it is 5:00 a.m. here at cnbc global headquarters. i'm frank holland and here is your "five@5." inflation inflection. investors are confident after yesterday's cooler than expected cpi report. small cap comeback. stocks left behind in the recent rally did something for the first time since the financial crisis. big tech with a massive wipe out and one veteran said this could be the start of hot new trade. >> this is the day where investors are starting to rotate out of the magnificent seven and

into the rest of the market. biden defiant. the president facing the press for the first time since the debate with trump. >> most qualified person to run for president. i beat him once and i will beat him again. plus, tesla's rocket-like rally ends at 11 with more pressure on the stack today. and later, the big banks report. it's friday, july 12th, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ good morning and welcome to "worldwide exchange." thank you so much for being here with us. let's get you ready for the trading day ahead. we kickoff with the u.s. stock futures with the historic day for wall street yesterday. look at futures in the green

across the board. the dow would open 7 on 0 point higher. we are checking the bond market ahead of the ppi inflation report. the ten-year benchmark at 4.42%. easing a bit after an the scpi report. looking at wti and brent crude up over 1%. that is the money set up now. we turn attention back to stocks and what could be a possible inflation inflection point. opening the door to a late summer rate cut with the odds standing at 92% compared to 73% yesterday. the softer inflation data hitting stocks as well. the s&p 500 and nasdaq snapping the seven-session win streaks. nasdaq closing down nearly 2%. its worst day since october.

the mag seven impacted with every member of the group closing down more than 2%. wiping out a combined $598 billion in market value in just one day. the second worst on record. this translate into a huge win for the small caps. russell 2000 jumping 3% for the biggest out performance in the s&p since the financial crisis in october of 2008. conviction in the trade with volume in the ishares and russell etf. noted bull ed yardeni speaks about it. >> i won't mind if the magnificent seven do nothing for the rest of the year and we see money going to the rest of the market which has been left for dead there for a while.

>> now we will bring in ross mayfield. good to see you. >> good morning. thanks for having me. >> ed yardeni doesn't mind if the magnificent seven doesn't do anything for the rest of the year. i think others would. let's pull on that thread. let's say we see a major rotation. what is the biggest beneficiary? >> if we are seeing it because rates are coming down and expectations for a fed cut are moving higher or pulled forward, it is the cyclical sectors of the market and you have to look at the ones that also have structural tailwinds. we like industrials. you have structure tailwinds in aerospace and defense spend. some key industrials with a chance to out perform. >> we saw rotation yesterday. the etf finishing up 2.5%. bio-tech has been under pressure this year. as we mentioned in the show,

small caps having a very good day compared to the s&p. i do want to ask you more about small caps. if we continue to see the rotation in the small caps, what does that say about the strength of the market and overall, what does it say about the strength in mega-cap tech? >> it is less about mega-cap tech. the fact we are seeing rotation in the equal weighted s&p and small caps signals a confidence in the economy, right? you are not rotating into those parts of the market that we get rate cuts and rates coming down are not a negative for growth and not giving a negative message on economic growth, but rather signaling inflation is coming down and soft landing is still in play. totally fine as with ed yardeni that tech is taking a breather.

>> ross, quickly, i want to push back a bit. if the economy is strong, would that benefit the mega-cap tech names as well? >> sure, sure, absolutely. i think you are getting a breather here, not a total deflation of a.i. enthusiasm, right? the big tech is not as rate sensitive. they're cash rich and low debt. they are not as serious. the equal weighted tech has under performed cap weighted tech. if you get the tech sector, that says the same story. >> ross, one last question. since the debate -- excuse me, since the jobs report, they have seen a big flurry of long duration long buying. is that something you would add v advocate for your clients? it seems like we're pushing closer and closer to a rate cut.

>> i think so. our wealth management clients are loving cash and 5% you can get there. i think the days of that are numbered. rate cuts are being pulled forward. i like locking into duration. if you like the high rates, i think locking in makes sense. high quality or treasuries or corporates. i think that makes all the sense in the world. >> ross mayfield, great to see you. >> thanks. coming up on "worldwide exchange," we have a lot more to come, including one word every investor needs to hear today as well as we're bracing for the banks. earnings season kicking off and the stock our next guest says is a buy. one key sector is still red hot. we have all of the details coming up. later, much more on president biden and his refusal to bend to pressure from husnisn

party. we have a very busy hour when "worldwide exchange" returns. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities. did you find everything you needed? yes, thank you. oh, who are you tapping for today? dinner for my kid, i guess... no, no when you tap your mastercard, you help support stand up to cancer. so - who are you tapping for? we all have someone that comes to mind when we think of cancer. auntie gigi. my sister, she's a fighter. when you tap or order online at participating grocery stores and restaurants, mastercard will donate one cent, up to 5 million dollars, to stand up to cancer. standing up for the people we love: priceless. share who you stand up for.

