global headquarters and here is your top five at five. two steps forward, one step back futures now pointing to a sharply lower open after yesterday's relief rally this as stocks look to cap off their worst first half of the year since the nixon administration oil also deep in the red as the white house weighs suspending the federal gasoline tax through the summer months. u.s. crude prices now below $105 this morning and falling

on capitol hill, investors are expecting fireworks when jay powell testifies before the senate banking committee, defending his decision to initiate the biggest interest rate hike in three decades crypto joining the risk off trade this morning after yesterday's rebound. bitcoin hovering right around the $20,000 mark and later, shopify's -- amazon's audio service inks a big deal with two of the most popular podcasters it's wednesday, june 22, 2022, you're watching "worldwide exchange" right here on cnbc good morning, welcome to the show i'm dominic chu in for

bernie sa brian sullivan president biden officially calling on congress to suspend the gasoline tax a amon afters is standing by with those details. >> what we know right now is that president biden is going to call on congress to suspend that gasoline tax, 18 cents a gallon, through september. so the president is going to ask congress to suspend the tax. we know about the president's plan right now, calling for the taxes to be suspended three three months asking states to suspend similar taxes or find similar relief asking the industry to put record profits on work calling on retailers to lower their prices that's an 18 cent tax on gasoline, 24 cents on diesel he's calling for no affect on

the highway trust fund those taxes go into the highway trust fund to pay for improvements in the highway system the president is arguing here, senior administration officials said yesterday, there's been a surplus elsewhere in the government so they can repurpose those revenues that are coming in to the highway trust fund so therefore we won't lose out on the infrastructure spending. remember this, dom, whenever a president is calling for something to happen, that means he doesn't have the power to make it happen he's calling on someone else to do it, in this case it's congress republicans have signalled their opposition to it we know at least one prominent democrat may be opposed to it. whether or not the president has the votes is what to look for. he's also calling for states to suspend their gas taxes. and he's calling for industry not to swallow the profit if

they do pass this and seeing if industry would comply as well. there's a lot of ifs here but the president is signaling he wants the gas tax gone. >> stay right there. we're checking crude prices because they're sharply lower. this is maybe part of the story right now alongside the notion that perhaps we have certain signs of demand maybe falling a little bit, maybe supplies perhaps coming a bit more online but right now u.s. crude prices are down north of 4%, $104.41. let brings bring in two cnbc contributors thank you for joining us maybe because the crude is the focal point of this. rita we'll begin with you in the next leg of our conversation what was behind this i was out this morning, fuelled up before work, gasoline prices

are definitely lower than they were markedly so just over the last week or two. >> yeah and i think prices have already started to come off, because you've seen some of the cracks come off, if this measure were to pass, you will actually see pump prices coming off more. so this by no means is bearish, this will stoke demand further and is bullish for oil i think the risk off sentiment you're seeing in the market, i've heard from some folks it's linked to biden's proposal to congress that they should be lifting the gas taxes but it's the opposite effect. i think it's a broader risk of sentiment regarding recessionary fears, still part of the fed decision last week and we are seeing some of the cts going short right now which means again there's a lot of momentum selling. it's summer liquid is thin, you

can see sharp movements like this during times like this right now. >> so jim my, if you look at the way this is shaping up, there is a political motivation because inflation by account of many polls and surveys out there, seems to be the number one economic concern for americans even more so than food prices, even more so than rent how much of this will be something that people can consider, voters and whatnot, as we head towards the midterm elections. >> one of my favorite, qu quotes from treasury secretary tim gietner, if there's not a plan, there's no plan. maybe, if this should pass, this holiday might have a bit of a tailwind but it might not. and if demand goes up, there

might not be much of a change at all. and then the president will look very ineffective, and i don't know if voters will give him lots of credit and should be noted, i think as eamon was saying before, that they were looking to have this gas tax holiday, congress is concerned about this maybe a limited duration, not the whole year maybe they'll give biden credit for trying to do something but i don't think ultimately it's going to have a lot of effect, unless it gets caught up in a broader decline in energy prices. >> if we talk about the broader decline in energy prices you laid out the case why we could see more of a rip to the upside is this more of the commodities super cycle discussion that we've had in the past? i remember the last time we talked about it and oil prices

