it is 5 a.m. here at cnbc and here is your top five at 5 stocks looking to kick off a new month of trading in the green after a wild may that saw stocks go basically nowhere fast. call it a white house m mia culpa as janet yellen looks to set things straight the biden powell face to face. amazon under pressure again today as government regulatory watchdogs look to step up their antitrust probe into the world's largest online retailer.

plus, after dumping stock at record levels last year, insiders are buying it again with some doing it at the fastest pace in' decade. which sectors and stocks are getting love. another record for the price of gasoline and for diesel with the surging prices at the pump discouraging americans getting out on the open road are they great question wednesday, june 1st, 2022. you're watching "worldwide exchange" right here on cnbc good morning it is wednesday on this holiday shortened week i'm frank holland in for brian sullivan stock futures right now. a bit mixed. you're seeing the dow looks like at this point, very early, could open 100 points higher

the dow, s&p ended with little change nasdaq coming off with more than 2% decline on a sector basis, energy coming off another winning month. you see over here energy up 15%. the wholesale gasoline price up. real estate, the laggard, down more than 5% consumer staples down a bit. back to energy, fifth positive month in a row as we mentioned of course, we have to keep track of all of the other things this morning. speaking of energy digesting news out of opec and the eu when it comes to the future of russian gas. oil up six months in a row this morning seeing wti 116 a barrel that's $2 more than it was a month ago. brent crude up a percent and a half this morning as well. checking the bond market yields, were ticking slightly

higher ticking slightly higher right now. the 10-year noted 2.866. the fed meeting coming up and interest rate hikes, they are expected cr crypto winter. maybe this was crypto spring it's up a bit. bitcoin still 54% off of the recent highs solana, 80% off the highs. juliann juliana tatelbaum. >> some green on the board the dax is up a bit. the cac carant up.

we're down .2 of a percent with the ftse 100 we got some discouraging data this morning out of germany. retail sales disappointing relative to expectation. a lot of focus on the inflation yesterday and the day before all showing inflation in the eurozone has surprised to the up side a lot of focus on what the ecb will do next building momentum on raising rates on july and september meeting. from a sector perspective, autos outperforming. basic resources bearing the bankrupt one stock surging, doc martin. delivered better than expected earnings numbers and up beat guidance for the rest of the year on the down side though, there is a stock in the financial sector that is suffering this morning, that is dws

the ceo of the german asset management dws resigned hours after police raided the offices of both dws and its majority owner deutsche bank amid green washing allegations. dws down 6.7%. >> joanna, thanks for the latest from europe. let's get to some of the top corporate stories. bertha combs is here good morning >> reporter: good morning, frank. the supreme court yesterday blocking a controversial texas social media law from taking effect this after the tech industry and other opponents warned that it could allow for hateful content and speech to run rampant online the law prohibits online platforms from moderating or removing content based on viewpoint and stems from a charge on the right that major

california-based companies disproportionately censure conservative voices. atlanta fed president raphael bostic clarifying comments on a september put and a fed pause. it comments to market watch. bostic said his suggestion the market take a pause should not be construed as a fed put or belief that the central bank would come to the rescue of markets. and the u.s. federal trade commission under the stewardship of its new chair, lena khan, is reportedly revamping its antitrust probe into amazon. the revamp includes a shakeup interviewing potential witnesses and asking about the recent acquisition of mjm studios the agency has been looking at

amazon with its retail business and cloud computing services obviously, frank, amazon is in a lot of businesses these days. >> yeah. quite a few businesses bertha, before i let you go. congratulations to your boston cel celtics. congrats thanks a lot, bertha combs. >> thank you very much yeah, i do recall a little trash talking in the office. >> just a bit. but it's early a little fun. turning our attention back to the markets money and wall street kicking off new trading after a wild may for the markets. saw the s&p up a mere 100th of 1% smallest monthly percentage since september of 1979. at its worse the index was down 8% in may, a range of 12 percentage points. never before has the s&p seen that wide of a spread and then finished basically unchanged, pretty much flat what can this tell us all about the month ahead?

