it is 5:00 a.m. at cnbc global headquarter, 10:00 a.m. here in london. i'm frank holland. here's your "five@5." turning down the global market. this is ahead of u.s. inflation and new geopolitical unknowns out of the middle east. stock futures, they're trying to hold onto some gains. >> call it confidence crisis. fed chair jerome powell repeating his message to the markets that the central bank will maintain its current level of restriction until it sees a significant shift in consumer prices. shares of united, they're

taking off, shares coming in far higher than analyst estimates. and the whistle blowing hearing regarding boeing. and president biden ramping up tariffs on key chinese imports. it's wednesday, april 17th, 2024, and you are watching "worldwide exchange" right here on cnbc. ♪ good morning. welcome to "worldwide exchange." we're coming to you live from cbc london. thanks so much for being here with us. let's kick off this hour with a check of u.s. stock futures as we always do after a mixed session yesterday that saw the dow snap a six-session losing streak while the nasdaq and s&p close lower. looks like we're on pace for a rebound here in the u.s. looks like the dow would open up

100 points higher here in the early trade. we're also looking at the bond market after a 2-year note. it briefly topped 5% yesterday. that's the highest since april. it's yielding back quite a bit. 4 pnlts 95. still at its highest level since november. looking at the 10-year at 4.64. commodities gold continues to shine coming off of its 20th record close to the year. looking at gold right now, just flat this morning, but as you can see, up 16% year to date. we're also watching bitcoin holding below the $65,000 mark as investors await the event. it's called the halving which occurs every five years. taking a look at bitcoin, it trades around the clock. 49% on the year. what's likely to be a big money mover, united airlines taking off after it issued a current earnings forecast that came in

well ahead of analysts' estimates and slashing its aircraft deliveries for this year due to boeing's quality crisis. taking a look at shares of united this morning, up almost 5% this year. a being jump for that stock. we'll have much more on this and the transport sector as a whole. that's coming up abit later in the hour. first we want to see how europe is shaping up as trading gets underway. silvia amaro with me here. >> at this stage we have the major boerses trading in the green. that's a different narrative from yesterday when the stoxx 600 ended the session down by about 1.5%. there's a lot on the minds of the investors. today the focus seems to be more on the factor. we're hearing from several corporates, but also on top of that, investors seem to be digesting some of the commentary from central bank policy makers. i would highlight the ftse 100.

up almost 0.5%. this is after we heard new cpi data out of the united kingdom that showed any improvement in cpi numbers. i want to take you to one of the corporate zoirs. that's amamsl. it expects a worse than expected first quarter. we have shares of amsl down by about 4.2%. also if you look, however, their performance over the last year, shares are significantly higher, up by almost 45%. but nonetheless, this is also keeping with -- pushing some momentum across the sector. if we take a look at some of the other peers, you can see it's a bit of a mixed picture. as i mentioned, the news from asml is putting some pressure into chipmakers.

let's see what we hear from the company and how this can actually impact the broader sector, frank. >> we continue to watch the broader sector in not only tech, but how european stoxx, they influence u.s. stocks. we heard jim cramer say the open in europe influences the futures in the market. we'll see if that correlation continues. that ing you very much. turning now to washington and a news alert from the white house. the biden administration is directing its trade office to consider tripping tariffs on imports from the chinese of alu aluminum, moving it up to 25%. they're working on the mexican government to circumvent tariffs by importing metals to the u.s. through mexico. he will lay out his actions in a speed this afternoon. right now looking at steel prices, they're moving up just about 1%. turning our attention back over to wall street, fed chairman jay powell's first

comments. powell's word of the day, it appears to be "confidence." >> we have said that we'll need greater confidence. inflation has to move closer to 2%. it has not given us greater confidence and instead it's taking slightly longer than expected to achieve that confidence. >> and joning me now is ivory johnson, founder of wealth management and a member of the cnbc advisory council. good morning. i'm going to jump right into it. surprising that the futures are moving higher despite the comments from jay powell. >> i think the markets are adjusting due to fact we have higher for longer. it's going to take a while to wreck news the punch bowl has been taken away. don't forget that when cpi came in lower in november, we noticed the rate cut expectations went through the roof. we thought we were going to get seven rate cuts this year, three

