ofdateline." i'm andrea canning. thanks for watching. [theme music] ♪ welcome to "street signs." i'm carolin roth and these are your headlines europe's stoxx 600 hitting a record high, but with the economic downturn in germany is deepening in the month of february. investors taking a bite out the nestle after missing on organic sales growth how the ceo is looking at the

sales numbers. >> inflation happened. we have to respond to it now normalizing and delivering solid growth that is more based on volume and mixed development is the name of the game. mercedes-benz accelerates as the automaker launches a more than $3 billion buyback. the chairman strikes a bullish note despite lagging lower returns from cars and vans >> part of the challenges we are solving and we are staying around the same level as 2023 which was a solid year for us. lloyds surges 60% as the british lender announces a $2 billion pound buyback. businesses are starting to recover from years of shocks >> we are looking at an environment which we think is going to low growth resilience

and we are seeing green shoots in terms of business confidence. we areset up for 2024 and beyond good morning it is nvidia day and we are seeing record highs across the european markets it is also busy when it comes to the flash pmi. the eurozone flash pmi for the number of february composite at 48.9 against 47.9 in the month of january once again flash manufacturing for the eurozone at 46.1 that is a bit of a slowdown from what we are seeing in the month of january 46.6 i want to get to the services number and that is an uptick against january. we are seeing a print here of 50 that is obviously the boom/bust

line of contraction from growth. this comes after germany's economic downturn deepened in february with the composite pmi falling from the january reading of 47. french business activity picked up with employment rising for the first time since october and business confidence rising to the seven-month high let's get to chris williamson. chris, thank you for your time it looks like an uneven recovery here >> it does by sector and by member state within the euro area manufacturing still in decline with the service sector showing signs of stabilization welcome turn in the services pmi. these sectors are playing out according to member states dependent on the different

activities germany, the heavy manufacturer is still reeling from the downturn other member states such as the outside of france, the rest of the eurozone, where there is a lot of service activity, with consumers like italy and spain, the data has sppicked up nicely >> chris, can i ask about the disruptions in the red sea is that having an impact on the businesses >> it is minimal in january, we saw the first lengthening of service difelive times in almost a year which is tied to the red sea disruption in february, those supply chains were faster. there was a short hit to that and that is now passing through. there is little impact on prices which is the most important concern. >> chris, you talk about the

patchy recovery across sectors and members memberstates a guest told me the ecb may be in for a policy mistake if they don't ease soon. obviously, they want to ease after the fed moves first. what do you think this means for policymakers overall in the eur eurozone >> it's not easy there are different directions you have manufacturing prices continuing to fall, but service sector price inflation is accelerating and it has been accelerating for four months t. it is way above levels from the pandemic if you look outside france and germany, prices charged for services is up above 58. prior to the pandemic, it never went above 55. this is really strong inflation signals still in some parts of

the eurozone really difficult decision. when you look at growth picking up here, especially the service sector growth which is a big labor market dependent sector taking on more staff and paying them more will make nervous meetings at the ecb. i can't see them moving any time soon. >> when it comes to germany, we are looking at falling input prices on the manufacturing side that is a really good sign after the last two or three years in terms of rising input prices is there a good sign on balance or is it a bad sign because it points to pretty anemic demand >> absolutely. the anemic demand which is the concern. yes, it may be good for the ecb policymaker looking for forward inflation signals. it is the sign of malaise and demand of the order books across

the german economy with the decline we are seeing now where the shift away from the high energy cost industry that germany has seen is in play. it is favoring the economy u.s. as the u.s. where you have seen better manufacturing in europe and asia germany still seems to be losing out there and that weakness of price pressure is a symptom. >> chris, i have to ask about the market levels with the record high across european markets with the stoxx 600 surpassing the levels we saw back in january of 2022. the cac 40 at record level and dax almost at record level why is it companies are still not feeling some of the positivity and optimism even though at some point the optimism that we're seeing in the market should be filtering through to the real economy,

shouldn't it >> it is we have been seeing some signs of that. we have seen loosened financial conditions start to feed through to higher financial services activity we have seen this in january through the pmi globally this was filtering through to consumer activity as well. this is things like the lower mortgage rates that have been priced in now because of the expectations of lower central bank policy rates. that is starting to come through. it will take a while to filter through to the other part of the economy that is not impacted by the loosening of conditions such as manufacturing this has a lag to play through don't forget that inflation is a major drag on the consumer side. a lot of the stock prices are pricing in future growth and looking forward to when rates are lower and when the cost of

