it is 5:00 a.m. as cnbc global headquarters. i'm frank holland. 5500 and beyond. stocks extend their record breaking win streak as we hear from fed chief j. powell with rates and inflation. s&p 500 current all-time high is really just a pit stop on the way to 7,000 and what he says will get us there by next deal. paramounted over talks wit one company left dead a few weeks ago. tracking hurricane beryl as we kick off a busy summer travel

season. later, the false promises of fintech and thousands of customers scrambling for access to their money. it is wednesday, july 3rd, 2026. you're watching "worldwide exchange" right here on cnbc. good morning. thank you so much for being here with us. let's get you ready to kick off the hour and this holiday shortened trading day. after the s&p 500 closed about 5500 for the first time ever notching 32nd record close of this year. futures are in the green across the board. looks like the dow would open up about 45 points higher. we are also watching tech with the nasdaq 100 hitting its own all time high and hitting 20,000 for the first time ever. it's up 1.5% this week. powering stocks higher on the week remains big tech and that includes tesla closing up 10%

yesterday, up 23% over the past week on those better than expected delivery numbers. apple, in the meantime, all-time high and up i15% the last four weeks. ahead of the release of the fed's latest meeting at 2:00 p.m. eastern time today. benchmark 4.43 and easing back. we are also looking at energy specifically oil. especially with hurricane beryl in the caribbean right now. oil at its highest level since april and moving higher up about a quarter of a% for wti and the u.s. benchmark and the international benchmark above key sentimental levels for both. here is a look. that is your morning money setup. let's see how europe is shaping up as its trading day is under way.

silva amaro is live for us. elections coming up today and french coming up this weekend. >> exactly. that is definitely in the minds of cinvestors too. a lot of economic data coming up. let me first show you how we are trading into the equity session in europe. the majority of the forces in europe trading in the green. i want to take you to france where the cacha hunt is up 1%. we are keeping a close eye on this part of the market as we approach second and final day of voting on sunday. to give you an idea, yesterday, the cac did finish the session down 0.3%. in germany it is also trading highlier. the main force there. we are tracking what is happening when it comes to the inflation picture. yesterday, headline france 2.5% and it showed inflation, they are trying to bring it down but,

however, seeing service inflation at 2.9% level. i want to take you to the sectors to break it down in terms of what we are seeing also in terms of the corporate stories at this stage. at the top, we have basic resources. outperformer by 1.7%. some of these moves are related to upgrades in the sector. we are also seeing that playing in to technology and also trading higher by 1.7%. but, all in aurll, frank, when u put it altogether you have elections taking place and monetary policy comments suggesting we are not done and that the path of rate cuts is uncertain at this stage. of course, all of this economic data coming through. you can tell how busy it is for investors at this stage. >> silva, thank you very much. she is live in our london newsroom. bertha coombs is here with

more. >> shartes of paramount global, maybe the last dance? sources tell cnbc david ellison skydance media rah reached a preliminary deal to buy national amusement and merge it with paramount global. i know you've heard the story before but the deal fell apart just a few weeks ago would see red stone received a reduced 1.75 billion dollars for national amuchsements and skydae with controlling shares 4.4 billion. apple reportedlywill get an observer role on opening ai brr. according to bloomberg, phil schiller will eye assume that role later this year hurricane beryl has now been downgraded to

a category 4 storm as it makes its way to jamaica and possibly heads northwest as a category 5 hurricane. the earliest storm to reach that classification, beryl has claimed six people in the southeast caribbean and beryl is expected to weaken to a tropical storm before making landfall in mexico and southern texas over the next few days. incredible that a storm is so powerful so early in the season, frank. >> kind of concerned to see such an early and strong start to the hurricane season. we are talk about later in the show. thank you, bertha coombs. investors lower their rate cut expectations, this is fed chair j. powell saying he needs to be more confident that inflation is in a downward trend before in i cuts.

