♪ it's 5:00 a.m. at cnbc global headquarters. and welcome to "worldwide exchange." here are your five at 5:00. it just was not good enough. nvidia under pressure this morning, after failing to plant wall street's seeming insatiable thirst for growth. the blackwell chip and slowing a.i. demand possibly keeping a floor under the stock this morning. >> hopper command is strong and the anticipation for blackwell is incredible. >> chip and tech stocks around

the world falling with nvidia as investors take profits in the magnificent seven. >> other stocks on the move include salesforce, crowdstrike, affirm and more. we break down the action and key numbers. and openai reportedly secured a massive new round of funding and fresh triple-digit valuation to go along with it. this is thursday, august 29th, 2024. and you're watching "worldwide exchange" on cnbc. ♪ good morning. thank you for being with us this morning, i'm contessa brewer in for frank holland. let's kick off the hour with a check on u.s. stock futures. the dow coming off its first down day in four. financials and health care sectors hitting all-time highs. influence see the dow, implied opening up almost 200 points, s&p in the green as well, nasdaq futures slightly off by 48

points. stocks holding up surprisingly well, considering the stock of the morning nvidia is down by more than 4%. 4.5% in the early morning trade. we'll have more on that in just a moment. and treasury, the yield is holding steady but at 6%. let's switch the boards and so you what the ten-year is doing, 3.86%. on the two-year, 8.22%. boil is 20 cents below $75 a barrel. wti is off by half a percent this morning. and brent off half a percent with rbob down. let's get to the top story, that is, of course, nvidia, sales and earnings more than doubling in the most recent quarter. a fresh $50 billion buyback and what the ceo jensen huang calls

incredible demand for technology soon to be released. and our arjun kharpal joins us now. arjun, why is a beat on almost every metric? >> good morning to you, contessa. i think the lesson you is that great, even great was not good enough. that was the lesson from earlier from the investors had extremely high expectations. as you mentioned it was a very good earnings. revenue group, 1 earnings per share came in at 68 cents both beating market expectations. the data center business this is one very closely matched. revenue groups, a whooping 154%. revenue got in, $2.5 billion. also beating wall street's estimates. 00 incorporate you have to look

for one concern potentially a slight dip in gross margin. one of the other big concerns going into the report was around blackwell, as you mentioned, nvidia's next generation chips. ceo jensen huang wanted to dismiss the concerns saying it happened in the fourth quarter and the current generation of chip hopper. >> worldwide and full steam to modernize the entire computing stack with accelerated a.i. hopper remains strong and the anticipation for blackwell is incredible. >> contessa, you asked me why the different shares? well, i think it's become harder for nvidia to surprise investors while year-on-year has been tougher. the prior four quarters have seen triple-digit percentage

growth. that might bode somewhere with the drop. fundamentally, it is clear it remains strong and nvidia continues to benefit from the big tech investments in a.i. that we've heard about in the past quarter, conses that. >> perhaps it's as simple as profit taking at this minute. it's as though the fairy godmother came out and said i've given you everything, i've given you the dress, i've given you the ball, but you go, yeah, what about my slipper? even with the market, that still beat expectations for what the gross margins might look like. on the call, they were asked, are your customers getting a return on your investment? what was the color there? >> well, jensen huang was saying, they are, they are eing a lot of return on their investment. remember, the big customers for nvidia are the likes of microsoft, google and amazon. as we sort of read through the big tech earnings that we've

heard about in the this quarter, you're still seeing very strong growth for the cloud divisions in the company which is how a lot of these companies are selling a.i. implications to microsoft, amazon aws, google through google cloud. to some extent that is what jensen huang is alluding to. but i think there are big question marks going forward. nvidia right now is one of the biggest beneficiaries of the a.i. boon. it's often referred to as the picks and shovel. and i think it's what's next, what are the companies going to benefit from artificial intelligence going forward. as we look at the billions of dollars being spent by big tech i think there are question marx on what that return of investment is. jen sn huang trying to downplay it. seeing the benefits of a.i. >> arjun, thank you for kicking us off. the associate product marge which runs the well-known smh

