it is 5:00 a.m. here at cnbc global headquarters. i'm frank holland and here is your "five@5." failure to launch. the wall street bounce back is fizzling a bit as tech is hit again. stock futures are under pressure. jpmorgan is the latest to throw cold water on the soft landing. jamie dimon is seeing uncertainty. japan risk take two. the worries that the carry trade is back, at least for now. plus, a big write down has warner bros. discovery sinking.

and jd vance turns the heat up on the wealthiest endowments. it's thursday, august 8th, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ good morning and welcome to "worldwide exchange." thank you so much for being with us this morning. we kickoff the hour with the check of the stock futures. take a look right now. we are seeing a mixed picture. s&p is flat. the dow would open 45 points lower. nasdaq turning fractionally higher a short time ago. what you are seeing after a whipsaw wednesday before the dow ending down triple digits, the nasdaq with the fourth down session in the last five. we are watching the bond market ahead of the weekly jobless claims report that is coming out later. the first since last week's weaker than july payroll report.

that is something we willlook at all morning long. also important to note, the two-year yield is back below 4%. we will talk about that later on in the show especially the relationship to small caps. investors are weighing risk with corporate earnings. some of the biggest ones this morning. we start off with the money movers. shares of warner bros. discovery reported a $9.1 billion write down on the tv net waworks and missing estimates on the sales. tnt and tbs and discovery was down 5.3%. shares are down 12%. shares of zillow popping after the coo would be replacing rich b barton as ceo. this has been a tough year for the stock down 30% since

january. those shares up 12.5% this morning. incoming ceo jeremy wacksman will be on. and shares of bumble issued gui guidance which was well short of estimates. bumble shares have lost about 45% so far this year compared with gains of 9% for the s&p 500. look at shares of bumble this morning. they're down more than 35%. from earnings back to the economy and jpmorgan being the latest to boost the forecast for the u.s. recession. that was just a month ago. ceo jamie dimon spoke with l leslie picker during the

jpmorgan optimistic we have a recession. >> we will hear more from jamie dimon later on. we have craig from piper sandler with us now. good morning. >> good morning, frank. >> i want to get your reaction to the jamie dimon comments. how do you view recession risk and we get jobless claims coming up later today. how are you viewing the market risk? a lot of people believe it comes in higher than expected. it could reignite the fears that we saw on monday. >> certainly, the odds of recession have picked up. i'm sympathetic for any job losses out there. when we come back and areview this, frank, look at the 2-10 yield curve. from a technical perspective,

when the yield curve turns normal sloping again, that is sort of normal. at that point in time, when recession is announced, it is more often done and complete than usually small and mid-cap stocks do well. that fits nicely into the fed cuts into the september time frame. i think now is the time to take a hard look at small and mid-cap stocks. >> craig, we will take a look at small and mid-cap stocks later in the show. it is like you are reading my mind. craig, you changed your s&p price target. you were stubborn this year. you changed it from 5,800 to 5,050. >> frank, you have to roll with the changes. when the 26-week highs turned

positive and our measures with the stocks above simple 40-week moving averages expanded, there was a breadth thrust in the market, frank. that was the mag seven stocks under selling pressure and rotation down cap. everything is reset again, but all we have done so far, frank, is pull back to the breakout points whether in the russell or in the s&p or whether it is in the nasdaq. the most unusual thing that has happened right now and why we want to roll with the changes is we have seen a correction in the nasdaq and we haven't even broken below the 200-moving day average. same thing with the s&p 500. this is the breadth trust you want at this time and that's why we are long with equities and bumped up from 5,85,800 to 5,05. >> i want to ask about the mag

seven. i'm looking at the valuations compared to a month ago. apple, 42 times forward earnings and now 40.5. alphabet, now 19.5. nvidia earnings coming up a 41 times and now over 30 times. does that change your view when it comes to the mag seven stocks? does it make it more attractive? is this where people should be buying in. >> i'm not sure i want to buy the mag seven still. we sold a lot of the names out of the portfolio for us. frank, i go back and look at these charts. they had some weak relief rallies. this is where the rotation is coming and the mag seven is clearly becoming the lag seven. as i go through and look at the individual holdings, i'd rather be down cap than playing those particular names at this point in time. i don't think the washout is to the totally done.

