it is 5:00 a.m. here at cnbc global headquarters. here's your "five@5." the tech looks to e rew bond after a historic wipeout yesterday as nvidia tracks its worth month in almost two years. investors look at top and bottom line beats and instead are looking at crowd growth. fed chair jay powell is set to deliver a message today.

rising mid east alert. later, overroasted. starbucks hiking this morning after a top line miss and the sales slide shows no signs of slowing down. it's wednesday, july 31st, 2024. you're watching "worldwide exchange" right here on cnbc. good morning. welcome to "worldwide exchange." thanks so much for being here with us. let's get you ready for this trading day ahead. it's the final trading day of july. you can see in the green across the board, the s&p up just over 50 points, the dow looking like it would open up about 170 points higher, the nasdaq doing the best. up 275 points higher, just about 1.5% in the prae market despite microsoft being lower. we'll talk much, much more about microsoft and its earnings later in the show. yesterday, a rough day for stocks. the southern nasdaq slide nearly

2%. you can see right here for the week, the nasdaq's down just about 1.25%. chip stocks were hit especially hard with nvidia shares closing down 7%. wiping out nearly 750 points in market value. you can see in the premarket taking a bit of a bounceback. we'll talk more about that bounceback. week to date, nvidia shares. again, nvidia higher this morning but still tracking for its worst month since september of 2022 when it lost nearly 20%. it's not the only big gain never the premarket. let's take a look at the action in the open right here. up here at the top, take a look. energy name. constellation energy up 10.5% followed by another chipmaker amd. earnings up 9.5%. asml also up. here, nvidia, up 5 1/3 percent.

the bond market is getting ready for the fed decision and the jay powell news conference that will be so critical. this morning we're taking a look at the yields on the benchmark. later we're going to talk with a guest on what to expect from the central bank. all right. that's your morning setup. let's look at mega cap tech. we're watching microsoft. shares are lower. the beats appear to be focusing on cloud revenue falling just short of estimates. as your revenue grew by 29%. missing expectations for the first time since 2022. microsoft expecting growth to speed up. joining us for this and much more, the big technology founder and cnbc contributor, alex, good

morning. always good to see you. it appears the stocks are falling on the slight miss. big deal? not a big deal? >> i don't see it as a big deal. it's going to pull up. if you thought the ai story was working yesterday, it's still working today. in the call, they talked about the fact this was a capacity issue, right? there's hardware that's needed to enable customers to build itself ai technology and it's in short supply. that was the thing slowing the growth. it still contributed to iowa, still contributed to azure's growth in the quarter. i don't think it's changed at all or very much. >> what you're saying has been echoed by a number of analysts. he said basic ally according to

microsoft, they grew 60% quarter over quarter and they also saw an increase in 10,000 seat deployments, basically enterprise customers. is that being overlooked the fact that this ai co-pilot story that's pushed the markets all year long, we're starting to see adoption and seeing people actually 2350i7b8ding use cases? >> there was exuberance earlier on. a company doesn't add a trillion particulars in market cap. if there isn't some exuberance in the ai story thinking this can change the world in a minute. but if you think about the stats, these deployments take time. there's a lot of changed mask. companies have to figure out how it works in their work flow, and that means gradual change. when you see this adoption of

co-pilot, which is happening seat by seat in the enterprise, that's a good sign and it shows this stuff is going to incrementally move it for companies that adopted and over time add up to a big story. so i think that adds to the broader story. >> i want to look ahead if you don't mind. meta. we have two -- actually three of the magnificent seven report. two of them, microsoft and alphabet slowed. is any of this a read when it comes to meta? we salk weakness in ads. here we saw a slowdown in the cloud business. also i think some concerns about the capex spending, up 78% year over year. is any of this a concern when we look to meta? >> yeah, in the alphabet earnings there was some slowing. i think meta has an opportunity and probably has capitalized on this moment where advertisering

