it is 5:00 a.m. here at cnbc global headquarters and here is your "five@5." we begin with wall street looking to keep the hot streak alive with the dow in record territory. futures are higher right now. returning to tech and meta stunning investors with the first ever dividend and $50 billion share buyback. amazon is popping thanks to higher profits and holiday sales surge. then, apple breaking a streak of sales declines, but

i' kp china fears weighing on the stock. regional banks get hit for a second straight day. it's friday, february 2nd, 2024. you're watching "worldwide exchange" right here on cnbc ♪ good morning and welcome to "worldwide exchange. i'm frank holland. let's get you ready to start the day with the kickoff of the u.s. stock futures check with the dow at the all-time high and on pace since mid-december the dow is flat. the big story this morning is the nasdaq it is moving higher after meta and amazon results we are checking the bond market ahead of the january payroll report expected to show employers added 185,000 new jobs last month. that is compared to 216,000 back in december. yields with the ten-year yield below 4%

3.89%. we are looking at oil with the brent crude up .50%. that's the setup today is all about tech on the back of the stellar reports of amazon and meta and apple is flashing causes for concern. we have arjun kharpal joining us from london with more on these big tech results arjun, good morning. >> reporter: good morning, frank. let's start with amazon and meta the quarter showed cost cutting drives working meta was a company showing it was growing up and issuing the first ever dividend with the $50 billion share buyback. it will boost revenue and bringing down expenses and bringing down the margin all of this while mark

zuckerberg said the company will keep things lean signaling costs will continue. this is enough for the market to forgive $4.6 billion loss in the reality labs division and why the shares surged after hours. amazon posted $1.03 for the quarter. the cloud unit with $24.2 billion in revenue and ex accelerated growth rate. the ad business continued to jump apple was unfortunate. revenue up 6% faster than the market thought the services unit jumped around 11% although slowing down from the quarter before it was the near 13% fall from china revenue. apple faces intense competition from huawei.

ipad sales plunged as well apple expects the march quarter iphone sales to be similar to last year which implies little growth that rocked the market that was the key reason shares were lower in pre-market >> down 2.5%, arjun. meta declaring a dividend. big news there when it comes to a.i., what do we hear from these companies >> reporter: i'll be honest, frank. we haven't heard too much to move the needle or forward thinking things. tim cook kept his heart close to his chest. meta ceo mark zuckerberg said on the earnings call the focus is on building the most advanced a.i. products and services he spoke about a.i. assistants and smart glasses to interact with a.i. and a.i. recommendations on its platforms

like instagram reels he mentioned the company is working on general a.i the idea that a.i. can do multiple tasks equal to human or better levels. it is unclear how meta will monetize andy jassy said generative a.i. is a small business right now, but could draw tens of billions in the next two years. amazon launched a shopping cha ch chatbot in the u.s it is unclear what it will do with revenue for the companies with a.i., frank, but they are all talking about the tec technology >> everybody is talking about it the big story is meta. shares up 16%. declaring a 50 cent dividend arjun kharpal, thank you tech earnings providing the latest boost to stocks as the dow is looking for the fourth straight week of gains key to today's trading session

is the january jobs report expectations are for 185,000 jobs added dipping from the previous month for more, let's bring in ross mayfield at baird. >> good morning, thanks for having me. >> the jobs report is coming up later today. you are looking at the soft adp report and headlines tech alone is 30,000 layoffs ahead of the jobs report, what are your expectations? what do you think this could mean despite whetat we heard frm jay powell >> for the adp report, it is not an issue you will see a cooling of the labor market or normalization of the labor market you see it in the jolts as well. things are returning to normal what you expect for that higher rate environment as well what jay powell said spooked

equity markets at the same time, you have that soft adp report. if i was jay powell, i would not be that explicit of taking the march cut off the table. it is good to hear the pivot we saw the data before march we could see softer data to necessitate a march cut or urge one. >> ross, i know you will watch the inflation reports. we have the report yesterday q4 u.s. productivity estimate is 2.5% the actual is 3.3% a very big beat there. why is that so meaningful to you? >> productivity is the secret sauce of the economy how we produce more with the same input time, money, resources you heard about the year of efficiency some of the tech companies boosting margins and doing a lot with a little. i think it is really important and it is a noisy data set