kate fadas another boston person. good morning >> good morning. >> you're saying it's time to get rid of the stocks a friend told you about in the stocks it's time to focus on valuations the stock salesforce up big after earnings where the guidance wasn't great. marc benioff talked about the strong dollar, headwind that won't go away. the stock's up after a lot of people realized it's just too cheap to ignore. is that one of the companies you're talking about when you say there's a valuation story out there? >> it is, frank. yes, salesforce -- you did say salesforce, right? >> i definitely said salesforce. >> very good company very solid had really been beaten down so i think it's on its way up i think what's going on is the market after what you saw last

month is down. i think if you're someone who's worried, if you're skiddish. now is probably a good time to reposition look what happens to something like target, down 30% in one day. this market is very for giving. >> it really seems like it right now. you say it's unforgiving but we have to find places for value and some places to hide. you have a few picks one is what we just pointed out to the laggard over the last month, real estate why is this a good time to invest in real estate? >> this is a good time to invest in real estate because this is not 2008 these stocks are trading like we just came out of a housing crisis we have not. home builders, the housing market is strong rents are sky high the market has moderated from the past two years' frenzy but it's still very, very strong housing has not been able to keep up with demand because

there's been a decade long under building of housing. this is my favorite one. toll brothers. trading below book value this is just absurd. got as low as 44 now it's over $50. again -- go on. >> you're saying it's too cheap to ignore and shares down 30%. your other pick in the financial sector, why do you feel this is a good pick in the financial sector people feel it might be a rising tide some bank stocks raised guidance. >> in the financial sector you want to own a regional bank. you want a place you can hide. fifth third is a bank, ohio based, 3% yield. it will benefit from the rates going up what i like about it is it is

conservative management -- again, this is about management very well run. chargeoff is at 12 basis points. i think if we get into a session because the fed gets too aggressive, this one won't get you into trouble. >> you're of the mind we haven't hit the bottom what's going to be the catalyst to hit the bottom that's coming up >> i don't know what the catalyst is but i say down 20, down 25% things at those levels look very interesting. what gets us there, i don't know i think it will be a volatile time. >> kate, we appreciate the insight as always. thank you for being here >> thanks. when we come back on "worldwide exchange," could record high gas prices being putting the travel sector on alert? plus, how crazy shares could be helping this premarket. and chairman fed chair jay

powell and president biden very busy hour coming up when "worldwide exchange" returns miss allen over there isn't checking lesson plans. she's getting graded on her green investments with merrill. a-plus. still got it. (whistle blows) your money never stops working for you with merrill,

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welcome back let's talk travel, more specifically summer air travel the first day of june which means summer travel season has

officially begun but this past memorial day weekend may be signaling the dreary weather ahead with more than 2,000 flights canceled with ongoing covid concerns with staff, prices at multi-year highs. joining me now is peter mcnally. global sector lead at third bridge peter, thanks for being here >> good morning. >> logical -- oh, i'm sorry. you're ready to go take off we're going to stay on theme pun intended >> look, the summer is going to be rough people do want to travel the excitement to get back out there is there but the airline just can't stand up enough people to run these planes we saw this starting 15 months ago at easter. not that many people had been vaccinated yet it rolled into christmas and

people started getting omicron and now we're back at the point where anyone who's going to be vaccinated whether it is staff or travelers, getting out there and just not enough pilots in particular to run these planes what the airlines are doing, they're cutting capacity even though demand is not there these problems are not getting solved this summer so it can be tricky if you are looking to fly this summer >> real quick, other issues with summer air travel. could this potentially turn into a situation with a snake eating its tail it's less likely to book the flight because i feel like it might get canceled >> what we're seeing now, the airlines do have visibility, you know it'she surprises of when people don't show up it's harder to deal with so i think in the near term, let's say over the next few

