sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. . it is 5:00 a.m. at cnbc and here is your top five at 5:00, wall street struggling to keep any relief rally alive as stocks track for their worst first half since 1970 weakness here but strength overseas china set to close out one of its best months in years is it too late to ride that wave higher nato trying to boost its military might, adding two new member nations this as a week-long summit convenes in madrid. disney board of directors has faith in its ceo, giving bob

chapek three more years to make his vision a reality. and then, tesla making some cuts to several hundred jobs in the california factory it is wednesday, june 29th, this is "worldwide exchange" on cnbc good morning, good afternoon or good evening and welcome from wherever in the world you may be watching i'm bernie rian sullivan, thank watching another miserable day for most stocks out there. futures are mildly higher. dow furthers up about 37 points. but as we have noted, futures at this hour we'll show them to you but they're not great indicators, futures were higher this time yesterday as well but investors continue to sell into most gains that we see dow ended

up down 500 points on the day. nasdaq down 2% the s&p 500 remaining on pace for its worst half to a year since 1970 with a more than 19% decline. consider that, on pace for a 38% drop this year likely won't get that bad, let's hope not but that's the pace we are on the nasdaq on pace for its worst quarter since the 2008 financial crisis and when nearly every single s&p 500 sector in correction or bear markets, there remains one relatively unscathed and that is utilities actually, the only sector not more than 10% from the recent high. utilities seen as a safe or defensive play stocks down overall as bond yields have risen this year and borrowing costs continue to climb. the ten year down at 3.15% crude oil as well, flat to

slightly down this morning but overall, maybe this can be an rbi but we have a better one for you. oil is on pace for itself ninth straight quarterly gain, the longest quarterly win streak ever going back to 1983 when we started tracking it. and a reminder opec meets virtually tomorrow, no change in their policy is expected crypto both bitcoin and either lower now, they're onpace for the worst since november 2019. you have to call it like you see it, the numbers don't lie. let's check the numbers and the early headline trades in europe. roseannena lockwood is in the news room. a lot of red on your screen as well. >> reporter: yes looking at these european markets we have a lot of red

across the sectors what's happening here, largely an inflation story want to point your attention to the far side here, the dax in germany down 1.3%. very different stories going on, large inflation data out of spain this morning, headed into the double digits not seen in many decades for that country. a surprise to the down side for germany. preliminary data out with german states, lower than expected, .1% or so. this is ahead of more euro zone data, inflation concerns feeding into the equity markets. come back to the fixed income markets. the ftse 100 down, the nato summit in madrid and the meeting in portugal. looking at sectors this morning. basic resources has been an outperformer of late especially with the latest china news, not so much this morning seeing it not even on the board currently.

oil and gas, those benchmarks, that's leading the sector up higher in europe, autos did well off the china quarantine news yesterday. i did promise you yields let's give you a look t a those as well as you know the 10 year bond, it is the benchmark for the euro area it's now at 1.59 it is falling off by quit a few bips oil and gas, the place to be all yearlong, who thought it let's stick with markets and your trading day ahead after to do

that to get inflation down my base line is for growth to be slower this year than it was last year, 5.5%, which is extremely high we'll see some slower growth this year, but that's okay >> i think that sums it upper perfectly. certainly uncertainty. what does that mean for stocks given that we have already been slammed by nearly 20% on the s&p 500. joining us is ana hahn from wf securities we're hearing one fed president saying things are grim when you hear that kind of talk does it change the way you and your team think about investing in u.s. stocks right now >> good morning, brian absolutely i think when we think about what the gdp for the u.s. outlook is,

that does drive sentiment and sentiment is a big part of how equity performance goes. our base case, that is to say we think it's more likely than a coin flip that we see a mild recession by 2023. by mild, when i quantify that, i say somewhere around a contraction of around 1% during the financial crisis we saw a contraction of about 4%. that can weigh on equities but there's a list of near term and positive and negative catalysts that can help the market. >> what are some of those positive catalysts, anna we need good news, something to look forward to. >> sure. household wealth right now is closely tied to equities, historically high, nearly 25%. almost a quarter of household wealth has been tied to equity so a lot of people are looking and scouring for that good news. i think one of those triggers