semi conductor etf. what's your reaction what we've heard from nvidia and how the shares are performing in reaction? >> yeah. again, i think, they beat expectations, but they continue to do this at a slowing pace, right? so a possible explanation could be that the market investors are feeling normalization of growth and maybe slower demand as you mentioned for one of these companies getting out of it and will that hinder demand. i think we're seeing premarket, end of the day, we believe in the business model, and we don't see any long-term issues with it. >> talk to me a little bit about what you heard from nvidia, and what it indicates for some of its remote competitors. you know, like, did you hear opportunities for amd to come in and start to gain more business, based on what you heard from nvidia? >> yeah, you know, absolutely.

i think, again, we believe in the business model to expect nvidia to own 100% share of the market is probably unlikely, you definitely leave doors open for amd and other businesses that can come and capture this market share for sure. >> how concerned are you, or how optimistic are you about the demand for this kind of new technology? we heard jensen huang talking about the hopper infrastructure. and the way that if you're putting investment dollars to work, why would you invest into the old computing systems, rather than what's going to power nextgen text knowledge? >> you know, i think we're so early stages of this a.i. revolution, and really, you know from a technological standpoint, how important semiconductors are moving forward. so, i think that ultimately, there is a long runway for this

technology. and i think, obviously, nvidia has been the early dominator in this space. but, again, i think that leaves the door open for a lot of fablus companies to come in and the market they haven't been able to touch. they've clearly won the enterprise business but as we evolve to the next phase of this, i think there's opportunity for these next businesses to come in and be successful. >> as we said, nvidia shares are down more than 4.5% in the premarket, nick, thank you for joining us, appreciate the time. a lot more to come here on "worldwide exchange" including the one word investors should know today. first, a lot more ahead on nvidia. what its latest report means for investors and broader markets. and the one spot from turning the dow lower and a rare bright for tech. and later, a.i. reportedly

securing a new massive round of funding and a triple valuation go ontoalg with it. we have a busy hour ahead when "worldwide exchange" returns.

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 buy one unlimited line. plus, get up to $800 off google pixel 9 phones. switch today! 12 minutes past the hour. let's get a check on some of the mother's top stories including another fed chief saying, look, it's time to move on rates. silvana henao joins us, great to see you. >> contessa, great to see you.

that's right, atlanta's fed chief bostic says it's time to cut rates. bostic a voting member of the fmoc cautioned he wants to be sure before making a move, adding he'll want to see next week's monthly job reports and the two inflation reports before the fed's next policy meeting. openai is in talks to raise funding that could value the startup at more than $100 billion. sources telling cnbc thrive capital is leading this round and will invest $1 billion in the chatgpt parent. "the wall street journal" which was first to report on the development said microsoft, which is openai's biggest backer is also participating in the round. microsoft declined to comment to cnbc. and sticking with a.i., california's legislature approving a bill creating sweeping new restrictions on the red hot tech. the legislation which now heads

to governor gavin newsom's desk is seen as potentially setting the standard for any potential federal regulations around a.i. elon musk is backing the proposal, while a number of tech companies and venture capital firms are opposed to it, contessa. >> we'll be keeping a close eye on that. >> we will. >> thank you, silvana. back to the broader markets, let's see how europe is shaping up as trading gets under way. dan murphy is in the newsroom. dan, good to see you? >> first of all, we have european equities pushing higher through the course the session today, initially put ago side some of the concerns concerning the pullback we saw with nvidia stock. when you take a look at the board, italy's ftse move, up 0.8%. stocks rising by 0.3. and in france, around 0.7, and

german dax, climbing by 6%. we're seeing green on screen across the region. let me break it down by sector for you there's a few idiosyncratic stories to unpack. first of all to the downside, oil and gas. down by 0.12%. again, only modest declines that we're seeing here which is part of the reason why markets are moving higher broadly. the outperformer is technology because we are seeing money move back into the big chip names, up 0.14%. and up along auto pushing markets along. in terms what we have seen with chipmakers money moving back into the markets, amso, 2%. asmi, up 2%. and st micro up. and focusing on the fundamentals rather than the single-day stock move. contessa, that's where we stand.

