it is 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." heredia is your "five@5." one fed head raises a new red flag on the economy. cisco popping on the earnings beat and fresh round of job cuts shares of walmart chipping in higher ahead of the earnings report in two hours time the key numbers you need to watch from the world's biggest retailer. china's economy facing new

headwinds. we are live in beijing with the growth worries facing the second biggest economy. and big moves by the likes of buffett, ackman and tepper and others cutting key positions and taking stake in names you know it's thursday, august 15th, 2024 you're watching "worldwide exchange" right here on cnbc ♪ good morning thank you for being with us. i'm dominic chu in for frank holland this week. the s&p and nasdaq coming off the fifth positive session in a row. futures indicating it might be -- might be six the dow is implied by 85 points higher s&p up 4.5 points and nasdaq as high as 32 we are looking at the pre-market gainers. cisco getting a boost on the back of the earnings report and

fresh job cuts nike shares rising following the stake from one high profile investor walmart shares are higher ahead of the earnings report later on this morning we have more on all of those stock stories coming up in the show we are checking on the bond market as investors prepare for jobless claims and sales data before the opening bell. the ten-year note yield is a hair over 3.84%. the two-year note yield at 3.96%. the 30-year long bond ticking higher at 4.129% u.s. oil prices coming off the second straight negative session. we are seeing green on the screen right now wti is $77.43. similar percentage gain for ice brent crude. $80.17 gasoline futures up .2% to

$2.32. we are following a busy morning of economic data out of europe and asia. dan murphy has the latest with the uk gdp report and eunice yoon is in beijing with the concerns of the chinese economy. dan, we begin with you >> dom, good morning disinflation is the name of the name here. we saw uk inflation picking up less than expected now it also following the latest gdp print which shows the uk economy continuing the swing to growth in the second quarter moving 0.6% higher despite a pull back in the month of june with gdp per head actually coming in slightly lower on the year what's interesting though is the political reaction because we have seen chance or of the exchequer rachel reeves hitting out the previous government saying labour is under no illusion as to the scale of the challenge it inherited here is a look at the european

markets tracking through the course of the session today. markets in this part of the world also opening higher as investors digested the cooler than expected inflation read not only in the uk, but also in the united states. you can see here major markets have been moving stronger up by just around .50% germany's dax leading equity gains here with the move a at .42%. dom, back to you. >> dan murphy with latest on the market action. let's turn to eunice yoon with the continued struggles facing the chinese economy. what's happening >> it is not looking very good, dom. the second half for china really got off to a weak start. other than the retail sales figures which came in slightly better than expected because of summer holiday spending, the rest of the july data really suggests a sluggish momentum

the industrial output figure as well as fixed asset investment missed retail -- not retail. the real estate sector continues to be a drag the property investment number was down 10.2% year on year. new home prices also fell at a fresh nine-year low. goldman believes the second-hand market is worse with the price declines of 5% to 20% for the past year. the stalling property market and lack of factory activity prompted a warning from the chinese largest steelmaker of the protracted steel winter potentially more severe than the slump in 2008 and 2015 because of the lackluster demand dom. >> eunice yoon live in beijing with the the latest on the chinese economy. thank you very much for that. turning now to the u.s. side of things, chicago fed president austan goolsbee is raising a red

flag on the economy. he tells bloomberg news he is more concerned about the labor market than inflation. following progress on prices and disappointing jobs data, goolsbee says current interest rates are quote/unquote rerestrictive. a few that only would be appropriate if the economy is overheating. he did not comment on the likelihood or size of the interest rate cut at the next fed meeting in september traders are pricing in a 37% chance of a 50-basis point or .50% rate cut that was down from a 55% chance a week ago joining me now is the ceo and vice chairman. kalaua, this is interesting as they have change even off the volatility we saw a week and a half ago can we expect this volatility to continue given some of the mixed signals and the economy and from polic

policymakers >> aloha from hawaii, dom. so good to be here we are forecasting continued volatility unfort unfortunately, i don't think we have seen the last of it a lot of that is contributed to a couple of things one is the consumer and data behind the consumer remains varied as far as their strength and because the consumer is attributed to over 70% of our gdp, the consumer remains key to the economic growth going forward. i think we need to be prepared to anticipate some mixed bag of data and the market will ebb and flow with that in addition to that, we have come off q2. we are pretty much done with q2 earnings they were relatively strong. where we see some possible volatility in the future is with the forecast for the second half of 2024 earnings and maybe disappointment there we are coming across a really difficult quarter over quarter