could be really if the fed gives some indication that we are going to become less hawkish, faster than the market is pricing in currently and for this, that could be maybe if the next cpi print comes shy of estimates, that could be a near term catalyst. for something more sustainable i think we need to see that the two-year treasury yield which can be an indicator of where th market expects fed funds need to get to and fed funds can sort of align here if we can see that the fed is gra grabbing ahold of inflation and re-establishing the credibility that could give the notion that the tightening could be over sooner than later. >> the question i get walking through airports is people say hey is now the time to jump in i've had my eyes on some of the stocks they're down 25, 35%, should i put money to work

don't listen to me, listen to folks like anna han, so i give you the question, should they go dumpster diving for equities >> dumpster diving is one term i would say bottom fishing this surmmer the bottom fishing is cancelled we don't recommend dumpter diving, going into the real performers i know it's tempting, it can be with how down the market is. there's two reactions one can be to get defensive and the other is to go for the hail marys. the hail marys are the beaten up names. to us we don't recommend that. we think they're broken stories and given our base case scenario is a mild recession next year, we think it's too soon to dive for those broken stories instead we recommend toning down the cyclicality in the portfolio

and moving towards looking to the sustainable earnings growth and growth at the right price. >> when you guys change your thoughts and figure that it is time to go bottom fishing or dumpster diving, whatever you want to call it, let us know we'll get you back on and talk about it anna han wells fargo, thank you. we have a lot to do on this wednesday morning. despite a struggling stock and what looks like a bust in the movie "light year," disney is sticking with its ceo. plus tracking china's big stock boom and whether it's too late to go with that ride. and waving the recession red flag, one indicator doing that as we dig into the so-called rule of ten. you'll hear more about that when wex returns.

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welcome back let's get a check on some of this morning's other top stories out there, including another u.s. government move against china and beyond meat keeps trying to get consumers interested in its fake meat. silvana is here with those and more good morning. >> good morning. let's start with the commerce department, adding five new chinese companies to the export blacklist for violating

sanctions and allegedly providing support to russia's military pinterest long time ceo and cofounder ben silverman is stepping down and transitioning to executive chairman of the board, a newly created position. bill ready will be taking his place and joining pinterest's board of directors jim cramer will have more on this tonight on mad money. and beyond meat is preparing to launch a sliced steak product as it looks to boost sluggish sales. the company plans to launch the new steak product this year in retail stores and eventually restaurants. ethan brown tells wall street the faux steak is probably one of our best products to date, brian. how do you feel about that >> i don't want to knock beyond meat i know there's a lot of people that love it

i've tried all these products. i find them all tasting like a block of salt. >> i agree >> that's just my own. >> yeah. i don't know >> i feel kind of like a deer with a salt lick but people love them. >> that's true my sister loves it >> i'll give this a shot with a bunch of cheese, onions and bread. >> yes. >> and we'll do it thank you very much. >> you got it. >> everything with cheese, onions and bread we made it good whatever it is it could be a sock in there. stocks here continue to fall chinese stocks continue to boom as we showed you yesterday in the rbi, chinese markets have been red hot lately. this after the communist party wised up and it looks like it's backing off its failing covid zero policy and easing quarantine rules for travelers

shanghai composite is up about 6% while the nasdaq of china, is up more than 9% so has the outlook improved enough really for you to consider getting back into china? sara is director and client portfolio manager at east springs investments. welcome to the program to what do you attribute what has been a red hot last few months for most chinese stocks >> i think there's a couple things going on, brian first of all, the valuations in the chinese equity space were very, very heavily sold down there were a number of issues, in addition to covid-19. there was also the issues of regulatory reform in a number of sectors like in the education sector, in the internet, ecommerce sector so there's been a lot of bad news i think what's happened is a lot of this is in the price and

