it is 5:00 a.m. an cnbc global headquarters. i'm frank holland. here's your "five@5." investors await the march inflation report and read the tea leaves on what it could mean for the fed's next move. the one voting fed president who says he's already expecting just one rate cut by the central bank this year, but he's open to the possibility of none at all. we see performer fed vice chair roger ferguson. we get his take.

fitch downgrades its outlook to negative. plus apple hits an iphone production issue in india. and later, an investigation over the allegations against the dreamliner jet. it's april 10th, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ good morning. welcome to "worldwide exchange." thank you for being with us as always. we're going to take a look at the futures. we saw the s&p close lower for a seventh session in a row. that's the first time that's happened since january. the nasdaq and russell 2000, they're riding win streaks. we take a look at the futures. we're in the green across the board. the nasdaq would open up a

quarter of a percent higher and the dow would open up 70 points higher. we're checking out the march inflation report that's due out 8:30 a.m. eastern time. treasury yields trading higher. we're talking the yield on the 10-year. also looking at oil coming off back to back losing sessions. taking a look at oil first with wti, that's where we look at it here in the u.s. up just about half a percent. just over a third of a percent, trading at about 85.80 a barrel. brent crude up about a third of a percent. sylvia amaro is here with us. green across the board. >> that's right. we're seeing european stocks mostly higher in the session. i would high light they're the outperformer at the stage by almost 0.8 of a percent. we're seeing the cac in france

up. this is a totally different narrative from what we had yesterday in europe. overall, the stoxx 600 ended tuesday's session down by about 0.6% of a percent, but today the narrative is a lot different. having said that, the investors are awaiting the key ecb decision tomorrow. some positive trading results out of european countries are boosting some of these moves. when it comes to the sector breakdown, this is the picture at this stage. we have technology stocks outperforming by about 1.3%. here one of the drivers is really those positive results from tsmc earlier today that's boosting the overall sector. basic resources up by 1.2%. i also want to take it to oil and gas talks because those are also seeing relatively important moves off of the back of higher oil prices. but let's see all eyes at this stage are on the cpi print out of the united states. and then, of course, the

european central bank, frank. >> it's going to be a big market mover in the u.s. first we're going to switch gears. we're going to turn our attention to china and the developing story this morning as a major global ratings agency downgrades the outlook. our eunice yoon join us with much more on this story. eunice, good morning. >> reporter: hey, frank. fitch followed moodys by cutting china's long-term credit outlook, citing uncertain economic prospects. the aligency says the outlook revision reflects increasing risks to china's public finance outlook. they did maintain its a-plus rating for china, but it did forecast that the general government debt -- so this is for local as well as central -- would rise to 61.3% of gdp for

2024. this comele pairs to 56.1% in 2023, and they cited concernser fiscal support. now, china, as you could imagine, criticized this mood and hit back strongly, saying this with us a regrettable move by fitch and says this reflects the positive role of fiscal policies to support growth. they argued that china's debt is under control and that the 2024 target that china has set of around 5% growth is in line with reality. now, in terms of the impact on the markets, there wasn't a whole lot of a change with the 10-year sovereign bond yield. the yuan stayed relatively stable. local markets did fall. investors are very nervous about the outlook for the economy and don't feel very confident.

frank? >> i know you're talking to investors about not only the debt levels fitch is citing but other parts of the economy as china tries to move away from property-aligning growth. what are you hearing about the manufacturing growth? their efforts to ramp it up? >> reporter: absolutely. they're being pressured to pump out a whole lot of stuff to the world. in terms of the data, what we have seen is the january to february data when it comes to exports, manufacturing, even retail sales were improving a bit, consumer inflation looking a little bit better. that was one of the reasons why this fitch downgrade hit pretty hard locally because people are looking to next week. on april 16th, there's going to fw a q1 data. the hope is they'll see a turnaround here, but this latest

warning really just kind of rattled people here. >> again, fitch downgrades china's outlook. eunice yoon with the latest. i think it will be a busy day for you. thank you very much. turning our attention to our top corporate stories, our s silvana henao is back at cnbc headquarters with those. >> good morning. let's start with apple. bloomberg has reported they've assembled some $14 billion in iphones so far, now accounting for one in seven all new iphones globally. among the companies taking lead when it comes to indian iphone manufacturing, number one is foxconn assembly. about 67% of all indian made iphones followed by peg a tron and tega-owned.

