it is 5:00 a.m. here at cnbc global headquarters and here is your "five @ 5." we start with tech dragging wall street lower ahead othe open with the dow coming off its seventh record close of thee. the big driver today, it's alphabet, shares sinking on q4 advertising sales miss as it misses around the wave. of course, there's microsoft. under pressure despite the record sales in 2023. plus it is fed decision day with investors expected to hang on to jay powell's every single word during his press conference

at 2:30c p.m. earmark time today. and a judge throws out elon musk's pay status and putting tesla and his status very much in limbo. it's wednesday, january 31st, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ good morning and welcome to "worldwide exchange." i'm frank hole lajd. let's get you ready to start your day as always. the dow closed at another all-time high. take a look. we're seeing the dow up in the premarket looking luke it would open up 30 points higher. however, the s&p and nasdaq both lower. we're talking the fed meeting at 2:00 p.m. eastern. the lowest level we've seen since about the first week of january.

okay, that's your morning setup. now we want to turn our attention back to tech earnings. we're watching alphabet and microsoft, both moving lower ahead of the "opening bell." our arjun kharpal joining me from london with both. good morning. >> good morning, frank. to set the context here, microsoft and alphabet set a high. there was little room for disappointment for both companies. alphabet ended out the worst of the two. microsoft posted its most positive growth since 2022. cloud, meanwhile, was a bright spot with 2.6% while google attempts to catch up with microsoft and amazon. speak ing of microsoft, that i beat on the top line. more or less in line with the market expectations while azure

revenue, which, of course, was closely watched was up around 30% year over year. the company says ai products boosted azure revenue by 6.6%. microsoft shares were around 2% -- down around 2% premarket. not as much as alphabet. investors talk a bit of a breather. perhaps it also signals a little bit about the way investors are thinking about the ai narrative around both companies. microsoft clearly intact and investors looking a bit more at alphabet for answers about what ai means for business going forward, frank. >> you're mentioning ai. it's big for alphabet and microsoft. you believe it convinced investors. what do you think they need to do to convince investors and what are the reports for amazon that reports later this week? many see microsoft as an early leader in the ai race due in large part to the investment in

openai and the swift move to open products. the partnership is going well. alphabet has released its large model gemini and will roll its products out this year to customers. i think investors are still waiting to see what this means for alphabet's business. for amazon, they did a big deal last year. so investors will want to hear a little more again what this means for the business. can they replicate the success microsoft has seen in its division. the big focus will be on the cloud division with the market looking for your around 13.5% revenue growth for aws before they're expecting an acceleration for the rest of thee. the guidance is going to be key for the company and investors are going to want to see the growth, not only continue but accelerate. >> arjun kharpal live in london.

thank you. time go get to this morning's other top story and a shocking court decision over elon musk anded his pay package. our silvana henao is here with that story. good morning. >> we're going to start with shares of tesla. they're under pressure after a delaware judge sided with an investor back in 2018 claiming elon musk's $55 billion pay package was excessive, but the 200-page legal opinion did not end there. the judge said elon musk's compensation papers say it did not show up in. the ruling threatens to take down muffing from his status as the richest person in the world, frank. >> we're going to continue to watch that story later in the show. thank you. time now for a check of more of this morning's big money

movers. we're starting off with starbucks. shares are higher. they rebound in china. they helped sales grow by double digits. the company's ceo pointing to head wipds including a boycott in u.s. and discounting in china. starbucks shares up by just about 2.5%. and amd under pressure. the chipmaker projecting $3.5 billion in revenue compared to the $6 billion expected by analysts. ceo lisa su calling for data center growth in q1 but also warning of revenue declines and the embedded shares. for more on the quarter, don't miss the first on cnbc interview with lisa su today at 9:30 a.m. eastern. samsung reporting a 74% drop. it remains optimistic about a memory chip this year. they see strengths in premium

