it's 5:00 a.m. on wall street here is the top five at 5:00 stocks picking up where they left off after the worst start to a year in five decades. futures are down again to kickoff july. crypto getting hit bitcoin off the worst month on record it is back under 20k right now a rough quarter, month and year chips taking the big dip since the financial crisis one big ceo is out with a warning to congress p. and meta platform is tightening its belt as it faces

fierce headwinds. later on, kohl's abandoning plans for now to take itself private as the deal falls apart. it is happening on this july 1st and this is "worldwide exchange." well, good morning, good afternoon or good evening and as always welcome from wherever in the world you are watching i'm brian sullivan good friday morning, i think welcome to july. let's kickoff the first day of the month and quarter and second half of the year with the check on futures and they look like they did on the last day of the first half of the year down across the board. not a lot. dow futures down 90. nasdaq down 50 no new month pop for the markets for now. by now, you know the stats s&p coming off the worst first half of the year since 1970.

nasdaq and nasdaq 100 coming off the worst quarter since the 2008 financial crisis dow and russell since the worst crisis in 2020 when the pandemic lockdowns hit. down 16% from the highs. nasdaq is down twice that. more than 30% from the record high one reason is bond yield and interest rates soared this year. right now, yields are down a bit on the 10-year treasury. back under 3%. if you want some good news and what has been a tough day a minute in the show is mortgage rates should stop moving up with bond yields holding steady over the last two months. first half of the year brought historic in energy crude oil turning in nine straight positive quarters for the first time ever or at least until we started keeping records in 1983. oil is up 40% this year.

little bit of a different story for natural gas. fell 33% in june that is nat gas' worst month since 2018 nat gas is used in so many things not just making power. it is much higher than it was one year ago more than double. crypto coming off its worst month on record with bitcoin losing 38% of the value. similar for ethereum falling about 47% in june. bitcoin back below $20,000 right now. ethereum is just over $1,169 per coin we will have more coming up in a bit. let's get a check on the overseas action and headlines and find out if they fared any better in the first half of the year with julianna tatelbaum in london julianna, good morning >> brian, good morning first on the trade this morning, we started out the quarter and half in negative territory as you see here, things have

turned positive. momentum building throughout the course of the morning. we got some decent gains on the dak and cac 40 modest, but in positive territory. spanish and italian in positive. ftse 100 crossed into positive territory in the last half hour. swiss market is down 0.5%. you asked how we did over the course of the first half stoxx 600 traveled 16% lower in the first six months of the year that masked divergence here in the uk, ftse 100 was particularly resilient we ended 3% lower for the first half that is in comparison to the dak dropping 20% uk market index energy to financials we know what happened to energy in the first half of the year. back to the day's trade. this is the picture. a split board. retail bouncing back retail has suffered in recent trade. we had a couple of big profit

warnings the last couple weeks from asos and online retailers a bounce back in the sector. utilities is catching a bid at 1.4% basic resources is down 1.3% tech stocks down yesterday 1%. brian, back to you >> julianna, thank you very much now let's get a check on the top corporate headlines happening right now and including facebook parent company tightening its corporate belt bertha coombs has that and more. >> good morning, brian micron with shares this morning. the ceo warning that the demand environment for the industry has weakened in response, the company is taking drastic action to moderate supply growth for fiscal 2023 and slashing guidance for the current

quarter. micron with revenue of $7.2 billion. adjusted eps is coming in at $1.33 a share. and facebook parent meta platforms not talking about pink slips, but cut plans to hire engineers 30% this year. that according to ceo mark zuckerberg during the all-hands meeting yesterday. zuckerberg calling the downturn the worst he has seen in recent history. meta is reducing the hiring target for engineers in 2022 to around 6,500 from the previous target of 10,000 in addition to the reduced hiring, the company is quote turning up the heat on existing staff unable to meet more aggressive goals zuckerberg telling employees quote realistically there are a

bunch of people at the company who shouldn't be here. that's a way to get team spirit going. another manager adding, we are in serious times here and headwinds are fierce. and elon musk is currently on his longest stretch without posting to twitter in nearly five years his last post was on june 21st musk normally is a serial tweeter and has not gone more than six days without a tweet since january of 2018. this, of course, as musk looks to complete the $44 billion deal to take twitter private. maybe he is getting sleep for a change, brian? >> sleep what's that, bertha? what is this sleep thing you speak of right? we know that by the way, anybody else going to the mark zuckerberg school of corporate moral boosting

