it is 5:00 a.m. at cnbc. here are the top five at 5:00. call it april to forget. stocks coming off the worst month in years with futures pointing to a rebound today. and not holding any punches. what scott minerd thinks ahead of fed before the decision on wednesday. and warren buffett's buy the oracle of omaha loaded up on this year and more headlines from the berkshire hathaway weekend. shanghai reopens from the

covid lockdown beijing is moving the other way as the crisis continues to spiral later, despite one of the worst apes are record. one high profile investor is coming into may with notable gains. it is monday, may 2nd, 2022. you are watching "worldwide exchange" here on cnbc good morning i'm frank holland in for brian sullivan let's kickoff in our monday with u.s. stock futures they are popping after what was an ugly friday and uglier month for stocks let's break it down. friday, the dow fell nearly 1,000 points for more than 2.5% loss worse for the s&p. 3.6% loss and worse for the nasdaq shedding 537 points on 4.2%. the worst single day since

september of 2020. chalk that last one up to apple and amazon disappointing earnings and outlook. the dow is off 10% from the all-time high. nasdaq off 24% that's the right graphic let's look at bond yields. ahead of the fed policy meeting kicking off tomorrow this is up 50 basis points from the start of april the entire bond market elevated. we are watching oil. especially following those reports that factory activity in china contracted hitting demand concerns or creates concerns wti here down 2.5% crude down 2.5%. both back at the level from the beginning of april after the roller coaster ride for the month. crypto

bitcoin and ethereum up today. cryptocurrency getting a boost you have to remember, these are still down compared to the start of may bitcoin up $46,000 at the start of april now turning attention to the early trade in europe. red arrows across the screen julianna tatelbaum is standing by in the london newsroom with more more >> frank, good morning it is not just europe with red arrows, but asia markets are closed for holiday in china and hong kong and here in the uk. for the markets that are open t has been a down session. we have nikkei down .11% and australian market taking a hit. we did get down data from china. the official manufacturing pmi at the lowest level sinces february of 2020

a contraction there. the covid lookdowns are having an impact on the chinese economy. as for the economy, we have red across the board in the european markets open dax down 1%. cac down 1.765%. we have bounced offed the lows frank, it is starting off in negative territory, but investors waiting for the fed meeting this week. >> a lot of eyes on the fed meeting here julianna, thanks on top of the market action, it was a big weekend for the warren buffett faithful and berkshire hathaway investors silvana henao is here with highlights >> frank, a busy week for berkshire hathaway and warren buffett. t kicking off it has boosted the stake in chevron

making that company the fourth biggest holding in the portfolio. the oracle of omaha chevron investment was worth $25.9 billion at the end of march. up from $4.5 billion last year chevron shares are up 30% this year turning to retail investors and warren buffett's favorite robinhood. they called out the stock market buffett telling shareholders that banks make more money when people are gambling versus investing. munger says shares are unraveling because of disgusting business practices to which robinhood tells cnbc, it is tiresome seeing munger mischaracterize something he knows nothing about. unless you look, think and act

like him, you should not be an investor finally, it was the labor department and now charlie munger is calling out fidelity over allowing investors to add bitcoin to 401(k). >> when you have your own retirement account and your friendly adviser suggests you put all of your money into bitcoin, just say no >> all right frank, lots to digest. back to you. >> a crowd pleasing line there thanks, silvana. turning attention to the crisis in ukraine and nancy pelosi and other members making a surprise visit over the weekend. this as president biden is asking congress for more help to aid ukraine and its people bree jackson has more from washington >> reporter: good morning,

frank. house speaker nancy pelosi is now the highest ranking u.s. official to visit the ukrainian capital since the war started. she wanted on to show america's unflinching support for ukraine. house speaker nancy pelosi and u.s. delegation walking in the streets of kyiv with president zelenskyy. the visit under wraps for security reasons >> we are visiting you to say thank you for your fight for freedom. >> reporter: expressing gratitude for support by zelenskyy. >> thank you for the support and you have to know we will win >> reporter: attacks against ukraine are intensifying the russian defense ministry said it struck 800 targets over the weekend in 24 hours. including a hangar with weapons supplied by the west >> we need all of the assistance we can get defensive weapons and military support and financial support. also humanitarian support.