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nbc's brie jackson joins me now from washington with more on the story. brie, good morning. >> reporter: good morning, frank. despite the uncertainty on capitol hill, the biden campaign is arguing that president biden succeeded in fending off doubters in the news conference and urged democrats to stop talking about themselves and talk about the guy they are running against. defiant president biden. >> i'm the most qualified person to run for president. >> reporter: the first press conference getting off to a rocky start as he ed flubbed th name of his vice president. >> i would not pick trump to be vice president. >> reporter: that gaffe comes as the 8181-year-old is working to fend on ff critics citing the pr

debate performance, age and ability to win in november. >> i created 2,000 jobs just last week. >> reporter: still, more than a dozen democratic lawmakers want him to step aside. >> hard reality is, and i'm far from the only democrat who believes this, that the numbers, the trajectory and what americans feel in their bones right now, suggest not only that joe biden would lose this race or we would lose the senate and the house. >> reporter: others are sticking with biden at the top of the 2024 ticket. >> we have the team, we have the operation, we have the president who i trust. >> reporter: president biden seeking to prove he is the best candidate to take on former president trump with the fate of his campaign and the future of the country hanging in the balance. president biden continues to ramp up stops on the campaign trail with the event in michigan

today. in the memo, his campaign laid out the path to keeping the white house. saying winning wisconsin, pennsylvania and michigan is the clearest path to victory. >> brie, you had representative hynes. he spoke out after the news conference. do we know why he waited until after? >> reporter: he said he purposely waited until after the nato summit to go public. he says he did not want to interject politics into the summit. >> brie in d.c. thank you. turning back to wall street. the prospect of rate cuts is more closer to reality as the fed inches closer to its 2% target. joining me now to discuss the outlook for bonds in the second half of the year is gurpreet.

>> great to be with you. >> look at the second half of the year. the sentiment is we are getting closer and closer to rate cuts in september. what does that mean for fixed income? >> yeah, you are absolutely right. the cpi data we have seen this week and the cool angle of the labor market and the fed chairman comments that the central bank is placing equal importance on both sides of the mandate does pave way for a september fed rate cut. of course, we still have two more inflation prints between now and then. this is good news. the chicago fed president said this is good news and on the path to 2%. this is important on rotating to bonds and locking in the attractive yields before the cutting cycle begins. one of the ways to position into

this is to position for the u.s. treasury yield curve to steepen. the front end of the curve will benefit from the rate cuts and the longer end exposure with the higher supply and fiscal dynamics as well. >> gurpreet, that is interesting. the manager of the bank is seeing a flurry of long buying since the debate. i'm sorry, the jobs report. when sentiment shifts, they will see the rate cut sooner than later. are you looking for people to lock in the long bonds and what could that mean for the equity market in the second half of the year? 12k3 >> i think for the equity market, what is driving the easing? it is the adjustment price because the economy is still relatively sound and fundamentals are still good. so, the adjustment in policy rates is due to the slowing of

inflation and cooling of labor markets which can be positive for risk sentiment, including the fixed income market and equities. to the first part of the question, you are seeing interest for fixed income. we have seen that renewed interest in the higher yield environment. we saw the interest in fixed income at its highest since our survey began. the fact that fixed income, once again, does deliver income is attractive. it is an interesting time. >> gurpreet, as you look at corporate debt right now, does this make the landscape more attractive? apple's corporate debt is more attractive. does that broaden out what other

investors are looking at right now? >> yeah, look, we think there are interesting opportunities in corporate bond when you look at the fundamental picture. fundmamentals are sound. that's good for us as a credit holder. you see ratios and open capital markets allowed many corporates to come to the market to address refinancing risk. actually investors have snapped those up. you see solid supply met with demand looking to capture those yields. coming back to my earlier point, if the fed begins the adjustment cycle, you may see that fully reflected in the u.s. treasury market and the rate market and currency market. it is not fully priced into corporate markets. if that adjustment in policy rates is still losing at the

growth back drop, there are abilities to rotate into corporate yields. >> gurpreet, thank you. coming up on "worldwide exchange," the rocket rally for tesla falls short. details on the downturn. stay with us. to help you see untapped possibilities and relentlessly work with you to make them real.

