it is 5:00 a.m. at cnbc and here is your top five at 5:00. wall street picking up the pieces after yesterday's slides, big tech taking it on the chin, its worst day in nearly a year traders still figuring out today. futures, they are mixed. the focus remains on the feds, rising rates and confusion over how it's going to unwind the $8 trillion balance sheet. d.c. on high alert one year after the january 6th insurrection president biden set to address america today. a closer look at what's really going on inside hospitals

from forcovid to with covid. as they fill up and as medical workers start to burn out, where we go from here. it is thursday, january 6th and this is "worldwide exchange. good morning, good afternoon, or goo evening and welcome from wherever in the world you might be watching i'm brian sullivan here on cnbc. let's kickoff your morning with stock futures. they are not giving us help on how the major indexes will trade today. they are mixed dow futures up a tick and nasdaq and s&p down a tick. the dow is coming off a nearly 400 point loss, first down day of the new year. that after fed meeting minutes indicated they may begin to raise interest rates as soon as

march and maybe more importantly to the markets, the fed may also begin to cut its balance sheet at the same time and parts of the market remain confused for exactly how the fed is going to manage to pull that off and the impact it will have on trying to clear more than $8 trillion off its books. technology stocks were hit harder the nasdaq having the worst day since february we talked about this earlier in the week something morgan stanley highlighted. the risk of that concentration of just a few stocks having so much weight and power over the indexes. wednesday, a perfect example of just that. look at this, this is the point value impact of just a few stocks on the nasdaq 100 yesterday. microsoft, accounting for 59 points of the drop followed by apple, tesla, meta, alphabet and amazon, and in other words, even if those were the only five stocks to go down

out of 100, it's likely the index would have fallen anyway now if it was a hard day for the nasdaq, still an even harder day for the poster child of tech stocks that is the cathie wood ark innovation drop. the top holdings include names you know like tesla, roroku, con base outside of stocks it's also about rates in treasuries getting ahead of what is likely to be the fed's first rate hike maybe as soon as march ten year, sitting at its highest level since april of 2021. oil is also on the move higher, sitting at november 2021 highs and this morning, crude continues to creep back closer to 80 bucks a barrel one reason, super cold weather in north dakota and parts of canada is hurting oil flows even

as inventories remain on the lower side that's what's happening here, let's find out around the world. asia followed the u.s. lead to the down side with the japanese nikkei seeing the worst day in six months not helping my prediction about japan but a long way to go let's get a check on the early action in europe, with julianna tatelbaum in our london news room good morning >> reporter: brian, good morning. i'll pick up on asia there we did see the asian markets generally follow what we saw on wall street with the nikkei ending 2.9% lower. the shanghai dropping a quarter percent. we did see a little bit more resilience in the hong kong market with the hang seng up about 0.7% but worth bearing in mind in the previous session we saw a steep selloff. as for europe, yesterday the stoxx 600 closed up before the

minutes came through driving the selloff in u.s. stocks so this morning a little bit of a catch up trade taking place here in europe we have red across the board the ftse in italy, leading the losses down 1.2% the ftse 100 down about .7%. the uk market overexposed to those so called value stocks from a sector perspective, this is what the breakdown looks like in europe, following suit with wall street, technology underperforming this morning down 2.4%. the more resilient parts of the european market, banks, autos, insurance and basic resources. so those more value oriented stocks are proving more resilient unanthan the broader market this morning. >> still a lot of red behind you. a lot of red thank you very much. >> definitely. continuing now, your next guest says while this year looks promising overall from a fundamental level she does not

expect volatility go to go away just yet erin gibbs joins us nice and early. appreciate it very much. what do you make of the first couple of days of the year, certainly the market has been taken back by the federal reserve balance sheet news what's your take >> i think this is somewhat expected i was surprised on how strong we finished the last week of december i think that last bit of rally, perhaps investors are starting to say, oh, we've actually got some headwinds here. and certainly the fed is confirming that we might see rates as early as march, maybe perhaps is a bit surprising. but, you know, any time we talk about higher rates, you always see a bit of a pullback on the markets. but i think overall, you know, we are in a pretty good position for the year so with the first quarter might be a little concerning, we've seen some of the estimates for

