♪ it is 5:00 a.m. at cnbc global headquarters. i'm frank holland. testing records. stocks sitting at all-time highs and cooling inflation boost the odds of sooner than later fed rate cut. investors are appearing a bit split ahead of the open. adobe, shares are surging in the premarket and has its bets on artificial intelligence appear to be paying off. apple overtakes microsoft for the first time in nearly 100 days. we ask technical guru katie stockton if that rally has sticking power.

elon musk reveils in a pay package vote in austin, texas. former president trump makes his return to washington, d.c. with meetings with business leaders and lawmakers. it is friday, june 14th, 2024. you're watching "worldwide exchange" on cnbc. good morning. thank you for joining us on this friday morning. we will get you ready for the trading day ahead and a check of the u.s. stock futures with both the s&p and nasdaq once again sitting at all-time highs. look at the futures. pretty interesting pick picture he here. dow is down. it seems to be the trend recently. we saw the s&p dip very slightly into negative territories. megatech is keeping the rally

alive with best secretary since in november. look. tech moving higher for the week up about 6%. we also want to take a look at the bond market. yesterday's report on producer prices unexpectedly showed a decline in yields now at the lowest level since early april. take a look at the benchmark. 4.22. just earlier this week at 4.45 when he were talking about the yield. energy oil and riding a four-session win streak and looks like the streak may be coming to a end this week. oil down 4%. 80 bucks a barrel and now 78.20. brent crude down a third of 1% and we will continue to watch energy prices throughout the show. that is your morning setup. now to this morning's big money movers. adobe rocketing higher this

morning. the company boosting four-year sales and earnings outlook after reporting a record 5.3 billion in sales in the three months ending in may and those results coming in higher than analysts estimates and they suggest that customers appear to be adopting the company's new a.i. based created tools and shares of adobe up 14.5% right now. restoration hardware reporting a wider than expected first quarter loss and is forecasting current quarter sales below estimates. it expects demand to pick up the next 12 months, hr continues to get hit hard by the housing market slowdown and higher mortgage rates. shares of rh down nearly 12%. apple once again set to open today as the most valuable u.s. listed company for the first time since all the way back in january -- on january 24th. apple shares are up nearly 11% the last three days and adding

324 billion across that market. number one u.s. listed company is apple when it comes to market cap and ticketing above microsoft as you can see on your screen. a huge win for elon rusk and his supporters, silvana henao. >> right. tesla shareholders voting in favor of elon musk's record pay package at the company's annual meeting in austin last month. five months after a delaware judge ordered the company to void the company that it had been improperly approved by the boards. shareholders a plan to reincorporate the company in texas. we are watching shares of gamestop after what has been a wild ride for the stock in recent days. right now, they are down about 1% in the premarket and this

kitty is posting another update last right night reflecting a stake of more than 9 million shares and over $6 million in cash and that compares for 5 million shares and 120,000 call options against gamestop back on june 7th when gill first started reporting his gamestop positions. reinforcing what appears to be appetite for stocks. tempest a.i. priced its ipo 30,000 dollars a share. shares set to begin trading on the nasdaq under the symbol tem. don't miss a first on cnbc interview with tempest a.i. ceo coming up on squawk box today. returning back to the broader markets.

>> let me start with news out of asia. the bank of japan kept rates steady in its latest policy decision but trailed a plan with details set to be confirmed at its meeting in july. the bank said july rate hike is a possibility while saying uncertainty surrounding economic and financial developments at home remain high. looking at some of the reaction in the wake of the bank of japan meeting, we are seeing the yen getting weaker and trading at 157.40 majeds. we are seeing a little bit of upside in some of the japanese stocks as well. i also want to show you how europe is faring this morning. such a critical week where political developments have had a clear direct implication on some of the moves in the equity space. i want to take you, in

particular, to the french market at this stage down by about 1.5% on week-to-date performance. they are on track to end the week down by almost 5% and all of that, frank, after the french president called for a snap preliminary election. let's see what the coming weeks will have in store for the european forces. >> silva amaro, live in our london newsroom, thank you. stocks riding a four-session win streak and the s&p 500 and nasdaq are sitting at all-time highs. bill stone is chief investment officer at the glenn view trust company. >> good morning. >> we got a lot of clarity about the fed one cut in july and pretty much off the table. we have earnings optimism q2 earnings expected to accelerate from q1. tech is in the leadership in the driver's seat. what do you do now? i think everybody is trying to figure that out. do you keep investing in tech?

