it is 5:00 a.m. here at cnbc global headquarters. i'm frank holland and here is your "five@5." losing steam. stock futures under pressure after kicking off the new quarter in the green. craig johnson is next with his technical wall of worry. and should it be the magnificent six? tesla is trying to make a rebound as we see the name looking to be removed. and eu regulators is looking into the mag seven names. details coming up. and the supreme court ruling

on the former president trump's executive immunity. and later, the category 5 hurricane is barrelling down on the caribbean. it's tuesday, july 2nd, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ good morning and welcome to "worldwide exchange." thanks so much for being here with us. let's get you ready for the day with the kickoff of the check of the stock futures. take a look right now. futures are in the red across the board. it looks like the dow would open up 120 points lower as the nasdaq is moving lower. down .50%. s&p down .50%. we want to look at the laggards ahead of the open on the s&p. look at the list here. we are seeing incyte down and crowdstrike down as well with

lennar down as well. we are checking the bond market ahead of the comments from jay powell later this morning. right now, 4.45. ticking up from the levels we saw yesterday. we have seen yields continue to rise over the recent weeks. with will talk a bit more about that later in the show. the benchmark coming in at 4.45. we are watching the oil for the expected record traffic for the fourth of july holiday and the oil prices are up 1.3% and just under that level from brent crude. we are watching that category 5 storm heading to the caribbean. it has the potential to move to jamaica and northwest in the days ahead. beryl is the first to reach a category 5 this early in history. look at oil, as we just

mentioned, moving higher in the pre-market. turning attention back to stocks. investors are wondering if the stocks will carry over to the second half of the year. joining me now is craig johnson at pipler sandler. >> good morning, frank. >> you kept yourself right where you were with the s&p price target still at 50/50. you put out a note yesterday calling fire 10% correction. is some of that narrowness in the market some of the factors to lead us to that correct? >> right, that is just one of the factors. i look at this market like my kid's car when he comes home from college and you see the warning lights on the dashboard when you get in and take it for a spin. the breadth of the market is concerning and the number of stocks that are above 50-day and 200-day averages. combine that also with the fact

that we've gott ten-year bond yields inverted for two years and oil prices starting to move higher and you can look at the divergence that is happening on the advancing versus declining issues. some of these things all together, frank, and we have a number of warning lights on that i just don't think investors should ignore at this point in time because, frankly, the repair bill could be a lot higher. >> the warning light is on and the car is still going, but the repair bill may be higher. i have talked to portfolio managers and they say that is an unappreciated risk in the market. bond yields have crisen and the market has moved sideways. when stocks move up, it feels like the markets take more time to digest. do you agree with that assessment? >> i agree. i through it is probably one of

the bigger risks out there. the correlation with the bond yields and s&p have been inverse ty correlated for quite some time. the bond yields are working up to 4.45 and there is a concern that you start north of 4.50 and the highs we have seen last year, the market would then come back and reassess what the bond market is telling us. bonds lead equities. if bond yields creep up north of 4.50, it will suggest that the rate cuts the fed is thinking about and inflation remains sticky and then any reduction in the number of rate cuts investors are expecting, it would leave us with equities. >> craig, i want to say we will hear from sara eisen. jay powell is speaking at the ecb forum later today which could have an impact of bond yields. anything north of 4.5 could

spell trouble. i want to go to the stocks you are bullish on right now. you gave us the tactical picks for the week. amazon in there and alphabet in there. you have one in there i want to ask about. dutch brothers. i don't drink coffee. i haven't had it. i heard great things. i don't know if you heard the name. why does this run up 30% year to date as the consumers are under pressure? that was theme that showed contraction. >> frank, like you, i don't drink coffee either. when i look at the chart of dutch brothers, we see a nice trend reversal and it is a constructive looking chart. i'm not sure it is about the spending with the consumers, but the unit expansion story with the dutch brothers.

