>> tech: every customer has their own safelite story. this couple was on a camping trip... ...when their windshield got a chip. they drove to safelite for a same-day repair. and with their insurance, it was no cost to them. >> woman: really? >> tech: that's service you can trust. >> singers: ♪ safelite repair, safelite replace. ♪ it is 5:00 a.m. at cnbc. here is your top five at 5:00. ida strikes again after pounding the gulf coast with torrential rain and flooding. the northeast facing the remains of the hurricane with scenes similar of superstorm sandy. breaking overnight supreme court refusing to block the abortion ruling in texas in a 5-4 vote. apple bending to pressure when it comes to app store

payments its second concession in as many weeks. sticking with tech anti-trust officials looking at google with the advertising technology business. golden trouble for the golden arching calling on 14-year-olds to fill the hiring gap it is thursday, september 2nd, 2021. you are watching "worldwide exchange" here on cnbc good morning i'm dominic chu in for brian sullivan here is how stock futures are looking on thursday morning so far. as you can see, right now, the futures are implying a marginally higher for the dow. up 75 points s&p higher by 10 points. nasdaq implied higher by 38 points nasdaq and composite coming off fresh record highs from

yesterday's session. let's get to the top stories with kristina partsinevelos. kristina, good morning >> reporter: good morning, dom apple right now says it will lo loosen rules on the app store and allow customers to collect payment information and skirt the 30% commission on app store commissions. the company faces pressure over its app store. moderna submitted documents to the fda for the covid vaccine. the company expects to submit data to european regulators in the coming days as well. this comes as the fda panel is set to meet to discuss booster doses on the pfizer vaccine. and the wall street journal says the ftc is looking into the

malfunctioning ice cream machines amid ongoing complaints with franchisees and customers the ftc is checking how mcdonald's reviews the equipment and allowing the owners to fix the machines and if suppliers are intentionally making devices difficult to service mcdonald's says it doesn't think it is the target of any ftc investigation. the ice cream machines are made by taylor commercial food service. dom, just the story we needed this morning >> soft serve is something i take seriously at times. kristina partsinevelos, thank you very much for that to the top story and what remains of hurricane ida inundating the northeast with historic rains leading to wide presente spread flooding. contessa brewer has the latest on the storm good morning, contessa >> reporter: we are seeing a lot of the video coming in now, dom,

from across the region it is not good first of all, a travel ban in new york city is now lifting as we speak it was put in place overnight because the water was simply too deep and dangerous the subway service thought most of the city is still closed right now. that is going to be a big problem for people trying to get around this morning. water flooded into tunnels during heavy rainfall. the national weather service had to issue for the first time ever, by the way, a set of flash flood emergencies in new york city and for the surrounding region i also want to talk not just about the widespread flooding, across multiple states, but also we have multiple confirmed tornadoes. let me show you video coming in from annapolis, maryland you see the cell phone video, it appears while driving, an ef-3

tornado in terms of strength the most powerful tornadoes are ef-5s. let's show you the aftermath with the widespread damage roofs have come off. homes have been destroyed. what they will do is go out and try to assess that we know when this happens with downed power lines, there are hazards that prevent homeowners from getting back in if they had evacuated or from rescue and repair crews trying toget back in as well of course, the other part of this, dom, it can take days for rivers to crest. the flooding is a persistent problem. in massachusetts, now, there have been new tornado warnings just issued and tornado watches. that continues >> contessa, i can understand very closely and very well what

you are talking about. on my drive this morning, i was rerouted by waze four or five times because of flooding and downed power lines and everything else. just how much of an effort will it be for emergency crews to even get to the locations because on certain highways and parkways, there are flooding accidents already in progress. trucks can't get to where they're supposed to be >> that's why these governors have put in states of emergencies across new jersey and new york because they don't want people out. it creates more of a hazard for crews getting in the work from home could be problematic today because of power outages and internet outages as well. that's number one. number two, you have the deep water flooding in new york city, we know the water was so deep, they had to do rescues and high profile vehicles bought after superstorm

