it is 5:00 a.m. here at cnbc global headquarters and welcome to "worldwide exchange." here are the "five@5." the s&p 500 ans year.

it is friday, august 16th, 2024. you are watching "worldwide exchange" here on cnbc. ♪ good morning. thank you for being with us. i'm dominic chu in for frank holland this week. let's kickoff with the check of the s&p and nasdaq. right now, the futures are big again. modest gains. the dow jones higher by 55 points.

s&p up 69 points. taking a look at the biggest gainers in the nasdaq 100. that large cap side of things with the tech heavy index. you see microchip and super micro computer and moderna up roughly 1.5% to 2% each. checking on the bond fresh data on the housing market. the benchmark ten-year treasury note yield is dipping lower at e at 4.07%. oil coming off the possiblitive session in the last three. wti and brent crude is rising. wti is $77.21.

ice brent is $80.20. we have breaking news on texas instruments. becoming the latest company to receive money from the chips act. the biden administration announcing it will provide the company with up to $1.6 billion in direct funding to help build three new facilities in texas and utah. the administration says those projects will create 2,000 manufacturing jobs over time. texas instrument shares are marginally higher in the pre-market session. let's look at the latest in asia and europe with dan murphy in the london newsroom. good morning, dpan. >> good morning, dan. let's look at the european trading right now. it has been a broadly positive day for the region following on from that strong wall street lead overnight and u.s. equity futures ticking higher to support overall market momentum

here. the asia trading day is broadly positive, too. all in all, we are seeing markets pull higher here. the ftse mib is the regional out performer by 2.23%. the only out liar outlier here london. up .50% month on month in july. certainly a turn around from the revised .9% fall in june and in line with forecasts. not too much to write home about. in terms of what we saw in asia, all eyes on the nikkei, dom. look at the move. better than 3.46% on the day capping off a strong week across asia. the nikkei up over 3% and crossing that 38,000 mark for the first time. the nikkei seeing its best week in four years amid the broad rally in the asia markets.

the shanghaind in asia and where we stand in europe. over to you in the united states. >> dan murphy, thank you very much for that. have a great weekend. time for the big money movers. shares of applied materials are lower despite the third quarter results that beat estimates. the equipment maker is estimates fourth quarter revenue above estimates as a surge in a.i. demand. h&r block is guiding for another year of revenue growth. it is hiking the quarterly dividend by 17% and announcing a $1.5 billion stock buyback program. shares of auto desk are lower. bloomberg reporting the company has used a controversial sales strategy it promised investors

it would give up. it promised discounts to corporate customers who are willing to pay up for multi-year contracts. a spokesperson tells bloomberg the up front billing continues to decrease. we have more coming up on "worldwide exchange," including the one word every investor needs to know today. first, meta platform facing capitol hill and looking for answers on the platforms. and later on, the consumer pulse check. our all-star panel debates how strong americans and their spending habits really have. we have a very busy hour when "worldwide exchange" returns after this commercial break.

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all right. let's get a check of the top corporate stories with silvana henao. silvana. >> good morning, dom. lawmakers are seeking answers from mark zuckerberg over illicit drug ads on the platforms. the lawmakers have sent zuckerberg a letter on the matter citing reports from "the wall street journal" and a non-profit group that found the ads. meta confirmed the receipt of the letter and says it works with law enforcement to combat this type of activity. tiktok making itslatest effort to prevent a potential ban in the u.s. from taking

effect. in a new filing, the chinese social media company telling a federal appeals court that the justice department misstated the company's ties to china. oral arguments in the case are scheduled for next month. stellantis is being sued by a group of u.s. shareholders accusing the automaker of defrauding them by concealing weaknesses in the company before posting disappointing earnings that caused its stock price to fall. they say stellantis artificially inflated the stock price for much of the year by making overwhelmingly positive assessments about the state of the company. stellantis telling reuters the lawsuit is without merit. dom. >> silvana henao with the latest headlines there. thank you very much for that. turning back to the u.s. markets. they're set to close up since last year. the s&p and nasdaq set to break their four-week losing streaks.

those gains helping to push the s&p back in positive territory for the month marking a big turn around after the index notched the worst start to the month in almost eight years. let's bring in dan vero at p palisade capital. dan, the story changes so quickly. we care so much about inflation and interest rates to now we're scared about growth or worried about growth and inflation rates. now we're back to things are benign on the inflation front, but now they're back to retail sales being more rere robust? >> it is all tied into the fact that are we in a soft landing or is it something worse? from our view, nothing has really changed, but that doesn't mean the market isn't going to render its opinion. >> on a daily basis.