is he a pirate the beatings will continue until morale improves? >> that's not the best case study. >> not when you tell people to come back to the office and now many of you shouldn't be here. bertha coombs, we're glad you are here thank you very much. let's get back to the markets and money and kickoff the first guest with a history lesson as we ledhead into the second half of the year. s&p fell 25.6% in the first half of the year. the biggest first half decline since 21% drop in 1970 by now you know that did you know this? before this, going back to 1932, the s&p 500 has fallen more than 15% five times if you want to feel better in the tough numbers, know this in each of the years, '32, '39 and '62 and 1970, the s&p

bounced back with the average gain of 26% and median rise of 15%. a small size we're trying to find some glimmers of hope let's bring in delano saporu you can't blame a guy for trying to find a couple of positive stats, can you >> good morning, brian. can't b finding positive stats the fourth quarter with headwinds ahead of us. you are right. we are looking for the rose in the thing if you look at projections. that is holding up well. we are seeing rising 8.8% this year and 9.3% in 2023. we are holding up for s&p 500 companies. if those forecasts come down, we may see another leg down >> listen, i don't know

everything i don't know that much to be honest, delano i know this. stock markets go up over long term they have painful periods where they drop for a year or a decade like the 1970s stocks do go down otherwise nobody would invest in the equity market. is there anything you are seeing that gives you optimism for the next six months or six years >> yes you know, you mentioned a bit about that one thing is if you get a shallow recession, everyone is bracing for rough times ahead. if we wita shallow contraction n q q1:if we come in shallower and we shift and inflation and peak projections are rate rising and

we get hawkish, we see the market get a little better and less volatile in q4. those areas are what we look at and younger investors need to look at the portfolio to see if there is a rebound energy performed well in the last year. now there are valuations for the growth portfolio that has been hit hard over the last year or so investors that are younger, that timeframe, this is an opportunity to look at companies like meta or apple that are cash flow well and strong balance sheet in the rate rise environment. >> well said i have a sneaky feeling, delano, i'll make a bold prediction that apple will still be a publicly traded company five years from now. wild prediction. delano, thank you. be well. we have more to do on this

friday when we come back, turning up the heat in the buy now pay later space. we speak to one to give klarna and firm and apple a run for the money. and kohl's deal to go private is falling apart what is happening? not everyone is a seller these days because there is some big-time insider buying going on we will bring you the top five insider buy stocks this week it is mi uascongp "wex" rolls on after this.

hybrid work is here. it's there. it's everywhere. but for someone to be able to work from here, there has to be someone here making sure everything is safe. secure. consistent. so log in from here. or here. assured that someone is here ready to fix anything. anytime. anywhere. even here. that's because nobody... and i mean nobody... makes hybrid work, work better.

look at those gainers in the s&p this year. they have something in common. all oil and gas. switching gears. the once red hot buy now pay later is now getting pressure. while some have seen valuations take a hit like klarna, zilch is holding steady the valuation remains at $2 billion. what makes them different?

let's find out we're joined in a first on cnbc interview by philip belamant he is the ceo of zilch there is direct to consumer and buy now and pay later. you guys decided it is the latter the business to business side which is where the real action is explain in plain english it is early in the united states what that means. >> brian, good to see you. let's be clear on the difference here we have all of the checkout buttons that we talk about when you think about all of the guys selling to retailers. they compete against one another driving price down and becoming commodities to the finite number of deals in our case and apple, i'm pleased to see tim cook and the team follow zilch.

let's go direct to consumers in the world and ultimately we have a whole customer base that really retailers are putting gains to access customer base to bring them customers and purchasing power so the unit economic goes up this is the different approach to the market and model. this is why at zilch, we have positive economics from returning cores of customers that is unique in the space where the more our customers use our product, the more money we can make that's really an exciting model for our business that is the difference in the models >> are these micro loans to consumers, philip? a lot of are criticism on the models you are extending credit to young people and they don't understand how it impacts their credit rating or don't

