♪ >> it is 5:00 a.m. at cnbc global headquarters. i'm frank holland. here is your "five@5." wall street faces another round of record with the s&p and nasdaq once again touching fresh highs on a back of a cooler than expected inflation report. the future suggesting we may do it all over again today. investors also digesting the fed decision to hold rates and forecasting just one cut this year why our next guest says that cut could be coming sooner rather than later you have a jeff gundlach has real doubt that they will cut this year. tesla's shareholders casting

their ballots setting the fate of the massive pay package for elon musk. we'll speak to one major investor against that plan. and and a.i. enthusiasm for become you're watching "worldwide exchange" leer on cnbc ♪ good morning welcome tom "worldwide exchange." thanks so much for being with us, the day after the fed decision we'll get you ready for the trading day ahead. we'll kick off the hour to look at u.s. stock futures with the s&p and nasdaq once again hitting new highs on the back of the fed rate decision and core inflation report the s&p crossing above 5400 for the first time ever. take a look at the futures this is interesting. look at dow. it looks like it would open more han 100 points lower however, the nasdaq and s&p firmly in the green. the nasdaq getting a big boost

from broadcom and back to the fed. the fed holding on rates and for now at least forecasting just one cut this year. chair jerome powell saying the central bank is ready to act if the economic picture changes >> if the economy remains solid and inflation persists, we're prepared to maintain the current target range for the federal funds rate as long as appropriate. if the labor market were to weaken unexpectedly or fin flakes were to fall more quickly than anticipated, we're prepared to respond. >> we're also taking a look at the bond market's reaction to the fed decision and the powell presser, specifically the ten-year yield you can see here after the presser just ticked up a little bit. if you want to look at the fed impact on the market, specifically the bond mark, jocks report and big spike to the upside, ten basis points and then stayed at that level after the core expected cpi report again, a bit of an upturn after the fed signaled higher for longer that's your morning money setup. we'll turn back to the market

which is obviously influenced by the markets. despite the cpi report, many investors are still concerned about future data points double line capital ceo gundlach saying a weakening economy and changes in the labor market, they could shift the fed's rhetoric >> i think the rhetoric from the fed is going to change fairy dramatically between now and year end, because i don't think this data is going to be sideways to the extend that it has been i think the economy will be weakening. i think employment will go up to 4.4, and i think that's enough to change the way they are looking at things. >> joining me now the chief global strategist at principal asset management seema, good morning. good to see you. >> good morning. >> jeff gundlach went on to say that he believes the markets need one cut to keep things going. do you agree with him? >> we do think that there's going to be a cut this year. i think what we had from the dot

plot is a festival, floss hike on the agenda and are they still leading towards a rate cut k.do i think as the economic data unfolds and yesterday's cpi, there's going to be enough data evidence to convince them to cult i still think there's a chance to get a september cut but for that to be the case you need to see yesterday's print, really replicated over the next couple of months and need to see further signs of economic activity cooling. >> for context, cnbc fed watch showing a 356% chance of that cut coming in september. odds ticking up a bit from a week ago as we've seen the feds say higher for longer, investors, they team to return to the momentum train of big tech a note was put out yesterday highlighting nvidia saying nvidia has been 35% of the s&p gains this year and if it tanks or moves to the downside in any

way that would basically tank the s&p. i want to get your take on concentration risk is that something you think investors need to be concerned about? >> i think it's something that they need to watch because as said the max of it they are driving the performance of the equity market, but we don't want to exaggerate that too much. look, we are -- we do expect the big tech companies to continue to deliver we already have seen them deliver lofty expectations so that continues to go well, but other thing that we're seeing as long as the economic activity doesn't trent towards recession which seems very unlikely at this point you should see a continuation of this broadening of earnings growth to sectors beyond technology. we've already seen signs of it in the current and latest earnings season, and if that continues, then you should see the performance getting that much more consistent, stable and something a little bit more credible so the concentration risk becomes less an issue as you go through the year.

>> everybody keeps saying that we have a chart actually since the last fed decision on may 1st, looking at the s&p, the financials and industrials, those are cyclicals that are supposed to benefit from rate cuts potentially hurt if you have less rate cuts and they severely underperform. look at it the from may 1st up 7.5% and s&p and industrials up 1% everybody says the market is broadening but we haven't seen investors put the money in the other sectors. why would anybody -- i know you're talking about people with money in money markets, why would you take your money out of a money market and put it the in anything but tech right now? >> so we do believe that technology is going to continue to perform really, really well so it's not about taking money out of tech. it's more about thinking that all that cash you have sitting on the sidelines in money market funds, at some point they will reduce rates and not only attractive to be resting money in those places. investors do need to get a bit

ahead that have and think what can deliver next at these valuations i don't know that you want to increase investment into technology so they need to think what else there is other parts of the market are look very attractive and providing that the economy begins to perform solidly. actually that earnings growth should broten out and you should see some upside performance to those other sectors in companies. >> all right seema shah, great to see you as always thanks very much. time for a check on this morning's talk corporate stories. silvana henao is here with us. >> reporter: no violation by vogue in the 737 max the plane-maker was responding to the justice department's determination last month that the company had breached the 20921 agreement that protect it had from criminal charges over the 2018 and 2019 crashes.

