it is 5:00 a.m. at cnbc global headquarters and here is your top five at 5:00. stocks shrugging off white hot inflation data as technology shares also shakeoff rising bond yields for a third straight day of gains. president biden's pick for the fed's number two spot heading to the hill this morning to try to win support for her confirmation with tough talk on skyrocketing prices. speaking of the fed, another central bank official out with new comments on those looming rate hikes and the potential for more of them

overseas, british prime minister boris johnson fighting for his political life as he faces calls to step down for breaking covid rules live in london with the latest there. looking to write off those office supplies from your work from home supplies not so fast says the irs can't maybe take all those deductions it's thursday, january 13th, you're watching "worldwide exchange" here on cnbc good morning, i am dominic chu in for brian sullivan today. here is how your money and the global markets are setting their day up futures right now are starting to show some signs of life, but they are still relatively stable right now. the dow is implied lower by roughly 7 points overall, the s&p just about flat on the session and nasdaq implied higher by one. just about as even as it gets right now, so yes, stable.

stocks are shaking off inflation worries from yesterday all closing higher the nasdaq notching the third straight day of gains. the december price index showing an increase of 7%, the biggest jump since 1982. looking at the treasury side of things, you would think there would be some movement in yields given the red hot inflation numbers but you think the market was expecting it the ten year ticking slightly higher today, 1.754% two year at .92% turning to the energy markets, oil prices in the green. u.s. benchmark prices $82.82 up about .25%. world ice brent futures up about .3% as well. we want to look at the price of natural gas, shocking moves these days

nat gat surging 14% yesterday as colder temperatures sweep across many parts of the u.s. you can see it down about 2.5%, but just over the course of the last couple of days here a huge move higher in the natural gas prices us in the northeast can feel it. looking at the cryptocurrency as well bitcoin a key focus, just a hair higher, 43,932 so just below 44,000 you may recall over the last week during the bitcoin selloff we got to around 39,750 that area of support had to go back to august so you have to see whether or not these prices can hold here. ethereum down about .5%. those assets getting a boost on the back of the inflation data let's see if that prevails in the overall trade. let's go worldwide julianna tatelbaum is live in

the london news room looking at the trade in europe and the growing fight over boris johnson's political future good morning >> good morning. let's kickoff with markets we're off to a fairly muted start here in europe after a strong trading day yesterday which saw the main benchmark in europe rally about .6% this morning a little bit of a pull back, the cac 40 in france down about .3% red on the board for the german and swiss market and spanish and italian equities trading higher and the ftse 100 trading around the flat line, the ftse 100 is in focus alongside sterling, because boris johnson is front and center many saying his days are numbered the prime minister is facing lawmakers' calls to resign after he admitted attending a downey street drinks part in the height of the pandemic and with the

country under strict lockdown measures leaders of all major parties calling on the leader to step down but the prime minister insists they wait for the results of the inquiry. we have the prime minister asking members of his party, the public the withhold judgment until the investigation is concluded. but members of his own party saying the party is over dom? >> julianna tatelbaum live in london with the latest from europe thank you very much. to this morning's other top headlines, including new troubles for another chinese property developer good morning, silvana. >> good morning. shares of holdings plummeted in trading overnight after it revealed it's trying to raise half a billion dollars in a bid

to repay short term loans. that comes after china's third largest developer said it resolved a dispute that triggered a drop in bonds. and also reports of sunac maybe faltering on bonds previous. a private equity firm that owns 10% of crown sweetening the offer for a third time to $6.5 billion according to reports, they hoped to sign off on a deal by the end of this month. back here in the u.s., lael brainard is set to go before the committee hearing this morning for her confirmation hearing she will pledge to lawmakers to help the fed fight the rapid rise in inflation while supporting the economic

recovery and according to axios, some senate republicans have suggested they're open to voting for her to serve as the fed's number two something to watch, dom. >> thank you for the headlines let's stick with the fed and inflation. your next guest said fed-winds have swept across the market, but a rate hike cycle does not necessarily mean we're headed into a bear market or slow down in economic growth craig johnson is the chief market technician at piper sandler. craig, we probably look at this process for raising interest rates and think to ourselves this is a way to tap the brakes on the economy and slow things down, that's why they're doing it, but why does it not necessarily lead to a down market >> good morning, dom the bottom line is it takes time for the rate increases to actually start to slow down the economy. if you look back at the last