peaked only to see a fall, at what point do producers really have the incentive to say okay, the prevailing winds politically maybe haven't been in our favor but this has changed the narrative and we're going to start drilling and spending more on cap x >> the reason producers are not spending or drilling more, they are by the way but more you could argue, is nothing to do with oil prices. at these price levels, profits even after returning cash to shareholders is enormous but there are real on the ground constraints, instead of waiting for 10 days now they have to wait for 180 days for steel. but i don't think it helps the president has been pointing fingers at the industry for record profits because the industry was also in the red the last few years and now there's pressures from investors to focus on esg mandates so there

hasn't been an incentive to drill, right and there are some severe, severe constraints even if there are some who do want to drill. federal land leases hasn't helped, a lot of uncertainty around that and i think the industry is looking to the government for clarification as you saw with the chevron letter yesterday, the ceo saying let's work together, let's not point f fingers at each other. >> i wonder how much the idea the climate hawks out there, are pushing for things combatting climate change, they've been very quiet over the last several weeks if not months now about what's happening with carbon emissions and everything else. is this shock of what's happening right now, we hope it's going to be shorter to medium term.

is this a story about whether fossil fuels have a future in the u.s. even if you push towards rerenewables >> i don't think so. i think progressives look at this and say fossil fuels have to go over the long run and do everything they can to push us off that path. borrow jimmy's idea of a quote here i'm going to say in politics doing something beats doing nothing when you're the president of the united states you have a significant problem on your hands like gas prices are for this president you can't be seen doing nothing, you have to do something, the problem for the president politically, you know, i can see two problems here, one is there's the potential that congress rejects him on this and says we're not going to go along with it. some coalition of progressives and republicans, progressives don't want to help biden, republicans don't want to lower

gas taxes. the president is proposing to do this until september and there's an election coming up in november you wonder if democrats want to be in a position of now raising gas taxes in september going into the fall election season. that might be awkward politically as well. there's a lot of blow back potential for the president. clearly this white house has decided doing something beats doing nothing. >> jimmy we'll give the last word to you here what else can you do if you're this administration with regard to this particular issue of fuel prices, is there anything that can be done besides perhaps the gasoline tax suspension to find relief at the pump >> there's not much. if i was the president i would focus on other things. i would focus on getting rid of the tariffs, that can be anti-inflationary, and then hope oil prices come down, get some

credit for lower gas prices and hope the fed works its magic other than that he's stuck. >> there's a lot of home in that conversation, jimmy. >> yes. >> thank you all for joining this discussion, we appreciate it. let's get to this morning's other top stories. silvana, good morning. >> reporter: good morning the white house plans to establish a rule proposing a maximum nicotine level in tobacco products the rule is expected in may of 2023, it's a aimed at making it easier for tobacco users to quit this follows a proposal from the fda back in may which would ban menthol cigarettes and flavored cigars. one analyst from j.p. morgan said fund outflows have left big banks with an estimated $2 billion in losses

according to j.p. morgan bank of america and citi group are the two with the largest exposure to so called hung note deals. leverage loan funds have seen their steepest outflow since 2020 with $3 billion exiting in may, and another $2 billion through mid june for more on this story head to cnbc.com the international energy agency is warning europe must prepare immediately for a complete shutdown of russian gas exports as soon as this winter speaking with the financial times, the head of the iea said governments must take measures to cut demands and keep nuclear stations open as russia looks to leverage in the marketplace as temperatures drop. fossil fuel discussions front and center all over the world. >> yes. and as we come back, fed chairman jay powell facing off

against lawmakers in what's likely to be a tense hearing on capitol hill former fed, roger ferguson set to break it down. and getting comfortable with one stock ahead of the open today, up 8% already later on sorry spotify, chalk one up for amazon linking a streaming deal with two of the biggest names in the business. if you're watching television right now we're showing pictures, if you're on the radio you have to tune in. we have a busy hour when "worldwide exchange" returns after this break ♪ in any business, you ride the line between numbers and people. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities.

