it is 5:00 a.m. here at cnbc global headquarters. i'm frank holland and here is your "five@5." stocks hovering near all-time highs as investors are questioning the recent market rally and if it can hold in the summer months. don't tell that though the chief market strategist who is raising his target to now 6,000. goldman sachs is getting bullish as well. in europe, stocks trying to stage a comeback after the rough week for the region and france's worst week in more than two

years. why one fed chief says the december rate cut is quote a reasonable expectation. and a record-breaking box office for disney. it's monday, june 17th, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ good monday morning. welcome to the "worldwide exc exchange." we check off with the nasdaq pushing into deeper territory. let's look at futures. having some issues right here. take a look right now. i believe this is an older chart. we will work on this. while we are doing that, investors are getting ready for the busy front on the data front with the housing market and the interest rate call. futures right now with a mixed

picture. dow would open 35 points lower. the s&p is pretty close to flat. we want to take a look at the bond market with yields at the lowest level since march. the benchmark ten-year at 4.24. similar story when it comes to the 30-year bond which is a read on inflation expectations. we want to look at energy. it is oil in the morning. oil is riding a three-week losing streak. take a look. oil is down across the board. wti is down .30%. brent crude is a similar story. u.s. data is coming in weaker than expected. china crude production is taking an uptick. both of those weighing on the market this morning. that is the morning set up. let's get a check on the top stories with silvana henao who is here with those.

silvana, good morning. >> frank, good monday morning. let's start with minneapolis federal reserve president neel kashkari who is weighing in on the decision to keep the u.s. interest rates unchanged for the seventh straight meeting. speaking with cbs' "face the nation," kashkari is saying it is the decision to wait until december to do so. >> we are in a very good position right now to take our time and get more inflation data and get more data on the economy and on the labor market before we have to make any decisions. we're in a strong position. if you just said there is going to be one cut, that would likely be toward the end of the year. >> kashkari adding one reason europe and other regions have been able to start cutting rates earlier is because their economic fundamentals are not as strong as what the fed is seeing here in the u.s.

sources tell starboard has built a stake in autodesk and pushing for changes at the software maker. according to several reports, the activist investor has met with autodesk executives in the recent weeks to discuss operations and governance and handling of the recenthing autodesk shares are down 7% this year. we are watching shares of disney after pixar's "inside out 2" brought much-needed juice at the box office making $155 million weekend haul here in the u.s. that's the second highest weekend opening of the animated film ever and the first movie since "barbie" to top $100 million in the opening weekend. disney's pixar's "incredibles 2"

still holds the weekend debut record in its opening weekend back in 2018. frank. >> i never saw the first one. i have seen this one. they are introducing anxiety. i'm not paying money to see anxiety. every time i have to set my alarm, i'm feeling anxiety. got to be here. the silvana, thank you very much. see you later on in the show. turning attention back to the markets. the s&p 500 and nasdaq coming off the seventh positive week in the last eight an. that is leading the bulls on wall street to raise targets. the biggest move going to 6,000 from 4,750. he says the revolution is in the everything innings.

also goldman sachs raising the s&p target to 5,600. growth for the mega cap tech names is setting revisions. just to put it all in context. mike santoli writes over the weekend about what he calls the unloved rally and some find it hard to embrace the record run. let's bring in gina sanchez. gina, really good to see you. >> thank you. >> why don't we start off with julian emanuel raising the price target to 6,000 saying a.i. is the catalyst. surprised by the level of bullishness. do you believe the s&p can get to 6,000 this year? >> i think it is a bit surprising given that so much of what we have seen propping up the great earnings that have

been feeding the market generally. obviously, the a.i. boom in tech is something totally different, but all the those things, at least the consumption led has been credit card driven. it has been on credit. we've had wage growth, but at some point, that is expected to slow by year end. i wonder to what degree the markets are going to start pricing in that slowdown some time in the fall the way we are extending what we are experiences ride ght now. i think it might be hard to get to the final number. >> you know what i find is interesting with the calls, julian emanuel's call with the back drop of slowing inflation and the fed cutting rates and has supported goldilocks. aside from the 6,000, which is ambitious, what do you think of

the overall economy? we heard from neel kashkari saying a december cut seems pretty likely. >> well, right now, i think there is at least one cut priced for november. i think the likelihood we get a december cut will require more weakness in the economy. you could say that would be part of the goldilooks sccks scenari. i think that's the key to the goldilocks scenario in 2025. we slow down to 1.8% which is currently priced in. if, in fact, the fed stays higher and continues to remain higher and doesn't even hit the january cut which is also priced in, i think that could actually threaten real wage growth as well. you know, that is the question.