they have a unique product offering that is doing better than starbucks. i think investors and consumers are looking for unique products. dutch brothers is bringing that to the beverage choice for a lot of consumers. >> craig johnson, keeping your price target at 50/50 calling for the 10% correction. great to have you on the show. thank you. for more on what is driving the markets and the trading day ahead, head to cnbc pro for exclusive insights and analysis. we turn to d.c. and the fallout from the supreme court decision granting former president trump immunity for the official acts while in office. the former president's legal team looking to get his hush money verdict tossed out. this as president biden spoke to reporters last night. nbc's brie jackson is joining me

now. a lot of people talking about this story, brie. >> reporter: that's right. trump's attorneys have written a letter to judge. they want to postpone the sentencing and set aside the verdict. an on monday, justices ruled that presidents are not immune from criminal prosecution and saying they are immune for official acts while in office. in a 6-3 decision, the high court's conservative majority ruled that former president trump is immune from criminal prosecution for official acts as president, but not for unofficial ones. >> it doesn't give any immunity from any ordinary criminal law to the president, the most powerful figure, in our government. >> reporter: the majority opinion stating the president must be able to carry out his

constitutional duties without undue caution. lib eral justices writing, with fear for our democracy, i dissent. trump writing a big win for the constitution and our democracy. proud to be an american. president biden condemning it. >> the nation was founded on the principle there are no kings in america. >> reporter: the president u urging voters to reject trump. >> you must decide to preserve his power. >> reporter: americans are deeply divided. >> this court will be down in history for that and intentional delay. they tipped the scales of justice. >> trump's role on january 6th was commander in chief. like i said, let's go peacefully. >> reporter: the supreme court ruling extends the delay in the case against trump in the interference case. when it comes to the january 6th

election interference case, that now goes back to the lower courts making it all but certain that former president trump will not face trial ahead of this november's election. frank. >> brie, thank you very much. great to see you. brie jackson live in d.c. i want to hit on a few other things. we are getting information about biden fundraising efforts this morning. the campaign showing it, along with democratic allies, raised $264 million during the second quarter. that number includes $127 million raised just last month. we will continue to look at the impact of the election on the markets throughout the show here on "worldwide exchange." we have more to come here on the show, that includes the one word that investors have to know today, but first we are counting down to the jay powell speech at the ecb forum. and should the mag seven be

cut down to six? and the issues facing travelers ahead of the busiest av wksf the year. we have a lot still ahead on the "worldwide exchange" when we return. stay with us. that's right james, it isn't. car, where are we going? we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

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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. welcome back to "worldwide exchange." look at u.s. futures. the dow would up 120 points lower. the nasdaq hitting the lows of the morning. let's see how europe is shaping

up with silvia amaro in the london newsroom with the early action. silvia, good morning. >> good morning, frank. actually, monetary policy is heavily in focus for investors today. first, i want to take you to the moves we have seen in asia because investors over in japan are betting on rate hikes from the bank of japan in the near future and that has boosted the nikkei 225 which ended the session by 1%. let me bring you back to europe. monetary policy is in focus here. we have certainly central bank g governors talking at the ecb forum. the road to bring down inflation is going to be a bumpy one. you see the boards trading in negative at the time. i was mentioning in france, the cac 40 is down .5% as we see

uncertainty there as we approach the final round of voting on sunday for the parliamentary elections. when it comes to other assets we are monitoring in europe, the headline print came in at 2.5%. very much in line with what analysts were expecting. we're not seeing significant moves for the time being when it comes to the euro-dollar. euro trading at .20%. as i mentioned to you earlier, we are monitoring what is happening with the french bonds. the yield on the ten-year paper is 3.36%. let's see what's going to happen on this part of the market as we get the final results on sunday evening. >> silvia amaro live in london. thank you. jay powell is set to speak at the ecb annual summit of central bankers. sara eisen will be there and monitoring the discussion with

powell. sara, good morning. >> reporter: good morning, frank, from sintra, portugal. it is a fascinating time to talk to central bankers because they are all moving a different speeds. they all pretty much hiked interest rates in the past few years to fight inflation. now comes the exit. europe cut rates in june and as we heard from the ecb president christine lagarde last night, she is not promising the markets necessarily they are going to keep cutting. listen to what she said. >> it will take time for us to gather sufficient data to be certain that the risks of above target inflation have passed. the strong labor market means that we can take time to gather new information, but we also need to be mindful of the fact that the growth outlook remains