it takes balance. cla - cpas, consultants, and wealth advisors. we'll get you there. ♪ ♪ how's he still playin'? aspercreme arthritis. full prescription-strength. reduces inflammation. don't touch my piano. kick pain in the aspercreme.

welcome back to "worldwide exchange." let's get a check on the u.s. futures picture this morning after a bounce yesterday for the markets. the dow and the s&p 500 posting their best day in six weeks but right now we could be giving a bulk of that back, the dow implied lower by 400 points and the s&p down 60 points the s&p is down for the year, on track for the worst first half of the year since at least 1970 when it was also down around 21%. if it ends the first half down more than that, it would be the worst first half since 1962,

when the s&p lost almost 24% let's bring in seeseema shaw the question i get asked a lot, how much lower could this go so i'll ask you the expert, how much lower could this go >> it's a tough question to answer what we can say is we think there will be further decline from here. not stopping at the 22% mark a lot of these declines have taken place. we're not seeing any drop in the end growth numbers this is almost your first leg so far. as we start to see the economic data, the earnings growth data start to turn, that's when you get into your second leg of market declines. i wouldn't say that 30% drop from the peak is impossible. >> so the 30% we've gotten in certain parts of the market, the

nasdaq specifically down more than 30% at this point from record highs if you talk about the broader s&p 500, you're still mentioning the same mega cap names but it's a broader based measure. how much of this loss, hypothetically if it can go to 30%, hypothetically will be driven by the tech trade, which has been destroyed already but now comes down to more value ory oriented sectors, oil and gas in particular >> the nasdaq comprised of those mega cap names has dropped significantly. coming into this year they were also the most overvalued, the most expensive stocks fall the furthest when you have this macro environment. the question whether or not these companies are cheap enough to be attractive there are some names within there which would be attractive. this is the time when early

stock pickers start to perform well but rising interest rates, a difficult recovery where demand is falling, especially given that large cap stocks have exposure outside of the u.s. and as weak as the u.s. economy is likely to be, it's other parts of the world, such as europe, are likely to have a tougher time so the large cap stocks are still quite challenged even as the year progresses. on the value side, energy has been the key upper driver for those markets. and we don't see any of that changing any time soon there may be challenges as regulations, tax holidays start to come in but overall the energy market and commodities are probably on an upward push because of structural shortages within that industry. a tilt for sure towards the energy trade seems to be in place for a good while thank you very much. always great to get your thoughts wapectee pria it.

"worldwide exchange" is back after this with a lot more news. stay tuned

♪ ♪ how's he still playin'? aspercreme arthritis. full prescription-strength. reduces inflammation. don't touch my piano. kick pain in the aspercreme. welcome back to "worldwide exchange." cnbc is out with a very new documentary out tonight, it's called exxon mobile at the cross roads. it's reported by cnbc's own david faber and he's going to explore exxon's efforts to lower carbon emissions and whether

it's really ready for that massive energy transition in the offing in one of several exclusive interviews he asks ceo darin woods about the rise of electric vehicles and if exxon's business will take a hit from their wider spread adoption. >> we did work early on, let's just make the assumption that ultimately every car in the world that's sold is electric and ultimately i think we got to by 2040 every vehicle in the world is electric. so you don't have gasoline sales. at the time we did that, we projected oil demand would be what it was in 2013, 2014 time frame. we were a successful business in 2013, 2014 so that change will come at some pace but that's not going to make or break this business or industry, quite frankly. >> it seems hard to imagine that you can sit here and tell me exxon mobile is not going to really take a hit, so to speak,

from a vast reduction in gasoline on the planet. >> if you look going forward where the demand for oil, what's driving the growth for demand in oil is into chemical products which play an important role in people's lives today. >> oil and gas at the center of so much conversation these days. exxonmobil at the cross roads here on cnbc at 8:00 p.m., excellent reporting on a key industry in a transition phase ahead on the show, roger ferguson is here leading up to jay powell's capitol hill grilling that's expected later on this morning. what investors should expect first a check on these two money movers la-z-boy up about 8% the furniture maker reporting record quarterly sales results coming in well above analyst estimates.