>> all right. i want to turn back to the general market. we mentioned mike santoli's weekend article. one issue since the april dip is trading above the 50-day moving average. i know that is technical analysis and generally not your wh wh wheelhouse. what do you make of the index and half of the stocks trading below the 50-day trading average? >> this is the wall of worry. you have a tale of two stock markets. the mag seven and everything else. i don't even know if tesla is in the mag seven. mag six. there is a segment of the market which is having a reckoning with, you know, with forward pes, questioning the ability to

produce profits. profitability of companies which is everything below the mag seven. that is a different market dynamic which is a concern that we could see a bear slowdown. >> if we are climbing the wall of worry, why is the vix so low? the vix dipped below 12 last week and it has been that way all year long. >> i could not agree more. one thing we focus on is pr protecting downside options. i would say don't look a gift horse in the mouth. downside protection is not a bad thing and will keep you in partic participating. >> downside protection is cheap and why not get it. gina sanchez, thank you very much. for more on the trading day ahead, head to cnbc pro. we have more to come here on

"worldwide exchange," including one word that investors need to know today. in europe, it is a different story as one major equity is there. and housing takes center stage. we look at the two stocks you need to watch. later, a closer look at what is quickly becoming the ev capcap in china. we have a very busy hour when "worldwide exchange" returns. stay with us. 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? mm-hmm. ya, he's super nice.

a slow network is no network for business.

that's why more choose comcast business. and now, we're introducing ultimate speed for business —our fastest plans yet. we're up to 12 times faster than verizon, at&t, and t-mobile. and existing customers could even get up to triple the speeds... at no additional cost. it's ultimate speed for ultimate business. don't miss out on our fastest speed plans yet! switch to comcast business and get started for $49.99 a month. plus, ask how to get up to an $800 prepaid card. call today!

welcome back to "worldwide exchange." we are watching off europe kicking off the trading day with the stoxx 600 falling 200%. the cac 40 coming off the worst day since july. arabile gumede is in the london newsroom with the latest. good morning, arabile. >> good morning, frank. that is the hope, really. the market was looking toward to see the rebound come into play following on the worst week, like you pointed, since july for the stoxx 600. the cac 40 since march. it went down 6.41%. a major sddrawdown on that fron. italian market is weaker. significant losses across there. the anticipation was, perhaps, you find a rebound.

while there is some green, it doesn't write home to give you a clear sense of the rebound. we have the bank of england set to put out the interest rate decision this week and the inflation figure out of the united kingdom on wednesday. that will factor into the market play. let's look at what you saw across last week. this is why you had thought you might get a rebound. these were the significant drops. this is a market that tells you over the last seven trading days how things look. even with that rebound, perhaps likely in play today, you are still getting major movement. italian market 5.6%. down 6% for the cac 40 because of the snap election that president macron had actually put forward out of france then last week. that has created political turmoil. fears then, of course, the far-right national rally party would take up a significant

portion of the legislature ultimately creating a new position for the prime minister as well. many question marks around that. that decision yet not being made. we will see how the snap election comes to the floor. frank. >> arabile gumede live in the london newsroom. always good to see you. thank you. we will continue the conversation with michael field. great to have you here with us. >> good morning. >> arabile gave us a great setup. i'll break it down one more time. stocks down 1.2% last week. the indices down 5% following the european elections and right-wing gains in the parliament. question for you. is this part of the long-term trend or volatility before the election or is this something else? >> i think it is tough to say at this point. the european parliamentary elections threw up a few surprises. you have seen a few things across europe and ireland, for instance, the left-wing party