>> we want to to be more confident that inflation is moving down 2.4% before we start the process of reducing how tight our policy is of loosening policy. that's what we have said and what we would like to see is more data, like what we have been seeing recently. we would also like to see the labor market remain strong. we said if we saw the labour market weakening that is something that could call for a reaction. >> joining me is scott of horizon investments. great to have you here. >> thank you. >> i was at the new york stock exchange yesterday. i want to ask you do we need rate cuts at a certain period of time? this year, before the election, et cetera? to keep the rally going? or is it only important we are on the path to rate cuts? >> i think both are actually true, frank at the same time.

so, you know, the market is confident that the next move for the fed is going to be a cut and so another way of saying that the fed is back in place. that part of market confidence is going to be important. really what powell is saying there he wants to be more confident he doesn't want to be like europe. he doesn't want to be like the ecb and talked themselves into a corner in terms of having to cut once and now definitely on hold. that kind of uncertainty is not something the market is terribly excited about. when powell says more confidence i want to be ecb. once you make that first cut we want a series of cuts after that and don't want to get back to the measure pace idea from mid 2000s and the idea for the fed. >> let's show a chart that moves on the ten-year compared to the s&p as we have seen yields spike up a little bit. we have seen the s&p basically move sideways. are you keeping your eye on rate risk and if we continue to see

yields move up, do you respond? does that change in any way you're looking at investments? >> i think we get to 5% on the ten-year that could start to move things. if we get -- >> extremes will definitely move things. what about in this in-between part? we are just under 4.5% now. >> i think it's going to be change and anywhere between 4.5 to 5% and tech and big cap continue to win. you get three you see small caps and broaden out. you asked earlier we need cuts to get the rally going. we need rate cuts to get it to broaden but not necessarily keep going. >> a.i. is powering this market. a note yesterday saying tech will have the strongest sales rate growth at 9.5% and outperforming the s&p all-out sales growth rate at 4% and warn the biggest shift will frist from a.i. euphoria to a.i.

disappointment. are you in that same camp? could be -- >> i think we will start earning season in a couple of weeks. the expectations for these companies is pretty darn high. so, obviously, when you have companies with high expectations the risk neither one or one of those bailing. so we are getting a little bit more cautious here on the a.i. trade as we enter the next few weeks. we are very confident over the next few months but next few weeks we are cautious that some of these high grorges high expectation names are just not going to be able to quite deliver. >> great to see you, scott. enjoy your fourth of july holiday. for more driving the markets and trading day ahead head to cnbc pro for exclusive insights and analysis. more to come. much more on wall street's record run and one market watcher say the s&p 500 current all-time high is a pit stop on

the road to 7,000 possibly as soon as next year. one travel ceo throws cold water what is expected to be a record season for summer travel. what it means for the sector is coming up. later in the show, much more on hurricane beryl and what energy traders are saying about the earliest category five storm on recd.or stay with us.

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the summer travel season and this could be a record year. tsa is projecting 32 million people will fly over the fourth of july holiday they see between last thursday and july 8th that is up more than 5% from last year. it could be a record year as we mentioned. consumers tend to spend on luxury travel as high prices for flights and hotels stay elevated' higher prices may be keeping middle and lower income consumers closer to home according to the ceo of booking holdings. >> there is different. a lot of travel. i have seen industry reports that do indicate what you're saying where the lower priced things are not moving as fast as the luxury effort and that is a bifurcation of two-speed economy in the united states right now. >> let's talk about this more. steven grambling is at morgan stanley. hur you did summer traveling of your own. we spend a lot of time talking about the fed on the show.