>> reporter: president biden wants congress to approve additional $33 billion for five months of aid for ukraine. republicans and democrats signaling they will back it. >> every day we don't send more weapons is a day where more people will be killed and a day where they could lose the war. >> reporter: the senate majority leader is pushing to seize a assets of russian oligarchs. >> it is timed for sanctioned russian oligarchs to be held accountable. >> the situation in ukraine. what kind of support >> reporter: speaker pelosi meeting with the poland president this morning and thanking him for the humanitarian efforts poland has the largest influx of refugees the humanitarian operation in mariupol continues today so far more than 100 civilians

have been evacuated from the steel plant. frank. >> thank you. turning attention back to the markets. friday closed out a brutal month over rising rates and inflation and under wehelming earnings for apple and amazon s&p falling 3.6% nasdaq dropping 4.2% closing at lows for the year, dow and s&p at the worst since march of 2020. the selling was more intense for the nasdaq which tumbled more than 13% in april. worse month since the financial crisis in 2008 if you want a silver lining, averages are up 80% from the pandemic lows. we have lee baker here and gina sanchez here with us

thank you for being here this morning. >> good morning. >> a lot to breakdown. we ran down the resume, if you will, of the markets for the last month nasdaq with the worst month since the financial crisis lee, you may be the minority we see the bad month ahead and expecting a rate hike. you believe there is a possible bounce for the markets ahead explain it >> absolutely. this repeated itself i think it happened a couple of months ago with march with the first rate hike. then a 10% relief rally. i think what we have here is a situation where particularly last week, things just got overcooked to the down side. yes, we will have continued volatility through the year. i think we will have a pop, assuming that the fed doesn't do anything surprising. a 50 basis point rate hike we will see relief.

>> we are expecting a 50-basis point hike is that going to hit the technology stocks again? it is a big part of the market these days. >> they are a big part of the market some of the technology stocks might still be in for a touch of trouble. amazon, which got hammered on friday, was an over-shoot. microsoft and apple are looking for the long term. it is a long-term picture and we are not getting bent out of shape. >> gina, you say the markets are searching for quality. i look at the amazon report. there was a lot of quality in there with the cloud growth. i thought business could slow down with people leaving their house. >> i agree with you. amazon is quality. if you look deeper into the

numbers, the cloud story is not going away you see tremendous growth continuing in amazon web services which is a big piece of their long-term story. we have also been expecting that the ecommerce play would unravel because the pan an ddemic as pe started to get back out into the economy would have a natural pull back. the interesting thing is no one will stop ordering amazon products that's here to stay. i think we will see amazon settle where it will settle. the market is looking for long-term quality and durability in the end, amazon will have the last laugh. >> gina, one thing with the rising interest rates situation, the market will not deal with stupid evaluations paypal for example is that stupidly high? the others will be paper money,

but we will also tap, swipe, et cetera >> some of the companies are attractive right now you know, companies, by the way, that are not necessarily as cheap as paypal. nvidia is relatively cheap to what you expect. the semiconductor market is not going away those chips are highly valuable and where they are going is important. you can tell stories of the durability, but valuation matters. we see companies become more and more attractive. i think until we get through the rate hikes and what we know is happening, that is when we know how to value things. right now, the market is looking for two things profitability and cash flow. >> i want to play a sound bite from scott minerd about

inflation. >> because the fed has been accommodating we had to adjust we will never take that back we are now permanently at a higher price level trying to think we're going to somehow reverse all of thisand go back to where he we were is t going to happen. >> lee, agree or disagree? how does that impact the markets going forward? >> i would say basically i agree. we had very unusual circumstances that come through. the fed has made certain adju adjustments. overall, i think things will settle somewhat of in terms of pricing, i basically agree with it. >> gina? >> i agree he is under estimating the impact that continue technology happens. i think we will have to figure out productivity from the work