the first quarter revise down, we've seen growth rise down because of this last variant of covid. but for the year, we're actually seeing profit estimates go up. very consistently over the past two months so right now we're looking at about 8.5% growth for the s&p 500. 11.5% growth for the s&p 600 these are good numbers these are the type of numbers that are profit growth that we've seen back in 2014 to 2017. and those were very good years for the stock market though we do have, djjust like you're talking about the mega caps with a lot of weight, highly valued, over all the fundamentals for the full year look very good for going into 2022 >> right now, we've been talking about the fed and this balance sheet reduction. but you and i know that the financial markets have the

attention span of a pigeon it's not very long right now we're focused on the federal reserve, you're talking fundamentals do you think the narrative, sooner than later, is going to switch from the fed, we're all going to get over that shock or whatever, and start focussing on things like corporate earnings and earnings growth? >> as an investor i would certainly hope so. but look, i think this story of supply chain issues, flinflatio, the fed, it's likely we'll see that for the first half of the year in the headlines. and looking at inflation expectations we see increases and at high levels of inflation for the first two quarters so that's another part of my prediction is that though the full year looks good, i think we'll see a lot of volatility because these types of headlines around the fed, around inflation, around supply chain issues, that's going to continue

and so, the past few years, if they haven't already felt rather volatile and extreme and stomach churning for investors, you might expect that for another six months and so that's where we're trying to -- >> yeah, there have been -- i was going to say, they have been stomach churning but they churned higher if you can weather the big days -- that's how the market is nowadays you kind of just chug up, fall a lot, chug up, fall a lot it's kind of the new market paradigm when we talk about the fed, we talk about inflation inflation gets a bad name. inflation can be good for certain types of assets. would it mean pricing power for small cap mostly domestic stocks >> yeah. in fact, they can be very positive the down side is that if interest rates get higher, they can weigh on the valuations of small caps unfortunately small caps are

already so lowly valued, compared to mega caps, they're in a good position that as long as we get past -- as long as we get more certainly around interest rates, they could be the outperformers for the year so we're looking at that very carefully. i think within the first half of the year, probably we'll still see that continued outperformance within the large caps and once we get a better and a clear idea of what the fed is going to do for the year that's when the small caps could really out perform >> erin gibbs of main street asset management we are keeping our eye square on the small cap stocks thank you very much, have a great day, a happy new year. see you soon, thank you. in the meantime we have a few big corporate headlines to get to this thursday morning at&t and viacom are reportedly eyeing a sale of their stake of

the cw network next star is likely among the best suitors the journal says a deal could be just days away but talks could also fall apart. the flight-mare continues for travelers, nearly 1,700 more flights were cancelled yesterday the 11th day of 1,000 plus cancellations and the industry's worst stretch since the beginning of the pandemic. this morning more than 1,400 flights have been scrapped with another 600 cancelled tomorrow carriers have now cancelled more than 22,000 flights since christmas eve. in other words, if you are flying, check your flight before you pack the kids in the car to go to newark airport and apparel chain authentic brands withdrawing plans for an american i.p.o the company did not give a reason for shelving the listing.

but in november the company that owns things like forever 21 agreed to sell a big stake to partners and hps investment partners in a deal valued at nearly 18 billion, including debt so they're doing fine. we have a lot more to do when we come back. the numbers don't lie. the one thing some of the worst performing tech stocks now have in common. rbc's lori calvasina is here to weigh in and more shocking crypto hacking news later on, president biden set to address america today on the one-year anniversary of the capitol insurrection we're back after this. customersx can get the new iphone 13 and t-mobile will pay for it! upgrade to the iphone 13 on us.