>> yes. you get a couple of key factors and that is the risk. you had a bad unemployment print a couple weeks ago and that really concerned everyone. i was traveling in europe. i was amazed how the market responded quickly to one data point. that is the risk on one data point. i will say most recently the inflationary data is pointing toward giving the federal reserve the green light to begin the process of lowering interest rates. >> okay. if that's the case then, that's because inflation is coming down and there is also a growth scare, let's call it, between the jobs data and other economic data showing signs of a slowdown. the fed doesn't want to be behind the curve, so to speak, with regard to this. how exactly then would you justify the move that we've seen back into the safety trade that has been really -- i use it tongue-in-cheek, but people buy

mega cap technology because they want the growth and the relative insu insulation. do you think that's the right thing to do this time around if the market has legs to the upside? >> i don't. you are seeing the evidence that the market is broadening out which is why i'm very bullish on small and mid-caps. >> they have not recovered. >> they have not. you have a short covering rally in july, you know, that's the early phase of what you typically see. you know, actually, you know, the profitable component of the russell 2000 and russell 2500 have held upper than the less profitable components of the markets. i would focus on the financials, namely the banks. the banks have held up well in the pull back in the marketplace. if there was something that was really insidious or a bigger slowdown occurring within the

broader economy, you would see it in the banks. >> dan, i remember it wasn't that long ago. i can count the weeks or months -- certainly the last couple years, when commercial real estate and the smid -- small and mid sized banks, were overwriting the conversation. it doesn't feel that way now. do you feel that is justified or not? >> i do because the prospects of lowering interest rates will cause a steepening of the yield curve going forward. with regards to the small and mid-cap banks, that is right. there was concern of the asset quality. the asset quality is quite good. you have extreme valuation to support here for the smid banks. they trade to the premium of the larger banks, but they are trading at a significant discount to the money center banks and super regional banks. >> dan, before we let you go,

how as an investor or trader, do you look at which smid cap banks you want to buy? the geography? what is on the shopping list? >> you want the best management teams. you want to look at the balance sheets to see where the exposures are. all real estate is local. the regions of the country will be very important as well. not paying too much and looking for where those banks can really do well. in this environment, i think the setup is really positive not just for banks, but small and smid-cap stocks. not just as a trade, but a long-term secular move. >> dan veru, thank you very much. >> thanks, dom. coming up on the show, we're tackling higher prices. the varying visions on how vice president kamala harris and former president donald trump

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welcome back. let's turn our attention to the 2024 presidential race. vice president kamala harris is expected to release more details on the economic plan and help fuel the creation of 1 million new homes. harris is also looking to tackle

corporate price gouging. our megan casella joins us with more. good morning, megan. >> good morning, dom. these are expected to be vice president harris' most concrete policy proposals yet. she will layout an economic agenda for lowering prices for families and a chunk focusing on housing. she is looking to incentivize builders for affordable rentals. those plus a $40 billion innovation fund are meant to spur construction of 3 million new homes over her first term. she is viowing to provide down payment assistance for first-time home pew buyers. she is focusing to boost competition in the meat processing industry. the harris campaign argues these

proposals stand in contrast to those from president trump. including the across the board tariffs that would droive up prices. trump laid out his agenda to bring down costs. he is promising to cut down oil and electric prices and undo every regulation that president biden has passed. that is something that could save families thousands of dollars per year. dom, economists have taken issues with the plans. there are concerns that home buying assistance to hurt rather than help the housing supply problem. the tariffs are expected to make consumer goods more expensive. there is a common thread i want to highlight. both are giving voters someone to blame for the high prices they see. for trump, that's the government and for harris, it's the corporations. dom. >> megan, it is interesting. if you put a first-time home buyer credit in there of a

dollar amount, you imagine a home sells for that much more. there are all nuances here. i wonder how likely many of the proposals, whether from harris or trump, how likely are they to come to fruition to become policy or law? >> the right question to ask. a lot of this is aspirational. anything with taxes has to go through congress. it depends on how well the democrats do. they have to win the white house and significant control on capitol hill as well. on the trump side on the drilling, it is not a bad idea for what he wants to do to produce oil, but it takes time in the near-term in the 12-month window he is talking about. he will not increase supply the way he wants. a lot of this is talking points for now. they have to drill further into the policy details to make things happen here. we can see the priorities of where each party is focused. >> tackling inflation is a big part of the story here.