at the time that we started the year were looking for more efficient ad spend and they've been able to deliver on that. some of your more traditional brand type of spend, that's pulled back. i think there's an opportunity to capitalize that on the quarter. we know they're going to be spending a lot. we know they're going to be spending a lot on ai. up until that point the market's been good, but the market, this quarter in particular, in thinking about alphabet, microsoft, it's been a little bit finicky when it comes to that ai spend. so if there's misses and a lot of spend going on, there could be an issue. but overall i expect a positive quarter for the company. >> one last thing. we're going to play a sound bite later in our show. i'm going to paraphrase cramer. h said investors are starting to get religion. they get a little skittish when

it comes to high value names? >> definitely. they propelled some of these further to the upside than they should have been. and for this moment to really work and the economy, big tech in particular, you need to have rational valuations. so the companies can operate with consistency, so investors' expectations are within the realm of reason, and i do believe if we get these valuations in line with where they should be, you're going to see the more steady growth as opposed to exuberance and that will propel everything forward. it's not just microsoft and meta on the move. we're watching the chip stocks bounce back in a very big way. that's thanks to amd and positive results at close. impressive growth for what else ai chip sales. lisa su on the call with

analysts said the company saw a quote, unquote higher than expected revenue from the sale of its chips and revenue that exceeded 1 billion dollar during the quarter. su's going to have much more on those results in a first on cnbc interview coming up at 9:15 a.m. eastern time. starbucks is up despite a sales miss. it's reill rating its lowered its outlook saying sales will continue to decline in china. we'll talk about starbucks and the consumer. that's coming up. pinterest shares are sinking despite a top and bottom line q2 beat. sales for the current quarter coming up short from what the street was expecting. take a look at pinterest, down almost 12%. turning our attention to another market alert and bank of

japan following through on expectations, raising its key interest rate for only the second time since 2007, and also making moves around the bond-buying program. our carolin roth joins us from london with much more on this story. good morning. >> good morning, frank. it was a very decisive move from the bank of japan, raising its key target rate to 0.1% and outlining plans to scale back its monthly bond purchases. it was approved by a 7-2 vote and puts the interest rate at the highest level since the financial global crisis. i want to show you the reaction when it comes to the nikkei, surging 1.5%. the banks loving the higher interest rate, of course. we're continuing to see a winding. the yen 1.4% compared to the u.s. dollar. i want to show you the asian markets one by one.

the hang seng up. when it comes to european trade, trade appears to be starting. they say exchanges have been halted until further notice. a spokesperson said market data is not being disseminated. trading has not been expected but they halted trading in switzerland due to equal treatment of all market participants. there you go. the ftse 100 with a gain of 1.35%. very strong earnings with some of the banging firms. by and large, we're seeing some of the chip stocks doing very well in europe. why? it's because of the reuters report that the u.s. could exempt some allies from potential curbs of semiconductor export, so that's lifting technology shares across the board. back over to you. >> absolutely. carolin roth, live in our london

newsroom. great to see you. we want to turn our attention to breaking new. the oil market is moving higher this morning. hamas is blaming us real for the death of one of its top demanders, injecting new tension into that region. take a look at crude prices right now. wti up over 2.5%. brent crude, the international benchmark up just 2.5%. hamas leader ismail haniyel was killed. this is in response to an air strike that killed 12 teens in israel. we'll continue to watch this story as it develops. we have a lot more to come on "worldwide exchange" including the one word investors have to know today. first, why our jim cramer is

sticking with big tech despite the large slide. plus much more on the cautious consumer and whether the fed should take a hint from nasdaq and starbucks and mcdonald's. still a busy hour ahead when "worldwide exchange" returns. stay with us.