before the july meeting, and what's since happened, we realized that's not going to come to fruition. in fact, we've otactually had re hikes we ended up at 3.8%. but now it's back at 4.67%. that's what the mortgage rates are based on. not only did we not get a rate cut, we got a rate hike. it's go doing take the market a second to understand the new reality before we get back to normal. >> don't you think the market understands? we continue to hear people pare back. it's moved up since the last cpi. the market seems to have expected that inflation is going to be here for a longer time than we previously thought it was. why are we seeing a rebounding when it's most certain will i going to push out the rate cuts?

>> the u.s. economy, if you listen to the imf, it's growing at twice the rate of any g7 economy. th that's a positive. as the wealth market goes up from last year, people are more likely to spend more money. don't forget we had negative net income growth and negative earnings growth in both the s&p every quarter. so our base effects are going to be easy obstacles. >> all right. important note, the imf said there were challenges ahead. one of them was the rising debt. it's increasing by 1 trillion dollars. i want to move on to what you're bullish about. right now it's commodities. right now you think it's time to invest in gold, copper, other commodities. why do you think there's more room to run? >> again, we've got a resur gene in growth. like you mentioned, the market's

telling us we've got inflation. it's factor exposure. if you noticed the risk to the market should be higher inflation, you should own that. and so i think that going forward, i'm not so much concerned about what's happening in the middle east. i'm hoping we don't get a further escalation in the war, but i just think that the growth and -- look it. pci -- pmi for global manufacturing, right, it collapsed in 2022. it was decidedly negative all year. now it ee up over 50. global manufacturing is actually starting to accelerate. that's showing you we've got more growth globally. >> not worried that higher oil prices are going to weigh on industrial production? we've got a report in the u.s. we eesk got to go. not worried about the higher oil prices dampening the rise in industrial production? >> no. it's not going to accelerate it, but, again, if you're going to have higher oil prices, right? own it. if that's the risk to the market

-- >> all right, there we go. >> own inflation. >> you did say now is the time to buy commodities. ivory johnson. for much more head over to cnbc pro at cnbc.com/cnbc pro. we head over to kristina partsinevelos. >> earlier boeing sounded the alarm for the questionable practices for the boeing 787 dreamliner jet. the whistle-blower raised concerns to his superiors about a number of issues including a gap to a part of the fuselage. listen. >> should boeing ground the 787 to check the gap sizes? >> i would say they need to. >> the entire fleet worldwide. >> the entire fleet worldwide as

far as i'm concerned right now is they need attention. you need to check your gaps, make sure you don't have potential for premature failing. >> boeing has insisted 787 is safe and shows zero signs of fatigue and the planes have been stress-tested and the dreamliner is safe. they intended to lay out in detail its manufacturing process to refute the allegations. tim cook is traveling in jakarta today. his company will look at building a manufacturing company in indonesia after meeting with its president. since 2018 it's been setting up app developer academies. this is cook's latest leg of his tour after visiting vietnam earlier this week. video game company taketwo plans to cut jobs and cancel games. it's expected to save the company about $165 million a

year and is also tasked with finding, quote, efficiencies across its business. efficiencies still the relevant world for many companies, frank. >> right. you know what the other relevant word is? grand theft auto sales. i'm waiting for that to come out. are you a gamer? >> no, not at all. tetris back in the day. >> i love 2 k. >> 2 k? >> yeah. i digress. >> i didn't even know. >> a lot more to come here on "worldwide exchange" including one word that investors have to know today, but first u.s. lawmakers are reaching across the aisle in a bid to pass a bill to regulate a critical part of the cryptocurrency market. we have a live report from d.c. coming up next. plus geopolitical uncertainty weighing on the global luxury market and lvmh. and later, a meme stock with

a one-day gain and possibly even more today. we have a very busy hour city still ahead when "worldwide exchange" returns. stay with us. my family is sacred to me. it truly is all that matters. i was on a work trip when the pulmonary embolism happened. but because i had the factor 5, which showed i had the genetic mutation, because i was aware of that gene, that saved my life. i would not have been able to meet my new granddaughter. i truly believe i'm here because of 23andme. were you worried the wedding would be too much? nahhhh... (inner monologue) another destination wedding?? why can't they use my backyard!!