what do you do? >> i'm kind of going to go with the keep dancing with the one who brung you. i think tech continues to be the focus and rightly so because the earnings continue to come through. you talked about it this morning already. eventually, they will get too expensive. certainly i'd say we certainly trimmed some on the edges of like nvidia. it's a huge position for us but some of them get a bit expensive. overall i would generally hold that. that being said, we are adding to some other positions around some less cyclical areas. the economy, i would call it normalizing and you might call it softening a little bit on the edges. but i think it's wise to buy some of these, you know, i'll say insurance stocks in a sense of health care, consumer staples. we would even say some very

specific co -- >> it sounds like you're getting a little bit defensive. >> yeah. i think you have to on the edges. it's not a race to get defensive. i just think it's hard to imagine things going much better than this in the sense of you're having some of this normalizing in the economy. earnings estimates haven't come off at all, you know? it may -- in fact, we may thread the needle, right? it could happen that way but it's always wise to be a little bit mindful that things can go wrong. you know, i don't hope for them to go wrong. >> nobody does. bill, we have been talking about market concentration the last few days. i'm picking out a part i want to talk to you about. he said the following. quote.

you were talking about cyclicals. they are all considerably lower than the market the last three months. is that a sign of possible trouble coming up? >> i think if you look at overall just kind of putting more cyclical companies against the defensive, the cyclicals have actually done better, so i don't think the market is signaling some sort of downturn. obviously, we all know that technology is really been the dominant force around the a.i. story which, you know, has, in fact, been paying off. you know, i think when you look at history, very concentrated markets don't have to ends badly. you can, in fact, have the market spread out and bring more along. we had a bit of an earnings recession in the other stocks so i think we have a good chance that they will eventually come along. >> bill, you're defensive, yet

smisk optimistic and sticking to the person who brought to you to the dance. good to see you. >> good to see you. much more on shareholders voting to give elon musk his massive pay package. we look at what our next guest calls an undercover wildcard that could be a major issue sooner, rather than later. why adobe ceo saying tough environment hitting other software sellers is no problem for his company. president biden is set to wrap up its trip to the g7 in italy. what it is. steve sedgwick is on the ground what appears to be one of the toughest field assignments i think i have ever seen! steve, good morning. you're by the water. no tie on. the shirt is unbuttoned. how do you codo it, man? >> mr. holland, we had a 24-hour day yesterday for you on worldwide exchange so you forget that as well. day one was all about flexing

the muscles of a g7 and showing unity and about ukraine. we will tell you day two and how they will try to sell the message to the rest of the world after the break. stand by these . as a fiduciary, i promise to be the financial steward that you and your family need. i promise to put your long-term financial well-being above any short term transaction. everyone has a big picture. my job is to help you invest in yours. [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

welcome back to "worldwide exchange." a sprit screen moment between two 2024 white house hopefuls. president biden meeting with the leaders at the g7 summit in

italy this month and trump returning to washington, d.c. meeting with business leaders and lawmakers. al business barr is in washington following the former president trump. we start with you. >> good morning. >> reporter: a clear message of unity coming out of these meetings on capitol hill with republican lawmakers yesterday. former president trump said he is with the republican party 1,000 percent. according to a source inside the closed door meeting, he told senate republicans there that he would do virtual town halls for members who are facing tough races. and stressed that republicans should not attack one another. this was the former president's first trip to capitol hill since his supporters stormed the capitol on january 6th. the two had not spoken in four years but now mr. mcconnell has endorsed mr. trump and said that it was an entirely positive meeting. in separate meetings, the former

president met with at least 80 ceos from the business round table's quarterly meetings and according to people that cnbc spoke with who were inside that room, he talked a lot about cutting taxes, including income taxes, about rolling back business regulations and creating kind of some of the same conditions as when he was in the white house the first time. if he wins the office again. frank, back to you. >> alice, thank you very much. alice barr is live in dennis kneale. president biden attending the g7 leaders summit as they agree to a funding bill for ukraine. steve sedgwick joins my now. >> i'm going to pick up a line from alice barr saying a clear message of unity and talking about trump and the republicans and i'm talking about biden and ukraine and g7 and those were the key messages from the day one of the g7, the fact that u.s. stands squarely behind ukraine. it was very interesting.