plus watching toyota cutting the july production plan by 50,000 vehicles citing ongoing semiconductor shortages, they expect to make 800,000 vehicles next month, a reduction in capacity for toyota. we are back after this 've been . (dad brown) we got iphone 13s, too. switched two minutes ago, literally right before this. (vo) now everyone can get a new iphone 13 on us on america's most reliable 5g network. for every customer. current, new, everyone. to show the love. what do you think healthier looks like? cvs can help you support your nutrition, sleep, immune system, energy ...even skin. so healthier can look a lot like...you. cvs. healthier happens together.

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steeper losses at the opening bell potentially wiping out most of yesterday's solid gains. the fed chairman in the hot seat, jay powell going before congress today to defend the central bank's rate hike strategy to tackle sky high prices roger ferguson is here to weigh in the former first couple saying so long spotify and f finding a few home for their audio offerings. it's wednesday, june 22nd, you're watching "worldwide exchange" right here on cnbc welcome back to "worldwide exchange." i'm dominic chu in for brian sullivan on this wednesday morning. it's right around, just coming up to 5:30 a.m. eastern time here on the east coast kicking off this half hour with stock futures pointing to a sharply lower open to start the day. you can see the dow industrials are off the worst of the

session, implied down by 400 points, the nasdaq implied down by 200 points. all of this was on a broad based rally yesterday that saw the dow and s&p 500 post their best day in more than a month the dow surging more than 640 points to close the day off, about a 2% gain overall. in the bond market, yields a key focus especially with jay powell going to capitol hill here 10 year drifting a little bit lower, 3.22% let's hit on oil prices, on news this morning that president biden will ask congress to suspend the federal gasoline tax until september. crude oil prices right now for u.s. benchmark wti $104.39 down about $5 plus at this point, 4.5% losses. 4% losses for ice brent, $1.92

off about $4.73. that risk aversion trade is spreading into cryptocurrency prices bitcoin still trying to hold that line at $20,000 right now, bitcoin prices 20,259 that's off 4%. either 1,081 and change. seeing losses there, 5%. all the smaller tokens taking a hit as well. in europe red across the board as the trading day gets under way. you're seeing julianna tatelbaum because she has the latest from the european trade good morning >> dom, thank you so much. that risk aversion you described in the u.s. markets is very much present in europe as well. it is red across the board we have bounced off the lows in some of the key markets. but still, as you can see, heavy selling the german index down

1.2% the ftse under performing in italy down about 2.5%. in switzerland seeing more demand for the cyclicals this is what the split looks l like you have everything in the red with the exception of food and bev. oil and gas down 3.7% in lock step with the price of oil autos taking a hit down 3.3 and chemicals down 2.6%. we heard from basf this morning warning about the second half of the year, that stock is down more than 5% finally fixed income we are seeing more demand for fixed income markets as investors pull money out of equities they seem to be putting some of it into bonds, yields lower across europe. 10 year gilt here in the uk

2.5%. >> thank you very much now to your top corporate stories. silvana is back with those a group of uber and lyft drivers are accusing the two companies of price fixing as part of a new lawsuit. the drivers claim if they were able to offer lower prices to passengers, consumers, they were be provided with the most competitive compensation the suit adds by preventing drivers from doing so, uber and lyft harm competition with consumers paying more and drivers earning less the complaint misconstrues the fact and the law, uber said. lyft did not have a comment. boeing warning supply constraints will likely continue into next year saying labor shortages and sub

tier suppliers are an ongoing issue. adding demand for freighter jets did not get impacted during the pandemic and he believes demand for air freight will continue for some time. and amazon's audible platform striking a deal with the obamas, reaching the deal with the former first couple's higher ground media company the companies didn't provide details on what projects may be in the works but said higher ground material produced under the deal won't be exclusively available on audible that comes after the obama's podcast pack with spotify came to an end. now fed chairman jay powell is set to testify before the senate banking committee at 9:30 a.m. eastern time this morning this will be powell's first appearance on capitol hill before lawmakers since initiating the fed's largest