rate increases. it was supposed to dampen consumer demand. clearly consumer demand has not been dampened. the stocks you're looking at, what stocks are benefiting from this environment where we are seeing a lot more spending on luxury travel? >> i would highlight certainly within lodging space marriott and hilton are some of our favorite stocks in the group. these are names that are going to be seeing strong both business and leisure demand. you referenced that we are seeing a bifurcation in travel and true between the business and leisure demand. business travel is still in recovery. we are seeing within our own corporate travel survey that people are expecting, these are travel managers are expecting 6% increases in pricing and then we had a prioritiary consumer survey and people in the summer are expecting to travel more. you're right this is more pronounced at the high end an the low end and seen that in the data. march i don't think has exposure

to that and high ability to growth with pipelines under construction that are going to continue to propel feed growth because these are franchise business models. >> we are showing some of your stats here. i'm from philadelphia. i don't know where you're from. in the summertime, everybody from philly used to go to atlantic city and go to the casinos there. these are global businesses. what does the summertime mean for the gaming industry overall for the casino stocks? >> vegas is still effectively on fire. we had formula one and then the super bowl in the fourth quarter and the first quarter. we ended up seeing that or expecting to see that rollover after those were passed. that has not happened and people still going to vegas and a strong destination market and sports and other sports driven people to ma market. in the rivers casino you're talking about going to atlantic city is tougher' lower end consumer for the most part. more of a retiree and where we

are seeing -- >> give us a few stocks impacted on the lower end that you're saying aren't seeing the boost on the higher end. >> i would say it's been stabilizing but down. on the flip side, vegas exposure is going to be much more skewed towards mgm. >> i know a lot of people pick the cheapest flight but, at the same time, there is no longer a race to the bottom when it comes to these airlines. people are willing to pay up for extra leg room, like me. or to be comfortable or go to a lounge. what airline in your mind is the top pick when it comes to summer travel? >> i'll give a shout-out to robbie on our team who covers the airlines. some of the names he would like delta, that is more skewed toward the high end. >> business and leisure or just business? >> business and leisure so they are 50/50. hotels more skewed toward business and leisure and

marriott and hilton. >> the hurricane season, we are seeing category five hurricane early than normal. what about the gaming companies that we will see more storms and more disruptions? >> it will impact the stocks in the normally term but doesn't change the consumer behavior. they say cruises are exposed to the krib and those are buying opportunities for the stocks because it doesn't impact the long-term consumer trend. right now, people are choosing to travel over other goods. travel is still one of the few areas that has remained resilient even as consumers spending on goods has been decelerating. >> you can go to vegas and submit your expense report, no questions, no matter what you did. >> they call that due diligence in the industry. >> stephen grambling, thank you

for joining us. >> thank you. the false promises of fintech and thousands of customers are scrambling for access to their catch and that story is coming up.

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yesterday. goldman sacks up 2% the last week. upside move on a lot of these bank stocks after they passed their stress test and released their capital return plans. a number of them increasing their dividends. sticking with the banking space. for millions of customers, the rise in fintech offers the best of both worlds innovate banking and cutting edge tech gocombine with the safety of government banking but the reality of those customers appears to be anything but safe and secure. cnbc.com banking reporting is joining me now with more with a new story looking at how thousands of americans got caught in fintech's false promise. hugh, good morning. give us a sense. how many people are impacted on this story >> it's great to be with you, frank. it's important to talk about this story. press has not covered it up until recently. effectively 100,000 americans who have been customers of

fintech appears have been locked out of their main banking accounts for two months really since early may really. that is because -- we don't have to get too deep into this but there is a financial sort of middle man that basically blew up. it went into bankruptcy in early may and april/may time frame. as a result they shut down some of the systems that connected a lot of these fintech appears with the partner banks that helped them offer checking accounts and debit cards. as a result, you just had people really suffering the past two months, suffering mostly in silence because they haven't been able to do things like pay their bills, pay their mortgages, forced to borrow money from friends and family to essentially live. for me, the implications of this collapse are pretty far reaching. what it says about the fintech model and that model is we are not a bank but we partner with

banks. and so even though these fintech appears that have been seized up are relatively lower tier in terms of their name recognition, the essential model is really followed by folks like chime even paypal and cash app. they are not banks but they partner with banks. so the potential implications of this are pretty large. i wanted to get an understanding for what was going on with these people, the customers that have been suffering and i reached out to a lot of them and they come from all different walks of life. some of them are business owners with almost 250 k frozen. some of them just have a few thousand dollars frozen but the commonality they all thought the fdic would give them backing and has prove to be anything but the case. >> your story is up on cnbc.com right now. you mentioned the fdic.