display products. shares of samsung just down over 2%. turning back to the premarket action and results from alphabet, microsoft, and google. the mag seven accounts for 20% of the index. for more let's brung in craig johnson. good to see you. >> thanks for having me back on the show. i would agree with the unhealthy perspective from the large cap market at this time. >> you say you agree. when the mega cap names were pushing higher, everybody road the wave. now after a little bit of a pullback, after a big run-up year to date, why are you concerned now? >> what's interesting and what's standing out to us from a

technical perspective is you've got the dow, the s&p, the nasdaq, the russell 3000. they're all making all-time highs in the market, but if you come back and look at some very, very simple measures, how many stocks and how many industry groups have we tracked here at piper sandler that are making 26-week new highs. it's been deteriorating for the last six weeks. you would look at this and say, frank, the market is not on solid footing, advancing all-time highs and the deteriorating making 26-week highs. it's sort of a nonconfirmation at this time for the broader market. >> craig, i do have to say you're staying pretty consistent because you gave us your s&p price target. it's 50-50. that implies a 3% rise to levels we're at today. you don't think the magnificent seven is going to push us higher. what keeps us going sideways for most of the year, i would guess? only a 3% rise this year?

>> i think what happens is we had a pushup in the first quarter, pretty much in line with what you see in presidential election years and now driving a 20% advance in the preceding year, and it's sort of an environmental where you enter this high-level trading range or hltr as we like to call it, the market is going to trend sideway, digest some of the moves, and once you get through the election, that's when you'll see the markets move higher. but much of the stocks are going to have to look for a breather. there are some pretty attractive things happening. we're upgrading the financial sector and downgrading industrials, which has been very solid leadership through most of last year. >> craig, let me jump in for a second. a lot of people are saying they're cheap right now. is this a play on the idea we're going to see rate cuts, maybe as many as five this year?

>> i don't know how many rate cuts we're going to ultimately get. i'll leave that to our washington analysts ultimately to come up with. but clearly the direction, frank, is we're going to see the fed cuts sometime this year. and when that does happen, i suspect we'll see margins improving for the financials, which will be a nice tailwind for the financials itself. whether it's wells fargo, synchrony, or others, they'll increase their market. >> 50-50. a pretty conservative call. a lot more to come on "worldwide exchange" including one word that investors have to know today, but first much more on elon musk and the pay package problems as well as his fate as the richest person in the world. i'm not sure it's fate. i'm pretty sure he's a billionaire. boeing jumps from one crisis to another.

and getting ready for the fed and the words our next guest is looking for in the esprs conference. we have a very busy day ahead. stay with us.

welcome back to "worldwide exchange." take a look at the u.s. futures. you see the dow moving higher in the premarket. take a look at nasdaq. down more than 1% after results of microsoft and alphabet.

right now taking a look at the nasdaq laggards. amd falling the hardest, down 7%, alphabet down almost 6%. our joumanna bercetche is in the newsroom with much more on the early action. good morning. >> good morning. it's shaping up to be a iks manied session for european indo e cease behind me. some are trading in the red. the likes of the ftse 100 is down five basis points. it was the worst performing stock within europe for the first month of the year. xetra dax down. retail sales coming through this morning for the month of january. we did have the preliminary numbers come in slightly higher than expectations at 3.4% versus 3.3%. keep an eye on the macro. it's been a huge day in terms of earnings as well. on the farming sector, novartis

stock is down almost 4% after a fourth quarter stock miss. san tan ders profits beat expectations. and novo nordisk up a little bit, up a tenth of a percent. it's europe's most valuable company, a new record-high for the stock after they see sales grow 26% this year. it's a mixed bag when it comes to earnings, but overall the sentiment is somewhat mixed. >> joumanna bercetche in our london newsroom. it will be the first time boeing opens its books since the midair alaska airlines door plug blowout this month. joining me now with more is ken herbert, aerospace and equity research analyst at rbc.