from home environment. a lot of people say productivity is falling with people being distracted that may not work in the short-term in the long term, it will settle we are permanently higher. tech is deflationary. >> one thing we are is liking the work from home it is hard to get out of the habit. lee and gina, i appreciate it. when we come back on "worldwide exchange" more on buffett's big weekend and his take on inflation and his impact on the american companies and consumers. plus crisis in beijing a live report from the region coming up. and coming up, scott minerd and the analysis on the upcoming fed meeting. more when "worldwide exchange" returns. we search for savings for you. from coupons to lower costs options. plus, earn up to $50 extra bucks rewards

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just about empty >> reporter: yeah, that's right, frank. i don't know if you can see behind me. this place where i'm at right now is a shopping area it is usually packed with people especially this week this is the may day holiday or spring holiday people are dining out or shopping not this time. as you said, officially, beijing is not in lockdown like in shanghai we can go out of our homes restrictions have been onerous the last couple days and it is really difficult to go out and do anything. for example, a restaurant suspended all in-house dining. tourist resorts and parks are shut and shopping malls or indoor spaces now require a 48 hour negative covid test just to get in this is despite the fact that

the numbers of infections is relatively low a press conference is still ongoing. since the wave started there are 400 cases in a city of 21 million. looking forward, it looks like the restrictions are going to become more onerous. beijing described normalized testing plans that it will start after the holiday ends on thursday they are telling us residents will have to get negative covid tests that are valid for a seven-day period to get to public places such as the subway also, the authorities announced they started constructing makeshift quarantine centers in the suburbs. frank. >> wow eunice, the images you are showing. it is a serious situation. the restrictions in places like beijing and shanghai seem

counterintuitive to what the government is saying about the efforts to stabilize the chinese economy. >> reporter: absolutely. in fact, last week, we had a very high level leadership meeting where xi jinping and his top echelon of power or elite said they want to make sure that the economy is prioritized and measures in place to try to boost construction spending or ease off the internet companies and take other measures for the property sector to stabilize growth as you said, we currently have shanghai and beijing in lockdown or partial lockdown. these two cities is 21 million people and 25 million people 46 million people, the entire population of spain, not taking part at a time when there is supposed to be a lot of consumer

spending and travel. you can imagine what economic impact that could have, especially if these lockdowns drag on. >> absolutely. wow. as always, eunice, great reporting. stay healthy and safe. still on deck, key exit at disney with the feud with florida governor ron desantis. stay with us hybrid work is here. it's there. it's everywhere. but for someone to be able to work from here,

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welcome back to "worldwide exchange." market flash cathie wood's ark etf off a 30% loss last month. the biggest loss since inception in 2014. her worst fear is the stocks held private equity. she said many are selling at bargain basement prices. let's get a check of the headlines with frances rivera in new york with the latest happy monday. >> frank, good morning severe weather continues to rip across the south and kansas. an ef-3 tornado barrelled through andover friday these pictures captured before it tore through homes. the twister destroyed nearly 200 homes, but everyone survived now to the tribute to naomi

j j judd she died suddenly on saturday. ashley said she lost her mother to the disease of mental illness. they were inducted into the country music hall of fame yesterday. >> your esteem for her and regard for her really penetrated her heart and it was your affection for her that kept her going in the last years. >> the judds ran up 14 number ones over a 30-year career. history made over the weekend with the bat jackie r robinson used. it includes a letter of authenticity from his wife

rachel robinson played the first all-star game during the area he won the mvp. frank. just a few days after jackie robinson day cool frances rivera, i appreciate it. coming up on "worldwide exchange." how eequinox is jumping on the cryptocurrency train and if you haven't already, follow our podcast if you missed "worldwide exchange" or brian sullivan, you can check us out on dcpoast apps "worldwide exchange" will be right back massively complex supply chain to satisfy cravings from tokyo to toledo? so you partner with ibm consulting to bring together data and workflows so that every driver and merchandiser can serve up jalapeño, sesame, and chocolate-covered goodness