the third straight quarter of above consensus and above average productivity growth. whether it is technology or companies buckling down in the higher rate environment and being efficient is a good sign for the economy and good sign for growth in the 2020s. >> you are bullish on the economy. you are saying you would put money into industrials why is now the time to go into industrials? >> they are technically sound. they have some cyclical and structural tailwinds with fiscal spend down the pipeline. on the cyclical side, they are soft landing adjacent. as the economy is resilient means we are seeing it in the pmi and a bit of bottoming in the area >> ross mayfield from baird,

thank you. more coulto come on "worldw exchange," and the one word investors need to know. more on big tech's big day and the one wrinkle in the meta's stellar report. and the latest on the regional bank fears and why the concerns may not be over we'll have more when "worldwide exchange" returns.

welcome back to "worldwide exchange." the dow is flashing into positive territory right now it was fractionally lower. the star of the morning is nasdaq which is up 1% on the back of the amazon and meta reports. let's get the latest from the european action with joumanna bercetche in the london newsroom >> it is a positive start to trade. the stoxx 600 is sitting at levels not seen in the last two years. for the week as a whole, it has been muted with the indices up .10%. the periphery is the out performer. the ftse mib had strong financials coming through. the focus on the ftse 100 in the uk this is one day after the bank of england meeting where they

did not change interest rates. the community take away is they are opening the door to the possibility of rate cuts in the coming months. that was enough to give the market a little bit of love. this is where leadership is coming from. we are seeing a good per fornl an performance in retail. adidas down 8% and it has recovered the losses real estate is up 1.5% autos is up 1.5% mercedes-benz is a key stock with free cash flow coming in positive on the flip side, oil and gas down 1%. basic resources down .40%. that is because of the weakness we have seen in chinese stocks overnight. it was a volatile session. the hand over not pretty which is impacting the commodities in europe >> joumanna, thank you. we turn to the chinese

market where the indices have the largest loss in five years this despite the government's efforts to boost the economy and struggling property sector shanghai dropping 6% this week the csi 300 index is down as well japan is on a tear up 8% so far in 2024 in contrast to the chinese market joining me now is fred newman. fred, thank you for being here >> thanks for having me. >> let's start with japan. the japan's market is partying like it is 1989. the nikkei hitting highs we have not seen since then. what is the prime minister's plan to combat inflation what does that mean for investors? >> they are moving out of

deflation stage. we had deflation for decades they have a massive fiscal stimulus that is giving investors hope we are escaping that deflationary trap it is early days we have to be careful with the gains. fund fundamentally, this is an economy where the incomes are down with the inflation still so high and shrinking population. some of the gains from the depreciation of the currency is behind us. >> a lot of bullishness with japan. we had a lot of guests talk about it and warren buffett with investments there. when you say we have to be cautious with the gains going forward, is this a good place to keep money >> you have to be technical. you have to be careful we have seen gains in japan and investors shifting out of china into japan and india

a lot of the movements have already occurred we should not overinterpret the signals. up 8% already this year. it is still early days >> let's go to china let's interpret that despite a number of stimulus measures, chinese equities are moving lower the question is are we approaching the point where chinese equities are uninvest i uninvestable >> we throw this around a lot. you have one of the largest markets in the world there is tremendously good companies. al alpha companies to invest. there are two things which are a problem. one is we see some unwinding of structures in the market you had foreign investors being buyers of equities today

it is not all bad. last week, we saw three days with global macro funds going back into the market the valuations are so compelling unless you think china is going to disappear, there are compelling stories >> i like you came here to straighten us out. slow down on japan and china the real question is, we are getting ahead of ourselves i would think the property sector is not one area you want to invest. what about other areas with china that you see as having the best opportunities for investors? >> tech, of course, is a key priority of the government that is where we see the opportunities. if you look at the pharma sector, you have the aging sector healthcare and the green energy space. electric vehicles is still doing very well. >> basically, a big and diverse economy. look for the opportunities

fred neumann, thank you. great to see you. coming up on "worldwide exchange," cold weather worries hitting shares of one apparel hker in a big way weave the bonus set of money movers coming up next. 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? we can help with that, too. with the advanced connectivity and intelligence of global secure networking from comcast business. it's not just possible. it's happening. were you worried the wedding would be too much? nahhhh... [inner monologue] another destination wedding?! we just got back from her sister's in napa. who gets married in napa? my daughter. who gets married someplace more expensive? my other daughter! cancun! jamaica! why can't they use my backyard?! with empower, we get all of our financial questions answered.