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2020. gas prices are cooling, but the cost of car insurance is red hot. contessa brewer is joining me with more on that. contessa, good morning. >> reporter: frank, car owners are facing prices up 19.5% over last year and up almost 1% from last month. that's good news for shareholders and insurance companies. allstate got a price increase from jpmorgan chase to the street high of $200. it raised the price on progressive. predicts strong margins for the auto insurers. why are premiums still high? they are still catching up to lose costs. insurance companies reported over the last several years with accident severity on the rise and they reported soaring costs of repair and replacement.

in some cases and in some states, california, insurers are paying more out in claims than taking in in premiums. the insurance commission in that state refused to raise rates for years. inn surers are only recently getting approvals. progressive announced results in may and it saw $722 million of net catastrophe losses. according to piper sandler, that was more than 12% of the premium where normally catastrophe costs are 3% to 5% of premium in summer months. that is not just hurricane damage, but thunderstorms. travelers announces next week. we will see if the high cat losses are reflected there. on the upside, in addition to rate insur rate increases, piper sandler

shows higher rates. allstate is up 15%. frank. >> big moves for the insurers. contessa, we talk about car insurance and data point and cpi. what about homeowner insurance? >> reporter: it is interesting. cpi doesn't breakout home insurance the same way. we do get a view of that. we are looking at year over year increases of 30%. in fact, in new york, i started beginning to hear from colleagues that they are opening their insurance bills and getting sticker shock. that is without having an incident that you had to report a claim to your insurance company. it's just the way things are partly because of the inflation that we've seen in materials and labor. home values are more expensive. if you have to put in a claim or home destroyed, it will cost the

insurance company more money to replace it. those rates are just now catching up to what inflation was fror materials and labor lat year and the year before. >> homeowners don't want it to catch up. contessa brewer, great reporting. thank you. as we head to break, watching shares of delta airlines after yesterday's massive stock slide. delta fell 4%. the airline missing sales estimate. it has been forced to reduce ticket prices because of industry oversupply. look at it now. the shares are up slightly. much more "worldwide exchange" mi urit teth.s ul 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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and right now, get up to $800 off the new galaxy z flip6 and z fold6 when you trade in your current phone. get the fastest connection to paris with xfinity. it is almost 5:30 a.m. in the new york is city area. there's still a lot more ahead on "worldwide exchange." growing hopes for a fed rate cut coming sooner rather than an l later with the cooling cpi report. one wall street veteran is now calling this an inflection point. top the agenda today, jpmorgan chase and wells and citi reporting this morning. the key numbers you need to watch in those results. and president biden pushing back on calls to leave the 2024 race and in some minds, creating fresh concerns of being able to lead for the next four years.

it's friday, july 12th, 2024. you are watching "worldwide exchange" here on cnbc. welcome back to "worldwide exchange." i'm frank holland. let's pick up the half hour check of the u.s. stock futures after the whipsaw day of action and the cpi report. the s&p and nasdaq snapping seven-session win streaks with the nasdaq closing down nearly 2%. its worst day since october. look at futures now. a bit mixed. the nasdaq was fractionally higher. the dow off the highs of the morning. it looks like it would open 50 points higher. the s&p is higher right now. let's look at the biggest pre-market gainers on the dow. look at nike at the top of the list. shares up .50%. followed by amgen and cisco

systems. turning back to the big story of the week. the rebound in small caps and historic out performance of the s&p yesterday. look at that right now. the russell is up over 3.5% yesterday. big jump yesterday on the back of cpi. week to date up 5%. again, that softer cpi report led to a rotation. we are checking the bond market ahead of the read today which is ppi. look at yields. the benchmark at 4.22. it came down a few basis points from yesterday after that cooler than expected cpi report. something we will continue to watch throughout the show. we are looking at oil this morning adding to the week-to-date gains. wti and brent crude. wti up over .5%. crude up as well. strong week for oil overall. let's see how europe is

