it's 5:00 a.m. at cnbc here is the top five at 5:00 the dow did something for the first time since january of 2021 futures higher. president biden not giving up comments about recession and surging prices. the rise in mortgage rates not slowing down hitting the highest rate since the recession. and mark mahaner iy is layi

out his mega cap picks it is friday, june 17th, 2022. you are watching "worldwide exchange" on cnbc. good morning i'm courtney reagan in for brian sullivan kicking off friday morning with stock futures higher this was after another down day on wall street yesterday's broad based selloff saw the dow shed 740 points to close below 30,000 for the first time since january of 2021 worst for the s&p. futures are indicating a higher open dow jones industrial average opening higher by 250 appoi points. nasdaq lost more than what we saw at the dow and s&p the nasdaq losing more than 4% on the session

indicated higher here so far this morning for the week, the dow is down more than 4.5% s&p down 6%. both on pace for the worst weekly performances since on 2020 meantime, the nasdaq down more than 6% this week. on its pace for the worst week since january. ahead of the open, here is where we stand dow afteoff 19%. s&p off 23%. nasdaq off 34% let's get a check on yields. this was fed week and the fed reserve raised rates by .75. the 2-year treasury at 3.176%. let's get a check on things in the energy patch and check the oil market with crude oil prices continually in focus the prices at the pump and the price of crude up to $118.52

ice brent up to $120.61. let's get a look at cryptocurrency ethereum is lower. bitcoin is higher by .70%. bitcoin above the 21,000 mark. we will talk about this later on in the show. let's get a check around the world with jp ong and another key bank decision. we also have julianna tatelbaum with the london trade. jp, let's start with you >> reporter: good morning, courtney today was a tale of two sets of markets in the asia pacific. you saw tokyo to t'aipei lose ground, but some markets with impressive gains we saw the weak handoff on wall street with stocks falling on

the back of the concerns if the fed gets more hawkish, this could raise the possibility of potential recession in the united states. here in asia, it was the bank of japan and the boj decided to keep policy rates unchanged. the japanese yen weakened as expected nikkei failed to take strength and closed with solid losses even sony and honda not worried and signed a joint venture to produce electric vehicles by 2025 another notable loser is the shipmaker in t'aipei we saw the markets in sydney close higher today the hang seng in sharp contrast. we saw many of the tech shares in china book solid gains.

looking very solid and surging at the close in hong kong. if there is one area in hong kong that took a bit of a black eye is casino stocks this after fitch downgraded them to uncertainty as to when the sector can recover that is the round up here in asia courtney, back to you. >> thank you, jp to the early action in europe and julianna tatelbaum julianna, what is going on over there? >> courtney, great to see you. european equities are marching higher we are tracking u.s. futures rebound under way. dak is out in front 1.2% higher. yesterday, we saw notable losses for the dak and ftse 100 and ftse mib all three dropped more than 3% yesterday. to put this in context, coming into the session today, the stoxx 600 is down 5% on the week

yes, we are gaining ground, but not made up all of the losses that have come up to the trading session. from the sector perspective, we have every sector trading in the green now. basic resources just turning so. on the upside, we have real estate recovering. up 2.8% alongside technology and banks. we are seeing strong demand for the italian lender today lingers demand on the back of the ecb emergency meeting earlier in the week where they pledged to address the risk. it should support italian bond markets and lenders. courtney, as i hand it back to you, natural gas prices in europe are on the rise as concern around russian gas supply in europe is center stage once again. >> natural gas prices are on a run. otherwise, it is refreshing to see the rest of the green happening in europe. julianna, thank you. let's turn back to wall street with the s&p potentially

facing the worst week since march 2020 remember that? according to bespoke, more than half of the stocks in the s&p are below the pre-covid highs. the hardest hit is consumer and financial and industrials which have given up the post covid gains. we have robert teeter with us from silvercrest and kevin caron at washington cross advisers thank you for joining us kevin, a big week for the markets generally and the economy. finally hearing what the federal reserve decided to do and it was the .75% rate hike which was expected and initially the markets moved higher yesterday, we sold off and late today with an uptick is the market not confident that the federal reserve and tools it has can cushionrb flags ankeep