you feel safe if you're under the deposit limit with the fdic. they say no depositor has lost a penny since 1934 when it was created. what is the response to this these situations when fintech is partnering with banks? >> obviously, the fintech revolution has been 10 or 15 years going so this is new situation we are in which is post the collapse, the fdic has been really, really clear which is if a fintech blows up, i mean, their words if a nonbank blows up but if a fintech claps that doesn't necessarily trigger fdic coverage and you may or may not get your funds through bankruptcy proceedings which could take a while. even sort of the fdic pass-through coverage which is what all of these fintech appears are relying on to pass through coverage and that may or may not be the case because the

company has to title it and keep records in a specific way to get that coverage. the real takeaway is -- the fdic is pretty explicit saying if this is your day-to-day money you may want to be careful about where you keep it and you may want to keep it at a real bank. >> your story is on cnbc.com. great reporting as always and great to see you. thank you. coming up, what a deal for paramount and a new owner means for the streaming competition. you need to follow our podcast. check us out on apple, spotify or orthopother podcast appears.

it is about 5:30 a.m. in the new york city area and a lot more ahead on "worldwide exchange." renewed hopes around fed rate cuts above the 55 hundred mark for the first time. futures are suggesting a fight to hold on to that record. do you think 5500 is great? what about the s&p 500. toing 7,000 and how ai could power markets to that milestone and the potential the frenzy around tech could falter. let's make a deal. once again, shares of paramount surging with a possible agreement with skydance. i know you've heard this story before. it's wednesday, july 3rd, 2024. you're watching "worldwide exchange" on cnbc.

good morning. welcome back. i'm frank holland. great to have you on board. let's get you ready for the trading day ahead due to the shortened trading day due to the fourth of july area. s&p 500 closed above 5500 for the first time ever. they are in the green across the boards. dow looks like would open up 45 points higher. we are watching tech as well with the nasdaq 100 hitting 20,000 for the first time than aev ever. tesla closing up 10% higher up 23% the past week. look at the big spike on the better than expected delivery numbers. apple had an all-time high and up 15% the past four weeks. it's not just apple at an all-time high. megacap tech doing well.

microsoft and amazon hitting fresh highs as jpmorgan chase. we hit the bank stocks earlier. fed minutes released at 2:00 p.m. eastern time today after the trading day closes. bench market 4.43 and easing slightly from the level we saw yesterday. remember, yields have been moving higher in recent days. we are looking at energy specifically oil at its highest level since april. we are going to talk about the hurricane to the oil market in a bit. oil off of its highs from earlier. you see just fractionally higher. that is your morning setup. back as to stocks with the s&p 500 hitting 5500 ever. tesla leading the charge. tesla shares up for the week up more than 20%. the rally could be far from over according to a new note from capital economics.

she day s&p 500 could reach 7,000 by next year thanks to ai enthusiasm. joining me the economist behind that call, neil shearing. thank you for joining us. >> good to see you. >> i want to ask you what is the catalyst? is it almost entirely a.i. enthusiasm or are there other factors like fed rate cuts and near shoring et cetera? >> a bit of fed rate cuts in that would help. we think room for two cuts this year with more to come next year. our forecasters are a bit below what the market is pricing in terms of the future path of interest rates so that certainly helps the equity market story. there is some earnings growth as well and we argued a while we think the u.s. on a path to a soft landing and that helps corporate america amid growth. as you suggest, it's principally about the inflation of a bubble around a.i. and i think it is a

bubble. we have done a lot of work looking at the economic and the market consequences of ground breaking technology such as a.i. one of the lessons from history it taking a long time for these technologies to generate profitability gains and we think they will come at the ends of the decade but markets ten to capture those perceived future benefits ahead -- >> let me go back to one thing you said. you think it's a bubble but clearly you don't think this bubble is mere popping because you think we will hit 7,000 next year? >> exactly right. if it's a bubble it has further to incidentally off the plate. different ways you can measure this and no two bubbles are the same, clearly. the dot com bubble at the end of the 2,000 is probably an industry.

