it is 5:00 a.m. here at cnbc global headquarters. i'm frank holland. here's your "five@5." gaining ground. stocks look for another win, sounding the alarm over the ai trade and market leadership. a new spin on fedex. they announce a pop of its freight business and provides a solid guidance. volkswagen is going to in vests up to $5 million in rivian. shares of rivian are skyrocketing this morning. nvidia tries to add to its rebound after the historic $550 billion selloff. later, federal legislators

are taking the railroad to task. it's wednesday, june 26th, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ good morning, welcome to "worldwide exchange." thanks so much for being with us. will it ooh is get you ready for the trading day ahead. we're going to get a check on the u.s. futures. kind of a mixed session yesterday. take a look. somewhat mixed this morning. the dow looking look it would open slightly lower. the s&p in the green. the nasdaq is up almost half a percent and nvidia up almost 2% in the premarket, pushing that index higher in the premarket. the investors awade's inflation report. we take a look at yields. the bench market, 4.27. ticking up very slightly. a few basis points yesterday

after we heard from some fed officials, but after last week, pretty much moving sideways, 5 basis points higher in the last week. that is your morning money setup. we're going to start with fedex. it's popping at the open -- ahead of the open, show uld say. an assessment of the company's freight business, a big reason for the move. shah irs are up over 12% with investors eyeing a possible spin or sale that could unlock value in the company's ltl trucking business. the global logistics giant announcing plans for a new $2.5 billion share buyback. fedex expects low to mid single-digit revenue growth and expects earnings to fall. analysts predict growth of around 3%. much, much more on what insiders are saying about fedex coming up later in the hour. shares of rivian going up.

volkswagen plans to invest $5 billion with an initial investment of $1 billion with the recollect expected by 2026. shares of rivian you can see popping out of the open, up over 37%. we're also looking at shares of nvidia, looking to keep the rebound going. shares are higher this morning, up almost 2.5% after closing up nearly 7% yesterday some of this move marks the first time since 2021. nvidia shares gained 6% or more after losing 6% or more in the prior session. the rebounding coming after a three-day slide for the stock that wiped out more than $500 billion in market value. again, shares of nvidia up just about 2.5%. turning our attention back to the broader market and the recent one for stocks that could possibly spell trouble for inve investors. in a new note the bank says the recent run-up in tex could either send the index sinking to

4,000 or soaring to over 6,600. they say the latter would put ai in a bunnell territory, very similar to the peak reached back in 2009. bond traders are now betting on three percentage points worth of cuts in the next nine months which would bring the fed fund rate to 2.9% by next march. ivory, always good to see you. good morning. >> likewise. good to see you as well. >> i want to go to that soc gen note for a minute. do you believe we're at a critical juncture. do you believe we're in a bubble territory? in your mind it could go from the 4,000s to 6,600. >> i don't.

if you look at what the market and financial assets respond to, it's really liquidity, and is the fed increasing liquidity on the balance sheet or not? the cbo came out with baujt forecast of $1.6 trillion and then they revised it back in june -- this june saying it will be $1.9 trillion. that's because of mandatory expenses and interest. that's going to continue to grow, and the fed has to monetize the debt. and by that i mean the fed is going to create money out of thin arabi buying bonds on the balance sheetses from individuals and putting that on the balance sheet. ite gowan from $1 trillion to $7.5 trillion since 2008 and financial assets respond favorably to increasing liquidity. and so i don't think -- i thdon think that's going to change at all. >> i want to focus on the markets for a minute. we're hearing a lot of talk about the trade moving from ai and kind of broadening out to cyclicals with the thought we're going the get that rate cut

later. are you also advising your climates to do the same, basically spread out investments away from this tech trade that's been working all year long? >> no, i ooh going to your weight tech because if -- the reason i mention liquidity is because we're going to get one rate cut. i think were ooh going to get one rate cut. the cpi looks good in august. car prices have gone down 9% your over year rent and shelter is moderated. that will reaccelerate in the second half of the year, particularly in the beginning of next year when shipping costs -- there's like a 18-month or one-year lag. we'll get a re-acceleration of inflation toward the back half of the year, beginning of next year. i think the reason tech will do well is they're going to have to affect the balance sheet.