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welcome back 2021 was a record-breaking year for many things, some of them good, some of them not so good and one thing just down right bad was the huge jump in crypto currency thefts. do you know your bitcoin are we know where eamon javers is. joining us with the numbers and what's going on with this crypto theft. good morning >> good morning. that's right a whopping $3.2 billion worth of crypto was stolen last year that is a 516% increase over the year before. it's a huge number and so is this

72% of the stolen funds were taken from so-called de-fi platforms, those are the services with no central chain authority. that's because it's such a fast growing segment of the cryptocurrency segment they have not put in place enough security even as investors are piling in without doing homework on the services themselves. over all, $14 billion from all sources, including ransomware, tore financing, dark net markets and others went to illicit addresses last year. they were able to calculate the war chest held by these addresses, that figure $10 billion worth fueled by the crime itself and the increasing value of the criminals' crypto assets the fact that public and law enforcement can see the funds is

actually good news take a listen. >> sometimes you might think if you've been hacked or a victim of a ransomware attack those funds are gone but we can see them sitting in that wallet. and we might be able to see which exchange they go to and you can freeze the fun. >> reporter: even as the total crypto thefts are increasing, the percentage of crypto activity associated with crime is going down, that's because of the enormous increase in legitimate crypto transaction. so the criminal stuff gets smaller and smaller over time as a proportion back to you. >> do we know where these crooks coming from? >> reporter: we don't. generally you're talking about gangs that operate out of eastern europe and the former soviet republic. we've seen criminals all over the world and every continent as far away as north korea.

we've seen weird cyber and crypto hanging going on. what chain alice was able to do here is total up all the theft they're seeing we don't know if this is everything but this is as comprehensive of a report as you're going to get. >> quickly, any words of advice for budding crypto buyers on how to preserve their assets >> reporter: one thing is, if you're using de-fi, one of the things you want to do is make sure that platform has been security audited by a third party. you want to make sure that there's information about the founders of the de-fi system, you can figure out who the people are that are backing this somewhere on the internet if you're using an anonymous de-fi that has not been audited before, that might be a problem. >> eamon javers, an important story, thank you very much

appreciate it. on deck your morning rbi and where allof you are moving to and also getting out of. and as we head to break, it is early in the year but it's already been a rough start for many big name stocks, particularly salesforce.com down 10% in three days. those are your big three dow laggards so far in 2022. right now dow futures are actually up just a touch and we're back right after this 37 two out of three guys experience hair loss by the age 35. kind of scary. that's why i use keeps. keeps offers clinically proven treatment, and the sooner you start the more hair you can keep. get started for $1 a day at keeps.com. at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner.

welcome or welcome back to "worldwide exchange. today marks the one year anniversary since the deadly january 6th attack on the u.s. capitol. a look at what is planned across america for today. >> it will be a day of reflection in our nation's capitol, marking one year since the deadly insurrection. washington d.c. is on high alert for the anniversary as senior u.s. intelligence official tells nbc news there's a call for acts of violence over the next 48 hours. president biden is scheduled to give remarks at 9:00 a.m. novack djokovic's chance at repeating as australian open champion may have hit the net. one day after announcing he has a medical exception from the

strict vaccination guidelines, the country rejected his visa saying they did not accept his exemption. in a tweet the prime minister said rules are rules are no one is above the country's covid rules. the 64th annual grammy award show has been postponed amid the surge in omicron cases this is the second time the show has been rescheduled because of the pandemic. it is a lucky day for a pair of lottery players, power ball confirming two winning tickets one in california and one in wisconsin, this is the 7th largest jackpot worth $632 million, not a bad payday. >> not a bad way to end your day or start your morning. >> now you know where to look if you're in those states. >> exactly, wisconsin and

california, congrats to them appreciate it. on deck. breaking down the fed fray cuss. lori calvasina is here with what you need to know about why the federal reserve surprised the market and also why one group of stocks may still be worth your hard-earned money right now. if you haven't already, check out our podcast, it's on all the mar atrmanwereacjoplfos d a bk right after this you could fret about that email you just sent. ...with a typo. aaaand most of the info is totally outdated. orrrr... you could use slack. and edit your message after it's sent. [sigh of relief.] slack. where the future works.