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exchange." wall street poised to open higher despite disappointing

results from microsoft after nasdaq and s&p fell as investors continue to fall. you look at the mag 7. microsoft down 8% in july. meta down 9%, alphabet down nearly 7%. our jim cramer says even with the stocks dropping, we should. forget, they're selling at all companies. >> they didn't get dinged that badly by the fed rate hikes. the flip side is they won't really benefit as the rates come down. the magnificent 7, the companies will be doing fine. but their stocks, aah, a very different story. the answer is the stocks are and will be losers and they'll probably keep losing until the shares come down and look cheap enough to become the rate cut winners. and joining me now is our next guest. michael, good to have you here.

thank you for making your worldwide debut. >> thank you. >> we're going to see a continued rotation of the midcap stocks. people want to get leverage to the other side of the sectors with the anticipation of rate cuts. >> i actually don't share that view. i think one of the things that's interesting and that's transpired, all we've seen is an unwound trade. as that trade has been disappointing to people, you saw the reaction to the cpi and the expectation of rate cuts, small caps ripped, caused a forced unwind. now it becomes a question, do we see that continue. that i'm not certain about. >> what makes you question it because the economy is strong, generally good for small caps, industrials, materials, and financials. we're really expecting a rate cut. fingers crossed, some thing it could happen today. where's the question come from? >> i think the question comes

from when we talked about this a couple of years ago, it's all about if we see rate increases, that should benefit rates and small caps and hurt long duration companies all ore the world. i don't think that's what's happening. i think the key story that it actually under pins is as long as americans have jobs and they're contributing to their 401(k)s and doing so through passish vehicles, they're buying and that dollar is going to continue to flow in there. >> you have some interesting notes. the feds say they're data dependent. i'm doing a lot of paraphrasing this morning. you say they're a bit panicked in their moves. what are you expecting today and in your mind, september, is that still likely? >> we've seen unemployment rise in the past couple of months. this is actually signs that the economy is beginning to slow. particularly at the lower income level. the fed is reacting to that.

they're forced to pursue their dual mandate. inflation has by and large been tamed, measured as a change in the price level, the absolute price level, which is frustrating as hell to most people. the simple reality is the rate has decelerated rapidly. now it becomes a question of once they start cutting that, the same flow type i was referring to, remember the money market funds that your investors are listening -- >> they're watching. >> they're watching, yes. they're going to end up losings with the fed rate cut. it's goes doing be interesting to see how that plays through. >> michael greene, thank you for being here. coming up, the high stakes for stocks and the unusual options activity our next est gu says could be a threat to small caps and their sudden surge. we're back on "worldwide exchange" right after this.

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ingredients in many clean energy and defense technologies. energy fuels. (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. ja w . wks /* welcome back to "worldwide exchange." starbucks' same store sales fell. china seeing the biggest decline, down 14%. the numbers weren't quite as bad as feared and the company says earths to win back customers in the u.s. are starting to pay off and they say they believe there's some encouraging signs in china.

starbucks faces the same issues as other chains including domino's, mcdonald's. worry from inflation-wary consumers. nick, great to have you here. investors seem to have a positive side going forward. do you agree? did you see signs of a turnaround in the slump we've seen in starbucks? >> i get that it's there. the derisk through fy 2024, reiterated guidance, expectations was that they lower guidance. ultimately that kind of brackets the risk in the near term. i think that's why the stock is up. but there's still a great limited visibility in ny 25 and i think it's going to be very difficult to turn this ship

around back quickly. >> oh, really. interesting. i want to talk about the u.s. business. i thought this was interesting. tell me what you think this says about the consumer or at least starbucks customers, transactions. they were down overall 6% in the u.s. but the revenue per quarter, that was up 4%. what does that mean exactly? >> two things. the loyalty customer, they're the frequent visitor to starbucks, they continue to be the workhorse there. and really the ones that are falling off are those occasional customers, right? and so we saw a lot of aspiration spending during the covid years, starbucks, checks were being distributed across in brackets. we saw a lot of what i call aspirational spending and now we're seeing a little bit of normalization especially with that occasional customer. so, you know, to me it's going to be very difficult for starbucks to recapture that