couple of rate cycles, you had one from 2015 to 2019 and that time frame, you saw the s&p 500 back in that particular cycle up 46%, you saw growth up 62% on the rlg, and the rlv was up 31% dom. so it takes time so it wasn't until you get the first cut when the market started to selloff if you go back one cycle before that and you look at the cycle from 2004 to 2007, you saw the s&p up 34%, you saw growth up 29% and value up 43. so the key thing going forward from here, dom, if rates are going to keep moving up for a little bit, should investors be leaning toward value or growth that's the number one question that i'm getting, i think right now we have to come back and take a hard look back at ten-year bond yields i think a double bottom is made but i don't think rates will move above 175, 2%, in 2022

because as a country we can't afford to have that happen and the fed is not going to let that happen >> let's go back to that question, the number one that you're getting from clients, growth versus value? what does the set up look like you look at last year and say the best two performing sectors, energy first, first and foremost, but then it was real estate and financials. those scream to me, value, cyclical, oriented type sectors and stocks is that the same trend that continues? energy is off to a roaring start, up 14% in a short time year-to-date >> you know, dom, just because the calendar has changed doesn't mean the trend has changed when i go through and start looking at energy, financials, and basic materials and these areas, they still look very, very constructive. i've been recommending to clients to stay overweight, large cap tech, energy and also the financial sector and i don't see that changing.

what i suspect could happen, dom, we could see for a while until rates move up to that 2% huge overhead resistance level is the value trade continues to work for a while perhaps that's the first half of the year when you hit the 2% ceiling and rates stabilize and maybe come down, you probably get a rebound back toward the growth stocks for now i would stay leaning towards those value stocks at this point in time energy specifically i see great charts and setups. for instance i shared with everyone the chart of exxon mobile, looks like a nice bottom is being made and looks like we have 30 plus percent upside to the next technical objective. >> big oil is something folks watch because it's the most brand recognized way to play the market you mentioned the large cap, mega cap technology trade. when we talk about rate hikes the last couple of years, we

talked about possible interest rate increases we talked about compressions and multiples, valuations coming in for growth oriented tech names. why do you still like big tech, even though we know the fed is going to raise rates, kind of cut its balance sheet off, do that kind of stuff, why do you want to be in places that have seen in the past a selloff due to rising rates? >> we have to break up tech a little bit here between some of these companies, in specifically the software names, where they've been trading at 5, 10, 30, 40 times revenue and i'm not talking about wanting to own some of those names at this point in time. i think where you want to be is companies like microsoft you want to be looking at companies like adobe these kind of companies that are going to allow companies to become even more productive by adopting more of the technology out there at this point in time. even amazon at this point in time with their web cloud

business and those kind of things are going to allow companies to be more productive to help try to offset some of these rising inflationary pressures you're seeing. the companies trading at 20, 30, 40 times revenue, dom, those are the ones that have been hit the most they don't look like they're fully washed out quite yet but those are the areas i'm trying to avoid you want to remain with the high productivity area drivers. and that's where i think some of the large cap teches come into play and also in the semiconductor space too. if you look at stocks like wolfspeed, another constructive looking chart and a big driver in the semiconductor part of tech still looks very, very strong. >> tech and energy, big calls from craig johnson, thank you very much. we appreciate it. >> thank you. when we come back, airlines gearing up for earnings season to takeoff we talk to one analyst on whether omicron may ground those

results. plus shares of coin base on the move over a new emermerger and later on, a fine line drawn in the sand over vaccines. a busy hour ilstl ahead when "worldwide exchange" returns after this break we're getting destroyed out there. we need a plan! i have a plan... right now at t-mobile customers on magenta max can get the new iphone 13 and t-mobile will pay for it! upgrade to the iphone 13 on us. today, your customers want it all. you have to deal with higher expectations and you have to lower wait times. with ibm, you can do both. your business can unify apps and data across your clouds.