from sliding into recession? >> the market was asleep as far as rate expectations were concerned earlier this year. ultimately, now the market has woken up the yes question is what happens to the economy it is okay in some respects. in other respects there is a concern. you have the strong defensive line dollar and pull back in metals when you think about mortgage rates, for example, we anticipate slowing in housing. there is an effect of all of this tightening that will show up in the economy to some extent the question is if s&p earnings rollover which held up well, we

expect another leg down. if not, and the fed hasn't engineered what they hope to see is a soft landing, we could have seen the worst of the declines behind us. the market is very choppy. we don't know. the market is trying to figure out credit spreads and where they go and we're just at a point where the next question is if the market line culminates in the actual decline that is why you get the chop. >> robert, i know we understand what kevin said. i wonder do you think it is possible we could actually be talking ourselves into a recession? it seems as if the fears are bigger than what's actually happening right now. we've got very low unemployment rates. consumers are still spending there are plentiful jobs although strong inflation.

the market is selling off fear than actually. can we stem the fear and prevent a recession? >> it is possible. the way it happens is stem the fear on inflation. the metrics look solid they are not near recession territory with the consumer spending the problem is the market is factoring in the fed which has communicated a very high degree of seriousness with regard to fighting inflation the concern is that these consecutive hikes will slow the economy at some point. i think we're at a very critical window with a race of inflation and economy. if we see the cpi come in lower than planned, we might get relief on the valuation front. it is a critical window of time and hope we see green chutes on inflation going down. >> and kevin, what do you think

is pertinent for investors should we put money to work because we can take advantage of lower prices or is there further room to fall help give us actionable advice for viewers. >> if you want to stage into the market, that makes sense ultimately the types of companies you want to be buying into here, in case you do have another leg down that spreads into the economy, then what you want to being doing is make sure the companies you are buying, many which have pulled back sharply. the earlier seegment of the s&p companies is back to the post-covid highs if true, this is a buyers pick if you pick stocks, if there is a more difficult period, make sure the companies have low debt

and have profits and in terms of assets assets are profitable. business consistent if you see that to the other side, you could come into the market and buy a good level here the economy does have to hold together i completely understand that prices are better, but as we have been talking about, if this does get worse and s&p earnings forecast slip, they have been solid, you want to make sure you own very high quality companies. >> got it. that's all the time we have. gentlemen, thank you robert teeter and kevin caron. let's get to the top stories with pippa stevens >> good morning.

we have comments from the president. a recession is not inevitable. the aid package is to blame for inflation hitting 40-career highs. the 3.6 unemployment rate. snap is working on a new paid subscription service called snapchat plus. the company is currently carrying out early internal testing of the service which would allow users to access features with other perks. shares of snap are up 2% this morning. still down sharply for the year. and investors pulling cash from corporate bond funds leading to the latest rate decision according to data providing epfr, for the week, investors withdrew 6.6% of funds

that's the pig evident week since march 2020 u.s. investment grade debt hit the largest one-week total since april of 2021. >> those are big stats that week or month scares me thank you very much, pippa when we come back, no thaw in sight with the crypto winter. what the downturn could mean for the markets and your money. a 30% selloff in tech? not stopping mark mahaney from laying out his picks. and later, a mortgage market mess with rates at the highest level since the great recession. what about home prices our diana olick is here with more a very busy hour when "worldwide exchange" returns.