expected to make gains and different. in france, the right-wing party came out of nowhere and transformed the government and forcing their hand into the current election. it is difficult to see the patterns, but there are big changes afoot. >> a lot of changes. also another change. citi downgrading europe from neutral to overweight. this is interesting. heightened political risk and narrow market leadership. i have to be honest, this sounds a little bit like the united states. for investors, could this be a warning? the fact these are the factors and how should u.s. investors view european stocks after this? >> i think you have to take it on balance. obviously, there are risks involved and those have been highlighted with the elections with the risk of far-right parties getting in. france is europe's second largest economy. the idea the far-right party can blowout the budget deficit is

concerning. at the same time, there is a lot of positive catalysts in europe. the ecb cut rates a week and a half ago. it is working faster than it is in the u.s. i think, yes, there is risks and yes, there are negatives, but there is positive macroeconomics outlook as well. >> positive macroeconomics outlook. does this mean it is a buying opportunity or is this a wait-and-see how it turns out? >> this is a buy opportunity if you see in france with the cac index and french stocks which have been hammered in last week. our analysis has shown utilities with a lot of selling has been overdone if you look at the exposure of the utility companies and the far-right party says they will do. it doesn't match up people are

overdiscounting the stocks. you can say the same with the index names. a fear they may nationalize toll roads. some see fanciful at the moment. based on what we know right now, the market is pricing in a lot of negativity with the french stocks. >> you gave us a list of four or five stocks. kering and two banks, bnp and soc gen. what makes the stocks in your mind to help withstand volatility? i'm trying to get something for u.s. voinvestors to put a foothd in? >> the banks are a proxy for the general economy and then they got hammered quickly. i mentioned bnp paribas for

instance. you have a french restaurant payment company. if you look at the exposure of the companies and kering, the owner of gucci, if you look at the exposure to france, it is small in the scheme of things, but because they are well known french stocks, they are settled down heavily. we think the underlining exposure and the strong business model with the likes of kering is enough to get them through and rise over time with the lows we are seeing now. >> michael field, always great to see you. thank you. >> thank you. coming up on "worldwide exchange," the biden administration is set to make moves in the oil market with crude riding a four-week losing streak. we have the full story when "worldwide exchange" returns. ♪♪ citi's industry leading global payments

solutions help their clients move money around the world seamlessly in over 180 countries... and help a partner like the world food programme as they provide more than food to people in need. together, citi and the world food programme empower families across the globe. ♪♪

(traffic noises) (♪♪) the road to opportunity. is often the road overlooked. (♪♪) at enterprise mobility, we guide companies to unique solutions, from our team of mobility experts. because we believe the more ways we all have to move forward. the further we'll all go. [thunder rumbles] ♪ ♪ ♪ ♪

the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ [thunder rumbles] ♪ ♪ welcome back to "worldwide exc exchange." time for a check of the headlines outside of money and business with frances rivera in new york. >> good morning, frank. we start with the biden campaign celebrating a major fundraising haul. the campaign says their star-studded los angeles event raked in more than $30 million. that's a record for the democratic party. nbc reached out to the dnc to confirm that record.

in a serious moment, the president stressed whoever wins this next election could select two supreme court justices. summer is kicking off with extreme heatwave which is expected to expand from the midwest to the east coast. the national weather service says 70 million americans are under a heat advisory or watch. the highs in some areas could reach 25 degrees above normal for this time of year. the heat could last through friday and beyond. now to the nail-biting victory on the green. bryson dechambeau coming out of the epic battle with rory mcilroy. dechambeau fought back with the high pressure putt. you are up to date on this monday morning, frank. >> frances rivera, thank you. coming up on "worldwide exchange," the key housing numbers to watch this week and

