it is 5:00 a.m. here at cnbc global headquarters. i'm frank holland and here is your "five@5." kicking off a new month and new quarter with the questions surrounding the strength of the rally ahead of the key economic report this week. if the first half of the year was all about the fed, attention appears to be shifting to the 2024 election and reaction to the debate. we'll take a closer look. also breaking this morning, boeing seals a deal with the supplier and spirit aerosystems and the right takes the lead in the snap elections in france.

and digging into the a.i. trade and we will see if the stock can keep up the recent rally. it's monday, july 1st, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ good morning and welcome to "worldwide exchange." thank you so much for being with us and get you ready for the trading day ahead. we kickoff the second half of the year. the futures are mixed right now. you see the dow would open up 20 points higher. s&p is flat. the nasdaq moving very slightly lower. stocks are coming off a monster first half of the year led by tech stocks that helped the nasdaq gain more than 8% last quarter and 18% last month. we are checking the bond market this month. take a look at yields. the benchmark at 4.41.

creeping up a few basis points in recent days. also looking at energy. oil coming off a rough second quarter where it fell nearly 2%. oil up .13% for wti and brent crude. we are watching europe with the relief rally under way across france lifting banks and the broader markets following the parliamentary elections. we will have more on that in a moment. take a look right now at the cac up 1.5%. french banks like bnp is up 1%. soc gen up 4.5%. that's the money morning set y setup. now to the breaking news. boeing agrees to buy spirit aerosystems at $4.7 billion. boeing says the move to buy back the troubled subsidiary will

improve safety san quac and qua control. dave calhoun says the close will happen by the end of next year. all of this as the department of justice ready to charge boeing over the crashes and the january door plug blowout. boeing has until the end of the week to submit a guilty plea. l phil lebeau will join us later in the hour. concerns about the health in the market are building with the s&p 500 having the best first half to the election year in almost 50 years. however, that move has been fueled by a few stocks with nvidia and the mag seven accounting for 60% of the return. another way to look at that c concen concentration, the average stock is up 4.1% this year and the

lagging is up 14%. that is the largest under p performance since 1999. let's discuss the latest with alan mcknight. >> good morning. >> great to have you here to the second half of the year. we rattled off a bunch of numbers. stocks accounting for 16% of the s&p gains. are you worried about concentration in the market? >> it is something we are watching and concerned about as it relates to the overall allocation risk, if you will, with the mag seven. the differentiator here is the earnings power and earnings growth allows them to further their gains. that's what we have seen in the first half of the year and we expect in the second half of the year. >> you are expecting the second

half in the year. the second half is an election year. bank of america out with a note over the weekend saying 83% of the time on the second half of the election year, the last century, we have a positive return. positive of 7%. are we wringing our hands about nothing? does the data tell us the second half of the year will be strong pretty much? >> in addition, what we have seen is that july -- >> okay. >> what we have seen with warren buffett talking about moving downhill. >> alan, you broke up just a bit there. we want to move on to one more topic before we let you go. i want to ask about small caps. up just 1%. are we worried that maybe this may be a sign of other deeper

problems within this market? btig out with a note over the weekend saying small caps may be turning from an opportunity to a canary in the coal mine, because you basically. >> we feel it is between a rock and a hard place. it will be a challenge. we would rather be in large cap with little growth rather than the value names through the small cap. >> alan mcknight, thank you. for more on the trading day head, go to cnbc.com/pro for the insights and analysis. we turn attention to the 2024 presidential race and the fallout over president biden's debate performance. the biden campaign raised $33 million from thursday through saturday with more than $20 million of that coming from grassroots donors. this as the biden campaign works through mixed messages from party officials and some of the

president's closest allies on whether or not he should stay in the race. nbc's brie jackson has the latest from washington, d.c. >> reporter: good morning, frank. president biden's family gathered to say he should stay in the race. it raised the $33 million since the debate. president biden and his allies doing damage control over the weekend following the president's lackluster debate performance. >> joe biden has confronted and had to come back from tragedy and trials and tribulations throughout his entire life. the moment we're in right now is a comeback moment. >> reporter: the subpublic show support for the 81-year-old comes at the party. >> it comes at every level of

our party because it is a political party. >> reporter: a poll conducted hours after the debate showing 60% of voters said biden should be replaced as the democratic candidate. those are the short list for former president trump's vice president are standing firmly behind him. >> i actually don't care if joe biden is the democratic nominee because donald trump is the republican nominee. the contrast between republican policies under donald trump and whoever the democrats end up with is very powerful. >> reporter: republicans are also defending concerns about the former president dodging questions and making false claims during the first presidential face-off. >> donald trump was very clear. he will not support a federal abortion ban. >> reporter: some voters remain unhappy with their options. >> they were both going back and forth throwing jabs at each other. we're not here for that. >> reporter: both campaigns hope