and year over year comparison. we are forecasting additional anticipated volatility >> what we've gotten this week so far and next week into a certain extent beyond that is the look at the unintersection with the consumer and market we have walmart coming up and we heard from home depot. what do you see in the retails bonanza which told you one way or the other that the consumer or the economy is in decent shape or not so? >> so, jobs remain extremely important to consumer strength and ability for the consumer to continue to spend. what we've seen in many of the reports have been big-ticket items have been sluggish the high-end portion of the product cycle are tending to be a bit weaker than expected at the same token, the lower

side of the spectrum continues to be sluggish this week is huge with walmart coming out with earnings we like to see where their forecasts are. less about what they have seen in the last quarter, but what they anticipate going ahead. >> and the part of the market right now that has a lot of folks concerned is the mega-cap t tech >> we still like a.i we think a.i. is going to continue to be a disruptor and place for growth going forward we would use market consolidation and pullbacks to lean into some of the better, well named companies also important in that is revenue growth and sales growth going forward. the ability to capitalize the growth into the future we are seeing areas of

additional value in materials and primarily gold and gold miners you had a move in gold boullon the miners have not participated in the up trend. from what we are seeing in our research, there are many high-quality have though gotten operations under control balance sheets look better and management is much stronger. we see potential in that area as well >> mega cap tech kalei, thank you very much have a great day. >> you, too. thanks, dom. a news alert from washington, d.c. the biden administration announcing a plan to lower the cost of prescription drugs for americans. the white house said the plan was negotiated with ten drug companies and deals with diabetes, stroke, heart disease and certain cancers.

new prices for the medications will do into effect in 2026 t. is expected to save taxpayers billions. and news alert harris will impose the first ever federal ban on corporate price gouging in the food and grocery industries during her address in north carolina tomorrow harris will also propose giving the ftc the authority to i am pose poseimpose penalties and call for a crackdown in mergers and in food and groceries. meanwhile, senate majority leader chuck schumer feels the senate can pass a buy ipartisan crypto deal. that marking the latest move to paint the party as pro crypto after long being viewed as big

critics of the crypto industry we have more to come here on "worldwide exchange," including the one word that investors need to know today, but first, digging into the moves of the money of buffett and ackman and others plus, why wells fargo is opening up the history books ahead of the potential rate cuts looking into 1995 for how markets could perform. later on, the key numbers to watch ahead of walmart's numbers and why the next guest is calling it an excellent opportunity. we have a very busy hour still ahead when "worldwide exchange" returns after this customers break.

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. with so much entertainment out there wouldn't it be great... ...if you could find what you want, all in one place? show me paris. xfinity internet customers can enjoy the ultimate entertainment experience and save on some

of the biggest names in streaming, all for just $15 a month. get the fastest connection to paris with xfinity. . welcome back let's get a check on the top stories and some big moves made by big investors silvana henao is here with those. good morning, silvana. >> dom, good morning a number of big moves by investors in the recent quarter including warren buffett's berkshire hathaway 13f filings show berkshire took small stakes in ulta beauty and electronics and heico and increasing the stake in chubb. in addition to reducing apple and bank of america, berkshire trimmed chevron and capital one and t mobile and big ackman reducing nike

pershing revealed it owned 3 million shares worth $229 million and the firm selling about 16% of its shares in alphabet and nearly a quarter of its chipotle stake and david tepper slashing its stake in nvidia by more than 84%. nvidia was the fifth largest holding at the end of the first quarter. appaloosa cutting amazon, microsoft, meta and alphabet, dom. lots of moves. >> thank you very much, silvana. see you later on. turning back to the broader markets and inflation falling below the 3% mark since 2021 is raising he can pecexpectation f the fed interest rate cut next month.