the bull sector saying watch ngspite the fed's higher for loer. much more "worldwide exchange" coming up right after this. you need them. they need a retirement plan. work with principal so we can help you with a plan that's right for your team. let our expertise round out yours. as an independent financial advisor, i stand by these promises. 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 want to save on some of the biggest names in streaming on to helping people achieve their financial goals. 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, life's daily battles are not meant to be fought alone.. - we're not powerless. so long as we don't lose sight of what's important. don't be afraid to seize that moment to talk to your friends. - cloud, you okay? because checking in on a friend can create a safe space. - the first step on our new journey. you coming? reach out to a friend about their mental health. seize the awkward. it's totally worth it. it is just about 5:30 a.m. in the new york city area and there is more ahead on "worldwide exchange." here's what's on deck. tech's record run is showing no signs of slowing down after

unloved rally on stocks. and looking to see if the spring selling market can do anything to juice what has been a lagging sector year to date. later, a look at the ev capital of china and it is not shanghai and beijing. eunice yoon is on the ground with that report. it's monday, june 17th, 2024. you are watching "worldwide exchange" here on cnbc. ♪ welcome back to "worldwide exchange." i'm frank holland. great to have you on board this monday morning. we kick off the check with the s&p and nasdaq coming off their seventh positive week in the past eight. look at futures. a mixed picture. the dow would open 50 points lower. s&p is flat and nasdaq is higher. the big driver is the sentiment of stocks as they push deeper in

record territory. julian emanuel is raising his target of 6,000 from the previous read of 4,750. ubs and goldman sachs bumped up their targets. despite the good vibes, cnbc's mike santoli writes what he is calling the unloved market rally on cnbc pro. he looks at why so many investors find it hard to embrace the record run. we will talk more about that later on in this hour. first, we keep a close eye on the treasuries and the yield. down 4% in the past few weeks with the spring housing market in full swing. despite being down 2% in the past month, the average rate for the 30-year fixed mortgage still stands at 7%. that is a set up for the busy week for the housing market and earnings report later in the

week. including existing home sales. joining me on this is john lovello with ubs. also with me is bess freeman. john, i'll start with you since you're here in studio. >> sure. >> two big reports. one from kb home. ahead of the reports, you say it is a buying opportunity. wh why? >> we think so. first, thanks for having me. inventory has ticked up a bit. context is important here. 1.5 million single family homes in the market today. that is up 15% year over year. what is important is that is 1.5 standard deviation below historical average. inventory is still very, very low. the market sentiment has soured because of that. i think if you think about the

two markets, existing home sales and new home sales. existing home sales have been low. >> bess, you are looking at new const construction. cost is up 5% year over year. how is that influencing the action out there with buyers and sellers? >> i think it's going to take some time. buyers are still slow to get into the market and, you know, we saw the fed decided to hold rates steady for now. they indicated there may be one cut. i think the second quarter has proved to be busier and as john mentioned, inventory has partticked up. buyers are waiting a bit and sellers are holding off because

they don't want to let go of the 2% or 3% mortgage rate they locked in. they have a lot of equity in their homes. the market is better and improving, but it is a slow slog. >> according to john's data, 77% of homeowners have a rate at 5%. it is a dig deference. bess, i want to stick with you. talk about how the fed is influencing the housing market? we had the fed say higher for longer. we had neel kashkari saying maybe december is when we get the cut. how does that play into buyer and seller sentiment? >> i think buyer and seller sentiment is dedecent. despite what the fed does, they could have raised ratesed and they didn't. the target is 2%. we are not there yet. the economy is strong. the stock market is strong. the labor market is strong. everything has been very positive.

so, i think consumer sentiment is decent. it is taking them time to get into the market because rates doubling is still something that takes time for the consumer to feel good about and be willing to get in there and put an offer in and buy something. they want to see rates potentially go down. all eyes are really on the market and what will be. >> absolutely. i know a few people have to move with the kids or divorce or something else. it is difficult to go from sub 5% to anything higher, especially because housing prices have risen. john, you are saying this may be a buying opportunity. the fundamentals don't sound great. what do you expect to hear from the reports? they can't say a.i. and get a jump. i'm asking on a serious note. what are you expecting in. >> frank, even in a market that has been sideways that the public builders are gaining market share.