it suggests the bubble is no at peak. >> you're hitting on something over and over again. you keep mentioning earnings so i want to talk about that. sales for tech expecting to have the strongest growth rate outperforming the growth rate at 4% and say they are warning the biggest risk to sales and is a shift from a.i. euphoria to a.i. disappointment. i'm looking at the earnings estimates. q4 and q1 next year. each of these are earnings. if we see a stumble in any one of these earning periods does that break down your case or can it still power past that? >> no. i think if we stumble in the earnings picture i think is breaks down the case but so far we haven't really had that, right? if you look at the path of earnings they have continued to grow higher and blow past

expectations in most cases. the point is that you still get evaluations that are frothy despite that solid earnings growth so i think solid earnings growth is the investor enthusiasm perhaps outpaces that earnings growth. >> okay. also, why 7,000? what is about that number? that kind of implies a 25% increase from where we stand right now hitting 37 record high. what is it about 7,000 in your mind is the number? why isn't it 8,000 or 6500? >> exactly. good question. the simple answer to that is that if you look at the level of valuation tends to get to in bubble territory, bubble conditions around new technologies, that gives you an anchor for your forecast. so we can look at the valuations that we have seen in the past and try to project those forward. when you do so, you get to 7,000

number, maybe even a touch higher. like i say this is a bubble. i think we should be no doubt about that. >> we have to stay in touch. if we hit 7,000 before the ends of the next year, we will have you back. either way, we need to have you back and see what your theory is next year. neil shearing, thank you for that. his forecast is 7,000 at the ends of next year. latest on the revived talks for skydance to take over paramount weeks after an initial negotiation collapse.

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with a real time dashboard and real life conversations. empower. what's next. welcome back. morning big money mover watching shares of paramount global and up more than 9%. cnbc learning independent film and tv producer skydance media has reached a preliminary bill with the family company that controls maparamounts and its subsidiaries. alex sherman joins me now. looking at your story on cnbc.com right now. great sourcing on this one. you say sources telling you that the paramount special committee is reviewing and voting on this potential deal. what are they looking at right now? >> this is both surprising and not surprising depending on what your aperture is.

skydance almost reached a deal with paramount a couple of weeks ago and it seemed as though if you rewind the clock six months or so ago this was a steady train toward a deal and a surprise when that deal did not go through. basically sherry redstone saying she was uncomfortable with the deal. our sourcing a number of reasons pulling out at the last minute. look. it's hard to sell a company that you have bad starts and she sort of felt like the skydance team retraded the deal on her and asking her to take less money for nai and kicking some of that money to class b shareholders in order for this deal to be accepted both by sherry redstone voting control of the company and other common share holders

could go through the process of suing her. why did she say yes now? we learned she is given more money for her stake and given some indemnification so if she is sued she may be more protected and maybe what she needed to get the deal across the line if the committee approves the deal which we should know sooner rather than later. >> i know you're on the phone. shari redstone will receive consideration of $1.75 billion and 15 bucks a share. 36 percent premium to yesterday's closing price. is that a good price for paramount? is that a good price for all of these assets? >> it depends who you ask. some people people it's a far too low price and other people feel like if this deal doesn't happen, what else do we have? there have been some other

offers that have come in but those offers have been for nai. that is shari redstone's controlling stake and not for all of paramount global. these this gives some shareholders some way to cash out at $15 a share and that may be the best offer they go. sony and apollo have taken a look the a this but the offer ner never materialized in so something that was more offer than the skydance offer. it may be you have to take building offer or take nothing at all and do you believe that paramount global with nothing at all ever gets above $15 a share? that is the question for. >> a lot of questions about that. one last question for you and we got to get going. yes or no. do you think the deal goes through today? >> i mean, look. i think this thing is probably been on a long train to acceptance but there have been so many twists and turns on this