sandy came through until the water recedes, it will be hard for people to get in there may be families sheltering in place in attics or in new york city, to go to higher floors than what your apartment may be on to escape some of the flood water. once it is daylight and people are out and about, we will get a better sense of how wide spread that is. this is really remarkable to have flash flood emergencies issued for new york city dom, one more thing to note. in new york city, when you ask people and surveys have been done, when you ask people where is the safe place to be in an emergency, often they answer the subway what we saw yesterday with the water just pouring through the storm grates, it was not a safe place to be. >> absolutely. many people waking up overnight with the phones going off with the flash flood warnings

contessa, thank you. the nasdaq and s&p 500 inking out small gains despite the august employment report coming in below forecast that could put a bigger spotlight on the friday jobs report and timing of the fed tapering decision which could be announced or even begin possibly this month let's bring in seema shah at global investors seema, the market seems to shake everything off what is behind the optimism given the headwind on the horizon? >> dom, the market is opt optimistic one is it looks like in the u.s., the covid case growth is plateauing that should mean in the months ahead, things should improve it takes away one of the growth scares the other thing is although the fed is set to taper, the balance

sheet is growing they have to be careful to emphasize just because they start tapering that purchase, it doesn't mean rate hikes are on the way. we think that is a couple of years ago. off the back of that, we should have easy financial conditions and strong growth ahead. that is very good for markets. >> if that is the case, if that's the condition, what are investors looking toward, seema? i know from watching the price action over the last two or three months, it appears as though that kind of tried and true trade over the last decade and and a half has emerged a again. that is go back to large cap and mega cap technology. microsoft and apple and facebook those companies. is that the trend for the overall markets? are we away from the covid recovery trade >> that is a really good question there is some seamless in the covid recovery trade the big tech firms, especially

the faang, they have the strong balance sheet and positive cash flow they show time and time again that they have got the strong numbers. it is not just a cyclical trade. something that performs well when the economy is doing well, but proofves itself time and tie again. some people do look at the growth the big tech firms are a place to hide out. we have allocations to the big tech we believe they will continue to do well. >> we see the trend of new highs. we talk about records in the u.s. market here itappears the pace of gains is starting to slow does that imply there are other places around the world where a recovery trade could still be in the earlier mid stage innings to put a baseball analogy to it

>> yeah. u.s. market growth or expansion is starting to slow which is what we expect because u.s. growth is not moving at the same pace as the beginning of the year now it is time to look at other parts of the world with the reopening trade under way or about to start for us, we think the markets right now are struggling, but in the early 2022 when the vaccine pace takes off and they start reopening, that is when you could see the boom in the emerging markets be careful which markets you invest management is key. of course, europe is still doing well still enjoying the shine from the reopening trade. >> a catch up trade in the works. seema shah, thank you. when we come back on the show, more on hurricane and tropical storm ida in the historic flooding across new jersey, new york and connecticut. we are tracking the storm's path and the damage left in the wake of the storm ahead. manhattan on the rebound

a new report on rental prices surging. surging to near two-year highs we're just a year removed from the pandemic lows. and later, the danger zone why movie goers will have to wait longer for tom cruise fix maverick a busy hour still ahead when "worldwide exchange" returns after this break [music: “you're the best” by joe esposito] [triumphantly yells] [ding] don't get mad. get e*trade and take charge of your finances today. it's another day. and anything could happen. don't get mad. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network

and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. and there you have it— -woah. wireless on the most reliable network nationwide. wow! -big deal! ...we get unlimited for just $30 bucks. sweet, but mine has 5g included.

relax people, my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one upping itself. switch to xfinity mobile and save hundreds on your wireless bill. plus, save up to $400 when you purchase a new samsung phone or upgrade your existing phone. learn more at your local xfinity store today. welcome back to "worldwide exchange." there are signs the real estate

market in new york are adjusting back to normal levels. according to the contracts report from douglas and miller, contracts were up in august compared to 2020 and up compared to 2019 pre-pandemic meanwhile, new signings in the hamptons declined for the third straight month with listings also down. is this a sign of the city coming back post-covid lockdown? let's bring in scott durkin. scott, a lot of people and who could remember that newspaper headline that implied that new york city was dead it seems all has been forgiven in the real estate market in the course of 18 months. >> that's a wonderful way of putting it it's come back with a roar not only sales, but rentals as

