over 1% as well. a big part of that move is microsoft. closing above the $3 trillion mark for the first time ever take a look. it is down just a bit this morning. down .50%. for the week, microsoft is up 1% strength outside of tech with the dow transports on pace for the best week since mid-december the charts are choppy. this week is out performing. up 2.3%. we want to check the bond market this morning the 20-year bond hitting the highest level since december we are taking a look at the energy market this morning oil in particular. moving lower after the best day in three weeks and highest close since november right now, the oil market is under pressure wti is down 1% brent crude is down .75% that is the money set up let's get back to the m

markets. dow stocks post earnings intel and visa let's start with intel shares under pressure despite posting a top and bottom line beat for the fourth quarter. for investors, it is about the outlook which came in weaker than analysts were expecting for the first quarter of 2024, intel expect 13 cents eps and revenue between $12 billion and $13 billion. that was short what the sect st street was expecting pat gelsinger spoke out last night on "last call. >> it is leading the channels and oems to be conservative in the outlook. i say that q4 to q1 vary is the case that said, we look at it and our market share looks healthy we don't see unique inventory

issues outside of the areas we talked about we think the q1 guide is where the market is right now with the outlook. we see our products are well positioned and competitiveness is good and market share is solid. we believe we will improve on the metrics as we go through the year investors preparing to close out a week of continued fresh records with one key economic report december pce figures are due out before the opening bell. the favorite inflation gauge is expected to show a gain of 3%. a drop from the november reading. let's bring in robert teeter at silvercrest asset management >> thank you, frank. >> how do you see the pce report today? five days before the next fed decision and the odds of the cut in march something the market is counting on which has been fluctuating. it was over 70%.

>> pce is important. it is the preferred metric i agree with consensus year over year will come in at 3% the interesting thing is the annualized number is trailing on the six-month basis will dip below 2% that is something the fed pointed to the justification for cuts going forward whether that plays out or not remains to be seen we have inflation data between now and march. the strong gdp report yesterday may push that cut out in the future as the fed has the ability to go in any direction. >> what camp are you in? three cuts or six cuts >> we will come in at five or six cuts it depends if they start in march or later i was thinking march was the start date i'm pushing that out on the basis of the strong economic numbers we have seen it gives them the ability to hang in a bit lt longer.

>> we have a big week next week with the fed decision on wednesday and jobs report on friday you believe the markets stay choppy in the near term. how are you advising your clients to play the near term? >> in the near term, we are advising people to stay patient. this year will be a positive year we have a back drop of economic growth of 2% in the forecast our forecast shows that leads to 6% of earnings gains to get further fuel for the rally will require the fed to execute on that first cut. in the near term between now and then, we have to be patient. overall, positive on the year. >> in the near term, you are bullish on the discretionary sector it is down 3% for the year to date tesla is in there. sands and mcdonald's in there as well is there something that moves that sector higher >> it is the consumer spending with the back drop of places coe

spending because they are making more money those wages have the ability to improve with the use of technology you ccan deploy technology. >> we have to see how the consumer is doing. ro robert, thank you. >> thank you. back to a busy morning for earnings and we have your big money movers intel taking a bite out of the dow. visa under pressure on the weather weather-related slowdown with the dip in volume. breaking sten quarters of sales expansion. consumer spending is resilient, but recent data is showing an increase in overdue credit card payments t-mobile falling after the mixed earnings report. the carrier missing expectations and beating on revenue by $1

billion. t-mobile continued to adds customers and expect to gain 5 to 5.5 million more this year. western digital logging a 2% decline in revenue for the seventh straight quarter it demonstrates changes put in place the last few years as it looks to improve profitability. we have a news alert now the biden administration just announced the new decision around u.s. energy pippa stevens has more >> the white house will pause pending approvals for lng while the department of energy updates the projects no timeline was given, but officials said it will take some months there are seven lng plants in the u.s. and five under c const construction the pause does not impact already authorized facilities and only impacts projects in front of the doe .o.e

the u.s. became the world's largest supplier seven years after the exports. jennifer granholm will have more at 7:30 a.m. this morning. frank. >> natural gas is up 3.5%. pippa, thank you. a lot more to come here on "worldwide exchange," including the one word investors have to know today first, salesforce joining the two dozen companies cutting head count in 2024. plus a closer look at the sports betting industry. maybe it is not part of your portfolio. our next guest says he is trying to look past this report at brighter things to come we have a very busy hour when "worldwide exchange" returns stay with us