>> ivory johnson overweight on tech. stick right there. we have some exclusive data we want to get your reaction to. we're looking at the second quarter cfo survey where we get insight on the economy, de decision-making and much more. the fed remains top of mind, especially the anticipated cut from the federal reserve. 30% of the cfos expect that it will come in september. others believe in cement or november. it's important to note that a quarter of cfos believe we will not get a rate cut this year. this survey was taken between june 3rd and june 20th. during that time we had a fed meeting where fed rates went unchanged. we got a much better than expected cpi report. we saw the s&p 500 top 5500 for the first time ever. it was in this environmental that the cfo gave high marks on the battle against inflation. 71% say the bank is doing a good job. that's the most since one of our

surveys since 2023. still, cos had some concerns about when inflation will hit that 2% target. 29% say it will happen in the first half of next year. a quarter say in the back half of 2025. but look here. look at the bar chart. 42% say it would take until 2026 or possibly even later to get back to 2%. those inflation concerns are closely tied to recession concerns. more than 40% of cfos believe we will see a recession in 2025. more than a quarter believe it will come in the first half of the year. still, we have a third that are optimistic, a third are confident we're on the fact for soft landing. ivory, i want to come back to you right now. you already gave your take on this, but i want to get your view operate cut expectations. more than a third of the cfos believe we will see a cut in september. >> i do. if you look at the base effects, you're going to compare 3.25

with 3%. the year before, 8% two years ago. i oohs going to look dovish, and it's going to happen before the fed's meeting in september, by november. the rate cut comes in september, but i think that's going to be a re-acceleration. remember, energy is still in the bullish trends. there are a lot of other components that haven't gone up as much as we thought they will. if you look at real growth gdp, it's been shallow, and so i agree with the cfos who think we're going to get more inflation and we'll get one rate cut. whether or not we get a recession, it's too soon to know, but what drives gdp is work productivity, demographics, and government debt. what we saw last year is any time those two factors decline as they have been, the government steps in. so we had an industrial recession last year, a corporate

profits recession but the government came in and picked up the slack. i would say is it's going to continue to happen. >> we have to tleev con very sanction. i really appreciate your time and insight. we've got a lot more to come on "worldwide exchange," including one word investors have to know today. first, unconscionable conduct. federal regulators slamming northern southern over its investigation in the derailment in east palestine, ohio. we have highlights from the hearing coming up. a big win from nuclear power and the boost it could have for alternative energy stocks. and later volkswagen's $5 billion deal with rivian and how it could affect the ev success tore. we have a busy hour ahead when "worldwide exchange" returns. >> announcer: cnbc "worldwide exchange" brought to you by workday. finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star.

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welcome back to "worldwide exchange." new developments on the train derailment in palestine, ohio. not holding back on the hearing yesterday as the agency finalized its probe into the manner. jennifer hominy slamming the investigation, accusing the railroad of dragging its feet and abusing the investigation process. >> the parties are not permitted to manufacture their own evidence and develop their own set of facts outside of the ntsb

investigative process, which is exactly what norfolk southern did. >> taking a look at shares not moving in the premarket, shares are down more than 16% since that derailment. moving on, new technology will require even more power and natural resources with demand set to rise in the coming years. congress recently passed a measure to cut a lot of the red tape in the way of billing the next generation of nuclear power plants and speed up the transitions to nuclear energy. we're joined with much more on this story. emily, good morning. >> good morning, frank. you're right. congress is looking at the ai and electric vehicles and they're looking at this increasing need to have more energy, and companies are turning to nuclear as a potential solution. washington wants to make it easier to start new nuclear plans.