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visit feedingamerica.org/actnow welcome back to "worldwide exchange." lawmakers are reaching across the aisle to look at regulating crypto. emily wilkins joins us now from

washington with much more on these latest efforts. good morning from london. this time the effort's from the senate. >> reporter: absolutely, frank. bipartisan agreement is coming out. they're basically creating a framework for stablecoin that widely mirrors the current banking subpoena. the proposal would include a couple of things including having federal and state regimes. it also ties stablecoins to the u.s. dollar and ensures they're fully backed by reserve assets and they would be designed to take their coin through algorithm method. it would provide a way for those who hold stablecoin to get their money back in case the issuer fails. loomis says it's important to make sure the u.s. doesn't fall behind on digital security.

she said in order to meet the growing demand of our ever-evolving financial industry, we need to craft legislation that strikes a careful balance of establishing a clear and workable framework for stablecoin while protecting consumers. this bill isn't exactly the same as a house bill that passed last year, but they hope it could be reconciled if they're both able to pass their respective chambers. but while passage or vote isn't a given at this point, it represents a step forward in lawmakers making a regulatory progression on stablecoin and this come as janet yellen and jerome powell have called to stabilize the stablecoin. frank, at this point, the lawmakers feel they have a very solid product going forward. >> all right. so, emily, a few questions here. investors involved with crypto

and etfs. what are the odds of this passing and why the focus on stablecoins and the al go rhythmic passage of stablecoins? >> obviously there are so many competing priorities, i thinks to get done. but you did hear banking chairman brown saying he would be open to having a stablecoin bill passed through the banking committee and taking it up. at least there's a show of interest in that. we know that this is something particularly in the house where there's also been some interest in trying to get that bill done. even if they don't wind up crossing the finish line, you can always reintroduce them next congress, continue to educate it, and as we're seeing the market heat up, that's something lawmakers could consider doing. lawmakers, when it comes to the wide world of crypto, they feel

secure, but that it's pegged to the u.s. dollar and currency. that's why you're seeing the focus on stablecoin and getting something across the finish line maybe before you go ahead and tackle crypto. >> all right. emily wilkins, always good to see you. thank you. coming up here on "worldwide exchange," the sector that just can't seem to catch a break. we're going to dig into transports and what if anything can break it out of its 2024 funk. we're back right after this break.

welcome back to "worldwide exchange." you can see shares are up 42%. sales fell 6% in china, excluding japan, however, europe and the u.s., those sales rose 2%. the geopolitical and economic environmental remains uncertain. joining me now to discuss lvmh and the luxury sector is invest mrnlt partner and portfolio manager. he runs the firm's luxury etf which has lvmh's top holding. good morning. i'm going to jump right into it. the stock is still up 4%. what do you think investors are seeing in this report? zbhood morning, frank. thanks for having me.

i think there's a lot of fear that things could have been a lot worse, especially since throughout q1 we're saying some weakening of data. also we have the profit warning. this is coming in just a touch below what the skpcations and consensus have been. it gives us a sense of relief. >> you know, you're setting the kcare kering profit warning. that's the company that makes the gucci brand. one of the bigger profit margins is wine and spirits. do you think it's soft when it comes to handbags and watches? >> yes. the current condition which is a big profit contributor in that division has suffered from very big reductions especially in the

u.s. where we saw increases by stock distributors through the pandemic. i think we've been through around 12 months of us quite significantly stocking. so that's a very specific situation that we're seeing there in the industry compared to handbags, which are seeing a slowdown themselves. but i think they're not suffering from the same level of destocking that we've seen in spirits and wine division that one of the bright spots was travel retail, consumers in china spending in europe and also the united states, of course. for the broader luxury sector, is that going to continue to power sales growth and in companies where they're are seeing sales growth? >> yes, absolutely. i think we continue to see travel, international travel increase. we're now back to the -- not bao