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welcome back to "worldwide exchange." let's get a check of the top corporate stories with pippa >> frank, jpmorgan chase is resu reshuffling the management treatment for the time that jamie dimon is not longer in charge the current co-head of the consumer bank will be co-head of the commercial and investment

bank along with a veteran leader of the trading operations. mary ann lake will transition to sole ceo there are a handful of exe executives with the shot of succeeding dimon as ceo. and salesforce is laying off 700 employees. the cuts will comprise 1% of the 70,000 personal work force and would be the latest to hit the tech sector. if confirmed, it follows the cuts from a year ago when it let go 8,000 employees or 10% of the global work force. it is not just salesforce. levi strauss will layoff at least 10% of the global corporate work force as part of the restructuring. this is coming after the company expects weaker sales in the year ahead. levi says the cuts will take

place in the first half of the year and could impact 15% of corporate employees. frank. >> pippa, thank you very much. chiefs against the ravens and 49ers take on the lions. victors head to the super bowl no matter the outcome, sports books are looking for a big win. draftkings and mgm and starting on monday, flutter lifts on the new york stock exchange. contessa brewer is here with more. >> those guys get all of the attention and all this about the playoffs and super bowl, but i think the investors should also take a look at the tech companies that power these sports books genius sports is the data provider it makes licenses fees off the sports books it makes three times more on

in-game bets it packages the football fees in the unique way with augmented reality. viewers can see the odds of the specific play. look at this and how much fun that is to watch especially if you want to put money on the game they can sell this to media companies for better audience engagement and sell it back to the teams which want more data to improve their own performance. >> ultimately, we are trying to keep our customers, customers on the platform longer. one way we are able to do that is by delivering them a product that is completely engaging and has integration and integrated stats and live odds and p components that fans want to see. >> it is a duopoly sport radar has deals with all of the other pro sports leagues and 90% of the sports books,

michael jordan is a big investor, the stock is down on news that the cfo and strategy officer are departing. this company has an interesting strategy it has gone around the world and snapped up the content rights for sports in colombia or the caribbean. what happens is as international companies want to expand, they need the content to fuel the sports books so they have to then buy it from sport radar they are really interesting tech companies. >> two tech companies powering the sports bar >> genius and sports radar >> another issue in the gaming space. labor in gaming in vegas ahead of the super bowl. >> we have seen the culinary union made deals with mgm and before f1. they made agreements to give

bigger raises to the culinary union on the strip there were 20 properties which still had outstanding or lapsed contracts and have been able to go through property by property to get the deals done. 20 remain outstanding. they will be having an informational picket, not a strike today this time next week, if the deals are not done, workers will walk off the job they are receady to do that befr the super bowl they have taken the steps of alerting certain customers that your reservations may be disrupted if you are here for the systuper bowl. >> this is a huge transition in gambling and sports of course, vegas and sports were separated. >> contessa, thank you.

coming up on "worldwide exchange," why jim cramer is throwing tesla out of the magnificent seven after yesterday's $80 billion stock selloff. stay with us

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afraid of the guy. most of the people have never seen the three cinematic iterations i don't have that trepidation. tesla removed itself from the group by itself. it a teachable moment to be what it means to be the magnificent seven which is no more >> that was jim cramer on "mad money" last night. not jimmy chill for tesla after what was a rough day for the stock. closed down more than 12% and lost $80 billion in market v value. cramer says to be part of the magnificent seven, the company needs a couple of rule bricks and not subject to economic cycles and strong leadership at the top and not be at the mercy of foreign competition we have hannah peters here good morning >> good morning. lovely to be on. thank you.

>> jim cramer was vocal about his thoughts on tesla. should tesla after that report be booted out of the magnificent seven? >> it is really interesting. i do really agree. if you think about what it takes to be part of the magnificent seven, seven biggest companies in the world, the most important aspect is the growth and durability of the cash flow of the business i'm not sure tesla can compare to the other companies that are dominating the world indices and able to show that to the rebustness like microsoft. >> are all of these looking at economic slowdowns meta and cloud growth with the other companies. what company is not subject to economic cycles? >> that is true. i think also what is important is if you got the element of

cyclicality, but tesla could argue it is one of the more expensive companies when looking at the future growth pros cyclist pects of the business and the competition the company could face they are a car manufacturing when you are looking at companies like microsoft, for example, it has a leading position in what it does i think that element in quality and the combined with the growth prospect is not as robust. >> hannah, we may have a fifth one for you that you may be a leader in your space tesla is not a leader in car manufacturing. there are other automakers toyota and ford which make a lot more cars. a lot of excitement about the next generation vehicle. our guest yesterday believes the