well you can't find a rental with concessions anymore. the sales market has sky rocketed with people returning to the city and preparing for the best fall we've ever seen in the history of the company >> scott, what's behind it what exactly is driving people back to buy manhattan real estate when they were shunning it a year plus ago what is having them sign the rental agreements? they didn't want to be here. they wanted to be in florida or suburbs or north carolina. >> it was seetemporary. it was 18 to 20 months long. friday the 13th, we left and we left with food on our desks and we never came back we are shutdown in manhattan so we could not show property there was a lot of catch up. now people are able to work

remotely and they want that return to work because there's something missing in their lives right now. you can only work from your home for so long before it drives you batty. we are seeing a lot of return from every sector right from the rentals to the high-end listings. >> scott, take us through where the real strength is is it the co-op market condo market or single family homes? what is seeing the big surge >> we're seeing a big surge in every sector of the market from the first-time buyer to the third-home buyer that wants to be on billionaire's row. there is no difference here. it is spread across the board. i think the big seller now is the four-bedroom home which tends to sell north of $4 million. people need a home office now. that's a given they need a place to go to get away from it all

they want that in each home. we're finding that in all of the regions across the country people are wanting four or five or six-bedroom homes the four-bedroom and higher is selling well >> before we let you go, i mentioned in our introduction to you, the data around sales and signings in the hamptons is that a trend you continue to see possibly in the next year or so that the idea that the hamptons market will cool off? you say billionaire's row. that is what i think of. >> i think the hamptons is now suffering from the inventory shortage i happen to be in the hamptons right now and was with some of the agents last night. homes are selling in the matter of days and within hours we are seeing inventory shortages. don't legat the drop in business

means the industry is dropping >> that is a problem many areas. scott durkin, thank you for the report we appreciate it >> thank you. still on deck for the show why investors are taking a big bite out of chewy this morning the big money movers when "worldwide exchange" returns after this

welcome back time for the big money movers. four stock stories of the

morning. chewy shares tumbling after the pet retailer fell short of forecasts. a different store for chargepoint. the company makes charging stations for electric vehicles its results beat the street guidance and guidance strong shares moving higher five below shares under pressure topped estimates, but revenues fell short of expectation. finally, veeva systems it provides cloud solutions for the life science industry. watch those four stocks of the morning. let's get a check of the headlines with frances rivera in new york with the latest good morning >> dom, good morning president biden is heading to louisiana to survey the deaf asa deafvastation left behind by ida

according to the associated press, ida wrecked more than $50 billion in damage. the supreme court refused to block the abortion law in texas raising fears of the future of roe v. wade. a group of abortion providers filed an emergency request to block the law on monday saying it would overturn the precedent. president biden decried the legislation as a violation of the conscititutional rights. joe rogan said he tested positive for covid the 54-year-old revealed the diagnosis on wednesday in the video of the instagram followers. he is feeling better, but one of the drugs he said he took is generally used to treat parasites in animals

the treatment the fda urges against. dom. >> thank you, frances rivera tracking right now ida as it barrels through the northeast triggering historic flooding across new jersey, new york and connecticut. watching that storm closely. if you haven't done so, follow our podcast. if you miss "worldwide exchange" check us out ospify n otor apple or your podcast platform of choice we'll be right back. if you're 55 and up, t-mobile has plans built just for you

whether you need a single line or lines for family members, you'll get great value on america's most reliable 5g network. like 2 lines of unlimited for just $27.50 a line. that's our everyday price. plus, our plans always come with unlimited talk, text and data included. so, switch to t-mobile and get 2 lines of unlimited for only $27.50 a line. that's half the price of verizon or at&t. only at t-mobile. the leader in 5g. every single day, we're all getting a little bit better.

we're better cooks... better neighbors... hi. i've got this until you get back. better parents... and better friends. no! no! that's why comcast works around the clock constantly improving america's largest gig-speed broadband network. and just doubled the capacity here. how do things look on your end? -perfect! because we're building a better network every single day.