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44% increase in earnings revenue jumping to $1.5 billion, but slowing after two quarters of acceleration. the company announced the retirement of the ceo and replaced by the chief commercial officer in august. skechers missing on expectations guidance lagging estimates and direct-to-consumer revenue growth shares down 11%. clorox moving higher after beating expectations it is rebuilding ahead of schedule this after clorox lost market share following the cyber attack in august. shares up over 8%. colombia sportswear under pressure on the 9% decline in sales. the company warning of the challenges ahead columbia announcing a profit improvement program targeting $125 million to $150 million in

annual savings by 2026 shares of columbia down 9% turning to washington now and companies are opening wallets in a big waylobbying o a.i. and potential regulation with the tech. we have megan caselli joining us from washington, d.c >> reporter: good morning, frank. data from open secrets here shows 450 organizations lobbied on issues related to a.i. last year that is an 185% increase from 2022 and 2023. there's a broad range of industry notice mix here it is not just tech firms, but retail and pharma and banking as well some just started lobbying on a.i. which includes amd and nvidia and qualcomm and chris

co-. t cisco. today is the deadline for firms to file public comment on guidelines focused on a.i. safety and security. google will urge u.s. policy makers to find consensus saying a.i. is cross border technology and bsa counts ibm and microsoft among members and saysthere is no one-size-fits-all for evaluating and mitigating risk frank, we'll track the comments today. what is clear so far is there is no shortage of opinions and no shortage of money to influence policy >> we know if there is money to be made, lobbying will be across the board. i want to talk about regulation. are we more likely to see regulations from the white house or capitol hill? there is a big push on a.i. regulation and trying to figure out guardrails for the last year >> reporter: everybody wants to

have a piece here. law make imakers on capitol hil been talking about this a lot. you and i know the nature of washington means there is not a lot likely to come from capitol hill on a complicated issue especially in the election year. that action is coming from the executive branch and white house. president biden signed that executive order in october the teeth of it are starting to come into play here now. we are likely to see a.i. ramping up moving forward in the next couple months or regulation. >> megan cassella on a.i. lobbying coming up, why it is not just disney, but the activist alert hitting toy aisles and railroads as well. we will have the full story when we ruretn. more "wex" when we return.

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it is just before 5:30 a.m. here in the new york city area here is what's on deck a final round of the big tech results with meta and amazon taking off. and key to the market today is the jobs report due out in a few hours. investors look for signals for the rate cut path and activists are setting sights on barbie and looking for changes. it is friday, february 2nd,

2024 you are watching "worldwide exchange" here on cnbc welcome back to "worldwide exchange." i'm frank holland. let's start your day with the half hour check on the u.s. stock futures. we are solidly in the green across the board dow is flat. really the s&p is up .50%. the nasdaq is the star this morning up over 1% the dow is once again at the all-time high and on the best pace since mid-december. nasdaq is working to avoid breaking the three-week win streak nasdaq is down over .50% we are checking the bond market ahead of the jobs report you see yields moving lower since the fmoc decision. the benchmark below 4%. that is the morning set up.

investors are getting set for the january jobs report which is due out at 8:30 a.m. eastern time with the economists expecting a modest slowdown in non-farm hiring. 180,000 net new jobs are expected this month. the unemployment rate is expected to tick up to 3.8%. today's report comes on the wake of the layoffs so far in 2024 and the tech sector and beyond with u.p.s. and citi, shell and macy's joining me now is veronica clark. great to have you here. >> thanks for having me. >> what is your expectation for the jobs report and we talked about the layoffs. tech layoffs over 30,000 and the big number from u.p.s. at 12,000 and citi at 12,000. what do these numbers show up in the reports? >> i don't think we will siee evidence of that in the january reading.