look at the nasdaq. you are 13% off the highs. a lot worse than what you have been seeing with the averages or unweighted s&p index. the stocks are 25% off the highs. these don't look like they are fully washed out. that is not something i have to chase. i'd rather buy something in financials or industrials giving position to come out the other side if we get the shallow recession that jamie dimon is talking about. >> craig johnson, always appreciate your time and insight. >> thanks, frank. >> for more on the trading day ahead, head to cnbc pro at cnbc.com/pro for insights and analysis. we have more to come on "worldwide exchange," and including the one word investors need to know today. the yen carry trade is shaking up investors all around

79 the world. and earnings ahead for eli lilly after a rare revenue miss. we will tell you what to watch in that report. and with the russell 2000 on the all-time highs, our next guest says the rotation in the mid-caps is just getting started. we have a very busy hour when "worldwide exchange" returns. stay with us. are of it with gold bond's healing formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond.

this summer in paris, forwe're seeing hard work,zers andedication,s. and a whole lot of... [“joy (unspeakable)” by voices of fire ft. pharrell williams begins to play] anastasia pagonis still feeling the joy.

grant holloway how about that! keep the flair, keep the emotion, keep the showman, the sport needs it. ♪ ♪ welcome back to "worldwide

exchange." we are watching the trading action all around the world. europe opening with red arrows across the board. this action after another weak session in asia with the nikkei falling .75 as investors look for the next move with the bank of japan. they are looking if the dovish tones from the boj policymaker with the risks associated with that. joining me now is tim from goldman sachs. great to see you. >> thank you very much for having me on, frank. >> i want to go over what we are looking at here. we have seen the yen gain 9% to the dollar over since the start of the third quarter. we have seen the boj raise rates. that unwound the carry trade. i know you know this.

when you borrow the yen. you have to make sure everybody is on the same page. tim, has that unwound or could it completely respark? >> let's keep it simple and break it down. the data is not fully available or transparent. we have to play detective over here. the key points is there is clear evidence in the markets or that some portion has unwound. i think a fair portion of it given with the liquidity with the japanese yen. the currency markets, which include stop-loss provisions. any manager would force to hold it. if you want to look at the objective data, the short positions that the cb chicago board of trade, publishes every tuesday. that went from record lows in july to normalized positions as

of last tuesday with the current tuesday data shortly. i think we put clues together to see the offshore speculators were borrowing in yen or inn ve investing in other assets. i think a good position of that is clear. last data point is if you look at the net foreign investment into japan this year, it is still $26 billion as of two days ago. the rest of the asia pacific region is flat. there is length in the japanese equity market and i suggest there is still risk positions on. back to you, frank. >> i like the way you tossed it back to me, tim. do you think there are risk positions still on? what is the potential impact to the rest of the global market specifically here in the u.s. if you think there is more leg to it? people haven't had a chance to unwind yet? that's what it sounds like. tim, are you there? >> i'm sorry.

we lost you a second there. >> i can hear you fine. we will recover right now. you are saying there is more to the yen carry trade that is left to unwind? what is the potential impact to the markets around the world? specifically to the u.s.? >> so, i think specifically for the u.s., the area you have to look at is the offshore japanese money offshore for a long period of time. if you look at the balance, $2 billion out of japan because japan had low interest rates and has been in deflation for a long period of time. $1.3 trillion is lag, but still a good number. $1.3 trillion invested in u.s. treasuries or u.s. dollar bonds. we think that money is actually fairly stable because even with the spread differential with the rates being depressed, you still have a gap. it is a lot cheaper to borrow in

yen and invest elsewhere. it is the higher frequency aspect of people speculatively borrowing in yen and putting that money elsewhere which is the area still at risk. it is hard to get quantify indication of that. if i had to pick a number, 75% or so. in other words, there could be more coming out. a good deal has come out of that short duration speculative money. >> tim moe from goldman sachs. great to have you back. back to me, tim. have a great day. >> take care. switching gears a bit. we stick with japan and a developing story. tsunami warning issued after a magnitude 7.1 earthquake detected off the coast. tsunami warnings have been issued across the region. we will update you on the story.

a powerful earthquake hit japan. 7.1 magnitude. we will continue to follow the story. ahead on coming up, ivy leagues on alert with jd vance speaking up if the rubcaeplins win the white house. we're back with that story. stay with us.