tilray looks to extend a 20% decline. there was an unexpected loss for its most recent quarter and lowered its recent guidance. yesterday they put the job in lower territory for the year. atlanta fed president and fomc voting member raphael bostic is reiterating his call for just one interest rate cut this year, adding he's open to changing his view should the economic picture change as well. bostic says the enduring strength of the u.s. economy and labor market are just two reasons why less easing may be appropriate. and when asked about the possibility of no rate cut at all this year, bostic tells yahoo! quote, i do think the risks are balanced and given

that the u.s. economy has been so robust, i can't take off the possibility that the rate cuts may even have to move further out. >> we'll have a read on inflation later out today. >> yes. >> silvana, thank you very much. >> yes. bostic comments coming as we await march's cpi report. economists are expecting the headline figure to come in at 3.4% year over year, just slightly hotter than a month ago, and for core prices to cool just a bit to 3.7% year over year. according to the evaluations, the numbers, they are not likely falling any time soon. >> looking at the bond market, which, to me, is the best indicator of what investors think about expected inflation, and you look at the rate up from 3.88% to 3.55% to 4%, that

suggests to me investors in the bond market are expecting inflation to continue, to stay above 3%, no matter what the fed says about inflation. >> all right, joining me now to discuss is emma wall, head of research and analysis at har grievous lands down asset management. hello from london. i want to get to your expectations. what does that mean with the markets? >> we're pretty much in line with the consensus mostly do to energy prices coming in hotter than they have been previously. we do expect the downward trend to continue. inflation is what americans are experiencing day in, day out. that's something they'll be focused on. i'm not quite as pessimistic as some of your earlier guests. i do think we see rate cuts in

the skojts half of the year. but it's very telling. in december we were talking about seven rate cuts with the fed in 2024. now we're discussing the possibility of none. so it's a very different economic and fiscal picture than it was just a few months ago. >> yeah. what a turnaround. there was a discussion of possibly a hike. i think that rattled the markets just a bit. so when we talk about this cpi report, one of the things we have to focus is on is shelter inflation. what are some of the things when it comes to shelter inflation? >> when you have a look at the data, there are so many elements. some things are coming down. autos are coming down. airfares were higher last month. we're expecting it to come down. but shelter is sticky. we do expect that to continue. if you think about some of the drivers of inflation, we're talking about the health of the u.s. consumer, the health of

households. it's robust. the jobs numbers came in hotter last month. you have jobs, more consumers with more consumer spending. it means they can swallow the higher prices. so inflation definitely is sticky. i don't expect that the fed will veer from the course, however, it's giving a lot of forward guidance. it knows it's sticky. that is ooh why it's saying second half of the year rate cuts and the rate cuts we expect to be small rate cuts. that's the other thing that's key to this fed policy. >> okay. so you do believe we're going to see some rate cuts this year. i want to go to the equity market. when you're advising markets, you're saying the u.s. market is a number one reason. are there certain sectors you see as more favorable with still somewhat uncertain rate cut path forward? >> investor confidence in the u.s. is really high when we surveyed our clients last week and, in fact, is growing with

emerging markets. that's the case when we heard about fitch downgrading china. u.s. is the number one region for us, but it's not where we're seeing the greatest value. we're seeing much better value with where markets are trading in much lolonger-term averages. the u.s. should be the core of your poirtfolio, but you should be taking some gains. we think the uk, emerging markets, and values we haven't fixed. rates are high, but the trajectory is downward. if you're a more cautious investors bring in some fixtures into the portfolios. >> quick news. you said all the bad news in china is already priced in. not surprised at all by the downgrade from fitch? >> no. i think china has been so beaten up the last couple of years,

going back to the pandemic and the way that the government handled the opening up of the economy. if you just look at some quite high-quality companies, which, yes, there is a question of how the government interplays with the equity market there, we do think the bad news is prices in. so on a very long-term view, we're not seeing this as a one- or two-year play, we do see a positive to the chinese market. >> emily wall, we have to leave it there. for more on the cpi report and the trading day ahead head over to cnbc.com/profor insight and analysis. we'll have one word investors need to know. and coming up, roger ferguson, federal reserve former vice chairman. and one major breakdown and what could fuel its next move higher. and later, boeing facing

pressure over one of its most profitablelas. pne we're not talking the max kbcz. . we have a very busy day when "worldwide exchange" returns. stay tuned.