liv living crisis is behind us we are not there yet this is forward pricing of that growth and it is contingent on central bank pricing in 75 points think the market realizing we don't need 100 points, but the recovery will remain in tact with lower rate cutting. there is that opportunity there. the simple fact is the pmi, the activity data, is not where the market indices are that's pricing in these indivisible ces have to co price in >> thank you, chris. let's get back to the market record high for the stoxx 600. up 0.7%. we surpassed levels we saw back in january of 2022 what is the main driver here we saw the nvidia earnings

blowing it out of the water. we are seeing a lot of strength coming through in the chip names. we have the earnings reports out of europe and those are giving us a helping hand here i want to show you the sectors one by one this is where you will see the leadership coming through for technology which is up 3%. autos up by 2% we will talk mercedes in a second food and beverage is the nestle effect it is weighing on that basket which is down 1% real estate and utilities weighing lower as i said, we have had a slew of european earnings crossing the wires this morning what a busy day. nestle is missing on full-year organic sales growth as it continues to high prices nestle down 4% lloyds banking group reporting 57% profit which is better than expected

let's talk about mercedes doing very well up 4.5%. mercedes-benz is a beat fourth quarter posting a profit of 3.16 billion euro the carmaker warned the 2024 revenue will come in at similar levels to last year as inflation and supply chain costs bite. the group announcing that share buyback program up to 3 billion euro building on the separate buyback of up to 4 billion euro from last year annette has more what are the key take aways here >> reporter: the key take aways is they are continuing to actually do something for the shareholders it is not only the buyback, which is new today, but for the future they are considering the investment of the free cash flow to return to shareholders. 2024 was the message of a

transition year before 2025 where there will be new ev vehicles coming to the market. that was very interesting because clearly the strategy was just to target the upper end of the luxury market. now they are also saying that they he will look into the middle class ev market because that is where sales are stronger than the higher-end luxury market perhaps we leave the floor for the man himself. let's listen >> it is true that the macro environment is different and volatile with the conflicts around the world and some tension on the geopolitical level. the higher interest rates are still high and in china where they they are dealing with their economic structure the macro environment is difficult. that doesn't mean we are retreating from any one market we always try to exploit the

maximum potential for us in the more than 150 countries we're active in. it doesn't mean in spite of the challenges on the macro level that we're peeling back investment we are actually in the highest level of investment in the history of the company readying a new generation of products which some of which will be launched this year, especially on the electric vehicles starting in 2026 and beyond. we are full-speed ahead with th h technology and the broad set of products for the years to come >> you are sticking to the high end of the market and evs. if you look at the fourth quarter, they are more or less flat on sales. how do you boost those if the target is to get away from

combustion >> i don't think anyone ever believed a transformation would be a straight line many things affect ev sales in the markets around the world such as build up of charging infrastructure in some cases, incentivizing is changing from one day to the other. the key is flexibility if we dig deeper and look at the structure, most of the volume is small or medium. many segments were where mercedes doesn't find a home we have in the next generation of ev products and we showed a concept car or concept cla at the munich auto show last fall where the whole host of vehicles from '25 to '26 will come into the medium segment whereas we are prudent and

cautious about 2024, but in 2025 with those product launches, we fill start gaining momentum in the segment of the market that is growing most at moment. >> so they will officially push the electric vehicle target into the future now only 50% by 2030 should come from electrified vehicles. the rest from hybrid and combustion engine. it is difficult with the demand with the electric world as the infrastructure is lacking behind >> reporter: i would like to draw attention to the share price because if you look at the one year of development there, they are actually down by 8% that is a similar thing with bmw. even porsche is down the message is there is concern hanging over the shares given

the uncertain outlook of the industry i think what we heard today from him is a bit more confidence that the industry is getting through that transition without less ambitious targets moving into lectric, but keeping the cash flow level at high level. free cash flow came in higher than last year's quarter which also was better than expected. showing that the company is managing to control costs to keep the investment level up, carolin. >> thank you that is in line with the auto analyst told us yesterday. expectations have come down for the auto sector and it is easy to beat. that is what is happening with mercedes-benz. the french insurer launched a buyback of 1.6 billion euro and hiked dividend 16% on the back of higher earnings and net

