it is 5:00 a.m. here at cnbc global headquarters. i'm frank holland. here's your "five@5." stocks looking to reverse course as the tech trade unwinds and chip stocks leave global markets lower. a lot of attention focused on d.c., and a report of a new china chip crackdown coming from the biden administration. tune in to possible new rules coming down the pike. and former president donald trump saying how the island nation should pay its own way. we're also hearing from the

former president's former rivals. they'recircling the wagon as they throw their support behind trump. later investors are bracing for a big day for the housing sector and the reality of a lower rate environment. it's wednesday, july 17th, 2024, and 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 this morning. we're going to get you ready for the trading day ahead. we get a check of the u.s. stock futures with the s&p hovering at all-time highs. the dow coming off its best day of the year. take a look at futures, in the red across the board. it looks like the dow would open just about 70 points lower, the s&p as well. the nasdaq, down over 1%. we'll talk much more about that in just a moment. this morning we're also watching small caps, the russell 2000

sitting at its highest level since january 2022. you can see the index is fractionally higher, but a very small week for the cap index. we'll talk about that as well. this morning it's all about the tech trade and global chip stocks under heavy selling pressure this morning. again, much more on that in a moment. we have a lot to get to. nvidia, down 3%. and down 3%. we're checking the bond market this morning as we always do with the two-, the five-, and the 10-year yields sitting at the lowest. the benchmark at 4.161%. we also have gold hitting a fresh all-time high. take a look. gold right now, you can see for the year, up almost 20%. right now up almost half a percent. that's your money morning setup. we want to turn to the overseas

action. the red arrows across the board, they failed to build up. investor attention focused on the chip sector. investments sinking in japan, southwest, and europe. cnbc's arjun kharpal joining us this morning. good morning. >> good morning, frank. bloomberg reporting this morning that the biden administration is considering ramping up export restrictions that could affect dutch firm asml and japan's tokyo electron. they're looking to impose a measure called the foreign direct product rule or fdpr. it will use control on foreign made products that use even a small amount of u.s. technology. it will affect a group of semiconductor firms. this could be a big blow. that stock is down. the u.s. is reportedly proposing

the idea to japan and netherlands as an increasing outcome if the companies don't tie in their own measures on restrictions to china, bloomberg reporting. washington has been reporting on its allies, threatening to cut them off from semiconductors. washington has used the fdpr rule before on china's tech giant huawei and it had an effect in crippling the smartphone business. it's harsh because of howl wipe swooeping it is. clearly the u.s. feels it's necessary in the next step with the tech giant china. you can see the battle from europe as you mentioned to asia as well, frank. >> arjun, thank you very much for that report. i do also want to ask you, we're getting some new comments from trump. at the same time the biden administration actually awarded $400 million to global wafers,

but i do want to come back to the trump comments. how do you see that impacting the chip sector as well? >> those are adding further fuel to the fire. donald trump said two things that moves the markets. one, he thinks taiwan should pay the u.s. for it. second, they should pay 100% of our chip business. the context here, for years many have been concerned about the concentration of advanced chip production in taiwan and with tsmc and what would happen in the event china attacked taiwan. that's partly behind this move. but the one point i will make is this shift to taiwan has happened over the past 20 years or so. the u.s. used to have a very strong manufacturing footprint in semiconductors, but making chips is hard and expensive. the u.s. started to contract that chip production out. chinese firms came in, got more

advanced, picked up some of that production, turned taiwan into the powerhouse. it's allowed american firms to fry. if you think of nvidia, apple, they're among the american companies that rely heavily on tmc to advance the most, cutting the edge on chips. it's something president trump is alluding to and the markets watching his comments very closely in the event, of course, he becomes president. >> absolutely. again, we're looking at chip stocks, nvidia, down 3%. arjun kharpal, live from london. thank you. back to the markets. once again, futures under pressure with the nasdaq set to open down more than 1%. u.s. chip stocks as we talked about, the main culprit, again, right there at the top of the list. we see a chip named asml followed by applied materials. joining me now is the investment partner at the callan office.