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ounce and up to almost 0.4%. silver hitting its highest level since june of 2021. aluminum getting a boost, up at 0.9% in the last month, hitting its highest since february of last year. copper is also having a big breakout, surging to its highest level in more than a year. our pippa stevens is joining us now with names to watch. good to see you. >> good morning, frank. copper is at the highest since january of 2023. according to wall street firms, the games could just be getting started. the copper supply crisis is here, the firm noting the metal is at the epicenter of energy transition and pointed to four factors that will point to prices. rebound in global economy and restocking and rate cuts, indicating that the mine

products is becoming an issue. meantime the second bull market of this century is taking a hold. the firm said the price rise could cost unhedged consumers, think automakers, developers, and power makers, up to $300 billion over the next three years. and strategas says southern copper, freeport-mcmoran, and teck resources are all favorites. bank of america upgraded their stock and minerals is at a two-year high. >> we've been talking more about copper in the past month or so than the whole time i've been at c cnbc. a lot of people talk about dr.

copper because it's using in housing. but what about demand when it comes to artificial intelligence and data centers? >> we're only four years -- four months, and it seems like ai is the investor of the year. now they're looking for secondary plays, and copper certainly is one. think about all of the grid infrastructure, all of the power infrastructure that's needed to support all of these data centers driven by gen ai, so according to morgan stanley, copper could see a 26% compound annual growth upgrade. that's big for a metal that's seen standard demand over the last decade or so. and with all the focus on the demand side, we cannot forget about the supply side because we've seen disruptions in places like panama. then when you talk about having to bring a new mine online, you're looking at about a 15-year time span. and so it's really hard to increase supply and just as the

demand was already being lifted by the energy transition, seemingly out of nowhere, we had this surge in data centers. frank, copper could be moving higher on this demand from all of these different verticals. >> copper is having a moment. copper up 11% year to date. pippa stevens, great reporting as always. coming up on "worldwide exchange," boeing's crisis deepens with new whistle-blower allegations over its 787 dreamliner jet. we'll have analysis on that and much, much more. stayitus wh . (grandpa vo) i'm the richest guy in the world. hi baby! (woman 1 vo) i have inherited the best traditions. (woman 2 vo) i have a great boss...

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welcome back to "worldwide exchange." we turn now to a developing story as we watch shares of boeing fall. david calhoun has been summoned to testify on capitol hill next week over the safety of his company's aircraft. this follows the whistle-blowing claims around the dreamliner who said they used short cuts. boeing denies the claim. in a staemt adding, quote, the claims are inaccution inaccurat because of the comprehensive

work done to ensure the quality and long-term safety of the aircraft. there are two issues with delta. strong guidance may be too much to ask. analysts say delta is a leader in international and corporate travel but restraints could weigh on kacapacity in the comi months. joining me now with her expectations is aerospace and defense analyst at jefferies. sheila, great to see you. >> good morning. thank you very much. let's start with delta. more than 20% upside on the stock. what are you seeing in the travel market that's giving you so much confidence. >> when we think about boeing, the pressuring capacity should be positive for the domestic airline industry. why is that? particularly on a 737, which is

used for domestic travel versus the 787 which is the wide body for international travel, boeing is about 100 aircraft short already in the u.s.domestic market to start the year as we originally anticipated they would pour into the market. it seems like 2.5% should be taken out. it's a 10% move in ebitda for these airlines. so significantly positive. and who would be the biggest beneficiary in our view? delta and american. why is that? unlike the u.s. -- >> let me jump in. you're saying it's going to lift pricing, something we continue to see in the airline industry. before you see at the bottom the

race for the premium seats. and if there are fewer planes, there's more of a battle for premium seats. >> exactly. if you're an airline that's not expecting a significant number of planes this year, that means you didn't prehire the pilots, the flight attendants, aed you're not carrying that extra cost on the balance sheet. >> this is not going to be a tailwind for boeing. what do you make of the whistle blowing allegations -- we know david calhoun is stepping down -- being called to capitol hill and some of the cultural production issues there? >> you look at who is the next ceo? how long will it take? how long is the stock in terms of ceo purgatory, and once that ceo comes in, clearly they're going to have a background focused on operations and that's going to be their biggest concern.