i got ushered off to a secret locations where the leaders are meeting up the coast 60 miles and president biden and president zelenskyy had a news conference to underline a new security pact between the two nations and signing of that as well. interesting the u.s. president was talking about more weapons and more intelligence and more ammunition and more training for the ukrainians to help them not only held back the russians but beat the russians. zelenskyy said this is a historic day and agreement on security' protection of human life. that was one part of what was a multi-pronged approach to show unity from the g7 for ukraine. the other key headline we talked about in lieu of it yesterday was the fact that this frozen assets of russia and 280 billion dollars most held in europe and most in belgium, to be true, is now 50 billion backed bill the

treasury and g7 made available to the ukrainians by the end of this year. what is very interesting about this day here at the g7 today that it will be about selling the message of the g7 unity to other key players in the rest of the world. the likes of argentina, indiana, south africa, brazil, turkey and sawudis will be invited in the second day of this g7 conference and the pope will be speaking about a.i., among other things. >> steve, great to see you. thanks. coming up, natural gas prize may be dropping but don't expect any relief on your utility bill. we dig into the numbers and stock set to ride high and record breaking suerea mm ht. (grandpa vo) i'm the richest guy in the world.

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created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ [thunder rumbles] ♪ ♪ welcome back. tesla high in the premarket after shareholders voted to approve elon musk's pay package ha ahead of their meeting. it follows an intense campaign by musk and tesla's board to secure support that record pay package has been criticized for its size and also how it was rewarded. the deal was rejected in january by a delaware judge who says the process was just deeply flawed because of the close ties has to several board members and tesla failed to inform the board about

the details. the tesla lawyers could have leverage in challenging the verdict by a judge. we talked to brad lander who voted against that pay package. in a statement following the results, he says, they expect to be robust independent board oversite and ceo who is committed to tesla's growth over his other business ventures so investors can trust their interest in line with the business goals. alex has a small stock position in tesla. professor, good morning. great to have you here. >> great to be here. >> you're a shareholder. how did you vote? what did you think of the overall outcome? >> well, the overall outcome i was not terribly surprised by. you know? this was definitely -- a couple of question marks but, you know, i think most of the people thought that they were going to at least eke out a victory but we still don't have the numbers. personally, i was trying to figure out how exactly i would think of both of these issues.

for me, i never was a particularly big fan of the reincorporation to texas for reasons i can tell you and i voted against that. the pay package issue, i think, was a difficult one. i vote against it but pretty good arguments in either direction. >> a lot of issues to kind of chew on here. one is corporate governance. the risk/reward number two. suggestions that elon musk might leave the company if he didn't get the price. how do you see the judge viewing this vote and what do you think the final outcome is going to be? >> well, the vote will not clearly have any immediate fact. at least from a legal perspective, this was a vote that, you know, probably, at least under conventional thinking, was a little bit too little, a little bit too late five years after the very breach of fiduciary duties that it took the judge, herself, to finds in january occurred and this vote only occurred because of that

vote. so the usual line of thinking is that, you know, you got to get this right the first time or at least fix it quickly and this came along a little bit too late. on the other hand, it's really hard to ignore the mandate of tesla stockholders, particularly to the extent that this, you know, this vote looks like it's a reasonable reflection of their collective choice. i think that probably -- it's not going to hurt tesla, put it that way and probably will help tesla and mr. musk either in trying to convince the judge to change her mind or, i think probably more likely to parlay this vote, along with an appeal to the delaware supreme court. there are several parts of the judge's opinion that, you know, certainly, you know, had to sort of go out there and make a stand on things that, you know, had not been clear before and it's possible that tesla might use this vote as a way to help convince the delaware supreme court that maybe they should reverse. now i should note that this case is still, you know, hasn't been

subject to a finalized ruling by the judge because she still has to hear something about attorneys' fees. >> that is something we highlight is the fact the vote happened but doesn't mean he gets the money and more legal wrangling to go. a wildcard you said has been underreported in which you call the bro mance between musk and trump. where is the risk? we know the former president is not a fan of evs. >> this has been kind of an evolving situation but, you know, former president trump has been sort of an opponent of governmental sort of support of the ev industry, notwithstanding that tesla is an american producer and making great strides the last five to ten years in this area. the fact that the relationship between mr. trump and mr. musk is, you know, seem to become

much more cord value and i think probably has some bearing on how big is the political risk that should mr. trump take office, he is going to continue to oppose the ev industry. this may actually create at least a crack in the door for companies like tesla. maybe even the rest of the american side ev industry to bypass some of that downside political risk that i think has always been thought to be quite salient if mr. trump is re-elected to office. now, there is a lot more to, you know, to go down this road, but it does seem to me that one of the biggest upsides of keeping mr. musk engaged at tesla and keeping him invested in the company may well be having to do with, you know, trying to manage this political risk which i think is always been a little bit of a 600-pound gorilla in the room. >> professor, thank you for joining us. coming up, the staggering drop in home values in some areas of the country as multimillion dollar houses are now being sold for just fraction