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a check on the biggest names in tech taking it on the chin and extending losses yesterday ahead of the open is where we stand. meta down 58%. apple down 28% amazon down 45%. netflix is off 75% and alphabet is 30% lower cryptocurrency has had a rough week bitcoin is down 30% just this week as interest rates rise and

investors sell off risky assets. the cryptocurrency has swooned since the high of mid-november when the central banks pivoted and turned hawkish since, bitcoin is down 70% ethereum is down 80% secelsius freezing all withdrawals. the wall street journal says investors are unlikely to bail out celsius. let's talk about this now with clara medalie. clara, thank you for joining us. you know, when you start to think you understand the cryptocurrency market, something like this week happens all of it goes out the window. it seems to me cryptocurrencies were supposed to be the alternative asset class. supposed to offer a safe haven

as everything else fell and equities fell, too, did all of the other cryptocurrencies for both fundamental and other reasons collapse what is going on and when will it change? >> great question. that is what everyone wants to know i agree. bitcoin is not proving itself in the high inflation environment it started when all risk assets started to sell off with high inflation and rising rates investors want to divest out of the risky assets the headlines from the past week have been bad for markets. we have the fed rate hike, the highest in almost 28 years and then celsius celsius is important for cryptocurrency markets it is involved with key players in the centralized and decentralized side of crypto we will see what happens in the next week.

the possible insolvency could have ripple effects for weeks to come >> we are talking about layoffs at coinbase and others does this suggest that the entire cryptocurrency space is considerably less stable even fundamentally than what we thought or potentially hoped it to be? >> i think that when it comes to layoffs at exchanges, i predict these are preemptory i'm sure they are still earning high heavrevenues it is in anticipation of a bear market the number one revenue source is transaction fees they are doing the layoffs just in anticipation of what's to come >> putting that all together, it looks like cryptocurrency is the space that you want to invest right now if you are looking for

assets to increase am i wrong >> i would say most investors are waiting and taking a wait-and-see approach. it is volatile people need to wait for the leverage to be flushed out of the system we see funds that could unwind and collapse and with celsius, we don't know how low it could go there is still a lot of assets that could be liquidated on their end. >> before we go, the idea of a stablecoin, is that not so stable is that an area that is more risky we when talk about a sub sector of the crypto space >> i think stablecoins have proved the current model that exist don't work we saw with the collapse of terra. with other coins like tether,

they have not de-pegged fully. there is enough trust in the system to maintain them. they are systemically important for markets today. i think for now everything is okay you know, i would say in crypto, nothing is certain we will see what happens >> it does seem you need a strong stomach to play in this space. clare medalie, thank you. and stocks sgeur at the open find out when "worldwide exchange" returns. hat amusement... -no. -no. when you decide to go to hawaii. aloha. turns out your beach people. i think we're beach people. whoa whoa, slow down boys. we know you love it. and did you know they like ceviche?? and best of all, the hotel has babysitters. so you have a date night. remember those? with amex, it's never a question of if vacation will actually feel like vacation. it's when. ♪♪

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time for the big money movers first up, adobe. the company reporting better than expected second quarter results. guide guidance for the third quarter is soft. they are feeling the effects of the headwinds and the war in ukraine. shares are down 3% > up next, roku and walmart. you can use your remote and buy items and streaming. you can click on a shopable ad

and order and get email and shipping information it will use the roku payment platform shares are up almost 4%. and u.s. steel shares are higher as the company expects second quarter profits to top estimates. results driven by high steel prices especially early in the quarter and rising demand. u.s. steel echoing similar comments and shares are higher by 5.5%. let's get a check of the headlines are frances rivera in new york good morning, frances. >> courtney, good morning. we start with police in alabama investigating a shooting at a church that left two people dead and one injured. it happened at st. stevens church. and the january 6th

committee focused on aides and testimony over mike pence. the private phone call was detailed with trump and pence and trump berated pence for failing to overturn the results. and golden state beat the celtics 103-90 steph curry was named finals mvp. for the friday to end the week, courtney, back to you. >> thank you, frances. i saw the news this morning. did not stay up late to see the game. coming up, the white house crafting a plan to take on surging fuel prices. if you haven't already, follow our podcast. if you missed "worldwide exchange" check it out on the podcast apps we'll be right back.

