it is 5:00 a.m.eer at cnbc global headquarters. welcome to "worldwide exchange." all-time highs, strong open and end to an up and down month of trading. dow sitting at new record. nvidia trying to bounce back from a $200 billion wipeout as the rest of big tech mostly spared. preparing for the latest look at inflation. investors today, that july pce report. one of the final reads on consumer prices before next month's fed policy decision. plus, a.i. service sales helped drive bottom line for dell. stock higher this morning and vice president harris gives her

first sitdown interview since becoming the democrats nominee. it's friday, august 30, 2024. you are watching "worldwide exchange" right here on cnbc. good morning. happy friday. thank you for being here with us. i'm frank holland. get you ready to kick off this hour in the final trading day of august with the check of u.s. stock futures. dow now sitting at an all-time high. looks like open around 60 points higher. s&p up 23 points. look at the nasdaq. up 128 points. more than half a percent. focus for investors remains in part outside of big tech with financials, health care and industrials along with materials. all sitting at record highs. you see right now the accident we saw yesterday showing you right now. financials up over three quarters of one percent. materials up over half a percent. this morning watching shares of

nvidia after more than a 6% drop yesterday, and $200 billion in market value lost. a look now. you can see nvidia. show you in a second. up higher in the pre-market this morning bouncing back a bit. up 1.5%. not showing it. trust me. up just about 1.5%. the bond market key pce inflation report today. yields, close to lows of the year. the benchmark at 3.86. at its lows of 2024. important to note as always the two year back below 4%. seeing big moves in the 30 year to the down side, i should say. right here. the benchmark, moved down about 25 basis points since the start of august. that's your morning money setup. now to europe and breaking economic news. dan murphy with much more. good morning. >> good morning to you, frank. breaking news on eurozone inflation here. rate crossing 2.2% for eurozone in august according to the first estimate from the eu statistics

agency. inflation figure looked in-line with the increase expected by a reuters poll. things look good when it comes to inflation trajectory in this part of the world meaning good news for the ecb as well on track for perhaps another rate cut in september. terms how markets are trading, though. equities pushing higher closing out this friday and month of august. looking to key inflation data by investors in the united states, you flagged as well. frank, stock 600, the broad equity indice here had a fresh intraday record high earlier. most regional bosses and sectors trading also in the green. this, of course, comes after we saw france out with fresh numbers. preliminary eu harmonized index inflation rate at 2.2% for august an an annual basis and

german and spanish cpi reports, pressures in those two countries easing as well. i mentioned adds to the case we could see another rate cut from the ecb in september. so watch this space, frank, but all in all where we stand as we close out the week here in europe. back to you. >> dan, thank you very much. dan murphy live from our london newsroom. back home plenty big stock m moves to chew on. up over 6% beating expectations in the most recent quarter is dell. huge demand in server business. traditional hardware, up 80% in the quarter from a year ago to just over 7.7 billion. the company is also upping its guidance just a bit ag. shares up more than 6%. shares of lululemon missing sales estimates first time in two years and cutting full year guidance. blew lieu looking to right its resale ship, a breeze through leggings following customer

complaints about their look and fit. google that. interesting complaints there. though the company stip stopped estimates. gross margins in better than expected. shares up over 4.5%. ulta beauty ahead of the open. you can see shares down more than 6.5%. also trim the full-year outlook. ulta says dropping 1% second quarter compared to 8% rise a year earlier. the ceo says the quarter did not meet expectations and its market share continues to be "challenged." shares of ulta, again, down over 6.5%. time for the corporate stories. one chipmaker trying to right its ship. sylvana, good morning, happy friday. >> hey, frank. happy friday. well, we're talking about intel. sources telling cnbc company executives are working with multiple advisers including investment bankers like morgan

stanley to address its struggling fortunes as it stocks sits near its lowest level since 2013. seeing shares slightly higher in the pre-market. according to sources and other media reports, intel is discussing various options, including a split of its product design and manufacturing businesses. the plans which could also include potential m & a will likely be presented at an upcoming board meeting this month. count apple and nvidia as possible investors in openai's latest fund-raising round that could value the chatgpt parent above $100 billion. the report's coming one day after word thrive capital leading the funding round with a $1 billion investment. and elon musk is taking issue with brazil's supreme court amp after it ordered them to have legal counsel in that country.

a turn in the months-long battle between musk and brazil over social media regulations. local media outlets also reporting the court has already fined x for regulation violations and frozen starling finances in the country ensuring those fine are paid, frank. >> thank you. see you later in the show. turn attention now back to the u.s. markets that have largely bounced back at start of august with one trading day left. dow and s&p 500 up more than 1%. on pace for the fourth straight monthly gain. nasdaq down about a half percent for the month. the focus may shift to economic data and the fed's inflation gauge. core pce. ensuring a rate cut is coming next month but not how fast or far they will ease. founder of the maley report. good morning. good to see you. >> good morning. how are you?