next vehicle will lead to 20 million in sales maybe not as magnificent now, but potential for tesla which sees a slowdown, but prospects in the future. will that keep you in the magnificent seven? >> with testifla, you hit the nl on the head. you have to look way into the future to justify the valuation. you have to say $10 billion to $11 billion of free cash flow. the valuation of the company is very expensive and you have to look way out into the future and you don't know what competitive threats to the business will be during that time i think for us, we are quality based investors and a valuation overlay. we are looking for the sustainability and durability of the business and free cash flow to grow and valuation you want to pay i just think given the competitive edge that tesla may

or may not have versus other companies in the business and valuation of the company as it stands today just doesn't quite stack up some of the other larger companies in the world market >> you know, speaking of valuation, tesla 56 times forward pe a quick question, does your firm own tesla this. >> we don't. >> hannah, great to have you on. thank you for your time. one last thing tesla in the magnificent seven or out of the magnificent seven in your opinion? >> out of the magnificent seven. >> have a great day. thank you. coming up, historic about face by apple and how the app stores competes oversea. we will have more on that story. stay with us were you worried the wedding would be too much?

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it is 5:30 a.m. in the new york city area there is more ahead on "worldwide exchange. shares of intel raising gu questions. w intel's drop and we will close out the week of fresh reports. artificial intelligence facing a legal challenge from the family of george carlin. it is friday, january 26th,

2024 you are watching "worldwide exchange" here on cnbc welcome back to "worldwide exchange." i'm frank holland. we pick up the half hour check with the u.s. stock futures. take a look. the dow would open up 55 points lower. nasdaq falling deeply in the red. stocks coming off another record-breaking session. the s&p hit the secixth record close in a row the 20-year bond at 4.10%. we are also looking at energy. the highest close since november take a look. wti is down 1% brent crude down is .75% that's the set up for the u.s. let's check on the early trade

in europe. you can see it is in the green across the board the cac 40 is doing the best right now. up 2%. stocks in france getting a boost from the luxury space on the back of lvmh results higher than expected sales for 202 an 2023 and raising the dividend. the entire luxury sector moving higher lvmh up 10%. richemont up 4.5%. that's the set up. time now for the big money mover. intel shares dropping on weak guidance pat gelsinger talking about the promable chip unit he is being conservative with guidance as spending shifts. >> we had a good year. an important year of transformation for the company

we bring that momentum into q1 on the low end of seasonality has a wide range the products are mehealthy. there is not any particular news we just see a little bit of more conservative in the market >> let's talk about this with matt bryson. >> thanks, frank >> you had a price target of 45 for intel. you bumped that down to $40. that implies a 9% down side. what is the biggest thing investors should be concerned about here >> you know, i don't think the report changed much. certainly numbers go down, but when you look at this year in terms of in demand, pcs pick up

a little bit servers pick up a little bit intel's two largest markets. the question is can the transition in manufacturing and progress they are looking for materialize? i still don't think we have a clearance there. >> it sounds like you are concerned about the core business chips for pcs and servers. sales accelerated there. the company introduced an a.i.-focused chip. the core ultra you have doubts about the core ultra adoption 33% revenue growth year over year >> frank, it is not about the core business, but as you move forward, intel's struggles have not been able to compete from manufacturing basis with tsm that leads to struggles

designing new products and getting costs where they want them to be they just started to roll out that next generation of manufacturing. you have intel 4 out there now they are working on intel 3 and intel 18a. it is them continuing with the transitions to hold their market share. that's what i want to see. i think that's what investing in intel is about we're just at the beginning of that >> again, intel shares down double digits. down 11% you mentioned the foundry business smart part of the revenue business about the foundry business and so many of the hyper scalers with alphabet and microsoft are starting to make their own chips. what does it mean for intel long term >> if they can transition manufacturing to more advanced processes, they can make the chips for microsoft and make the chips for amazon i think it all comes down to

intel historically was the leader in manufacturing in the '70s if they get there again, it doesn't matter if amazon is buying intel designed chip or buying an amazon designed chip >> a lot to watch there. matt bryson, price target for intel is $40 it was $45 doubts about the core business and beyond great to see you thank you. >> thank you let's check on the top corporate stories with pippa stevens. >> thank you, frank. wells fargo is giving the ceo a pay raise for 2023 the bank paying charles scharff $29 million. up 18% from a year ago signing off on the compensation, the bank's board praised the performance and risk and controls. gm revealing the cruise unit

is being investigated by the doj and s.e.c. they looking at the incident in october where a pedestrian in san francisco was critically hurt cruise releasing findings from the review by the law firm that gm hired failure in the leadership in the cruise dealings with regulators. and artificial intelligence facing a legal challenge from the estate of george carlin. suing the credators of the special released on youtube. it relused the technology to ste his humor and voice. the lawsuit calls to remove the video immediately. this is the first legal action taken by the estate of a cele celebrity. >> i think his family is saying the seven dirty words of the

effort to recreate him in a.i. pippa, thank you. turning back to the markets over the recent set of strong economic data impacts when the fed starts cutting rates out for the year the pce data is impacted and it will expect to show prices rising last month, but over the long run, prices are cooling as people keep spending let's bring in stephen whiting good morning >> good morning, frank >> good morning. put it in perspective. pce coming out five days before the next fed meeting does it have a meaningful impact on the markets or have a meaning th meaningful impact on the markets? >> it is possible that the revisions within the quarter could have changed the outcome from what is expected.