back over to you. >> all right. dan, thank you for the update from europe. let's keep the conversation around nvidia and its impacts. let's bring in horizon's chief investor scott wagner. scott, great to see you this morning. tell me if you think the impacts that nvidia has on the broader markets makes good sense? >> yeah, good morning, contessa. if it does in some respects if we're just talking about the stock it wouldn't make much sense all. but that's not the story here, it's not what it's doing any particular day, the story with nvidia is really about how much of the economy adopting a.i. how much of the economy saying on these things with the earnings report it's actually very good on that run. what we saw the broadening out of types of companies, and if you're going with enhancement boon that we think we'll get out of this regulation, then you need a broad swath of economy

investing in a.i., implementing it and figuring out how to use it to generate those boons. >> it's interesting because you're pointing out that revenue per worker is the metric to look at. when we're looking at adoption of a.i. revenue per worker is what has the potential to move the economy forward. explain that thesis. >> yeah, productivity itself is really tough to measure, to start with, let's just start there. and admit that product sift is hard to measure. one that you can measure is revenue per worker that's what the definition of it is. and the last time we saw a big uptick in productivity in worker was really back in the '90s and that oddly coincided with the internet and revolutions. and for 20 years, we've certainly seen an uptick in that measure. when you start seeing an uptick in that type of measure then look out above in terms of

market. that kind of productivity that we've not seen for 20 years would be really, really welcome. >> and it looks like the losses per share are retreating just a bit for nvidia, now down 3.5% in the premarket. what do you like for equities moving forward, what sectors do you like and what are you staying away from? >> we still like tech. it's just not a story you can get away. you might have short-term wobbles but a tailwind for a.i., just like a tailwind for pc 25 years ago, you have to be on front of that story. so that's one. if you get outside of tech, you know, we do like the sector like energy still. and we think it's got go yo political hedge characteristics that are going to win. and we like home builders. we're obviously on the verge of a rate cut cycle. home builders are the first mover when you get lower rates we think that's actually the place to be. in terms of what to avoid,

china, chidena is not on the balance sheet. think like deep cyclical types of plays things that need a really strong growth surge in order to win. anything to do with that, we tend to avoid. those are the things we favor. >> scott, great to see you this morning. appreciate your time. i just want to mention that national security adviser jake sullivan is in china right now and has met with xi jinping. we'll have more on that later this hour. for more on what's driving the markets and the trading day ahead you can head to cnbcpro.com/pro and get exclusively insights and analysis. ahead on "worldwide exchange," the one stock helping to prop up the dow and the rare bright spot for tech. and crowdstrike laying out the growth of the outage. we'll be right back.

because this game is for everyone.

your memory is an amazing thing, but sometimes it can start to slow down. but did you know prevagen can help keep your memory sharp?

the secret is the powerful ingredient, apoaequorin, originally discovered in jellyfish and found only in prevagen. in a clinical study, prevagen was shown to improve memory in subgroups of individuals who were cognitively normal or mildly impaired. stay sharp and improve your memory with prevagen. prevagen. in stores everywhere without a prescription. 22 minutes past the hour. time for your big money movers. three stock stories of the morning. shares of salesforce are higher in the premarket by 4.8%. they had a second quarter earnings beat with analysts' companies with the company raising its full-year outprt. salesforce said its cfo amy weaver will step down.

ceo mark c benioff told mad mon. >> we're just in a new environment. i think the technology is like nothing i've ever seen before. and every company understands because they're using these new a.i. models at home or personally. but now we can really show how they're going to get value for their companies. in the quarter, jim, we delivered with super a.i., 25 trillion, that's trillion with a "t" einstein transactions which is this a.i. capability that's managing the agents and managing the predictive and managing the slack and all of these capabilities to all of our customers. >> shares of crowdstrike are moving lower despite second quarter earnings topping estimates by seven cents including a two cents hit by last month's global outage. when it comes to guidance, the company is cutting its full-year revenue and earnings forecast

after disclosing subscription revenues would be hit by a total of $60 million for the duration of the year. because of incentives, the company will offer its customers following that july i.t. outage. that is the big thing that investors are looking for with crowdstrike. let's look at shares s affi a 23.2%. analysts were expects a loss of 50 cents per share. affirm ceo expects generating profit by the fourth quarter of fiscal 2025. coming up, a historic face-to-face as national security adviser jake sullivan is meeting with chinese president xi jinping, laying the groundwork for another high-profile one-on-one. tas ahead.