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and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™ stocks kicking off a new month with a black eye futures are pointing to rebound. hear from scott minerd with the latest on the sell off and now opportunity. and warren buffett's take on the inflation and american consumer it is all ahead on this monday, may 2nd, 2022. it's all ahead on "worldwide exchange" here on cnbc welcome back i'm frank holland in for brian sullivan brian is roeporting from the milken conference.

we will hear from him in a moment here is how your money and markets and your everything is shaping up now all eyes on the market the dow is up. looking poised to pop about 100 points you have to remember it closed down 900 lower on friday this follows major u.s. equity markets taking a beating in april with the dow and s&p with the worst month since march of 2020 and we're talking great recession. the bond markets with the fed meeting this week. the two-year is up at 2.94%. that is more than 50 basis points higher than it was back at the saturday of april we have to hit oil getting hit a little bit with the reports about contraction and chinese factories. ing both down 3% these levels here are the same level at the start of april.

a roller coaster ride for the month. to the top headlines silvana henao is here with those. good morning >> good morning. the disney executive in charge of crafting the company's response to don't say gay controversy is leaving the job he said for a number of reasons, disney is not a good fit disney shares were the worst dow performer last month falling 18%. nasdaq with the worst month since 2008 one investor came out unscathed. david einhorn brought his total 2022 return to 15% no comment from the greenlight einhorn has a long way to go after the 20% loss in 2015 and

34% loss in 2018 he still needs a gain of 12% to break even amazon is cutting paid time off for u.s. warehouse worker whose test positive for covid. any worker who tests positive will get five days of excused unpaid leave they can use sick days if needed amazon will stop sending site wide notifications in the facilities unless required by law. frank. thank you. turning attention to the milken global conference kicking off in los angeles. brian sullivan sat down with scott minerd >> very unusual time in history. when i say that, i'm not just talking about the pandemic and

ukraine, but also monetary policy and fiscal policy here we are coming off a huge fiscal stimulus. we had a huge monetary stimulus. now suddenly we're reversing course they he told us that the fed rates would be a zero until 2024 all of a sudden, we're raising rates and raise rates aggressively to fight inflation. they over did it in terms of supporting fiscal spending by buying bonds now we have done this before we did this during the second world war. now we're coming out of the phase, but unlike what we did in the second world war where we said okay, fine, we will turn off the printing press now and let's let inflation run its course and come back to neutral. we're aggressively fighting it

for instance in 1946, inflation went to 20%. by 1949, we were in deflation. they didn't tighten. they stopped printing money. >> we know what caused '46 there was a huge debate, argument, fight. it is political and charged. is there one primary cause of the inflation we're seeing today or a confluence of a number of things >> look, inflation is always and everywhere a monetary -- just print money and you get inflation. the thing here is we ran into bottlenecks. in a normal course if we hadn't had all of money printing, there would be offset. we are starting to see that right now. you know, because the fed has been so accommodating, we've had to readjust the price level to a higher level we're never going to take that back we are now permanently at a

higher price level they are trying to think we are going to reverse all had this and go back to where we were it will not happen. >> people think of you as a bond guy. you are an everything guy. you invest in equities as well you have to. global cio we have stocks down 75% from five months ago. >> right. >> what's going with equities? >> i think the stocks fall into a number of bukckets. peloton. everybody thought it was the darling of the pandemic. now we can go back out and work out in a gym, it is not needed we have home builders and huge spike in interest rates. the worst bear market in bonds on record that everybody can remember we had the massive increase in

mortgages. home builders have come down and home builders trading at six times the earnings >> are you buying >> yes the demand for houses is not going away prices are up. lumber prices are going down demand destruction we are getting exactly what should be happening if you stop printing money my concern is the fed is not just stop printing money, but slamming on the brakes and throwing the car into reverse at the time when we're starting to see demand destruction happen and starting to see prices begin to plateau and decelerate. >> what should they do then? >> i think -- >> we have a fed meeting on wednesday. everybody expect half a percent. i'll not take basis point. what should they do and more importantly, what guidance should they give us if you were running the show >> the first thing i would do is