uncertain. all of this underpins our determination to continue to be data dependent and take our policy decisions meeting by meeting. >> reporter: the signal there after a cut in june, perhaps the ecb will remain on hold. not the fed eral reserve, for is part, has not cut interest rates and has been on pause the last year. we haven't heard from jay powell in three weeks since the last meeting where he made it clear he will be patient to understand the inflation data is showing a return back to the 2% target. they want to be absolutely confident. since then, we have had some economic data that's shown weakness from manufacturing to home sales to gdp. we also got the pce report, the preferred measure of inflation. it was benign at 2.6% inflation from last year. that was a step down, frank

frfrank, from the 2.7%. will that push them closer to the cut? i'll ask that today. the other central banker today is the head of the bank of brazil. they have been cutting most of last year. now facing conseqfidence. undermining their credibility and putting forward expansion eiexpansionary fiscal plan. loot a lot to talk about. >> powell poon the panel as wel as lagarde. they say politics don't impact the decisions. when you talk about the decisions, do politics play a factor here? >> reporter: so, no question politics are front and center here. i was at a dinner here last

night and meetings this morning and people are talking about it after the french election over the weekend. the main result will come on sunday. the british election is this week and we are gearing up for the u.s. election. don't expect any word from the central bankers. they want to remain independent and as far from politics. with fiscal policy in focus, if france has an expansionary policy putting the issues on the deficit and we have seen this in the u.s. with trump surging in the polls, it will make it harder for the central bankers fight inflation. they have to keep their distance from the direct politics. >> i think a lot of eyes and ears on that to hear what he has to say. sara eisen in sintra, portugal.

thank you. coming up on the show, one of the most influential leaders in silicon valley. we'll have that story and more when "worldwide exchange" returns. stay with us.

welcome back to "worldwide exchange." let's get a check of the top corporate stories with bertha coombs. >> good morning, frank.

shareholders at salesforce have rejected the compensation plan for marc benioff. raising concerns about stock awards granted to benioff. he received more than $39 million in total pay for fiscal 2024. that is up from $30 million the previous year. the proxy statement shows benioff got additional stock options and security fees that had not been previously invoiced to the company. barry diller is exploring a bid for paramount. he signed a nondisclosure agreement with national assu assu amusements. paramount came close to a merger deal, you recall, with skydance

media. diller ran paramount in the 1980s, but lost the bidding war in the 1990s to sumner redstone, whose daughter now runs the company. and steven ballmer is the sixth richest company. the first time the former microsoft is worth more than his old boss. more than 9090% of his billionss tied to microsoft. ballmer's move comes as microsoft shares are at a record high up 21% this year. not a bad move. frank. >> bertha, thank you very much. here in the u.s., americans get set to hit the roads and to the skies for the fourth of july holiday and china is trying to woo more.

as eunice yoon explains, once tourists show up in china, they face hidden challenges. >> reporter: you want to see the iconic forbidden city on the ones once in a lifetime have a ta indication to china? they are not available. >> i tried booking for friends visiting china for three days in a row and could only get three tickets for a party of seven. i'm going try for a fourth time. >> reporter: this is being tarnished by the systems separate fd by the rest of the world. since the pandemic, when foreigners stayed away, international credit cards have been dropped by many businesses here. officially, you can pay in cash.

in practice, it's often not accepted. instead, businesses rely on chinese mobile payments. by tencent or local cards. taxis are almost impossible to hail on the street. no uber here. only didi. didi and tencent and ant say you can set up an international account with credit or debit card. registration is time consuming and the is services don't work at all an. not only is it difficult to catch ground transport, but you have to bring a passport to buy a ticket. many have stopped taking foreign guests. not quite a welcome, welcome back. the issue is the china centric systems are separated from the rest of the world thanks to the beijing security controls to drive local tech and slow

financial reforms and pro protec protectionism. that tarnishes the status as a touri tourist destination. back to you. and the latest coming up over europe's big fight against big tech. we'll be right back after this break.