interest rate hike in three decades. a decision that will likely be scrutinized from every angle possible today and then more tomorrow when he goes before the house financial services committee. joining us now is former federal reserve vice chairman and governor roger ferguson, cnbc contributor. roger good morning thank you very much. we have to get your insights on this when you were a fed official going before congress, what exactly are you preparing for and how is jay powell going to prepare for what could be expected to be a massive grilling from senators this morning? >> i think chairman powell is preparing for two things, first to get his message out remember this always starts with a prepared statement so i think he's going to use that to lay his message and be very, very clear and then, obviously, preparing for what could be a tense hearing with questions around,

you know, inflation, obviously, front and center the fed moving very aggressively at its most recent meeting and though it didn't get much notice in public, a monetary policy report that suggests perhaps even much more to come, using word unconditional about his commitment to reduce inflation so i think he's expecting a tough set of questions and hopefully -- i'm sure he'll have the answers he needs. >> you've been behind the board room doors before, you're an insider there. i wonder how much more, how much strategizing could the fed do right now to further tackle this problem, or do you think the fed is doing just about all it can >> look, i think the fed is doing what it can in so far as it only has a couple tools, three tools, and they're using all of them first moving monetary po policy, as you point

out, aggressively and signaling more to come with the notion of unconditional movement to reduce inflation. secondly the words are consistent with that message across the board with the notion of 75 basis points possible for the next couple meetings again historically high, aggressive moves and obviously moving the balance sheet as well. that third one people approximate roughly the equivalent of a 25 basis point tightening i think they're doing all the things they can do, the challenge, as jay powell points out, some of the matters are out of their control i've been listening to your reports, boeing, toyota others, talking about supply chain issues that may last well into next year. obviously energy prices driven by global forces so i think the challenge, while they're attempting to do everything they can, as jay

powell has said and others have, not everything is in their control and that i think creates a challenging situation for them. >> roger, if you look at the way things are shaping up right now, we talk about the types of questions that jay powell is going to face. it was maybe nine months ago you and i both know that recessions are inevitable, economies move in cycles, they expand and they contract the worry right now has now tilted mitt romney much more towards a story about a recession in the coming months or perhaps maybe by next year. how exactly then do you square and tell that story to elected lawmakers when you know a recession is coming but that it might not be the worst thing in the world if it does >> well, i think the way people should talk about it is we see the great pain of inflation. inflation is a hidden tax on, you know, many, many lower income people, lower income

people constituents are complaining about it the congress has given the fed the mandate to keep price stability and frankly they've done that because they know, during these difficult times that there may be some pain. i think the other thing that jay powell will say is he has already talked about a pretty narrow path towards a so-called soft landing so he's talked about soft landing, soft-ish landing, talked a little bit about pain so i think he's going to remind people he's trying to be consistent and balanced in his message. i think he's going to attempt to avoid the recession word but i think you'll hear things such as bumpy, pain, and importantly this is the price we must pay to get inflation out of the system and he's also going to say something else, which is in order to have sustainable job markets, which is the other part of the fed's mandate, they have to drive inflation out of the system he's going to, i think, link it

to the dual mandate as well. all of that will be the best he can do none of the lawmakers are likely to embrace this notion of a slowing economy maybe tilting into recession that's why you have an independent central bank. >> it's very interesting of course, that balancing act, roger, the fed has to do between a decently strong job market always great to get your thoughts, we appreciate it coming up, ad executives gathering along the french rivera amid a gloomy forecast. not for the weather but for spending in the sector julia is there talking with tiktok's blake shenley on the social media star's strategy all of that when "worldwide exchange" comes back after this break.