historic rainfall and flooding in the northeast as what remains of ida barrels through the region we are tracking the storm's path and the damage in its wake coming up. a u.s. judge reviewing the bankruptcy filing for purdue pharmaceuticals dealing the sackler family a lifeline in the process. and mcdonald's trying to fill the hiring gap with, get this, 14-year-olds it is thursday, september 2nd, 2021 you are watching "worldwide exchange" on cnbc. welcome back to the show i'm dominic chu in for brian sullivan on "worldwide exchange." let's look at the markets. right now, the dow jones industrial average is implied higher by just about 50 points

ma ma marginal gain. nasdaq implied higher by 32. record highs for the nasdaq and nasdaq composite nasdaq 100 as well on the bond side, interest rates are a key area to watch ahead of the jobs report on friday. the 10-year is a hair above 1.29%. we are watching the financials august was a very strong month for that sector overall. we have seen pressure in just the last few days. banks are the worst s&p over the last week. just duown about 3% during that span wells fargo, down 12% during the period, with a 5% drop yesterday. following drops again in the previous session if you are looking for a winner, check out media and entertainment. that sector gaining 7% in a week the biggest driver the last few

days have been netflix, facebook, electronic arts and disney and cnbc parent company comcast. watch the media and entertainment sector surging to the top story and remnants of hurricane ida slamming the northeast overnight and this morning as well torrential rain and historic floods creating a travel nightmare more many in the area and dangerous and sometimes, yes, deadly situations for others we have contessa brewer tracking the damage in ida's wake and nbc meteorologist bill karins with the path and targets contessa, we start with you. >> reporter: dom, we are looking at the travel ban overnight in new york city which has been lifted that happened at 5:00 a.m. this morning. if people depend on mass transit, you will encounter

challenges here is flooding from the bongs bronx from last night to this morning. we know the rain created problems there they had to use high-profile vehicles for water rescues in the bronx. the new york times reporting seven people have died from flooding in new york city alone. that is a problem. this, we also have video coming in to us from newark, where the streets have flooded we know that as close to the train station there as a block away, this is from nick kurczewski with video from the streets flooding this has nearly shutdown train service in new jersey. there is, i believe, one line still up and run in the state of new jersey the governor of new jersey has instituted a state of emergency and asked people to please stay home if they can today let's talk about maryland. we know there were a tornado, an

ef-3 tornado that touched down we understand there were children on a school bus yesterday. they got caught in flood waters, as you can see here, and rescuers had to go in and get the children out of the school buses. this is the scene we are seeing play out over and over maryland, pennsylvania and around philadelphia and new jersey and new york, connecticut and now massachusetts under tornado watches as well. the scenes of rescue and damage are going to continue this morning as the relentless rain does not give up remember, these were areas already saturated by such a wet beginning of the week. we had already seen a tropical storm coming through here saturating the ground. you see the subway video with the water coming down, dom, trapping people down there and shutting down the entire subway system of new york city.

>> contessa, i wonder as we see images like we are seeing right now, it is obvious to me it will take a long time to recover from this just how much or what will the focus be for certain emergency crews so far this morning? it is not like you can make flood waters go away you can pump to a certain degree how much will it be a difficult task, i guess, to get some of the people and their emergency efforts to the places they are needed the most? >> reporter: we have firsthand experience because of superstorm sandy. you have to remember the infrastructure is working properly the storm drains cleared and often after flooding, they are not. debris comes in and clogs the drains they will work to clear the flood waters they will work going house-to-house to make sure people are safe and those that

need help, especially the elderly or infirm can get help getting out of the apartments. they will try to restore power in places that lost power and especially where tornadoes and high winds came through. we will see power outages as well this is a widespread effort and don't forget because we already saw it in the south, some of the assets may have already been deployed to the gulf coast to prepare there to help louisiana and other states get back on their feet following ida we're going to be stretched thin i anticipate given the problems with the train lines and subway and newark airport with massive flight cancellations yesterday because of flooding at the airport. anyone who needs to get anywhere other than home this morning is going to want to call and check ahead before they leave. you may have problems getting to where you're going. >> contessa, i want to point out to viewers right now, the images we are showing you right now