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it's earnings season, the

major airlines begin reporting their results today. with delta out before the opening bell american and united, as you can see, follow next week after american's preannouncement yesterday and southwest is set to report the week after that. investors are keeping an eye on guidance as well as how the recent slate of omicron related cancellations can impact both supply and demand for the big airlines over 360 -- 30,600 flights have been cancelled since christmas eve. joining us is arasheila kaila this earnings season the expectations have to be low. we know how bad things are right now and seems like people i know aren't traveling that much anyway what are you seeing in the data you're analyzing right now.

>> thank you for having me so early. what we saw at the end of the quarter was cancellations ticking up because of a supply issue, labor shortages, issues the last 15 days of the airlines cancellations were around 5% versus a 1% normal rate. but what we've seen the last two weeks is a demand issue starting to tick in, tsa numbers are down 25% versus 2019 levels, a big change from levels we saw at the start of november. we're starting to see demand kick in and a little bit of fear we recently conducted a survey of u.s. consumers and 40% said their travel plans were disturbed because of the new variant. but also what you're seeing in january and the falloff in the tsa numbers is really corporate, even the large financial firms are pulling back and you're not seeing corporate hit the road which is a prime time in january to come in so a bit of a supply issue in

december that's now changed to demand issueand we're yet to see when that will pick up the setting is not all that great for airlines headed into the earnings season. >> you mentioned the survey, i will offer right now my family had made plans to go to florida just over this long weekend coming up. we cancelled them, about two or three weeks ago, because -- not because of fear of covid so much but fear of the covid logistics after we got back, kids having to quarantine, do all that stuff. how long is that going to last is there anything in your survey data that suggests people want to travel in the future, how many trips do they plan to take? what exactly are consumers saying like me >> the good news is we found that consumers ekxpect to take 4 4.6 trips in 2022. so that confirms a lot whether you're playing airlines or

commercial airspace manufacturers is that travel is set to return to 2019 levels sometime late this year can into 2023 domestically. but international is worse, 36% below 2019 levels in terms of what consumers expect to travel in 2022 relative to 2019 levels. and a lot of that is because of the logistics. so florida is great because you don't have to test to come back but if you're stuck because of a quarantine for two weeks, it no longer turns into a vacation you wanted that's what we're hearing. domestic is m coming back, international is going to be prolonged. >> before we let you go, let's put the rubber meets the road question out there if expectations are really, really depressed do you want to tilt toward your investments with airlines with international exposure, like a united or delta? what's the top pick there? >> we have a very cautious view

on the airlines overline delta is the only buy rating overall because of their international exposure 50% of the international is geared towards transatlantic versus 40% for the other carriers we think transatlantic is the first quarter to open up when the november 8th regulations were removed between travel back and forth within the u.s. and europe we saw that already open up. that's why we like delta and second it's for its corporate play, higher corporate exposure to small, medium businesses which have returned and i'm sure they'll tell us more about that today versus the large corporates that are holding back that's the second reason we like delta and we like it for pricing. delta is seeming to offer more for the consumer and could potentially garner more pricing power in a market that's going to see 25% higher capacity so it

could see pricing risks in this environment. >> sheila with the update on the friendly and hopefully friendlier skies in the coming months thank you we appreciate it, sheila. >> thanks. don't miss a first on cnbc interview with delta's ceo ed bastian later on this morning, live in the 7:00 a.m. eastern hour on "squawk box. still to come, private equity going public. what its entry into the public markets could signal about the overall ip landscape we'll have more on that in just a moment en it. trust me, after 15 walks... gets a little old. ugh

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welcome back to "worldwide exchange." time now for your big money movers, three stock stories of the morning. stock one is taiwan semiconductor, profits rising 16% thanks to a huge global demand for computer chips. tmc plans to spend a third more than last year to make advanced chips. it expects to lift capital spending to between 40 and $44 billion. stock number two is kb home, sales rose 40%, that's roughly in line with analysts estimates. the company said it had to meet healthy demand for housing amid extremely challenging conditions, working through labor shortages, supply change disruptions and municipal delays

as well. stock three is coin base it struck a deal to buy a chicago exchange it will give clients to crypto futures on a regulated platform. it says shares of crypto derivatives was just shy of $3 billion frances rivera is in new york with the other latest headlines. >> president biden is setting medical teams to six states where hospitals are overwhelmed by covid-19. he is expected to announce their deployment to new york, new jersey, rhode island, ohio, michigan and new mexico and he's expected to meet with democrats to look at voting rights legislation. chuck schumer said he will force a procedural vote on two separate bills saying, quote,