get rid of the idea of pegging interest rates the idea they set an overnight n the 1970s that allowed inflation to spike volker came in and looked at the supply of money. what they need to do is focus on the supply of money and balance sheet. let the market determine what the right erate will be we will reduce the size of the balance sheet. without money, without the growth of money to fuel the flames, we are taking the fuel away from the fire and eventually, you know, prices will stabilize >> there are a bunch of fed members. i'm not trying to cast blame it was a lot of things we are trusting the people who helped get us into this to get us out of this >> i once said to bill dudley

that the central bank is the source of and solution to every crisis right? >> yeah. >> we got here because of the fed. now i think we're running the risk we will create another crisis. >> are we? >> we are on path. >> what kind is it a credit event what is different between now and 2008 2008, we had crazy driven. this is not then >> that's right. >> stock market is falling faster now than it did then. >> right i think paul put his finger on this because the fed is withdrawing liquidity. if you look at a number like m-2. >> monetary money supply >> it is contracted over the last three months. we had the massive run-up in crisis as we take liquidity out of the system, markets are becoming

ill-liquid you see the markets moving that is a liquidity problem. i believe muhamed is right a liquidity problem has a way of turning itself into a credit problem. a credit problem has a way of turning itself into a general financial problem. if we don't stop the course we're will >> do you think we have seen the peak of 10-year yields >> yes >> you were in a lower end camp. >> i thought 2.5 was the peak. we overshot that level. >> we could come back to it? >> easily. >> if we get another negative gdp print for the second quarter -- >> right >> -- technically, that's a recession. we can dither over that. could the fed reverse the reversal and see rates come

down >> that's what i'm most concerned about. >> and the dollar fall >> that's what i'm concerned about. the fed will see the economy stall and reverse course just like in 2018 all of a sudden, they will lose all credibility as inflation fighter. >> you can catch more from the conference throughout the day here on cnbc don't miss brian's strategy session from the event at 11:30 a.m. eastern time. to register go to cnbc.com/pro/talks. coming up, warren buffett holding court with berkshire hathaway shareholders this weekend. talking about oil to activision to everything. rebecca quick will join us from omaha for the highlights. and as we go to break. amazon sales closing six whole food stores. this is after it is announcing

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welcome back research out with notes over the weekend and morgan stanley says walmart and o'reillyattractive and rotating out of utilities. it is the best idea of buying the xlu etf. i captn't get this out warren buffett making headlines on the stocks and topics like apple to activision to the individual investor.

rebecca quick brought us the front row seat she is joining us with more. >> good morning, frank it is early monday morning we're both trying to ease into this it was a big weekend warren buffett holding court in omaha. speaking to shareholders at the berkshire hathaway first in-person meeting in years he made headlines as berkshire hathaway upped the stake in three of the holdings. he talked about apple. he mentioned apple was something he bought more of in the first quarter. he added to berkshire hathaway investment in chevron. taking that holding to $26 billion. that was up from what we had seen in the end of the first quarter from $4.5 billion. buffett reporting that berkshire hathaway holds 9.5% of activision-blizzard. he said it is a play he noticed quickly that the stock had been trading below microsoft's deal price of $95 a

share and figured they could make money. and five hours of questions, people peppered buffett. here is how he explained the damage done by rising prices he said he wrote an article in the 1970s. the last time we saw high inflation and said it swindles equity investors. >> the bonds can swindle the equity investor. inflation, i should say, swindles the bond investor, too. and it swindles the person who keeps cash under the mattress. it swindles everybody. the problem is if you have a business that doesn't take any capital, let's just say, the dollar depreapprdepreciates 90%.