megan cassella, thank you very much. see you later on today. for more on the vice president kamala harris vision, let's bring in rob casey at signam global advisors. you heard megan's report on the proposals. i wonder how important this is going to be for voters and how they see the details playing out. are they even going to want them? >> dom, thanks for having me. glad to be with you. honestly, i totally agree with megan. this is the no detailed agenda we will hear from the harris camp. i still think harris' speech will be light on details. they have an opportunity, the harris campaign has an opportunity, to really reset the narrative on the economy. nobody is voting for bidenomics in november. nobody would have even if joe biden had still been in the

race. people in the country trust harris more and more on the economy relative to biden. harris is leading over trump when people are asked who is more trust worthy on the economy in some polls, i don't want to overstate that. it is an opportunity for harris to reset her economic agenda of how democrats will govern beyond 2024. i still think beyond what megan discussed, we won't hear stringent details. >> rob, we are looking at the current election odds. again, these are betting markets and they are not liquid in nature, but they do show the vice president kamala harris has a lead over president trump when it comes to people putting money and placing bets on it. for the listeners on sirius xm radio, the harris predicted odds stand at 58 and the trump 2024 predicted odds stand at 44.

this is a pretty interesting contrast to where biden and trump stood. the economy is still an issue here. it's very important. how is it that some polls say that the former president would be better on the economy and the vice president play out in some of these predicted results? >> so, you know, i think the first thing to say it is clear in polling that voters are not holding harris to the economy, especially the high inflation to the extent they were holding biden. harris has an opportunity to improve when we are thinking about the economy. you know, the betting markets are interesting. we at signum look at the betting markets every day and how aspects that joe biden sdtepped out in the first place changed the market. they respond day-to-day to polling.

over the past two weeks, we see harris polling better and better. obvi obviously, if that continues moving into november and beyond the democratic national convention next week, harris is in a pretty good position and that is reflected in the betting markets. the race is close. harris does, like biden did, have to hold on to pennsylvania, michigan and wisconsin to have a really good chance of win in the ele election. if show de does seo, she does h good chance of winning. you know, harris' standing looks better than biden's did before he dropped out. >> messaging is key in the final stretch. rob casey, thank you very much. have a nice weekend. coming up on the show, softbank not throwing in the

towel on the a.i. ambitions. the new move it is making to cash in on the red hot tech trend. if you haven't already, follow our podcast. check us out on apple or spotify or other pcaodst apps. it's "worldwide exchange" in audio format. we'll be right back.

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it is 5:28 a.m. in new york and there is still a lot here on "worldwide exchange." here's what's still on deck.

retail earnings coming in fast and furious. walmart is the latest. what do the results from the group say so far about the health of the consumer and what hints does it provide for investors? futures are higher this morning as the s&p and nasdaq look for seven straight winning sessions and wall street is hoping to put a bow on its best week of the year so far. wall street's love-hate relationship with crypto. one big name bank is jumping in and one is pulling back. what gives? it's friday, august 16th, 2024. you are watching "worldwide exchange" here on cnbc. welcome back to "worldwide exch exchange." i'm dominic chu in for frank holland. let's check on this half hour. the dow implied higher by 67

points and s&p higher by 81 points and the nasdaq higher by 48 points. we're digging into the market action right now for the major indices. over the last week, we could be due for a banner one. the one-week chart of the dow, s&p and nasdaq, you can see the action. everything is positive. dow up 2.5%. s&p is up 3.5%. the nasdaq is up 5%. that is the real standout. that is where investors and traders have been putting most of their attention for buying on that dip a couple of weeks ago. it is in the technology trade. sector wise, there is no down sector over the course of the past week. all 11 are in positive territory. as you might suspect, it is technology and then consumer discretionary are the best performing sectors there and financials as well. three of the best performing