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.

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 buy one unlimited line. plus, get up to $800 off google pixel 9 phones. switch today! ♪ it's about 5:30 in the morning in new york. we have a lot ahead on "worldwide exchange." on deck this morning, a great report, but greater expectations. shares of nvidia getting hit after its impressive results still falls short of wall street's lofty bar. that drop driving down chipmakers around the world as well as nasdaq futures. here, the dow looks pretty solid this morning. what that could mean for the markets. and former president trump's and

republicans' big plans to gut funding could back fire political power. this is thursday, august 29th. and you're watching "worldwide exchange" on cnbc. ♪ welcome back to "worldwide exchange." i'm contessa brewer in for frank holland this morning. let's get a quick check on the hour. nvidia is really weighing on the nasdaq. we've seen those shares up by about 3.5%. you're seeing the nasdaq now turning green. it looks like we're going to have an implied opening up 33 points. dow jones future 102 points, s&p 500 up 10. as i mentioned shares of nvidia falling on the back of its big earnings report. it beat expectations on almost every metric but as you can see,

now the shares down by 2.5%. they were down by as much as 4.5% just an hour or so ago. we'll have more on nvidia in jomentd. two stocks we're keeping an eye on, beck shire hathaway a shares hitting a trillion market cap. three quarters of a percentage point over the last week up 3.3%. it's the first nontech stock to hit that mark. and supermicro which is down in the premarket, we saw a 13% drop yesterday, after the company said it would delay its annual report for the fiscal year. it's pushing back on claims from short-seller hindenburg research that this is -- this is the quote from hindenburg, accounting manipulation. they had pointed to some red flags over the accounting. it's unclear if the delay in supermicro's annual report is related to hindenburg's findings and a new stake. but those shares are up an

additional 3% in the market trade. taking a look at the job market, the ten-year holding steady, the yield 3.82%. the two-year, 3.86%. checking on oil as pressure continues on crude you have wti and brent looking at the second straight negative month. this morning, wti is off by half a percentage point. brent off by the same, and rbob the same. to the top story of the morning, maybe the top story of the week or month, shares of nvidia falling. the forecast, it gave optimistic guidance. revenue more than doubled to $30 billion but, remember, it had tripled in previous quarters. revenue from data centers where the bulk of nvidia's a.i. sales come from, rose by 150%. gross margins, they beat expectations but were down quarter on quarter. for the current quarter, the company says sales will rise

about 80% to 32.5 billion. that was below what we're hearing the street's whisper number was. nvidia says it is shipping samples of its new blackwell chips to partners and customers. and jensen huang reports that a ramp-up in production is being delayed in the fourth quarter but he's downplaying the impact saying there is still insatiable demands. >> the data center worldwide and full steam to modernize the entire computing stack with accelerated computing in terms a.i. hopper remains strong and anticipation for blackwell is incredible. >> let's get reaction from the ceo of round hill investments, runs mag 7 ticker symbol mags. dave, let me start with you, first of all, the expectations versus the report, to me, it looks like analysts pretty much

nailed it. maybe they should get a gold star this morning? >> you're absolutely right when you look at a company when they beat and raise, they grow revenue at 150%. the most aggressive growing at 155%. normally that would be time for investors to cheer but because we've become so 0 cuaccustomed nvidia, with incredible beats and also raises, the stock being priced to perfection, you know, investors are selling off this morning. actually, it's come back in, to your pointers from some of the earlier loads. this is an example that expectations because the market was so heavily influenced by nvidia being the king of a.i., really, any negative news was a sign for investors to pull back. >> or just to take the money and run for a bit. sarah, how is nvidia's report