shaping up as its trading day gets under way with arasilvia ao in the london newsroom. >> good morning, frank. happy friday. we have all of the major boards trade in the green. in fact, the stoxx 600, the benchmark in europe, is trading at a month high on upbeat earnings. the cpi report we got from the united states yesterday is driving the momentum behind some of these names. let me show you how the sectors are trading as well. important story out of europe. the rotation we saw yesterday stateside in terms of auto and tech dipping. we are seeing a rotation out of technology stocks. it was a bit more pronounced earlier this morning. it is easing some what now. one of the trades we are

tracking at this stage. i want to take you to telecoms today. up 0.5%. ericsson reporting second quarter earnings were higher than what analysts were expecting. let's show you the asia trading. that cpi print boosted momentum in asian shares. however, when you look at the nikkei 225, it ended down by more than 2% also because that rotation out of tech also played a role here. of course, frank, we continue to monitor what the bank of japan might say as well later on this month. >> silvia, thank you very much. silvia amaro live in the london newsroom. now time for a check of the top corporate stories. our silvana henao is here. silvana, happy friday and good morning. >> frank, happy friday to you. let's start with chicago fed president austan goolsbee saying the june cpi data is building

confidence. building back to the 2% target. speaking to reporters yesterday, goolsbee says housing prices have been trending lower for two months which is quote profoundly encouraging. adding, he thinks this is what the path to 2% looks like. goolsbee is not a voting member of the fmoc this year. shares of tesla are lower again today after snapping an 11-day win streak yesterday. that move coming on a bloomberg report the company is postponing its robotaxi event from august to october to give tesla more time to build prototype vehicles. the stockdropping more than 5% in yesterday's session. it had surged 44% during the 11-day win streak. boeing is reportedly warning customers of further delays for the 737 max. bloomberg says the company has

told them aircraft deliveries in 2025 and 2026 could be pushed out an andditional three-to-six months. boeing said it was delaying a key milestone for the 737 program by three months as production has slowed in the face of the scrutiny from airlines, regulators and lawmakers. frank. >> boeing shares down .50% in the pre-market. silvana, thank you very much. turning attention back to earnings season. it ramps up this morning as big banks roll out results. jpmorgan chase and wells fargo and citi are reporting. investors are looking for credit card delinquencies and real estate. the fdic says banks have had $517 billion in unrealized losses for over two years. regulators call that high.

it could offset the weakness as dealmaking begins to come back. we have stephen biggar with more. >> good morning. >> let's start with the biggest metric for the banks. net interest income. the spread of what banks make on loans compared to deposits. i want to ask you as we see more people go to the high yielding products, how does that impact the metric? >> frank, we expect fairly loan growth this quarter compared to similar quarters as the elevated interest rates are higher and borrowing costs are reducing loan demand. that's not going to change, i don't think, until we get some lower rates here and meaningful lower rates. as you mentioned the net interest margins are still under a bit of pressure here as the consumers are shifting still

somewhat to higher interest bearing deposit accounts from non-interest bearing. that has put pressure on that. year over year, we are still seeing weakness in margins. the good news is that the second quarter here is expected to be the trough for that. you know, we will look for deposit pricing stabilizing and the securities portfolio that you mentioned are deeply under water and getting better here as they re-price higher in the higher interest rate environment. >> i want to go to data points from your recent reports. credit card is 3% delinquency. 2% delinquency in commercial real estate. how should investors read that? >> 2% is higher than it has been the last couple or three years. particularly on the regional side is concerned about not just

broadly the commercial space, but the office space in particular. high vacancy rates have reduced cash flows. that puts pressure on the operators. as the rates come up for refinancing in a higher-rate environment, that has been hurt for the lenders. that is a potential worry spot. 2% by itself is not a worrisome figure. i would be worried if that moved up to closer to 3% level. it is still higher historically. certainly a worry spot. >> one thing i want to talk to you about is longer term is unemployment. unemployment has ticked up. that is something banks watch closely with the delinquency numbers and the deposits. as you see unemployment go up to 4.1%, does that change your views in banks in the long term? >> well, the correlation between unemployment and delinquencies

is extremely strong and if unemployment goes up, i think we're still at relatively low levels here in the high threes or low fours. i think closer to the 4% level or 4.5% or 5% rather. histo historically, that would result in much higher delinquencies at this point. still a strong job market and banks are adding to reserves at this point as the economy slows and unemployment increase. >> stephen, we have big banks reporting today. you have buys on several of them. do you have the top pick of the three banks reporting today? >> i think jp morgan is the standard bearer here. we expect the capital market side to be strong and equity underwriting.