it could be an interesting one where we expect stronger pa payrolls we have 240. that is a strong increase in employment in january. some details could be interesting. we are expecting the unemployment rate to rise to 3.9% we could see upside risk there some details of a strong surface of unemployment, ybut you will see things changing. >> we had a lot of revisions for many months, we have seen revi revisions. jeff gundlach was here this week i want you to listen to this and get your reaction. >> there is data that never gets reported which is unemployment data reported on the state level. states do this, too. they have 51 states. d.c. is in there as if it is its own state. something like 85 or more

percent of the 51 state reports have rising unemployment over the last six months. there's a strange mathematical inconsistency that the rate stays at 3.7 on the national establishment survey, but over 85% of states report that unemployment is rising over the past six months. it doesn't seem possible >> i want to get your take what do you think of that strange mathematical inconsistency? >> they come from two surveys. we have seen this rising trend with the state level data. a lot of focus on this so-called rule with the unemployment rate and three-month average ri riseris rises .50% from the last year. we were getting close to that a couple of months ago and it has already triggered about 19

states it is something to watch out for here and we might be getting closer to triggering that nationally. >> veronica, maybe you are a football fan or a taylor swift fan. we have the super bowl coming up we have a possibility of strikes in vegas how will that impact the market going forward? if we have the strikes, what does it mean to the fed? >> it has been a very interesting labor market over the last year. we have seen loosening and we have seen hiring slowdown and quit rates dropped we haven't seen the big layoffs. anecdotally, we are hearing about that there is tightness to some parts of the labor market. we have seen strike activity increasing over the last year. auto workers was a big one that results in wage pressures and we have seen that in the latest report for employment cost for q4. we have seen the unionize workers with the wage increases. it is worrying for the longer

term trend if we are running 4% or 5% wage growth. >> the fed dual mandate with maximum employment we pay attention to the inflation reports and pce and cpi. should we pay attention to the downward revisrevision >> we should get that revision today. the trend has been slowing as long as on the surface, the labor market is hecalthy and th unemployment rate, even if it picks up, it will be low the fed has to be careful cutting rates. as soon as the unemployment data turns, i expect the dovish fed >> veronica, thank you >> thank you. time for the corporate stories with silvana henao silvana. >> good morning, frank shares of mattel popping on reports that the investor has

set sights on the company. according to reuters, barrington capital has an undisclosed stake in the toymaker and is looking to make changes to boost the stock. that includes s looking at alternatives for fisher-price and american girl brand. tesla agreeing to settle a lawsuit over allegations it mishandled hazardous waste in california for years the ev maker will pay 1$1.5 million and follow an injunction on the matter for five years tesla did not respond to a request for comment by cnbc paid $275,000 penalty to the epa after it found the company violated air emission standards near the freemont plant. intel is looking to delay construction on the $20 billion manufacturing plant in ohio.

construction on two factories in that state are now scheduled to wrap up in late 2026 the journal says the slow rollout of the incentives by the u.s. government is the reason for the delay. in a statement, intel has not made recent changes to its pace of construction or timeline. frank. >> silvana, thank you. intel shares down 1.5%. time to turn to the morning "big money movers. apple, meta and amazon are moving in direct different dires apple under pressure slowing demand no china with the foreign exchange and increased competition dragging down the stock. shares are down 2.5% met a is surging after the last year of efficiency the company declaring a dividend of 50 cents a share and $50

billion buyback. those shares up 15%. amazon is soaring on record operating income sk andy jassy seeing a.i. hitting every part of the business with billions in upside let's dive into this are alex kantrowitz alex, good to see you. alex, am i hearing you >> yes >> there you go. >> okay. great. >> we got you now. let's start with the last company we talked about. amazon there was a lot to like if you are an investor. operating income blew past estimates. cloud met expectations we have more clarity with a.i. what is the number one thing you think investors should take away with the report? >> we like aws growing again growth went 13% after a couple of quarters. amazon is an aws company right