a bipartisan bill has cleared both chambers of commerce and is expected to be signed by president biden. it will save months of time and potentially tens of millions of dollars to launch the next nuclear plants with this advanced technology. democratic senator tom carper who backed the bill said while it's important, it's currently taking too long to get nuclear plants approved. >> it was taking forever to build huge power plants in the southeastern u.s., close to a decade, and that's just not good. all were safe, and it was a much better process. we can do better than this. >> china is set to surpass the u.s. in nuclear generated electricity by the end of the decade. the u.s. is trying to catch up. bill gates is invests in t

terrapower. it would streamline the review process, reduce regulatory fees which could cost tens of millions and gives the regulatory commission more flexibility to invest resources to oversee advanced nuclear reactors and kind of focus a little more on what the future is going to be. there are some concerns that a few lawmakers raise that the bill would weaken safety and security oversight, but at the moment, you've got climate-conscious democrats, market-conscious republicans that are both now kbiving the green light and saying, hay, we want to make sure the advanced nuclear companies are able to get online and get online quickly. sticking with energy, you

have the metals used for power. producers scramble to develop and expand global supply. take a look at the chart. koppers up 17% over last year. nickel is down 15%. lithium prices have plunged 70%. joining us now is kate richard with a private equity firm that invests in energy and natural resources. kate, great to have you back. it's been a while. last time you were here, you were pregnant and your baby is almost 1 year old. god to have you back. you have insight on energy and the energy transition. we're talking some of these metals. they're a commodity and they're cyclical. where are we at? >> any time they do well it's because you have more demand and supply and that's fundamentally what we're seeing on the energy transitional metals which are chiefly copper but also nickel and cobalt. when we look at the battery

chemistries today, 80% of those options for how we make batteries in this world include copper, electricityion, and nickel. the issue with nickel is it's one of the most purest elements on the economic table. it will fuel the energy for the refining of electricityion, not the discovery of it. copper and nickel are different. they're much more resource-limited and the fundamental sib mining capex is down 40% since 2013 in nominal terms. if you think about it in real terms, even more, and explore raugs for key metals that will feel the energy transition is down 30%. >> okay. so i want to get back to the investor impact. when you talk about the decline in capex, what does that mean for investors who are trying to invest in the global supplier, obviously benefit that supply may be limited. does that mean right now is the time to invest? >> yeah. you can see with the volatility

especially with some of the key metals you have this shark fin of demand that's coming and you don't have the mining companies investing in supply, and that will put pressure on pricing. if you look at gold stocks, which gold is a precious metal, obviously not involved in the energy transition bks u they're trading it 4 1/22 times. copper, is the key metal because of the conductivity of that metal. those stocks are trading at 6 1/2 times eat da. so you're buying it at a low premium, but you literally have a transition that will happen without copper and if you look on the websites, you can see the mining sec tor understands. >> that's the biggest continues upside going forward. >> there's no replacement for copper in battery or power transmission that has the risk of fire. and it -- you know, it is the second most conduct active element on the periodic table.

that's what the transition is about. it's about getting conductivity to battery and power. >> they're trying to mitigate risks. what you're looking at is basically nationalism. you gave us great stats. chile and peru, that i have 36%. nickel, as investors look at this, is this a concern? how should they view the fact that some of the sources of these key metals is concentrated in certain areas? >> two thing, you have big supply risks like we' 've seen chile and peru investing. we want to be careful about political risks, but it also means you is big powerful producers with an oligopoly over the market like opec does with

oil. indo sheena does control 36% of nickel supply and is looking at performing with the cartel. i think this is the energy transition trade that's not priced in. coming up on "worldwide exchange," we have details on that new report that shows big growth and big upside for one sector of the entertainment economy even as other parts of the consumer spending are ayitusning out . . st wh . 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.