and how long is it going to take to turn things around? they should be close to 40. so we're at 50% lower output than we should be at. the biggest focus is the 737. the biggest blower of the 787 news does not have much detile to it. but 787 is producing at five a month. you know, it's just a much more aircraft. the 787 is experiencing some interior issues, but we don't see a major issue there right now. >> all right, so, sheila, next to you, we're showing a chart of boeingi idown 15% from last yea year to date. is all the bad news priced in? we just mentioned the whistle-blower allegations. are we seeing stocks lower or boeing at its bottom? >> we're seeing it at the bottom. why is that? we're going to see in q1 a 4.7

billion precash flow. they're going to have to meet their cash guidance for the year. we could see another cut to free cash flow. we're significantly lower than that at the moment on the street. we can see the numbers come down and the new ceo take some time to revamp what the production line looks like. it's at the lows. we think all the bad news is priced in. we don't expect any more bad news, but we could see a number of provisions. >> all right, again, boeing shares down more than 30% year to date. sheila kahyaoglu. great to see you. for much more on delta's quarter, be sure to catch phil lebeau's interview with delta ceo ed bastien. also jack ma takes a very rare step out of the shadows with new comments to the delight

of shareholders. we'll be right back with that and much more, stay with us.

her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for. it's just after 5:30 a.m. in new york and 10:30 in london. stocks look to grind out gains as investors prepare for the biggest gain of the week. futures are higher ahead of the open. ahead of that report, another fed voting member throwing cold water on hopes

around rate cuts this year. former fed vice chairman roger ferguson is here. he's going to tell us whether he's dialing back his expectations. and finding homes for vacant offices. how investors are trying to solve a completely different real estate problem. it's april 10th, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ welcome back to "worldwide exchange." i'm frank holland coming to you from cnbc london. let's get you ready for the trading day ahead. stocks are coming off kiengd of a bit of a mixed session. take a look right now. solidly in the green. looks like the dow would open up just about 40 points higher off of its highs earlier this morning. we're checking the bond market ahead of today's march inflation report. we're going to have much more on that. treasury yields trading at their highest level.

take a look at the bench market, 4.35. that's moved up about three basis points since march. we're also watching bitcoin and reports out of hong kong that they'll likely improve, launching sometime this month. bitcoin trades around the clock. we'll continue to watch throughout the show and see if we see any more movement in cryptocurrency. the big story today, investors preparing for the big event of the week, that report due out in just under three hours from now. it's expected to show the fed's fight against inflation is far from over. they expect to show a slight drop from february. it expects a tick up from 3.4% from the previous reading. the core figure likely showing just a slight drop. just above the fed's 2% target. atlanta fed's bostic is not

ruling out no cuts. let's bring in roger ferguson. you've got a long resume. hello from london. i'm going to jump in. what do you expect of the cpi report and the fed officials talking about possibly no cuts this year? >> look, i think i'm broadly in the consensus, but the main message from the cpi report is whatever it does, it's stilwell above the 2% target, and even if it comes down slightly, it's moving very slowly. so what do i make of the course of voices from the fed? i think they're seeing what we're seeing, which is they've always needed to be convinced that inflation's coming down. the last couple of reports cannot have increased their level of convention. so i think they're simply reporting what the facts tell them, which is they're not

there, even though they had a forecast. the economy may not be unfolding as they expected and consequently they and the markets should be dialing back expectations of cuts going forward. >> yeah. it seems voices like raphael bostic are signaling the market that they need to dial back the expectations. we often cover these inflation reports. i want to ask you, as we see a rise in commodities and rise in oil prices, that has a big impact on the economy. how does the fed view that? do they take that into consideration? >> look, i think they're trying to understand exactly what inflation dynamics are. yes, they've got to be recognizing that some of the inputs might be firming up. commodity's one of them. there's a market signal that's coming from the treasury market, which is suggesting higher interest rates as well and certainly no coming off of the boil, so to speak, coming off of the economy. they're looking at all the

signals to look at what happened in the past and try to figure out the future. that's another reason why i think you're getting some, you know, signals that maybe we should not be so certain about expectations because they're not so certain yet about inflation coming down. >> all right. roger, if you don't mind, i want to try to give the market some optimism. a monday ago there was a 60% chance of a quarter point cut in june. remember, we have another meeting before june. right now it's at a 50% chance. the market sees it as 50-50. is there an argument to see the cut happen in june despite some of the stronger economic reports we're seeing? is there also a concern if they don't cut, they might wait a little bit too long? >> look, i think they're worried about it. i think you heard a couple of them talking about the risk being much more balanced now, maybe evenly balanced. they certainly know there's a risk of keeping rates too high as inflation's coming down. but it is a balanced risk right now.