understand the mechanics of how it works how does the under the hood process works? >> the first thing is companies have to be regulated in the space. zilch has been regulated from the get-go we are operating under federal law in the united states under the credit license in the uk you have to be regulated you need to give the consumer prot protection this is a debt instrument after all. the way we think about the mission and the problem is $1 trillion of debt recovering on credit cards that is 20% apr plus that is across the u.s. and uk brian, we as consumers are paying $140 billion a year to credit card companies in interest and fees. so, ultimately what this is, this is a way for customers to pay in one and get cash back or discounts or deals or pay over

time and defer the payment over 42 days for free, no interest of any kind the mission is lets make that $140 billion go away this challenge has existed for 80 years credit card came around in the 1950s and nothing has changed. brian, it has to be clear. we are coming for the fees we want to set the $140 billion down to zero credit card companies have taken advantage of people too long we think this can help people afford the things they need. >> are you worried about uk or europe or u.s. economic slowdown with the drop in consumer spend spe spending >> we see a drop in consumer spending, no doubt about that. we see 6% of the customer base in the uk already in two years we expect to chachieve more tha

that in the next couple years in the u.s. with the growth ahead of us, you know, we can offset what we see in the slowdown with top line sales with revenue generation and growth that's for sure. we are seeing a responsible behavior happening where people are saying i don't need that extra pair of shoes that might end up in a landfill in the next six months i should use this. grocery, gas, lights, energy we really think people should move away from overdrafts and high cost credit credit cards and use products like this to manage your cash flow or receive discounts and value every time you transact >> all right philip belamant. we appreciate you coming back on good to see you. come back again and let us know how things are going thank you. still on deck, we look at

supply chain woes, but not asia. european style this time. why many on the street are sticking with the bullish calls for semiconductor stocks despite one of the worst months on record >> announcer: today's big number 42 million that's how many people are expected to take a road trip this weekend for independence day. atou saag to a th wldet a new record.

all right. welcome back let's get a check on generals mills. no news here we are trying to find good news and data in the market turmoil this year. here is one. general mills. gis. hitting a record high yesterday. on pace for the best week since march. cereal and yogurt maker was a $38 stock in 2018. it has now doubled since then. you go, minneapolis. trying to find bright market spots. let's get a check of the headlines outside of the markets and money. including the likely crushing traffic set to hit this weekend and the brittney griner saga in russia frances rivera is in new york with that. >> good morning, brian brittney griner is set to stand trial today in russia. if convicted, she could face up to 10 years in a russian prison. she was arrested outside moscow

at the airport she was holding a cannabis oil in her luggage griner was ordered to remain in custody for the remainder of her trial. secretary of state has been in contact with her wife and is actively trying to bring her home. americans are looking for a fourth of july weekend aaa says airlines have been struggling since memorial day with 3,000 cancellations since just sunday morning. and there will be volatile weather in the southeast leading to more delays. nasa scientists are scratching their heads after a mystery rocket crashed into the moon they misidentified it last year before it made impact back in

march. it left behind two craters totaling 90 feet wide. no agencies or governments have claimed responsibility for the object when we say agencies governments within planet earth, brian. not sure beyond that and universe who may be responsible for that >> an unknown rocket hit the moon this should be like the top story for every network. unknown rocket hit the moon? >> it doesn't impact us on earth. all's good until it happens again. to be continued. >> what is this october sky? somebody in the backyard making a rocket that hits the moon? wow. frances, if you get updates on that, we would love to know. >> we're here for you. >> a mystery rocket. tracking it for two years?

okay i'm intrigued. still on deck here on "worldwide exchange. nasa version get your pins ready. your top five insider buys of the week and insider trading allegations for the world's most valuable company. stick around

welcome back to "worldwide

exchange." good friday morning. here is how the markets and your money look at 5:30 a.m. eastern time hour. we are coming into july like out of june which is weak. down .10%. we are in the red. it is not just stocks that have been hit this year bonds have also been slammed investment grade bonds moving lowe lower. look at the ishares. down 11% in january for the worst start of the year ever and bank of america noting that government bonds having the worst start to the year since 1865 not 1965 1865 wow. that's an rbi. just about the only thing that rose the first half of the year was commodity prices oil which just turned in the ninth positive quarter in a row for the first time ever.