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on "worldwide exchange." here's what's on deck. the second half of particular con tech leading the charge. tesla looking to reverse the rough first six months of the year as they pull back the delivery numbers. the bull versus the bear if the mag seven still belongs in the group. the market's favorite stock, nvidia, is the next target for european regulators. it's tuesday, july 2nd, 2024. you're watching "worldwide exchange" here on cnbc. ♪ welcome back to "worldwide exchange." i'm frank holland. let's get you ready for the trading day ahead. we kickoff the second half with modest gains for the market. take a look at futures across the board. the dow would open 140 points

lower hitting the lows of the morning. we are watching the nasdaq hitting the lows of the morning. the look at the laggards on the nasdaq 100. crowdstrike is down 2%. followed by tesla, a stock we are about to talk about in a second, down 1.25%. nvidia down over 1%. we are checking the bond markets after the comments from jay powell later this morning. the benchmark ten-year at 4.45. we are watching oil ahead of the what is expected to be a record setting travel season for the fourth of july holiday as well as the looming threat of hurricane beryl. oil prices moving higher. the wti and u.s. benchmark up .23% of 1%. let's talk about the big stock today. tesla preparing to release the l latest delivery numbers. analysts are keeping

expectations tempered calling for a 6% drop. the first time tesla posted two straight quarters of declines. competition from china and zeekr with record delivers in june and byd has sales up as well. investors are becoming increasingly bullish on the stock. options traders are pricing in a 10% rally by the end of the summer adding to a 15% gain tesla has seen in the last month. let's delbate the bears and buls with craig irwin with the $80 price target and steven enjaro from stifel. great to have you here. >> good morning. >> you are right here in front of me. you come as the sobering voice

on the stock. you are laughing. we will get into whether or not it belongs in the mag seven. what is the thought that tesla may miss the delivery numbers? >> i don't think a miss is going to be taken as a surprise. you know, the stock has been moving higher on optimism around the china delivers. the fact as you mentioned several of the key players in china have beaten and people are hope we don't have arson issues in germany and supply chain issues this quarter to law them to be stronger. i look at used car pricing down 30% year over year. that is roughly the double of the price cuts in america for tesla. >> are yyou are hitting the fundamentals of the stock. is there some reason you can contribute to the bear in the stock to rally double digits over the last smonth? >> it's optimism on china.

when the headline news is coming through positive, stock goes up. when the headline news is neg negative, the stock is going down. >> steven, you believe the whisper number for tesla will fall short of what the estimates are expecting. what do you make of the recent rally? what do investors see in the stock over the last month or so? >> i think there are a few things. first of all, if you look at tesla, it is an automotive company, you will not buy the stock. you are buying into a technology business. craig is right of what people are looking at with the short-term numbers. people are thinking of tesla as a larger scale with the full self-driving side and the a.i. business is fueling the company both on fds, full self-driving, and the longer term robotaxi side. >> a lot of people are pointing

to the robotaxi event in august. ahead of that, as we look at tesla and the fundamentals of the company and deliveries and craig was mentioning the pricing issues that the company is having, does tesla belong in the magnificent seven? do you believe it still belongs in the mag seven? >> i go back to the fact this truly is a technology business. they are set up for significant long-term growth. a part of that is clearly the pace and timing of the ev adoption and how it impacts the core business. a larger part of the long term is how we think about the application of a.i. technology and the ability to fuel the full self-driving piece. when we look at the target price, we think the stock is worth $190. on the upside, it comes from the

other initiatives. i think we're being conservative on the long-term adoption rates on the initiatives. >> craig, i'm going to come over to you. i'm not going to be surprised by your answer. do you think tesla needs to be kicked out of the mag seven? >> tesla is the retail darling. why? because they changed the world. they forced the rest of the auto industry to follow them. they deserve special treatment. does that mean they belong in the mag seven for not? i don't think so. the stock is trading on expectations for things like hu hu humanoid robots by the end of 2025. that is not going to happen. the fsd, full self driving, no, no, no. the energy tax on the drive train is more than the drive