boeing declining to comment on the matter to cnbc only saying it continues to engage transparently with the doj meanwhile, shares of broadcom taking off ahead of the open up nearly 14% in the pre-market after second quarter results beat on the top and bottom lines. the chip-maker raising its forecasts for sales this year to about $51 billion. also topping analyst estimates now broadcom also announcing a 10 for one stock split which will take effect on july 15. elon musk speaking out on the tesla shareholder vote to reapprove his pay package of up to $56 billion investors had until last night to cast their vote ahead of today's annual shareholder meeting. musk taking to his x platform to say that the resolution along with another matter we're passing by wide margins. frank. >> silvana, thanks very much and

for the audience coming up in the show much more on the pay package vote when we speak exclusively to the new york city comptroller and he'll explain why the fifth largest pension in the u.s. is voting against the plan more to come on the "worldwide exchange," but, first, much more on the fed's signal of just one cut for this year. why our next guest says he has little faith about the central bank being able to pull that off and president trump set to meet with some of the country's biggest business leaders and fellow republicans the big changes that could come to your taxes if he returns to the white house. and president biden in italy this morning meeting with fellow g7 leaders, and that's where we find the brilliant steve sedgwick with what leaders hope to accomplish at that summit steve, so good to see you. >> reporter: yeah, frank good to see you and the viewers as well. look, we're right at the heel of the boot that is italy as well and the g7 leaders are arriving here needing a win is that win going to come using russian assets to support the

ukrainian war effort we'll discuss on "worldwide exchange" when we return at least, not the way it could work. your people are buried in busy work. and you might be thinking... can ai make it all work? it can. on the servicenow platform, ai transforms your entire business. because when your people work better, everything works better. so, let's get to work. idris elba works here? wall street forecasts over mm-hmm.$100 billionper nice. in sales for weight loss drugs known as glp-1. even with unliked and inconvenient injections, dehydratech processing of a glp-1 drug demonstrated improved blood sugar reduction and reduced side effects. more human study results for lexarias patented oral delivery technology are coming soon. lexaria bioscience, transforming the future of glp-1 drug delivery.

norman, bad news... i never graduated lfrom med school.e, what? -but the good news is... xfinity mobile just got even better! now, you can automatically connect to wifi speeds up to a gig on the go. plus, buy one unlimited line and get one free for a year. i gotta get this deal... i know... faster wifi and savings? ...i don't want to miss that. that's amazing doc. mobile savings are calling. visit xfinitymobile.com to learn more. doc?

- after military service, you bring a lot back to civilian life. leadership skills. technical ability. and a drive to serve in new ways. syracuse university's d'aniello institute for veterans and military families has empowered more than 200,000 veterans to serve their communities and their careers. from professional certifications, to job training, to help navigating programs and services, we give veterans access to support from anywhere in the world. all right. welcome back to "worldwide exchange." take a look at futures right now. the dow looks like it would open 100 points lower the nasdaq and s&p firmly in the green. nasdaq spiking this morning following broadcom's earnings and the announcement it would do a ten for one stock split. international news, president biden is in italy for the g7 summit. the group of world leaders are confronting a number of issues

as home, even as they attempt to come up with solutions for many of the world's most pressing problems it's a pretty long list including the war in ukraine and the trade tensions with china. our steve sedgwick is on the ground in italy with much more steve, good morning. >> yeah. frank, i think your intro is absolutely spot on they need a win. need a lot of problems at home look at g7 the host, georgia malone, is in a really strong position which is ironic given the fact that so many people were concerned about her presidency she's seen at hard right she had a great european parliamentary elections unlike olav schulz in germany his party had a terrible time in the recent elections mark ron has called a domestic election because things are so bad. biden is on a knife's edge for his presidency r506789/50 who will form the next presidency and sunak is looking at a political drubbing for his party. they also need a win for the west as well despite the fact over the last two years, the west has held together, the g7 has held together, the eu has held