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waking up to wall street whiplash big tech with a big black eye to start the year futures are holding steady they say don't fight the fed well, tech tried and lost with a double punch of rate hikes and asset sales. front line worker burn out a new cause for concern. we'll speak to a doctor live, what he's seeing on the ground right now. it's january 6th and this is "worldwide exchange. >> welcome or welcome back and good thursday morning, everybody. thank you for joining us i'm brian sullivan hope you are having a great start to your day, grab another cup of coffee. we have a lot to do. stock futures, we are about 5:30 in the new york area, futures are mixed, not giving indication

which way the market wants to two. i will say s&p futures have ticked in the green. it doesn't look like, at least now, at least now, anything can change, that we're going to see a follow through on the selling that we saw yesterday particularly accelerating yesterday afternoon. if you need some reason to be in a good mood this morning, i suppose that's it. yesterday investors really got kind of a double gut punch from the fed. the fed saying not only could it start to raise rates earlier than expected, we kind of somewhat actually expected that, but also could start to trim its $8 trillion balance sheet. that news and exactly how the fed might pull that off, caught some investors offguard. the nasdaq and big tech, their worst day since february of last year rising interest rates matter to many stocks because higher rates can eat into higher valuations if you need an example of how that works, here you go. the four worst stocks on the nasdaq 100 this year, all have

one big thing in common. we're going to show you. their forward p.e. ratios and see if you can discern anything. these are the four worst names in the nasdaq 100. the forward ratio of zscaler 536. data dog 287 high valuations, high rates not a great combo. obviously while the big tech beat down is a huge story for the markets, there is a lot of stocks and groups that are higher on the year in fact, our old favorite, energy, it's having a huge week. it's already up nearly 7% and the banks on the prospects of higher rates, they like it, financials up 2.5% yields are ticking higher once again, back above 1.7% been quite a seismic shift

bitcoin, back below $43,000. a really big shift in the first four days so far of the year let's talk about it, joining us rbc capital markets, lori calvasina. great to have you on again thought it might be a sleepy start to the year. it has been anything but interest rates are on the rise the fed kind of surprising us. what do you make so far of 2022? >> well, look, it's anything but easy i think a lot of people wanted an easier start to the year, looks like we're not going to get it i think we're continuing a big theme were starting to digest in december, which is the more aggressive actions from the federal reserve than what equity investors would prefer one thing we see over time, it's not just a function of the last few months but over time when the 10 year yield is rising, stocks tend to underperform cheap stocks tech is the home to the most

expensive valuations in the market but financials and energy those sectors that you mentioned are doing well to start the year, that's what's pop lating the bucket of cheapest stocks right now. the price action is actually very, very rational. throw in the fact that growth is expensive. and you have a recipe for a fierce unwind. that's what we're going through right now, it's just a repricing. >> that's kind of what we trie to highlight with the names. obviously, lori, those were extremes not the companies but the valuations is that a lesson right now to our viewers and your clients, that if you own these really high growth, high valuation names just be careful. >> i think that's right. i think the issue here, right, is fundamentals don't always drive the price action and equity investors hate it when i say things like that, but that is the truth if you think about fundamentals in terms of the specific companies themselves there are a lot of great

businesses caught up in this repricing. as an investor you have to decide are you more near-term, intermediate focused, or longer term focused if you are longer-term you may be able to ride this out but the next few months this is going to be an area of pain for perhaps a bit longer. >> it's not just your clients, tv viewers also hate when you say stuff like that, but it's truth and sometimes you have to have the hard truth. if we're in the environment of rate shifting, the fed trying to unwind an 8 plus trillion dollar balance sheet, what do we invest in now >> some of the areas of the market that have been working this year, financials and energy are still very inexpensive and there is still value there as long as that valuation opportunity is still in place, those are good areas to look at. other areas, looking from a

strict valuation perspective, we've been getting questions on things like consumer staples i'm neutral there, but the valuations are pretty tempting and a sector that looks interesting is materials materials is interesting if supply chain pressures ease this year as investors have expected. there are bits and pieces you can look at, but frankly they may be bits and pieces of the market that investors haven't wanted to look at for a number of years. >> what are those best parts, lori give us some actionable advice to start our 2022? >> look, i would say in addition to all the sectors we just talked about, small caps are deeply undervalued >> small caps? >> they didn't have a great day yesterday but they had nice move over the past couple of weeks on days where the market has gotten more confident we'll get through the omicron variant without more damage to the economy. if you're feeling good about the