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area. ad adobe rockets higher and momentum sweeping across wall street. their stock is helping u.s. stock features an nasdaq and s&p trade at record all-time highs. microsoft on defense as its president is grilled on capitol hill and stock plays second fiddle to apple. it is friday, june 14th, 2024. you are watching "worldwide change" here on cnbc. welcome back. i'm frank holland. great to have you here on this friday morning. a check of u.s. stock futures with the nasdaq and s&p roading a four session win streak and sitting at all-time highs once again. dow looks like it would hit its lows of this morning and a trend seeing the dow going low lower and s&p lower and nasdaq solid

green and talk about that later in the show. investors riding the recent waive of optimism following this week's batch of producer prices seeing their biggest drop since last october. core cpi smallest increase since 2021. bad news is good news with the labor mark and initial claims highest since august. look. the benchmark 4.21. earlier this week at 4.45. more than 20 bases point drop when it comes to the benchmark. now a big money mover today. shares of adobe are soaring. boom and demand for artificial intelligence driving new customers to the company. adobe raising its rvevenue guidance for the year. the ceo says the company's approach to a.i. and product

delivery is creating more value for users. you raised your price target by about 20 bucks and you're still below the street average. what did you see? how come you're less excited about this than your peers? >> frank, it's proof adobe's report is about expectation. adobe is coming off a couple of tough quarters. stock had been down 23% year-to-date versus the s&p up 14.5. so we feel as if we have been in the right position. expectations in terms of last night were we think they needed to come in in line. they actually did slightly better than that. as you mentioned in your intro, genitive a.i. a focus. although it's early, some of the markets are starting to get traction. i think the story out of adobe is positive signs but against very low expectations and coming

in the context of other weaker software reports which i think helped the setup. >> fair point. adobe's gains bringing i think close to halfway from where it was at the beginning of the year, so it's taking a pretty big drop this year and a ways to go to get back to where it was. it used to be wonky. i used to say this on the show sometimes and people say what does that mean? you're smiling right now. it's kind of a measure of the demand and the pipeline of business. that increased by 17% higher year over year. we are talking much more about that nowadays. in your mind is that a read that ghned for the a.i. products is very strong? adoption is very strong. exactly how should we read that? >> it's a tough metric to read for investors because it doesn't give you a sense of the timing. it doesn't tell you when that business, when that is actually going to hit revenue. so rpo remaining performance obligation tells you the overall

book of business that sits for adobe but doesn't tell you when that is exactly going to hit. some companies will report the next number over the next 12 months. i think on the a.i. side, you know, it's certainly been adobe has been sort of the tip of the gravitational spear on both fear and optimism on a.i. on one hand, adobe is a great partner and have a great chance to succeed in a.i. on the other hand, others will know that adobe has a bunch of competition out there. since the acquisition attempt of figma which was broken up or which they passed on a $20 billion effort to get more in the collaboration and next gen creative space, adobe has really doubled down on the innovation and i think even more than just

the a.i. and adobe horrid pace of innovation they had taken their foot off the gas a little bit there is starting to see some traction with new products. >> rob, you're pretty excited about adobe considering your stock market is lower than your pieces. great to see you. silvana henao is back with top stories. >> good morning again. lawmakers grilling microsoft president brad smith yesterday at a house hearing a homeland security, taking the company to task over alleged ties to china year after hackers broke into microsoft systems to spy on thousands of u.s. state department emails. a report in april by the cybersafety review board slammed microsoft for its lack of transparency over the hack. smith says the company accepts responsibility for the findings in the report and it's working on the board's recommendations. boeing is investigating a kault issue with undelivered 787

dream liner planes. the company says it discovered some fasteners were incorrectly installed on the fuselage. boeing says current fleet of 787s can continue to operate safely. boeing's woes is under increased exc scrutiny from multiple regulators in its safety practices. apple sued for paying women more than women for same jobs. it seems to represent a class of 12,000 women employed at apple who have worked in several departments since 2010. an apple spokesperson said the company has achieved and

maintained genders pay equity since december of 2018. another nasdaq indices at the start of trading on june 24th, you're looking at the chart of arm and rocketed higher since their debut earlier this year and worth over 160 billion compared to sirius with a 10 million market cap as of yesterdas os y'cle.