sectors more cyclical in nature. tech, financials and discretionary. it is something to watch. with regard to the stocks that have been bouncing the biggest, three in particular, have beend. technology, yes. super micron and what you want to put on the shopping list, the biggest have come with the chip stocks. another trend to watch. whether it stays that way or falls short. the american consumer is shrugging off recession. retail sales are rising 1.1% month on month since july. that is due largely to a rebound in car sales. walmart reporting same-store sales rose 4% in the second quarter. that topped forecasts. it is raising guidance for the year. walmart saying it hasn't seen

any fraying of the consumer health picture and people are gravitating toward deals leading to gains of customers across the spectrum, especially among higher-income shoppers. not typically a group associated with walmart. but our jim cramer says walmart's results are not indicative of a more favorable consumer landscape. >> don't make the mistake of assuming walmart's results give you a genaeric lead on the consumer. i hope the rest of retail can come close. when it comes to brick and mortar with the exception of costco, walmart is in a league of its own. >> let's get more insight on that retail trade and the health of the consumer. joining me is the ceo of jay

rogers kniffin worldwide. jan, we start with you with the macro picture. is the u.s. consumer in a good place? >> good place. they're in an okay place. the consumer has definitely started to struggle some reftive to where they were. i don't think that is surprise ing. they were in a good place. right now, it is 4.5 and we're heading toward 5% at 1.9%. if that is the case , the consumer has to follow that. walmart gain market share. they gain to the customers on the upper end. they won the game. they gained share and they looked great. the consumer inside of walmart

is still choiceful. they are trading down a little bit into private label. they are doing all the things they always do before they slow spending more. the fed needs to move now because they won the game against inflation. the consumer is saying i'm hurting here. you know, it's time. we need to move. they just haven't moved the bar yet. if they go in september, maybe they really hit a soft landing otherwise we get a consumer-led recession. >> jan, it makes sense. brian, we have two major retailers. i'm not going to say it is the opposite end of the spectrum. walmart and home depot. walmart, no fraying. things are okay. things are okay for the consumer. home depot expects a slowdown in spending for the second half of the year. how do you reconcile two

barometers of the u.s. consumer going in driifferent directions? >> the third was last month which was amazon as well which had sort of the goldi dlrlocks scenario. walmart is like america's income statement and home depot is the balance sheet. if you look at the income statement, to jan's point with the cpi being relatively level, it puts that shopper that is just trying to make ends meet month over month, that shopper is back to a place they are doing reasonably well. at the saum me time, you want te cautious like jim cramer said because of the walmart quality of operation. also, there is real pressure on the consumer if you look at the cpi in one specific area which is shelter costs. those are largely renters who are largely in more urban areas where rents are under pressure. walmart because of the geography

is insulated from that. the higher-end shoppers are not urban shoppers. you want to watch target which has a younger and more urban guest and whose guest is under more cost pressure. certainly, yes, to echo jan's sentiment. the home depot shopper is really feeling the pinch of interest rates. they talked about this a lot. with the over $1,000 discretionary project pressure. the balance sheet is under pressure, but the income statement appears to be okay. >> jan, this is very much a story this earnings season about execution. the micro economic story about how companies are navigating. some are doing it better on a relative basis over others. i wonder in your opinion which retailers are doing it enough to see who is piling in the course of the rest of the year because we have back-to-school and holiday shopping season coming

up. >> okay, let's assume the fed will start moving in september and giving us 25, 25, 25, 25 until they get down to 150 basis points. you have to will have walmart. they're going to win. costco, jim mentioned, they will win. home depot will win. dick's sporting goods, who has put a lot of technology in, is going to win. big thrill there, right? we're also really happy with what might happen with discretionary retailers as long as we don't get the cracks in the consumer getting worse and the fed starts to move. then you like ralph lauren and lulu and tapestry and levi's and boot barn and tractor supply because these guys all have niches and they are all winning their game. as long as the discretionary consumer stays with us and able to spend, those companies are going to win. my concern is we start seeing