months, you know what you're going to get weather is always a bit of a wildcard, but price is definitely going up for air travel, particularly as costs just push higher i mean, the big cost here for the airlines is, you know, people but fuel is not helping either. >> so one of the areas where airlines make i guess the highest margins sales on business travel, first class travel, do you think they'll still have pricing with things opening up does the price hurt business and first class travel or do businesses and companies just want to get out? >> what we're seeing is an important shift in travel habits people are merging business and leisure travel together, particularly because they haven't been out in a couple of years. that is changing some dynamics in terms of capacity and price

look, airlines do have pricing power in all parts of the cabin these days whatever seats they can put out there are being sold >> before we let you go, where do you see this all going this summer talking about the summer travel season do you believe major airlines will add more capacity or more staff members to fix this problem sometime before we reach labor day? >> they would add more capacity if they could. the big major airlines, united, delta, american are in a better situation from what our experts are telling us the regional airlines have been picked over hired by the major carriers regional airlines may be in for a rougher go. >> peter mcnally, we appreciate you being here thank you very much. still on deck on "worldwide exchange," first in inflation taking a bite out of another

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all right. time now for your big money movers three stock stories in the morning. first up is salesforce shares up almost 8.5%. they expected better than expected first quarter the only headwind for salesforce is strong dollar, particularly against the yen prompting the company to trim the revenue guidance chairman and ceo marc benioff addressing that with jim cramer last night on "mad money." >> u.s. dollar, they had a far better quarter than we did i've never seen the strength in the dollar like this >> stock 2, hp inc quarter 2 beating forecasts with strong sales on pcs and laptops.

ceo enrico laurez said sales are remaining strong and printer revenues down. shares flat this morning stock three, victoria's secret retailer's first quarter profit topping estimates. inflation curbed consumer spending and supply chain issues those led to higher costs. those shares up more than 7% right now. let's get a check on this morning's other headlines. nbc's phillip mena is in new york >> reporter: members of congress are trying to find common ground on gun safety measures the house will hold an emergency session on new legislation a bipartisan group of senators has been working this week on a possible deal for gun legislation. they're expected to meet again today over zoom. in a "new york times" opinion piece president biden said he'll provide ukraine with more advanced rocket systems according to white house

officials, there are multiple rocket launch systems capable of reaching russia. the president is expected to announce that package today. and we have some good news for our early morning audience whether you like it black, americano, u.k. study said drinking regular or decaf is helping you live longer. researchers studied 120,000 coffee drinkers over 7 years they found those who drank a cup and a half to 3 cups a day had a lower risk of death. this holds true if they added sugar. those who drank unsweetened sugar were 21% less likely to die than those who did not drink coffee how about that, frank. >> a lot of people feel like they're going to die if they tonight have coffee in the morning. new research i always thought caffeine was bad for you. >> so do i we have new research.

>> a lot of people are going to live to be 100 phillip mena in new york thank you very much. straight ahead, an inside look at the u.s. jobs traffic picture. if you haven't already, follow our podcast. if you miss "worldwide exchange," brian sullivan, check us out on apple, spotify "worldwide exchange" will be right back only at vanguard you're more than just an investor you're an owner. that means that your priorities are ours too. our interactive tools and advice can help you build a future for the ones you love.