economic backdrop, i think we will come out with a healthy economy intact, that's another area ignored for the past few years that you can find interesting valuation opportunity, including things like financials and consumer stocks. >> are you a believer in the financials we've seen them tick up as rates tick up. but we know there's no way interest rates are going to keep rising at this pace, if so we'd have a 4% 10-year yield by mid march. can we still find value in banks and financials >> the hard truth with financials we'll talk about another hard truth here, they are not going to out perform if the 10 year is not rising the 10 year can move up to about 2.2% by later this year. there is still a run way here but we tell people with financials we think it's a trade and we're going to see some of the valuation opportunity pulled out of the financials. probably get closer to the end of the increase in the ten-year

yield from our rate strategy team is right. and that might be the time to pull back towards the growth and tech stocks. so i wouldn't get comfortable there for a multi-year period but you think a nice trade there between now and mid year. >> always nice to have you on the program, nice and early. lori calvasina rbc capital markets. watching the small caps. always with the hard talk, we appreciate it. thank you. >> thanks for having me. >> always. now to some of this morning's top corporate headlines. pfizer expects to have new data from a covid vaccine trial on kids under the age of 5 by april. last month the company said it was changing the trial to give a third dose to a younger set of patients at least eight weeks after their last vaccination pfizer also studying a booster shot for kids age 5 to 6 -- or 5 to 11, rather, six months after their second dose. hasbro naming a new ceo, three

months after the chief passed away, chris cox will assume the job on february 25th he serves as president and coo of the company's wizards of the coast and digital gaming division. an uber rider stuck on the i-95 has been refunded his $600 bill a richmond man took an uber from dulles airport saying he did not understand the severity of the travel situation before he got in the car i hope he still tipped the driver, not the driver's fault. let's stay on the pandemic because another tough day for parents and kids in chicago. schools there remain closed for a second day as the teachers union continues to hold out against the mayor. in the meantime covid positive hospitalizations are also continuing to rise across america. however, icus do remain emptier than in previous waves the increase comes as the data

out of the labor statistics indicate burnout, people quitting their jobs at the rate of 3% in november. the highest ever quit rate for the health care sector and that number has increased since the beginning of 2021. that might be from some people rejecting the vaccine mandate. otherwise it's been a tough 20 months joining us is dr. michael daniel, an emergency room physician in los angeles i don't know whether to say good morning, or good evening i know it's 2:30 in the morning thank you, it's an incredibly important conversation you and i have been going back and forth on twitter, reading your op-eds in "the washington post" and elsewhere. what are you and your team seeing on the ground in your hospitals right now? >> good morning, thank you for having me on as you mentioned at the outset here icus are definitely not as full as they were last winter i remember last winter during

the winter surge we had in l.a. when l.a. was the epicenter of the pandemic we had an extra doc scheduled at night, either an er doc, pulmonologist or anesthesiologist who would respond to the code blues of the patients and, you know, a lot f of us still have a lot of ptsd from that and we don't want to go back to that state so right now we're certainly seeing a lot of patients admitted who may require oxygen for a few days but bloomberg, a recent article this week, only 64% of the icus are filled with covid patients relative to last year, so it's definitely an improvement. >> we had an interview with a doctor from the university of newark yesterday we asked him what percentage of your covid patients are there for covid or with covid.

doctor, i don't need to tell you, this is a big debate right now. the governor of new york state is talking about better hospital accounting how do we know who's exactly there? what levels are you seeing with covid, for covid >> yeah, brian i mean, this has been one of my pet peeves lately. the united states has been weakest on data relative to other countries, this is an area right now where we need to figure out what's going on with hospitalizations we saw in south africa, in the uk, there was a de-cucoupling of cases and covid. and we saw studies that showed that omicron was not as effective getting into lung tissue as delta and previous variants we expected to see that here starting with new york we weren't seeing that.