what we know for the full quarter is the annualized rate, the core pce deflator was 2% if you take out shelter, it was 1.1% annualized. there was more inflation earlier in the year. this picture again of stabilizing prices without an economic collapse and without the labor market coming apart. it is really the story that drove markets in the last year and it tells us the federal reserve can swerve they have done this in 10 of the last 11 cycles since the volcker fed. it didn't stop every recession from happening this time around, the harkt is a little bit too optimistic on the march easing step. we're on our way the amount they are pricing in over the next year is not

exce excessive. >> you actually mentioned something i want to talk to you about. is there one component of pce for the fed? is there one thing the fed is looking at and if the overall core number meets expectations >> it is services ex shelter they are jointly determined in the economy. this is the thing where we are managing to get prices down in a way we have in the past. we are getting import prices down we are getting goods prices down china, in some respects, is exporting deflation. that is how we had a sub 2% and pci over the financial crisis. some financial makers said we have to get every place down 2%.

we can just try to make everything controlled at 2%. they will cut and it is not really inflation it is the interaction with the high policy rate at 5.5% with qt and a slowing labor market >> i want to ask about march a lot of people are hoping for the cut in march you said gdp beat estimates by a wide margin yesterday. we had the fed decision and after that jobs. are we still in the narrative where good news is bad news if you are hoping for the march cut or are we past that? >> i'm hoping we are past that i think we are going to see irrespective of the news today, the fourth quarter which is the dumping ground for charges and bad news and things companies want to put them past, that earnings are stronger for companies. that is happening while inflation is subsiding and employment growth is slowing that is unusual. it is unusual as we have seen in

the last couple years for the labor market surge >> really quick. march cuts six cuts >> i think we will have a soft landing. no collapse in everything all at once i think march is too soon. it might be what has happened in the past in the end, the market is not pricing in too much easing from the fed and they are not going to zero, but will cut. >> steven, thank you coming up here on "worldwide exchange," utilities coming off a rough 2023 we dig into where there may be some opportunities within that beaten up sector. more of the big money movers kle posting guidance for the third quarter. the chipmaker missing on profit due to weaker demand levels. capital one shares on mixed earnings net income declining 60%

provisions for credit losses increasingly significant growing to nearly $3 billion shares down 1.5% l3 harris with a 14% increase in revenue. the company stating the third quarter decrease in eps over the pending business sale. we're back in a moment shares of l3 down 3% stay with us knock, knock. number one broker here for the number one hit maker. -thanks for swinging by, carl. -no problem. so what are all those for? uh, this lets me adjust the base, add more guitar, maybe some drums. -wow. so many choices. -yeah. like schwab. i can get full service wealth management, advice, invest on my own, and trade on thinkorswim. you know carl is the only front man you need. (phone rings) oh, i gotta take this, carl. it's schwab. schwab. (feedback rings)

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welcome back to "worldwide exchange." time for the morning call sheet. oppenheimer says coinbase faces near and long-term catalysts shares up 4% >> evercore is confident that i pinterest can move the needle for the company. shares up 2% >> deutsche bank upgrading snap to a buy shares of snap up 2.5% turning now to sectornomics. the sector has gone through a rough patch. the question is there hope ahead? pippa has this month's

sectornomics s>> utilities had a bit of debt with the industry and when rates go up their costs rise the sector is viewed as a bond proxy. when rates go up, those dividends start to look less attractive relative to treasuries with rate cut expectations, the group could get more attention with wolf research stating utilities out perform before the fed starts to ease with this in mind, we screen the sector for the largest dividend players and stocks which out performed in the last three months dominion has a 6.1 yield that stock is down 30% in the last year.

evergy and edison round out at 5.2% and 4.8%. frank, check out these names. >> we had the ceo of psg earlier on this week he said the company is heavily levered to the industry. people are not as enthusiastic about evs. how does that impact utilities >> think about the data centers to power a.i that requires a lot of electricity and guess who is providing the electricity? utilities. for the first time in decades, we see growth for electricity and that means we need to build more power generation assets all those evs have seen growth slow, but they are coming on line as well as heat pumps and electricity overall which means more spending and utilities can than a rate of return. >> pippa with this month's

sectornomics thank you. time for the "global bri briefing." apple overhauling due to the digital market act in europe this could threaten the app store fees which gives you the ability to bypass the 30% commission fee china is looking to bring in more investment. overseas investments fell by $150 billion last year that marks the lowest level since 2020 on the fears of slowing economy. also in china, officials are asking the iranian counterparts to help rein in on attacks in the red sea. the business with tehran is at risk and now asking the houthis to show restraint.