the pre-covid, 2019 levels yet and we're certainly not back to the travel by chinese. we expect that to continue to improve going forward. >> we had a guest here in europe on our show "street signs" that said right now investors are viewing the luxury sector like this. it's either absolute luxury or nothing. in your mouhamed, are you hearing that? does that explain some of the performance we're seeing by companies like ferrari or hermes that are seeing things at the highest level of the luxury segment? >> yes. when you're going through recessionary periods or more difficult economic periods for consumers, you tend to have a more resilience regarding the high-worth individuals who tend to shop this product, right? they're more the aspirational

consumer. so i would identify with those comments. what i would say, though, the sector is currently going through a slowdown clearly. 2024 is going to be -- especially the first half -- a difficult period because of the high base. i think investors in this sbas are trying to decide whether the 2024 will be a soft landing rather than a hard landing. obviously today's lvmh results are speaking in favor of the narrative of the soft landing, which in itself helps gain confidence that we might be at the bottom -- close to the bottom in terms of the standards. >> okay. javier, it sounds like you're saying cognac and handbags are an economic indicator. thank you very much. as we head to break, we're watching shares of adidas. they're popping this morning after unexpectedly raising their 2024 outlook. the company now expects

four-year profit to hit 47 mull d million after over 50 million. we're back after this break. my family is sacred to me. it truly is all that matters. i was on a work trip when the pulmonary embolism happened. but because i had the factor 5, which showed i had the genetic mutation, because i was aware of that gene, that saved my life. i would not have been able

to meet my new granddaughter. i truly believe i'm here because of 23andme.

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rate policy. transports drag. we dig into the potential signals. that sector could be sending something about the broader economy. and the slump for former president trump's media company, it continues despite a new plan to excite investors. it's wednesday, april 17th, 2024, and you're watching "worldwide exchange" right here on cnbc. ♪ and welcome back to "worldwide exchange." i'm frank holland coming to you from cnbc london. let's pick up the half hour with the futures on the market. the s&p and the nasdaq, their skid extending to 3. take a look at the futures. green across the board. looks like the dow would open almost 125 points higher, the s&p up to almost a quarter of 1%. fed chair jerome powell

speaking saying there's been a lack of progress this year when it. cos to inflation, really stressing the central bank is okay with keeping the policy the way it is, at least for now. >> if higher inflation does persist, we can maintain the current level of restriction for as long as needed. at the same time, we have significant room to ease should the labor market weaken. >> on the back of those comments, we want to take a look at the bond market. the 2-year note surpassed its level yesterday, the highest since april. take a look at the bench mac, 4.64. it's moved up. we're going to continue to watch yields and talk about them in our market discussions. we're also looking at oil as ongoing tensions in the middle east increase. wti, the u.s. benchmark, down over half a percent, trading at just about 0.80.

brent crude down about a-ha of a percent. bitcoin is holding just below $65,000 ads investors await an event called the halving that occurs every four years. it's to avoid the oversupply of bitcoin in the market. 's trading at about 63, 530. remember, crypto currency trades a under the clock, and year to date, you see bitcoin up over 49%. a big part of the market's recent downturn, the dow's transports, currently below their 50-day and 250-day moving averages. jb hunt reported lower profit and revenue from weaker demand. the company says the declines came from lower volumes and yield pressures. a number of issues there including insurance claims as well. so far this year, jb hunt, it's been underperforming. dow transports as well as other

transportation companies like cfx close. joining me now to discuss this is ken hoexter at bank of america securities. good morning from london. it ee really good to see you. a lot of people see jb hunt as a bellwether of consumer doemand. that came in 8% below estimates. do you agree with that idea that this is a read on consumer spending and consumer demand? >> good morning, frank. thanks for having me. you know, i think jb hunt, which moves most of its products as i mentioned in boxes, but domestic containers really is a good read on the domestic economy as you talk about. intermodal, really, the key here was volumes were flat, pricing was down. this is what we're talking about, this elongated recession we're in. we talked about this in our survey we do every two weeks. demand has remained at or be low