crude oil is staying above $107 right now. let's get the top stories right now and the twist in kohl's trying to find a buyer bertha is back with that and more more. brian, shares are sinking on the news it is terminating talks with the franchise group over potential sale for business. that according to sources telling cnbc that the very maniment development coming that franchise group was considering lowering its bid from $50 a share to $60. kohl's has been under pressure. tesla is facing another lawsuit by black employees alleging racism and harassment in the california plant. 15 former and current workers at the facility claim they were subjected to racist comments and behavior by colleagues and managers and human resource

employees on a regular basis a former top corporate lawyer at apple pleading guilty to insider trading charges prosecutors say that gene levof e exploited his role for five years before the quarterly results announced and making trades around them they added he ignored the blackout periods that barred trading before the apple results were released as well as the broader insider trading policy which he was responsible for enforcing. brian. >> the hr executives at tesla and the lawyers at apple i don't think anything can surprise me anymore, bertha. really >> yeah. interesting allegations. >> yeah. yeah, they are they are allegations apple? the lawyer always the lawyer. bertha, thank you very much. now let's get to one year of

the market hit harder than most. that is saying something semiconductors amd and nvidia leading the lows this week. the etf also coming off the worst month since 2008 it is now trading at the low es level since 2020 the cause for the meltdown is demand the earnings call last night, micron ceo with the warning that the demand weakened and slashing the fourth quarter guidance. that stock sinking in the wake of the comments. the analyst ratings are bullish as ever. take applied materials 31 analysts rating and 71% say the stock is a buy the rest are holds with no sell r ratings. joining us now is patrick ho

with stiffel patrick, it is a rough go for semis. what is the best piece of advice for investors in the space now >> good morning, brian i can't deny there are concerns in the marketplace with the macro and recessionary fears i would not say is a surprise in the near-term environment, but for long-term investors, semis are one of the best places to be especially if you are looking in the next several years there is more silicon content going into a lot of applications and markets. i believe it is a big secular driver for the overall marketplace. for a long-term investor, i would stick through the rough patch and probably buy a little more if you have a long-time horizon. >> you know, we talked about applied materials, obviously one

of the biggest companies in the world in that space before the break. you like a lot of smaller names like mks instruments not names we talk about here on cnbc too often >> those are small tech names. still sizable and liquid names mks is a company that supplies components to the applied materials and researchers of the world. as those equipment companies benefit from the increasing silicon content as i mentioned mks ben pefits from that. it has materials and contamination control solutions. semiconductor manufacturing becomes more complex, you are using more materials and different types of materials and you need more contamination control to keep the yeields high for semiconductors in the future both are well positioned from the fundamental and secular

growth standpoint. >> yeah. what about a name like corbett dig digital? these are not household names we talk about much. do we care about the distinct spaces these companies are in? what parts -- we always say semiconductors like it is a singular universe. they do very different things. >> the semiconductor beecosyste is complex we don't have the time to go through all of the aspects i would highlight that i believe the equipment industry is probably one of the biggest beneficiaries of the secular trends on the going forward basis because they are the ones that are supplying the capacity and process know how they will be particularly important. as we have seen the last couple of years is a supply shortage.

that is due to capacity. the only way to solve that problem is adding more capacity. if you look at the equipment companies themselves, i believe areas like contamination control and more materials engineering those are the drivers for what we see the city drivers like digitalization of the economy. >> new names there patrick ho, we appreciate you coming on. have a great day be well. >> thank you >> new names on deck, problems at the ports. going well beyond china. up next. we will talk about what is happening in head to break, for first half stats to talk about at the cocktail party. if your friends ask how bad it is to start the year, you tell them this. apple's 20% drop the worst in four years. amazon's 35% loss.

biggest since 2001 alphabet and microsoft down 22% and 17%. their biggest drop since 2008 and 2010 if you are playing stock market return jeopardy tonight? you are well served by watching , fenrogrammyrids we're back right after this. ou—- in 2022. but you're. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with comcast business. powering possibilities.™

want more from your vitamins? get more with nature's bounty. from the first-ever triple action sleep supplement. to daily digestive support. to more wellness solutions every day. get more with nature's bounty. welcome back we are kicking off this block with the market stats. not equities metals it has been a tough year for

metals copper down 19% this year. falling 13% alone in june. the worst month since september of 2011. also tough for nickel. down 23% the upside for the declines is to help bring overall inflation down just a bit. we have seen commodities come off some of the highs. time for the weekly insider buying segment where we highlight the top five stocks bought the most by the executives with their own money. as always, the information comes from verity platform data. the fifth most insider buy pipeline company enterprise partners $450,000 buy by the board member the fourth home bank shares board member buying $514,000 of