worse cracks in the consumer. right now, yeah, we're seeing problems with debt. we're seeing 55 plus bankruptcies in retailing, the most we have seen in 13 years. the little guys cannot compete because the big guys are spending so much on technology. the ones i named can win. if interest rates go down, some of the deals will get done. a macy's deal could get done and a kohl's deal could get done. you might want to think about that if you are a retailer. >> bryan, the last word here. are there other retailers that you think stand out to you as being a good possibility for investors? >> i think target is going to be interesting given that they're kind of in the middle of these things. with target, you might find some of the basic needs shoppers are under more pressure from the cost point of view. remember, july has turned into a shopping holiday in the u.s.,

prime day, which is why the retail sales numbers were strong. amazon reported in june and walmart and target do opposed to best buy. they have strong general merchandise and discretionary spend. the other two are indicative of where america is as well. they are small, but doing well in different ends of the market. sprouts and grocery outlet. they had extraordinarily good quarters. i think they continue to show if you have a well defined positioning against a specific part of americans and you meet their needs better than anybody else, you can win and almost irrespective of what that seeing m segment is. i'm less on the retail sector at large. i would take a risk of which one of the companies will win. i don't think they all will. that is one where i think to

execution is key. >> jan and bryan, thank you very much for the conversation. have a nice weekend. coming up on the show, viva las vegas. the bullish call on one pupolar sin city attraction. that story's coming up next.

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overweight. the venue established itself as a main stay in the market and attractive risk-reward scenario. sphere up 2.5% pre-market. evercore adding tactical under perform for palo alto networks. potentially offering a better buy opportunity post earnings. palo alto up .50%. a couple upgrade on fox by wells fargo. the sports streaming presents more opportunity than risk for fox and the company is facing a better outlook as well. fox shares up 2.5% pre-market. time for the global briefing. softbank and conglomerates are making sizeable investments in a.i. startups. sk networks and others recently signed on to the $130 million

alpha intelligence fund. it was set up by the founders of the capital firm edge up. and the secondary sale save values the fintech company at $45 billion. revolut announced backing from the uk backing license after the three-year wait. shares of bayer are jumping in frankfurt after the company won the appeal in the u.s. law lawsuit. the monsanto unit absolute warned about cancer risk. bayer stands against the products and bay yer company, shares up big in european action. coming up on the show, the one word every investor needs to know today making a bullish bet on bitcoin. the company looking to get a

renewed look at the cryptocurrency. we'll be right back after this.

♪♪

[inner monologue] we're sitting ducks. waiting for them to infiltrate our defenses. millions of tries... and... they're in. uh-oh... this one's in the code. ♪♪ welcome back. cryptocurrency is getting a price boost as bitcoin looks to get back to $60,000. the price right now is $58,500. roughly up 2.5%. ethereum is up $2,622. mackenzie sigalos is joining us with the wall street firm

getting into the bitcoin trade. mac, who is it? >> goldman sachs. >> okay. >> this week, we got a fresh take of the institution al adoption. goldman sachs added $14 million across several etfs. more than half of that in blackrock fund. it was just in april their wealth management unit cio told the wall street journal there wasn't much appetite from clients. others have jumped in. hsbc. >> morgan stanley. >> morgan stanley, it is interesting. they pared holdings. >> they pitch them more to the clients. >> yeah. as of the last week, 15,000 fa ez afa's are allowed to pitch to clients. >> that is who is leaning in. who is the yang to the ying?

>> talking about morgan stanley. $270 million position in q1. they pared that out and switched grayscale to blackrock. you see millennial management which is the biggest blackrock fund. they are down to $1.1 billion from $2 pa2 bi$2 billion. you have elliott paring back. jpmorgan had a tepid share to start with. >> we know the bigger established, i shouldn't say bigger players, not established. nobody is established other than grayscale. grayscale versus blackrock has been different over the course of the last six-to-nine months. what is happening here?

>> grayscale had a huge head start. they had blackrock eclipse them in may. grayscale fought the s.e.c. in court. we knew the two spot etfs of $19 million. we have now who is turning over the books. you mentioned goldman sachs. >> are they moving from g grayscale to vanguard and blackrock? >> looking at these filings comparing q1 and q2 and getting out. >> that is interesting and fascinating to watch. mackenzie sigalos, thank you for that. coming up on the show, markets are set to close out the best week of the year so far whether our next guest thinks this rally has what it takes to continue? that question will be answered when we come back after this.