freight recession levels now like i said going all the way back to february of last year. the demand remains weak and we're not seeing it break out. that exemplifies spot pricing where pricing is remaining really historically low levels. i agree with you it's certainly sending the picture. first quarter, we're expecting it to be weak. it was weaker than expected just given those results. >> i think we're seeing that. jb hunt shares down more than 6%. you mentioned some of the weakness in spot pricing and truck pricing. prices are going down. is that a read into what we expect from cfx? because when truck prices are lower, it gives a lot of competition to rail companies. >> certainly it's a great example. trucking moves about 70% of all freight tonnage in the u.s. represents 80% of all dollars spent in the u.s. on transportation. so certainly whatever's going on in the trucking market spills into other markets. hour, the rails for the second quarter in a row after having

led in some of the early cyclicals and seeing negative freight volumes are posting their second consecutive order of positive volumes year over year. a little bit doesn't than what we're seeing in the trucks. a little bit different than jb hunt saw at intermodal where volumes are flat. here volumes are up. for csx, that should be a good start. particularly for export coal, which is a different subset of the market, but it ee seeing some weaker global pricing that could impact their overall pricing. >> yeah, you know, that rise of coal demand, especially for export, has been something that's been a big boost for csx, specifically because it works on the east coast. since the report came in hotter than expected, transport is down 4.5%. we see it as a read on the overall economy. the fact that we're not getting

rate cuts as we had expected, what does that mean for transports in the second half of the year? >> yeah. it's certainly sending the signal we need to be more cautious. i mentioned it before. shippers are seeing -- struggling to see an outlook that is improving at a great extent. we've been talking about it hitting this 54 level, which is the average of the last three freight recessions we saw in 2012, 2015, 2019. it's struggling to break out. so shippers aren't seeing a brighter outlook, which is constraining that demand. as you mentioned, transports being early cyclical, it's going to restrain their ability to move out until we see the demand level brate out. >> we don't generally lump into the transports. the airlines. united airlines out with a forecast that's got people pretty excited. what do you say about that ?

>> i'll plead the fifth. i'll let my partner handle that. the demand on the freight side remains fairly weak, and that's controlling your outlook overall on the transports currently is trending toward. >> we don't want to take you out of your wheelhouse, but investors are speaking about it. airline shares up 5.5%. thanks for your insight. for more on the transports and airlines, don't miss the interview with scott kirby of united airlines today at 8:00 a.m. on cnbc. >> let's look at your big "money movers." kristina partsinevelos is back with more. >> good morning again. once again, the company is still dealing with an internal financial investigation which it doesn't expect to impact any previous earnings reports. shares are down le%. underperforming the broader tech picture. >> amc had its best day since

february, snapping a four-day losing streak. while the move was not tied to anything in particular, stock was up 16%. now down more than 90% from its all-time high. the market cap is just a little over $5 million. and trump media trying to reclaim some of its losses this morning after falling another 14% yesterday. the decline comes despite truth social's newly announced plans for a live streaming tv network. shares are down 50% since last month. frank? >> all right, kristina, thank you very much. we want to turn your attention to a the news alert right now. we have reports of a magnitude 5.1 earthquake hitting close to taiwan, this coming after that 7.1 hit the island earlier this month. the quake temporarily pausing

chip-making. that includes ttmec. i it follows the largest one earlier this month. using tech to target wealthy taxpayers. how some states are leaning on artificial intelligence to help replenish revenue shortfalls. but first some of your top trending stories, and it's not just your taxes, of course. the ai can help pick out your music. amazon is offering an ai-generated playlist like crying and eating and receive a list of songs to match. that's an interesting idea there. a slam dunk for the wnba draft bringing in a 300% increase compared to last year. the last record was back in

2004. that was diana ter rocy's draft year. she was such a star. jpmorgan taking the crown as the best company the work for in the u.s. that's according to a list from linked in which takes gender diversity, upscaling, and frequency of promotions into consideration. amazon, and others marroundt the top five. we're coming back after this break.