influencing how your strategy will develop over the day? >> i think the reality is i've been seeing this for a while. this is a good company it's not as good for competitors as it used to be. we see that in the forward price guidance. the reality is, intel, google, all of these tech names that also design great chips, they're also talking about new things they're going to release this year and it doesn't help that blackwell is still not here, right? it seems like it's going to be great but they need to get semiconductors or other fabs to manufacture it. >> they said they were shipping the volume in the fourth quarter, is that not enough for you, sarah? >> you know, in the fourth quarter and into 2026, i think we're seeing the wiggle words there. and kicking it off. what we're not seeing is them coming out and saying it's here, it's shipping. we know the demand is there in

part because if you want to sesee nvidia in good graces, you have to see it. i think there's potentially a little contention between them and their manufacturers of hey, maybe pay us a little more, we'll work a little faster and you can get your chips out sooner. so i think the chips, the new launches, are going to be an area to watch. >> dave, we got a lot of color commentary not only on the chips and blackwell but hopper as well. but the qway that companies are making an investment on hopper. >> yeah, we know particularly nvidia's largest customers, some of its numbers, alphabet, amazon, microsoft, meta, they're plowing all of their cap assets, a great portion of that, ands

kr increasing that capex. they have such a read relative to chips. and they need them to build the large models. we know companies, look at walmart most recently. that's a household name, not a name you associate with a.i., they're using it to make the buying experience easier nofor consumers and for employees to navigate the hr system. and then we saw examples how services like service now, fmp and dox are using a.i. now. what we're seeing we're an an inflexion point for a.i. and companies need to build in money to build this. for the time being, nvidia is a big beneficiary because of hopper and then with blackwell coming. >> sarah, we heard on the call

in from the cfo that china is a concern. that the data grew in the second quarter but revenue was down 17%. tell me what that indicates to you about the broader picture in china, what it means for the tech sector. >> it's going to continue to be tough to sell into china. i think until we're into a new administration, we're not going to be sure exactly where the fault lines lie. they're certainly not inoculated against it but it's not just something that impacts them. we've seen that with apple. there are massive tech names not in china at all and they do just fine. so i do think that's going to continue to be a line for them to walk. one certain that is massively i think starting to abate is the concern around taiwan and taiwan's semiconductor. so the ability to get the chips made in taiwan, that's lessened.

but the question is how much can an american silicone-based company sell of their cutting edge chips to china, and i don't think we'll have an answer for that for at least six months to a year. >> sarah, great to see you, dave, appreciate your insight and perspective. have a great day. coming up, we n'dot see any appetite this for cava. why one company is saying it's stepping aside. we're back in a moment.

(vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic.

welcome back. the time now for your morning call sheet. morgan stanley downgrading its rating on cava moving it to equal weight. it points out that the stock had a more than 141% run. you can see the stock is down almost 3% in the morning trade. for its decision to step aside, it's still positive it says on the brand itself and its narrative. jeffries topgolf's brands to hold. anticipated revenue and synergy and brand have not up redburn atlantic initiating take-two interactive with a buy rating. redburn says take-two's launch of it's highly anticipated grand theft auto call next year.

shares barely on the move but in the green up by 0.15%. let's turn to the briefing, national security adviser jake sullivan meeting with chinese president xi jinping and other top leaders in that country this morning. the white house has also announced that president biden and xi are set to speak in the coming weeks. eunice yoon joins us on the cnbc line with beijing. talk to me a little bit about what's important for sullivan and xi to discuss. >> well, contessa, on his trip, sullivan discussed a wide range of sticky issues between the u.s. and china. he's going to be briefing reporters momentarily after wrapping three days of talks with chinese officials including as you said president xi jinping. now, his visit is the first for a national security adviser since 2016. it's part of an attempt by both sides to bring stability to a relationship which up to two

years ago was seriously deteriorating. sullivan hemmed held extensive with the foreign minister. and what is described as a rare event he met with the vice chair of the central military commission today. this is also a person since 2018, sullivan had pushed for greater working level, military-to-military communications and for theater-level commanders to speak by phone. and president biden has been maintaining dialogue on this level to avoid crisis of key points of china policy. contessa. >> eunice yoon, i know that you're following this. how much does the november election influence the tenor of these talks and what happens and who wins? >> well, very difficult to say. neither side has actually communicated what they did discuss what might happen in november. but there was a u.s. official