occasional customer, and so i think you have to double down the loyalty customer. what you're seeing is per spend, that loyalty customer continues to grow, which is why you're seeing that 4%. >> got it. what about china? the estimate was for china sales to be down 7%. they were down 4%. we've had eunice yoon report on china and domestic and local brands. to you think it's the same? they're pressuring people to go local brands and as far as the as expirational customer, we're seeing disruptions in china as well. >> i think it's a similar story in china with the added caveat there is competition in the lower end. starbucks' pricing is very premium. it's positioning is very premium. not only during an economic downturn as consumers kind of feel a little bit more

stretched, you know, they're not willing to spend the premium ticket. and at the same time, i think there's, you know, a whole lot of new competition at the lower end. >> nick, great to see you as always. thank you very much. looking at starbucks shares up by 2.5% right now. coming up on "worldwide exchange," torsten slok is making his case regarding the rate cut campaign. we'll be back right after this break. 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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it's about 5:30 a.m. in the new york city area. here's what to expect. stocks looking to bounce back after another selloff. microsoft with questions around cloud growth and ai spending dragging the stock down. the fed makes its latest rate decision today. investors are looking into any insight. it's wednesday, july 31st, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ and welcome back to "worldwide exchange." i'm frank holland. thank you for joining us this morning. let's pick up the half hour with u.s. stock future on this final

day of trading. take a look. the s&p up 50 points. the dow looks like it would open 160 points higher. the nasdaq, the leader this morning, up over 265 points. let's take a look at the chip stocks. they're helping with revenue estimates and delivery growing. take a look. constellation energy up over 10%. amd up 9.25%. asml up just p 6. -- about f.5%. ipd i have ya up as well. disappointing cloud results. we're going to dig into those numbers coming up. right now, taking a look at microsoft shares. we're also following two big developments around the world this morning. the first, the bank of japan, following through on expectations, raising its key interest rate for the second time since 2007.

also laying out plans to reduce its massive government bond buying program. take a look. markets across asia gclosing wih solid gains, up 3.25%. and we're watching oil prices this morning. they're jumping. hamas blames israel on an air strike. taking a look at crude this morning as well. wti, the u.s. benchmark up over 2.5%. brent crude up about 2 1/3 percent. that is your morning setup. we go to the countdown to today's fed policy decision out at 2:00 p.m. eastern time. investors are expecting to keep short-term interest rates on hold but start to lay the ground work for rate cuts to begin in september and continue cutting through the end of the year. they remain up for debate. ahead of that decision, a look at the costs since the hiking cycle began in 2022.

we have a few to note. then it was 4.3%. now it's an average of 6.7%. very similar story for equity loans. car loans up this year. when it comes to savings, that benefits a lot of people. five-year cds and six-year cds up half a percent, however, hardly beating inflation during that same time frame. joining me now, torsten slok, cnbc contributor and lead writer at t"the wall street journal," gunjan. good to have you both here. good morning. >> good morning. >> good morning. >> some people are keeping their fingers crossed for a cut. expectations are for a september cut. what are you expecting especially when it comes to that jay powell news conference? >> i think that i will signal a

cut is likely coming in september, but what we should not forget is we still have two more cpi releases before september 18th ftc meeting. yes, inflation has come down, and that's been a significant improvement in terms of when we will begin to get cuts, but if we have two more, i think the signal today will be if inflation continues to move down, then we are likely to cut interest rates in september. >> gunjan, coming over to you, your new piece. the general consensus is the idea of a dovish fed is good. what are the fireworks that people are expected? >> thanks, frank. i mean, we have seen a ton of turbulence in the market throughout the month. and traders are expecting us to end things off with a bang. for example, pricing in the stock options market are indicating people are positioning a 2% move after the

meeting. that's double the move we've seen since 2010 according to bank of america data. we're also seeing a similar dynamic in the russell. what it shows you is there is a lot of uncertainty around the fed as torsten said. but how dovish will they be? that is really the big question. we've seen this kind of game of chicken between the market and the fed before, and it's going to be interesting to see is this time durmt? does the fed actually live up to market expectations this time around or do they kind of pour cold water on some of the excitement we've seen ahead of this meeting? >> torsten, i want to point out you project nod rate cuts and now you're saying likely. you look at japan. they're looking to raise rates while we're looking to cut. is that meaningful for japan or here in the u.s.? >> i think that's very, very important. two economies in the world.