investors are acknowledging from here the down side risk is quite limited. we've eaten the worst of the returns and from here things seem to be stabilizing, as you mentioned earlier, china is backing down on some of the covid-19 lockdown restrictions it's becoming more open, travel restrictions are becoming less stringent. so all of that is sort of helping to push the china market forward after all the pain that we've experienced in the last 12 to 18 months so we've seen a pretty sharp recovery >> we've had some of the numbers -- it's been incredible. we had some of the numbers yesterday and don't quote me on exactly the numbers. of the 2,000 or so stocks in the index, 200 were up more than 200% off the lows and the top stock was up 900% off its low. just incredible numbers arguably off some pretty low lows last

year so you wonder how much more gas is in that tank. although the chinese government is probably the only major economy stimulating right now. >> that's right. it is the only major world economy that is stimulating while the rest of the world is in, you know, tightening mode. so we think that is certainly a positive the chinese government is very committed to restoring growth and balanced growth. we know not just growth for growth's sake. we're still not out of the woods yet. the covid-19 policy, the property market as well. i didn't mention that earlier but that's been a huge headwind on the china market. we've seen defaults in the property market sector at levels we haven't seen in the past. but all of that does seem to be bottoming out. we think that earnings stability will come in down the road so we have been amping up our positioning in china and -- but being very specific about what we own like you said we're coming off some extreme draw downs.

>> get more into that specificity. there's three chinese markets. the mainland indexes, primarily owned by domestic chinese investors, in many cases you cannot own the stocks directly as an outside non-chinese investor then you have the hean sang, names our viewers probably know is there one part of the market that you are recommending more than others right now? >> not really. so within each of the pockets, for example, in the offshore china names, the names more accessible to international investors we think the internet ecommerce names look interesting. those stocks have rallied hard over the last six, eight weeks we think that structurally with a consumption driven economy

these types of ecommerce names are very important to the economy. so these are the ecommerce internet-related names, e gaming, cyber security and we're also bullish on the domestic brands, whether it be things like sportswear or dairy products, or food and beverage like the wine in china, those types of names are also looking very attractive to us. >> listen, they're celebrating and maybe they have reason to do it sara after two plus years of hard lockdowns their spendin spree may make ours look like nothing. we'll find out thank you very much. appreciate your views. have a great day take care. still on deck, we're going to dig more into the so-called rule of ten. remember we talked about that a few weeks ago and why it may be

signaling a big slow down ahead. if you haven't heard it, you want to arhe it. it's an interview you don't want to miss. stick around these are the bonds worth investing in. for over 50 years, pimco has reinvented fixed income to create opportunities for investors in every market environment. so, no matter what happens you can build the bonds that mean the most to you. pimco, a global leader in active fixed income.

♪♪ take the world by cloud. accenture let there be change. welcome back let's get a check on headlines outside the world of money and business fran francis rivera is in new york with those >> bombshell allegations made at the surprise january 6th hearing, the former white house aide claiming then president

trump tried to join the rioters at the capitol she said the frustrated president threw his lunch against the wall >> there was ketchup dripping down the wall and a shattered porcelain plate on the floor the valet had articulated that the president was extremely angry at the attorney general's ap interview >> former president trump is dismissing hutchinson as, quote, bad news on his social media platform mr. trump said he hardly knows who this person is and turned her down for a role after she left office and she was very upset and angry. an aide for the select committee tells nbc news they found ms. hutchinson's testimony to be credible and anyone who wishes to provide information under oath is welcome to an fda panel is proposing a modified covid booster in the fall they voted 19-2 to recommend

boosters later this year target the omicron variant. they question whether it should target the original omicron strain or subvariants that make up half of new cases in the u.s. a decision on the boosters could be made in early july. and serena williams was in a three set thriller for the ages in the first round at wimbledon. >> in her first grand slam match in a year, williams is out of the tournament winning the nail biter to harmony tan, saying she enjoyed the match but, quote, not the outcome she wanted when asked if this might be her last match, she said i don't know who knows what's in store. you never know where i'm going to pop up.