you have a price target of 285, stocks trading at 200. it's your least favorite, but you seem pretty optimistic. >> yes. we're still pretty optimistic in the long term. travel continues to hold up pretty well we think the cash outlook the company previously provided probably had a little bit of pressure. we do feel that $200 share of the set junk over the longer term remains favorable. although when we published on our preview, we said the outlook is certainly more challenged and we thought there was some pressure on the stock headwinding into the results here later today obviously, but we still think the long-term fundamentals remain in tacintac for the exact. >> the investigation of the faa

door plug blowout, how does that impact things? >> that's the million dollar question. we're hoping boeing is able to give fairly definitive guidance or specific guidance this year. they had moved on the max bethe end of december, 2023. we still think the company guides to max deliveries this year of 500 to 550, which would be in line with consensus estimates for the max aircraft. further increases in the production level, that's the big question today as we think about when the faa looks to really pursue this investigation and how much pressure they expect to have on boeing as you think about for the rate increases. >> our phil lebeau has done a lot of great reporting on this. there are certainly a lot of unanswered questions when it comes to the max 7 and max-10. at the same time it ee like a good news, bad news situation. deliveries to china are still

going on, but united starting to look at airbus. wrap it up in a bow for us going forward. if you're an investor, how do you deal with the risk around the new max certifications. china is good, but the airbus is bad. >> it's not a great headwindline. the max has a very large backlog. commercial travel continues to be very robust. there are other airlines that would gladly step in. there are some like united that might move out from some of their stocks. we feel like the company clearly has execution issues it needs to work through. that's why we think if we get through some of the near-term issues the stock remains attractive in the longer term. the max 7 likely pushing out very limited in terms of its backlog and what it represents in the business today. we still like the story longer terming and we'll see what the company says later today.

>> again, the faa investigation going on right now, if there are delays in certifying the 7 which doesn't have that big of a backlog and delays in the max-10, does that change your outlook, your price target, or your rating? >> specific delays on those, no. it depends on the incremental costs to ultimately get them certified. but those particular models, the 7 and the 10 are already essentially years late, and i don't think in terms of the backlog that is overly significant. however, i would make one final point. there's a replace management to the 77 7 coming, 777-x coming in 2025. that could certainly be a greater risk. >> something else to watch for this company. a lot going on for boeing. ken herbert, thanks for being here. don't miss the cnbc exclusive interview with dave calhoun at 9:00 a.m. eastern

time later today. moving on, apple's vision pro-hands on headwindset. we'll have more w.e.x. coming up. oh no, a rash. maybe it'll go away. awww, how am i going to find a doctor i'll actually like? is that a qr code? dr. stafford makes you feel at ease. thanks rash! you've got more options than you know. book now.

welcome back to w.e.x. apple's headset officially goes to sale on friday and the early reviews are in. a lot of praise for the disease as a state-of-the-art device, but -- and it's a big but,

unless you're a huge techie, you might not want to buy one. the vision pro is a mindblowing look at an unfinished future. you've got one there. >> good morning. >> you're saying it's a mind-blowing look at an unfinished future. i've got to ask you. why is it only for techies? a lot of us have phones, tablets, games, we use them because they're fun. why is this only for techies? >> because i think the whole experience and design is complex and also the price, you know. i think if this were a $500 device like a quest 3 or even a thousand dollars that some people could foreseeably afford, i think that would be a different trade off. these types of vr sets are experimental, but they can add some value as kind of a fun interesting idea.

at $3,500, this is a significant investment. it's more than any mac i've ever bought. the type of investment like a disney trip, that's a lot of money and you have to be an early adopter to appreciate it. i think apple has some work to do with the inner face to make it real useful as a computer. >> we're showing video of using it. i'm a little disappointed, scott. you say if you put it on, we can see an image of your eyes, so i thought you were going to wear it during the interview. >> i'm sorry. >> you can't wear it with the glasses, i understand. if you want to put it on, that's fine. you say it's only for first adopters, but long term obviously adoption is the goal when it comes tothe headset. what iteration do you think it becomes more mainstream and what