they grew last year five points above market. it's a lot of share being gained. there's still growth. what we are expecting is beats across the board for lennar and kb on monday and tuesday. the question becomes there is uncertainty in the market today. will they be more cautious on the outlook which is not a good recipe for stocks this earnings season. i think the actual prints will be strong. >> we talked about the fed impact. what about the immigration impact? that is something jay powell talked about. we heard other companies talk about that as well. how does that play a part here in the u.s. which is a big economic factor? >> it is two prong. it puts more buyers in the market, for sure, but labor is the biggest pinch point in the housing market for the last eight years.

immigration ticking up is good for housing. >> we showed a graphic. there are two housing-related data points. kp existing homes and starts. does that influence the stocks and perception and sentiment? >> i think housing starts is important. it is showing what is coming to the market and the builders in the environment. on the existing homice side, existing home sales stay low and it is a challenge for overall housing. >> bess, similar question for you. a home buyer or investor. between the two data points after kb and lennar report, which is more important? >> it is so hard to say. you know, i think it was yogi berra who said predictions are hard, especially about the

future. remember, the housing market is cyclical. i think it is emotional commodity for people. i really wouldn't be able to tell you which one for sure. it depends on how people feel and their circumstances dictate what will be. >> we are looking at the rate which is 6.99%. i'm staying in my house. bess and john, thank you very much. coming up on "worldwide exchange," following the steady as she goes call from the fed. what is a busy week for the global rate cut and the bank of england. the full rundown after this.

[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. ♪♪ ♪♪ awkward question... is there going to be anything left... —left over? —yeah. oh, absolutely. (inner monologue) my kids don't know what they want. you know who knows what she wants? me! i want a massage, in amalfi, from someone named giancarlo. and i didn't live in that shoebox for years. not just—

with empower, we get all of our financial questions answered. so you don't have to worry. i guess i'll get the caviar... just kidding. join 18 million americans and take control of your financial future with a real time dashboard and real live conversations. empower. what's next. before you use ai to transform business, accelerate growth, predict trends, you need to begin with trust. introducing watsonx governance.

helping you govern any ai, as data, models, and policies change, so you can scale it responsibly. let's create ai that begins with trust, with watsonx governance. ibm. let's create. welcome back to "worldwide exchange." time for the "global briefing." other central banks may signal they are not close enough to lower the borrowing costs. the bank of canada was the first g7 central bank to cut rates this muonth followed by the ecb. most mochsves were followed by

higher data. and china's property sector continues to hit household consumption and adding pressure on beijing to shore up growth. adidas launched an investigation into claims of the bribery claim in china. a whistleblower claiming millions of embezzlement in euro. coming up on "worldwide exchange," how one of the poorest regions in china is challenging the u.s. and the rest of the world in the auto industry. our eunice yoon has a closer look at what china is calling the new ev capital. that's coming up when "worldwide exchange" continues. stay with us. some people say, "why should i take prevagen?

i don't have a problem with my memory." memory loss is, is not something that occurs overnight. i started noticing subtle lapses in memory. i want people to know that prevagen has worked for me. it's helped my memory. it's helped my cognitive qualities. give it a try. i want it to help you just like it has helped me. prevagen. at stores everywhere without a prescription. (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. rich is being able to keep your loved ones close. and also send them away. rich is living life your way. and having someone who can help you get there. the key to being rich is knowing what counts. (office chatter) 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? can ai help your people work... without all the workarounds? feel better. make customer service work the way customers expect? that one. make your old tech work with your new tech? thank you. and todd here is wondering, can ai do all that... now? no pressure. 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. because when your people work better, everything works better. so what are you waiting for? let's get to work. idris elba works here? mm-hmm. ya, he's super nice.