highlighting the parallels between now and the summer of 1995 given the current conditions for more, let's turn to paul christopher who is the head of strategy at wells fargo institute. 1995 to 1999 was a very eventful time in my life and it was for the markets as well. if history doesn't repeat, but cr rhymes, what is the par lallels between now and circa 1995 >> the parallel is the inflation lowering and economy not collapsing the labor market is slowing and consumers are hanging in there the fed is in a good position here if they could be proactive enough, not talking about intervening moves, but a 50-basis point cut in september and maybe a couple more before the end of the year with the economy showing resilience and

inflation way past its peak, you have a chance at a soft economy. that means slowing growth enough and the fed cuts and you see credit to promote more growth. that is a good sign. a strong connection between now and the summer of '95. >> then what are the key investor take aways, paul, given we did see this massive or historic run during that time doc timeframe? it feels much of that has been already priced into the market >> as you say, history rhymes, it doesn't quite repeat. over the next couple months, we are expecting periods of volatility, especially associated with the election geopolitical tensions are high right now. we have seen reduction in liquidity available to go into the markets as a result of the carry trade extended and having to pull back there is some chop which is likely to show up in markets,

especially the s&p 500, over the next couple months after that, what will happen is the fed being proactive, not just a couple of cuts, but several larger ones or in combination. that bringing the short-term interest rate down by a full percentage point should start helping financials which pay interest rates on deposits you see the long-term rates come down the short rate comes down more they are gaining more on what they save in deposit interest of what they lose in lost bank loan revenue. financials should benefit here we also expect tech to benefit once again as the long-term interest rates come down and earnings get discounted by less, the tech sector should rebound here nicely. that's exactly what happened in 1995 financials led the way until tech took over then you had a general cyclical

move we favored comp services which is a stack look alike. we positioned going back to neutral on small caps. we didn't go overweight here because unlike 1995, we don't think this is smooth sailing from here on there are those events coming up that we feel are worth preparing for. a neutral position is good for small caps right now, but we would be overweight large caps in the sectors i mentioned >> of course, what we have to figure out is if the fed learned lessons for what happened in 1999 to 2001. paul christopher, thank you very much still ahead on "worldwide exchange," nuclear energy's make or break moment and your big money vemors and cisco systems keep it here

[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. tony, its gone. no.

how am i going to do this? welcome to the mdy mid-cap cup, presented by state street global advisors. today's challenge is to play 9 holes without the middle of your bag. how does that sound? that sounds terrible. ♪♪ ♪♪ ♪♪ ♪♪ welcome back to "worldwide exchange." time for the three stock stories of the morning cisco systems cutting staff over a.i. speaking of cisco, do not miss our interview with cisco ceo chuck robbins with "squawk on

the street" at 9:00 a.m. and lenovo climbing 20% driven by growth across the computing and infrastructure and services units. in may, it revealed the first a.i. pcs those shares are down 1% in hong kong trading shares of lumentum fourth quarter beat demand as it expands the cloud and a.i. customer base which should lead to higher growth in the coming year shares up 15.5% pre-market nuclear energy is at the turning point right now seeing momentum as power demand jumps from electrification in data and a.i. centers the steep price tag is presenting challenges for the u.s. goal to triple nuclear power capacity by 2025

our pippa stevens traveled to georgia for an up-close look for the first reactor being built in years. it is now up and running >> reporter: i'm here where the nuclear reactor came online last year, they're the first new liability reactor ly built reactors built in years. this plant provides power for 2 million homes making it the largest clean energy source in the u.s. nuclear energy makes 20% of the grid and the meltdowns at fukushima shifted the discourse on nuclear power the industry is over budget and behind stchedule. it was double the cost and some falls on the georgia consumers

>> it had a lot of progress once upon a time, but it is a serious heartache for people in georgia. i think other utilities and commissions considering nuclear need to look at this as the danger it has become for the people paying the bills because the cost overruns have been so tremendous >> reporter: southern company says part of the increase was building the nuclear supply chain. >> it was an arduous journey from the tsunami in fukushima and the contract going bankrupt and covid. putting the band back to the with the supply chain and resources. there were a lot of things that had to be brought together for the first time in a long time. >> reporter: now the two units are online, there are no commercial reactors under construction in the u.s. for cnbc business news, i'm pippa stevens. thank you for that report. coming up on the show, taking on

a giant. softbank kicking the tires on a pop team-up with a u.s. chip maker. if you haven't done so, follow our podcast if you miss "worldwide exchange," you can check us out on apple or spotify or your podcast app of choice. "worldwide exchange" in audio format we'll be right back. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley

ryan t. writes, "moving is stressful. or reverse orders so you won't miss an opportunity. can you help me take one thing off of my to do list?” ugh, moving's the worst. with xfinity, you can transfer your internet in just a few taps. just a few easy moves. did somebody say “easy moves”? ♪ ♪ oh no. no, i was talking about moving your internet. this will move the internet. ♪ ♪ ooh, ooh. -let's keep it professional. professional dancers! -ok! stay connected during your move with the best in home wifi. easily transfer your services in the xfinity app. bring on the good stuff. it is 5:29 a.m. in new york and there is still a lot here on