to convince americans they deserve another term. the top biden campaign official held a tense call with dozens of donors sunday laying out what would happen to the campaign infrastructure should biden step aside while also stressing he has no plans to do so, frank. >> brie jackson in d.c. thank you. we will have more on the attempts to ease concerns of the president's viability coming up later in the hour. more coming up on "worldwide exchange," and including one word investors need to know today and the far-right victory in the snap parliamentary elections. we are live in paris with the latest. and elizabeth warren casting a spot slight on the chips act and some using the funds how the white house did not intend. and a one-on-one with the

ceo of c3 a.i. coming up. stay with us. we have a very busy hour when "worldwide exchange" returns. stay with us.

welcome back to "worldwide exchange." investors are pouring cash back into french equities after the parliamentary elections and the far-right far from securing majority in the parliament. it is a far cry from the selloffs a few weeks ago.

we have charlotte reed and silvia amaro with the market reaction. charlotte, good morning. we will start with you. >> reporter: good morning, frank. three weeks ago, we were standing here after macron called the snap parliamentary election after his party had a defeat. did his gamble payoff? he is still in third position losing momentum and many more seats, more than 100 seats in parliament. did his gamble payoff in blocking the far right into power? maybe, as you were saying, frank. they gained 34% which is historic for the far right, but they would be shy from the majority. at the moment, the projections happening in the weekend would be 279 seats. that's why we see the positive

reaction in the markets this morning. it looks like the most likely scenario at the moment is a hung parliament. a lot of unknowns still because during this week, there will be a lot of negotiations between the different parties because you have a record numbers of three-way runoffs between round one and two. to have a three candidates in the constituencies. the latest is to drop one candidate to leave the candidate against the far right to beat them. that is the negotiation that is happening the next few days to shape up the kind of majority in the national assembly behind me. what it is looking like is a hung parliament with very, see different blob blocks there wit different views on how to manage france and governing france going forward could look very, very difficult. >> charlotte reed live in paris. charlotte, thank you very much. we want to turn to the market reaction with silvia amaro

standing by in london. silvia, good morning to you. >> good morning, frank. you heard it there from charlotte in the fake of the outcome, what we are seeing as investors are digesting it quite positively. looking at the cac 40, it is trading higher by 1.3% because investors looking at this result and thinking it is not as bad as we originally feared. very briefly, look at the ftse 100. it traded higher by .30%. this was the only manjor board n europe that traded higher by 2.7%. let's digest the french story in more detail looking at the gainers and losers so far in the equity session. we knew going into the vote that the french banking sector had been the one that suffered the most really in the wake of the call of the snap election by the president. at this stage, when you think about the performance we had the

move of 4.2%. credit agricole up 3.6%. all of this because voinvestors are looking at the first round and they may not get the majority as some feared. and at this stage in the session, we are looking at the trade of the euro-dollar. strengthening against the greenback of .5%. when it comes to the bond market, it is important to keep a close eye in the wake of the vote. we have the yield on the ten-year at 3.33% and trading higher to a higher level compared to november of 2023. frank. >> silvia amaro, live in the london newsroom. silvia, good to see you. coming up, we have an exclusive with senator elizabeth warren casting a eye on the chips act and someayot m n have used the

funds as some intended. stay with us. d and engaged. that's because school districts consulted with cdw to design modern classroom solutions with preconfigured hp devices making education immersive, accessible and secure. now, when researchers study elephants, kids learn from 9000 miles away. make amazing happen. hp and cdw.

welcome back to "worldwide exchange." the white house announcing the latest chips act recipient with $6.5 million going to the rogue valley devices. the companies on the receiving end of the larger multibillion

dollar awards are getting scrutiny from washington leaders. we have emily wilkins with more. good morning, emily. >> reporter: good morning, frank. democratic lawmakers are raising questions if some of the companies who received millions or billions in the federal funding for semiconductors used the funds to buy stock buybacks. bae systems in the same period set to receive a an $35 million award from the chips act. intel has received $8.5 billion in chips funds has been approved for $7 billion in buybacks and the ceo promised a healthy dividend last year. so now we have senator elizabeth warren who led the heard and criticizing the companies and