from a to b. >> tesla's valuation is 74 times the forward earnings. the rest of the mag seven is 34 times. stephen, another point in this note is the outlook for three-year eps growth for tesla is 12%. the rest of the mag seven is 26%. how can you be in the high flying group if you have a lower growth rate? is tesla still a growth stock? >> a, yes, it is a growth stock. when you think about the pace of growth that we're seeing in the near term, we covered this in the stock ten days ago. cle clearly, the headwinds are effecting the company. when we look at the model 2, it should start to be produced in the next 12 to 18 months, that

should be another high-volume vehicle for the company. then you layer in the long term. when we think about the growth story for tesla, we're talking about 27 to 35 when you start to get significant adoption rates of things like fsd and robotaxis. i agree with craig with the reports. you have to have a vision of tesla for the long term to buy the stock. if you are buying for a month or two months, clearly, it's going to be choppy and trade on data points. >> that's the bull and bear debate. craig, price target is $80. stephen, your's is 265. gentlemen, thank you. coming up on the show, the morning call sethe is coming up next when "worldwide exchange" returns. stay with us.

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welcome back to "worldwide exchange." time for the "morning call sheet." piper sandler downgrading crowdstrike. and barclays with a $39 price target for viking. citi downgrading the lennar.

coming up on "worldwide exchange," the one word every investor needs to know today and we dig into growing regulatory waves will prove to be more than a nuisance with the high flying sector. more on that story when we come back. stay with us. [crowd chanting]

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regulators' sights is nvidia for the home grown software. the only software that is compatible with the nvidia hardware. the possible charges against nvidia is the latest of anti-trust allegations against big tech by european regulatesers, including meta platforms yesterday and microsoft last week, which was the first company to be charged under the digital act. joining me is alex kantrowitz. >> good morning, frank. >> put this in perspective for us with nvidia. how concerning should this be for investors? keep in mind that nvidia had their offices raided by regulators related to cloud computing. it did not have a big impact on the stock long term. >> i don't think this is exceptionally concerning with nvidia.

if you speak to silicon valley, they prefer to use the nvidia gpus and software to run and train models. this is a developer driven thing. i don't think it is nvidia freezing out the competition. if there were competition, people would be considering using that competition because nvidia is expensiexpensive. the one place we should look at is nvidia's investments. it invests in coreweave. if they find some misdealings, there are preferential treatment. this is not a fire for me. i don't see much happening on that front. >> it is at least a wait-and-see. we have not gotten a lot of information from regulators. i want to talk about european regulation. how are you viewing that? we had a huge run-up in the first half of the year.

is this something investors need to be mindful of in the second half of the year? >> i think this is meaningful because a lot of big tech u.s. companies revenue has a significant weight in europe. europe says they can fine 10% of revenue for things go wrong in the digital markets act. they can't just pick up and leave. that being said, there is a dance that europe has to handle here where they can be super strict, but risk having these companies not deploy the full suite of technology into europe. there could be a blowback there. are you going to see other tech companies say it is too risky to release the full set of features or innovative pricing models in europe? that is a possibility. i think you can see european act

here. the regulators know there is a cost if they become too aggressive. there will be a balance they will try to walk. overall, it is an issue for big tech, but not a massive issue. >> why don't we pivot over to apple. that seems a bit more serious situation specifically for apple. >> i agree. by the way, i think if europe takes the right shots here, they could have an impact. apple and the app store has this rule that if you steer the user to your web site and let them know there is a cheaper price to pay, you can potentially get removed from the app store. you're not anllowed to do that under the rules. these rules are about enforcing healthy marketplace, that is a healthy place to look. i think the european pressure

can change the anti-steering rules apple has. potentially, europe, with its ability to act more aggressively than we do here in the u.s., maybe that is something that can send a signal to apple that it cannot keep harming the market dynamics. >> alex kantrowitz, thank you accept. ha have a great day. coming up next, the stock on our next guest's shopping list. we will reveal the mystery chart. if you haven't already, follow our podcast on apple, spotify or other podcast apps. more "worldwide exchange" coming up after this.