one that i'm hesitant to make a prediction one way or another. i would say it definitely looks good. let's put it that way. >> looks good. if you're saying it looks good, alex sherman, i think a lot of people will put a lot of stock on that. your news story is on cnbc.com right now. paramount considering a $15 share offer for 50% of those paramount stakes. coming up, one word every investors needs to know today. hurricane beryl is in the gulf of mexico and what is expected to be a historic hurricane season. the risk that could pose to the gi.th al energy output in at reon

welcome back. returning to a developing story as we track hurricane beryl downgraded overnight to a category four storm after being the earliest category five hurricane on record this week and claiming the lives of six people so far. beryl heading northwest. drillers in the golf will likely be spared the full force of the storm. crew is up fractionally. noaa is forecasting what they call an extraordinary hurricane season with eight to 13 named

storms expect. joining me is rebecca babbic. >> thank you for having me. good to see you. >> our first thought are with the people in the path of the hurricane, their safety and the lives that may be impacted. but, you know, obviously, possible investor looking at the investor impact could be. it's to weaken to a tropical storm what do you think that means for the oil market in the short-term? >> i think in the short-term, the fact that it's a tropical storm means that we won't see significant long-term production outages. i do think we will see some shut-ins from mexico. the storm is scheduled to hit the bay of cam peche over the weekend and they are exportt

terminals. tropical storm chris caused production to to be shut down two or three days and with see shut-in of mexico 600 barrels two or three days as a result of this tropical storm. now that is not going to have a long-term market impact and even not potentially a short-term market impact. you see these big impacts when production is shut in for over two weeks. i think what beryl really has done to the market, however, is send a wake-up call. as you mpged in the lead-in, this is going to be a very active hurricane season and this is the earliest category five hurricane that has ever formed. so this kind of push and pull between, okay, this storm isn't going to have a production impact but, wait, we have a long hurricane season ahead of us. let me cover some shorts and buy some upside tail edges because i don't want to be the one who didn't heed the warnings not only from the weather services but the early indication how the

season will play out. >> people are trying to hedge their risk here a bit. we are entering summer driving season and seeing signs of production pick back up in china which also can be a boost on demand for oil as well. how does this fact we are seeing this extraordinary as noaa called it hurricane season how does that impact the oil market learning term and opec cuts wind down later in the year? >> over the long-term i think what this potentially does is heighten the market over the short-term and when opec starts to unwind their cuts at the back end of the year, maybe not have as much -- much of a pronounced impact driving prices lower. if we have summer driving season that is strong and third quarter we are expecting the market to be in overall a million barrel deficit throughout the third quarter so if those inventories which we expect to start to rebuild in the fourth quarter are more depleted due to

excessive storms, summer driving season being strong, china coming back from refinery maintenance season, all of those things, we will then see as opec has production to bring online, we don't see the market impact that the market is anticipating which is that the market flips from a deficit to being over supplied. the long-term term impact it kind of shifts back where with we start to see the market shift from oversupplied to late fourth quarter in to 2025. 2025 is kind of ugly with crude markets even with storms and china. we are looking at demand growth 1 million barrels a day in approximately 2025 and nonopec supply growth closer to 1.5 million barrels a say so opec plus doesn't have a lot of room here. they are looking at the next several months of fournlthth qur they can unwind cuts and start thinking with cut in early 2015 based on what the balances.