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investors hoping to shake off a rocky may with a new

trading month set to take off and futures suggesting a potentially positive start to june top priority president biden and jay powell coming together on how to tackle higher prices as one of the president's top officials admits miscalculation on inflation's true impact. and after two months shanghai reemerges from strict covid lockdown as they try to kick start the stalled economy live in china with the very latest on wednesday, june 1st right here on "worldwide exchange." welcome back to "worldwide exchange." i'm frank holland in for brian sullivan begin with futures as we always do right now, kind of flat. the dow up slightly above pretty much fractionally. the nasdaq down very much fractionally kind of a flat start

dow could open up. we turn to the bond market yields ticking slightly higher the 10-year at 2.864%. got to keep an eye on these in june as we expect more rate hikes to come. we also want to hit energy oil is coming off a 10% gain in may. sixth positive month in a row. longest monthly win streak since april of 2011. see the chart going up, up, up, up, wti about 10% a barrel higher than it was also, a sudden surge is up for a gallon of gasoline $4.67 a gallon a year ago it was over 3 bucks more than 50% increase as you can see. now to your morning's top stories and the president and fed chairman coming together to

try to figure out how to tackle inflation. bertha combs is back with much more on that good morning again, bertha. >> reporter: good morning, frank. fed chair chay powell and president biden meeting at the white house discussing the administration's plan to combat high inflation the president saying the central bank will play a key role in bringing down prices calling it his top priority domestically. biden telling powell he would not interfere with the fed's critically important work and independence to get the job done meanwhile, treasury secretary's janet yellen who was at the biden/powell meeting as well she admitted she was wrong when she said higher inflation wouldn't be a continuing problem. yellen said when she made her previous prediction there were not unanticipated and large

shocks to the economy that have boosted energy and food prices yellen also saying she didn't fully understand supply bottlenecks that have affected our economy. following the white house meet, yellen spoke with our becky quick about the administration's plans to tackle inflation. >> maintaining the gains that we achieved, maintaining a strong labor market will be consistent with bringing inflation down the president faem siesed his attention and doing everything he can to face prescription drugs, utility bills, things where the president acting on his own or working with congress can make a difference. and also his support for deficit

reduction. >> you can hear more of becky's conversation with secretary yellen coming up on "squawk box" at 6 a.m. eastern. sflank. >> yeah. it will be an insightful conversation bertha, thank you very much. now to shanghai. following two months of lockdown that move was supposed to last over a week and a half now still half a million people remain in their homes today. our eunice yoon joins us from beijing. eunice, what's the latest on the easing restrict shuns? >> reporter: frank, the messaging out of shanghai from the top is all systems go. the leadership has declared in theory all companies now can operate in shanghai. nearly all residents are free to leave their home and transport has resumed. not only public transport but

anyone's private car, whether or not you want to catch a taxi people were celebrating throughout the streets i spoke with the american chamber of commerce here and they said that their members are now assessing what exactly has to be ton before they can actually move forward. that means checking their inve inventory. looking at components and seeing if they can force components from other suppliers not in shanghai the american chamber of commerce said their members are looking at the readiness of their equipment. as you mentioned, equipment had been stalled for wyatt some time the eu chamber of commerce said there are several other issues to be worked out the biggest they see is the worker shortage, many of them,

truckers, people who work in the factory, will want to come back. pandemic controls is another issue the eu chamber cansee. the line behind me, the testing sites are now jam packed people have to wait one, two hours. what does that mean for your efficiency overall there's a lingering uncertainty in shanghai about whether or not when the government says that these -- that this opening is going to happen, whether or not it's actually going to stick. a lot of that comes down to the government, whether or not there is a surge in cases, will the government clamp down and reverse. >> eunice, we can see the lines behind you very reminiscent in the u.s. after omicron. it was almost impossible to get a test difficult situation there.

another question to ask, some of the other big cities in china, beijing, as far as covid restrictions, is that widespread or is shanghai almost a test >> reporter: shanghai is being very closely watched because the biggest city that had the most severe lockdown. here in beijing things are easing up a bit as you well noted, that there are a lot of people behind me at this covid testing site, and the reason overall, people here are wondering as to more detection of infections. even though the authorities keep saying that the economy is a priority, they are concerned about growth they want to make sure that businesses stay open, there's still a lot of inconsistency