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welcome back to "worldwide exchange." we start with royal caribbeanian. mizuho says the mix of quality ship assets and destinations should help. jefferies is cutting its price target to 32 a share. all of its brands appears to be vulnerable. barclays is cutting tesla's price target. it is will say facing deeply challenged near fundamentals with expectations for a q1 muss on soft margins. >> turning our attention to artificial intelligence, a number of states are increasingly looking to tap into its potential, especially when it comes to going after wealthy tax evaders.

our robert frank joins us with more on how they plan to do that. good morning. >> tax day may be over but audits for high earnings is growing fast. states like new york and california have been sending hundreds of thousands of audit letters to top earnings. there were 771 aud itses in 202 2. that is up 56% from the previous year. accountants and tax lawyers say audits have increased dramatically in the past six months. states had to cut their budget staff for reasons but they're doing more audits through ai. they're looking for patterns with high earnings who may be underpaying or even underreporting income. the big focus is high earnings who move to other states during covid. tax authorities are challenging many of those moves saying those moves weren't permanent and those folks still owe their state taxes. another target is remote workers.

no, is going after workers who technically report to a new york office or new york headquarters, but they live and work entirely in a different state. california's deficit is now $38 billion. new york's deficit expected to hit $10 billion. they need the money. and just like willie sutton, they're going after those who have the money, and that is those high-income taxpayers. >> so, robert, you're mostly focused on the story of states. what about on a federal level? are we like willy to see more irs audits as well? >> absolutely. you're seeing it from the state side and a massive increase on the federal side. that i have $80 billion in new funding from congress. a lot of that money is going toward enforcement, and most of that is for those who earn $400,000 or more. so those rates for high earnings could neil double in the coming

years as the irs hires more staff and increases enforcement. if you're a top earner between living in a high-tech state where those states are coming after you and the irs, your chances of being audited in the next year or two increases dramatically. >> our roberts frank. great to see you. thank you very much. turning now to our global briefing, with start with morgan stanley cutting at least 50 investment banking jobs in asia in response to the ongoing slump in china. it's the biggest layoff in years after laying off people last year. it fell 12% in the first quarter. byd is out with three new premium cars. it plans to show cause the autos at the beijing auto show next week. the lineup includes a plug-in alternative with high horsepower. uk inflation falling 3.2% in march, narrowly missing

estimates. it with us offset by prices at the pump. investors pushing out their bang of england expectations in response, with the first coming in cement or november. interestingly enough, we had a guest in europe who believes they're going to do a cut at their next meeting. coming up here on "worldwide exchange," we have the one word every investor needs to note today, plus our next guest says the soft fed landing and the u.s. economy may no longer be on the table. be part of the changemakers. secretary gina rahman toe and actress drew barrymore are going to define how they view leadership. find out more at cnbc.com/changemakers. we're back in just a moment.

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kenzie's test and me being able to find out that i was brca positive was lifesaving. i've seen her take her health into her own hands, for herself and for us. i'm really proud of my mom. welcome back to "worldwide exchange." it's time for your w.e.x. wrap-up. the president promising to work with the mexican government to cut down on chinese attempts to circumvent tariffs by importing metals to the u.s. through me mexico. a boeing whistle-blower will testify after it's determined the 787 dreamliner is unsafe to dry. the whistle-blower doubling down

on his claim the plane could blow apart and drop to the ground mid-flight unless those issues are addressed. tim cook traveling to jakarta, looking to manufacture a building in indonesia. they currently have no manufacturing plants there but has been setting up academies. take-two is cutting jobs and canceling games to save $165 million a year. it's looking for efficiencies across the business and is trying to boost profit margins. the s.e.c. is blocking third-party text apps to promost recordkeeping and add to its security. it had to pay $3 billion after keeping work-related information on perm devices. asml sees 2024 as a