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futures pointing to rebound with stocks on track for the worst week since march 2020. tech falling deeper in correction now 30% from the all-time high mark mahaney is here with the picks that are a buy at these levels. a market mess. mortgage rates surging to highs. what about home prices it is friday, june 17th, 2022 you are watching "worldwide exchange" here on cnbc

welcome back i'm krecourtney reagan in for by than brian sullivan here is how stock futures are looking halfway through the 5:00 a.m. hour. in new york, we are seeing a higher open. the dow jones industrial average is up by 235 points. this comes after a rough session for the major averages the dow closed below 30,000 for the first time since january of 2021 for the week, the dow is down more than 4.5% on pace for the worst weekly performance since october of 2020 s&p is tracking its worst week since march of 2020. nasdaq down 6% just this week and on pace for the worst week since january here is where we stand

dow off 19%. s&p down 23% and nasdaq off 34%. and other headlines this morning has pippa stevens joining us >> there is considering gas being exported from the united states this comes as the biden administration ramps up criticism of oil profits amid the soaring prices at the pump. mortgage prices hitting the highest levels in 13 years the average rate on the 30-year fixed rate is 5.78%. that is up from 5.23% a week before marking the biggest weekly increase since 1987. elon musk meeting with twitter employees yesterday. among the topics discussed, free

he speech, possible layoffs and remote work. the majority of the twitter employees are remote or hybrid musk has been a critic of working from home and told twitter staff yesterday that remote work is fine for someone who is exceptional at their job. courtney, this is a polarizing topic. >> it is it is very interesting to hear different takes from different people sometimes you see clear divisions between who believes in what. thank you very much, pippa. turning to the rising rates and consumer consumer discretionary is down from the weeks high. consumerspending remains stron in the face of surging inflation and interest rates is the story about to change could there be more pain ahead for retail stocks? joining me now is stacey widlitz

and oliver chen. thank you both for joining us. you know, stacey, i'll start with you we heard from retailers during the quarter. it was almost hard to come up with a common theme. it seemed story dependent depending on the retailer. did not matter stocks seemed to fall afterwards once the dust cleared. is there a wheny where to inves retail or are the fears true with consumer spending >> courtney, the one kcommon theme we saw was inventory was out of control average spread up 20% at least some are worse than that ironically, the department stores are cleanest. who would have thought i think at this moment, we will continue to see a clearing of inventory. however, if we think about the back half of the year and

holiday, this is a wake-up call to retailers and perhaps they put the brakes on the inventory purchases and get conservative about the second half of the year once again, we are looking at product shortages like covid there are names we can invest if you are in it for the long term and names that have margin power. nike is going dtc. we will hear from them in a couple of weeks. luxury you also have to look for your opportunities there. there is no doubt that we're going to see a wealth effect at some point lastly, if we can't buy cars because credit he isis harder tm by, you have to look at auto zone you see people are fixing stuff rather than buying new stuff >> interesting points. oliver, i know you talk about a bifurcated market with strength

on the low heend and high end even the high end is seeing this break with stock prices. although some of the conglomerate companies that trade in europe are reporting strong results is the high end breaking down? >> we're still seeing a lot of great momentum, courtney, on the high end with pricing and ability to achieve pricing we really like brands like lvmh and names like canada goose as well which has been able to pass through pricing to consumers we're selective at the high end. it is something we are watching. the wealth effect is a factor. brands are leverage is the key we have going out stocks which is a movement in terms of people looking for swimsuits and suitcases instead of sweat pants. that is happening. the other thing is invest in face and beauty. that is a good category. retailer we like is ulta

as we think about the low end, value is very important. grocery outlet and planet fitness are great ideas in what we are recommending. >> oliver, that is interesting about going out. i know we have so many years where it felt we were stuck inside and pent-up demand. maybe we want to update the wardrobes or makeup. does recession change that >> gas prices a factor which could negatively impact traffic. however, a lot of newness in beauty and a lot of customers in the field. it is a lower ticket item as you know courtney, we have covered walmart and target and costco for a long time. these are great business models which are less expensive and as interest rates go up, they can be nice defensive opportunities as well. there is something to watch. curbside pickup.