>> hit this earlier in the show. i don't know if you were listening's hope you can. all-time highs, rotation to other sectors largely on camp and fed cuts rate in september and keeps cutting. how much does today's pce report, how much does that weigh on investors confidence? could it change the rotation in any meaningful way? >> i'm guessing probably not, because i just don't see this number being something that's going to surprise to the up side. you know, if that does happen, though, we could throw a wrench into this rally. next week, the employment report. remember, last month -- no. earlier this month i should say -- we saw the most recent unemployment report shook things up and whether we'd achieve a soft landing. that's the more important one. you mentioned. some groups acting well.

continue to, continue to see that rotation, that's going to be very bullish. the key is, got to avoid those big cap tech names from rolling over. they've been lagging this past week. that's okay long as it's still rising. >> let me interrupt you. an interesting thesis. show a chart. tech's down 1%. equal weight up 1 and about 1/3%. in your mind, tech continues to decline you think that stops the rotation? confusing. spell that out for me. continue to see pressure on tech you think that stops rotation into other sectors? i don't quite understand that. >> okay. my thinking on this. first of all, again, this rotation seen in the last weeks taken place as the tech group underperformed. you mentioned the nasdaq. traced two-thirds of its decline where the s&p retraced 100% of

it. thing is that especially big tech cap names but the group in general, so highly weighted in the big averages. nasdaq 100 and s&p 500. 57% of the nasdaq. over 30% of the s&p. if those start to roll over in a significant way instead of lagging to the upside that pulls those indices down. if going down investors say, hmm. do i really want to rotate into another sector or rotate into cash? still pays me 5%? i just think waiting in the tech sector will cause the rest of the market to go down. if the tech sector can continue to, a rally nice would help. as long as it goes higher people will have confidence to rotate into other groups. however, if the market's getting hit, i think you'll see people moving to cash. face it. the economy is starting to slow, even though a soft landing is predicted. >> talk about the economy slowing. uninversion of the yield curve.

way to say it. keeping a close eye on that. seen it narrow to the most degree seen in about two years. also looking at oil prices. generally when the yield curve uninverts, i hope that's the right way to say it, i'm sure i'll get tweets, can be seen as an economic regenerator. unless oil prices go up. right now seeing oil prices go up's is that a concern for you? >> it is a bit of a concern. you mentioned people talked about the yield curve no longer being a good indicator for future recession. but the real timing tool comes, doesn't happen immediately after, but the real timing tool is not yield curve inverts. it's after. once back up into positive territory. that's what we're very, very close to that. that will create problems. crude oil, that is the big issue, because we got to consider what's going on in the middle east. that escalates gradually but escalates every single week. if it become as regional war and

close down the strait of hormuz, those oil prices will shoot straight up causing a big, big problem. one thing, positive side. ramble on too much, but one thing on the positive side, when the yield curve is positive that's good for the bank stocks. regional bank stocks are highly weighted in the russell 2000. looking to finally outperform in a sustainable basis first time in a long time. >> that's not the first time we've heard that in 2024. a lot 6 people come with that about the small caps. we'll wait and see. side bar. disinvert. the right way to say it. great to see you. thank you. more on the markets and trading day ahead head to cnbc pro at cnbc.com/pro for analogies is a lot more to come here on "worldwide exchange" including one word investors need to know today. first, much more ahead on the key inflation report and a front line view from the ceo of one restaurant chain. plus, vice president harris sits down for her first

interview since declaring her candidacy ahead of a big swing state bus tour. key takeaways for investors. that's coming up. later, the red hot transport sector rocketing higher and the risk still on the horizon. orwisy hour still ahead when "wldde exchange" returns. stay with us.