direction is it going when it comes to price? >> i think the direction it's going to have to go is toward glasses. this big battery, this cable, it has to go at some point. having to carry that around, that's really, really tough. and then this design, which is still like a vr headset -- it is a vr headset, this is a lot. i'm used to vr. i cover it all the tomb. but when you have to put this on your head and get it all set up and tighten the strap and then you're in and right now i can't see you because it's not on yet, you know, you have to wait for the pass-through, this is still a thing to get into. it's got amazing displays. i think it's got the ability to immerse your world once you're in it. but it's like apple made this kit to show you where it's going, and when it does it, it's amazing, but i think you really have to see what it's like after a year and see what it's like when it's on its feet. you may see my eyes in a moment. >> i'm looking at the screen

waiting for that to happen. before we let you go, i want to get your final takeaway. the lack of apps. the future use of this headset, how reliant do you think it is on apps? >> i'm unlocking this as i talk to you. i'm lookinged a a grid of apps right now. you can't see my eyes because it reflects right now -- it's very hard to see in everyday life, but i think apps are huge for this. you know, right now you can play youtube on a browser. you can play netflix on the browser. but to have google's ecosystem of work apps, to be able to do work, a lot of the work workflow is dependent on apps oer to have all of your security software on there, i think, is really, really important. right now it's not fully there yet. even if there are full apps, a lot of them have not ma it the full hook in.

>> we're trying to wait to see if it was going to happen. great review. you say it's mind lowing. a mind-blowing look at an unfinished future. thanks so much for being here. great to see you. >> of course. great to see you too. i can see you too. coming up on "worldwide exchange," the bidding war for paramount. it heats up and shares are skyrocketing. right now shares of paramount global are up about 20%. stay with us. old school hard work meets bold new thinking. ( ♪♪ ) partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas. morgan stanley.

it is right around 5:30 a.m.

in the new york city area. there's a lot more ahead on "worldwide exchange." here's what's still on deck. it's decision day as investors look for a fresh decision from jay powell and clues when the central bank may start to cut rates. tech is looking at payoff to ai investments. it's not just earnings breaking down a mag 7 member as a judge pulls the plug on elon musk and his $55 billion pay package. it's wednesday, january 31st, 2024, and you're watching "worldwide exchange" right here on cnbc. ♪ and welcome back to "worldwide exchange." i'm frank holland. let's get you ready to start the day. as always we pick up a check on the stock futures with the dow

coming off another all-time high. you can see the dow right now looking like it would open up 40 points higher in the premarket. what we're watching is the nasdaq down 1%, both of those pulling the nasdaq futures down lower. we take a check on the bond market ahead of the fed chair's decision. back at the level we've seen it at in the first week of january. right now, the yields have been declining as we get closer and closer to the fed decision. that's your morning setsup, but we're going to stick with the fed. it's been nearly two years since it kicks off its rate hike campaign in the surge of inflation. customers have seen a big spike in borrowing costs. here's an example. the rate on a 30-year fixed mortgage, it was 4.2%. the average rate of a credit card is 21%.

the rate on a new car is 7.1% from 5.2%. joining mu know is michelle gi girard. good to see you. >> frank, nice to see you. >> no cuts expected today. nobody's expecting a cut today, but everybody's listening for jay powell's news conference and waiting to read the fomc news story. what is e'er ebb expecting? >> when will the fed start to lower interest rates. we think they'll continue to march toward that eventality by perhaps softening some of the language today, removing a bias toward tightening. in december the fed chair continues to signal a

willingness to tighten and you look at if inflation is becoming a problem again. now what you'll hear is much more balance. the fed is equally as likely -- or thinks it would be as likely to raise rates as lower rates and actually continuing to take the steps toward what we think will be, you know, rate cuts in the spring. >> i'm not sure i heard you correctly. you say right now you think the fed is as likely the raz them as cut them or that's the message jay powell wants to send? >> exactly. i'm sorry. i think we'll hear more balance the from the fed, not reminding the markets about the fact that they could tighten further and suggesting a much more neutral posture, and so that is a step toward shifting fully into we're going to be cutting rates definitively is our next step. >> the fed has always said it's data-dependent. as we look at the data, inflation is going down, but it's at the targeted 2%.