realized capital gains. lloyds report a 57% profit which is 7.5 billion pounds, better than expected the group announced a share buyback of 2 billion pounds. investors not liking this with it being down 1.7% the ceo said the bank is seeing resilience despite elevated interest rates >> our customer base with the biggest provider of lending to all retail customers in all segments and also material business lender, our customer base is resilient. if anything, the early indicators are looking positive at this stage than over last year we guided our impairment ratio is less than 30 basis points that is what we have seen. that will be stable or strong going forward. we are not worried about that. there are some customers struggling to make ends meet we have great ways to support

them we see resilience in the customer base. coming up on the show, nvidia shattering all earnings expectations delivering another eye-watering sales forecast as investors pile into the a.i. trade. our resident tech expert arjun kharpal is waiting in the wings. he will join us after the short break to breakdown the results to see where nvidia goes from here your business. take full control of your brand with your own custom store. scale faster with tools that let you manage every sale from every channel. and sell more with the best converting checkout on the planet. a lot more. take your business to the next stage when you switch to shopify. ah, these bills are crazy. she has no idea she's sitting on a

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back to the top story. nvidia shares rising by as much as 10% in extended trade after the chipmaker crushed wall street's already elevated expectations net income surging 750% for the quarter to $12.3 billion with revenues forecast to come in at $24 billion in the first quarter. well above analyst estimates let's take a quick look at the u.s. listed chip stocks pre-market everyone basking in the glow of nvidia advanced micro up and super

micro could rise 13% let's show you what the global chipmakers are doing everybody one getting a shot in the arm. st micro up by a similar amount. we saw the rally across the japanese chip sector and that propelled that market to another record high. arjun is here. you have been poring over the numbers. it is difficult to find the fly in the ointment. >> a slight blemish on the numbers. that's china the company saying that data center revenue where investors are looking closely. this is where the chips are being sold with that business there. the data center revenue declined due to the export restrictions in china nvidia saying this accounts for a mid-single digit percentage of

the data center revenue. they expect another decline this quarter as well. what they have done is created new chips that effectively comply with the u.s. export restrictions that came into effect in october. they are trialing these with the customers in china potentially later on this year is when they will see the numbers. that was an early blemish. that was the market overlooked with the hugely surge in profit you mentioned with the surge in revenue and the data key is guidance well ahead of consensus. that is signaling the a.i.-fueled chip boom is set to continue for the next quarter. >> what about 2025 what we're seeing is that certain language model con consolidating after a couple of years. would that happen in this case as well and demand for the training would fall? >> potentially it depends on end user demands

right now, the way a.i. is getting in the hands of people is the big companies like microsoft and amazon and google, et cetera, are investing in the infrastructure buying up these a.i. chips from nvidia for example, meta says it will have around 350,000 h-100 chips in the computing infrastructure this year. they are buying a lot of chips selling the products of that in the case of microsoft selling copilot to customers as a result the customers, whether they are healthcare businesses or finance businesses, they are not the ones investing in the infrastructure that's where we are right now. the question is if the demand for those products starts to tail off, that would mean the big hyper scalers cut back on that next year and they realize we have significant data center capa capabilities, we don't need to

buy as many chips. going into 2025, not only that, does the demand picture stay in tact secondly, does the competition get tougher with amd in the market >> arjun, we have seen the brokers falling all over themselves with increasing price targets to new notes why is it hard to find the right price target and consensus on where the stock could go >> we don't know when the growth rate will slow down. that is the question if they continue -- this is not sustainable growth this is a boom that is fueled by chatgpt and explosion of that and generative a.i. throwing itself in the popular ima imagination and tech companies investing. that cannot be sustainable when the growth rates slow down, we will see a relatrelating there is a fear of missing out >> of course not >> that is why everyone is

throwing out the $925 price target nvidia was over $700 in pre-market now many brokers seeing a big runway for the stock over the next 12 months. >> i worry what will happen to the markets and market levels and enthusiasm if it weren't for nvidia coming up, we have more data and we will get the latest february flash phi data out of the uk stay with us we'll be right back. how much!? i can do this myself. rockauto has the same parts professional mechanics use. many that you can easily install for a fraction of the cost. do it yourself with rockauto. >>(music) all the parts your car will ever need. rockauto. hi, i'm darlene and i lost 40 pounds with golo in just eight months. golo has really taught me how to eat better and feel better. as long as you eat the right food groups in the right amounts, that's all it is.