so that led us to start investigating and try to figure out why aren't we seeing this? one of the possible reasons, in addition to us having a bit of a delta surge earlier on in november and december that contributed to hospitalizations is that our data was not great we don't particularly differentiate between who is admitted primarily for covid or who just happens to test positive we test every admitted patient from the er using a pcr test which can be positive any time in the last 90 days and begs the questions whether we should do rapid tests in the er as well. the l.a. county hospitals last week released a let the record reflect -- week released a report that two-thirds of the patients admitted were incidental covid so we owe it to ourselves, policy makers to have a better idea of the hospitalization data, particularly who's requiring icu level care and who's just requiring a monitored

bed, for example >> it's an excellent point because what we have learned about pcr testing, which i guess they're considered the gold standard, they can stay positive for months after you're basically not infected and not spreading the virus but you have a tiny amount in your nose let me ask this, maybe it's a stupid question. if i come in with a broken knee from a skiing accident in big bear, why am i being tested for covid anyway >> yeah, it's just hospital policy across the country that we like to keep people who are positive in certain floors, different parts of the hospital, just to keep the cohorts the same that's just been the policy throughout covid but, you know, your example is an excellent one where there was a traumatic accident we know if you test positive it's probably not contributing to your hospitalization. now that being said, certainly in the er it's just a snapshot in time of the patient's

experience and if they get admitted to the hospital and during the course of that hospital visit, the admitting physicians determine that a patient's congestive heart failure or copd exacerbation was caused by the covid, those numbers can be updated. that's what we need the hospitalization data to better reflect. >> there's not much. i've been trying -- i don't know if you follow me on social media, i think you do, i've been trying to dig through the data my wife is ready to commit me, you're obsessed with this. but the headlines, hospitalizations soaring we need to know why and what for. iowa and north dakota, really the only two states that break it out tennessee said they're going to stop reporting daily cases and hospitalizations at all. they're going to go to a weekly model. let me ask you this, doctor, what can we in the media do better about reporting on this

and understanding this i'm trying and it's hard >> yeah, i think what you're do. i think, you know, especially on the social media with twitter and pointing -- i'm doing the same, is pointing out who is leading us in giving accurate hospitalization data like you mentioned, the governor of new york calling for proper accounting, the other states that you mentioned, certain health care systems and hospitals reporting data saying these patients are admitted primarily for covid and these are incidentals. ucfs has a great system where they go further and differentiate who is admitted to icu and within that, who is requiring mechanical ventilation. this has important considerations for hospital administrators as far as staffing you talked earlier in the broadcast about the burn out issue we're having if we're having less covid patients this winter requiring mechanical ventilation, that means that you don't have to worry about overstaffing

respiratory therapists who are a cri critical component of patients on the vent and icus don't go above that two patients per nurse they're supposed to have so this is data that everybody could use. >> and to your point, it's a shame that it's so decentralized. amazon knows what you and i want to buy before we even do you think that we could get this hospitalization data down to a science where we can really truly figure this out. we appreciate your on the ground reporting, appreciate more the work you do as an emergency room physician, doctor. thank you. i'll let you get some sleep. we appreciate you staying up for this late conversation thank you. >> thank you for having me >> you're very welcome dr. michael daniel, joining us live from california he has an op-ed coming out in the next day or two, check it out. who needs a house in hacken sack is that all you get for your

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$43,000 as well. a rough run for tech stocks in 2022 and a bit of a rough run for many of the cryptos. what about the so called meme stocks this week the amcs, the gamestops of the world as well. well, they have had a rough go you've seen higher rates taking their toll and their impact on these high valuation sort of gambling type of companies watch those names as well. all right. time for today's most random but interesting thing. today, let us back up the truck, not the investing truck, the moving truck united van lines is out with the movers study, highlighting where people are leaving and where they're going. as new jersey residents we are sad to say the garden state is once again number one of the places people are leaving. here are the top five out bound

states, the states with the highest percentage of people moving out versus moving in. see if you can spot a trend. here we go the top states for 2021, new jersey, 71% of its moves were out. fourth year in a row new jersey has held that, quote, title. up next, illinois. new jersey's neighbor to the north, new york. and then new york's neighbor to the northeast, connecticut and rounding out the top five, california, which people apparently can't flee fast enough notice any trends there, expe expensive, high taxes, et cetera where are people going this is actually a little surprising the top inbound state was vermont. 74% of moves inbound probably people to be fair leaving boston and other crowded areas. number two, south dakota you want isolation, you got it south carolina, west virginia and, of course, florida rounding out the top five

study does say what's probably obvious, less densely crowded areas saw more people coming in, of course, escaping crowds or people or folks are looking for a less hectic lifestyle. et on deck, the great rotation. we are seeing a transition in stocks that investors want to own, but could that change get sloppy mike santoli on that next. stick around today, business is a balancing act. you want your data to be protected and secured. and your customers want seamless and easy. with ibm, you can do both. your company can monitor threats across your clouds, address all those regulations, and still create all new experiences. trustworthy ai powered security.