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welcome back to "worldwide exchange." gas prices are picking up steam recently but down sharply the last two years with the country bracing for record temperatures this summer. we have a look what consumers can expect from their utility bills. >> reporter: consumers are not likely to be relief on their electric utility bill this summer. bills are forecast to raise 8% compared to last year according to estimates from the in the energy assistance directors association. demand goes up in the summer as people crank their acs but the fuel charge is only one part of the bill. you've also got the delivery charge which pays for wires and transmission. it's that portion of the bill that utilities are allowed to earn a rate of return on and given all of the grid upgrades and spending that is needed, it's unlikely to go down. the average annual electric bill

is up nearly 19% over the last five years from 1385 in 2019 to 1642 last year. adjusting for flaginflation the number has come down but electricity costs are outpacing overall inflation which is rare. it could help solar run companies because higher utility prices make rooftop panels more attractive. >> high interest rates hit sales and bottom lines. coming up, we have the one word that every investors needs to know today. plus a coastal real estate red flag. a report on the staggering drop in home values and multimillion dollar houses are sold for fraction of their original purchase price. into the night.

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california, to long island, new york, to nantucket, massachusetts. some of the nation's priciest coastal real estate is in an increasingly precarious position due to climate change. >> they are buying them noknowi they are going to lose them them. >> this house in nantucket house was sold. the house sold this year for just $600,000. the buyer told "the boston globe" the price mitigates the risk and it's not the only one. >> there have been severlal. one sold in the mid sevens and one in the mid eights and is a lot of mope but if not in erosion risk would have sold for $10, $12 million. >> she launched a seminar for

fellow agents to help them reprice homes at risk:i saw houses selling. my god, that is not worth that. it's fall in the ocean. >> reporter: on the eastern end of long island, in montauk the community was scrambling to bolster its beaches and protect its multimillion dollar homes as the water came in faster than ever before. >> where we have seen flooding in the past and the water subsiding right away it's not subsiding any more. we have a friend that has a $10 million home and he is not even sure what to do with it because if he sells it, it's never going to be the $10 million that he bought it for. >> reporter: looking at zip codes just on the east and gulf coasts of the u.s., these 33 have a median home value $1 million. in these area a combined 77,000 properties are at significant flood risk. according to models by first

street, a climate risk data and analytics firm and roughly $100 billion in potential losses. >> i think we just put our head in the sand. values going down the last ten years and still quiet reduction. >> reporter: attorney chris farley is working with nantucket homeowners to help reduce their property taxes as both the beach and their values erode. some homes have been reassessed while their neighbors haven't. >> this house behind me, for example, is 2.2 million but the house two doors down is 500,000 for their land value. the house on the other side of that is 250,000. >> reporter: all three homes sit on the same cliff that is quickly losing ground. >> in the last six months, this has eroded, i would say 12, 15 feet of sand is gone. >> reporter: and these protected tubes. we are not supposed to be seeing this? >> this should have been covered. >> reporter: on one beach, it's erosion. on another, the rising ocean has

pushed sand so far as to bury the homes. this was not like this last fall. this has happened this quickly. >> reporter: all this sand coming up here like a snow dune. >> that was their septic. these things are not usable any more. once utility wires and septic systems get exposed the town has to condemn the property. >> reporter: this homeowner john watched our interview from his front steps. he has owned his home for 42 years. >> we have one more year. >> reporter: without beach e rows, how much would john's home sell for. >> right now if it wasn't at erosion risk, 2-5. >> reporter: now? >> i don't know if you would sell it. maybe 500. maybe. you'd have to have some buyer willing to lose it. >> reporter: as more and more homes lose value and see their property taxes reduced, the local economy could take a hit, meaning taxes for everyone else could then go up. nantucket residents are voting on which parts of the island need the most help and who will pay for it. meanwhile, in montalk, experts

are reassessing coastal plans made a decade ago after super storm sandy because they are already outdated due to climate change. >> dramatic pictures there, diana. that one sound at the top they are buying it knowing they are going to lose it. you're spending so much known a house you probably could lose is mind blowing. given what we are seeing, why is coastal real estate overall still so speexpensive? people want to still live near the water. you see people willing to buy and, to be honest, the more money you have and the more money that you're willing to risk, it seems like the real estate agents say, they say to these clients, if you're paying 10, $15 million is maybe part of your forty portfolio that you're willing to lose and some of them are. when it comes to the lower priced ones those are the ones you have to worry about because then it's going to be insurance and the government ticpicking u

the tab. >> i spent timein new england. sad to see the situations there. thank you. >> coming up on "worldwide exchange" number one once again. apple briefly overtakes microsoft's market top crown for yse first time in almost 100 da. we will ask katie stockton if that has any sticking power after the break. 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. her uncle's unhappy. we i'm sensing an acunderlying 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.