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i had no idea investing regularly could add up this much! ♪♪ go to investor.gov today to learn about compound interest and other valuable investment information. before you invest, investor.gov. welcome back to the show be sure to tune in to mad money tonight as jim crammer sits down with meta ceo mark zuckerberg in the metaverse. the two talking about mark zuckerberg's $10 billion bet on the virtual reality world and his ultimate vision for it, a

must watch interview there that's 6:00 p.m. eastern time tonight. again, jim crammer mad money tonight with mark zuckerberg from the metaverse to france if that's a transition ad executives are gathering at the cannes festival talking about the hurdle and attention for your money julia is live from the french rivera at the festival with the plum assignment. julia, over to you >> reporter: thanks so much, dom. that's right i'm joined now by blake khanly, tiktok's global head of business solutions blake, thank you for talking to us here on the blustery day at the festival. >> a little unusual, thanks for having us. glad to be here. >> reporter: the big question everyone is asking here at the cannes lions festival is what's going to happen with the advertising environment.

what's your thoughts with the potential recession, inflationary concerns, et cetera. >> we're all here, first time we've been together as an industry for three years there's a lot of energy we're here to celebrate creativity in advertising. here to celebrate creators, influencers, things like that. so it's generally a positive environment. i think there's uncertainty in the economy. globally different parts of the world have different impact based on what we're seeing around energy prices, supply chain and so on and some categories get affected differently. generally people are optimistic this week. from a tiktok perspective we're in a position to be in a maturity cycle we're growing. having great conversations it's our second time here, first time was three years ago and the reception has been amazing from brands and agencies. >> reports that tiktok will generate about $12 billion in revenue this year triple what

tiktok brought in last year. can you weigh in on the company's growth or that kind of revenue projection >> i can't way in on the projection we're seeing growth, based on our maturity cycle, three and a half, four years old as an organization, a business we're fortunate the industry is behind us, spending time understanding how they can leverage our platform to accomplish their objectives. >> what about navigating the apple operating system changes and challenges for your rival companies such as snap and meta. >> when apple made the changes, the industry had to do a reset the good thing about tiktok, we built our solutions. our targeting is based on user consent. so we took a conservative approach to proivacy and how we leverage data. so we looked back to see how we wanted to affect users and brands >> there have been negative

headlines about how tiktok and their parent company in china had access to the data of users here in the u.s. and wasn't responsible about shifting where that data was stored a lot of negative headlines. i'm wondering how that's impacting your conversation with advertisers. are they concerned about user's data privacy as well asafety. >> glad you brought it up. user data privacy is number one for the company. we've been putting a lot of resources against that for years now. i saw some of the headlines, we're looking at the headlines from an advertising perspective, the question comes up and it's been brand safety, user protection, community safety has been the number one conversation for two years now. so we spent a lot of time and energy on resources, educating the industry, working with third parties to give people confidence that they weren't trying to lead in that area. >> there's this expose by buzz feed, headlines in "the new york times. are these issues raising

concerns for advertisers and what do you have to do to make sure that doesn't hamper your growth >> we have to deal with everything so we're moving forward in everything, especially u.s. data and european data but data in general we have to protect that. tiktok is not based in china, we store all that data outside of china. so some of the information there is a little misleading that's okay. advertisers ask questions we give them full transparent answers and for the most part they're comfortable with that. >> there's so much to discuss here we only got started i hope we'll get a chance to talk about tiktok's phenomenal growth >> appreciate it. >> back to you. >> thank you for that, julia blake, thank you as well. a big bad 2022 for big tech. the steep losses facing some of the sector's top players and how much money has been wiped away thanks to that drop. and why the ct cldseorou see a

bounce back. when we come back after this in any business, you ride the line between numbers and people. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities. it takes balance. cla - cpas, consultants, and wealth advisors. we'll get you there.