with cars trying to drive through flood waters, people trying to get out the stores this is from new jersey, rutherford, new jersey that is 15 minutes wayaway fromh studio if you are looking at what new york city is going through, this is rutherford. this is an issue for the entire tri-state area contessa, thank you. now let's turn to bill karins and the latest on the forecast i was seeing some clearing during my drive to work today. is the storm heading out to sea? >> quickly you have to remember, this is a flash flood event. it is in, it's boom, then it's gong an gone a lot of areas are clear this morning. this is the loop over the 18

hours. this is a 1 in 200 to 1 in 500 year event every year going into every year, there is a .2% chance or .5% chance of this happening. extremely rare this is rivaling hurricane floyd for the highest water levels in areas from pennsylvania through new jersey the rainfall totals. we knew we had a chance for a flash flood event. the poconos and hudson valley. it was from eastern p.a. to central and northern new jersey to new york city several inches 4, 6 inches. that is a widespread rainfall event. the intensity of the rain. in one hour, newark over 3 inches of rain and so did central park the most rain either station has ever recorded in one hour. ever any thunderstorm, hurricane, tropical storm new york city records go back 170 years.

in new york city, that six-hour rainfall total 6.63 inches. in newark, almost 8 inches s that were 1 in 500 year rainfall totals. new york city was the fifth wettest day on record. yesterday's weather mapof floodg connecticut and western p.a. we knew it was a chance of happening. in boston, the rain is ending. we have flash flood warks. be careful traveling from providence to boston to springfield. things will improve in the new york city area and the rainfall out on the cape. dom, this was not your average rainfall event this was something that most people have never seen in their lifetime we have thousands of homes with water in them.

especially basements the number of vehicles and cars flooded, that will be incredible probably tens of thousands. >> i'm not suremany people kne how historic that rainfall would be bill karins, we appreciate it. to the top headlines let's bring in kristina partsinevelos for those. >> good morning. we have the department of justice that is reportedly preparing a second monopoly lawsuit with alphabet. the lawsuit could be filed as soon as december no final decisions have been made the timing could be pushed back. the move marks a stark acceleration of the claims that google is abusing the dominant market position. a federal judge will approve the $4.5 billion bankruptcy reorganization plan for purdue p pharma

it will shield the company's ow owners, the sackler family, from future litigation. the plan which values at $10 billion dissolves the drugmaker and shifts the assets to a company owned by a trust run to combat the opioid epidemic. and paramount is delaying "top gun maverick" which is expected to premiere on november 19th it will now hit may 2022 and "mission impossible 7 "is being delayed until 2022 dom, tom is pushing it >> he has been in top shape for a long time. kristina partsinevelos, thank you. let's turn to the market this year, we made it to

september and history tells us that september is typically the worst month for the stock market let's bring in ryan detrick at lpl. should we be fearful, ryan, of september? >> dom, good morning record rainfall and pushing back tom cruise movies? september is off to a rough start. september is the worst month of the year since 1950. the last t10 years, the last 20 years. we saw a 9.6% correction last september in the bull market you know, seasonality is interesting. we are up 20% for the year as we know coming into september when you are up 20% of the year, the last two times it happened was the '90s the truth of the matter is, we're concerned with the calendar, but there is a lot of momentum behind the market i have been telling you for a

while. we think any dips will go higher >> if that is the case, we haven't seen that many dips at all, really, over the course of the past year or 18 months or so when you say dips here, ryan, what are they? 4% or 5% dips? the 10% to 15% dip could we see a 20% drop in the midst of the bull market and still see the bull market continue >> great yquestion we think 4% to 8%. with the monetary policy and fiscal stimulus. we have not had a 5% correction since last october the longest streak in history. you talk about history up seven months in a row on the s&p 500. the longest win streak you have seen when you go back in history. the last 14 times with a win streak going back to world war ii, six months later, 13 of the times up 8% on average

way better than the average return these are different ways to look at it. the truth is this much strength and momentum and market breadth is coming back small cap and transports were beaten up. now the market does its thing. most small caps down double digits technology stocks down the market is making new highs, but the rotation that takes place and it is a healthy bull market we don't think more than a 4% to 8% correction. >> let's assume the 4% to 8% pull back in the broader market overall. what then goes on your shopping list from the strategy perspective when the market pulls back what would you buy on those dips >> absolutely. we like the cyclical value names. they struggled industrials and materials. you mentioned financials lately. if you look since march 31st, financials is one of the