i want to get your view on some of the chip stocks. chip stocks are cyclicals. how are you viewing that trade right now? >> it's certainly been a part of the market that's been doing incredibly well. it's had pullback in some of that area. we think there's still room for turnaround, but it's understandable seeing the crackdown in regulation, there would be a little pullback in that market. >> the chip trade part of the overall broader ai trade. we've seen rotation in the small caps. according to your notes, you're bullish on small caps, but you're assuming rate cuts, assuming the economy stays

strong. if both are true, are small caps in your mind the best opportunity if we have a continuing strong economy and we're getting rate cuts? >> yeah, i mean on a relative basis, we've been in such a sustained period of performance with elevated rates and economic slowdown, the slowdown hasn't materialized, and now rate cuts are looking like -- they're becoming a real thing. this could happen most likely in september is what it seems, and there are a lot of reasons. we have small cap rates, higher debt levels, floating rate debt than other parts of the market than margin companies specifically, so that means they're in a better position to benefit from a rate cut environmental. >> almost out of time, but i want to ask you about the mega cap tech trade. it's dominated the conversation this year. what are you doing? have you been trimming? looking to add on volatility? what moves are you making?

>> those positions in our portfolios have really grown, so we've trimmed in that area, and rebounded into the areas of small cap, international, that have really lagged the rest of the market. earnings growth, it will likely continue to be dominated by the mega cap tech stocks and we still think there's room to run on that trade, but we're being mindful of our exposures and rebalancing on a marginal basis. >> i think you're where a lot of people are trying to figure it out right now. time now for a check on some of this morning's top corporate stories. silvana henao is with us. good morning. >> good morning. hsbc has named its new group ceo, georges elhedery. elhedery has also been the co-head of banking and markets,

the division that houses trading and the banking advisory business. meanwhile fed governor adriana kugler says she's casually optimistic inflation is heading toward the bank's 2% target. kugler says goods, services, and now housing are contributing to easing price pressures, however, kugler did not say when she might be ready to cut rates. and elon musk says he let's moving the headquarters of spacex and x to texas from california, musk citing a new school gender identity law signed by governor gavin newsom and, quote, the last straw. with these steps, musk may have located -- relocated tesla and most of the companies he controls or runs to texas. musk changed his own residency in 2021 to texas where there's no state income tax, frank. >> thank you very much, and

we'll see you later in the show. we have a lot more to come on "worldwide exchange," including the one word investors have to know. first, much more own trump's policy platform and the one sector of the market investors are betting could be a big winner. and the dow transports coming off the best day since november. what the leading indicator could mean if the american economy. we speak about logistics. and later, housing and what it could mean for beaten up names in the space. we have a very busy hour ahead when "worldwide exchange" returns. stay with us. (man 1) can you hear me now? can you hear me now? can you hear me now? (dj) can you hear me now? (runner) stay with me now! (teens) oooo! (woman 1) mírame ahora! (woman 2) get em now!

(roger goodell) we're ready now! (woman 3) have fun! (fan) ooo, pinch me now! (woman 4) save me now! (toddler) let's go now! (woman 5) check me now! (toddler) catch me now! (gamer 1) cmon! (gamer 2) play me now! (toddler) okay, bye now!

when we're young, we're told anything is possible... ...but only a few of us go out and prove it. witness the greatness of anna hall on a connection worthy of gold: xfinity mobile. only xfinity gives you the most powerful mobile wifi network, with speeds up to a gig in millions of locations. and right now, 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. dow transports coming off their best day ever, notching a fifth positive session in a row. one person who knows a whole lot about that space is our next guest. joining us as our next guest, mario. good to see you. good morning. >> good morning, frank. great to see you. >> you're announcing a new service for cross border traffic. tell me, what kind of sectors are you seeing that demand from? >> first, we're expanding our export service significantly and getting more technology capabilities for our customers. we're seeing more and more in manufacturing. today two-thirds of our

companies are industrial companies and they're setting up plans in north america to be closer to their customers, and that includes mexico as well. >> yesterday we saw another company, j.b. hunt. they reported another volume slowdown. you're in a very different space. they're largely focused on consumer groups, container shipping. but you're focused on industrials. give us a sense. what are you seeing when it comes to consumer-facing namgs and retail names when it comes to demand and also inventory. >> when we think about it, two-thirds of our customers are industrial but one third are retail. we're seeing that segment -- actually we're seeing more strength in it. if you look at the second quarter, we see retail sales up in the month of june, higher than expectations and that's translating to more retail.