together and there's been great leadership from the u.s. and they have held together. the fact of the matter is ukraine sunday a lot of pressure on the battlefield and under an enormous amount of pressure financially so where can the win come from? where a lot of focus has been on the potential using this huge amount of russian frozen assets, most of them are frozen in europe around about $300 billion in total frozen assets. can you use an income stream from that to actually aid the ukrainians don't want to take the focus off the russians and give it to the ukrainians really tricky under international law. they need to use the income streams going forward and if the loan gets over the line with all the technicalities, that will be seen as a big win for the g7, a big win for the u.s. administration and a big support for ukraine. >> so steve, you know, obviously a lot of topics there at the summit what i find pretty interesting is the pope is going to come there, and one of the topics he wants to talk about is artificial intelligence. you always have your ear to the

ground what's your view of artificial intelligence in this meeting >> yeah, georgia maloney has made a lot of comments about a.i. as well and says this is a great opportunity with a.i. that carries enormous risk. it's necessary and the exact words for maloney, necessary to develop government mechanisms and endorse a.i. and make sure that it remains human-controlled as well. and i guess that human control is something that the pope will raise as well. i'll segue if i can, frank the little secret it's not a g7 meeting. it's a g7 plus like a g-20 minus or g7 plus because the list of countries who are i a tending here as well, it really is very interesting as well. you've got the turks here. you've got the south africans coming you've got mohammed bin salman with a saudi arabia, the indian prescription fresh from his election, da silva from brazil and the argentinian leader as well, so i think it's very interesting that the g7 that had all the great topics including a.i. is bringing together some of the biggest leaders around the planet apart from the two

key 20 members which is a wired grouping, no russia, no china. the signalling to china out of this meeting will be absolutely pivotal, frank. >> absolutely. italy inviting a number of north african leaders as well, also sentiment that this might be the last meeting with a status quo with possible change on the way. you alluded to changes on the way in france and also in germany. steve sedgwick, great reporting as always. you know what i'm most impressed about. your ability to find yourself by a body of water. every time you go out you're by the water in italy love of it steve sedgwick. >> you know, it's a great place. >> i can only imagine. steve sedgwick, great to see you as always. let's see how europe is trading up as this day gets under way. silvia amara is here with the early action hard not to see it a lot of red on the board, silvia. >> my background is not as exciting as steve's. looking at the main bourses at this stage, you can see it's red

across the main bourses here in europe this at a time when we are seeing yields on euros on paper propping higher, but let me take you back to the equity space looking at spain at this stage, the main market is down by about.07% percent. earlier today we got harmonized 12-month inflation confifrmg that it rose to 3.8% in the month of may from 3.4% in april. this is just further evidence confirming what the european central bank has been saying that the -- that the path really to bring down inflation is going to be bumpy. very briefly here in the uk, we're also moving down by about .4% of a percent some of these moves are related to pressures on domestic housing markets. briefly when it comes to the sector i want to mention when it comes to the alto space, a very important one to monitor as the european commission unveiled new tariffs on chinese evs, and just to give you an idea they are among worst per formers at the

stage, down by 2%. frank? >> all right silvia amara live in our london newsroom always great to see you as well. your background is exciting enough don't worry about if. >> coming up on "worldwide exchange," lumber mbtule we'll have more on the drop for one commodity coming up. back with that story (woman 2 vo) i have a great boss... it's me. (man 1 vo) i have people, people i can count on. (man 2 vo) i have time to give (grandma vo) and a million stories to share. (grandpa vo) if that's not rich, i don't know what is. (vo) the key to being rich is knowing what counts.

[crowd chanting] they ignored your potential, and mocked your ambition. but it's not the critic who counts. with every swing and block, your game plan never changed. ♪♪ some still call it luck. let them. because you know what it's always been. inevitable. ♪♪ ♪♪ welcome back to "worldwide exchange." an ongoing pullback in multi-family apartment construction as well as home

remodeling is having a big impact on one secretary knorr particular that's lumber. diana olick joins us now with the details. diana, good morning. >> good morning, frank yeah apartment construction has historically robust over the last few year, and so we're seeing now record deliveries of new units, and that oversupply has apartment starts now down 33% as of april compared with the year before and apartment permits which are an indicator of future construction down 23%. home remodeling has been easing as well since the fed hiked interest rates coming into negative territory this year and projected to drop further according to harvard's joint center for housing all of this hits the lumber business >> repair and remodel has come down a little bit, particularly in that do-it-yourself segment we're seeing that coming down, probably kind of mid single digits year over year so that's put a little bit of pressure on the wood products pricing. >> lumber prices have dropped sharply since march when they

hit a recent high. mortgage rates were low in march but shot up in a.the lumber prices seemed to right that rate roller coaster so with rates higher now lumber prices are lower. single family housing starts run from a year ago, but with apartment starts and remodeling lower, lumber is losing some business now i was told something really interesting that a real jump for interest for wooden high rises is seen, even skyscrapers, given how enfriendly steel is to the environment. it's gaining momentum and the u.s. is behind europe using lumber for large buildings as well as for infrastructure frank? >> diana, you hit on mortgage rates, an impact they have had on mortgage prices what's your take of what we heard from the fed yesterday >> well, actually i think the bigger impact was the cpi. that's when we saw a really big drop yesterday morning in mortgage rates in fact, we got into the 6% ranges, 6.9% on the 30-year fixed. we got into the 7s for a long time that was the lowest level since