deck walmart earnings are out this morning. what the retail giant can tell us about the consumer and economy. walmart is higher ahead of the numbers and helping futures as the s&p and nasdaq go for their sixth straight winning session or try it. then the secret life of a young oligarch a scheme targeting the u.s. economy. eamon javers joins us with the live spy thriller and crimes of putin's traitor it is thursday, august 15th, 2024 you are watching "worldwide exchange" here on cnbc welcome back to "worldwide exchange." i'm dominic chu in for frank holland this morning let's pick up the half hour

check of the u.s. futures. the dow jones is higher by 89. we're taking a look at the nasdaq pre-market gainers. we hit on cisco a moment ago talking about the big move there getting a boost on the back of the earnings report and fresh job cuts cisco systems up 6.5%. we have on skip caray and marvell technology and arm holdings there is a theme with chips. checking on the bond markets as investors prepare for jobless claims data before the opening bell the ten-year note at 3.815%. the two-year note at 3.96% let's check on oil prices. wti and international benchmark brent crude is coming off the

second straight negative session. we are seeing green today. $77.42 ice brent crude futures are $8 $80.21 gas futures are $3.22. let's get the corporate stories with silvana henao hi, silvana. >> good morning, dom softbank holding talks with intel about producing an a.i. chip to compete with nvidia. now this is according to the financial times which says talks fell apart after the u.s. chip maker struggled to meet the japanese groups requirements ft adds softbank is discussing with taiwan semiconductor. and alaska airline contract offer rejected both sides saying they remain committed to reaching a deal the rejection comes as alaska works to merge with hawaiian

la airlines. newly named starbucks ceo brian niccol he will be paid $10 million in cash and stock awards when he joins the company next month that package could be ultimately worth $113 million if he hit targets set by starbucks. >> it would take a lot to lure niccol away from chipotle to starbucks. walmart reports the second quarter results before the opening bell today the numbers from the world's largest retailer may be scrutinized as the market is looking for any signs or tea leaves, that consumer are not spending as much, especially after amazon and home depot are warning consumers are being cautious zach johnson at stack financial. walmart is one of the largest

holdings in his firm's portfolios zach, you have an axe to grind you own walmart. why do you consider keeping it and what do you look for >> well, i think you stated it earlier. one of the most universal stories of this earnings son son has season has been the u.s. consumer mcdonald's and starbucks and airbnb stated this slowdown is prevalent and taking place when we look at walmart, we anticipate a top line revenue slow down particularly from the low-to-middle income consumer. what walmart has done is attracting the high-end consumer we really want to see what they say and what commentary is the higher-income consumer hitting that same type of wall that the lower-income consumers are with walmart, we feel they are doing an excellent job of

insulating themselves from the slowdown that's whereas the best of breed consumer stable do an excellent job of finding alternative revenue sources and tied to big data and cost cut and reduce the overall costs they are incurring. that's where walmart can stand above the rest. >> stack financial clients have enjoyed a great run so far this year that stock is up 30% it's leading to some concerns about whether the optimism has already been priced in that 30% move has now led to a forward price-to-earnings ratio of around 29 to 30 times next year's anticipated earnings. is that a reason for concern and would you want to lighten up positions given the kind of run that we've seen? >> well, i think one of the biggest statements regarding that is we are not as optimistic

of the soft-landing scenario because of that, we feel rotation will take place that includes a movement out of the big-cap technology companies and highly concentrated with the technology consumer discretionary and instead, you want to rotate toward more defensive areas of the market. consumer staples, healthcare utilities. because this, walmart can garner the more premium multiple. you really bought walmart in the past or the course of the last year because of the growth profile. they've really expanded the ecommerce business and done a good job with growth now you want to hald iold it bee the defensive properties you want to capture market share from their peers that is the defensive property that we think is why you want to

continue to hold woalmart >> you laid out the macro and micro and expectations for the slowdown how exactly would you be positioning outside the walmart trade with regard to this particular move? is it more fixed income or other defensive parts of the market? >> yes, both we do think you want to hold a more healthy cash reserve. for our managed portfolios, we are below 60% invested in the overall equity market. the positions we hold are more defensive in nature. more specific names in the he healthcare area. united healthcare is a name we like they have growth opportunities with optum, but they have the backbone of the health insurer utilities is an interesting segment of the market. they haven't benefitted as interest rates have risen. now, if we anticipate interest