we look at the index as to how the consumer is doing. when you look at 50, it's the even mark. it's been hovering in the 48, 49 range for a while. the industrials have been muted, getting worse, not better. >> one thing we've been following is jay powell's guidance and rate cuts. we look at an increasing likelihood of a rate cut in september. what do you think about it in terms of your customers in september? >> it leads to more spending which leads to higher retail shipping in our industry. on the industrial side, lower rates means more capitals be dispersed to more purchases.

no matter how you look at it, we've been in a recession for two years. usually it lasts one year. you're going to see a higher shipping demand that will affect the next upsealle for transportation. >> you've've mentioned there's been a freight recession that's been going on for quite a while. it comes after the big boon during the pandemic. i have to ask you f i'm not asking you to be political. some of that seems to be the, quote, unquote, trump trade, people rotating with the confidence that they believe trump is going to win. how do you see the election impacting your business, the idea that there could be tariffs expanding on goods. expansion of industrials. how do you think that's going to impact you? i'm not asking you which candidate is going to win. >> as far as the outcome of the election, the way we think about it, customers are shoring more here, whether it was more tar

riffs on trade or them wanting to get the product closer to their customer, so they're avoiding the supply chains and getting it there faster for them. whenever production making it to north america, it simulates more demand. in terms of the impact on the business, the impact will have to do with the fed. the cpi expected to be lower in the month of june was going to have rates come down. this is going to have an effect on our business. the last data point we published publicly was may. shipping was up 4.4% on the basis. it goes back to the great service we're offering our customers, and they're rewarding us with higher market share as well. >> mario harik, great to see you. your new service, xpo.

coming up, fresh shares and retail, your morning m"money movers" coming up next.

welcome to the now way to network... they switched to juniper's ai-native network. now everyone's so productive, they're operating at a higher gear... now their network is self-configuring, self-detecting and self-healing. so their it team deals with up to 90% fewer network trouble tickets. (sonic boom) whoa, what was that? just the sound barrier. that's the now way to network at work—with real ai—putting you in the fast lane. (♪♪) "worldwide exchange." taking a look at phitures, you see it's under selling pressure. the s&p hitting new record highs. down about three-quarters of 1%. the dow down fractionally. the nasdaq down more than 1%. the selloff in chip stocks a

major factor. right now we're showing you the nasdaq laggards. asml down. arm holdings, another chip name, down almost 4%. nvidia, down more than 3%. time for your big money movers. three big stock stories of the morning. we're going to start with five below. the ceo is stepping down and leaving that role and board to pursue other interests. five below expects sales in the second quarter to come in with lower forecasts as it deals with lower spending by lower income shoppers. >> spirit warns of wider quarter two loss due to non-ticket revenue or items not included in ticket prices such as bags and add-ons, the shares down more than 6%. and as we've been discussing this morning, asml is lower despite second quarter results

that beat forecasts. traders pointing to a slight miss on revenue guidance for the largest chipmaker and geopolitical concerns, bloomberg reporting the u.s. is considering severe trade restrictions for chai fa if companies like asml keep giving the country access to advanced chip technology. much more coming up. shares of aslm down just about 6%. turning now to the housing sector. we get data on weekly mortgage applications out at 7:30 a.m. eastern time. housing and bidding permits out at 8:30. this is the investors' position for what it's expected to be lower interest rate this fall. the interest rate could possibly provide a tailwind to the sector, one that's been bringing about laggards year to date. let's bring in our lead analyst. good morning. good to see you.