most businesses takes capital. >> we will have more from buffett and munger on "squawk box. frank, a big weekend a lot of news. >> including berkshire hathaway upping the stake in apple. the stock closed down 9% last month. we have comments of investing if tech or concerns over what they saw last week? >> you know, buffett has always been somebody who says when prices are down, you should feel good when the stock is down. you can buy more he did make the comments and slipped it in over the weekend he mentioned almost in passing that their stake in apple had gone up. i had it to go back through the transcript apple bought more shares and they bought more of a stake and it went up i saw him here yesterday after

the meeting was over i got more comment on it we will talk about that coming up frank, this is the largest holding. berkshire hathaway owns more than $150 billion in apple shares it makes up more than 40% of overall portfolio. it is such a big stake and berkshire hathaway is the biggest individual shareholder in apple that tim cook made his way out here he was on the floor and listened through the meeting with the question and answer period he is a bit of a star here in omaha. he made his way over to the side where the shareholders were and took selfies with them before the meeting started. it was a bum rush for everybody who could get a selfie with tim cook it is a big stake for them >> very interesting weekend. rebecca quick, looking forward to seeing more on "squawk box. thanks coming up on "worldwide exchange." season trading pro jon najarian

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welcome back here are things investors are watching on the first of may april ism manufacturing and march construction spending. earnings season continues. among names reporting after the closing bell clorox and expedia and mgm and ballots will be counted in the amazon warehouse union election today this follows the vote after the filming center in staten island where workers cast ballots in favor of the union.

let's get back into the market and some looking for reaction after the selling in april. jon najarian of rebellion is joining us jon, thanks for being here >> thanks, frank they have been buying and purchasing puts all the way down in the spy, which is the s&p 500 mini contract as well as the iwm. they have been buying, buying, buying we haven't frankly seen volumes like that in a really long time. especially consistent ly, frank. those are big purchases in the iwm. >> i was looking at it

needless to say, bearish signals from people in the marketplaces bets against the market. the vix is spiking is there a direct relation with the volatility tovestors want te bets >> you want the vix to break a little bit like a fever when it breaks. that would be the amount of purchases they are making on puts which is the down side bet or protective measure that people put in place. if you saw the vix break back down into the mid-20s, frank, you would see rapid giving up of some of the puts and probably more speculation that maybe the market bounces at least so far we haven't seen very much of that. >> jon, i'll be honest we have been talking on and off for the last year.

i can't remember the last time you said put there are any sectors or particular stocks where investors feel confident >> there has been upside speculation. you mentioned tim cook with becky moments ago with apple and microsoft. even those stocks are carried lower because of the market mal malaise. i would say the crude oil contract is down today and that is energy with valero and marathon and exploration areas like the xop those have seen very robust speculation in calls betting the prices go higher rather than lower. >> before we let you go, we have to talk about the broader market f fomo trade is way over people are looking for quality

amazon seemed like quality cloud marketing is up. we expect logistics to take a down turn as the pandemic breaks where is amazon? >> i think quality for some investors like warren buffett, for instance, the pe is still too high as good as the company does and as great as it is top of mind with consumers, it is just not a company that will attract that kind of investor it could attract a host of other investors, frank i would think after the week it had last week, amazon will be on some people's radar this week. >> jon najarian, i appreciate the wake up and insight. >> thank you that does it for us on "worldwide exchange. the dow could open 100 points

higher it is still early. dow closed down 900 points on friday "squawk box wi ctillonnue to break it down coming up next thanks for being here. just ask your cvs pharmacist. we search for savings for you. from coupons to lower costs options. plus, earn up to $50 extra bucks rewards each year just for filling at cvs pharmacy.

good morning fallout from the april to forget nasdaq plunged 4% friday finishing the month of april lower by 13% we'll show you what is moving in the pre-market. wisdom from the oracle we will show you what we learned from warren buffett over the weekend. live at the berkshire hathaway annual meeting elon musk whtweeting out market advice. buy things you like the products

of okay monday, may 2nd, 2022. "squawk box" begins right now. good morning welcome back to "squawk box" i'm andrew ross sorkin along with joe kernen and rebecca quick is in omaha. it was nice to see you, becky. we will get to all of it in a minute there was so much action we want to check on the markets quickly. u.s. equity futures setting up nicely in the green. 145 points higher. nasdaq up 58 points. s&p up 17 points i want to show you the brutal month of april as we begin this month. dow falling nearly