rates might come down as the fed anticipates a cut in september, specifically, we think utilitie make sense here. there are different areas where you find the core utilities and that's where you want to insulate yourself. generally speaking, this idea of holding a higher cash reserve and maintaining a defensive f posture in the equities you hold. >> zach jonson with stack financial. thank you. >> thank you coming up on the show, shares of robinhood getting a boost on the back of the fresh upgrade this mniorng details when "worldwide exchange" returns after this

welcome back to "worldwide exchange." time for the morning call sheet. wells fargo downgrading m & t to an under rating. it will face a tough road ahead. morgan stanley is upgrading victoria's secret. the announcement of the new ceo puts the company back in play. and deutsche bank upgrading robinhood to a buy it calls it a best name for brokers in the near and longer term robinhood shares up 2.5% in response to that. time for the global briefing

japan's economy rebounding in the second quarter gdp rising 3.1% thanks to the rise in consumption. it's not as positive in china. factory output slowing for the third straight month in july showing the recovery in the second biggest economy may be losing steam, but retail sales were higher than expected thanks to stimulus targeting household spending. the u.s. economy grew in the second quarter gdp grew 0.6%. the british economy has recorded steady growth almost every month this year as the uk exits a shallow recession. still ahead on the show, the one word that every investor needs to know today, plus a spy thriller made for the big screen playing itself out in real life. eamon javers has the inside look at the secret life of a young oligarch at the center of that

historic u.s.-russia prisoner swap and brazen hack targeting the u.s. economy icarndorhasty.stk ou f tt or feel the power of osteo bi-flex®. taken every day, it's clinically shown to improve joint comfort in 7 days, with significant improvement over time. ( ♪♪ )

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. 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." cnbc is launching an original podcast today which is like ripping something from the big screen the secret life of the oligarch and scheme to target the u.s.

economy and the historic u.s.-russia prison swap. eamon javers is joining us with more eamon, you and your team were working on this project for months and then just at the end, one was traded back to russia. when did you guys figure out something was happening and something was going on here? >> dom, this was a fascinating project to work on for nearly a year the whole time we were working on the story, we know the young oligarch at the center of the story was potentially part of any trade deal that might happen for evan gershkovich and other me americans. you see putin there. the united states' gershkovich there behind the flowers with putin. freed him as part of the

prisoner swap. it happens just by coincidence, the final fact checks of week before the prisoner swap happened, which happened in the utmost secrecy i went to check the federal inmate register data base which lists the inmates in the u.s. prisons to detail the checks the entry came up blank, dom that's when we realized he was no longer in the custody of the u.s. bureau of prisons just days before the prisoner swap was announced. we knew something was happening. you see the pictures from our documentary. we knew something was happening that week. we were in contact with the u.s. lawyer who told us that he was out of the custody of the bureau of prisons and the lawyer told us that he, the lawyer did not know where he was. there were moving parts here we don't know what it was until

the day of the announcement. >> eamon, can we rewind for a second here? we want people to listen to the podcast. what did he do to land him in u.s. federal prison? >> that's the subject of the podcast. by the way, it launches in 20 minutes. on your commute to work this morning, you can download that and listen to it on the way in what he did here was operate a company in moscow called m-13. this company was a media monitoring and also cybersecurity company based in moscow he was extraordinarily well connected with russia's elite. he worked with putin's office. he was connected to members of the russian intelligence and defense elites he operated out of that company, m-13 in moscow in a hack-to-trade operation. he and his hackers were stealing

enormous amounts of american financial information and s.e.c. filings before the s.e.c. filings were made public they had tomorrow's news today and were able to trade on that in public markets and hit wall street investors who did not have access to that same stolen information. they were trading in companies like tesla, for example. they knew tesla earnings before tesla reported them. they were able to buy shares on days when it would be a big beat and they made tens of millions of dollars doing that. all of it, we are told, by our sources and you can hear this in the podcast, all this we are told with the blessing of the government in moscow and blessing of vladimir putin's regime. >> really quickly, eamon, before we let you go. he is back on russian soil what is it going to be like for him? >> that's a really interesting question i think that hug you saw from vladimir putin really tells a story. i think he will be welcome back

with opened arms i think there will be suspicion and frustration for getting caught by the americans. we will see how he is able to navigate all that the big question for american investors is whether he and other people like him in moscow will be able to continue brazenly engaging in hacking and insider trading without the u.s. really be able to do anything about it if they are in moscow and stay in moscow, they are difficult for u.s. law enforcement to get. this is an ongoing problem right now for investors. >> this is a fascinating, again, fascinating story. cross border and financial markets and everything else. eamon javers, thank you for this again, right after 6:00 a.m. eastern time, watch for the podcast. "putin's trader. download that on the podcast app of choice. thank you, eamon. coming up, the stocks you are set to benefit from that are

not in the magnificent seven we'll have that trade coming up. pete g. writes, “my tween wants a new phone."