it's been a while. >> it's good to be here. >> let's talk about the data points. housing applications, starts, and permits. some are believing we'll get a rate cut. we've been seeing growing hopes for quite a bit of time. >> builders 7confidence data ha been out. a little higher than last year. it's a little too early to get lower rates into the data line. but i think the story going out, we're worried about construction labor. single family permits have been lower. you want to keep an eye on single family housing permits when they come out and see if they've declined. >> apparently it's about inventory, at least nowadays. according to your data back in

2022, we had 200,000 homes for sale. last week, 600, obviously more than doubling. here's the question. is that enough to meet demand or lower prices that seem to be going up and up and up. >> price incentives have been increasing since march. they should cool down, especially in the second half. i think the best story for housing in 2024 is inventory is off of its extreme low level. if interest rates go down toward 6% or lower, we're going to have a lot more choices for americans. we're not going to have 75% at a lower bid. we're ready for lower rates if that happens where we weren't ready in 2022, 2023. >> you're saying if it happens, you're ready. one area of the housing market is the lower and the middle tier when it comes to housing buyers. when we look at that inventory, how much of that is priced for

them? >> well, unfortunately affordable housing is almost like a myth here in america. inventory is growing generally on all levels, but more than 40% comes from texas and florida and a lot of that is basically property taxes and insurances. the only way to make it affordable is rates come down or rates and prices. prices on a national level, we're not there yet. affordability will happen when rates come down and wages grow. so this is probably going to be a multi-year process. but we are in such a better spot if rates fall. i don't think we're going to get the 10 to 15 or 20% home price gains ever again as long as inventory stays at this level and keeps on growing higher. that will be good for the next few years for the housing market. >> great to see you as always.

thank you so much. as we head to break, we have another check on u.s. stock futures. take a look. in the red across the board. the dow down about 1.25%. chip stocks taking it on the chin, dragging the nasdaq and s&p. nvidia down. we'll have much more when we come back right here on "worldwide exchange." (grandma) and a million stories to share. (vo) the key to being rich is knowing what counts. what is cirkul? cirkul is what you hope for when life tosses lemons your way. cirkul is your frosted treat with a sweet kick of confidence. cirkul is the effortless energy that gets you in the zone. cirkul, available at walmart and drinkcirkul.com.

energy fuels, a leading american uranium producer, is ramping up production to supply expanding nuclear markets and diversifying into rare earth elements, key ingredients in many clean energy and defense technologies. energy fuels.

dave's company just scored the comcast business 5-year price lock guarantee. high five! high five! -i'm in a call... it's 5 years of reliable, gig speed internet... five years of advanced security... five years of a great rate that won't change. yep, dave's feeling it. but it's only for a limited time. five years? -five years? introducing the comcast business 5-year price lock guarantee. powering 5 years of savings. powering possibilities.

it is just about 5:30 a.m. in the new york city area. here's what's on deck. the markets rally facing the latest test this morning. futures are deep in the red. a big part of that drop coming from pressure from overseas chipmakers, this following fresh policy decision from the two 2024 presidential candidates. then we head to see sweep, how his company is looking to capitalize on growing-based demand. it's wednesday, july 17th, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ and welcome back to "worldwide exchange." i'm frank holland. thank you so much for being here with us. let's get you ready for the trading day ahead. we get a check of the u.s. futures with the dow and app

hovering at all-time highs. futures are deep in the red. it looks like the dow would open up 80 points lower. the s&p also under quite a bit of pressure. the nasdaq is what we're watching, down more than 1%. a big part of that, global chip stocks under very heavy selling pressure. take a look here as the s&p 500 laggards are down. asml down as well as arm holdings. the benchmark at 4.61%. we're watching gold hitting a fresh all-time high. it's been a big year for gold. year to date, up 19%. right now it's up a third of a percent. red arrows across the board, in europe as well. looking here, the german dax down just over a third of a percent. the french cac down almost half a percent. this afrasia closed mostly lower