once the bills are filibusters we need to change the senate rules as has been done many times before mitch mcconnell opposes the bills and says states should set their own election rules this morning the music world is mourning ronnie specter who died after a brief battle with cancer she was 78 coachella is rocking back this year after covid cancellations in 2020 and 2021, the festival is back with a star-studded lineup, harry styles, billie eilish are the big names headlining the festival others will help celebrate the comeback in california this april. so a lot of fans keeping fingers crossed that's going to stay on and not be cancelled like so many things, just like that trip you were planning. >> you read my mind. i said fingers crossed because

you think about all of these events, my wife and mother-in-law had plans to go to stagecoach, that got cancelled so yes, fingers crossed. >> tight >> thank you for that. still on deck, another day, another fed talking head with the central bank's fiscal policy road map what one chief is saying about the rate hikes that could be ahead. if you haven't done so already please follow our podcast. check us out on apple, spotify or your dcpoast app of choice. "worldwide exchange" in audio format we'll be right back. yeah. that's why smiledirectclub has their lifetime smile guarantee™. get a doctor-directed smile you love, guaranteed for life. your life. choose smile. choose direct. ♪ smiledirectclub ♪

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stocks looking to keep the recent momentum going after brushing off that white hot inflation data with beaten down tech stocks continuing to lead the charge rising prices set to be a key topic of conversation as president biden's pick to be the fed's number two makes her case for the job. we'll preview that big congressional hearing. and a key china critic in the senate facing crscrutiny in his investments in the country's ecommerce giants it's thursday, january 13th, you're watching "worldwide exchange" here on cnbc welcome back to the show i am dominic chu in for brian sullivan today on "worldwide exchange."

here's how your money and investments are looking as we are halfway through the five a.m. eastern time hour futures are showing signs of life but modest ones the dow jones implied higher by 13 points, s&p higher by 3 and nasdaq higher by 22. it is green, modest but still the bulls might take it as a victory. stocks shaking off inflation worries yesterday with all three closing higher the nasdaq notching the third straight day of gains. the december consumer index reading showing a rise of 7% the biggest jump since 1982. over the course of the last year, no surprise the u.s. markets have outperformed just about everyone out there, including the emerging markets look at that line with the orange over the last year for emerging markets down about 7% that's an etf that tracks them the spydr is up over that time

but over the course of this period, we have seen outperformance in the emerging market stocks so whether or not that gap closes is something the traders are watching next, check out what's happening with the best performing sectors of the s&p 500 over the last 12 months looking specifically at energy, real estate and financials we talked about them in the past half hour with craig johnson from piper sandler but whether or not there's still momentum in the trade remains to be seen. but traders have bid up energy to be the best performing sector again in the first two weeks of this year in the s&p 500 looking at shares of two media companies that have seen a roller coaster ride the past 12 months, discovery and viacom generally down the last year but two of the best performing stocks over the course of the last couple of weeks discovery and viacom, it remains

to be seen whether the media stocks that have been underperforming as of late might find a catch up trade here in 2022 this morning's top stories, silvana is back with them now. black stone is reportedly telling the u.s. staff they need to get a covid booster shot to work in the company's offices. according to bloomberg in addition to booster mandate, the company plans to test workers in the office, on site three times a week blackstone recently pushed back the return to the office from the t middle of this month to the end as wall street grapples with an up tick in cases senator tommy tuberville is facing questions over his recent stock trades the republican from alabama has bought and sold stocks and options in alibaba since last summer he's a staunch critic of china, made three purchases of shares

worth $300,000 in mid 2020 he ordered his financial advisers to sell off a small stake in alibaba after becoming aware it was in his portfolio. the philadelphia fed president said he would support more than three interest rate hikes this year speaking with the financial times he said he currently has three hikes slated as early as march but would be open to more if inflation continues to climb. harker is the latest official to throw rate behind rate increases in many march, dom. >> thank you for that. sticking with the fed and one of this morning's other top stories, the senate banking committee holding a hybrid nomination hearing for lael brainard to be the next vice chairman in remarks for the hearing, lael brainard has cited strong