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exchange." turning to the consumer, investment growth in one area of the economy even as consumer spending in other areas remain flat. we've got baroness of betting with contessa brewer. once you're here, we know what it's about, contessa. good morning. >> if i coming back every morning with you, frank, and i get a new moniker, it makes it worth it. let's set the alarm evener earlier. there's a new report from morningstar that says gaming stocks are a new bargain. there's a report highlighting the growth for opportunities for the group fueled by sports betting and i-gaming. t consumers seem to have a voracious appetite for gaming.

if you look at the year-to-date return, caesars is off by some 20%. mgm is down as well. the only one of the group that is up, flutter, which owns fanduel and draftkings are up and positive for the year. look at penn, up 30%. you look at illinois tax hikes and crackdowns. but also investors are looking at the competition among sports books and that grabbed the spotlight. fanduel owned by flutter and draft kings have a clear lead. betmgm and caesars have turned a profit in digital and they expect the margins to expand through 2026. gambling sales are outpacing retail. revenue is outpacing broader gdp and grappling for new streams of tax revenue, the expectation is more states are just going to give in and embrace new ways to

ga gamble. the most undervalued according to morningstar is caesars, which it says is trading at a 48% discount. mgs trading at a 28% discount followed by wynn. those, he says, are some attractive valuations. >> i want to go back to something you mentioned. penn, shares down almost 38% year to date and there was a downgrade yesterday. what's going on with penn. you mentioned people are out there gaming and gambling. why is penn stock down so much? >> penn has a lot of regional casinos, and regional casinos are mostly flat. the reason why penn's stock has been so volatile is there's so much pressure on penn to perform with espn bet. it paid a lot of money to disney to have this partnership where its could rebrand is sportsbook as espn betting and while it has in some places gained a little bit of market share, it's not performing the way investors would like.

add onto that that that there have been activists for penn to sell itself. last week reuters came out with a report. listen, i've got to tell you, there have been a lot of sources flagging this story that penn may be for sale, that boyd may be into it. there's a lot of skepticism with experts within the industry about whether this is a company that's truly up for sale. but that's driving some of the volatility with the share price. >> our contessa brewer, always great to see you. coming up on "worldwide exchange," one more week. cdk issues an update to car dealerships that are still reeling from the massive hack attack that's brought parts of the entire industry to a anti.l we'll be right back with much more on that story. at morgan, old school hard work meets bold new thinking. (laughter) at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities

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welcome back to "worldwide exchange." i'm frank holland. thanks so much for joining us. let's get you ready for the trading day ahead. following a mixed session yesterday, the dow snapping its five-day win streak. take a look at futures, still a mixed picture. the dow looks like it would on slightly lower. the s&p is firmly in the green. it ooh is the nasdaq really moving higher this morning, up just about a half a percent. we're seeing that move higher. we want to switch from your money morning setup. that's fedex. shares are surging after the company beat top and bottom line estimates, aless announcing plans for a $2.5 billion share buyback. analysts tell me and sources tell me the company announced an assessment of its freight business. that's what's pushing the stock higher. it's up 13.5% right now.

i spoke with someone on the assessment. it will continue through the rest of the year. fedex is favoring a plan to spin off. the goal would be to lock value in that portion of the company which management and many analysts believe is currently under valued. fedex freight alone could trade at a multiple. old dominion and xpo are at 28 and 29% earnings. fedex is trading at 14 times. they expect to benefit from ongoing efforts to optimize its network by combining the express and ground. we want to turn our attention now overseas. let's see how europe is shaping up. arabile gumede is in our london newsroom with much more on the early action. >> yeah, frank. i mean, one thing is for sure, right? when you saw that tech selloff a

few days ago, one would have wondered how big that would have been across the globe. we saw a bit of a selloff globally. today the stocks have come back. you have seen gains as well. although you have seen a giveback of some of those gains early on, the markets here opened for around 2 1/2 hours or so. you're seeing the ftse 100, one of the leaders, up 14% to the good, half a percent higher for the dax as well as the autos managed to shift things a little higher. your sectors here as well managed to move up. the technology stocks, we've been looking toward them and they're at the top of the stoxx 600. 1% higher. following on from the nvidia trade you've just been speaking about, a rebound there. basic resources also managing to move higher. on the downside you're seeing autos in decline, frank. >> arabile gumede live in our