>> rebecca babin, thank you very much. our next guest says records for the markets are not done yet and factors continue to feel the upward momentum. what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com. ( ♪♪ )

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welcome back to "worldwide exchange." time for your wex wrap-up. the deal has been delayed because of concerns from the white house and the united still workers unit over foreign ownership of u.s. steel. the u plan to proposing tariffs from chinese. financial times say the new tariffs will replace the existing ones which don't apply to items under 150 euros. ribbian is not planning to produce vehicles with volkswagen after extending their recent partnership. they will invest on the software. apple will take an observer role at openai they announced last month. phil schiller will have the role

and attend board meetings but not a vote. a busy morning of economic data including unemployment figures. we are watching for earnings from constellation brands. markets close early today because of the july fourth holiday. new york bank president john williams speaks this morning in port cal at a forum. nasdaq s&p at new highs crossing the 5500 mark for the first time ever. look at futures. a positive start. green across the board and looks like the dow would open up 50 points higher. let's bring in tiffany mcgee. good to see you. >> good morning. good to see you. >> we mentioned the nasdaq 100 s&p new all time highs. how do you see today shaping up?

>> my wex word of the day is higher as in we still believe there is still room for the market to move higher. i feel like we are in that scene from the first jurassic park movie where the guy says life finds a way so the market is finding a way and seeing that hitting 32 record highs yesterday. excitement around a.i. is fueling this upward momentum. >> we had a guest on earlier. kind of a mixed message here. therapy forecasting the s&p to 7,000 next year but at the same time, saying it's a bubble that will eventually pop. looking at the a.i. trade will you still putting money to work that trade? do you think it's still a bubble? >> i don't think it's a bubble. this is one of the questions that we are getting kind of like repeatedly from clients and also in our prospect meetings. we think about a tech bubble and the excitement around a.i. we are naturally kind of comparing it to the tech bubble of the 2000s so there are main

differences here, right? you look at the magnificent seven companies. they are compared to the 2000s had not seen any profit yet, right? and so there was lots of euphoria around this idea called the internet but these companies had not even been profitable yet, right? when you also look at the magnificent seven countries and part of the s&p but the growth has been like 50% year over year through the first quarter and they account for 39% of the r&d spending and 16% of cash ex. these companies are vegetable in themselves and they are profitable and they are growing. >> you're a believer. all right. i want to your picks. but a look at the jobs market coming up later today. that is key to the fed on a week that we have heard from j. powell. how important are rate cuts for your investing thesis and the

rest of the rally continuing the rest of this year? >> well, i think the market is anticipating these rate cuts, right? so it feels like all year, we have been saying they are coming, they are coming, they are coming and they have been delayed. yet the market continues to go higher. so we are expecting a rate cut, one, possibly two. i don't think that we are going to see a huge reaction in the market until the fed actually starts with their first rate cut. >> i want to get to one of your picks. you sent us two growth etfs but both had something come common. megacap tech stocks. why invest in atf. why not invest in the s&p or something that focuses on tech? what are you looking for in those other stocks? >> yeah. one of the other questions that we are getting from clients and prospects should you invest in the broad -- in an index like the s&p 500 that has, like, the

exposure to the broad market or should you invest in style. we think about the fact that through july 1st for like the past year, the s&p 500 has been up 26 -- >> i don't want to cut you off but i have to. we got to get going. one of your picks. good to see you. >> yeah. >> "squawk box" starts right now. good morning. futures are showing some green. s&p 500, another average close at new highs and s&p closing 5500 for the first time ever. the nasdaq also in record territory at the close yesterday. we are waiting for unemployment data, though. paramount plot twist again. skydance and natural amusements have reached a temporarily deal. details ahead. cracks in the support for president biden are starting to

show. we will update you on -- it's not a slam dunk but the predicted betting sites are very interesting right now. basically, the president is tied with vice president harris. it's wednesday, july 3rd, 2024. "squawk box" begins right now. >> good morning. welcome back to "squawk box" here on cnbc. we are live at the nasdaq markets at times square. i'm andrew ross sorkin and along with joe kernen. becky is off today. the markets will close today at 1:00 p.m. eastern time. a look at the futures if we hope up 53 points higher on the dow and nasdaq u