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welcome to "street signs." i'm carolin roth and these are your headlines. europe's stoxx 600 hitting an intraday record high, but there is a mixed picture with the germany economic downturn in the month of february. investors taking a bite out of nestle after a miss on the sales dps growth the ceo is speaking over the price pressure >> the inflation is taking over.

this is not something we wished for. we had to respond to it and now delivering solid and continuous growth based on volume and mixed development is the name of the game. mercedes accelerates as it launches a $3 billion buyback and the chairman flagging a stern note despite the returns. >> despite the challenges we are solving, we are guiding that we will stay around the same level as 2023 which was a solid year for us nvidia shares jumping in pre-market trade after a whopping 265% surge in fourth quarter revenue. the ceo is bullish on demand >> fundamentally, conditions are

excellent for continued growth calendar 2024 and 2025 and beyond let's get back to the macroeconomics data here in the form of the uk global flash composite pmi coming in at 53.3. that is an uptick against january where we saw a print of 52.9 the flash services pmi at 54.3 that was the same number in january. when it comes to the manufacturing print, that is still below the boom/bust line at 47.1. take a look at sterling/dollar at 126.83. ahead of the numbers, it saw a nice rise here the uk economy once again putting the recession behind it, it seems, but inflation

pressures are rising that's according to the data points this morning. nestle full year sales dpr growth missing expectations. sales rising 2.7% and profit jumped to 11.2 billion swiss francs the ceo expects the price pressures to ease this year. >> we all have been navigating historically high food price inflation. we haven't seen it that high or spiking that much since 50 years ago in 1973 or 1974. this is an unusual situation i know that this creates burdens for consumers. it also intensifies the negotiations with the manufacturing. having said that, we have seen inflation come down somewhat now and i think we are looking at a

moderating environment in 2024 this is now where volume growth and mixed growth will have to take over from pricing >> plenty more questions of the product mix in a few moments of time we had a strong debate in the show over interest rates can go lower and creating a recession environment over the concerns of central banks. is food price inflation going to go down again to more historic levels as far as you can see or remain elevated? >> very important question and we have seen food price inflation come down somewhat already. although not to the levels pre-pandemic and p toward the latter half of the previous decade i see a nuanced picture going forward with the choppiness with commodities at historic highs.

think of cocoa or coffee or sugar and others moderating somewhat i think the interview from the section before showing lower, but not back to the pre-inflation levels is a fair summary. >> let's show you the stock again. it is down by 3.76%. off the levels of the lowest levels of the day. that is a big drag on the sector today and obviously on the smi given it is a heavyweight here nestle changing hands at 95.41 now staying in the sector, danon is proposing a 5% hike after reporting 7% growth in full-year sales which is at the top end of the guidance. shares up .50% there is a lot of good stuff in the numbers, right, charlotte?

>> absolutely. it is interesting to see the numbers in parlay with the nestle story they are in the same sector. what is key is the full-year numbers which are better than expected looking at q4 sales, up 5% what is really interesting is the volume mix which is turning positive that is really crucial here for the food manufacturers we know that some of the sales have been going up because prices have been going up with the higher raw materials the volume had been going down suddenly some customers have been going on other brands, particularly supermarket brands. we talked about this yesterday with customers are going to the lower supermarket brands suddenly the volume mix is turning positive and it shows they heare gaining backs customers. it looks like nestle is still turning on customers that is looking to see for 2024. it is a turn around story at

danone they had new management and strategy they are on track and it is bearing fruit and it is showing the transformation is working there. interesting here with the record operating margins up 40 points the exstrategic plan with 3% and 5% this year with the operating margins. carolin, the dividend is up 5% which is up $2.10 a share. you see the positive rehe areacn a big part of this is that positive volume mix which is coming back. that is the key for the manufacturers in 2024. >> charlotte, i want to continue that discussion. we have an analyst waiting here. john cox john, this is a tail ole of two

consumer stocks this morning where did the miss from nestle come from? >> they had problems with the vitamin businesses nestle, over the last couple years, spent big on building a mu multibillion dollar supplement business it is trying to do an integration with two factories involved and that has gone wrong for them you sueaw consumer health volums down in q4 after a decline in q3 the company cut guidance from close to 8% organic sales growth for 2023 to 7.5% they missed that figure. that problem is taking them longer to sort out in addition, the guidance of 2024 of 4% organic sales growth. this is unlike nestle to come