(grandpa) i'm the richest guy in the world. (man 1) i have time to give. (man 2) i have people i can count on. (grandma) and a million stories to share. (vo) the key to being rich is knowing what counts. welcome back to "worldwide exchange." we are watching showares of eli

lilly. results come out in a half hour as competitors warn of a slowdown in demand. novo nordisk issuing a warning. joining me now to just lilly is the founder and ceo of tima etfs. good morning. great to you have here. >> good morning, frank. >> i'm just looking at this. i know you know this very well. looking at eli lilly, about one-third of the revenue comes from weight-loss drugs. what are your expectations with the weight loss portfolio? >> eli lilly is still in the early days of the market. we are seeing the second full quarter of earnings today from the weight-loss drugs. yesterday was a reset of expectations. what interest showed is supply is the real issue.

demand, there is an incredible unmet demand. eli lilly has been ramping up supply. we think expectations will be reset, eli lilly may be better addressing the supply problem short-term than novo nordisk. >> will it be better with mounjaru? >> that would suggest wegovy is on the shortage list. they are better at getting supply in the market, but taking a different approach. wegovy is offered to patients that can continue the trial. whereas lilly products are still dealing with production. >> two new weight-loss drugs coming out next year. one is an oral one. the other may have the most efficacy as all of them. i had to think of the word.

r&d, we have gone back and forth they are spending too much. is lilly spending enough with the r &yad? >> looking at the neurological side and eli lilly is an early leader in the oral segment, but they are thinking about other applications with alzheimer's with early trial data that is encouraging. we think as they look at applications beyond weight loss, it will go up. many people are looking at applications beyond weight loss. you have novo and lilly and viking and amgen. we could see a world with neurological disorders or other areas. >> what's next with the pharma

space? novo made a lot of moves. what is the next thing for these on growth drivers? >> great question. we think we are still early in the journey. novo reported 2% of obesity cases in the world are treated with glp-1 drugs. looking beyond weight loss, we think knewneuro, the alzheimer'd others, we believe it could be used for disorders. >> the next blockbuster is the different use for the glp-1? >> correct. and eli lilly is reinvesting the money from the glp-1 into the capacity and new extension into other products. >> maurtis pot from temu etf.

thank you for coming in. >> thanks for having me. what some are calling the good news and bad news market. bob pinisa lays it out and the next move. we'll be right back.

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. there is more ahead on "worldwide exchange." here what's on deck.

the dow gives up a 400-point rally. a new warning from jpmorgan. what you need to watch. and write-down wreck from warner bros. it is thursday, august 8th, 2024. you are watching "worldwide exchange" here on cnbc. welcome back to "worldwide exchange." i'm frank holland. we pick up the half hour check of the u.s. stock futures after the 600-point wipeout for the dow. look at futures. we saw the nasdaq go fractionally higher. now it is lower. it looks like the dow would open just about 90 points lower. this market action we are seeing is equal with europe opening

lower. all this after jpmorgan joined goldman sachs with the hike of the recession odds. the fed may not achieve the 2% inflation target. >> we will get back to 2%. i'm skeptical on that. i don't look at the short-term data. the things that are inflationary are in the future. deficit spending and green economy. they have not happened yet, but they will happen. >> we will have more with leslie picker and her interview with jamie dimon later on in the show. warner bloros. discovery is sinking in the pre-market as the write-down of $9.1 billion in tv sales. that was down 8%. look at warner bros. discovery shares down 12%.

looking at other moves. dutch brothers down 19%. monster beverage down 8% as well. keeping it going with the treasuries. we start with the benchmark. 3.91% right now is the benchmark. moving up a few basis points from the levels we saw on monday. important to note, the two-year treasury yield below 2%. we will talk about the two-year and small caps coming up on the show. as we watch the bond market, we are thinking about the very important weekly jobless claims this morning. it is the first since last week's weaker than expected payroll report. we saw the benchmark there coming up from levels we saw earlier this week. the jobless report is an unknown as we work to rebound from the three-day slide. bob pisani lays it out. >> low macro visibility is causing problems. true, there is not a lot of

confidence in the soft landing, but investors are all over the map on the macro. the good news is we appear to be decoupling from the yen carry trade. that is a distraction. the bad news is the muddy macro outlook and the weak seasonal period keeps the vix higher. the vix is near 30. investors expecting twice as much daily volatility when the vix was at 15 a few weeks ago. that volatility is expected to continue. the price of the cash fix and the front month vix contracts are higher than contracts further out. that's an unusual sign. it is a sign investors expect the macro varienvironment to continue for the next several months. the good news is we are not in recession. jamie dimon affirmed that on air yesterday. the bad news is we are slowing. travel and hotel companies are showing a slowdown. you put this together and there