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running mate governor tim walz sitting down for the first interview since joining the top of the democratic ticket. an all-important bus tour across the state of georgia. joined with highlights and key takeaways for wall street. good morning. good to see you. >> good morning, frank. good to see you. right. a lot of buildup to this interview because it was the first. what we saw last night was harris as a candidate working to define herself as what she consulted the new way forward even stand big the biden administration economic policy agenda. multiple times throughout the interview harris defended biden and their record. inflation fell below 3%, jobs contractored and lowering cost of prescription drugs and expand the child tax credit. >> when we do what we have done to invest in the american people and bringing manufacturing back to the united states so that we created over 800,000 new manufacturing jobs, bringing business back to america, what

we have done to improve the supply chain so we're not relying on foreign governments to supply american families with their basic needs, i'll say that that's good work. there's more to do, but that's good work. >> now, harris went on to say her day one priority is centered on improving affordability for the middle class. talked about things like her ban on corporate price gouging. something she's come under fire for in the past days. she defends that as a way of reducing grocery prices, but republicans and economists criticized it as bad policy. harris stuck by biden's position on israel and gaza calling for a cease-fire there. clarified her position on fracking saying she will not ban it, and appeared to make an appeal to moderate and republican independent voters with this -- >> i think it's really important. i have spent my career inviting diversity of opinion. i think it's important to have people at the table and when

some of the most important decisions are being made that have different views, different experiences, and i think it would be to the benefit to the american public to have a member of my cabinet who was a republican. >> now, trump criticized harris' comments during the interview that her values never changed even if some specific policy changes have. harris used that line to defend policy shifts over the year, but trump jumped on it saying she's still a part of what he called the radical left. >> a lot of ground covered in this interview. a lot of different topics. you watched the entire thing. how did harris balance kind of being a candidate for change compared to, in conjunction, i should say, with continuing biden policies i think a lot of voters are expecting her to continue? >> that's what i think is one of the most interesting parts of this candidacy in general. really it was under -- sort of in center stage in this interview, because she really held herself to that agenda.

defended it. defended president biden. even defended things like his age and stamina to continue as a candidate and stuck to those policy positions. but then also calls herself the new way forward. sort of trying to walk a tightrope in a way, that makes trump -- makes the election more of a referendum or former president trump rather than on the biden administration. it's not clear whether voters will buy that because voters aren't thrilled with the administration's handling of the economy and the policies. she's saying she can do both. stick with what they've done and continue to do more. that's the gamble. don't know if it will work but saw it on display last night. >> good to see you. coming up on "worldwide exchange," recession fears mecking the transportation coba. stay with us. we'll have the answer.

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exchange." watching the transport sector off back-to-back days of gains. while the index may be on track for its first down month in the last four, the real story, remarkable bounceback since august 6th following that global stock meltdown in the two sessions prior. that upside moved by the broader s&p 5 hp and all world index, u.s. recession fears ease and fed rate cut in september appears to grow more certain. among the names helping lead the charge uber newest to the

transport. southwest and american airlines. joining me now, senior research analyst at bernstein. good to see you. >> good morning, frank. how are you? >> seeing upside moves in transports. often called a leading indicator for the economy and yesterday saw a better than expected gdp report. does that cement if the economy is strong we'll continue to see transports move higher, or do you see possible trouble for the sector coming up ahead? >> if the market's ambasnticipa. less impact on stocks then we think the market's anticipation that fed easing combined with some rational policy decisions, getting past the election will lead to a pick-up in economic activity. pick-up in freight demand tighten up the transportation market leading to a better outlook for all of freight transport. the passenger side, obviously moving out of the recessionary fears i think the market can think about airlines avoiding

the worst of what happened in an economic attraction. >> expecting i think close to record travel during thislthisl labor day weekend. fedex didn't mention. multiday win streak. why are investors so confident in fedex? what do they see there? what do you see there? why so much money moving into that stock? >> i think that stock has got some idiosyncratic promise ms f the economy. fed easing, improvement in economic activity, always in a cycle sort of stock. think about the moves the company's been making during this protracted freight recession, really rationalizing some fixed cost infrastructure, working towards integrating some of their redundant networks, able to pull costs out, despite