out with the cautious statement for the year that is on the pack of the consumer health business and the problem with the i.t. integration. overall, the market is very cautious on food at the moment saw danon with the good set of numbers with the stock up .50% nestle missed and it was down 5% we saw jdp yesterday with the stock down 7% at one point i think a lot of that is to do with the environment on food a lot of investors focusing on food and worried about the impact of glp-1 or ultra processed foods. the environment where these guys source agriculture and heavy polluters. however, i would continue to say the likes of danon and nestle are probably better prepared in the environment than many other companies out there in food and we prefer danon in the food

space. we think the selloff in nestle is an opportunity to look at this one which is a quality stock. we are talking about 7% organic sales growth last year which is among best in class in the food space. there are prooblems, but it will come back in the section six months. >> one factor you have not mentioned, jon, is the anti-obesity drugs is that eating into nestle and danon's business here? people will be eating less as they take the drugs. is there anything that the two companies can do specifically to ride on that wave? >> actually, we think danon is one of the best picks in terms of the possible benefit from glp-1 and obesity drugs with the

protein-based products the world's biggest yogurt producer and a lot of movement to protein-based products. if you are a glp-1 user, the doctor is telling you to eat more protein as you cut back on carbs and fat. danon will benefit from the trend. nestle is nuanced. over half of the portfolio is coffee, pet care and nutrition that is not going to be consumed less as a result of glp-1. mark schneider saying they thought they had a lot of products useful for people losing weight. they have protein products and vitamins and supplements i think they will be okay as well clearly, it has spooked the market if you know the advantage glp user is cutting calories by 20% or 30% in north america and half

the u.s. population is taking this medication which is far fetched, you see it will have an impact on the overall packaged food industry in the u.s of course, glp-1 is likely to spread into europe and also the developing world if prices of these drugs come down. clearly, there will be some impact on the food sector overall. as i said, i think danon could benefit. i think nestle is well placed. of course, if you are a shop manufacturer, this is where you see more of an impact. >> can i ask about the different type of consumer spending with luxury we heard people are cutting back on non-essentials. what is the impact on the post-pandemic boom with the luxury spending in

is it the top range of customers that will do best in 2024 in your view? >> there are a lot of things gone on in consumer. you have the reopening and big boom in travel and in luxury goods. that is clearly slowed down. incidentally, travel is not slowing down it is something to keep an eye on it seems consumers, wherever they are and what they want to do is travel this is one of the things that watches of switzerland was talking about with the profit warning. people want to travel rather than buy watches overall, we think that luxury goods on the longer term is fantastic sectors with the high barriers on entry. people are only growing we wealthier. this year is tricky. we upgraded the sector with our strategy team. the multiples are pretty low it is a tricky q1 and q2

the comparables are difficult. as we go through the year, the economy is not falling off the cliff. high net worth individuals make up to 50% of luxury good purchases. these guys are not impacted by what is happening on the macro economic front they are impacted more by real health effect. i heard you speaking earlier about record high levels in tech stocks in the u.s. property prices remain strong. the wealth effects mean the environment is not so bad for luxury goods in terms of picks, we like hermes and best in class and long waiting list for the products we have seen double digit growth for q4 compared to declines for the other players in the luxury good space richemont is another one we like

appealing to the high net-worth individuals. that doesn't seem to be slowing down double digit growth in jewelry in q4 compared to declines where we saw for unbranded jewelry or weakness in watches of switzerland. it is really a bifurcation of the space. >> jon cox, head of equities at kepler moving on, more earnings coming your way. surging 49% which is coming in full-year expectations for accor. the hotel group which operates 23% room per rate and will benefit from international events this year

the cfo told cnbc the hotel group saw a rebound in key areas. >> we saw corporate travel bouncing back. assuming what we hear from clients is they intend to increase travel spend in 2024. as you mentioned, finally, the last one is, indeed, some supportive events in europe and accor is a leader in europe. the olympic games as well as the euro cup in germany. all in all, a number of factors support demand more on the mid-term perspective and some events benefit 2024. coming up on the show, fed minutes show officials worry about cutting rates too early. we'll have more next why choose a sleep number smart bed? can it keep me warm when i'm cold? wait, no, i'm always hot.