now. the company senior leadership team used to have two people representing aws and now it is up to five that is the crucial number they have a lot of room to run when it comes to artificial intelligence i like to see andy jassy highlighting that. aws growth the most profitable they have ever been this past quarter with $13.2 billion in profit. they are meeting the market and moment good news on amazon. >> let's switch to meta. shares up double digit this is the last quarter of the year of efficiency the stock doubled in the last year the last quarter where we get granular information about users. the metric going forward is daily active users we saw a huge beat is that sustainable? >> i don't think so for user growth why else would you stop reporting the number if you thought you can grow at this clip, you would keep

reporting. now they will report ad impressions and the average cpm per region that, to me, shows you are not confident you can continue to grow users that being said, they still have more than $3 billion they will report monthly family. the amount of users across the app. users growth has saturated it will not continue to grow >> i have to be honest, it is lasting longer than i thought. i thought it would go the way of friendster lastly, apple. what did you make of the report and then are we overblowing the china concerns there is increasing concern from huawei are we making too much of that do you think apple has a new cycle with a new iphone and sales accelerate >> china makes up 20% of apple's

business to see that sales were down 13% which was worse than expected and growing competition with huawei as you mentioned. if they cannot continue to see growth, that will impact the com company. they were barely able to grow in the quarter. you know a lot of iphone sales moved to the next quarter. you will see it shrink again you will have contracting revenue five of six quarters for apple. not a great story to tell wall street >> we had a camera at the apple store in manhattan people were out there. the vision pro goes on sale. we are looking at growth and talking about a.i. tim cook teasing the a.i. ambitions. people are excited about the hea headset. give us a sense with the a.i. or vision pro, does that get you excited? >> there is hype with the vision pro this week. we have to keep our expectations

in line with reality this is an issue for the company. they just did $100 billion on the quarter. a tiny percent of the revenue and it will take a decade or longer for the vision pro to payoff you heard tim cook say a.i. for the first time and they may have something big coming later this year the way we interact with devices with amazon wants to interact with the web site. apple needs to play here i'm excited to see what they have on the a.i. front >> tim cook with the deep tease. we will wait and see alex, thank you. coming up on "worldwide exchange," a massive drop in the new york community bancorp shares this week we dig into the isolated incident or canary in the coal mine for the sector.

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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. old school grit. new world ideas. morgan stanley. welcome back to "worldwide exchange." shares of norfolk southern are boosted. i spoke with someone familiar with the negotiations with the group looking to removal and shaw because he compdoes not ha

rail experience. csx has an operating ratio of 64% compared to norfolk's 73%. lower is better. activist are critical of pursuing the mode al bal busine. we will continue to watch the story. and one area of the market is struggling to gain footing is the banks. new york community bank falling another 11% yesterday after wednesday's historic drop following the surprise quarterly loss and drastic increase to its capital reserve tied to loses on commercial real estate loans the stock is dragging down the etf 7% this week for the worst week since september the u.s. is not alone in the selloff sector shares of japan's aozora bank

slip and cutting the value of the u.s. office loans by 50% germany's deutsche bank is signaling warning signs for the real estate portfolio. it took a 365 million euro credit loss over last six quarters joining me now is stephen scouten from sandler piper. you are the second person today saying this is not a canary in the coal mine, but isolated incident what is that >> hedging my bets we are expecting to see losses with the office portfolios with the larger metro markets where we saw population flows move out of the cities down to other markets largely in the southeast. i think we have been expecting to see weakness.

frankly, we had been surprised we have not seen more to date. we just got through bank earnings season and not much with the create all until the last couple of banks reporting the week afternoon there are clearly issues with losses to be taken we also have to take it within the context of how much capital and reserves most of the banks have when you look at new york community, a lot of the issues with forward earnings and the stock decline had to do with liquidity build and other necessary capital build with $100 million assets. it was a regulatory build as well as a credit issue >> one thing i want to talk about is the issue here when it comes to new york community bank with multifamily housing we have people coming on and they talk about real assets. multifamily housing is strong. we know what is going on with the real estate with offices more work from home.