is no clear consensus. the good news, the low we had this week is a garden variety correction of 10%. the bad news is we don't know if that is the bottom. back to you, frank. >> small cap stocks are posting a best july after caught up in the volatility. our next guest believes with turmoil comes opportunity. alec is here with us. great to you have here. >> thanks, frank. >> i'm looking at the small and mid caps. down 2% for the quarter. doing better than the broader market, but the gains we saw trailed off. why is now the right time to invest in the small and mid-cap stocks? >> the old adage is you want to buy low. you buy stocks when they are

down than when they are up. people want to talk about buying more after things have gone up than down. i think it is a good time to have the conversation. as for why the trade can work? we know that being outside of the mega caps has been a bit of a widowmaker trade the last couple years. there are things that are turning in favor of the smaller stocks. number one, if we look at the earnings estimates that are forecast for 2025, how is next year going to look versus this year's corporate profits? the small-cap 600 and the mid-cap 400 that you referenced with expected to see significantly faster profit growth than the s&p 500 which is expected to come in the low teens. we are looking at high teens to over 20% for mid and small-caps. obviously, we have to dodge the recession bullet which is the subject of much debate right now. we think that will happen. we have to remember that the

recession-istas are like the boy who cried wolf. they told us we will have a recession several times in the last few years. >> i have to jump in. people are calling for small caps to rally are sounding like the people who cried wolf. tom lee and everybody else said the small caps would rally. we had a strong july. i want to hit another data point. you gave us great data, by the way. according to your data, the interest coverage ratio for the s&p 500 almost at 8%. with the russell 2000, it is 2%. you are expecting the rate cuts in september, they have more upside. we could see a 50-basis point rate cut. won't that benefit the small and mid-caps more? >> the big companies can

coverage eight times with the ebitda with earnings. the small-cap companies can cover the interest expense two times over. they benefit for when rates go down. the reason the trades are not working is no equity trades are working because of the perceived recession risk. you mentioned jpmorgan going at 35% chance of recession this year. goldman nudged up to 25%. we don't think that's going to happen and neither do they. they are well under 50%. as that becomes clearer, you will start to see cyclical trades like mid and small-caps start to work better. you will see the overall stock market work better. a lot of that will become good as people have confidence in the forward earnings estimates. that is being depressed by the recession concerns. >> alec young, great to see you. thank you very much. >> thanks, frank.

coming up on "worldwide exchange" jd vance turns up the atn e wealthiest endowments. that story's coming up. stay with us.

what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com.

welcome back to "worldwide exchange." taking a look at the week-to-date s&p gainers. fortinet and axon enterprise. telenova. on the laggards list, super

micro down 21% followed by warner bros. discovery. we have been talking about then already today after earnings. shares down big for the week. down 18%. charles river in third place there. turning now to a story we will follow quite a bit today. harvard and princeton and other big-ticket schools top the list of the wealthiest endowment funds if the republicans, donald trump and jd vance win the white house. we have robert frank with more. >> reporter: good morning. one of the signature bills is to tax the endowments. he called it over $10 billion from 1.4% to 35%. that would be a huge increase. senate democrats knocked it down, but he and other republicans in the house and senate continue to support the plan. vance says universities like harvard, princeton and duke and vanderbilt and others have gone

"insane" and need to be accountable. the endowments have grown large on the back of the taxpayers and are hedge funds. the tax would apply to about a dozen or more universities right now. harvard's endowment is $50 billion. yale and stanford and princeton around $35 billion. these have gotten large. the endowments help low-income students help pay tuition and it would hurt donations and f philanthropy. they passed tax changes with a new tax on endowments over $500,000 per student. that was about 50 schools at the time that faced that increase. that tax has raised less than one-third expected revenue. frank, revenue clearly not the driver here because it would not

raise that much. it is more symbolic. the universities quietly have been fighting back and are very worried about this if it does come to pass. >> very interesting. i was listening to you, robert. i looked at university of pittsburgh's endowment. i had no idea. when we talk about harris and walz, do we have specific ideas of their plans with endowments? >> reporter: walz in minnesota, you would think is a low tax state. he passed a 1% surcharge on investment income over $1 million. that, many say, has resulted in the wealthy minnesotans leaving for florida and texas. it could be the weather. minnesota winters will drive you to florida. his tax policies, which have been progressive and increased

in minnesota are certainly going to get attention as well as things like vance and the university endowment plan. >> robert frank, another great report. great to see you, robert. coming up on "worldwide exchange," we have the one word that every investor needs to know today and signs of a slowdown. what companies like ford, costco, lowe's and ulta are saying about the possibility of recession. our interview with the ceo of shell is coming up next. stay with us.