welcome back to "worldwide exchange." we are looking at shares of byd after the report that berkshire hathaway sold nearly $40 million worth of shares. 40 million hong kong shares according to the ev maker. this happened on june 11th. this holds byd below 10%. new report shows that berkshire

hathaway sold 1.3 million shares of byd. a deal worth $40 million. a deal that happened on june 11th. the holdings below 7% for byd. cheapkeeping onchina. one province in particular is the epicenter of the ev strategy. we have eunice yoon with more on the story. eu eunice, good morning. >> reporter: frank, the g7 nations criticized china as harmful overcapacity. as i found out in western china, you can understand their concerns. if you are interested in a chinese ev, you might want to visit the china's southwest. thiscity of 4 million people and the province brands itself as the ev capital. the city produced half a million electric vehicles of all types.

some made at the energy factory. he is saying it is competitive. the cost of manpower is low. the logistics cost is low. the industrial foundation is there. this is home to five major state-backed carmakers. we're on our way to another automaker which is famous for the elite. a half mile away is another company making evs. and this joint venture with gm produces a popular $4,000 ev. the aim is to produce more than 3 million evs a year by 2025. it has fallen short. data from japanese research firm shows the city's factories could have the capacity to produce three times as many e vvs.

it hopes to refv up production. it's groundless he says. if your cost is low thanks to your scale and price is more competitive, anyone can compete, right? what the chinese see as competitiveness, many other countries view as unfair trading practices. the u.s., europe as well as turkey among other countries have been raising tariffs on chinese evs, frank. the chinese government is threatening retaliation. >> a lot of talk about retaliation and tension with the g7 nations. you hit on the overcapacity issues. is there any concern about even more retaliation or economic response? >> reporter: there's absolutely a lot of concern about retaliation. in fact, you mentioned europe.

the eu had made the announcement they were going to slap pretty big tariffs on chinese evs. about 50% per car. that's really big and today, the commerce ministry announced they were launching an an investigation into eu and eu pork products. we could see retaliation in that form against eu pork and dairy products. it looks as though now the chinese have made that announcement. they said the investigation is going to last about a year. it could be extended to a year and a half. it's another big concern among the european and other players. >> this is really heating up now. i don't know if the audience knows, but china is the biggest pork importing nation in the world. eunice yoon, great reporting as always. good to see you. coming up, we have the one word that can best describe the

trading action today and our next guest is throwing cost water on the red hot trade. if you miss "worldwide exchange," check us out on spotify or other podcast apps. more "worldwide exchange" coming up after this. chewy, a citi client, uses citi's financial expertise to help drive its growth and keep its supply chain moving, so more pet parents can get everything they need... right when they need it. keeping more pets, and families, happy. ♪♪ for the love of moving our clients forward. food isn't for just fuel to live.ss.

it's fuel to grow. my family relied on public assistance to help provide meals for us. these meals fueled my involvement in theater and the arts as a child, which fostered my love for acting. the feeding america network of food banks helps millions of people put food on the table. when people are fed, futures are nourished. join the movement to end hunger and together we can open endless possibilities for people to thrive. visit feedingamerica.org/actnow

welcome back "worldwide exchange." it's time for the "woiex wrap-u" we have neel kashkari saying it is a pre-ddiction likely to cut rates in december. sources tell cnbc that starboard value built a $500 million stake in autodesk and pushing for changes at the software company. shares are down 7% this year. fisher investment is selling a stake in the company to private equity firm advent international. it is the subsidiary of abu dhabi. the biden administration stands ready to release more oil from the spr if gas prices surge this summer. energy adviser telling the f financial times that the prices

are still too high. the summer box office is getting a boost as "inside out 2" is raking in $155 million in the opening weekend. a strong start there. here's is what to watch on the trading week. we get earnings from lennar and kb home and kroger and darden restaurants. the bank of england meets on thursday and is expected to keep rates on hold. look for home sales and housing starts and retail sales. the nasdaq and s&p coming off the seventh positive week in the last eight. let's talk more about the markets and the week ahead with jeff kilburg, ceo of kko financial. i heard one of the best centers and nose guards in the history of notre dame and friend of the show. you have a great resume. >> great to be here, pal.