we had almost a record quarter in the first quarter. m&a deal flow is bouncing back. looking for a 25% increase in investment banking. they are in the sweet spot here. citi is also a buy, but going through some still restructuring. i think they have more room to run, but we'll look to hear more about that. >> stephen, we have to leave the conversation there. thank you. always great to see you. thank you. be sure to catch wells fargo cfo on "mad money" and citi's cfo coming up today as well. coming up, new downgrade out for tesla this morning. we're back right after this break.

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welcome back to "worldwide exchange." time for the morning call sheet. ubs downgrading tesla to a sell. wolf research with spotify with the out perform rating and $390 price target. the streaming giant will lead in audio to serve customers with other forms of audio like a podcast. morgan stanley cutting starbucks from $104 to $98. the second half of the year is

derisked for the coffee giant. japan's nikkei falling 2% and snapping the three-day win streak. the selloff coming with the sudden uptick with the yen which reversed most of the gains by the end of the day. the yen could have been strengthened by the ministry of finance which flagged concerns in the market reearlier today. and chinese exports are up 8 8.5%. it is the bright spot in the slowing economy as the relationship with the u.s. deteriorates. imports are shrinking with weak domestic demand. and apple is continuing the expansion with the vision pro going on sale in the uk and france and germany today. coming up on "worldwide exchange," we have the one word every investor needs to know

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welcome back to "worldwide exchange." turning to the 2024 race and president biden looking to keep his presidential bid afloat.

biden once an gain dismissing calls to drop out. >> i allay fears. for the longest time it was biden is not prepared to sit with us unscripted. anyway. >> as the president works to calm fears around his cognitive abilities, he made a flub speaking about his vice president. >> i wouldn't have picked vice president trump to be vice president if i didn't think she wasn't qualified to be president. let's start there. number one. >> so that mistake coming after he referred to ukrainian president zelenskyy as putin earlier in the day. congress member jim hines became the latest congressional

democrat to call on him to suspend his campaign. let's bring in our guest from raymond james. >> good morning. >> now after the press conference and the president out in the spotlight for a while. did that change your opinion of the president's spacampaign or other part of this? >> frank, what a see-saw campaign. we saw biden with momentum to stay in the race and an okay interview with george stephanopoulos and then swing back to make a decision and almost the decision he's made is not okay. the press conference last night was probably good enough for him to stay in the race for now.

it was an hour-long unscripted event. something people were concerned he wasn't able to do. some will say answers to questions, especially on foreign policy, were strong. detractors will point out to what you pointed out. calling zelenskyy putin and kamala harris donald trump. i know a lot of you asked wait until after the summit to call for a withdraw. later today, i expect the numbers to grow in terms of how many members of congress ask him to step aside. the joe biden i saw last night seemed convinced to stay in the race. ultimately, this is up to joe biden. if he wants to stay in, he has the delegates. >> you mentioned joe biden pushed back on the questions from his democratic colleagues. he is pushing back from the trump campaign and bringing back the policy differences with

tariffs. do those jabs really land with his constituents? >> it's a start. so, you know, this is part foreign policy press conference, but probably more of a campaign speech. what democrats have wanted to see from joe biden is for him to go directly after donald trump and make the contrast in terms of what his policies would look like versus donald trump's policies. bringing up project 2025 when you go and have to defend some of the issues in there and one of the true essences i learn in d.c., when you are explaining, you are losing. what the biden campaign wants to do is look to project 2025 and take out the mcontroversial tha do not sit well with swing voters. this is what you will get if donald trump is back in the white house. this is a referendum on joe

biden, joe biden loses. if they can stick to a referendum on donald trump, joe biden has a shot. that's why they're doing this. >> a lot of eyes on joe biden. we may hear from more democrats in the coming days. almost out of mind is the rnc starts next week. a lot of implications. give us a sense as they look for a vice president. there are different vice presidential picks? >> it is remarkable we have the republican national convention next week. it is almost joe biden the entire time in the political conversation. we could get the vice presidential pick. when i talk to former trump officials, they tell me the vice president under donald trump is more important than any other president. the pick for vice president is

in there on all policy decisions. if it ends up being j.d. vance, the senator from ohio, expect a much tougher stance on trade. that's where we have to worry about the tariffs more. if it is marco rubio, man, alive, that is tough on china. if it is doug burgum, it is tech heavy. that is how he made money. as the governor of north dakota, is that positive for energy policy? look to who donald trump selects for vice president to get a true signal of what the day-to-day policy of a white house would be if he is elected in november. >> always great to see you, ed. thank you very much. >> thank you. >> i want to remind the audience, president biden will sit down with lester holt for an interview at 6:30 p.m. on