also commerce secretary gina raimondo. the commerce department has warned if the companies don't use the companies correctly. lawmakers said raimondo and her department had continued to, quote, leave the door open for the large semiconductor companies to take billions and move money around and engage in more stock buybacks. now, so far, almost $33 billion of funding from the chips act has been allocated. most of it going to major companies. this is not the first time warren was concerned about buybacks. she wrote to bae earlier this year. bae systems responded by saying every dollar from the grant will go to the micro electronic center and decisions of buybacks were independent decisions. frank, as we hear more about the awards, it will be interesting to see where warren's concerns and commerce department action

goes. >> this is an interesting story here, emily. great reporting. are we still expecting multibillion dollar announcements here? will this impact some awards through the chips act? >> reporter: well, we'll see exactly how the commerce department winds up responding to the letter. at this point, the bulk of the funding has been given through the chips act. now the companies have to begin putting these plans they laid out in place. that is going to be a process for a number of these companies. it will be actually taking some time for most of them to actually get to the point where they have a finished and final product. commerce also told megan cassella they are looking to give smaller grants to smaller companies. we will see what remanins with the last chunk of the grant. >> emily wilkins, good to see

you. as we head to break, we are looking at the eu regulators are set to charge meta platforms with the violations of the digital act. users can opt to use the sites for free while consenting to data collection or pay not to have their personal information shared. the charges are expected this week. it comes one week after the eu levied a similar case against apple. we'll be right back after this break.

when we're young, we're told anything is possible... ...but only a few of us go out and prove it. witness the greatness of anna hall on a connection worthy of gold: xfinity mobile. only xfinity gives you the most powerful mobile wifi network, with speeds up to a gig in millions of locations. and right now, xfinity internet customers can buy one unlimited line and get one free for a year. get the fastest connection to paris with xfinity.

it is just about 5:30 a.m. in the new york city area. there is still more ahead on "worldwide exchange." here's what's on deck. stocks set to kickoff the second half of the year. will the markets be able to keep up momentum? president biden facing political pressure in the wake of the first debate and gr grassroots donors hope to pump money into his return. it is monday, july 1st, 2024. you are watching "worldwide exchange" here on cnbc. ♪ welcome back to "worldwide exchange." i'm frank holland. thank you for joining us. we pick up the half hour check of the u.s. stock futures as we

get ready for the new month and quarter and the second half of the year. the dow is sitting at the highs of the morning opening up just 20 points higher at the opening bell. the s&p is flat. the nasdaq is moving a tick lower since we started the show. the stocks are coming off a stellar half of the year thanks to tech stocks thanks to nasdaq. more than 18% over last six months. head of the open, we are watching shares of boeing this morning. agreeing to acquire spirit aerosystems in an all-stock deal that values the company at $4.76 billion. boeing is moving 1% lower. spirit is moving 5% higher. we will have more with phil lebeau coming up later in the show. we are checking the bond yields. the benchmark ticking up in

recent days. right now at 4.41. oil is coming off a rough second quarter where it fell nearly 2%. this morning, you can see it is moving higher. hitting the highs of this morning. wti and brent crude over .50%. wti is trading above $82 a barrel. that is the money set up. let's turn attention to the 2024 election and the fallout over president biden's debate performance against former president trump. nbc's reporting that the biden campaign held tense conversations yesterday pushing back against suggestions that the president should step down from the race stressing the president has no plans to do so. meanwhile, sources telling nbc that during the preplanned trip to camp david, biden has told by his kids and grand kids and told, quote, to keep fighting despite his performance. we have megan cassella with more on this story. megan, good morning.

>> reporter: good morning, frank. that is right. the biden campaign looking to restore confidence among supporters and almost in damage control mode. despite the debate, biden is still the one to beat trump in november. they are doing it with fund raising. it raised $33 million from thursday through saturday with most of that, $26 million, coming from grassroots donors. thursday was their best ever day of small dollar fundraising and friday was the second best. biden needs wealthy donors. he attended three fund-raisers this weekend. i spoke with the attendees at the new york city and hamptons events. they were reassured by the president. he seemed strong and healthy. one described the mood as concerned enthusiasm. another people said the people at new york city event said they will do more to get biden to win. it was a cold shower shock for

democrats about the state of the race and the effect being more people are engaged. still, some of the biden donors are recognizing the challenge ahead. the linkedin co- founder said replacing biden would be a bad idea. the debate now makes it more difficult to convince some donors to contribute. >> so, if there is a donor who was hesitant because they weren't sure biden was going to win, those donors are not opening their wallets this week. it makes the work harder, but the work continues. >> reporter: frank, the consensus by sunday night seemed to be, yes, there is frustration with the candidate the democrats have. he is still much better than the alternative. frank. >> a lot of transparency about the hesitant bone dopdonors. what is the hesitancy to get them to donate again?