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. [disconcerting stomach gurgle] not again.

maybe i should get this looked at? [suggestive stomach gurgle] zocdoc? [talkative stomach gurgle] you're right, i bet they deal with this all the time. dr. finley really puts you at ease. let's do it! you've got more options than you know. book now. 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.

welcome back to "worldwide exchange." we are watching shares of rxo after the report on the miss on the top line. the company says softness in the freight market weighed on the business with ford, costco, ulta and lowe's. rxo is the third largest freight broker here in the u.s. joining me now is drew wilkerson, the ceo of rxo. >> great to be here, frank. >> i want to get more in the quarter in a second. shares are up 40% since you acquired coyote. i want to ask during the quarter you said the freight market was soft. what gave you the confidence to make m&a an environment in the soft freight market? >> this is the right time at

this point in the freight cycle to make the acquisition of coyote from ubs. we paid a fair purchase price for coyote. it models our strong results. it promises even more. customers will have access to more capacity. there was very little overlap on customers and very little overlap on carriers. we are excited to get this closed before the midpoint of the forth quarter. >> fourth quarter. >> we mentioned ford and dow and ulta. a cross section of industries. a lot of recession concerns here in the u.s. obviously, earlier this week, we saw the markets react to that. what are these companies saying to you? >> our volumes are down a little bit. if you look at the overall what's going on in the market for the second quarter, the cast

freight trucking index was down 5%. our's was up 4% on a year on year basis. we expected them to decline in the third quarter. they would be up sequentially. for us, volumes are down a little bit. we focused on making sure we've got ourselves ready for the market to inflect. if you look at the industry, there is far too much capacity out there. right now, you are seeing that capacity come out. as that capacity comes out, it will position us more for a market inflection >> you are mentioning the excess capacity which built up in the pandemic. i want to look at the possibility of the fed cutting rates. how does that impact your business and does that potentially create more competition or capacity when the rates go lower? it makes it a bit less expensive to buy equipment. >> if you look at what the fed does, either way what the fed does, it has an impact on the business. if the fed cut rates, that gives

an opportunity for consumer confidence and you start to see consumers going out and spending money on products again. if that does, that will be an increase in truckload volume for us and something we are prepared to handle. >> it could be an increase in volume. excuse me, drew. what about for your business and your customers? we mentioned ford and dow and lowe's. do you think that gives them confidenceinventory? >> inventory levels are in a really good position. for us, what we are watching is as we get closer to peak season, what happens with the consumer? will the consumer spend on experiences like they have for the past year and a half or spend it on goods and products? >> last question, drew. i talked to the peers about the use of a.i. and logistics. yesterday, we had malcolm on yesterday. he is talking about how he is using a.i. you are in an anssn asset light

business. what are you using? >> we have been using a.i. for over a decade. if you think about our margins, typically, they are at the higher end of transportation. last quarter they were at 14.7%. we are using machine learning and algorithms. it lallows us to act faster. it takes the data internally and externally and puts fair rates out for customers. >> drew wilkerson, ceo of rxo, thank you very much. >> thank you. coming up on "worldwide exchange," fresh headaches for intel on top of the massive stock slide. shares down more than 40%. cathie wood taking advantage of the selloff in big tech. ifyou haven't already, follow our podcast on apple,

spotify or other podcast apps. much more "worldwide exchange" coming up after this.

they started as dreamers. but today, they're stars. follow every moment of team usa on the network that brings you legendary speed and reliability: xfinity mobile. with xfinity mobile, you'll have the most powerful mobile wifi network with you on the go with exclusive access to speeds up to a gig in millions of locations nationwide. and right now, xfinity internet customers can buy one unlimited line and get one free for a year. get the fastest connection to paris with xfinity.

welcome back to "worldwide exchange." it is time for the wrap up. sho share of warner bros. sinking after the weakness in the ad

market in the tv business which reported a 13% decline in viewership. and intel sued for hiding the shareholders information and floundering foundry business and the segment misleading. and anduril raised $1.5 billion and valued the company at $14.2 billion. cathie wood finding opportunities in the recent rout. traders and investors are warning of a return to the japan yen carry trade following comments from the bank of japan official this week that the central bank will not raise rates in times of turmoil.