we saw gdp surprisingly to the uppy sigh. does this data-dependent fed, does it see the soft landing, everything, working out, or do you think a more restrictive policy is more likely as was said? >> i think the fed has got to be really pleased, to be honest with you, with the way things are unfolding. we are seeing inflation coming down as you said. the core pce, the inflation measure the fed watches closely, finished 2023 just below 3% at 2.9. meanwhile the economy has cooled, but it looks like maybe we're going to avoid a recession. we unfortunately think that won't be the case, but for right now, there's more resilience. it looks like the best of all worlds. the question is does the fed need to keep rates as high as they are currently given the fact they've got things very

much where they want them? you know, it takes a long time for policy to take efeffect. >> right. sitting at 5.5% is still like keeping their foot on the brake. and i think what the fed is now thinking is just taking their foot off the brake, beginning to cut rates not just to stimulate things but to get the level of rates back to more of a neutral posture. again, it's not that the economy needs to get the gas, but it doesn't need to have the fed's foot so firmly on the brake. >> a lot to think about there. jay powell's news conference at 2:00 p.m. eastern time. great to see you. time to check some of this morning's top corporate stories. silvana henao is back with those. silvana. >> hey, frank, good morning to you. a new suitor for paramount global has emerged. allen's bid comes after sources revealed to cnbc last week that

david ellison's sky dans media and its financial backers are exploring a deal to take paramount global private. shares of walmart popping after announcing a three-for-one stock split, the move coming with the retail giant's shares sitting just below an all-time high. walmart says the split will let more employees buy into the company's stock purchase plan. and social media ceos are set to go before the senate for a hearing committee on what they're doing and not doing to keep their platforms safe. mark zuckerberg as well as the heads of others, that hearing begins at 10:00 a.m. eastern, frank. >> silvana, thank you very much. turning back to one of your morning's big money movers or two of them, i show uld say, two of the world's big money movers, microsoft's results beating

forecasts as ai attracted customers to its assure cloud service. but as you see shares are lower as it absorbed news about the rise in cost to develop these tools. alphabet missed estimates, and the company says spending money on data centers will jump this year. brian yacaman is the founder and president. brian, good morning. great to see you. >> good morning, frank. good to be here. >> why don't we start out with microsoft. i'm surprised to see microsoft moving lower after the results that were pretty solid overall. a lot of o people believe they came with a so ud narrative when it came to artificial intelligence as well. >> i'm so sorry, frank. could you repeat that? i heard you say moving lower and it cut. >> no problem. that's some of the issues when we talk on zoom sometimes. i with was asking you are you surprised to see most moving lower. ? azure growth reaccelerated and a lot of people seemed to think it

was a strong narrative when it came to ai. >> actually, yes, we are very surprised. that's the way things work sometimes. for us these results were incredibly strong and what we hoped to see. >> strong results, but one thing i thought was interesting is it will have a life cycle but traditional optimization cycles will continue. why are we seeing a big jump to adopt these co-pilot and other ai features? >> well, think of it as like as humans we're meant to act, not at be reacted upon. however, as we give these agents more and more information about us, they're able to act on our behalf.

microsoft is up at 11.5 million. what it allows them to do as the agents know more and more about us, they do more workloads for us, and it makes our lives easier. >> got it. i want to switch gears to alphabet. falling considerably harder than microsoft after earnings, a couple of different weak spots. is there one part of this report in your munld that was especially concerning or you think justifies a drop in the stock? >> so sorry, frank. it's cutting in and out. it cuts right when you ask a question. >> not a problem. we turn to alphabet. we turn to metrics from earnings. was there one part of this report that made you concerned? a lot of people are pointing to the ads?

>> yeah, absolutely. obviously google's core monetization strategy is search, whereas, with microsoft, all roads seem to lead back to microsoft. they act as a jiejd toll taker on all of global enterprise, almost like a tax on global productivity. google is more of a tax on global advertising but it's through that core search bar, and so the concern we have is that as these ai agents as we were talking about, as they become more important in our world, the fear is that they -- not just chat box, but the agents themselves, that agents will start to use various methods of search. we're already doing it when we went from desktop to mobile. we started to use more -- airbnb for searching for travel or amazon for searching for products. the concern is will they keep the same number of queries, and if they do, the question is will they maintain market share in the digital advertising dollars.