with south korea down nearly 1/2 percent. 1% down in japan. they're spending another $380 billion. taking a look at the yen, down this week compared to the u.s. dollar. we want to turn to the campaign trail as donald trump prepares for day three of the republican national convention and prime-time comments from ohio senator jd vance's newly announced as his running mate. this was an orchestrated show of unity by many of trump's former political rivals including ron desantis, nikki haley, and vivek ramaswamy. >> if you want to seal the border, vote trump. if you want to restore law and order in this country, vote trump. if you want to reignite the economy in this country, vote trump. if you want to regain national

pride in this country, vote trump. if you want to make merge great again, vote trump. >> my message to them is simple. you don't have to agree with trump 100% of the time to vote for him. take it from me. i haven't always agreed with president trump. but we agree more often than we disagree. >> i'm here tonight because we have a country to save. and a unified republican party is essential for saving her. >> the wave of support from silicon valley for the former president grows by at least two more people. the information reporting that marc andreessen and ben horwitz plan to make large donations to pac. trump proposed policies that are

already having ripple effects for investors all around the world with specific focus this morning on taiwan. and as we've been discussing this morning in a wide-ranging interview with bloomberg "business week" they say taiwan should pay for the u.s. defense services and the country doesn't, quote, unquote, give us anything. adding, we're more than an insurance company after they took, quote, 100% of our chip business. ta taiwan semiis down. trump told bloom bberg he would allow powell to finish out his term but would not reappoint powell. emily wilkins joins us from washington. good morning. good to see you. >> good morning, frank.

vance's addition to the trump ticket opens the door to have a strong advocate in the white house. vance has been workshopping legislation that would provide rules of the road for industry. the rules would clarify when to use crypto. the measure would also give crypto companies a path to raise capital off of digital assets, helping some of these new product come to market. while it's still in draft form, vance introduced a bill last year to make it easier for crypto companies to work with banks. vance has been critical of s.e.c. chair gary gensler. he called out his approach. >> his approach seems to be the exact opposite of what it should be. the question that s.e.c. seems to ask in regulating crypto is this a token with utility, and

if it's a token with utility, then they seem to want to ban it. if it's a token without utility, they don't seem to care. i almost think we should be the opposite here. >> vaps is also bringing with him other investors. in a video the duo voiced frustration with the biden administration's posture toward crypto and says trump's policy platform better aligns with their views. >> it's like a flat out endorsement of the entire space, it's an absolute 180 from what we've been experiencing. >> other major players in the crypto space include the winklevoss twin, the co-founders and heads of gemini. >> emily, i want to go back to something you said earlier. we do know former president

trump is going to speak at a crypto conference later this month. could we hear policy on that speech during the crypto conference? >> we'll certainly be looking for that. right now trump has talked a lot about crypto. obviously he's accepted crypto with his campaign. he's made overtures to the industry and to his interest in making sure that crypto is something that can become a stronger force here in the u.s. but i think him picking vance as his running mate, he's got swung who understands the industry. folks i'm involved with who work in crypto, they say, yeah, jd vance understands it and knows how it works and they feel very glad to see vance added to the ticket. >> emily wilkins, thank you very much. . coming up on "worldwide exchange," much more on shares of two global chipmakers getting clipped on possible new curbs by the biden administration. right now we're looking at tokyo

electron down just about 7.5%. mlnd pressure, down 6.5%. much more details when we return. off the comcast business van. into the vending area. oh, not the fries! where's the ball? anybody see it? oh wait, there it is! back into play and... -oh no, it's in the water. wait a minute. are you kidding me? you got to be kidding me. rolling towards the cup, and it's in the hole! what an impossible shot brought to you by comcast business.

taking a look at u.s. futures, the dow looks like it would open 75 lower. pressure on chip stocks a major factor in that downside move.

we're going to look much more into this later in the show. stay with us. coming up, we have one word every investor needs to know, plus an exclusive conversation with the ceo of mongodb. keeping the stocks rolling. that and much more when "worldwide exchange" returns. stay with us. (dj) can you hear me now? (runner) stay with me now! (teens) oooo! (woman 1) mírame ahora! (woman 2) get em now! (roger goodell) we're ready now! (woman 3) have fun! (fan) ooo, pinch me now! (woman 4) save me now! (toddler) let's go now!