a bad macro. on top of that the company is making very shareholder-friendly moves inconsistent with maybe what the market's perception of the stock has been historically. specifically talked about running a process to think about spinning off their ltl freight division, a sector with a lot of investors interest and thinking if they can narrow focus on the small package business that business will benefit noth from having some of the cash flow from spinning off that business. also from better focus of management and execution. >> a lot of people think that spin-off would help the ltl trucking sector. end bundling reducing rates. put out research about that but we want to move on. spoke with the ceo of al company and get yore take. >> seen first part of the year significant growth in the market. inventory correction on the base last year. this is gradually coming down as the comps are improving, but we

continue to see underlying growth between 3 and 5% in terms of volumes pointing to resilience we continue to see in the global economy. >> clarity, talking about's upcoming holiday season. were you surprised by those comments? we continue to talk about the consumer, quote/unquote, being under pressure? >> the consumer under pressure is separate from the inventory correction issues. right? u.s. supply chains have been pulling down inventory post covid surge. we see healthy freight demand on an inbound basis. west coast, for example, really off the charts. you do have a lot of companies gearing up for the holiday season. also maybe have companies thinking that, if there is policy risk we might see a lot of tariffs in the future, let's pull product in now before we get hit with the costs. could be additional factors at play beyond just a strong economy. i think the underlying factor here is that the u.s. consumer continues to do pretty well, and

that you're looking at a setup for the freight components of the economy doing much better back half of the year than they were first half of the year. >> dave, one last question. almost out of time. i want to talk about the possible risk of strikes at the east coast, gulf ports, and great lakes ports. that union meeting next week. contract expires september 30th. how big a risk for the u.s. supply chain and it a number of stocks we're talking about? >> i think it's going to be -- a risk in terms of headline risk. i think that the east coast port workers are looking for something better than their west coast brethren have gotten could lead to shifts back from east coast ports back to west coast ports. hopefully it's going to be at the latter end of the shipping season, and it's also possible some of the early imports have been, importers saying i don't want to mess around with the risk there's going to be a work

stoppage closer to peak. pull stuff, head forward. i do think you are going to have a lot of headlines around automation and the risks of port workers potentially disrupting things opinion whether or not they go on strike is -- no way to handicap that at this point. >> sure following it and end up touching base with you sooner or later. dave vernon, always good to see you. >> thanks. as we head to break we wish warren buffett a very happy 94th birthday. the legendary investor, an early present. berkshire hathaway topped $ trillion in market cap. one of serve's u.s. companies in a very exclusive club and the only non-tech stock in that club. berkshire on a roll with class a shares up nearly 30% over the past year. warren buffettal stake in the company 15%. worth $145 billion. many happyetns. rur we're back in just one minute.

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it is after 5:30 in new york. a lot ahead. wall street closes out with a rocky august. nasdaq tries to avoid being in the red for the second straight month. one of the last big data points before next month's rate decision. the fed's favorite inflation gauge. pce. get the c suite on high prices and capital.

flying this holiday weekend, be prepared to wait. another record round of passengers expected. how a.i. could help ease the pain of taking to the skies. it is friday august the 30th, 2024 and you are watching "worldwide exchange" right here on cnbc. welcome back to "worldwide exchange." i'm frank holland. great to you have with us. pick up half an hour with a check of u.s. stock futures on this final trading day of august. futures in the green across the board. by the way, dow sitting at a record high. look it's like it could continue. dow hitting highs this morning so far looking like it would open up more than 70 points higher. s&p higher. 23 points. under half percent. nasdaq best performer up almost three quarters of one percent, 125 points. investors closing out a bit of an up and down august. global sell-off start of the month. now the dow and s&p up more than

1% for the month of august. on pace for the fourth straight monthly gain. look here. you can see the nasdaq for the month. just down about a half a percent. something we'll continue to talk about throughout the show. a look at stocks on the move ahead of the open. dell high after beating expectations on the back of huge demand in its server business and marvell beating with results improved growth in its forecast. also raising guidance. mongodb here on "worldwide exchange" moving higher. all three, dell up, marvell up and mongodb up over 13.5%. watch shares of nvidia ar a more than 6% decline yesterday and $200 billion in market cap wiped out. trying to bounce back a bit this morning. up over.5% this morning. week-to-date down 7.5%. much more on this stock and its ecosystem in a moment. that's your "morning setup."