newsroom. always good to see you. we want to turn our attention back to the shares market. nvidia is higher after announcing a rebound in the stock yesterday. the rebound bringing the stock out of correction territory, but a turn lower may be welcome news for investors who are quote, unquote in the know. a recent cselloff shows a trade around 4 le $1 after hitting a wall at 486, wu could see further downside as the investors rotate out of the call trade. there's a 66% chance of success. you can read the full strategy by heading over to cnbc.com/pro. let's bring in sarah kuntz. good to see you. good morning. >> good morning. >> we'll let everybody read the

setup on the trade. i want to get your sense. you're deeply invested in tech. would you place any bearish bets or any attempts toward nvidia? >> no, and i'm not exactly an nvidia bull. the reality is treating one of the biggest and most valuable companies in the world right now like it's any other kind of meme stock, i think, is dangerous. nvidia is such an interesting name right now. on one hand you have names like qqq, etfs having to buy a ton of it sort of because of the rule-based indexes, and you have a name that's held almost 80% by retail investors. so unless you see a huge u-turn by that retail investor who we know is not always super logical, i think that it's really, really scary to bet against that name, especially after the split when you see the price and you think, hey, that's cheap. no, it's just divided by 10. but it still feels, i think,

retail-investor cheap right now. >> i know you say it's not a meme stock, but it has a large retail value. roy. to go to the tech trade in general. any concerns this might be a bubble similar to what we saw back in '99, 2000, saying the s&p could go all the way up to 6666, but that would be with high concentrations and also other setups there and it could swing down to around 4,000. are you worried about that kind of volatility in the second half of the year? >> look, for people like me who were in elementary school the last time that happened, the reality is that was a very different kind of bubble. you had companies that were literally just spread sheets, right, or a hand sock puppet that were commanding these sky-high valuations. these are for the most part real companies. even tesla. they have real cars on the road that are usually safe. so the reality is this isn't

'99. this certainly is not '99. now, is this something where it could look a little more like 2008 in the financial sector? the financial sector where you say those are real banks and, you know, they were kind of overleveraged and they couldn't get out from over their skis, i think maybe something more like that, but the reality is the last crisis -- the next crisis almost never looks like the next crisis, and while i do think the names are frothy, i don't think it's a repeat. >> you're like many other people. you're rotating a bit out of the tech trade right now. you're going to have to explain this thesis to me. you like lvmh and chanel, but you like them because of the french election. make this one make sense, sarah, because the french elections are rattling every other investor be you. >> i think after living through the u.s. elections a couple of cycles about you get used to it. the reality is i think there's some weakness in the french market because of the

uncertainty around the election. the reality is for these huge luxury brands, it's not just about france. france is not their biggest market. that's where they get their heritage from, and that's where their leadership is from. for the longest time, the biggest markets have been the u.s. they have been looking in asia, middle east, russian consumer. they're not tied to the fate of france. it's time too buy into some of that weakness. with lvmh, h there are rumors they may take over another. those kinds of moves, if they feel thank can get them through regulatory control and if t they're not listening, then you have an even bigger conglomerate. they're buying the same leather, working with the same craftspeople. i think it's something you don't

want to overlook, particularly when we're about to be in the european sum eared you know the american tourist is going to be buying. >> sarah kuntz. you worked for chanel. one firm thinks better days mabey ahead for the ev giant. we'll have that and much more when "worldwide exchange" returns. stay tuned. ♪♪ chewy, a citi client, uses citi's financial expertise to help drive its growth and keep its supply chain moving, sayre right when they need it. keeping more pets, and families, happy. ♪♪ for the love of moving our clients forward. for the love of progress.