i think june is at best 50-50. if i wanted to give the market optimism, i think the optimism comes from the fact the underlying economy is very strong. consumers continue to be in good shape. the job market is continuing produce jobs and individuals are coming to take those jobs. so the optimism for the market should be, oh, maybe the economy doesn't need a boost of inflation -- of interest rate reductions because it's doing pretty well. >> so i want to get your perspective. you've been in the room when these decisions are getting made. when fed officials are talking about the possibility of no cuts, is it -- do they consider the fact that we may -- even though inflation is higher than expected, we may just be on that so-called path for a soft landing and maybe expectations need to change in the post-pandemic world. is that a conversation you think they may be having? >> look, i think there's a longer term conversation among the banks in the room and economists in the room about what the longer terms, so-called

neutral rate is, whether or not there are a number of factors that are going to allow the economy to function well and allow inflation to be well contained at interest rates that are higher than we had thought of originally. that's certainly one of the conversations. it's not one that's going to drive the decision-making here, but it's going to be one as they think about the framework, et cetera, that comes up. yep, that's certainly on people's minds. i don't think it's the short-term decision-making, however. as you suggest, whatever the forecast might be. >> so no chance they might ease off the idea of getting back to 2% inflation? i mean, one of the things that really sparks the inflation we saw were supply chain concerns and continuing consumer spending. people have not stopped spending by any means. >> i don't think they're going to step back off of the 2% inflation target at this moment. they've reiterated it several times. understand if they start to signal 2% is not the target,

they risk one of the things that's been helping them, which is so-called inflation expectations. inflation expectations by almost all measures are reasonably well anchored roughly around that 2% number, and that's one of the thanks that's really important for them. stepping back from the 2% target of this stage leaves people wondering what is the target? i think it's better to do what they're doing, reflect the data that comes in, show some nimbleness as need be, but don't change the target. that would be, i think, inappropriate. >> yeah. it's something that neel kashkari hit on is that if they change that target, they could possibly lose the confidence in the market and just the public in their decision-making. roger ferguson, it's always great to have you on a day like this. we appreciate your time and insight. coming up on "worldwide exchange," diana olick shows us how one big building in the big

apple can solve problems in the real estate sector. first, costco's most in demand product is getting more popular. the retailer is selling as much as $200 million in gold bars this month. yes, actual gold bars. costco saw sales in their debut in late august and november. my question is where do you put them? where do you put them? it's not just the cost of gold moving higher. the u.s. wants to raise the price of stapp. if approved, it would mark the fourth increase since the start of last year. the battle of the chicken sandwiches is back on. shake shack is throwing shade at chick-fil-a during its april and may promotion. it will offer chicken sandwiches seven days a week. chick-fil-a has been closed on sundays since its debut. i never ied trthe sandwiches, but if the war heats up, as a

journalist, i might have to give it a go. more "worldwide exchange" coming up next. what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com.

welcome back to "worldwide exchange." we start with morgan stanley hiking nvidia. it's the best way to get exposure to the ai theme. cuts for tesla. piper sandler cuts it 2.5 while

jeff jefferies is cutting theirs. barclays initiates chevron. it caused the energy giant compelling with above-average cash return and attractive valuation. turning to the real estate sector and continuing conversations around the slumping office market versus the ongoing shortage of residential spaces. developers there finding a solution to tackling the problem. die a know olynick and a rae developer making a big shift. >> reporter: good morning. i'm standing on top of pearl house, the largest office to apartment conversion to date. not every office building can be converted. in fact, just about 5% to 8% wide. this was an originally office building now a 30-story luxury

parent building. they purchased the building about a decade ago knowing that the single tenant would be moving out, leaving the building entirely vai can't. they could have bought it today at a much bigger discount, but the math still works. >> the way we look at it is how will institutional investors value and pay for an almost 600 unit market rate apartment building such as this, and it far screeds both the acquisition cost and the construction cost to converts it into multi-family. >> reporter: the biggest roadblock to conversions like this is zoning laws, what can or account no be converted depending on location and age of the building. then basics like most office windows don't open, but apartment windows must. these were replaced, but it can be a financial deal breaker. and you usually can't add to the building space. in this case, they carved out and closed off an interior section that was too far from windows anyway.

that i took that extra eligible space and added this amenities floor as well as those pricey penthouses up top, several stories of them. represents here to go from about $3,000 a month for a studio for up to $10,000 a month for those penthouses. frank? all right. it's time for your global briefing. we started the show with fitch downgrading china. they face economic setbacks amid rising government debt. fitch is looking at "i" large and diversified economy. shares of alibaba jumping. jack ma expressed his support of the company's restructuring efforts. he praises those who helped make alba be more customer focused.