why do they have an issue with multifamily? >> that probably is more of a one-off incident in my opinion it is the new york market and rent control issues. there is more specificity to that issue than the office concern. aozora business is the office business i think multifamily, across the country, is holding very strong. we heard of weakness this houston on a one-off, too. by and large, that is holding up well >> we are looking at new york community bank shares are he borebounding, butn for the week you have come on before and said stocks trade on sentiment. the issue with new york community bank, what does it mean for sentiment >> i think it is really difficult for the sentiment around banks in the near term. you can extrapolate the losses

to your heart's content. if you want to say aozora took up 60% on the office loans, you can take a negative view on the group. it is difficult to get investors to step in front of the names until we get more clarity to say this is going to hold where banks are reserved we will have a softer landing. everything comes down to the fed when it is bank related. we need to see clarity and give people confidence with the soft landing. seeing the losses materialized is a good thing because we had a cycle and we're past an the cys cycle. >> stephen, thank you. ahead on "worldwide exchange," the one word every investor needs to know today and

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decker's seeing sales increase with ugg is the top seller shares of skechers are falling. revenue rising 4% compared to the 8% increase the company saw over the past two quarters shares down more than 11%. columbia sportswear is blaming warmer weather for weaker results guidance coming in light shares down 9% clorox raising target after beating the estimates. it is rebuilding inventory at a faster pace as it bounces back from the august's cyber attack shares ups 8%. peloton is warning it is months away from growing sales or turning a profit. shares up 2.5% the big drop over the week. we are watching shares of

amer sports. making a muted debut on the new york stock exchange yesterday. the market cap stands at $6.5 billion compared to the previous valuation of $8.7 billion. the market looking to extend the gains yesterday. the dow hitting a fresh record close. take a look at futures which are solidly in the green nasdaq is the best performer up over 1%. joining me now is mimi duff at gen trust. mimi, good to see you. >> thanks for having me. >> what do you think of the action and futures nasdaq is something i expected after amazon and meta results. will we push again to more highs with the dow and s&p >> i think there is optimism built need to see with earnings. earnings are expected to be considerable this year i think the proof will be in the pudding. >> with that in mind, mimi, what

is your "wex" word of the day? >> the word eof the day is payroll. >> looking forward to that report >> yes we are watching the labor market and seeing if it will come into balance. last summer, for instance, we had two job openings for every seeker now it is down to 1.4 based on the jolts data adp is a bit weaker. we will see payrolls today it is the goldilocks scenario that the market is putting a lot of weight on not too hot, not too cold. can we bring the labor market in balance without spiking inflation and tipping into recession. >> we had a guest on earlier talking about the jobs report. where does it place when it comes to reading the tea leaves with the fed is this becoming more important

or are we focused on the inflation reports? is that what we need to watch? >> the fed laid it out clearly they have two mandates full employment and inflation at 2% based on the core pce metrics, which is their favorite and many others with great improvements on the inflation side. they want to pmake sure we are settling in at 2% and we are not going to see a spike which might come from durable goods and deflation and services i think inflation is more important at this point. >> okay. we want to get to your pick for us today it is not that sexy. bonds. you like bonds we had jeff gundlach on this week he likes twos, threes and fives. which part do you like >> we like the index with the duration of 6.8 right now. we are in the business of building durable portfolios that

can play out through a range of scenarios. we think over a small overweight in bonds has it over equities right now. >> you play it broadly duration is 6.8? >> we have the entire index in our portfolios we have corporates with record supply this month. we are on pace for a record supply that speaks to the demand. >> mimi, we have to leave the conversation there thank you. that will do it for us quick look at futures. "squawk box" is coming up next

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good morning big earnings reaction from big tech it's big meta and amazon higher apple shares are falling we will run through the report straight ahead energy giant set to report we will hear from exxonmobil and chevron in the next half hour. both based in the world's largest producer in the united states. and today is jobs friday >> yes here we go >> that's good

we'll get you ready for the latest employment today. it is friday, february 2nd we are in a fog out here it is groundhog's day. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen we are live at the at&t pro-am at pebble pebeach. we have andrew ross sorkin in new york we have jobs friday and ahead of the number, you will see it looks like the futures yesterday, you did see the dow close up and the dow and s&p on track to be up for the weeat