what are you hearing about the efforts to replace the president? is that still going on? >> reporter: it's going on a little bit. i'll start there. it was really interesting to me. i started reaching out to sources thursday night as the debate was wrapping up. saying what are you thinking of this. thursday night, the mood was dire. after i spoke with people day after day and sunday night, it had died down a lot. the fund raisers went a long way of assuring the donors he really was okay. the friday rally in north carolina did the same thing. they are backing off that. we also saw people like reid hoffman saying this is a bad idea. the associates in the business community are trying to frame this as a binary choice. yes, he may be older than he used to be, but do you want someone who is ethical, mark cuban made this point.

he is ethical and older or do you want someone who lies and more chaotic? they are framing it that way. he wants donors he is talking to and this is i ca choice. >> megan cassella, live in d.c. thank you. for more, let's bring in brian gardner at stifel and the host of the patomac podcast. >> good morning. >> we have a new cbs u-gov poll showing half of the democrats changed their opinion on biden. lots of caveats after the debate. big margin of error. we don't know how people feel until november. a lot to go until then. are we also seeing a knee-jerk reaction with investors, institutional or retail, based on that debate result?

>> based on the conversations i had with people in the wake of the debate, there was a lot of surprise and shock over the president's performance. i think there is a view now that the prospects of trump being elected have gone up. i think most investors went into the debate thinking that trump was going to be elected. i think that number has gone up. >> does that change how you think people are viewing their portfolios or institutional investors changing the view of the market and investment opportunities out there? >> from are def there are defin questions of which sectors benefit and the tax bill and what it looks like. there will be a tax bill regardless who wins. definitely conversations in energy and conversations in finance ials and banks. >> let's go through a few of them. the natural one is tech.

does it matter if biden or trump wins? >> tech is an interesting sector. it has few friends in washington. both parties have become more p populous. the focus is different defpendig on the party. big tech, social media does not have a lot of friends. the justice department will continue to look at tech regardless of whether it's a trump administration or a biden administration. i think there are a lot of people close to president trump who are complementary. j.d. vance has been complementary ahead of the ftc. i don't think tech does it all that well. >> no friends on either side of this campaign. what about financials? we had the stress test for banks

and boosting dividends and announcing buybacks. >> i think the banks do better. it would be a lighter touch regulatory verenvironment. bank m&a would be more efficient especially among msmaller banks and regional banks. tougher for the larger regional banks and largest of the large are still out of the game in terms of m&a. across the spectrum of banks, i think you would see a return of m m&a. investors see trump as a positive for banks. >> what about the gop may be the better pick for the energy sector. you say that may not be the case actually. >> this is one of the things where regulation helps incumbents. it helps protect them from competition. it helps with traditional energy

in the biden administration. they reduced supply and prices stayed elevated. it was good for the incumbents. traditional energy out performed during the biden administration. so, trump coming in would reverse the policy and open it up. it's good for consumers, but not necessarily good for the industry. >> brian gardner, good to see you. thank you very much. >> thank you, frank. coming up on "worldwide exchange," more on the breaking news of the boeing $4.7 billion for the subsidiary as the federal government looks to turn up the heat on the aerospace giant. we'll have all of the details when "worldwide exchange" returns.

i'm gina. i want to talk to you about golo and how it has changed my life and how it can change yours too. like many of you i've been dieting and failing half my life. and each time i would diet i would quit and my weight and health would get much worse. i had to do something. i saw a golo commercial, i talked to my doctors, and i ordered. like me, the golo success stories are real. give golo a shot. you won't be sorry. at morgan stanley,

old school hard work meets bold new thinking. to help you see untapped possibilities

and relentlessly work with you to make them real. welcome back to "worldwide exchange." turning back to the breaking news and boeing agreeing to buy spirit aerosystems in an all-stock deal. we have phil lebeau with more. good morning. >> the total value of the deal, $4.7 billion is the valuation of what they are acquiring from sp spirit. the total value because they assume $3.5 billion of debt. it comes to 8$8.3 billion. spirit is sold and 80% going to boeing and airbus is buying 20%. airbus is being paid to take 20%

of spirit aerosystems. for boeing, we talked about this more months. it has to do whatever it can to alleviate the problems with quality control and the admini manufacturing aerosystems. that is the genesis of the problems, not all of them, but many of them, in the past few years. they have a chance to go back to integration and go back to b basics with the fuselage. when it gets to renton, washington, it can start the process and improve efficiency from there. boeing will be assuming or adding, i should say, approximately 14,000 of the 20,000 spirit arrow system employees. look at shares of spirit and boeing since the beginning of this year. you will say there is not much of a premium here.