it's been a rare view of ma who's been out of the limelight for the past few years. tsmc's quarter one revenue beats on ai boom. coming up on "worldwide exchange," the one word every investor needs to know today, plus the advice the next guest is offering on fed rate cut expectations and why we may not be out of the woods just yet when it comes to inflation. and coming up tomorrow, "cities of success: denver and bou boulder," that premieres on cnbc tomorrow. we'll be back in a moment.

welcome back to "worldwide exchange." it's time now for your w.e.x. wrap-up. apple has assembled $14.5 billion worth of phones in india. they're following amazon and microsoft's lead by skexpandingn florida. they have a smaller office area focusing on latin america and its ad business. microsoft and netease team

up again after their decade-long fallout last year. chinese ev stocks outpace tesla. this is over government initiatives around government loan rules. >> bytedance profit growing. this is the first time they've outperformed tencent in revenue and profit. shares of boeing are lower again as the faa investigates a new whistle blower claim. boeing says it's fully confident in the model and the accusations are inaccurate. ceo davidcalhoun has been asked to testify on capitol hill next week. here's what to watch, the big market event of the week at 8:30 a.m. eastern time and we get monthly figures and budget statements. delta reports on its quarterly

results. we hear from fed governor michelle bowman today. the markets, they've been inching along this week as investors just wait for today's cpi data, worried that inflation remains stubborn. the fed rates may cut once or twice, maybe not at all this year. joining us know kevin simpson. good morning from london. what are your expectations for cpi? how do you think it impacts the market? >> well, i think it's what the market has been waiting for. are we seeing a continued abatement of inflation? is it leveling out, or, god forbid, is it starting to resurge? that's the last thing we need is inflation to come back because it will affect the narrative in a negative way. we're hearing about only one rate cut, maybe zero rate cuts. i think that the market would like to see rate cuts and the fed would like to give us rate cuts. but as they've been telling us for years, they're going to

remain data dependent. somewhere around 3.7, 3.8. i think the market will like it. if it's too hot, i would expect continued volatility. >> you would expect continued volatility if it's just a bit too hot. at last report, it was like 0.1% too high. you're saying anything like that, we might see some volatility. i want to see how you see today shaping up. what's your w.e.x. word of the day? >> the w.e.x. word of the day is inflation. we want to keep it simple. i know we get ppi tomorrow, which we never used to really talk about, but it's a precursor for cpe. we're looking for data points, a narrative that's telling us that inflation is coming down. and it has, the fed raised rates a lot. there's a lag effect. so far, so good. but it's been sticky for a long time. maybe that last mile is going to be a challenge. but what the fed doesn't want to do and we should agree with this is we don't want them cutting rates too quickly just to fuel inflation. so it's a fine line.

is june still in play? probably. is it likely? i doubt it. we'll know a lot more today. one points we say every day, we need to make the market. but we need to see that trend continue and an abatement for sure, frank. >> if we see a downside, the markets s take a dip. you're specifically looking for a buy with stocks in a rally with commodities? >> yeah. we're seeing volatility as sort of a temper tantrum because we're not getting what we want out of the fed. we think commodities make a whole lot of sense. we own these. we're talking about adding to them on dips. but freeport, marathon, these are companies with low multiples, tons and tons of free capital. if you believe in the commodities trade, thee are names we feel could be very, very attractive. freeport in the same vein, it's

a little bit pricey here. it has to come down. it's been rallying on the enthusiasm of copper and that's a long, long-term trend. if you're looking for a space outside of mega tech, we think commodities make a whole lot of sense, and we will be adding on these names that we see in the medial future. all right. i know your pick today is amgen. we don't have time for that. kevin simpson, it's also great to see you. you say on the dips, you want to buy stocks, commodities. it looks like the dow would open 40 points higher, the s &p 500 slightly her. that's going to do it for us. "squawk box" coming up next. have a great day.

good morning, stock future predictions, and we're watching shares of boeing after the faa said it would investigate in whistle-blower claims. and earnings alert. delta airlines set to post this

hour. and we'll bring you an exclusive interview with ceo ed bastien. all of that and more. it's wednesday, april 10th, 2024, and "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" right here on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin. joe is out this week. we have been watchingthough. this is the big day. we've got cpi coming up. ahead of that, you're going to see the u.s. equity futures just a little bit higher this morning. dow futures are up by 7. the nasdaq is flat. marginal losses and declines for all the major averages the last couple of days. treasury market is where we've seen some action.