basically on the same day, one is raising interest rates and the other, it's cutting. this is an unusual environmental because central banks normally move together. so that's probably also making the fed slightly more hesitant in terms of is it still a good idea in particular with the strength that we're still seeing that payrolls are still good, retail, gdp in the second quarter at 2.8 still very strong. if you look at the daily data for tsa and restaurant bookings from open table and weaker data across the board, the economy in the u.s. is still quite strong. it really is just inflation that's coming down. so the trick for the fed would be to communicate. yes, the economy is still good. we're having a slowdown but not a crash at all. but inflation has come down and that can justify why we begin to talk about rate cuts. to what you said earlier, we were saying the economy is still strong and we still believe the

economy is strong. it's just that inflation has come down and that's triggered the fed to talk about rate cuts. >> so, again, you change your forecast. no cuts. gunjan, i want to come back over to you. we've seen the russell move higher. generally doesn't happen that way. in your mind, what does that say about the small cap trade and trader's confidence in the small cap trade? >> this is surely an incredibly unusual dynamic. it's something we've seen with things like memes stocks where volatility rises as the stocks or indexes goes up. what it shows you is there's been a real lurch to the bullish trades tied to the russell. it's led to the violent divergence of the russell, the dow, the nasdaq, and the s&p 500. what pricing in the options market shows you is people are positioning for these swings to continue around the fed today

and for a big swing after the fed meeting. at least that's what pricing in the stocks and market options shows. some of that volatility has coincided with volatility in the bond market. it's a really, really important day for the bond market as well. in addition to the fed meeting, we have the fetd's quarterly announcement in just a few hours. that could drive divergences and rotations we've seen throughout the month as well. >> torsten, i'm going to give you the last word. there were was mers last month maybe the fed waited too long. in your mind, the fed cut, has it been too long? is there a sense maybe the fed should just cut now? >> it's very clear the fed has since december of last year talked about rate cuts. that's why the market's narrative for a very long period now has been rate cuts are coming, rate cuts are coming. but to the economic data, it

happens to be moving along very nicely. from that perspective if we get down the roadover impulses to inflation going up, for example, you've seen the j.o.l.t.s. datas with better than expected. we've seen across a number of indicators, jobless claims looking okay. if we get an impulse to the upside, we'll see interest rates decline in september. >> it's good to have you bought here. coming up, fed chair jay powell will be holding a news conference later. we'll all be watching. thank you. another busy earnings day. bong includes ei. up almost 3%. we're going to give you keenum biers on them battled air giant when "worldwide exchange" returns. stay with us.

welcome back to "worldwide exchange." s&p industrials is up. of all the companies issued, the stock's been on quite a bit of a run. still well off its december high. our phil lebeau has more on what to watch. >> when boeing reports its q2 results later this morning wall street will be focused the company's guidance for 737 max production later this year. after the alaska airlines

doorplug blowout, boeing slowed down mass production, the focus, making sure the manufacturing process complies with protocols that have been approved by the faa. over the last two months, boeing has gradually increased the production rate. will it be able to ramp up to a rate of 38 per month by the end of the year? if it can, boeing may stand by its long-term target of generating $10 billion annually in free cash flow by the end of next year. that's what we'll be watching later this morning. frank, back to you. and time now for our global briefing. inflation in the eurozone unexpectedly rising coming in at 2.6%. expectations were if it to be unchanged from june. the figure above the ecb's target and complicating the bank's next rate decision. shares of bank of tokyo others,

they'll not be stopping some foreign chipmakers into china. those will be announced next month. shares of hsbc is popping. it announced a profit for the first half of the year and beat expectations. and the trading on the swiss stockmarket has resumed after being halted due to a technical issue that made it impossible to distribute market pricing data. it was hit by the worst technical outage in just over a decade ago. coming up on "worldwide exchange," we have the one word every investor needs to know. and microsoft, you can see shares down by 2.5%. our next guest is rethinking his view. we'll be back right after this break.