>> when it came to google cloud, actually better results than expected. very quickly, we've got to let you go, are you confident in the google cloud story going forward? >> yes and no. most of these things -- we're more confident in aws and azure. i think google cloud will remain a distant third. think of them as an internet protocol. >> we've got to go right now. it's great to see you as always. coming up on "worldwide exchange," elon musk and his cke.paag what it could mean as tesla gets hit on the news. we're back in just a moment. and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley. icy hot. ice works fast. ♪♪ heat makes it last.

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package. all right. welcome back to "worldwide exchange." we have a market flash for you. terradyne shares falling after forecasting another drop in revenue, the company warning of lower demand for its chip testing equipment. shares of terradyne down more than 8%. robert half shares down, reporting a decrease in revenue and net income, and the ceo says while global demand remains resilient, shares are down. they're down almost 10%. turning to tesla, shares under pressure after a delaware judge sided with an investor back in 2018 claiming that elon musk and his $55 billion pay package was excessive. in the 200-page opinion, it did

not end there. the judge went on to say muff pick's compensation terms clearly failed to show what required him to have the money and that it was rife of conflict of interest when it approved that deal. the ruling threatens to take down elon musk's status as the richest person in the world. joining me now is sarah kuntz. sarah, good morning. you've seen these firsthand. give us a sense. what do you think of this judge's ruling? >> she's not wrong. it's hard to worry about elon musk when he is still the third richest person in the world. the reality is it's a massive package. it's something he admitted he negotiated against himself with. he's the one who came up with those terms. it's hard to junts phi that.

we don't want to think nobody's going to have a problem with that. >> we're showing some of the comments from the judge's decision. unfathomable sum, deeply flawed, historically unprecedented, unfair price, those were her words from the decision. i roy. to come back to you. play devil's advocate. elon musk has been the driving force so much. i know he's not the founder, but he's been the ceo for a long time. without him, is this company worth what it's worth, and aren't you only what you bring to the table? isn't there some argument he's worth that $55 billion? >> nobody's saying elon musk should. get paid for his work. certainly his cult of personality has been a huge part of driving the stock price and evs. i say that as someone who's not a big fan of evs long term. this wasn't about retention.

he wasn't trying to leave. he didn't have a better offer anywhere. he just wanted more money and so he asked his friends on the board, including his divorce attorney, for more money and they said yes. then one of the shareholders said that's not how it works in public companies because you have fiduciary responsibilities to your brothers on the board. >> i want to ask you about this, the board going forward. is it possible to see changes on the board? just for your clarity, i don't think elon musk is the only ceo with rubber stamps on the board. he certainly isn't an outlier when it comes to that. after the decision, do you expect to see changes to tesla's board? >> i think people who have the same last name or grew up with him will get a harder look. it's hard to say they're impartial when one is your younger brother. this is top of mind over the last 12, 15 months. we saw that with sbf and sam altman before thanksgiving. these boards of privately held

startups are having to grow up in real time because a lot of them to your point have been rubber stamping anything in front of them, and that is not working anymore. >> sayrah kuntz, great to see yu as always. coming up on "worldwide exchange," the one word every investor needs to know today, plus why our next guest says it may be a bumpy road ahead. we're going to be right back here with w.e.x. stay with us. awkward question... is there going to be anything... leftover? oh, absolutely. [inner monologue] my kids don't know what they want. you know who knows what she wants? me! i want a massage, in amalfi, from someone named... giancarlo! and i didn't live in that shoebox for years not just... with empower, we get all of our financial questions answered. so you don't have to worry. i guess i'll get the caviar... just kidding. join 18 million americans and take control of your financial future with the real-time dashboard and real-live conversations.