who did say that there was an expectation that the chinese would be asking sullivan on this trip. so far, china does seem receptive to the idea, the possible meeting between president xi and biden in the coming weeks. but i think whether or not the discussions remain on biden, or if they had progressed to whoever might be in power after president biden, there is a little sign, really, of any fundamental change in the relationship, some sensitive topics that came up on the agenda, sanctions related to russia that u.s. expert controlled the discussion over fentanyl as well as taiwan. and the chinese side is still very heavily criticizing that. >> eunice, thank you for the update. ahead, the one word every investor needs to know today. and plus why president trump's

plan for funding cuts could back firefor republicans and their congressional control. we'll be right back.

turning to the 2024 race and former president trump's plans for dramatic cuts to government funding if he retakes the white house in november. that potential move could have big ripple effects in one district. and ultimately republicans' control in congress. emily wilkins joins us from

stafford, virginia, with more on this story. good morning, emily. >> reporter: good morning, contessa, we're here in stafford, virginia, right about now, this parking lot is filling up with hundreds of government workers who live here who will carpool up to d.c. that could change if trump is elected. he has a plan to cut or move a lot of the federal workforce that could cost virginia $28 billion. and one republican is pushing against it. stafford is part of the seventh congressional district which is a key race to help control the house. 50% of the district is federal employees and that doesn't count government contractors. going door to door, democratic house candidate eugene vinman says he hears from a lot of government employees who are worried about trump's plan and what it could mean for them. >> you have the economic costs. you eliminate tens of thousands of good paying jobs in an area

like this, you're going to december state the economy her. >> reporter: trump's agenda for the plan proposes moving 100,000 federal employees out of the area. but the impact will be larger than that. according to terry fuller, a professor at george mason university. >> that would be like losing 160,000 workers, if you did, if all of them completely left virginia. in terms of output, that would probably be about 5% of gross state product. so, if we think about that, that's a pretty -- that's a -- by modern terms, a fairly severe recession. >> reporter: dangeric anderson, the republican running for the seat was endorsed by trump but has broken with his plan to move a large portion of the federal workforce elsewhere. in a statement to cnbc he said i'm not go oppose any legislation that could weaken national security or hurt virginia's jobs regardless of where it comes from.

of course, whoever controls the house next year is going to have a big stay in the suggest or whether the federal workforce expands or shrinks. >> is there any indication this will be the issue that moves the vote for the district for voters? >> reporter: i think it's one of the issues that folks are kind of considering, just going door to door, speaking with some of the candidates and folks down here. you're talking very directly about people's lives and livelihood. of course like this district, you're seeing other issues like inflation and abortion come in and have a play. but i think particularly in this area, it's very interesting to see what the impacts would be to implement a plan that would like, like i said, 100,000 workers potentially elsewhere. plus, trump also has plans to call for firing of rogue democrats, vague language there and what that could mean for people's employment. so i think in this area, where you have so many folks, an

entire parking lot of people before 6:00 in the morning heading to d.c., it's really a big issue here. >> emily, great to see you. coming up, the mixed picture for traders as investors digest the nvid ruliaests and when the new a.i. trade could face new hurdles. we'll be right back.

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 buy one unlimited line. plus, get up to $800 off google pixel 9 phones. switch today!

welcome back to "worldwide exchange." eight minutes till the top of the hour. better get to your wex wrap-up, shares of salesforce higher in the premarket after top earnings company raising its outlook, salesforce also says its cfo amy weaver will step down. shares of crowdstrike moving lower despite earnings down by 2%. earnings estimates here, the company is cutting its full year revenue and earnings forecast after disclosing its subscription revenue would be hit because they're offering incentives over july's i.t. outage. and openai is in talks to raise funding that could value it at more than $100 billion. thrive capital is leading this round and will invest a billion dollars with "the wall street journal" saying openai's biggest backer microsoft.