welcome back to "worldwide exchange." time for sector nomics segment yesterday's gains brought the major averages off their lows, still a long way to go before they return to their starting positions for 2022 the s&p is still trading around 20% off the all time highs we notched in the first week of the year and the technology sector has been one of the biggest laggards down more than 25% on a year-to-date basis and almost 30% off its own high back in late december. how do those translate into total market capitalization markets. a firm looked the entire s&p has $10 trillion losses from the january highs to lows of last

week and to get an understanding what stocks are leading the losses, it's a weighted index representing the biggest of the big companies. according to the data, the largest individual loser is apple so far that tech giant has lost around $850 billion in market cap alone from the s&p's high back in january to its low last week that's equivalent by the way to losing a visa or exxonmobil more moderna. the top five and ten losers account for 3 and $4 trillion worth of market cap losses and just 25 companies, including apple, make up well over half of the s&p market losses through the recent volatility. as we navigate the current environment, the changes in company's market values and those valuations themselves are one of the interesting metrics to watch, especially for those

tech behemoths let's bring in jeff killberg from sanctuary wealth. i just laid out that tech state of play if you will. is technology, in your mind, a buy right now given those losses >> dom, see the reset in valuation technology, specifically to your point look at a name like amazon, meta, talk about apple, that repricing or anykneecapping is interesting this is the time to own technology, what's the beacon, guiding light in owning sectors. i'm a big believer in owning sectors of strength. the ten year note has been the beacon, guiding light and it went from 1.53% to start the year all the way up to 3.49% it just kissed 3.5%. as we see it come back down, trading about 3.21

that allows investors to come back to this massive repricing like our friends at white chart just laid out. i do own it but the darling we own in our portfolio is palo alto networks. be specific in owning sub sectors of technology. you cannot walk away from technology but you will see this market specifically in technology heel as the ten year yield comes back to 3%, potentially touch under 3% this fall. >> talking about palo alto networks this is now an environment where there is dislocations, certain underperform es and outperformers within that broader technology trade i think if things like cloud com computing, cyber security, what is that trade? is it semiconductors, is it software, is it cloud, is it cyber, is it fin tech? there are etfs at play these

days where do you take that spot? >> i think you have to embrace the dislocation. seen a ton of volatilities look at the industrial name, american airlines, boeing have been cream crack erred delta, american airlines having the ability to get legs here but it's all about earnings coming up. think about the next seven trading days this process we're in right now this is a bottoming process. it doesn't feel good, john pointed out yesterday a pop like we had of 2.5%, typically you see the wind come out of that sail that's what we see today. this is a bottoming process. you have to be prudent, allocate here, no time to be afraid talked to a lot of advisers inside my network they're embracing this i know a lot of people are talking about a recession, i don't see a recession, one of the most underappreciated components of the market i know we're focused on the fed

chairman today and tomorrow, talk about rate hikes but the most under appreciated part of this is the fed still has a $9 trillion balance sheet. the tightening they're talking about by reducing their balance sheet it would have been impactful if they reduced $47.5 billion in 2005, 2006, when their balance sheet was only $46 billion if they reduced $47.5 billion prepandemic when it was $4.6 trillion now with a $9 trillion balance sheet that is the safety net. the bottom process we're in you have to lean in. i like oracle and intel. down year to date, but if you look at the energy sector, look at the industrial, look at the earnings expectations, the bar is so low, dom, this is the time to wake up, smell the coffee and buy some of these blue chip tangible names >> jeff kilburg out there.

thank you have a good day. >> you too. that does it on "worldwide exchange." markets right now are going to give up the bulk of the gaines we saw yesterday the nasdaq implied lower by 203 points "squawk box" picks up the coverage coming up next. what do you think healthier looks like? cvs can help you support your nutrition, sleep, immune system, energy ...even skin. so healthier can look a lot like...you. cvs. healthier happens together. this? this is supersonic wifi from xfinity. it's fast. like, ready-for- major-gig-speeds fast.

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good morning and so much for tuesday's rally. stocks set to surrender most of the gains. what is moving right now as dow futures are down nearly 400. news breaking just an hour ago, president biden calling on congress to suspend the federal

gasoline tax but also not harm the highway trust fund can both be done take you live to washington with more and fed chair, jay powell headed to the capitol hill grill. he'll defend the fed's biggest rate hike in 30 years to a senate committee it's wednesday, june 22, 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 -- or at least i am i'm becky quick along with brian sullivan, joe and andrew are off today. brian it's good to see you this morning. thanks for being here. >> sure. my pleasure. let's look at the u.s. equity futures as brian mentioned you are seeing a big give back from yesterday's

s.