latest look at the fed's inflation gauge, pce. july reading what consumers are paying for goods and services expected to hold steady from june at 2.5%. core figure, however, forecasted to tick up just a bit to 2.7%. data seen as a key piece of information for the fed ahead of its next meeting. expectations growing for the first rate cut in four years, beginning just to ease cost of capital. for a look at the front line impact of inflation and elevated costs bring in nicholas perkins ceo of the fast casual burger chain fuddruckers. good morning. welcome to "worldwide exchange." >> good morning, frank. thank you for having me. >> great to have you here. all right. so the forecast for pce supposed to be 2.5%. well, well off its high of two years ago over 7%. how meaningful is that decline been for your personal business and for your customers? >> i believe that anytime that people are able to obtain some

relief in terms of -- of costs and price. i mean, it certainly has a direct impact on foot traffic. i think that, in my industry, surrounding all of the economic uncertainty that came from you know, the supply chain and inflation, you can look across the board and see decreases in foot traffic as it has pertained to the higher cost of food. especially away from home. so anytime that, you know, you're able to see, you know a reduction, you know, in price, you're able to directly correlate that to increased foot traffic. >> i want to get a bit more granular and back to june's pce. again, expected to hold steady month over month. talking headline. last month 2.5%, just said. goods down, basically flat. services up. food up almost 1.5%. energy up 2%.

for a small business owner not only you, franchise or you run the fuddrucker company and own a number of locations. opening up a few more. how impactful is food going up 1.5% year over year? a big change talking food prices? >> absolutely. i believe we have experienced, you know, food, rate increases year over year over the past several years, and anytime you have opportunity to be able to see how it is, increasing directly, it affects consumers. i think that, you know, especially the low-income consumer. in our industry, you see the adverse impact of inflation quite a bit, and then it drives to the quote/unquote value wars that you see. back in '03 there was a dollar whopper, a dollar big mac going on in the '08 recession shows that's where we are now. so fuddruckers' unfortunately not able to play the value war

game, but analysts surmise the lower-end consumer has exhausted their stimulus, be that as it may. i don't know about that, but as far as fuddrucker's is concerned we can't quite afford to play that value game. >> and cost in capital. expecting a fed rate cut next month. for your business, trying to grow your business significantly next year, and sell for lack of a better word 12 new franchises to people next year. as we see that next rate cut coming up, does that alone help business or the idea we'll get a rate-cutting cycle over the long term what helps business? >> absolutely. it will help your business. clearly, secretary powell has increased the rates quite a bit over the past few years. rents have gone up significantly. cost of borrowing has gone up. mortgage rates have gone up. i believe that people have been squeezed across the board, but, you know, i believe that it has also impacted, you know, people from eating food away from home and more folks are probably

eating at home as a result of that, but i believe that a decrease in interest rates and people having the ability to obtain capital cheaper, you know, be able to make decisions that you know, can impact their dining away from home. you know, as far as franchising is concerned, you know, the lower cost of capital allows people to be able to invest in businesses and diversify and things of that nature. we do believe we'll be able to see some positive impact there. >> nicholas, also out of time. yes or no to this. just the cut that helps out? or is it over time a couple cuts you really see the impact? >> i believe we'll see a greater impact in the small business world. you know -- long term. you know, as these things happen. >> okay. >> yes. absolutely. >> all right. nicholas perkins ceo fuddruckers great to have you on "worldwide exchange." >> thank you for having me. boom in a.i. anddata

centers creating an arms race in one particular area. we'll explain that. coming up, intel shares getting a boost this morning as the troubled tech giant weighs new steps to shore up its finances. shares rebounding a bit up.5 2%. we'll have the details when "worldwide exchange" returns. "worldwide exchange" returns. stay with us. ts you at ease. let's do it! you've got more options than you know. book now. 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.

your hair can grow 590 miles over your lifetime. it's in your nature to grow. nature's bounty helps you grow thicker fuller hair with just one capsule a day. you are bountiful, it's in your nature. welcome back to "worldwide exchange." time for your "global briefing." eurozone falling lowest level in three years this month.