at age 40 we'll see if we'll watch her pop up on the court or off, brian >> not quite the outcome but what a match as you noted, francis rivera, after a year off, unbelievable. thank you very much. >> sure thing. straight ahead, we'll get more on the markets and your money and why investors and consumers need to buckle up for what cleveland fed president loretta mester calls a bumpy right ahead. stock futures are up, a bit. we're back after ts.hi

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stocks trying to get a -- well, turn around wednesday, i guess, going falling on tuesday in a big way over concerns around the consumer, pressure not letting up fighting for some momentum slightly in the green. nato leaders convening in madrid as the block hardens its defenses against russia. cnbc is live with the latest who's ready to hop on a private jet? america's ceos, the numbers ahead on how much companies are sending to send their execs around the country you have to hear it, it's happening on this wednesday, june 29th and this is "worldwide exchange."

welcome or welcome back, everybody. good wednesday morning i'm brian sullivan, thanks for being with us let's get right to your money after yesterday's pretty miserable last few hours of trading for most stocks. dow futures up about .1% nasdaq about the same. investors looking into any kind of reason to buy equities, not finding a lot, and digesting new comments from loretta mester who spoke on cnbc europe this morning, saying we are pretty much indeed on the way for a recession. listen >> i expect to see unemployment rates rise over the next few years to a little above 4% or 4.25%. again that's still good labor market positions so i think that's a painful one

in some respects and it's going to be a bumpy ride in some respects but it's necessary we do it to get the inflation numbers down >> when you hear fed presidents use words like painful and bumpy rides and they tone down their language, you have to pay attention. adding she is yet to see any data that would suggest pumping the brakes on rate hikes, at least now. >> it's still going to be a debate, i think, about 50 or 75. we still have a couple weeks to go to look at the data if conditions were the way they were today, going into that meeting. like if the meeting were today, i would be advocating 75 because i haven't seen the numbers on the inflation side that i need to see in order to, you know, think that we can go back to 50 increase i think right now i would be advocating 75. but again, we don't have to make that decision today. getting interest rates up to

that three to three and a half percent is really important that we do that and do it expeditiously and consistently as we go forward it's after that point where i think there's more uncertainty about how far we'll need to go >> that is cleveland fed president loretta mester speaking to cnbc this morning. the nasdaq 100 fell nearly 4% yesterday. a big week for stocks last week, one of the best in a long time not the case this week as well the rallies, you heard that from so many strategists on the program the last couple week that's what investors are doing. what about the oil market? yesterday price caps that had been thrown out certainly impacting the price of oil again. we're up back crude oil back to $112 a barrel. u.s. oil is in for the ninth

straight positive quarter. going back to when records were kept in 1983 oil was negative yesterday so it is a lot easier to go up from zero than down but either way, a heck of a win streak for oil nine straight quarters where the price of oil has gone up it may stay that way speaking of oil and gas, we have some headlines crossing moments ago from shell's ceo ben van burton, who's speaking in singapore, saying it will be impossible to replace europe's russian pipeline gas supplies with liquefied gas alone and sees a, quote, problematic winter ahead, also speaking and saying he sees an ever tig tightening oil and gas market as well as upward pressure on prices for some time to come and burton also says we have to face some uncertainty in markets for some time to come.

so a couple of big headlines crossing momentsi ago from the ceo of shell echoing what other executives have said, suggesting recently that oil prices may be high for some time to come as lack of investment in oil and gas over the last few years is coming back to bite the markets a and, of course, bite you the consumer. well, president biden and fellow nato members kicking off in madrid, spain the president saying a short time ago that the alliance will make sure it is ready to meet threats from all directions. kayla taushe is on the ground. what have we learned, if anything >> reporter: brian, president biden was greeted a few moments ago at the opening of the summit