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welcome back to "worldwide exchange at that time for the

"wex wrap-up." the humana warning of the increased to medical cost trends >> microsoft under pressure after the $3 trillion market value close yesterday. microsoft and apple finishing above that threshold shares down .50%. >> visa showing an 8% increase in payments and 9% rise in transactions >> and tesla lost $80 billion in market cap the ev maker warning oflower production this year cramer saying kick it out of the magnificent seven. jpmorgan chase is preparing for succession moves ahead of jamie dimon. salesforce set to layoff 750

em em emp employees. levis also announcing 10% of the work force as its restructuring plan p. here is what to watch. core pce is out at 8:30 a.m. and we get december pending home sales at 10:00 a.m we get earnings from american express and colgate. we get the first batch of alaska air 737 max 9 planes more planes will be added every day pending completed inspections. the s&p and nasdaq are coming off fresh record highs yesterday. the futures are firmly in the red right now. the dow would open up 50 points lower. joining me now is kari firestone from aureus. kari, good morning >> nice to see you, frank. >> we mentioned a lot going on

we have more earnings today. record closes and record pce what is your wex record of the day? >> the word of the day is anticipation that's the word that implies that investors having given the weak earnings a pass because they are waiting for the reports of earnings from microsoft and amazon and meta and apple. all of the big names are coming up in the enginext week or so. that is what the market is focused on believing they will be very good they are expected to be very good fourth quarter earnings for magnificent seven, even tesla, is up 86% for the estimate. the rest of the s&p is minus 7.5% this is what people are waiting to see and they think they will see expectations which are positive >> we saw a bit of broadening.

the magnificent seven is crucial to the market its. yesterday, we saw a stronger than expected gdp report and the s&p hit a new record high. today is pce if it comes in line, what does it mean for the markets in your mind >> i think the market expect i to be in line. the only thing that could derail the market and interest is a fairly fine number 4% or 3.7% we don't think that will happen. we still see rents coming down the trends are in place. we know that energy is creeping up right now that had not been the case and that is not reflected in the numbers. we think it will be relatively benign in conjunction with those gdp numbers, that's an environment that is soft landing or slightly better than soft landing no need for the fed tostart thinking they need to raise rates. >> as we mentioned the picks in

the magnificent seven and jim cramer said tesla should be kicked out of the magnificent seven. agree? >> by default, it is happening as the stock goes down, it will be out of the league in terms of the plus trillion dollar club. if it keeps falling and if sales are weak and they have cost pressure or a strike, that may happen it may be the mag six. >> let's get to your pick with the magnificent seven. amazon why are you bullish with amazon going forward? are you worried about the valuation? >> no, not really. valuation for amazon is at the le lowest level for pe basis for decades. this is the stock that has always traded on its sales nothing to do with earnings. the earnings this quarter are going to be up over 2,000%

that number doesn't matter, but 79% versus pennies last year and we see that as a result of ecommerce picking up they continue to dominate. that business has been pretty good if you look at the ecommerce spending the last several months the cloud business that was fairly weak last year considering the growth had come down is picking up costs continue to streamline >> your pick is amazon sorry to cut you off we have to go. enjoy the weekend. thank you for being here we have "swoquawk box" coming up next enjoy your weekend old school hard work meets bold new thinking. (laughter) at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real.

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good morning the biden administration announcing a pause on new approvals for lng export facilities details straight ahead. intel shares are tumbling more than 10% after weaker than expected guidance. we have comments from ceo pat g gelsinger. and the fed inflation gauge coming we will tell you what to expect. it is friday, january 26th, 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. check it out you are seeing steep declines on friday morning dow futures indicated off 60 s&p futures down 7.5 the nasdaq indicated down of 97 points a lot of this is because of pressure coming from intel we will talk about that story in a moment for the week to date, the dow is up .50%. the s&p and nasdaq are up 1% the pressure today will be something to watch treasury yields at this point looks like the ten-year yield is sitting at 4.1%. the two-year note at 4.3%. we will talk more about this in