(woman 5) check me now! (toddler) catch me now! (gamer 1) cmon! (gamer 2) play me now! (toddler) okay, bye now! (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real.

welcome back to "worldwide exchange." time now for your global

briefing. it's not just trump's comments that sent taiwan's chip stocks lower. arabile gumede is with us from london with a lot of action and more red arrows. good morning, arabile. >> good morning, frank. we're finding one to buck this trend a little bit. yes, it's on the back of strong comments. you look at asml and their earnings picture. you look at nature and how things are faring in the chips cycle. you're finding asml toward the bottom end of the european market going down nearly 7% at 4.86% lower. the german tech company moving to find gains. very quickly, also showing you the picture out of asia because that also got some declines then. this is where the declines are. tokyo electron, of course, on the become of some of those comments coming from donald

trump, really hurting and impacting things. perhaps saying that the market out of the u.s. may be hindered or stopped for the likes of tokyo, the likes of taiwan, semiconductors as well. tsmc down more than 2%. if indeed donald trump becomes president, significant fear that tsmc may have to invest more in the united states to find gains in that market. for now, the market looks a little bit jittery off the back of that and is down significantly. frank. >> arabile, thanks. arabile gumede live in our newsroom. the mag seven may be seen as the biggest since the artificial intelligence boon so far. they predict spending on data centers to increase by 24% this year, that's up from a previous forecast of 10%. that's merely due to an increase for generative ai planning. one company at the center is

mongodb. it's a cloud-based data-based management company that works with companies including adobe and novo nordisk and long with legacy names and startups. it builds and powers ai applications including the ai chatbots being rolled out by some of the biggest tech names. joining me now is mongodb president and ceo. dave, good to see you. >> thanks for having me. >> you've seen a big rebound along with a number of software names. you guys fell based on weaker guidance reports last week. what are you seeing when it comes to demand, especially from your enterprise customers? we mentioned some of them, adobe and novo nordisk. >> frank, it's important for your audience to understand that with every major technology shift or platform shift from main shift to client server, climate server to internet and

mobile, the cost is has gone down. the number grew exponentially. that created a huge base for data. that will mean there will be more of an explosion of new apps. that means more database, which is really good for us. we're still in the very, very early days. we've seen customer reserve apps and sophistication apps when you choose real-time data, do sophisticated things around reasoning and planning, and i think those apps are going to come. i think to your point you made earlier, there's a big amount in the data centers. there's a big shift that accrues over time. but the real values in the application services are built on the infrastructure, and while a lot of money has been spent on ai today, people are still waiting to see the return of those investments, and those

returns to come to the apps and services and we've seen it go from experimentation to production. >> you're talking about streamlining data. we mentioned the chatbots. can you get a bit more granular with us? what other applications, what else are you seeing when it comes to ai apps? it's not clear what all the uses are for ai. you're right there in the beginning stages of this. what apps are being built and what services outside tech are starting to use buildups and apps? >> in particular, we're seeing two. one is modern data. let me given you an example. novo nor disk, the leading health care company, used amazon bedrock that looks at how study

reports are created. it goes from weeks to minutes. this app uses a project call ed rag that looks at statistical outputs and report templates that are used for regulatory levels. they can do it as a reduction of the cost. that's one example. ada, which is the next generation customer support company, they basically are using ai to offer their services and people use technology to offer chatbox. a company in australia used ai, basically modernized one of their core databases by automating the analysis of the code and building new code to basically build that application on a much more modern,

scaleable, and flexible platform. you're seeing ai being used toed by new apps and transform and modernize existing apps. >> one last question. two big things that seal to be increasingly impacting the market. the idea of rate cuts and the election. how do you see one of those impacting your business? >> i do think that higher interest rates is a drag on investments, and so if rate cuts do happen, then i think that will lower the hurdle rate for investments. i think technology will be a beneficiary of that. people do invest a lot in tech today, but i think the lower the rates, the more investment, which will drive more innovation and be good for the global economy and potentially we're excited about that happening. >> devitt chair ya, great to see you. turning now to a news alert, we're getting new comments from

new york fed john williams. he says an interest rate cut could be coming, adding the last few months are getting us closer to a disinflationary trend that we're looking for. williams says even enif and when they start to lower rates, they could remain at a setting. >> coming up on "worldwide exchange," chip stocks draeging down the major averages this morning. we tee up the moves to make with your money and what could be a turbulent trading day ahead. the s&p down three-quarters of a percent, the dow down a quarter of a percent. we'll be back right after this break.