economic growth. she's served since 2014, has never decscented on a monetary policy position and has been cautious of raising rates too quickly. today's hearing comes as the latest read on inflation hits the highest level since 1982 joining me now is the managing director from the td securities. good morning to you. i wonder, from a rate strategy standpoint, this has got to be, this coming year, the most telegraphed set of interest rate hikes we've seen in quite some time is there anything that can catch the markets offguard knowing that the fed is predominantly tilted towards normalizing policy >> the fed has been communicating they want to start to normalize i think where the uncertainty

comes in is the start, the end point. so the market has been volatile because the fed has come from this is transitory, be gradual remember just a couple of months ago the fed was saying tapering and tightening are two different policies we expect them to end tapering in march and turn around and hike right away. i think the sense of urgency is what's going to create volatility we'll look at the long end of the curve and look for higher long end reads i'm a little nervous about that ambu balance sheet runoff, it's a large balance sheet, a lot is going to run off the u.s. treasury will have to issue more treasuries. if the ten year gets above 2%, 2.5%, i think it starts to impact so i watch the long end. it is telegraphed but it's

really the pace that could shake markets here >> so let's talk about the pace then first of all, i should say part one of my question is how many hikes do you think this year i think three is probably the consensus, that's what most people are telling me right now, some people say four, some others say maybe two where do you stand, and how fast is too fast? >> we have three hikes and balance sheet runoff i want to stress on balance sheet runoff as being a strong form of tightening the fed has they have that tool. we think they'll use it near year end and it will substitute for a hike i think the question is next year, we expect four, the market is pricing in three, what about the year after it's the end point of the tightening cycle that needs to get priced in. all the ultimately it's going to depend on the economy omicron can have a short-term impact on service demand but later this year when the fiscal

support starts to step away and real incomes are not growing that much. you talked about high inflation. we think the consumer spending component is going to slow down, that's why i think three is enough you talk about four, balance sheet runoff, long end rates rising i think it's a headwind for the consumer, apart from fiscal drag. so i would argue four or higher is too much unless we get another form of support from the consumer but i don't think we get much more fiscal support >> you look at the scenario you just laid out, what does that mean for the long end rates? specially the ten year because so many things are benchmarked off the ten year what exactly can we expect when you say it's going to rise, by how much are we talking 2%, 2.5%, 3%? where does it end? >> we're forecasting 2.25 by year end still a good 50 bases point

increase i think that we can still handle we get up to 2.5, 3% remember 2018, the ten year got to 3% and that marked the end of the hiking cycle i think anything above 2.25, 2.5 becomes danger zone. i would look deeper at real rates. is the rise in long-end rates largely inflation expectations led or real rates led. so the entire move is real rate. it starts to have more of an impact on financial conditions on the dollar. notice the dollar has been very -- hasn't risen as much because it hasn't been a real rate move. but if the fed starts acting and i think we'll be watching governor brainard if she has that sense of urgency as well, real rates move it has more of an impact on the economy as well as financial conditions. >> we have seen slowing momentum in the u.s. dollar trading rate.

thank you. shares of tpg are set to begin trading today. the firm pricing the i.p.o. at $29.50 per share its forray into the public markets marks the test for the i.p.o. markets in this young 2022 i remember when it was the texas pacific group, leslie. >> they do still have the dual headquarters in fort worth and san francisco. yeah, now we talk about it as tpg, finally set to make the debut today after toying with the idea of going public for years now. the alternative asset manager priced in the middle of the range, generating a billion dollars for the company. the price values tpg at more than $9 billion. this is one to watch, it's the first big deal of the year, the first large alternative asset manager to go public through a traditional i.p.o. manager in eight years and it will be a

test for the i.p.o. markets in general which suffered toward the end of 2021 and continues today. just works was supposed to go public today but postponed the deal over the difficult market out there and a basket of recent i.p.o.s is down 8% in 2022 after trading in the red last year but valuations for publically traded private equity firms are way up, notching their best year ever last year black stone doubled in 2021, kkr carlyle, airies, each returning more than 70% however they have each traded lower in 2022 over concerns how a rising interest rate environment will impact their businesses tpg was founded in 1992 by david bonderman and jim coulter, still active in the firm, based in fort worth and san francisco, and they've grown to manager more than $100 billion in assets with $33 billion in capital on