>> an interesting thing. markets coming off the highs. give us your "wex" word of the day. how do you see today shaping up? >> dislocated. that is the word of the day. we are seeing by bifurcation, frank. we continue to see the move higher and anything and everything in artificial intelligence. there is such a dislocation with the data and economy and stock market. i have concerns here of the broader euphoria overtaking the market due to a.i. >> you have talked about euphoria. the vix dipped below 12 last week. what do you make of that? there's so much going on. a lot of questions of fed cuts and questions about the economy if you listen to some of the people out here.

why is the vix so low and what does that mean? >> mike brings up a great point. you can look through the lens that everything is going to be okay and move higher. some say that is complacent. when you see the vix, that was the lowest close at 11.95. that is the low of the close of 2024. that is illuminating the fact no one is buying protection. i'm not trying to throw shade or cold water on a.i. look at the profitability. look at the companies making money. nvidia continues to print money. we were aligned in my 30--year career. i remember the tv maker fujitsu. they don't make tvs anymore. the profit margins get attacked and you will see the marketplace move. the top three stocks of the

world. microsoft, apple and nvidia are taking up 20% of the s&p. nvidia is in over 500 etfs. if you see a cooling or profit taking, remember nvidia is up 800% since january of 2023. any pullback will very broader market index impact. >> 20,000 -- i remember this company. i'm trying to google what you were talking about, jeff. i want to go back to the bullishness on wall street. are you looking to change your view at all? you are looking to change your view? they are willing to say a.i. might lead us to goldilocks. do you think that is possible? 6,000 or soft landing or goldilocks situation. is this realistic?

jeff, if i cut you off -- >> frank, you see the momentum. absolutely. i think there is a little bit of v vulner vulnerability. they can be obtained, but you have to be prudent and markets don't run in a straight line. we had a pull back in the s&p. i think volatility would be a healthy component for the marketplace to see some back and forth. i see 4,950 on the s&p before the election. what is the market price in? will we see an interest rate cut in september? will the market move lower off that anticipated he sflent. >> home depot is not in a straight line. we have two big housing reports coming up this week. why buy this stock right now with so much uncertainty with

cuts that would help the housing market and help home depot's business? 12k3w4r >> i think the housing market is more illuminated. frank, i'm trying to position portfolios back into the cyclical names that have beaten up and not participating in the a.i. theme. home depot, which is a blue chip name, and a name we want to known. people understand the housing market has a shortage out there. i think there will be a demand and people will continue to fix up their homes. home depot, as boring as it is, you want to see continue to move up. >> i want to get to other picks. lockheed martin up .50% year to date. didn't that priced into that stock? we have wars in europe and war in the middle east. what is a catalyst for this stock? >> risk happens fast, frank. i have been doing this for 30 years. the tension with the u.s. and

china over the strait of taiwan is priced in. i think the name like lockheed martin could see a move higher if we see rhetoric or actual tangible actions happen in the strait of taiwan. >> you have one other pick. fedex. earnings coming up next week actually. what are you expecting from the earnings to make it a buy right now? >> profitability. as long as the consumer strength is there and people continue to move packages around, i think there's health in the name. i think there is an opportunity for fedex to go higher. >> you have given us value names. why do you think value is the play right now? >> because of the dislocation. it goes back to the market manner right now, the equal weighted s&p 500 compared to the market cap weighted version signals the top and bottom. that value has been taken away.

there is a lot of value in value. we are in the first couple innings of a.i. i'm still invested in that. you have to see all good parties come to an end. the lights are not on yet, but flashing and it is time to go home. >> patience is the hardest part. jeff kilburg, thank you very much. one quick look at futures as we let you go. futures have been mixed all morning long. the dow would open 60 points lower. that will do it for us. "squawk box" starts right now. good morning. red flag for platforms for facebook and x. the u.s. surgeon general wants to put a warning label on social media platforms warning parents of the mental health risks for children. debate countdown. ten days away from the showdown with president biden and former president trump. we will tell you about the rules for the event that the campaigns

agreed to. and big weekend at the box office. d disney's pixar's "inside out 2" with the highest debut of the weekend and welcome news. it's monday, june 17th, 2024 and "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen. andrew is off today. welcome back, joe. >> thank you. thank you. >> it was a fast turn around. >> it was. i was on the top of a hotel in a pool and you