the end of march the fed pulled a little bit that have back because it wasn't quite as robust as early morning cpi the way it it inflation, so i think you are going to see mortgage rates kind of hang in that high 6%, low 7% range for a while, and then if we see a cut we could see them come down. i do think that 6%, the 6.5% range is what we were seeing at the beginning of the year when we did see home demand really rise, and we saw home sales come up and housing starts come up, so it's got to be kind of in that lower 6% range to really kick start this market which has been just dead this spring, frank >> our diana olick, good reporting as always. great to see you, diana. as we head to break on "worldwide exchange," a look at shames of gamestop looking to bounce back after a selloff intensified late yesterday afternoon. the action coming right around the same time. there was a spike in trading volume in the call options allegedly, possibly owned by keith gill, aka warren kitty, of

course it's unclear if it was gill behind the large volume but options traders saying he could have been involved since he has a large interest in those contracts. meop sres gasthaup more than 3% right now. "worldwide exchange" back in a moment wall street forecasts over $100 billion in sales for weight loss drugs known as glp-1. even with unliked and inconvenient injections, dehydratech processing of a glp-1 drug demonstrated improved blood sugar reduction and reduced side effects. more human study results for lexarias patented oral delivery technology are coming soon. lexaria bioscience, transforming the future of glp-1 drug delivery.

want to save on some of the biggest names in streaming on the network made for streaming? x marks the spot. now you can add the new xfinity streamsaver™ that includes netflix, peacock, and apple tv+. that's xfinity streamsaver™ for just $15 a month. all your favorites. all in one place. only from xfinity.

for more watching and less spending... x marks the spot. do it all on the network made for streaming, and bring on the good stuff. in the new york city area, and there's still a lot more ahead on "worldwide exchange." here is what's still on deck just one cut jerome powell and the federal reserve scaling back

expectations of policy easing for the rest of this year. our next guest is questioning if the central bank will be able to pull that cut off. one cut, no problem. at least one investor at this moment, the s&p and nasdaq, coming off another round of fresh records. futures are suggesting we may do it all over again today. and tesla shareholders voting on the massive pay package for elon musk. we talked to one major investor on the decision to not back that plan it's thursday, june 13 2024, and you're watching "worldwide exchange" right here on cnbc. ♪ ♪ >> reporter: welcome back to "worldwide exchange. i'm frank holland. thanks so much for joining us. post fed decision, let's pick up half an hour with a check of u.s. stock futures with the s&p and the nasdaq, both of them once again hitting new highs on the back of the fed rate decision, and important to remember that are core inflation report take a look at futures

seeing interesting action. the dow looks like it would open more than 100 points lower, pretty much close to the lows of this morning the nasdaq really booming this morning on the back of the broadcom earning, the ten for one stock split. firmly in the green. the fed holding steady on rates penciling in one cut this year speaking after the decision. chair jerome powell saying the central bank is ready to act if the economic picture changes >> if the economy remains solid and inflation persists, we're prepared to maintain the current target range for the federal funds rate for as long as appropriate. if the labor market were to weaken unexpectedly or if inflation were to fall more quickly than anticipated, we're prepared to respond. the economic outlook is uncertain, however, and we remain highly attentive to inflation risks. we've state that had we do not expect that it will be appropriate to reduce the target rate for the federal funds rate until we've gained greater confidence that inflation is moving sustainably towards 2%. >> all right i don't know if that was a

hawkish jay powell or a dovish jay powell we'll talk about it with our next guest the market is trying to figure that as out as well. we'll also look at the bond market's reaction to the decision and the powell presser. you can see right here, after the decision yields ticked up, but last week has been kind of a case study on the fed's impact on the market, specifically the bond market. friday's hotter than expected job report, yields spiked up they stayed higher for longer until we got that cpi report right here you see the decline and a bit of an uptick after the fed decision we'll continue to watch bond yields throughout the hour that's the morning money setup now we'll turn back to the markets which, of course, are influenced by the fed. despite what powell calls an uncertain outlook. traders are pricing in a 25% chance of a rate cut in september. that's actually up from the 46% chance yesterday before that more than expected cpi report and the jay powell press report. joining me now is the chief