when it comes to how all of these regulations play out that is one of the reasons why people are confused and conservative about their own spending and what they need to do when it comes to their own investment. >> eunice yoon, thank you for the report. it's jobs week here in the u.s. with the may job employment there may be some cracks forming in the labor market. microsoft, twitter, meta uber staff saying they will treat hiring as a privilege. netflix, robin hood announcing layoffs. and on the flip side, companies in the hospitality and service sectors, they can't hire enough people what's a bustling summer after

two months you shared some stats with us, two to one job openings to people 1.9. is that a leading indicator or a lagging indicator? what's the true picture of the u.s. job market? >> right now the labor market remains incredibly strong. as you mentioned, we have nearly two job openings for one unemployed person. that is going to be updated when we get the jolt report kind of a way to look across the board, all indicators are looking positive job openings remain at an historically high level at 11.5 million. jobless claims remain historically low kno now the pain point is we have inflation. even after adjusting for inflation, consumer spending is still 5.63% above where it was

in february of 2020 which means despite inflation, consumers are spending that is key because that is dollars going into businesses and those businesses in turn want to meet that demand and should be able to continue hiring. >> interesting stat you shared with us. you said for the last seven days job postings are up 74%. i don't know if that's year over your or month over month what kind of jobs are being posted on your site? >> so there has been a wide range of sectoral differences. at one end we have software development job postings as of may 20th, on the other end of the scale, hospitality and tourism has failed to do

the interesting thing we have found is that job seeker interest in in-person work is starting to return that is great news for employers in the hospitality and tourism space, food service as well as retail because throughout much of the pandemic job seekers, wondering is is remote work a factor it's less of a make or break than last year in 2020 we have plenty of searches on indeed focused on remote at the end of april 9.5% compared to 2% in january of 2020. >> big attention if you will on the three reports today. jolts, big jobs fridays report what are you expecting and what do you think that's going to say

on the quick spray in terms of the ui claims that come out on thursday nothing indicative yet that is a volatile theory. we would have to say something, multi-week rise to have it raise concerns and in terms of the big report, what's coming out on friday for jobs, we really want to see the momentum continue. it's important we are 1.2 million jobs down in february of 2020 even if there is some cooling, i think it's important to put that into the context of where we are in the recovery context. some of the numbers have been

absolutely eye popping even if it isn't one of those eye popping numbers, it's important to remember one report moving in the right direction and keep that strong labor market momentum continuing. >> did not know that we appreciate the insight. thank you for being here. coming up on "worldwide exchange." following money and the biggest buys by money insiders robert frank is tracking which executives are snatching up their own company shares and what do they signal. top trending stories it's official. facebook's change to meta will be changing next thursday. that change was initially supposed to happen back in early december. pepsi is dropping another sponsorship. revealing in an online post gatorade is dropping its nhl deal to focus on women's sports and college athlete deals. gatorade signed a five year deal with the nhl in 2015

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welcome back the markets facing relentless pressure throughout may. c suite leaders are diving back into their own companies corporate leaders are buying the dip. >> reporter: insider buying approaching $1 million in may. that was the highest number since march 2020 analysts like to look at the ratio of sellers to buyers normally it's about 4 to 1, sellers to buyers. in may it's been 1 to 1. that is the lowest ratio since march of 2020.

all of this is according to verity data. the tech and tell co buyers, they included dish network co-founder james defranco. he bought $21 million worth. richard schultz buying up bby. american homes for shares purchased. howard schultz very publicly biepg $15 billion. insiders tend to sell near the market peaks and buy ner the bott fom level.

huch is that the stocks versus the stock stock stock themselves and it would not be necessarily bullish. all of these were straight purchases of stock, not options related. very bullish sign and we'll see if they're right. >> we'll have to watch one step closer to the frank and frank show going to make it happen. robert frank, we appreciate it. sounds good. closing out a rocky may. rbc's andrew silverman may be showing calmer waters ahead. apple. nikkei reporting that the tech giant is moving ipad production from china to vietnam after lockdowns led to months of

supply chain disruptions apple has multiple component suppliers to build up the inventory. "worldwide exchange" will be right back ♪ ♪ what do you think healthier looks like? ♪ ♪ with a little help from cvs... ...you can support your nutrition, sleep, immune system, energy...even skin. and before you know it, healthier can look a lot like...you.