where the alliance is preparing a dramatic upgrade to military forces across the transatlantic as it faces that increasing threat from russia here's president biden addressing that just last hour >> together with our allies we're going to make sure that nato is ready to meet the threats of all directions across every domain and putin has shattered peace in europe, attacked a very tentative rule based order, united states and our allies are going to step up. >> reporter: nato is increasing its rapid reaction force to 300,000 these are troops on stand by ready to be deployed within a matter of days, that is meant to deter russia further. and last night turkey ended the opposition to sweden and finland joining the alliance after they reached a deal pledging better vigilance against groups turkey

sees as effort tos it will be the largest since 2004 when countries bordering russia were added. allies agreeing to defend new land and sea representing about 10% of the area of the united states in exchange for nordic defenses totaling about $14 billion. this morning leaders are set to hear again from ukraine's president, volodymyr zelenskyy, in prior addresses to this organization he has made urgent and fervent pleas for more weapons and assistance the group has been reluctant to engage in anything that could be seen as provocation or direct conflict with russia but four months into this conflict we'll see where they come out today. brian? >> as far as membership goes, kayla, how fast could sweden and finland become members does that happen in madrid what's the timeline for their membership >> well, it will be processed

here in madrid there will be ample discussion about it, the secretary general promised it would be a swift process, perhaps unprecedented in nature but still expected to take several months because this is a change to the treaty which means each of the country's legislatures must sign on, which is a time sensitive process. we saw the quickest back in 2009 when crow way sha and albania joined but that took about 12 months so it could be something we see happen this fall. >> kayla in madrid on the ground at the nato summit we're glad you're there. thank you very much. let's get back to the economy, do you remember loyal viewer a few weeks ago our rbi we brought you something called the rule of 10 it was the idea that when gas prices and mortgage rates add up to ten or more a major slow down or recession follows well, we are there right now,

especially in many parts of america. so let's bring in the author of the rule of ten, don, for our viewers that did not see that segment it's a simple but ingenuous in many ways when gas is 5 bucks and mortgages are 5, wherever we go, those two things add up over 10, bad things tend to happen. >> yeah, brian that's right i don't think it's a really detailed concept it's simply that all companies and consumers use energy and all companies and consumers use money and when the cost of both are rising, the economy tends to slow down. so we've hit that historical threshold where consumers say enough >> yeah, and, of course, in the past it probably would have been the rule of ten would have been

an 8% mortgage rate or $8, 8% mortgages and $2 gas because gasoline prices were cheaper for longer now we have gas making up half of that gas prices are 5 and mortgages are 5. have you found, digging in, don, that it matters what the mix of those two numbers are? in other words, how we get to ten, does that matter? >> it matters less than you would think. the reason is, that both of these series tend to be leading indicators so the interesting feature of this sum is that the relat relationship tends to lead by about a year when consumers think there's a shock that's relatively short term, they might dip into savings or run up credit card balances those are ways to deal with gasoline price increases that you believe are temporary. we do see some of that activity happening today. consumers are dipping into savings if we look at the cash

cushion built up over the last two years that is starting to run down also revolving credit is starting to move up. and so, it's less about the mix than about the total shock, but the important feature, the interesting feature is that both of those lead and that's what we're setting up for over the next 12 months. >> is it -- i hate to use the word lock like in sports nothing is ever a lock but based on history, is it a pretty good shock hanging out for over ten for a period of time not guarantees but ensures a recession or major slow downs ahead, don >> right so there are periods you have a slow down but not a recession. but we've certainly, based on history, entered a challenging period when you have these type of conditions. and so, that's where we are sitting today. so a lock might be a strong statement but the idea that the economy is going to have a

challenging year and we've already started that, and it's likely to continue, i think, is pretty much said at this point >> yeah. pretty interesting stuff don miller on the rule of 10 we love bringing it to our audience vis-a-vis the rbi thank you for coming on the program early this morning and keep us updated on what you're seeing, don, thank you very much. >> thank you. the rule of ten, folks something to follow. coming up, do you ever dream of flying private? ceos, they don't have to dream the huge numbers companies are spending to keep their execs on private jets as we head to break other key headlines happening right now. speaking of having to fly commercial with the masses, delta airlines allowing customers to change their flights for free over the fourth of july holiday weekend. the move coming as airlines struggle to meet demand and