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welcome back to "worldwide exchange." taking a look at the futures this morning, you can see the s&p up just about 51 points right now, up almost 1% as well. the dow looks like it would open 170 points higher, almost half a percent. the nasdaq moving higher, up 275 points right now. it looks like it would open up nearly 1.5% higher. time now to turn back to one of your big "money movers." that's microsoft. shares under a bit of pressure as the company reported a near misch on azaur cloud in nearly two years. growing 29% below the estimate,

most coming from ai. those beats were actually some of the smallest in recent years. joining me to discuss is global software analyst as bernstein. good to see you. >> good morning. >> following the report, you raised your new price target, 5.01. that's a 17%, 18% upside from here. what are you seeing that investors aren't seeing? >> you have to understand a lookback at microsoft over a long period of time under the management of nadella. the company has been very controlled in their ability to manage the cost to the revenue. and if you look back to the original cloud transition, the company invested aggressively that the business on the cloud and they proved it to be right. they're betting much less, but they're betting them less on ai being the big business, and they're generating the largest amount of ai revenue of any

softway company and not just in azure but any part of the business. it grew a little bit slower. there were moving parts. european weakness, still constraints on capacity. they're billing massively new data centers to support the ai requirements. that's taking some time. management is guiding to the back half of the new fiscal year, acceleration in the revenue. if you take management who has been very truthful at their word, you can see a better story as this year unfolds. >> when you say we're going to see a better year as this story unfolds, let's look at this. capex is spending up 78% year over year. we saw alphabet get dinged by that. is some of that the reason we're seeing pressure on the stock is they're spending too much money? >> i don't know that they necessarily are concerned with the spending per se. they're concerned if the company can convert that spending into

profitable revenue. management has a history of doing that. they did that with the cloud, which is a negative grouse market business in the early days and is now very profitable. they're doing that with ai. you're starting to see the fact that azure margins are very healthy at this point. so you have to give them a bit of credit for what they've done and the fact that they're driving a business transformation and leading the ai charge. we say they're the art of the tightrope because the fact of the matter is microsoft is drying to be number one in cloud, number one in ai while driving large strong margins. that's very difficult. >> that's very difficult. one of your colleagues from jeffries said they kind of trips over a hurdle but they're still leading the race. it sounds like you share that opinion overall. personal computing, they came out with ai computers not too

long ago. should we be expecting more from the service or is this about where you think this should be? >> what you're going to see is not in service. microsoft is pivoting from being the driver of the hardware to the partners. where you're going to see this is in the windows business. what microsoft wants is every windows pc manufacturer, whatever, is going to build ai devices, and this is to drive the inferencing of the ai down to the divide, which, by the way, that's what they're doing with the iphone. it a is going to drive market improvement and ai. >> one last question. we do have to go. i want to ask you one last question. microsoft said microsoft sales grew 15% quarter o every quart. is that what you've come to expect when it comes to co-pilots? >> we really haven't known. we look at the seed growth and customer growth. i think it's very healthy at

this stage in what is an early product. >> we've got to leave it there. 501 for microsoft. great to see you. thank you. coming up on "worldwide exchange," it's been a really tough july for tech. our next guest says buckle up. in the green across the board, the nasdaq up almost 1.5%.