and yelp is accusing google, declaring google abused its power on its online search as part of its business strategy. french prosecutors decided ceo pavel durov on the indictment. a rare move to hold a tech executive personally liable for what users do on the platform. and "the new york times" reports that elon musk is further shifting into politics. hiring a longtime republican political adviser. the "times" says the adviser will help musk with his political initiatives including this pro-trump pac. we get initial jobless claims figures and latest of second quarter gdp ahead of the open and home sales data. on the earnings front, results from dell, gap, best buy and

lulu. and raphael bostic speaks this afternoon. we're looking at the dow opening higher by almost 200%. s&p 500 by 16. and nvidia off its session lows, and shares down by 4.5%. that's pretty dramatic improvement. for more on the trading day ahead, let's bring in keith turner, can i get you to kick off with nvidia. what you're expecting from the company based on what we heard on the calm l last night? >> great to be with you. it's interesting i went to bed it's down 7%, this morning down by a half. i think in general, the big picture in a.i., we still think it's relatively early in the cycle. and the earnings numbers are

relatively strong. you've seen the commentators on salesforce talking about this. you can't forget the stock was up 150% year to date. and just up 40% from the august 5th low. i think that's encouraging that investors starting to stop in here and vacstep in here. and seeing tech up a positive sign. >> i know you're taking a look at some of this v-shaped market snapback. what does that indicate to you about what's to come this fall? >> yeah. when you have a corrective period like we earlier in august and you start to move up, one thing you want to see is broad participation. and over a ten-day period, recently, we saw the advanced decline on the s&p over 2 to 1. historically, when we see that, six to 12 months later, markets tend to be up. so, i think it's a good sign, it's what you want to see, and it also reflects that broadening

theme that we're seeing on the overall market. >> we've had a lot of insight recently talking about the potential for small caps to do better, to really to show some momentum now, given more participation, a broader rally and the like. what's your expectation for small caps versus large caps? >> so, longer term, we still like large caps. partly because tech is a bigger part of our caps, and we still think the large cap tech story has led. on the shorter term basis, i do think they're mortgage-rate sensitive. talking about small caps. we're probably seeing at least performance in line or maybe a little better. but we're not at a point where we're upgrading small caps. because they are cheap and sensitive but the earning trends are much weaker relative to large caps. and typically need to see san accelerated economy to outperform. the environment we have now, we have a cooling economy. again, maybe a little bit more

lip service from around the fed. and when we look at the data following the rate cut, small caps have actually underperformed relative to large caps in general. >> i mentioned the data we're looking at, jobless claims, real petito, tomorrow, pce. and of course, a jobs report of great import next week. which, to you, could influence the strategy moving forward, and what you recommend to your clients? >> yeah. well, we try not to be data-dependent. so it's the aggregate of data. the way the evidence. the most important data point, after this french from nvidia will be the jobs report. that will tells you whether you go 25 bases points or 75 bases points with the fed in september. i don't think individually anything changes out strategy. if you had a much weaker report say, sub-1200, i think that would be negative for risk assets and more positive for

bonds but overall, not any one of these are going to necessarily change our strategy. >> well, thank you for laying out your word of the day, expectations, keith learner, thank you, appreciate that. quick check of futures what we're seeing is green across the board and real bounceback from nvidia. "squawk box" starts right now. have a great day. good morning, the nvidia market, results are stronger and that stock is lower we'll break down results and reaction on wall street. one stock giving the dow future this morning, a huge jolt. that is salesforce, the company reporting strong results. and openai may be about to see its valuation soar to more than $100 billion. it is thursday, august 29th, 2024, and "squawk box" begins right now. ♪

good morning, everybody. welcome to "squawk box" right here on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with mike santoli and robert frank. joe and andrew are off today. we've got some huge news out there. those big earnings reports from last night. definitely having an impact on this morning's market action. as we mentioned salesforce helping the dow this morning. u.s. equity future showing the dow up by about 200 points in the premarket. and nasdaq up by 78. guys this is not what we anticipated. we didn't think we'd be coming in this morning talking about salesforce and the impact it was having because nvidia was expected to be the big mover. if you look back over the last seven quar