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welcome back to "worldwide exchange." time for the "wex wrap-up." texas instruments is receiving funding to build three facilities in texas and utah. shares of applied materials

beats guidance and forecasting revenue above expectations as it anticipating a surge in a.i. demand for the products. a bipartisan group of lawmakers are looking for answers from mark zuckerberg over drug ads on his platforms. in a new filing, tiktok telling the federal appeals court that the justice department misstated the company ties to china in the latest bid to prevent the ban to take effect. and stellantis is sued by a group of u.s. shareholders accusing the automaker of defrauding them before posts disappointing earnings. stellantis telling reuters the lawsuit is without merit. the markets are in rally mode with the nasdaq and s&p on a six-day winning streak. the dow is on pace for the best performance so far this year. joining me now is simeon hyman.

can we say the markets are back to being on an upward track because of the one day on monday? >> i'll take a goldilocks with the strong retail report. capacity utilization disappointed. old school. 77.8. anything under 80, traditionally means no inflation. there you go. that's the soft landing. we had it. >> it's the soft landing. there is a concern of inflation. we have seen the data. it's coming down. the job data is leading to the initial stage of recession coming. we talked about recessions that haven't come for a while now and many ceos have. is this part of the goldilocks scenario? >> i think the best thing the investors have right now is bonds aren't broken anymore. in the equity downturn, the aeg

was up almost 5%. we don't have 50 basis points on the ten-year now. we have 4%. we don't know exactly what's going to happen. we know this time around, the first time in a generation, bonds go down. >> it's normal? >> we haven't had it for so long. >> since the great financial crisis. i wonder if we go through the word of the day. i'm curious what your's is with the macro outlook we just had? >> my word is equity-income. >> that's two words. >> it's a hyphen. >> take us through why. >> you have to keep the equity in equity-income. the challenge with strategies that have gotten income out of equity is they decimated your upside. the call strategies give you half of the return of the equity markets. bonds aren't broken anymore. you want your stocks to behave like stocks. you have to be fully invested.

we have a daily covered call strategy on the qs. qqq. daily covered calls. we talked about the daily options. they have amazing yutility. one is instead of writing the calls once a month, you write them once a day. >> we are showing that right now. the nasdaq 100 high income. if you are selling calls against a long position, you are garnering that income. with volatility -- with the exception of the last week and a half or so, volatility has been in a low-vol regime for a long time now. just how much income can you generate with the vix at 13 or 14? it's not there now. i get it. >> when you write every day, qqq adjusts the strike. you can get plenty of income out of it and fully participate in the nasdaq performance. that's what you want. you have bonds there if

something goes wrong. >> do you pefeel the nasdaq is e place to be or is the broadening out trade something? >> you have to anticipate. you should have defensive stocks. you can't only have defensive stocks. of course, they're cheap. we reminded ourselves how fast things can change on the dime. make sure you have duration. let your stocks be stocks. have defensives, but participate with growth and technology. >> before we let you go, this is a scenario if the prospect for rates coming down comes to fruition, it does make certain parts of the stock market more a track trackt tattractive from the ince persp perspective. >> that opportunity makes stocks that look like bonds. if they don't grow, they look like bonds and bonds aren't

broken. we have our ticker in the s&p and you get the defensiveness. because the dividends are growing, they are not as reliant on any fed cuts. if they come, great. if not, you're fine. >> simeon, thank you. that does it for us now. "squawk box" picks up the market coverage right now. have a nice weekend. good morning. key housing data is due out this morning. one day ahead of the landmark change in the way real estate agents are paid. details straight ahead. plus, housing is in focus for vice president kamala harris. she is set to outline proposals in a speech today. a potential spoiler in the paramount deal. edgar brotfman is approaching the latest period.

"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 melissa lee and steve liesman. joe and becky are off today on this friday morning. let's show you where u.s. equity futures stand. it has been a roller coaster ride. dow up 97 points. treasury yields right about now sitting at -- we'll flip the board around. 10-year at 3.89. steve. >> hang on. we're still negative. news out in the last hour on

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