welcome back. time for your wex wrap-up. shares of gamestop as keith gill, also known as roaring kitty, appears to be increasing his position in the company and posting another yolo update stake of more than 9 million shares and over $6 million in cash and gamestop is down 1.5% right now. tempest a.i. priced inside 37 a share. shares are set to begin trading toot on the nasdaq under the symbol tem. germany's government reportedly working to prevent the eu new tariffs on chinese ev

in full effective. there is still room for an agreement with the chinese before those tariffs take effect on july fourth. new york judge is set reject a 30 billion settlement between visa and mastercard over fees the merchants play to credit card issuers. they say they charge swipe fees for processing payments and bar them from customers to have cheaper forms of payment. boj to scale back bond purchases. the bank keeping its interest rate unchanged between zero and 0.1%. may import prices and preliminary read on june consumer sentiment. you do not want to miss steve liesman interview with loretta

mester coming up on "squawk box." a look at futures. set for the final trading day of the week. session lows at all-time highs. right now the dow looking like it would open 200 points lower and s&p firmly in the red. nasdaq off of its highs as well. look at apple up 11% in the past three days and retag the title as the most valuable listed u.s. company from microsoft for the first time since all the way back in january. tesla up 3% this week. higher in the premarket after shareholders voted to approve elon musk's record breaking pay package valid between $45 and $56 million. joining me now is katie

stockton. >> good morning. >> why don't we start about the momentum trade big tech and apple is a part of that. when you look at the charts and technicals, do you see that having more room to you run or frothy and foamy, whatever word you want to use for it? >> i would say more room to run from an intermediate and learning perspective. we are breakouts in the nasdaq 500 and not to monitor the trend indications we have at the same time. specifically for the nasdaq 100. this is a pretty new development. we have some countertrend signals that are really across time frames to daily and weekly and month bar charts have these signals. it tells us the very steady up trend we were accustomed from october' low probably will not repeat itself, that we are in store for something dotted by more corrective phases and perhaps just a little bit more difficult to navigate and that would then also suggest that

perhaps that big large cap tech trade is going to falter here at least in relatively terms. >> falter in relative terms. a note looking at some of this narrowness in the market that has some people concerned. they came out with a note saying, in part, quote. we were showing a chart earlier looking at the cyclical sectors moving quite a bit lower the last three months. what do you make of the narrowness of this rally and what do you think that means? >> i can't argue with mark. he is a great technician and he is right in that it has massed the breadth behind the market deteriorating and more of a short-term if you look at something like the cumulative advanced decline line and a market that lacks breadth it's a

harder rally to sustain indefinitely. right? we have seen very strong gains of late from the likes of apple, for one. and that is really contributed to the move most recently and last year, we had this narrow leadership. it is something that tells us that we should probably be patient when thinking about adding exposure because as soon as we see a little downtick in apple and invadnvidia that is t get the market to a place it's a little bit more oversold. perhaps not fully oversold but something closer to it.the mark little bit more oversold. perhaps not fully oversold but something closer to it. europe taking a sharp turn lower. what do you make of the action we have seen in europe since the parliamentary elections? >> it's a very different chart that cac 40 versus the s&p 500. i actually think that it looks like it could be maturing and

seems a bit overdone to me in the short-term on the downside. we have also seen from europe some interesting indications from the relatively strength ratios versus the u.s. the broader benchmarks like the euro stocks 50 for one have seen turnarounds in those and we will more inline from the balance of the year from europe. >> katie, thank you. that does it for "worldwide exchange." "squawk box" starts right now. >> good morning. smooth sailing for apple after the company overtook microsoft to regain the top spot as the world's most valuable company. elon musk thanking shareholders after they voted for his compensation package. details ahead. adobe shares are soaring and company raising guidance as it sees more a.i. adoption.

it is friday, july 14th, and "squawk box" begins right now. good morning. welcome to "squawk box." we are live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin. joe kernen is off today. it is friday. after a strong week for the markets, you are seeing maybe a little bit of a give back. maybe a little bit of exhaustion from the momentum trade that we keep watching. this morning, the dow futures are indicated down by about 228 points. s&p futures down by 15 and nasdaq down by under 10. this comes after yet another record day for both the s&p 500 and the nasdaq. you've been looking at interday high