cancellations grow, summer travel picks up. remember two years after covid woe saw change is free anyway. cvs announcing it's removing an purchase limit on contraception pills. and an fcc commissioner asking apple and google to remove tiktok from their app stores brendan carr sharing a letter to the two tech companies making the request citing data security concerns that seems like a really big story. maybe we'll get more oten ch check today, who knows "worldwide exchange" is back in a moment

welcome back to "worldwide exchange." today is june 29th and while it may seem like any other day in early summer, actually a lot of landmark business related events have taken place on this date in history. in fact, happy 15th birthday to the iphone first iphones were sold 15 years ago today after apple first launched them in january of 2007, since then more than 2 billion iphones have been sold and changed the way we live, probably in some good and bad ways two years later in 2009 on this day, a judge sentenced bernie madoff to 150 years in prison for his ponzi scheme

and also on this day back in 2015, microsoft released its windows 10 operating system ushering in a more unified and integrated user interface as they would say so june 29th one of the biggest days in business news. who knew well, you do now now to things happening today on june 29, 2022 tesla announcing it is closing its office in san mateo, california and cutting 200 jobs there. workers were tasked with labelling videos from tesla cars in order to improve their driving assisted systems u.s. authorities reportedly stopping a ship traveling from russia to new orleans over the ship's cargo according to "the washington journal" and "reuters" the tanker was owned by a greek ship owner. the reports say the ship was

carrying russian oil and fuels violating the embargo on russian energy put in place in march disney announcing it is extending bob chapek's contract by three years the company's board voting to keep chapek on its staff chapek facing a rocky tenure so far including engaging in a political battle with organizers in florida, the company's stock is down more than 35% year-to-date and the new movie "lightyear" appears to be for that movie a bust. let's get random but interesting today on something we all wish we could do right now, and that is fly private while airports are packed and flight delays are happening all over the place, those who fly private face none of that. you park, walk into your terminal and within 10 minutes

you're in the air. if you're a ceo or top company executive, this is usually a huge perk of your job you're not sl sleping in for a flight. even with your company dropping $10,000 or more per hour, despite that high cost, the private jet perk is booming post covid. the final times crunched iss data and found out what companies are paying up. overall the average spent on top executives rose 36% last year to $170,000 that number is small potatoes overall. because 15 companies spent more than $500,000 each last year to ferry around their top execs eight of those spent more than $700,000, all just on private jet travel and the biggest

spender of all, was facebook, meta platforms they found that meta spent 1.6 million just on private jets much of that likely to fly mark zuckerberg and his family and business lieutenants around. chicken producer tyson foods came in at second at 1.3 million. that's a lot of wings you got to sell and lock heed martin dropped more than a million bucks on private flights. reporting one third of that was to the ceo's personal flights to his home out of state. ford, apple, las vegas sands, warner brothers and fedex also on the list of the biggest jet setters. if you're a shareholder, this is your money public companies don't have money. they have your money now to be fair, does anybody expect tim cook to fly

commercial no way he'd be constantly bothered by people offering tips on how to fix or make the iphone better, but as a shareholder these are numbers you might want to pay attention to or maybe we're just jealous. let's be honest. random but interesting on deck, stocks ongoing struggle showing little signs of abading. lindsey bell is here to lay out why she says the market may be closer to the bottom than you think. follow our podcast while you're stuck at the airport for hours with thousands of others with your closest fenrids and brighten your day. we're back after this. and you had to wrestle a massively complex supply chain to satisfy cravings from tokyo to toledo? so you partner with ibm consulting to bring together data and workflows so that every driver and merchandiser can serve up jalapeño, sesame, and chocolate-covered goodness with real-time, data-driven precision.