product execution. omni experience at target and walmart is true. however, as we all saw with too much home product and consumer shifted rapidly and the stimulus was tougher than expected. the consumer is still stable unemployment at 3.6% is an attractive and positive number at the low end, we are seeing in the research that consumers are spending less and being more considered at the under $50,000 household income levels. >> stacey, oliver brings up an interesting point. walmart came up with the decision of the inconvventory ae have to take more drastic actions with the quarterly results. what is the read through on that as you talked about inventory and what it means for the bulk of the year? will we see promotions and discounts right now?

make consumers can take advantage of it, but what does it mean for the balance of the year could you be caught short with inventory levels >> i think we have a data base of 80 companies in europe and the u.s. and no doubt things are accelerating on the promotional side we see returns go way up that was something asos talked about today. you see more bags coming in than going out. at the low end where people are sensitive to rents and gas, it is a pressure. if target has to have round two of slashing expectations because they are really that caught off guard, things are changing quickly. i think as oliver said, if you want to look at the long-term opportunity and other opportunities, as i said, target is the new department store. there is value there i think there will be a lot of trade down to value.

i think also a tjx where the consumer is saying i want to look for a treasure hunt and best value out there to answer your question of the second half of the year, i think retailers will become a lot more conservative on purchasing and perhaps that's the way to cap off what we're seeing with the huge promotions and maybe some shortages. >> stacey and ol iveroliver, th for joining us. coming up, a one-two punch why rising rates and slowing economy could spell trouble for the housing market the risk of mortgage foreclosures is next. check out biggest losers for the week chevron and dow and caterpillar. stay tuned you're watching "worldwide exchange" here on cnbc

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could that happen today? highly unlikely. diana olick joins us with more good morning, diana. >> reporter: good morning, courtney i'll throw out numbers at you. it will with make sense in the end he for the 53.5 million first lien mortgages is at a record high. 751. thanks to the run up in prices, those borrows have record equity that is how much you can take out of the home and leave 20% equity in it it hit $11 trillion in total this year. up 34% from a year ago record low mortgage leverage today. that is a significant cushion in case home prices soften or fall. it reduces investor losses in case of default. negative equity is nonexistent what about the risky loans there are just 2.5 million

adjustable rate mortgages outstanding today. compared to 13 million before the subprime mortgage crash. 1.4 million are facing resets. those loans are at risk. back in 2007, about 10 million of those were facing resets. mortgage delinquencies are at a record low under 3% are past due. with that jump in delinquencies, there are currently 300,000 fewer past due mortgages than there were before the pandemic now, there are still about 300,000 borrowers who are exhausted their pandemic related for forebearance the one to watch is recession. if people lose their jobs and can't make payments. courtney >> interesting, diana.

i appreciate that seems to be a silver lining where things have been rough this week not seeing major risks of foreclosures is a good thing what about the overall market? >> reporter: it is affordability. although we see slower sales and higher mortgage rates. there is still the supply and demand issue there is not enough supply and there is still demand. people will stretch what they have been stretching to afford their homes. what happens if they are in a home they bought in the last year and because of recession and because of the economy, they start to be unable to afford to make the payments. that is a real one to watch. for the overall health of the housing market and you see the stagnation sellers don't want to sell because they are concerned they wouldn't get the price and where will they move buyers are at an the top of the market and then they can't afford it. >> it is interesting with the information yesterday.

20% growth in ing prices is not going to continue. that's fairly abnormal anyway. >> fairly abnormal incredibly that is record high. average is 4% to 6% depreciation do prices actually go lower? i don't think so >> very interesting stuff. diana, thank you on deck, faang falls we'll talk to top ranked analyst mark mahaney about what investors should expect. and throughout june, we are celebrating pride month. as we head to break, here is ryan, the cnbc senior director >> the most important thing i want people to know about the lgbtq community is we are everywhere we are actors and doctors and