hand to deploy the bulk is on traditional oriented buyouts and impacting portfolio as well. tpg will be listed on the nasdaq and will trade under the symbol, no surprise, tpb. >> always a concern for private equity because they borrow money to take some of these companies private and public and everything else. what are some of the risks that tpg has laid out as they go public with this we know that every per speck tis has them, but is there anything specific to this story that's worthy of note >> what's interesting they have a sizable asia business. they note the difficulties and the risk factors of doing business in china because they're a private equity firm they note that doing deals, all of these things are important to their business and no way to know they'll be able to find deals and exit

deals as well as be able to grow aum. the publically traded peers have been able to grow aum in the time many have ventured into other areas like credit, insurance, real estate while being public and under the pressure to grow aum. so it'll be interesting to see if tpg does the same thing. >> everyone is trying to seek alpha these days thank you for that update. i'm sure we'll see you all day with updates on the i.p.o. >> yes. coming up, why you might want to think twice before writing off those work from home expenses here's a hint. the irs is watching. they're always watching. death and taxes, that whole thing. "worldwide exchange" is back after this ♪ i see them bloom ♪ ♪ for me and you ♪ ♪ and i think to myself ♪ ♪ what a wonderful world ♪ a rich life is about more than just money.

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welcome back if you're one of the millions of americans who have spent the last nearly two years now working from home, you've probably spent a lot of money getting yourself resituated to be able to do your job remotely. if you had been hoping to write off those expenditures on your taxes, the irs is saying not so fast robert frank joins us with more on that. robert you're one of those people who's been working from home for a little bit more than a year and a half now at this stage. so are you going to be writing some of that stuff off >> reporter: dom, i can't. and i'll explain why millions of american employees, as you said, have been using their home as their office but not according to the irs

taxpayers who work for a company, those who collect their w-2 paychecks cannot deduct any home office or any home office expenses because the 2017 tax law suspended the deduction until at least 2025 for all employees. now the self-employed workers, say business owners or partnerships they're more fortunate. they can deduct their home office and the benefits can be substantial. there are two rules for the deduction, the taxpayer needs to use a portion of the home exclusively for business and the home must be the taxpayers principle place of business. if your office is one tenth of your home size and you pay $20,000 a year for your mortgage you can write off $2,000 a year. plus one tenth of the home's maintenance cost, repairs, property taxes, insurance, all that stuff during the year you can even claim the home

office deduction for part of the year if you left your employee job in june and started your home business you can claim your home office for six months. this is a dual class system for home office, self-employed you can write it off, if you're employed you can't. >> we know so many facets of not just our personal but business lives the pandemic has created multiple classes of people, employees, systems, everything else why does the irs treat self-employed workers different than other workers that are maybe similar in nature but completely different in the irs's eyes >> reporter: the tax code has been structured to prefer the self-employed and business owners because presumably they're taking the risk. the 2017 tax cuts before that, even the employed were able to take the home office deduction if they never set foot in their corporate office, if they worked from home for the entire year, they could use the home office

deduction. 2017 tax cuts changed that and the rational was you were increasing the standard deduction to $24,000, so most people didn't need that extra deduction. but then the pandemic hit and everything changed i'm surprised that not a single congress person in washington has proposed to bring it back, at least temporarily during the pandemic for teachers, for people who need to work from home during at least part of the year but play a critical role in society. i'm just surprised no one has come up in congress and said at least let's change it for a year or two. >> you heard it, if any of our congress people are up and watching "worldwide exchange" right now, let's talk about people and tax deductions and work from home, you heard it from robert frank. wall street gearing up for big banks to roll out quarterly

results. jon najarian rolls out which firms are seeing plenty of options action ahead of the numbers. and follow our podcast, check us orwi ehapple or spotify. "wlddexcnge" audio format, will be right back to be on autopilot. and to be prepared if anything changes. with ibm, you can do both. your business can bring data together across your clouds, from suppliers to shippers, to the factory floor. so whatever comes your way, the wheels keep moving. seamlessly modernizing your operations, that's why so many businesses work with ibm.

there it is, times square in new york city, in manhattan, midtown, not too far from here just below there the nasdaq market site is where our friends from "squawk box" are getting ready to go live on air. here in engelwood, new jersey, futures indicating what could be a slight positive opening tilt at the bell. the dow higher by 15, nasdaq higher by 11 and the s&p by 2. the ten year note yield is holding steady although it's ticking slightly higher.