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exchange." time now for your morning call sheet. we start with tesla and a buy rating and a $265 price target. stifle says they're looking to deliver growth with advancing of model 3s and model ys looking to boost capital. bmo capital says they plan to upgrade u.s. steel. and wolfe research upgrades robinhood following a meeting with robinhood's cfo. wolfe says it's more concerned about its strength and growth potential. coming up on "worldwide exchange," we have the one word every investor needs to know. rivian with a huge advance. why the german auto giant is betting big on the startup. that and much more when "worldwide exchange" returns. stay with us.

welcome back to "worldwide exchange." volkswagen will invest up to $5 billion in the ev startup with an initial investment of $1 billion. the shares are up just about 37.5%. the additional $4 billion will be paid through 2026. following the next generation of battery powered vehicles and software. shares are higher today.

shares of ririan were down 50% this year before this surge as the company works to ramp up production and keep up with deliveries. rivian loses $39,000 for every vehicle the company builds. joining us now is tim higgings. good morning. good to see you. >> good morning. >> reporter: you know what caught my eye? obviously the billions of dollars, crucial. next generation, vehicles and software. what are we talking about? is this autonomous driving or something else? >> this is something else, the software side of the vehicle. kpar companies have been struggling to do for year as what silicon valley and others have been doing for the smartphone in the car. that's where we've seen tesla, the likes of rivian and others. volkswagen itself has tried to do software for years and years and has essentially burned

billions of dollars and just had products that have had lots of glitches and lots of problems and a huge frustration and embarrassment for folks in wolvesberg. >> on the other side, be e sides the billions of dollars, which i'm not trying to minimize it at all, what does rivian get out of this deal with volkswagen? >> they hope they would get hundreds -- not hundreds but generations of manufacturing prowess. really this is a lot about the money. rushian has been burning through a lot of cash. like a lot of electric vehicle startups, cash is kick. this is a tax investment business. they need money. those vehicles as you point out they even been making, they have been burning the money pg they need the cash to keep doing that. it's not unique to them you go

back years and years ago. tesla was in a very similar position and it deals with the likes of toyota and mercedes-benz. it helped them get over the hump until they could become viable. >> here's a big question, tim, and i hope you have the answer. rivian is losing money on vehicles. at the same time volkswagen is facing pressure when it comes to evs and its home market. chinese evs are coming in at a lower cost. how is a company making money on ev, teaming up with a company losing price. how does that work long term? >> the old automotive industry math. >> this had better be good. >> they'll get more scale as they kind of expand across volkswagen. it's a game of pennies. the bigger scale they get, that i hope to take out more cost. >> so long term, does this help volkswagen recapture shares in

europe and even more when it comes to evs? >> the long term is it will help volkswagen in the software business where they really have struggled. one of the reasons car companies struggle with software is they the end to get this stuff from suppliers, so the risk is they won't have this capacity in house. the challenge is they haven't been able to do it themselves, so they have to work with someone who has expertise in it. >> tim higgings, good to see you. thank you very much. coming up on "worldwide exchange," troubled waters ahead. our next guest sees speed bumps that could take wins out of the rally sales. >> first cnbc is celebrating pride month as we head to break. here's chief officer julia white. >> as a mother of a nonbinary child, proud mother, i want my child, all of my friends, my colleagues in that community to