and topgolf cutting the full-year outlook. it has a review to return to profit bability and increase traffic. jobless claims are out at 8:30 a.m. eastern and eli lilly tops the reports with under armour. tom barkin is a voter on the fmoc this year and will speak out later today. and concerns behind the monday selloff haven't gone away. namely, fears the fed is behind the curve and economy is facing a recession. jpmorgan chase ceo jamie dimon still expects a downturn. he tells leslie picker that the odds of a anrecession is 30%. >> i'm sympathetic to people who

lose their jobs. you don't want a hard landing. there is a lot of uncertainty out there. >> let's bring in tiffany mcghee. great to see you. >> good morning, frank. >> let's get the take on the jamie dimon comments. first, he sees 35% chance of recession. most people, earlier this year, were seeing a soft landing. earlier this year, people were seeing 85% chance. at the same time, i want your take on the market risk of the jobless claims. bloomberg article looking at the swing after that. a lot of people think that could res re-spark the recession fears. what is your take on that? >> i think everything can be summed up with this, including the drama on monday. listen, on average, you know, the market has 3% to 5% pull backs and 1% correction.

so far, we had one 1% pull back. i expect volatility to continue. we're definitely seeing and i know we will get to my "wex" word of the day why monday happened. that is the back drop of the reasons. i expect we will see more volatility. >> what is your "wex" word of the day? >> my "wex" word of the day is double-whammy. it was the double-whammy that caused the tail spin. for investors that are still trying to make sense of what happened on monday, it was a double-whammy. the bank of japan raises rates. they did that on july 31st to strengthen the yen against the dollar. this is the carry trade. invest in the higher-yielding assets had to unwind that position. that led to the selling pressure across assets gls globally.

the jobs report last friday was weak and jamie dimon is talking about the recession whispers. that's really what happened on mond monday. it is important to understand that, frank. >> we understand what happened on monday, tiffany, but what about today? the estimate for this week is 2 240kf. it comes in over that, do you feel the recession fears pick up? >> potentially. right now, we are in august. we have until september potentially raises rates. the economic data coming out, including today u i, is really g to affect. that we will see that volatility. people are talking about the election and all of the things going on in the world. i think the single most important thing that's going to drive the markets whether the fed is going to cut rates in

september and any little piece of data that indicates that it might or might not is really going to move the markets. >> i think as of today, the consensus is they will cut coming up in september. some people may think is a 50-basis point cut. with that in mind, your pick is the xlp etf. why go defensive with the idea with will get rate cuts? the economy is pretty strong if you look at the atlanta fed gdp now at 2.9%. the last read at 2.8%. why go defensive? >> i think, you know, i was on your show two weeks ago. that could not have been a better set up for this week. asset allocation. i talk about it all the time on the show. it's so important, frank. if you have a diversified portfolio and asset allocation strategy set, you did better on monday. we think about what did well on

monday. bonds did better on monday. defensives did better on monday. it is exciting to get caught up in these large-cap growth stocks that really drive the performance of the market for so long. it is really important in a balanced portfolio. defensives, if you don't have any, you should consider. xlp is my pick. it's a really good way to kind of get broad exposure to the defensive sector. the consumer sector. >> one last question, tiffany. the mag seven declined significantly in the last month. are you looking to nibble or take a bite out of that after the big dips? >> frank, you know i'm always a fan of tech and growth stocks. yeah, you know, if you don't own these individually and you have conviction with some of these, of course, buying on the dip is always a good idea. maybe an opportunity to add to

some positions. >> all right. looks like everybody found religion with valuation. tiffany, thank you. >> great to see you, frank. we have seen movement in the futures. nasdaq now lower. the dow would open 120 points lower. that does it for "worldwide exchange." "squawk box" starts right now. good morning. futures are in the red and that follows a rally yesterday that completely faded away yesterday afternoon. if we add in today's selloff, we are close to the monday lows. not much of a bounce yet. the jury's still out on what's really happening. jpmorgan raising the chances of recession. what jamie dimon had to say about that and the fed's inflation challenge. and warner bros. discovery

shares slide after reporting a loss of a lot. a big loss. a lot of items in there and write downs. now we wait for eli lilly to report. it's thursday, august 8th, 2024 and "squawk box" starts right now. ♪ ♪ good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. in a rainy times square. i'm andrew ross sorkin along with joe kernen. becky is off today. we have the u.s. equities to talk about and to talk about how they actually haven't improved that much all around here. dow jones industrial average off 113 points this morning. nasdaq looking to open down 25 points. s&p 500 looking to open down 15 points. this all after yesterday's market failed to hold what