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very busy day on deck. 9:45 we get the final reading for may for the manufacturers purchasing index, pmi and job openings and labor turnover survey also known as the jolts, big friday jobs report at 2 p.m. the fed releases the latest

beige book alphabet and walmart holding annual shareholder meetings today. new york fed john william at 1 p.m. james bullard and tune in to tech check a whole lot of that going on. a new look at tech the next guest says despite all of the rip saw action, lower volatility may be ahead. amy wu silverman, head of derivatives. you're comparing this to the honey badger fun reference there. says it just doesn't care. what does the options market care about

is it seeing the same volatility ahead? if not, in what areas. >> yeah. what i would say is, you know, volatility has been steadily up and daily that's usually high. that feeds into future expectations of volatility we aren't getting that we're also not getting an increased demand for up side swings either. eye the narrative around this, largely they have taken their bottle and gone home they derisk. the options market which is typically used in a portfolio fully participated in is not participating now. i think that's part of it. i do think the options market is saying we are at or near the bottom >> you're saying there's a number of signals including etfs

that track bonds you're seeing substantial call buying you're seeing substantial call buying for the etfs. what does that mean? >> when i speak to volatility initially. it's always a market level s&p. under the surface, you're starting to see it in china. you're seeing it in ahsr and fsxy if and perhaps they'll say there might be an inflection point and even though in a market level there's no conviction on the up side or down side. >> you said there's no conviction you're confused.

that signals people believe we're hitting bottom, right? >> yeah. "so your fsi, hsr. on the s&p 500 what i would say is going on, there's sort of a lack if you look at the volumes on both sides and the hedges it's not really showing conviction either way. many people read it either way they say, okay, frank, we don't see much left of hedging i think that's it. other people could argue it's because people have key risk and growth i think with that frame up, showing either a crash or dow crash is not being priced in if we rip up or sell down more, neither one is being priced into the options market right now

i think my statement is what m more volatility hasn't been a big factor also the fed possibly are expected to raise interest rates. strength month >> so if you look to what has actually happened when the data point appeared in the past, it hasn't gotten your high volatility higher. part of that is it's on an absolute level so much higher than last year in general. it's kind of harder to kind of kick start it even further we'll also entering a seasonally slow morcht for volatility,

june, july, august, that ses nally is the time. if you are an over writer, that's very compelling mimp -- we are trying to figure out. futures pretty much flat nothing spectacular either way giving you the last word before we head over to "squawk box. what do you see coming up with the options market do you see people playing it for the up side or down side >> here's what i will say. i was just in las vegas for a derivatives conference one of the things i spoke about with our panel was everyone was prepared for the 15 minute

ruledown and in that sense >> that's the last word. amy wu silverman ea tplseell your parents i said hi that does it for "worldwide exchange." "squawk box" is coming up next so you'll never sit this one out. new icy hot pro with 2 max-strength pain relievers. this is xfinity rewards. our way of saying thanks, with rewards for the whole family!

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good morning stocks looking to kick off a new month of trading in the green. may saw stocks go nowhere fast we're going to show you what's moving right now. treasury secretary janet yellen speaking out about inflation. her meeting with the president yesterday. >> inflation is way too high and

it's really a big burden on american households. maintaining full employment while bringing inflation down, that's the president's priority. >> and the treasury secretary's interview with becky is straight ahead. and shares of salesforce are helping the dow up after big numbers. it is wednesday, june 1st. "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with brian sullivan joe and andrew are out today we are watching what is happening with u.s. equity futures at this hour you'll see it's a mixed picture. up by 132 points s&p up by 5.