spirit is trading at $32 a share. february 29th is the date to look at because that's when boeing first said publicly, hey, we're interested in acquiring spirit and as a result, if you go back to that price at $29.50 or $29.45, it is a 26% premium since then. it will take a while for this to close, frank. they are not expecting it to close until the middle of next year. this is one of the big hurdles that investors are looking for. boeing has to clear this one and then it can focus on some of the other ones before you start to see a true base built in shares of boeing where it could potentially move higher somewhere down the road. way down the road. >> it will take time for the deal to close. the first question is what does this mean for ceo dave calhoun's successor? >> we know the search is going

on. the ceo of spirit aerosystems is considered to be or has been talked about as being a potential candidate. boeing knows patrick shanahan well. he worked at boeing for a long time and was a highly regarded executive there. he was on the spirit aerosystems board of directors when they made the switch late last year and they replaced their ceo and put patrick shanahan in that position. he is only supposed to stay in that position, i believe, until the end of this year or beginning of next year. obviously, he knows them and they know him. we will see the move as the next ceo at boeing. >> phil lebeau, thank you very much. great to see you. coming up on "worldwide exchange," a closer look at the race to artificial intelligence with the ceo of c3 a.i. and the

stocks that could help that company's bounce. we'll be back with that interview.

♪ there was a tree, down in the woods ♪ ♪ the prettiest tree, ♪ ♪ that you ever did see... ♪ ♪ now the tree has roots that need water to grow ♪ ♪ grow jobs, grow skills ♪ ♪ make the whole world go. ♪ ♪ make the green grass grow all around all around. ♪ ♪ make the green grass grow all around. ♪ at jpmorganchase, the investments we make help make businesses happen, that make jobs happen, that make communities happen. together, we make momentum happen. the rise of artificial intelligence help lifting most other boats as companies rush to get their hands on the red-hot technology. that includes c3 a.i. c3 a.i. announcing new agreements with exxonmobil and

quest and maecrsk and a number f other companies. joining me now is thomas from c3 a.i. >> good morning. >> give us a sense as you look ahead to the second quarter where you see the biggest demand. what sectors? >> i would say public sector is huge. state and local government and manufacturing and aerospace and telecommunications and consumer package goods. it's really across the board. we are in construction materials in europe. a huge transaction going on there. this is all about digital transformation and optimizing processes and energy efficiency and decarbonization. >> thomas, it is about everything. every sector in every industry? >> it's huge. >> you mentioned some of the

public sector. it sounds like the federal government. the federal government revenue doubled last quarter. 100% increase. what is driving that? is this defense or some other area of the federal government? >> you know, it is primarily defense and intelligence. it is maintenance for aircraft and assets. logistics and supply chain optimization. intelligence applications associated with signals coming from satellites, what have you. it is coming across the board as the intelligence community is going through a transformation to take advantage of the "kill chain" of the future. that would be hypersonic swarms and sub-surface vehicles and cyberwarfare, what have you. we are at the heart of all that. >> one other area we have been looking at here on the show is

enterprise software. we saw it take a slump. when we look at enterprise sof software, and enterprise a.i., do they work together or is that a replacement? >> that's a great question. the enterprise software business is a $600 billion business globally. these are primarily technology stacks that were built in the 20th century. they are sophisticated, but they do not incorporate a.i. what these applications do is they allow you to pour cash what machines broke or customer churn. what this does is we are not replacing them, but we are allowing them to predict what customers will leave. we can save them. we can predict where the supply chain will break down so we can

fix it before it breaks. we can predict a large and complex infrastructure like the grid or oil and gas infrastructures -- >> it sounds like best-case scenario. we highlighted your stock rise since the last earnings. current remaining performance obligation is down 36% year over year. if you have so much demand, why is that metric down? that is a metric that is showing demand in the future. >> great question. we changed our pricing model a couple of years ago from subscription model where you have an upfront model to a pay as you go. that is increasing revenue growth as we see in the results. by definition, rpo will diminish

down to a small number over time. >> that is the argument and case you are making to the investors. the street likes the rpo number. thomas, thanks to see you. hope to see you again. coming up on "worldwide exchange," we are kicking off the second half of 2024 and our next guest is suggesting a return to basics. if you haven't already, follow our podcast on apple, spotify or oerth podcast apps. we'll be right back after this break.