"how do i not break the bank?" we gotcha, pete. xfinity mobile was designed to save you money and gives you access to wifi speeds up to a gig. so you get high speeds for low prices. better than getting low speeds for high prices. -right, bruce? jealous? yeah, look at that. -honestly. someone get a helmet on this guy. get a free unlimited line for a year when you add one unlimited line. plus, get a new google pixel 9 on us. bring on the good stuff.

welcome back to "worldwide exchange." time for the "wex wrap-up. harris campaign is going to propose a food and beverage

price dgouging and impose penalties. cisco systems shares jumping on the revenue and earnings beat cisco announcing plans to cut 7% of the work force. cnbc will speak with chuck robbins as 9:00 a.m. and a number of companies taking a stake in ulta and heico as well as chubb pershing selling its shares in chipotle and david tepper's firm cutting its position in nvidia and amazon and microsoft and alphabet as well

> here is what to watch for today. we will get earnings from walmart, alibaba, jd.com, deere and others we will have fed presidential better toe mualbertomaselem speaking out today let's bring in jay with more this market has been a big bounce from the lows ws we saw s monday >> thanks, dom we actually have been very, very bullish this year. we started out with a 5,000 target and now with a 6,000

target we think during the august period, investors tend to overreact. for instance, the jobs report last week, we had an increase in unemployment which was all due to weather we think the combination of the seasonality and the yen trade going away and everybody overreacted. we are not surprised we are bouncing back. we think once we get through the election, we will have a fourth quarter rally. it makes sense to dive in. 5,000 is a good place to enter. >> how much do you pay attention to positioning the overreaction might have been measured if it not for people placing bets, speaking of the yen carry trade, which causes a cascading type effect. what do you look at to make sure that things played out or can be more constructive to the upside? >> well, actually, the vix is

good to watch because what happens with big hedge funds and short-term traders is the market looks really bad and our hedge fund we bought put futures as japan crashed. when the market started to open or slightly before the open, we covered our puts or sold our puts you will lose money if you own puts when there is a 60 vol. everybody does that and that stabilized the market. we slowly added back and look at what is happening and the market is talking to you. we have been slowly adding back our exposure in etfs and hedge fund. >> with all of that in mind, we ask guests for the word of the day. >> our's is taxes. it is one word, so we didn't say corporate taxes. we are more con ifident now tha

before august stafrprted you have to justify 21 multiple, you should have rates below 350. the caveat is we're assuming th senate goes to the republicans and probably the house to democrats. not sure about the presidential. it looks good for kamala right now. the democratic sweep will imply a large increase in corporate taxes. we would probably reduce our target back to 5,500 with a lot of uncertainty it drives economic growth and earnings and earnings growth we need to know the corporate tax rate is going to be before we establish a new target. >> with that in mind, a few moments left rhere are there parts of the market that look attractive for you >> reits and financials. they dropped substantially with

the note of recession, which there is no evidence of. those companies became a buy we added more goldman sachs and those that benefit from reits and benefit from the a.i. boom. >> jay hatfield. thank you. >> thank you "squawk box" picks up the market coverage starting right now. good morning stock futures pointing to a higher open as investors await a flood of economic data and earnings from retail giant walmart. we are also going whale watching we are learning a lot more about investments by the world's largest investors, including the stake in consumer stock. we'll tell you about it by berkshire hathaway we now know what starbucks is paying brian niccol to leave chipotle what we know about his pay package. it's thursday, august 15th, 2024

and "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm andrew ross sorkin along with kelly evans and mike santoli. welcome. joe and becky are both off look at equity futures at this hour we have green on the screen. 94 on the dow. nasdaq opening 49 points higher. treasury yields right now, the ten-year yield at 3.843% the two-year at $3.959 that cpi number we'll talk more about as we discuss how and req why we are where we are. >> and where we are is interesting.