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all right. welcome back to "worldwide exchange." it's time for your w.e.x. wrap-up. we start with chip stocks. they're getting a boost on the back of strong second quarter results from amd. the company has seen continued growth in ai chip sales and has raised its guidance. lisa su will have much more to say coming up in a first on cnbc interview at 9:15 in the u.s. intel reports second quarter earnings after the close tomorrow. and shares of pinterest, they're sinking as weak guidance overshadows an otherwise strong quarter. revenue is rising by improvement of its ad business. here's what to watch. we get weekly mortgage applications as well as pending home sales. we're watching for adp employment numbers.

at 2:00 p.m., you can watch both of them live right here on cnbc. also another busy day of earnings from qualcomm, marriott, mastercard, and many other names you see on the screen and beyond. ahead of flurry of control results, let's see how trading is looking up. in the green across the board. you can look at the bottom, nasdaq, the best performer up about 270 points, up almost 1.5%. the dow lookings like it would open almost 150 points higher. for more let's bring in lindsey bell. good morning. always good to see you. >> good morning. how are you doing, frank? >> i'm doing great. thanks for asking. what's your w.e.x. word of the day? how are things shaping up? >> my word of the day is "volatility." you see everything moving up.

even though microsoft earnings were disappointing. but volatility has returned to the market in a forceful way. from may to july, the vix was very subdued, very calm, in the 12.5 range. it has since jumped. i expect that volatility to continue with weaker outlooks for q3, and more from the consumer. it's going to be a choppy q3, i think, frank. >> we've seen mixed results. alphabet had weakness in ad spending. microsoft had weakness in cloud sending both lower despite top and bottom line beats. are you expecting to see continued volatility and continued rotation away from the mega cap tech stocks that have carried the markets into more rate-sensitive sectors? >> i do think the rate rotation is intact and is still high. what we learned from microsoft is that we were hoping that the

stocks, since they had come in since the alphabet report, that they get a little bit of a reprieve and the bar had been lowered. but i don't think that has been the case. we have seen valuations for pes for the mag 6 at least, excluding tesla, move about 10% lower since the beginning of this year, so there has been a bit of a movement. but i think they are priced to perfection. they've got to be beating on all key points. and i think what you saw was that happened with amd, the semiconductor sector has done very well, but with different reactions if you go back just two weeks ago. taiwan semiconductor, their report was just as good as amd, but the stock got crushed on political concerns. again, that's the point. the volatility is here to stay, and there will be different things moving the market over the next essentially months. >> it seems you think the market's gotten religion when it comes to the valuation.

you say priced to perfection. if the quarter's not perfect, they're going to get hit. when you're talking about clients and where they're going to put money to work, where do you put money to work considering we're expecting this here, the dovish fed. we're going to see a rate cut coming up in september. where do you go right now? >> i see any pullback in the big tech high-quality names. look at microsoft, it was down 10%. a lot of these are down near the 10% range. i think there's a lot of opportunity there. i think there's a lot of opportunity in the rate sensitivity sectors as well as like a health care, for example. i like industrials for the aerospace and defense exposure there. so we're looking across the board again. >> one last very quick question. what about bonds? i'm looking at the 10-year yield following significantly from where we were a few weeks ago. is now the time to catch the yields or is the equity market

more attractive? >> i think it has its place in the portfolio and now is the time to lock in rates, but i do think there's opportunity in the eck request i the i market as well. >> lindsey bell, great to see you, thank you very much. in the green, the nasdaq, the best performer up 1.5%. it looks like the nasdaq would open 150 points higher. that does it for us. "squawk box" in paris starts right now. good morning to you. good afternoon. just happened in paris. the feds awaiting the decision. also jobs data also important before the friday number. and quarterly results. keep them coming from major companies with chip stocks already off to a pretty good start after some positive earnings news and a report that some u.s. allies may receive exemptions from the export restrictions in china.

plus, every day, really, fireworks in france, the united states adding to the medal count with some high-profile victories. we saw that live, the three of us. we're going to have a big lineup of business leaders, all of them live from paris on this wednesday, july 31st, 2024. "squawk box" begins right now. ♪ good morning, everybody, and welcome to "squawk box" right here on cnbc. we are live from the olympic games in paris. i'm becky quick along with joe kernen and andrew ross sorkin, and it is day five of the olympic games. the action here has been amazing. there haven't been any disappointments just in terms of how exciting this has been. we were just talking about the olympics. the three of us were at the gymnastics team final last night. we got to watch the u.s. team bring home the gold. the u.s. had the