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welcome back, everybody. the nasdaq suffering its worst day since last february, investors dumping many shares of technology companies that soared during the pandemic because their valuations soared as well. and the prospect of higher rates sparking perhaps a great

rotation out of super high valuations and into just value stocks more linked up to the economic recovery. look at this chart courtesy of the financial times. it shows the goldman sachs nonprofitable tech index, tracks returns of loss making companies, like snow flake, far fetch, cloud, that index is down almost 10% this year versus the 1.4% drop of the s&p 500 and goldman's reopening index which is names of companies that are tied to reopen but also make money, boeing, marriott and simon property, that is all up you know who else is up, mike santoli, joining us on "worldwide exchange. mike, we appreciate it the high valuation loss making companies have gotten crushed so called value names have gone up. can this last? >> it has lasted for a while

the unprofitable text index peaked in the early part of 20 2. it's been the down side momentum, which is more or less undoing what it did on the way up and it closely mirrors like the ark innovation fund. can it last? in general yes, they can keep repricing across stocks, bonds, different stocks for an accelerating real economy. that's what's going on, along with deferred profit taking in the largest once bullet-proof nasdaq names microsoft was down before we got the fed minutes yesterday. the vaccine stocks as well >> i don't know if if -- yeah, mike, i don't know if we have the graphic we showed it at the top of the show and it showed the nasdaq 100 point index drop. basically the periodmicrosofts u mentioned, apple, amazon, this uber concentration among these

super cap companies that if they get hit, even if 195, whatever, stocks go up and those five go down, it's hard for any index to rise if those stocks don't participate, what happens to the market >> as measured by the index, the market gets stymied then what are people complaining about when they complain about this better that the s&p topped out at 4500, instead of 4800 because the big stocks didn't perform now and maybe the average stock is doing better, industrials are up year-to-date and so are banks. when people say we think it should be a broadening market this is what it looks like we've seen these rotations multiple times in the last couple of years, it's not always one way. there's always these fits and starts >> you know, your point is well taken, mike. but you say, who gives a honey badger, right. here's why they care

if i only the s&p 500 etf, i care, because five stocks go down, 495 go up, i think what's going on >> yeah. >> if i'm in a different etf or god forbid an actual single stock investor, you're right, i don't care. >> rsp equal weighted etf outperformed year-to-date so far. that's the kind of market maybe we're more in right now. >> yeah, you get my point. >> yeah. >> jim talks about it all the time, cramer, if you own stocks -- if jim says buy these ten stocks in his investing club, do i give a whatever what the s&p 500 does, no >> last year was a great example why indexing works every individual stock in the index had more than the index did. the rotation can work, diversification can work --

>> mike repeat that. repeat that stat and fact on your big brain >> yeah. every stock in the market last year had a bigger pull back than the s&p did itself every stock in the index. >> think about that. it's really that -- maybe that index to stock decoupling. i'll save that for a segment on "squawk box. mike santoli, appreciate it, thank you for coming on, good discussion. maybe it's a stock picker's market, folks. the index goes down but your stocks go up, i hope you're happy, we're happy thanks for joining us on "worldwide exchange. we'll see you tomorrow squawk, mike and the gang, pick it up next of wellness support products for nutrition, sleep, immune systems and energy, cvs can help them happen a little less.

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good morning tech stocks, they are coming off their worst day in nearly a year

after the fed minutes revealed an increasingly hawkish looking central bank we have details straight ahead new this morning, the cd signing off on booster shots for kids age 12 to 15 amid the covid surge coming at the same time as school reopenings. it's the anniversary of the january 6th, capitol riots we'll look at the corporate political donations and where money is flowing after companies pledge to pause or reevaluate. it's thursday, january 6th, 2022 "squawk box" begins right now. good morning, everybody. welcome to "squawk box" right here on cnbc i'm becky quick along with andrew ross sorkin, and mike santoli joe is off today but we want to wish him a happy