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- common percy! - yeah let's go! on a trip. book with priceline. you save more, so you can “woooo” more. - wooo. - wooo. wooooo!!!!! woohooooo!!!! w-o-o-o-o-o... yeah, feel the savings. priceline. every trip is a big deal. let's round out the show again by talking macro markets and your money stocks trying to end the month and the quarter on a high note, good luck. the s&p 500 tracking its worst start to a year since 1970

it's been midnight cowboy, won the best picture at the oscars milk was $1.32 a gallon. gasoline 39 cents a gallon top rated tv show was "marcus well by m.d." i was also not a glimmer in my parents' eye joining us is lindsey bell, also a cnbc contributor i mean, trying to make a little bit light of it because what else are you going to do it's so painful, how could you not, lindsey worst half since 1970, tell us there's nowhere to go but up. >> i don't have a crystal ball, brian. but there are -- there is the possibility that we're closer to the bottom than we think if we look back at history, for example, of all the bear markets that we've seen since 1946 we've seen them bottom at about

a 27% decline. if you're looking at a garden variety decline, a decline of 20 to 40% so we got down about 23% i know today after the recent bounce we're down about 18, 19% on a year-to-date basis but -- so we could be closer to the bottom but it's going to hinge on what the fed does, what happens with inflation and economic data and the consumer going forward. that's what we have to keep our eye on here. >> cleveland fed president loretta mester speaking to cnbc europe today making headlines using words like painful, she used the term bumpy ride you know fed heads watch their words really carefully and using words like painful, you don't hear that much from a fed head that doesn't give me a lot of confidence. >> yeah. i mean, the fed is so, so

focused ontaming inflation i think themajority of her message, though, was in line with the rest of the fed speak we've been hearing lately. it's no surprise when she said she was hoping for that 75% or 75 basis point hike in july. the market is already pricing that in. more concerning is what happens in the second half of the year and that's going to depend on inflation. if you look at places like goldman sachs, they're expecting inflation to come down the next several months but really ending the year around 6%, that's high versus historical standards. for the fed to tame it further from there, they have to be aggressive the one thing i'm going to be watching is what happens in the august time frame because they have the july meeting where they'll move rates and they have september. august they've got the jackson hole symposium we'll hear a lot of speak from them about their plans moving forward and i have to wonder if inflation is going to run hot,

which we don't know, are they going to do an intrameeting fed hike that's what i'm going to watch: it could be the summer surprise if you will. leave us reason to be optimistic aside from we might be getting close to the bottom. if you're a ten year investor i imagine you want to buy lower. every drop in the past 50 years has ultimately been a longer term buying opportunity where you get stocks at a discount to what you previously would have paid. >> yeah. i say look at the market's history. it's always recovered from bear markets in the past, right but you have to be that longer term investor. the good news is here we could be going into a recession. we're already in a bear market with corporations and the consumer in really solid positions. corporations have more than

double crash they have after rebuilding from the great consumer crisis. the consumer has more than 2 trillion on their balance sheets which they are dipping into to offset some of the higher prices it's a better place to start from than where we started in early 2020 >> lindsey we'll leave it there, well said. thank you lindsey bell of allied m f e ownts. i'ofthsh tomorrow, i'll see you friday squawk is next and some you grow to rely on. these are the bonds worth investing in. for over 50 years, pimco has reinvented fixed income to create opportunities for investors in every market environment. so, no matter what happens you can build the bonds that mean the most to you. pimco, a global leader in active fixed income.

good morning, loretta mester telling cnbc overnight how big of a rate hike she expects in july

>> going into today, if the meeting were today, i would be advocating 75. >> more of her comments straight ahead. a vote of confidence for bob chapek, disney announcing it extended the ceo's contract for three years. cost cutting under way at tesla, the company cutting about 200 jobs in its auto pilot division and closing an office in california. it's wednesday, june 29, 2022 and "squawk box" begins right now. good morning, welcome to "squawk box" here on cnbc. we're live from the nasdaq market site in times square i'm becky quick along with joe kernen andrew will be joining us later this morning he's live from the aspen idea festival with a