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strengths and blowout nvidia numbers. the chip sector feeling the love this morning in europe as well the ftse 100 is hanging on to the flat line. the smi is under performing because of the heavyweight nestle as we discussed with jon cox here it is under performing on the back of the earnings dax is up more than 1% we saw mercedes coming out with strong numbers much of the market action in europe driven by earnings and nvidia i want to show you what is happening in the currency space. remember, we had the flash pmi out in february which were mixed. the german numbers underwhelming the french numbers euro/dollar up 0.3%. we are on balance seeing a dollar weakness coming through with the risk-on sentiment throughout the world also i want to draw attention to

what cable is doing. 126.71 that is off the highs of the session as we got the uk pmi numbers. composite number is a nine-month high let's switch to the bond markets and we have seen eurozone yields rising on the back of the pmi numbers. take a look at the ten-year german yield close to the 2.5% level. now sitting at 2.45% the ten-year gilt yield after the pmi numbers at 4.1%. when it comes to the treasuries, i want to show you we did see a three-month high for the long end in yesterday's training session this was related to the fmoc minutes we got out yesterday let's stay with those minutes. those minutes from the federal reserve policy meeting show most officials are concerned about inflation turning hotter and

fear cutting interest rates too soon most participants saw risks to moving too quickly and a couple committee members expressed caution over restrictive rates the chance of the may rate cut now stands at 32%, the lowest probability so far this year, with more people confident that rate cuts will begin in june and july it's got a guest with me to review the numbers here. thank you so much for taking the time the really fascinating thing about the market right now is market expectations for cuts this year from the fed are fully in line with what the fed is forecasting. do you get the sense that once we see more data coming through over the next couple months, whether it is cpi or ppi orp

eor even the deflator, do you think reaction is more muted if we see a big miss >> i think if you look to where we started the year or how we ended last year, the market reaction was trying to fight the fed and wherever the data is coming from. the inflation is coming down and therefore they will cut soon and it will be priced pretty high. then where we are now, because the market is holding up so strong and inflation is also coming down, it is showing some resilience in the areas especially in labor market i think while we get to the market, it is not fighting with the fed so much. how will that translate into the coming months with the earnings season with the positive outcomes means the economy is

holding up strong from the u.s i think we are all going to see unless a massive data blip, we will probably see a bit less volatility in the pricing of the assets it will be more in line with fed projection >> let's face it though, the fmoc minutes or fed speakers or anything from the fed in terms of monetary policy is not the biggest game in town any more. it lost its crown moving the markets to one stock to nvidia >> yes. >> agree or disagree >> from the equity market point of view, i agree 100%. the fed minutes influences our book importantly bond prices influence the yields with the broader value stocks. it is a circle in a way. correct. if anything, we only can

continue the data talking about nvidia or japan for that matter. there are some nice and interesting news coming into the market >> we will get to japan in a second i want to stay with chips for a moment obviously, there is no way around nvidia. hopefully everyone is invested today because it will be a pretty good day if you are long in the market. if we look at pre-market indications, the stock could be rising by 10%. that's what it did after hours there is a.i. chips and then the rest of the chip sector. that really is a bifurcated story. we are seeing a slowdown with the industrial chip sectors and consumer chips it is not a clear-cut story. >> true. it is not only chips in general overall in the industry. if you are looking to the growth which is coming from a.i. and then you are looking to the chip sector and it is coming from

a.i. nvidia results showed it is not just the chips they produce, but they also are enjoying the price making capability on the data warehouse areas. i think nvidia is a particularly unique case in my opinion. >> what about japan? we saw the market hitting another record high overnight. it all has to do with the yen weakness everyone is waiting for the boj to move and to appreciate. we thought it would happen at these levels at 150. is it not? >> maybe i will take your japan question in a more broader picture because our call on japan, and i'm glad and i exchanged messages with the global cio today we were talking about japan. it was our title since last year the may call for the yen being weak is not hurting japan as some people expected because it

is effectively helping the exports and the economy to have a stronger outcome. >> thank you for that. head of investment solutions for u.s. deutsche bank that is it for the show. quick look at u.s. equities. we are expecting rises at the start of the trading session in a couple hours time. s&p is set to rise by 55 points. dow jones industrial average up 88 nasdaq is 353 points that is the expected upside. it is all about nvidia today enjoy the day. that is if you are long in the market that's it for today's show i'm carolin roth "worldwide exchange" is up next. see you tomorrow it's hard to run a business on your own. make it easier on yourself. with shopify, you have everything you need to sell online and in person. you can have your inventory,

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it is 5:00 a.m. here at cnbc global headquarters and here is your "five@5." we start with the a.i. tipping point. nvidia shares surging in the pre-market after the earnings report that blew past estimates and forecasted for more growth. chip stocks rallying on the back of nvidia the sector surge helping to push japan's nikkei to a record close. and the rising tide here in the u.s. with the stock futures surging ahead of the open with tech in the driver's seat. no