strategist an interactive broker steve, thanks for joining me at "worldwide exchange." >> thanks, frank great to be here. >> we saw fresh records yesterday. can this rally, can it keep going with one rate cut, and when will we need to see the cut to keep that rally going >> at this point i'm not sure the rally is dependant on the rate cuts. the rally is dependent on a.i. continuing to be a factor. this morning we're up just, you know, sort of despite powell's rhetoric because broadcom is doing the ten for one split and tesla -- elon musk is signaling good stories out of tesla, and you've got nvidia up a couple of% in city of with broadcom at this point you've got to the ask yourself how dependant are with we on a rate cut because we've sort of outkicked the coverage if we're only getting one. >> that's interesting. so i'm sure you're going to get a lot of calls from clients asking that question it sound like you really think it's the market driving itself

right now, specifically the tech trade. i do want to ask you the chief economist of apollo came out with a note on nvidia and concentration risk inindividualias was the biggest contributor for the higher end on the nasdaq. any downturn in nvidia, we'll see a downturn in the market when you talk to clients, are you talking about concentration risk right now. >> oh, very much this has been a theme of mine for some time. it's nvidia's market and we're all creating in it basically he put the numbers out there and i put out a graph earlier this week just showing that the s&p has uth paced the mid-company and the mid-caps outpace the small cap and the mag 7 has blown them all away. it's really, you know, the problem you get into when you have very concentrated leadership it's fabulous while it works it's fabulous if you have the stocks, the problem is if something were to change the market's mindset, they don't

actually know what that is, probably lack of rate cuts, could be one of those things but it doesn't seem to be. it could be, but the problem is it's everybody trying to squeeze out of one fire exit at that point. it becomes very difficult. >> i know you put out your own writing. i don't want to short change you. you put out an article this week about owning the correct stock i want to talk about the cyclical trade that a lot of people were bullish on when we were thinking we'd get more cuts, may 1st, the fed outperforming tech, industrials and financials laggings, up about a percent give or take how do you view that cyclical trade? what are other areas of the market that you're bushel senator are there other areas that you're bullish on considering the fact that we just don't know when we'll get the rate cut >> you know to me i -- i think it's sort of safe at this point to hunker down and higher dividend stocks if we are going to get rate cuts you want companies that will be able to produce solid cash flow and then return that to shareholders

that's been a good theme, you know, over time. lately it's not sexy, but that in some ways can be a very good way to go, especially if you do think that rate cuts are on the horizon, and i do think at some point they are inevitable, though they just keep moving -- they keep moving the goal posts on us, and that -- and in that sense that kind of fits in with the bigger is better trade because the bigger stocks are able to, you know, generate more cash flow on a solid basis, but i think getting that return is very helpful >> you know, a lot of people talk about dividend stocks recently i want to you what's a dividend in a recent bond climate you look at the ten-year, yields well above 4 rand other areas above 4. what's a good yield in today's environment when it comes to a dividend i want to be clear. >> i'm going to answer with a non-answer to some extent. the dividend has to be good in the sense that the company has to generate enough cash flow to pay for it they don't want to be borrowing to pay dividends that's a red flag, but on the other hand, i would say if you could start -- start with

something in the mid-2s you're talking about a pretty good dividend because you do get the potential for capital appreciation when you own stocks you know, again, if you just want the dividends, then you might as well be in bonds so you want -- you want a little bit of both in this case. >> a little bit of a mix by the way, you might get a call on jon fortt later today steve sosnick, great to see you. >> thank you. coming up, former president trump heads to washington meeting with republican leaders to talk strategy around taxes. the big changes that could be coming for what you pay to the federal government we'll have that story when "worldwide exchange" returns stay with us

wall street forecasts over $100 billion in sales for weight loss drugs known as glp-1. even with unliked and inconvenient injections, dehydratech processing of a glp-1 drug demonstrated improved blood sugar reduction and reduced side effects. more human study results for lexarias patented oral delivery technology are coming soon. lexaria bioscience,

transforming the future of glp-1 drug delivery. already. welcome back to "worldwide exchange." former president trump set to address some of the world's most powerful corporate leaders today. cnbc confirming that jpmorgan jamie dimon, citi's jamie fraser and brian moynihan will be among those hearing from trump at the quarterly meeting of ceos in washington trump is also set to meet with congressional republicans today and a likely hot topic of that conversation will be his signature tax bill that's set to expire next year our emily wilkins joins us now with much more emily, good morning. >> good morning, frank house and senate republicans will be meeting with trump a little bit later today, and one thing they are going to discuss is this potential 20 tra age can a which lawmakers say has to include renewing key tax programs that are set to expire next year. now, members are keeping an open mind about what trump will be