z's baking the house special.

arisa's styling a new look. and steve's filling his biggest order ever. with the first ever comcast business five-year price lock guarantee, these business owners get five years of value on gig speed internet and advanced security. all from the company with 99.9% network reliability. so now they can focus on doing what they do best for the next five years. that's a lot of bread. you got this. the comcast business five-year price lock guarantee. switch today for a limited time.

welcome back to "worldwide exchange." time for the "wex wrap-up." french stocks are rallying after the first round of the snap elections showing the far right winning the majority. the cac 40 is down 40% from where president macron called for elections last month. the financial times are set to report that eu is set to charge meta platforms over regulatory violations. and blackrock is buying prequin for $3 billion. it will provide data tools for the private market. "inside out 2" topping $1

billion at the global box office. walgreens confirming the head of the boots chain is stepping down. the plan to sell boots or list it as a stock have stalled. walgreens hovering near a 27-year low after disappointing earnings last month. big u.s. banks hike third quarter dividends after passing the stress test. shares of spairit aerosystes are surging after boeing agrees to buy it for $4.7 billion. we get the minutes from the last month's fed meeting and we get earnings from constellation brands and we have jay powell in

a panel discussion at the ecb forum in portugal. as we kickoff the second half of the year, is this a carbon copy of the year with the tech stocks powering the gains? the s&p putting in a solid gain of 14% in the first half of the year. that is nowhere near the 36% gain for the mag seven and 150% gain for nvidia which accounted for 30% of the s&p's returns. joining me now is simeon hyman. >> thank you for having me. >> what do you think of the first half of the year? the mega cap tech and a.i. trade and the concentration in the market being a concern for the second half? >> we had good news. inflation is coming downand job market is okay and the economy is all right for a soft landing. this is a lot of concentration. the pe is there. the confuse in investors' minds

is maybe i should have conservative equities or buffer strategies. i think that neglects the asset allocation. bonds aren't broken. >> the second half. what is your wex word of the day? >> my word is daily. the key here is daily covered call options. folks looking for defensive strategies in the past and in the recent past have looked to monthly call strategies that have historically delivered one-third of the return of the equity markets. part of the reason for that is bonds have been broken. with a 4.5% yield on the ten-year, there is an opportunity for bonds to bail us out if we're wrong and the economy is weak. a better plan than income equity is the call. when you write the calls every single day, you can generate that same equity income or fully participate in the equity

market. >> it sounds like you're in a defensive mode. i want to point out something else. boa points out the second half of the election year, higher 83% of the time with the average gain of 7%. don't historics tell us if we're on par for a strong second half? why be defensive? >> it is not being defensidefent is taking advantage of the asset allocation not only on the bond front, but trading at small caps. if you go back to 2000, mid and small-cap stocks only shrank half as large-cap stocks and bonds went up 30% as the tech wreck was happening. >> i want to save time for your pick. bitg saying if small caps are going to work, they are to start

soon rather than become a canary in a coal mine. are we getting into a concerning level? the russell is up 1%. is that a sign the economic decline is deeper than we faear? >> it is true that the small caps don't make money is a challenge. those generating cash flow is a opportunity. >> give us the televator pick o ispy. >> the high-income etf. it follows the s&p 500 daily covered all index which i mentioned. this is a new innovation. you heard a lot about daily innovations and dte. there is an opportunity to use them conservatively. if you execute a covered call strategy every day instead of once a one, youmonth, you are a

bat. it is not conservative, per se, but allowing your equities to truly behave like equities. >> simeon hyman, thank you. one more quick look at the futures before we let you go. a mixed picture with futures. that's going to do it for us. "squawk box" starts right now. good morning. the second half kickoff for the markets. will the a.i. boom keep the bulls running? who should we check in with? it would be nice to if we had tom grlee. we do. and the future of the campaign of biden in damage control. and boeing spun off spirit 20 years ago and now it's back. it's july 1st, 2024.

"squawk box" begins right now. good morning. 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 and andrew ross sorkin. andrew, nice to have you back in studio. >> nice to see you all in studio. >> good to have you back. >> it's been a crazy week. >> 10:00 a.m. >> what? >> scotus. >> what? the scuttlebutt since the debate. >> i don't know what to think. i don't know what they decided. we have alex