new data out has figure is just above 2%. adding to the case for another ecb rate cut next month. and accelerating, japan markets adding to the bank of japan's case to raise rates further. elon musk taking issue with a brazil supreme court. reporting the court's fined x for frozen starlink finances in country making sure the fines are paid. turning to this week's big stock story. of course, nvidia in the aftermath of its earnings report. shares working to bounce back shedding more than 6% yesterday. during the company's conference call the ceo identifying one industry that could see a big boom thanks to the arms race around chips and artificial intelligence. pippa stevens has more on that story. good to see you. >> good morning. all about liquid cooling with nvidia's ceo saying the number

of data centers that want to go to liquid cooling is "quite significant" because traditional air conditioning systems don't dut for genai chips like those from nvidia, given how much heat they're generating. rbc saying crossed the rubicon no going back to traditional a.c.s. about 5% of data centers have liquid cooling, but the firm anticipatings a 40% compound growth rate ahead with calling it an arms race to build out this cooling capacity. key players alongside schneider electric and the hvac players. not made a big splash in cooling but a natural extension of business molds names like trane and carrier interested in a piece of the pie. johnson controls calling liquid cooling a "incredible opportunity" frank, i'm sure we'll see more announcements in

this space. >> i would think so. especially after jensen huang mentioned it in particular. what does this cooling equipment look like? crossed the rubicon. where are we at? >> three primary liquid technologies right now. immersion, direct to chip and rear door heat exchanger. a mouthful to say there. all three have a place looking forward, because a lot of what technology you go with depends on your data center's specs as well as the environment, how hot it is. can it accommodate something as heavy as immersion technology. bottom line, why the technology is less sophisticated than the chips themselves, there is still a barrier to entry for this industry, because you have to be a preferred vendor. you have to have that relationship with the hyper scaler and the chip manufacturer. working directly with cooling technologies with an eye to specific chips. it might not seem that complicated this is an industry

hard to break into and the players that have already established themselves are in a good spot going forward. >> pippa stevens, thank you very much. coming up on "worldwide exchange" one word every investors needs to know today. plus, using artificial intelligence to make your next flight easier. how airlines are tapping into the tech to improve getting you tohe y wreou want to go. we'll be right back after this break. stay with us. with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right? at aes, our energy solutions have powered the world forward for more than 40 years. and as demand continues to scale, so do our solutions. introducing maximo - our new ai-enabled solar robot. max makes construction faster, safer and more cost effective than ever before. and with max doing the heavy lifting, even more people can join the team.

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welcome back to "worldwide exchange." air travel expected to go out on a high note. tsa anticipating more records with more than 17 million people taking to the skies. we take a closer look how airlines are looking to tap into a.i. tech to cut down on your travel time. >> the airline industry is betting that a.i. can help it reach new heights. major u.s. airlines including american, united and alaska airlines are investing in new a.i. tools to help speed up and streamline everything from ground control to customer service, to route optimization. american airlines took us inside its dallas control center to show us it's smart power tool in action. the technology developed in-house uses a.i. and machine learning to automatically assign gates to incoming flights. cutting down on runway taxi time.

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and welcome back to "worldwide exchange." time for your "wex wrap-up." intel executives working with advisers including investors like morgan stanley addressing its struggling business includes splitting up product design and manufacturing businesses. apple and nviidia weighing investments according to reports. one that could value the company at more than $100 billion. shares of lululemon higher despite missing sales estimates for the first time in more than two years. the company cut its full-year guidance. a bit of a different story for ulta beauty. retailer falling missing expectations first time in four years and trimmed its full year outlook. disappointing results after warren buffett the berkshire hathaway and celebrating his 94th birthday. happy birthday, and an early

present wednesday, berkshire hathaway topped $1 trillion in market. the only tech stock in that club. and headed for the fourth straight monthly gain. nasdaq, however, trying to get its head above water. half percent away from going positive for the month. bring in head of derivative strategy at rbc capital markets. always good to see you, good morning. >> good morning. >> i just want to get a take what you make of the market action seeing in the pre-market action. wild week. nvidia earnings beat expectations but the stock still fell and saw it go higher the next day. interesting there. >> yeah. a good question. i think honestly what investors are trying to sort out as well. a lot of different narratives in the market right now. interesting to me was prior to nvidia earnings, your option sentiment which historically was incredibly bullish ahead of