strongest with the 10-year weakening. we think earnings are strong cyclical value names in the early growth will lead that is where we are overweight. the other group is small caps. a 25% rally in the fourth quarter last year. that consolidated all year our take is consolidating the fourth quarter we think small caps will have another big quarter. >> small caps and cyclicals. ryan detrick, thank you. coming up on the show, we know wildfires threaten life and prosperity, but an increasing worry about water. yes, water more on diana olick and the rising risk series. and coming up, if you have more than 10,000 twitter followers, you can earn money from the company

super follows let you charge for subscriber only content. more evidence of labor shortages across the country a story going viral that mcdonald's in oregon putting up a huge banner saying it is now hiring 14-year-olds and 15-year-olds for oppositions. youtube has hit 50 million subscribers for the paid music service. that is up from a 30 million user count reported by the company last october big moves in youtube music stay here. you are watching "worldwide exchange" here on cnbc

lively hearing aids have been a game changer for me. the process with lively. is insanely easy, you take a hearing test on your computer

the doctor programs it, it shows up at your house a few days later. you can stream calls or music through it, it's got multiple settings, audio adjustments, so you can raise and lower the levels. but it's a fraction of the cost of the other devices. it's instilled some confidence i didn't have before. try lively risk free for 100 days. visit listenlively.com ♪♪ energy is everywhere... even in a little seedling. which, when turned into fuel, can help power a plane. at chevron's el segundo refinery, we're looking to turn plant-based oil into renewable gasoline, jet and diesel fuels. our planet offers countless sources of energy.

but it's only human to find the ones that could power a better future. welcome back to "worldwide exchange." more than a dozen wildfires are burning up and down the state of california right now already surpassing the acres burned this time last year which was the record how do we recover from the explosive fire season? the answer may be the water. diana olick reports on the rising risks of climate change >> reporter: as fires tear across america's west, the risk right now is to life and property soon, it will be to water. >> when we have large-scale fires like this, huge amounts of erosion that end up filling up the dams and reservoirs that

store water and that help create an hydropower. >> like a bathtub filling with mud, reservoir capacity is reduced and the water contaminated it's estimated in california about 70% of the state's drinking water either starts or flows through national forests. >> we are feeling a huge sense of urgency to do work in the forest to make them more resilient to climate change and to these large-scale, catastrophic fires. >> reporter: two years ago, th first-ever forest resilient bond was launched by the nonprofit blue forest and its founder. it was just $4 million. >> we were well oversubscribed from investors for this first project. >> reporter: that privat capital was used to thin and restore 15,000 acres in the tahoe national forest. investors are being paid back by local water and hydroelectric utilities and now working with the world resources institute --

>> we are about to launch our second forest resilience bond. 48,000 acres of restoration. >> reporter: the value is si times the first at $25 million and investor interest is so strong there's already about $200 million in the pipeline for more >> corporations and all sorts of different sectors in the beverage sector, agricultural, tech sector, they're all taking this quite seriously and looking at how they can be part of the solution. >> reporter: for tech, many of the data centers, which need water to cool themselves are located in water-stressed areas. but water seeps in to every aspect of commerce. >> water is essential to our business we need it to manufacture products and we need it to use our products. >> reporter: in just the las year, procter & gamble provided a $200,000 grant to restore 400 acres in the eldorado national forest which feeds the water

supply of sacramento and other bay-area cities, in collaboration with the forest bond. >> business has a responsibility to address these issues. and for water specifically, i think it's really a matter of identifying those areas where your business may be at risk. >> reporter: the return on the forest bond is about 4%, but investors are more interested in the risk-related returns, lowering their risk from costly droughts and disruptions to their water supply and that risk is growing exponentially as the climate heats. dom. >> this is fascinating there is always a development with regard to how people treat this from the risk perspective could this kind of thing -- could this sort of thing be used in the carbon credit markets, i guess, as well this kind of systematic approach to financial and risks involved? >> reporter: it probably could down the road once the carbon

credit markets become more mature and we figure out ways to measure this it would not offset carbon emissions, but offset the risk and help preserve the forest and make them more resilient it is absolutely possible down the road as the carbon credit markets mature. >> interesting development with climate and everything else happening. diana olick, thank you. coming up, looking for the most attractive places for your money. why your next guest sayshe s prefers service sectors over good sectors keep it here we'll be right back.

sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.

welcome back to "worldwide exchange." futures pointing to marginal gains at opening bell. the nasdaq off record highs from yesterday's session. joining us now is katerina simonetti. >> dom, thank you for having me

on the show. this market continues to surprise us. every time we think how much more run-up can we see it keeps going up. there are sectors that are attractive even in this market. we are seeing this rotation to quality. we see a certain amount of profit taking. there are certain sectors we like and others we are cautionary about the example, we are under weight consumer discretionary specifically with goods. we see demand going down as prices are going up. at the same time, we like the services there is so much pent-up demand with the experiences people are having we see the higher demand in that space. we can't ignore the fact the s&p 500 is up over 20% this year investors are seeing it and getting concerned. we advocate to do is take

profits in the index like s&p 500 and russell 2000 and rotating to quality. going into the very securities selection. into specific sectors that are well positioned to deal with the higher volatility which is what we are expecting for the remainder of the year. >> are there certain companies out there? you know sectors in the market cap areas. certain industries more a t attractive than others cloud computing in technology? other names in financials? regional banks what do you put the money into >> dom, a great question there are the technology sectors well positioned with semiconductors like you mentioned. our favorites in the space are health and financials. health care, delta variant is very much out there. it is a concern. there is a lot of pent-up demand

in health care services. we see pharmaceutical companies and health care as a general sector well positioned same thing for banking and financials in general. historically, this is the sector that is related to the rising interest rate environment. federal reserve has a general expectation it will start tapering as soon as the winter investors are expecting and the market is expecting the rates will be going up and market margins for financials are going to be wider than what we have seen before. rotating and looking at equities of evaluations and how they are positioned in the marketplace and what are the earnings for the companies what we need to see. we need to look at our investment portfolios in equity

and bonds. getting through the higher interest rate requirement is going to be quite a challenge and we need to be prepared and do healthy profit taking in certain sectors and rotate to quality and making sure we're positioned to get through the challenging times in our uo opinion. >> a few minutes left. do we fear the fed in tapering >> we absolutely do. we arie expecting it they are going with the narrative the inflation is transitory and rightfully so they are trying to get the economy to recover and they are doing a good job of it, but tapering is on the horizon it is a matter of time the market is expecting it we tell the client focus less on the short-term and more on the long term. strategic positions. >> with the 10-year note at 1.29%. katerina, thank you. that does it for us here on "worldwide exchange.

futures are pointed to modest gains at opening bell. nasdaq coming off the record high in yesterday's session. the mega cap still in focus. it has been a rkmaet leader. keep it here "squawk box" is back after this break. debt free! thanks to sofi. ♪♪ and there you have it— -woah. wireless on the most reliable network nationwide. wow! -big deal! ...we get unlimited for just $30 bucks. sweet, but mine has 5g included. relax people, my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one upping itself.

switch to xfinity mobile and save hundreds on your wireless bill. plus, save up to $400 when you purchase a new samsung phone or upgrade your existing phone. learn more at your local xfinity store today.

good morning state of emergency in the tri-state area at least six people are dead after the remnants of hurricane ida sparked floods and tornadoes. apple bending to pressure again when it comes to app store payments the new rules to allow spotify and netflix to avoid paying the cut to apple. and another difficult and another crackdown in china this time on ride hailing. smaller commissions from drivers.

it's thursday, september 2nd, 2021 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen andrew is off today. joe, it was tricky getting in this morning did you have any issues? >> oh, yeah. i had to take different roads. >> me, too >> major highways. some are closed. lots of issues trees down >> cars everywhere >> lots of broken down cars or cars trying to figure it out a lot of cars had been involved in accidents >> i think others were flooded, too. roads flooded. >> a lot of accidents. a lot of cars facing the opposite way with damage and no one around i