discussing during the meeting. how much of it is going to be campaign strategy and how much actually might be an actual agenda, but speaker mike johnson told reporters that it is important for republicans to have a plan in place if they do kroell both chambers of congress and the white house in 2025. >> when he comes in, we have to have a very aggressive first 100 days agenda. the first year will be important. i think we cannot waste a moment because there's so many things to do so in light of that we're asking discussions with he and his team now and among the ourselves to plan accordingly. >> the last time trump was in the white house republicans moved a tax package that aimed to lower taxes for corporations and individuals, but some provisions are set to sunset in 2025 unless congress acts. now these include things like reduced rates for non-corporate businesses, the lowering of individual income tax and the cap on state and local tax deduction. plus, there's also a question of whether those -- whether perhaps

a more populist trump administration will look at higher taxes on corporations, and, of course, taxes could also play a role in the campaign. lawmakers who spoke with cnbc were quick to note that millions of americans would be impacted by a higher individual tax and a lower standard deduction now, that said, no one is expecting trump to walk in with a detailed policy plan we'll be covering the meetings and what was actually said inside the room today, frank. >> emily, i know you'll be covering every bit of that i want to go back to the taxes thing though will taxes also be on the agenda in the meeting between trump and the leaders at the business roundtable is he going to talk taxes with them as well >> i think that could certainly be on the table for the discussion there the business roundtable, they are already very focused on the 2025 tax debate. they actually announced yesterday that they will have an eight-figure ad campaign, kind of getting out there talking a little bit about what need to be done, the impact of some of these provisions that are about to expire and what they are

hoping to see from being could one of the big things is they do want to see that corporate tax rate remain at 21% there's been some talk about lowering it. some talk about raising it i think at this point we're a little bit too soon to know, and i think that there's going to be a lot of clarity after this november's election as to what that tax package next year will look like. >> our emily wilkins live in d.c., great to see you. come up here on "worldwide exchange," one word every investor needs to know, and decision day on elon musk's multi-billion dollar pay package. a look at why the u.s.'s fourth largest public is voting against that plan. much more coming up. is it me... or is work not working? at least, not the way it could work.

your people are buried in busy work. and you might be thinking... can ai make it all work? it can. on the servicenow platform, ai transforms your entire business. your people work better, your customers are happier, and todd... well... he's practically euphoric. practically. so, let's get to work. (♪♪) things will go wrong for your customers. but your business can make it right, with watsonx assistant. ai that can help resolve problems by understanding your customer requests with 90 percent accuracy. let's create customer service in service of customers, with watsonx assistant. ibm. let's create.

as an independent financial advisor, my promise to you is simple. as a fiduciary, i promise to put your interests first, always. i promise that our relationship will go well beyond just investment decisions. it's the intersection of your money and your life where we can make the biggest difference. [announcer] charles schwab is proud to support the independent financial advisors

who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com all right. welcome back to "worldwide exchange." today tesla shareholders will get a second chance to vote for or against elon musk getting that massive pay package it was first approved back in 2018, but it was voided earlier this year by a delaware judge who ruled that musk dictated the terms of that deal himself to a board filled with his close friends and allies ahead of today's shareholder vote, some of the company's largest and most vocal shareholders, they have been making their cases for and against the deal among those who will support the pay package is longtime tesla barron he echoed what robert denholm told cnbc. >> it's really about fairness,

fairness to our ceo. if you look at what is happening to the company over the last six years, tremendous value creation, and he's led that. employees have benefited tremendously they are all shareholders in the company. >> right. >> so their stock hasriesen. customers have benefit the by the tremendous invasion, and the only person when hasn't been paid is actually the leader of the company, elon. >> late last night elon musk posted on x that shareholders are supporting the vet on his pay package. he claims they are going to pass, it by, quote, a wide margin those speaking out against the package, they have a laundry list of concerns including our next guest, new york city comptroller brad lander who oversees the fourth largest pension program other in the u.s. with roughly $264 billion in assets across five new york city retirement funds which collectively own nearly 3.5 million tesla shares he joins us now in a cnbc exclusive. brad, great to see you good to have you here. >> good morning. great to be with you thank you. >> we're talking about quite a

bit of money, a you say it was approved by elon musk's brother and besties. is that your only concern about this, the process, or is there some other issue at play here? >> well, look, obviously we want in order to make sure we get long-term durable value creation a ceo who is focused on tesla, at least the debate around it has gotten elon musk's attention and focused him on tes larks but independent shareholder governance is not a trivial issue, and it has not been provided here. that's why the delaware court vacated the increase independent shareholder governance, independent board, not your brother and your best friends, but independent shareholders, governance elected by shareholders is something that has served investors well like the teachers and cops and firefighters whose money it's my job to invest. those prince plts are important. it's not a family-owned business it's a publicly traded company, and the rules need to apply. >> we want to emphasize that