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welcome back to "worldwide exchange." it's time for your w.e.x. wrap-up. starbucks is up higher due to a number of headwinds that included a boycott in the u.s. and included discounts in china. amd underwhelms on guidance. and the video game maker says it's's prioritizing investments for multi-year growth. stryker getting a boost after a 12% increase in revenue sales, citing its competitive edge, operational competition and samsung reports a 74% declie in revenue and a 35% drop in

operating profit. and shares of mondelez falling, squeezing demands for the company's products that include oreo cookies and ritz crackers. the final trading day of the month, taking a look at futures, we're seeing the dow hitting the highs this morning, looking like it's onning up at 50 points higher, but the nasdaq falling. joining me now is victoria greene. you are, of course, a cnbc contributor, friend of the show, all-around expert on a whole lot of things. good to have you here. >> good to be here. >> having concerns about the mag seven? >> a little bit. i mean google was a miss, tesla was a miss. microsoft wasn't a miss at all. i'm going to pull from my

favorite artist, they don't impress me much. i think you're seeing a little bit of caution, yes, if you meet expectations, that's great, but we're going to need more than that for growth. i think microsoft can rally out of it. it's the google and the ad revenue miss that's dragging us down. >> you gave us your favorite shania twain line. what's your w.e.x. word of the day? >> seatbelt as in buckle up buttercup. you may see this little peaks and valleys. we can't hit a record every single day. some of this is expected. some are repricing in what they see with the fed and earnings growth. they've not necessarily seen an earnings decline. you're seeing the meg seven decline, and investors want to

see them make a little more. today, of course, is the fed decision. what are you expecting from that? >> obviously it's a no decision. i think if they do anything today i'd fall out of my chair. >> but the press conference. >> the press conference is what they'll be saying. number one, data dependent. we should get our binco card out. they're going to leave options on the table. i think march is still too early. futures continue to price that in less and less. it's around a 35% to 40% chance down from 67% earlier this month. march is off the table for me. i think you're going to see data dependent, leave options on the table, not paint himself into the corner, remain a little hawkish and not price the markets in too much. if it's priced in too much and the feds don't see it in the cards, it's painful. >> i'm going to hit the brakes. i know you have your seatbelt

on. why is it already off the table and how does the market react if jay powelle even hints that it's off the table? >> i think it's off the table because it's too early. may or most likely june is where you would see some of the traditional cuts start. if you look at the timing when we stopped hikes, it's a 12-month lag. totally normal between the pause and the cut coming in. for me i don't think the data's there. you're not seeing operation pressure. i don't know if j.o.l.t.s. is surprised. it's being moved around by the survey results. adp is important. if you have strong labor and inflation is label and they want to avoid 70/80s, they're not wanting to cut soon. >> give us your push like an elevator pitch? >> i think meta picked up the ad revenue. google didn't have it. i think it all went to meta.

>> do you think the year of efficiency? does it continue? a lot of talk about margins when it came to alphabet and microsoft. >> i do. zuckerberg has been pointing on that, continuing to reduce head count. we saw a lot of growth in china from some of the people in the chinese e-commerce, what are your daily average users. more net profits for investors, that's a good thing to like. they like a ceo who likes to put money in their pockets. >> push and push. spending in data centers and cutting in others. vicki, thanks for being here. that's going to do it for us. we've got "squawk box" coming up. have a great day. in real time. (jen) so we partner with verizon. their solution for us? a private 5g network. (ella) we now get more control of production, efficiencies, and greater agility. (marquis) with a custom private 5g network. our customers get what they want, when they want it. (jen) now we're even smarter

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good wednesday morning. nasdaq futures are plunging, driven lower thanks to big earnings reaction from alphabet, microsoft, and amd. >> a judge strikes down musk's $50 billion pay package. nikki haley reportedly raised millions hosted by billionaires. we'll have an update on the money battle behind the presidential race. this is monday, january 31st, 2024. "squawk box" begins right now. ♪

good morning and welcome to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm mike santoli along with contessa brewer and roberts frank. joe, about andrew, and becky are off today. we mentioned the nasdaq is under pressure following some underwhelming earnings reports, i should say, from microsoft, alphabet, and amd. 100% decline. although interestingly it seems like it might be happening toward a rotation of nontech stops. s&p 500 you see down just a little more than half a percent. dow futures up and small cap futures also up. we also have a fed decision today. take a look at treasury yields