every earnings really wasn't -- not bearish, either, frank. in the middle. goldilocks luke warm. to me telling in and of itself. i think that's a little about the positioning of how many people have already jumped into the pool. >> how do you see today shaking out? >> my wex of the day is cross-currents. i think that's sort of where we are right now. pce incredibly important. nfp in the next few days crucial and i think the cross-currents will determine the narrative of the market. i think we're sort of in this muddle through period until we get the next earnings cycle and the next fed and people are asking not necessarily whether the fed will cut or not but how much. that determines a lot of the trades seen, like small versus large, value versus growth. mega cap versus everything else to hinge on these data points. >> a lot of people talking

whether a 50 basis point cut. talking about compared to a 25 basis point cut. gdp, stronger than expected. pce coming up. do these two reports, does that influence or will they influence the fed in your mind, when it comes to a 25 basis point cut or a 50 basis point cut? for example, we see pce come in hotter than expected's does that change what the fed, in your mind, might do? >> absolutely. i think that that's what we mean in some ways how these data points have become more and more critical. we see it in derivatives. look at structure and tenures of these specific dates, for instance, you really see a hump in implied volatility telling you the market is really focused and specific events as something ta could catalyze a different narrative. how much is the question, because essentially powell has taken the other question will they or won't they off the table. >> talk how much is the question. talk about something generally get to picks later.

one of the things you've talked to us this year to us in particular. downside protection. kind of like meh when it comes to downside protection. has that changed at all? the markets actually may decline, might see more volatility or possibly a correction? >> super interesting, frank. i would say it started to change after you got that early august drawdown. so you had that vix spike hit almost 60, 50s making people nervous. although we've sort of round tripped when you look at the vix back into the teens, people have relatively short-term memory i think when it comes to volatility. the fact we were able to levell nervousness. we saw that pick up. meaning seeing hedges come in. at the same time two camps. people a little more worried, but also people who think it's steady as she goes. we are seeing both volatility owning as well as selling and

increase in hedging. >> all right. sounds like still people aren't that -- not really going out there looking for that downside protection right now. what does that tell you about the strength of the market or the idea it may be getting frothy again? the dow hitting a new record? s&p still within striking distance? >> yeah. look, from my perspective hedging is still relatively inexpensive. of course, i've been saying that for quite a while now and the market continues to rally, but there are, just so many events that could change the direction. not the least u.s. elections coming up later this year. i think there is interest picking up in hedging. again, it always taking a drawdown for people to remember, hey, maybe i should be protecting my position given where the market has gone. >> we talked about options. one broad market take. matt maley on earlier today. this is a chart, tech and equal weight since friday. of course, jackson hole. see the s&p equal weight up one and a third percent to be fair.

tech down almost 1%. this thesis, tech declines, continues to decline, stop the rotation because he thinks general indices would decline as well. do you agree? depends on tech to hold up at least to some degree? >> funny you say that. something we talk about actually earlier in the year as well. simply under the tag line how the meat is made. it's really about the mass of the market. the problem, when the mat of the market is six or seven names, frank, it's not rocket science in the sense that the s&p's going to trade down. nasdaq will trade down, if you're heavy hitters trade down. i think what you need to have happen is the a.i. story has to be intact. can't sufferer a serious drawdown and the overall market up. stays the same for the rotation. yet, rotation can hatch. brater breadth, equal weights do well but can't have the mega cap go down.

>> always a pleasure. have a great weekend. thank you very much. >> thank you. one more quick look at futures. mentioned all morning long in the green across the board. a look, dow on pace to hit a new record right now up about 90 points. s&p up 25 points. also nasdaq up almost 140 points. look at nvidia bounceback. up 1.75 of 1%. that does it for us. "squawk box" up right now. good morning. key economic reports including the fed's favorite inflation data point. bring you the expectations. dell riding the a.i. wave. server demand climbing as the tech giant, stock moving higher. and the harris-walz tick, m ticket. we break it down. it is friday august 30, 2024. "squawk box" begins right now.

good friday morning, everyone. welcome to "squawk box." live at the nasdaq market site in times square and your eyes do not seve you. it's -of-d deceive you. there is no joe, becky or andrew. there are, but not here. mike santoli is here. and contessa brewer here. it's pouring rain. i found that out the hard way. bring an umbrella in new york. futures. looking agents more, dare we say, "sunny"? sorry. dad joke. futures, mike, in the green. yesterday if you are keeping score at home the dow closed at its 25th all-time high of the year. dow now on track to add more than 1% just this month. >> yeah. >> s&p 500, adding more than