you'reresponsible for the investments of many people who make new york city run you just mentioned some of them, police officers, firefighters, teachers, so obviously you have a big responsibilityon your shoulders. i want to ask you. those are a lot of hard working people are they concerned, you concerned about the fact that elon musk, his attention is very honestly split between, you know, not only tesla but x and other endeavors. is that a big concern for you and your members >> of course that's a concern. there's no other company where we have -- every other company that we invest in pretty much has a full-time ceo that's responsible to a board and, therefore, to shareholders now, look, he's done a really important thing creating tes larks and there's no doubt massive amounts of value have been creed, so we want him to get paid now $56 billion is an outlandish pay package, and, yes, it was negotiated by a board which a court found was essentially controlled by him and not

independent, so we want his full-time focus attention and i want a reasonable pay package, and we want a board that represents the interest of shareholders, including real independent directors and two directors who were independent actually quit the board because they didn't feel like they were able to exercise their duties. >> all right important note tesla shares up more than 5% right now, but they are down about 25% year to date also want to note. you're an elon musk fan. you think he's a visionary you're a big fan of him and how he's led this company. would this all be a big issue if the stock hadn't dropped 25% in the last year? would you also be looking to remove his brother and james murdoch from the sfwhord would the stock have been doing better had it come up >> we've been pushing for independent governance at tesla for years way back to 2018 something that we do at other companies as well. we're a large institutional investor we want to see entrepreneurs start businesses and be compensated, but we believe independent shareholders need to

have their interests protected so, yes, that's, why you know, we voted against the re-election of kimball musk and james murdoch. the board of a publicly traded company is there to represent shareholders and provide oversight and not just to do whatever the ceo asks, and it's very rare to have a court overturn a pay package based on the non-independence of the board. that's a real sign there's governance problems here and those are long-term issues obviously the sacrifice matters to us, of course, but these issues have been our concern for quite a while >> you mentioned you're an independent investor, also a sizable investor, about 3.5 million shares let's say the pay package is approved what's next? does that make you change your mind about this investment in any way? >> let's take a look and see how the vote goes first. and let's make sure that that vote is done according to the rules. a big part of the issue is do the rules apply to everyone including billionaires so we want to make sure that that takes place. the pay package is approving

what we want to see is the board and make sure that we've got a ceo focused on the company with a real strategy for long-term growth one concern is elon chasing shiny new objects like a.i. while not spending enough time on focusing on whether tesla is doing enough to sell the evs and continue to grow the value of the company and make money for shareholders, and those are issues we'll be looking at today and long after today. >> brad lander, new york city comptroller, great to have you here thanks for your time and your insight. that vote coming up later today. >> thanks. coming up on "worldwide exchange," the under-the-radar ways trade with two stocks high on our next guest's shopping list and cnbc is celebrating pride month. as we head to break here's ceo wayne ting. >> we need your alleyship not just during pride month or once

a year but every day in your daily life, especially in the work life. when i think about the qualities that create success, at the top of the list are resilience, grit and empathy which lbgtq plus people have in spades. wall street forecasts over $100 billion in sales for weight loss drugs known as glp-1. even with unliked and inconvenient injections, dehydratech processing of a glp-1 drug demonstrated improved blood sugar reduction and reduced side effects. more human study results for lexarias patented oral delivery technology are coming soon. lexaria bioscience, transforming the future of glp-1 drug delivery. [♪♪]

your skin is ever-changing, take care of it with gold bond's age renew formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond. craig here pays too much for verizon wireless. so he sublet half his real estate office... of 7 moisturizers and 3 vitamins. [ bird squawks loudly ] to a pet shop. meg's moving company uses t-mobile. so she scaled down her fleet to save money. and don's paying so much for at&t, he's been waiting to update his equipment! there's a smarter way to save. comcast business mobile. you could save up to 70% on your wireless bill. so you don't have to compromise. powering smarter savings. powering possibilities.

>> all right welcome back to "worldwide exchange." time for your wrap-up. boeingreportedly telling the doj it did not violate its agreement with the department related to the fatal crashes with the 737 max that agreement has allowed boeing to so far avoid criminal charges around the 2018 and 2019 crashes. shares of broadcom surging after the chip-maker beat earnings estimates and announced a ten for one stock split. a.i. contributing to the beat of more than $3 billion in sales. shares of broadcom up more than 12% this morning. china's foreign ministry says the eu's higher tariffs on evs is due to international trade rules. shares are rebounding today. bid up almost 6% and geely up as well pfizer says its experimental gene therapy for a form of