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and then the read on the consumer prices. back on wall street, it has been a rough ride with the nasdaq falling 4% yesterday and on track for the 6% loss for week this index is now 35% off the all-time high which was hit in january. a closer look at the biggest names in the space and where they stand from recent all-time highs. meta platforms facebook's parent company. down 58% apple down 29% amazon off 45% netflix shedding 75% from the recent highs alphabet down 30%. joining me now is senior managing director and head of internet research mark mahaney mark, thank you for joining us the big question is what is going to happen in tech? is the selloff going to continue and as an addendum, is now the

time to have a strong stomach and buy into the companies whose valuations have been too lofty for too long >> we've been in a risk off year to put it mildly we are getting to the point where we had dramatic d rating multiples have come down across big tech almost all tech. that's because of rising inflation is the concern over rising rates if you have long duration assets, it is always a negative environment for these kinds of stocks that is why the multiples have come down. now we have recession risks. if there is a recession, the stocks are cyclical. you have to have estimate revisions. that is what the market is incei insisting on until we know that is the case, these stocks will remain under pressure. >> if they remain under

pressure, does that mean we should wait a little bit if you have money to put into tech and you want to go there, is now still not the time? will these fall further? >> i guess the question is are we going to recession and if we are, how severe and how much is estimated in how much do the estimates need to come down take amazon, you mentioned that stock off 40% year to date it is fully exposed to the macro trends one of the most with 1.5 million employees and deep supply chains that go back into china and huge exposure to fuel costs and labor costs and input costs and trucking services. you name it. shipping container costs it is as macro exposed as a company can be you need to have a moderation and inflation for the market to start having confidence that those estimates don't need to get cut again in the back half

of the year. there is the issue of demand i guess to answer the question, courtn courtney, is are you a trader or investor if you are willing to take on near-term volatility, you will get a good return buying these assets the next 10% movein the stocks could as easily be down. the next 50% move in the stocks and it will be up if you have a 12 to 18 month horizon >> if you are looking at a longer horizon and you made rotations in topi picks what are you looking at in mega cap space? >> there is not much defensive in tech. what i want to do is dislocated high quality companies i'll stick with amazon

it is still the leader with cloud computing. regardless of a recession. it is still the leader in online retail globally. one of the three or four biggest leaders in terms of online advertising. that story is well in tact there are operational issues and the massive exposure to inflation risks and consumer softening. the long-term thesis is well in tact with that and on google. the highest quality assets and they are dislocated. here is the chance to buy microsoft or apple or amazon or google at a discount a couple of names, amazon is 40% off historic multiples that has to be attractive especially if you need another 5% cut. >> i'm interested to hear why lyft and match group and airbnb still look good to you if we are looking into a recession

do those still stand >> i'm not sure it does. the one area of consumer spend that so far has held up well is travel we have a record leisure travel summer coming up names like booking and expedia and airbnb you can fully leverage that. i like booking, bkng, the high quality. that business model and balance sheet have been battle tested. highly profitable and well financed you have high quality and it is a clear recovery play as people travel that is one of the few safe havens there are not too manylaces to hide in tech >> mark mahaney, thank you

i know there are a lot of moving parts. we appreciate you joining us this morning we will watch for what is to come in the days and weeks that is it for us on "worldwide exchange." stick with cnbc. "squawk box" is next we've been streaming all day from every room. the power and speed of this super-sonic wifi from xfinity is incredible. mom! mass speeds was my idea, remember? get minion net, with speeds of up to one minion bite per hour. [ low screaming ]

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good morning stock futures pointing to rebound, but one that would make a slight dent in the selloff this week. we'll show you what is moving right now. major airline stocks battered with losses more than double the broader s&p we just heard mahaney say travel has held upp better than anything. and elon musk's take away with the meeting with employees. his comments on layoffs and how

he defines success it is friday, june 17th, 2022. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick along with joe kernen andrew is off today. as joe mentioned, nowhere near gaining back what we lost this week or yesterday. the dow indicated up 230 points. s&p up 34. that comes after stocks tumble yesterday. sending the dow jones industrial average below 30,000 for the first time since january of 2021 the dow was down 2.4%. it was worse for the s&p which was down 3.3%. the big loser was the nasdaq