the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection.

therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title.

welcome back to "worldwide exchange." time now for your w.e.x. wrap-up. hsbc is naming its new ceo georges elhedery. he'll become the third ceo in less than a few years. roche is showing positive results for weight loss. the drug would rival similar medication from novo nordisk and eli lilly. feds governor adriana kugler is cautiously optimistic saying it's on a good path and driving prices lower and the job market

is seeing a quote, unquote rebansing. elon muffing is moving its tesla headquarters from california to texas citing inflation. bank of england's inflation holds steady at 2%. dampening expectations for a rate cut next year. shares of five below sinking. it's also replacing its ceo. urn thing back to the market setting, looking like they're facing fresh pressure. taking a look at the futures, under pressure across the board. right now the dow looks like it would open about 90 points lower. the s&p down quite a bit. really, it's the nasdaq we're watching. down more than 1%. chip stockings being a drag on the s&p and nasdaq. take a look at it. asml down more than 6.5%. arm holdings down just about 4% as well. for much more let's bring in

victoria greene. she's partners with g squared and a cnbc contributor. good morning. >> good morning, frank. >> how do you see the chips impacting? >> we're looking at the trade. it's a bend not break trade. you have trump's comments on taiwan. that speaks to markets could there be more tariffs. you could face tactical headwinds in chip stock, but i don't think the trend is broken. you need to think, do i really want to dump my nvidia? >> for me, no. looking at near term, small and running. i think we're in the middle of the innings of ai play. >> we talk about the unloved

names, small caps, transports. i'm leading you into the w.e.x. word of the. it's pivot. you have to see ross screaming on the couch, pivot, pivot. this is fantastic for the market. it increases our breadth. it's more and more behind the bull market theory. yes, you maybe need to own more. but, then, you've had teflon names like tesla who will hit earnings. near term, yes, absolutely pivoting be looking at other things than just the mag seven. >> we're going through day three of the rnc. many are talking about the quote, unquote trump trade. how much is trump trade and how many managers are overpositioned when it comes to tech? >> it's hard because you were left behind. it was hard to beat the s&p 500 because it's the main benchmark. i think you could see some

profit-taking. but a lot of investors and portfolio managers will say, look, this is where the growth coming frew. you've seen a lot get priced in last week. you have jd vance who has strong opinions on china. for us, that's what we're looking out for. i think we still would support taiwan. some of the stuff, it's election year. i strongly do not think you should position your portfolio in campaigning because that often is not what turns out to happen in november. >> we're almost out of time. i'm looking at the chart. blackstone only up 4.5%. why buy it today? >> i think they're killing it on earnings. the real estate has been a drag on them. but, look, they're still growing. as interest rates come down, investors are going to being looking for areas.

you're also going through this de destamon station. i see blackrock looking to pick up. >> one more look. futures, heavy selling pressure across the board. it looks like the dow would open 70 points lower. that does it for us. "squawk box" starts right now. good morning. stocks plunk. we're going to talk about the big drop for chip stocks straight ahead. donald trump's former primary challenger nikki haley endorszing him at the republican convention last night. we're going to take you there live. plus elon miusk says he'll move the headquarters of x and

spacex to texas. we'll tell you why. "squawk box" begins right now. ♪ good morning, everybody, and, to "squawk box" right here on cbc. we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. here we go. tight e been a while since we saw red arrows in the morning. the dow is off by 60 points, the s&p by 50. the become loser, nasdaq off by 250 points. a little more than that. the chip stocks are dragging after the biden administration floated using stronger trade restrictions to crack down on the chip sector in china. separately