muscular dystrophy failed to improve patient motor functions compared to the placebo. the company will continue to monitor all trial participants it is a evaluates the appropriate next steps we're also watching shares of gamestop they sold off yesterday. rebounding today up 5% the selloff came around the same time there was a spike in trading volume and the call options that were allegedly possibly maybe owned by keith gill, aka warren kitty it's unclear if it was really gill behind the large volume here's the watch today the weekly jobless claims and consumer price index are out at 8:30 a.m. eastern and earnings from adobe and rh after the close and treasury secretary janet yellen speaks exclusively to sivebalk coming up at 7:30 a.m. eastern. the s&p and nasdaq look to power ahead after closing at new record highs following the fed meeting and the better than expected cpi data. take a look at futures it looks like the dow has hit lows of the morning. looks like it would open 130

points lower the nasdaq firmly in the green being powered by broadcom and the earnings in the ten for one stock split. let's bring in tiffany mcgee, an adviser and cnbc contributor tiff, great to see you >> hi. >> coming off cooler than expected c pye, a fed decision how is today shaping up? >> today it's unbothered we thought saw it yesterday that markets were unbothered by the fed decision to delay rates. you know, i think that the markets have already baked in the fed rate cut and the delatin doesn't seem to matter, and we saw that yesterday as the market hit all-time highs. >> markets are unbothered. i want to ask you. are you bothered some of the concentration, apollo sources stock saying there's a lot of risk around nvidia which holds so much sway on the markets, about 35% gavins this year he says if nvidia tanks the

market might tank and inindividualia was the biggest contributor to the higher close on the s&p and nasdaq yesterday. >> listen, i think that concentration risk is always an issue if you have met of your money in nvidia, but i hope most of the people out there don't, right? we're still bugishing on tech as an industry, but i'm not really concerned about concentration. you know, the basis of how we invest is always around asset allocation, so that really is how we manage risk. >> that's how you manage ring. i want to get some of your picks. you're really bushel on reits, a dividend play. look the at dividends. are these good dividends in this current environment? bonds have a yield of 4% for the ten-year, even higher for some of the shorter ones. right now with your picks, is this a good dividend >> yeah. listen, i think that they are decent events, right, so, again, it kind of gets back to asset allocation, you know,

diversification. definitely bonds play a role as do equities and then again, reits, right, it's really spreading your risk across different assets classes so i'll take the dividends. >> what about in okay. in particular sectors, yeah. >> what about the stock themselves emptd equinox, data centers, is that a general way to play the a.i. trade or just about the instability of reits and, again, you mentioned the dividends? >> i think, first of all, the reason why we like it we're looking for different ways to kind of play this growth of a digital aid, and when you think about reits, and, yes, everybody is on a.i. right now, but we're really thinking about it from a broader perspective, you know. reits are a way to provide some more diversification with -- with the a.i. trade, and so when you think about how what the opportunity here is, it's like really necessary to support these digital growth, those data

centers. when you look at like the costs, it's about -- these reits sometimes are like over a thousand square foot, and like the rents are higher than traditional office properties. the tenants are really sticky. we're talking about the fortune 500 companies. they have long-term leases 95% higher renewal rates, so there's such -- such a play here with a.i. but really sticky when it comes to reits, and so we did mention, you know, eqinix and a.i. >> data center spaces as well. one last question. can the market keep going higher with just one rate cut this year >> i think so. >> wow. >> that was quick. >> that was really quick. >> tiffany mcgee, always a pleasure to see you. thank you very much. a quick look at futures right now. as we mentioned, mixed performance in the futures it looks like the dow will open about 125 points lower right now off of its lows. the s&p and the nasdaq, both in the green, the nasdaq getting a

boost from broadcom. broadcom earnings seeing a big boost for ayeah announcing the ten for one stock split. big spike after earnings week to date shares the up 20% that will do it for us on "worldwide exchange. coming up joe, becky and andrew. "squawk box" starts right now. good morning, the feds seeing one interest rate cut for the year comments from chair powell we'll bring it to you straight ahead. plus, elon musk claims victory in a post-on x saying tesla shareholders are approving his pay package by a wide margin. and former president trump will meet with ceos in washington today we're going to take you there live for an update on the relationship between president trump and biden and business leaders. as to thursday, june 13, 2024 and "squawk box" begins right now.

>> good morning, everyone and welcome to "squawk box" right here on cnbc we're live from the nasdaq market site notice times square. i'm becky quick. he's andrew ross sorkin. joe is out today we're here, and we're watching what's happening if you want to take a look at what's been happening with the markets right now, you'll see that this is the same pattern, andrew, just about every morning. >> yeah. >> where you have the dow indicated off this morning by about 126 points s&p 500 and the nasdaq both closing at record levels in fact, the s&p 500 closing above 5400 for the first time ever this morning the s&p is indicated up slightly, by about a point and a half the nasdaq is getting powered along with tech stocks really getting boosted by broadcom. we'll talk a little bit more about that in a moment and the nasdaq indicated up triple digits, a gain of 125. treasury yields, yeah, back down yesterday after first of all getting a cpi number that was softer t