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welcome back to "worldwide exchange." faa is announcing a new action on boeing plane. the move coming after reports of cracking around a bathroom surface panel which could result is a flight depressurization and reduce integrity. gm's cruise names a new ceo. openai is releasing the delay of it voice feature. it wants to make sure it can safely process the request from its millions of users. cdk says its outage lived to a cyber attack will likely last through sunday, telling dealerships they may need to

make plans to deal with their end of the month-finance plans. solara has a reported valuation of between $10 billion and $13 billion. the report suggests its ipo could come as soon as this week. there's progress depress software. shares of progress, they're down 11%, down from their august 2023 high. on the economic front, we get new home sales this morning and we're watching for earnings from micron, general mills, and pay paychex. turning back to the market. the s&p and nasdaq looking up. the dow would open about 25 points low eer. the nasdaq and s&p firmly in the green. for more let's bring in gren branch, founder and managing partner at branch global capital

vuzers, cnbc contributor, and notable friend of the show. good to have you back. >> good to be here, frank. >> how is the day shaping up. what's your w.e.x. word of the day? >> my word of the day is buy fur indicated. my personal view has become buy fur indicated in what i think will play out in the short term versus the longer term. in the short term i've had to temper some of my bearish posture just because the catalysts i thought would be catalysts didn't play out in the market. long term, remain bearish and we'll get into the reasons, i'm sure. also the market is buy fur indicated. when we're seeing the tech leadership like yesterday, i expect that to continue. as as we enter the cycle, frank, i think the investors will start to concentrate on the companies putting up 20% earnings growth

even as the environment becomes a lot more hazardous versus the rest of the companies that will put up low single digit earnings growth. >> the quote, unquote hazardous environment, i'm throwing one over the plate right now. are you worried it's becoming a bubble? we highlighted a soc gen earlier. the downside case is if this is a bubble, it could drop down in the 4,000s. >> look. you know that my target for a long time was at that area. i'm having to rethink that, frank. the reason is tech makes up so much of what the s&p is now. the top three stocks, apple, microsoft, and nvidia, make up 20% of the s&p at this point, and so i think that the capitulation that would need to occur in the ai mark, in the crowd market, i have a hard time seeing that when these companies are going to continue to put up

20% earnings growth. >> not bearish on the tech trade? greg, you're shocking us, really shocking us. >> for now, for now. >> i want to hit on what else we're talking about on this show. they believe we're going to get a rate cut in september and then in november and december. where are you with respect to rate cuts and how important are they to the rally we've seep so far? >> it would be interesting to see if those same respondents were those who thought we were going to get it in march. i'm maintaining my view. the governor came out and seconded my view and said she -- she probably stated she doesn't see any rate cuts in 2024 and she's a voting member. there was another voter member we saw in the may 1st votes that also indicated they didn't foresee rate cuts and the two combined put it on the table. if you had asked me in january, frank, if we would not have six

or seven cuts but we would have skooer cutsing and that's the scenario that plays out, and the markets play here, i would doubt any normal investor would say that's what we anticipate. other things have powered us through. >> speaking of that, it's been the ai trade. your pick for us today is oracle, kind of seen as a lower valuation play. shares are up double digits since earnings. why get in now after we've seen a pop of the earnings? >> right. and so the question becomes has it been propelled as much as it should be. i think when you look relative to the other ai names you can make the argument it hasn't. there's still the supply constraint in the ai crowded market. they pup up 42% revenue growth in the structured cloud services. when we widen the exposure and we had this conversation, we were looking for names. in addition to the pillars, we

advocated looking at things like cybersecurity, and like yore alkle that haven't participated relative to those pillar names. >> greg, great to see you as always. your pick is oracle for us. that's going to do it for "worldwide exchange" p one quick look at the futures, kind of mixed all morning long. that's going to do it for us. "squawk box" starts right now. \ s good morning. nvidia's futures looks likite goes doing continue. fedex shares were higher and the company reported some progress in its multi-billion dollar cost-cutting efforts. >> this one, kind of interesting. volkswagen announcing an investment up to $5 billion in rivian. you know those happy look like

thomas and the tank engine? stock jumped by as much as 50% overnight. today if you're wondering, it's wednesday, june 26th, 2024, "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. wither ooh live at the nasdaq market site here in time scare. i'm melissa lee along with joe kernen. becky and andrew ross sorkin is off today. >> two days in a row, do you feel the effects? not getting up with me but getting up at 4:00 i