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time for the "wex wrap-up." we will begin right now with tracking hurricane beryl. the earliest storm to reach category five ever. most are expected to be hit by 165-mile-an-hour winds. forecasts say the storm will weaken after reaching jamaica. watching oil as the forecasters are tracking the path north and west possibly threatening gulf

producers. we are watching the fallout from the supreme court decision over official acts while in office. the former president's looking to get his new york hush money verdict tossed out days before set to be sentenced. the effort to put aside the conviction may be a long shot. general electric says larry culp will remain ceo through 2027 as he led the company during the turn around. the extension removes culp from the candidates list for ceo of boeing. and two activist investors raised concerns of a 32% raise from last year for salesforce.

steve ballmer now surpasses more net worth and bill gates. we get the may jolts report out at 10:30 a.m. eastern and we have jay powell speaking at the ecb forum in portugal. back to the markets. the positive start to the year could falter. look at futures. we are seeing red across the board. the dow would open 130 points lower. let's bring in lizzie evans from evans wealth. >> good morning, frank. >> lizzie, what is your wex word of the day? >> my word of the day in light of the fourth of july holiday is fireworks. that's for three reasons.

the stock market saw fireworks in the first half of the year with s&p up 14.5%, nasdaq up 18% and last week's presidential debate had several explosive exchange and friday's inflation read showing that inflation during the month of may was the lowest we've seen in more than three years. it caused a boost to investors to really set the stage for a september rate cut. today, in particular, hearing from jay powell in portugal will be very important. it's the first speech we heard since friday's data point. i think, frank, we could be in store for the grand finale before the end of the year. >> you think we are in store for a grand finale before the end of the year. craig johnson is looking for a pullback. do you agree or disagree with

the correction and concerns of the narrowness? >> i agree short-term on the correction. i think the market is extended in technology in particular is overbought. there is a lot of commentary that july and august are excellent months from the season se seasonality in an election year. i suspect any correction will have limited downside and should be using as a buying opportunity. s&p correct 5% three times a year and 10% every 16 months. the last time we saw a 5% pullback in april. i think a short-term pullback would be healthy for the market. >> you think a pullback would be healthy. i want to talk about another pullback in the chips space and nvidia. just in general, we have seen

chips pull back a bit. traders believe as part of the pullback, money will go to other cyclical sectors. when you are advising your clients right now, where do you tell them to put money to work? >> i think that mega cap tech and semis will continue to be the leader in the market. i think a pullback like this is a buying opportunity for investors. i think financials and energy will do well if trump is elected. you have to look at the merits of the company as opposed to the sector overall. >> i want to get to your pick. it's royal claribbean. a big jump since april. they signalled long-term demand. are you concerned about it? obviously, very different with cruises and recreational travel. this is some of the most

disc discretionary of spending. are you worried about the business long term? >> i don't think the u.s. consumer is strapped for cash, but the u.s. consumer is becoming more frugal. inflation has been around for far too long. they want stayto see their doll stretch further. royal caribbean have a different product and destination offering. what is crazy, frank, for $185 a night, you can set sail on an interior room. you compare that to the cost of the hotel, all food is included. we heard from carnival cruise lines that 60% of the population is within a two-hour drive of the ports of call. i think royal caribbean will continue to do well. >> do the rate cuts coming in

september mean we will see easing on expenses for consumers? >> i think the rate cut will be the primary driver for the market. i think the consumer is more discerning, but the consumer is still healthy. the high-end consumer. >> lizzie, we have to go. futures are in the red across the board. that's it for "worldwide exchange." "squawk box" begins right now. good morning. futures showing some red after some refer to a lukewarm start for july. will the upcoming jobs reports spur some action? there's more drama at paramount global. barry diller may be interested in betting on the company. and the celtics up for sale and looking for a buyer with deep pockets.

it's tuesday, july 2nd, 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 and andrew ross sorkin. we're talking about what has been happening with the u.s. equity futures and yesterday in the markets. yesterday, you did see modest advances, but this morning, you see a pullback with the dow down 140 points. nasdaq is down triple digits with the decline of 100 from here and the s&p down almost 25. if you are looking at the treasury market this morning, the ten-year sitting at 4.45. the two-year at 4.76.