175 bases points, 1.75%, the benchmark two year treasury note yield is just a hair below 92 bases points or 0.29%. and the 30 year 2.09% right now. so seeing green across the entirety of the curve right now. very much in focus today given the fed in congress, the congressional hearings here. let's look at some of those sectors that have been leading the way the course of the last year we talked about energy, real estate, financials, very muc the positive momentum trade there. and that white line is the one i want you to kind of focus on there. just in that right-hand side of the screen, we are up 14% for the energy sector in just the first couple of weeks of 2022. investors are turning their attention towards earning season with financials in focus as several big banks prepare to

report their results in the days ahead. for more let's bring in jon najarian, a cnbc contributor great to have you, let's talk about what you're seeing where's the options action in the big bank trade. >> thank you, dom. just walked off the stage here in san moritz for a crypto talk, i appreciate your patience and your producer's patience here's what's going on, dom. yesterday we saw big, fast trades hit in wells fargo. we both know 24 hours from now we'll be getting earnings from wells fargo and several of the big banks. to see the upgrades and then see the very fast 28,000 options trade in wells fargo, that to me dom said that people are still betting that rates hold here at 172 or so, and/or keep pushing higher, but they do not go down

in the short term or they would be betting against banks like wells fargo. but they're doing the opposite they're very bullish into the earnings tomorrow and in the financial space we've seen the xlf, as well as wfc and several other of the financial stocks just ripping >> so john, i wonder, from your side of things what do you think is the more compelling trade here, given the fact we've seen a transparent fed so to speak on a relative basis with regard to their intention to raising rates. are you looking for more traditional lenders, retail banks, focused on the investment banks, security options, where is the positivity right now? >> i think you always want to be aware, as you always have been, dom, that you don't have to throw out paperwork once you have a margin account. you can borrow money from your broker immediately it's not like a mortgage where it goes through an approval process before you can borrow or

even some commercial lines of credit and things like that. a margin account at morgan stanley, at goldman sachs, means that you're borrowing money immediately once you have been approved and most investors are, you can borrow at least two to one on your cash which means that those are the fastest to get the benefit banks take a little longer to get that bank america loan approved and so forth. so i would go with the broker dealers first, dom, but nonetheless iam long several o those, i would focus on broker dealers followed by traditional finance. >> just a couple of seconds left here, jon najarian, what do you expect from the fed today? anything you're listening for in particular >> it's going to have to be hawkish. my catchphrase now, dom, is they have no choice but to talk like a hawk they're going to have to do that because of the 7% year over year

numbers and because of the inflationary pressure. so it's going to continue. the talk is going to continue. we'll have to see now if they walk that walk when we get to the next meeting. >> jon najarian thank you very much safe travels from san motzri. >> thank you. that does it for us on "worldwide exchange. "squawk box" is coming up next this is elodia. she's a recording artist. 1 of 10 million people that comcast has connected to affordable internet in the last 10 years. and this is emmanuel, a future recording artist, and one of the millions of students we're connecting

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good morning, stocks shrugging off some white hot inflation data and tech stocks shaking off rising bond yields for a third straight day of gains. we'll show you what's moving right now. president biden's pick for fed vice chair set for a confirmation hearing today plus an update on the

airlines one thing after another. quarterly results due from delta this hour. we'll get the latest on the travel nightmare atairports from the head of the flight attendant's union, it's thursday, january 13th, 2022 and "squawk box" begins right now. >> good morning, everybody welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. and yesterday the markets were up just a little bit. but we'll take it given what we've seen so far this year. the dow was up about .1% the s&p and nasdaq each up by about .25% dow futures indicated up by 25 points, s&p up by 3.5, and the nasdaq indicated up by about 12 points