transition year with an increase. we get several key earnings reports from travelers. also a pair of fed speeches with speakers yet to speak. let's get a check of the futures. take a look at futures. we're seeing them hitting their highs. the dow looks like it would open 160 points higher, the nasdaq moving higher as well. for much more let's bring in patrick armstrong. patrick, you're right with me in london. it's great to have you here. how do you see today shaping up? we're seeing a rebound in the markets. what's your w.e.x. word of the day? >> premonetary. it's nervous expectation of what might happen. what investors are waiting for now is israel's reaction. they say there's going to be a response to iran. if it's relatively minor, it will set off a rally. if it's something of substance,

that's obviously going to be bad news. that's a bit of nervousness around that. >> i have to say, i'm a bit surprised to see things higher after jay powell's comments yesterday. i know we have some fed speakers talking later today, but jay powell said what he said. it was a very clear message. until we get this next pce report, what do you see happening? >> it's not an environmental where they're going to be automobile to do the june cut. if you look at the break-evenings, the 2-year started at 9%. we're at an environment where fed credibility will be tested if the fed cuts into high inflation, strong growth, i think they do miss losing creditability. i think what jay powell said last night makes perfect sense. >> what e h said makes sense, but how do the marjts respond until we get another inflation report that gives us a fairly

clear issue? >> a lot of geopolitical issues may crop up, but the market wasn't surprised by jay powell. i think the market figured it as jay powell had said. it doesn't make sense the june cut given where inflation is right now. >> right now we see two sectors, utilities and also real estate. in your mind, what does that signal? it feels like days ago. i was a couple of weeks ago. everybody is talking about this broadening of the market and now we're seeing contraction. >> two sectors are real estate and utilities. you've got inflation, you've got a fed that can't be cutting interest rate sensitivity. that's not what you want on your equity exposure. you want companies participating the growth, and real estate and utilities don't do that. >> again, your w.e.x. word of the day is "premonetary," waiting for something bad to happen. you seem to be a boxing fan. you gave us notes, an old mike

tyson quote. everybody is surprised until they get punched in the mouth. it had to be a bit of a surprise. what do you advise clients to do? >> i think you've got to have a plan to stuck to when you do get that pup. in the mouth. that's when it's difficult. have flexibility. everyone has a man to buy something. i've got strategies to shorten things. inflation's creeping up in japan. you want to have strategies that win from the bull market but protect yourself to give you the confidence to stay in that market when things do get a little bit tough. >> give us a couple of sectors you're advising clients to be in after this slight jab. >> the large cap tech are expensive companies, but they deserve the multiples they trade at. they've got monopoly or quasi

oligopoly positions. nvidia is a stock that's up massively year to date. it's 30 times earnings. that's fair for a dominant market position. i love defense companies, energy companies. they give you a. e owe political hedge against bad things that might happen. >> patrick armstrong, great to have you here in london. taking a look at the futures, pretty close to the highs. looks like the dow would open up about 50 points higher. that's going to do it for us. "squawk box" coming up next. thanks for watching. icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot.

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good morning. fed chair jay powell indicating that rates aren't coming down until inflation does. and speaker johnson hitting a roadblock from his own party. his effort to pass funding bills from us real and ukraine, now his speakership may very well be in jeopardy. and united airline, their shares are sharply high. they moved back plans to add to its fleet. it's wednesday, april 17th, 2024. "squawk box" begins right now. ♪

good morning and welcome to "squawk box" right here on c nbc. we're live at the nasdaq market site a at times square. . ooh here with melissa lee. becky and joe are off. nice to see you. >> nice to be here. >> s&p up. we're looking at 20 points higher. take a look at treasury yields. we're going to talk about jay powell's comments which moved the markets just yesterday. they moved them -- well, we'll talk about it. ten-year note, 4.639, the 2-year at 4.951. miss "fast money." >> we did go 5% on the 2-year briefly. >> we did briefly. >> yeah. >> there was a move. >> but now it's down a little bit.