"nightly news" monday night. our next guest is questioning whether it is too iesy to dive in and the nam hes adding to his portfolio. we'll be right back after this break.

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and z fold6 when you trade in your current phone. get the fastest connection to paris with xfinity. welcome back to "worldwide exchange." the market seeing a major rotation at least for a day.

the s&p and nasdaq snapping a week-long winning streak and others wipe out nearly $600 billion of market value yesterday. that's the second biggest on record. the tech tumble is the gain for the russell 2000. the first time since october of 2008 that the russell 2000 rallied more than 3% on the same day that the s&p closed in the red. some investors think this could be an inflection point including top market watcher ed yardeni. >> i'm counting on the market rally broadening out. i wouldn't mind at all if the magnificent seven do nothing for the rest of the year and we see money going to the rest of the market which has been left for dead there for a while. >> let's bring in jeff kilburg from kkm financial. jeff, good to see you. >> good to see you, frank. >> ed yardeni would not mind if

the magnificent seven did nothing. how do you see that impacting the market? >> i think we all want to have our cake and eat you see the c yesterday with the russell 2000 which has been dragging 12% for the year. if you look at the three-year perspective, frank, you see underperformance by the russell 2000. yesterday was a high volume. you saw the s&p 500 down 1% and led by the magnificent seven. magnificent seven was down 4%. the other 400 names in the s&p 500 were up over 1%. i think if we see follow through on this theme, this reshuffling of the deck or repositioning by investors, volatility will come back and you will see the vix pop above 18 or 20 and that could be the opportunity as people reposition. >> a lot of people think

volatility is better for investors. ed yardeni says we have an insu inflection point. what is your wex word of the day? >> my word is recalibrate. there are reverberations and ripple effects from that. if you see follow through, look at the s&p 500 and it is trying to bounce back. the russell 2000 is up 1% in the pre-market. you till cwill continue to see taking from the mag seven. if that turns into reshuffling, nvidia is in over 500 etfs. that recalculation will continue. >> you did recalculation of your own. you bought the small caps a couple days before the cpi report. what is your outlook on small caps? tom lee saying it could rally 50% this year.

he said that recaller. earlier. >> we have been chomping at the bit with the russell 2000. we did take an allocation. we did get excited on the fact interest rates will move lower. i'm not optimistic interest rates are going under 4%. i like small caps because they have been left out on the street. if you look at the longer chart, one-year, three-year, ten-year, it is a laggard. that will be contingent upon further profit taking in the mag seven. >> jeff, the owner of the behr paint brand and home depot and tied to the home trade. why is now the right time to buy these stocks? >> you saw yesterday investors flock to the smaller names which have been flat on the year. these names will get attraction

when people have cash in their portfolio. they are looking to those names. >> jeff kilburg, it is a pleasure to see you. >> thank you, frank. >> the nasdaq went higher. right now, it looks like the dow would open up 50 points higher. "squawk box" starts right now. good morning. tech stocks pulled back yesterday snapping the s&p 500's seven-day win streak. we will talk about what's behind that move straight ahead. president biden remaining defiant and steadfast about staying in the presidential race despite several gaffes on stage. we take you live to washington for the latest buzz from democrats. and earnings season kicks off today. oh, joy. we will hear from jp morgan and wells fargo and citigroup before the opening bell.

it is friday, july 12th, 2024. sunshine right next to me today. "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 melissa lee along with joe kernen. becky and andrew are off today. nice to be back on this friday. >> nice to have you. >> let's start off with the markets. tech stocks down. nasdaq in yesterday's session closed 2% lower. s&p 500 fell .9%. breaking that seven-day win streak. the dow closing slightly higher here. among the big tech decliners, tesla down 8.5%. nvidia down as well. the drop