stock. and stock three is enviva. the largest wood pellet maker in the world. the $994,000 buy by the ceo. one of the recent insider buys by the company and the top two? davita $1.5 million buy by the coo. by the way, only the fourth total insider buy ever at davita going back 20 years. and the most insider buy this week is plains all american pipeline shares of paa are down 12% this month. the board member buying on a little bit of weakness the names are enterprise and home bank shares and enviva and davit and plains it will be the last insider buying segment for a few weeks going into earnings season and we have a quiet period

we will be back in a couple of weeks with insider buys. as a general rule, we try to do this most fridays. a segment you will see only on "worldwide exchange" or on cnbc pro. sign up for cnbc pro today when you hear talk about the american supply chain, you think about china. do not forget about europe it is also the origin of hundreds of thousands or more products for american companies and consumers. this morning, wite have a cnbc supply chain heat map alert on europe we have lori ann larocco >> it is a strange hobby labor negotiations with the unions at the ports and port operators are entering a sixth round of talks it has led to worker stoppages

and strikes. this slowed down the flow of trade. check out the latest supply chain heat map from europe detailing what is happening at the european ports including bremerhaven and hamburg. and rotterdam with logistics and l slowdowns. it is impacting exports across europe this next chart from freightos it is tracking prices from europe why is lori ann putting this up? if you have constricted supply of containers, it is going to push up prices and exacerbate inflation. this is impacting the delivery

of auto parts bmws and mercedes-benz lithium batteries for ford home goods like flooring and furniture from ikea they have to request space five weeks in advancewhich is unusual. if you get a container, arrivals are 7 to 9 days late this is causing congestion spilling into other ports. a good scenario, brian the back-up will last for months >> what is the -- if i want to get a ship tomorrow, what is my reliability of getting a boat right now? >> it is bad it has not improved. i'm coming on with bad news. vessels are still out of sync on a global basis this is tracked by sea

intelligent. it remains down by 30% reliability. you have continued rail issues in europe. if you are lucky to get a container in europe, that doesn't mean it will get on the rail it is also stuck in the yards. >> yeah. i'm looking at the heat map. i love this stuff. all we do is talk about china. we forget europe has collectively pretty much the biggest economy in the world at least it did. lori ann larocco, thank you very m much good stuff on deck, stocks trying to pick up the pieces after a brutal first half to a year. we dig through the market rubble and get context. we will look at what may be in store the second half of the year stick around for that.

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 time for the bonus rbi thursday brought a merciful end to the year. it has been brutal let's get random but interesting on the scorecard if you don't want tough numbers, turn away or mute the tv here we go this is, as you know, the worst first half of the year for the s&p since ali mcgraw and ryan

o'neil in "love story. this year, the s&p lost $8 trillion in market cap 13 stocks in the index lost half their value this year. that is led by netflix which is down 71% in 2022 wiped out five years of gains. here is something random but interesting with the drop. this june was the worst june for the s&p since the financial crisis in 2008 higher rates and inflation and slowing economy is a toxic combination for equities all right. enough nastiness energy something we have talked about a lot on the program it has been a big winner with the widely owned xle up 28% this year the top stock in the s&p 500 is occidental petroleum doubled in six months.

congratulations to vicki and investors. the only stock to double this year let's say good-bye and good riddance to the first half of the year here's to a better second half of the year for all of the stock market and all of america. let's try to wrap up the show with optimism long term. joe fahmy skrjoins us now give us optimism, joe. if you don't have it or feel it, pre pretend. we need it for july. >> thanks for having me, brian i have optimism in the fourth quarter. in april, i said the market would not seesustained up tren until stocks pauses the current rate hike cycle. it has been an ugly down trend we had bounces, but they have been short lived i'm sticking to the call we won't see sustained upside until the fed announces they are

pausing the current rate hiking cycl cycle. the reason i feel that announcement is important because when you look at past corrections, we tend to come out of them when the fed has a shift in policy. three examples a correction in 2010 it wasn't until berhn bernacke announced that then fast forward to 2018. the fed raising rates. we had a correction then jay powell came out in 2019 and said the fed would be patient on interest rate policy most recently with the pandemic, it wasn't until the fed provided the insane liquidity and an accommodation that led to the up trend. bottom line, market participants need to be patient until the fed announces a shift in policy.

>> when is that going to be, joe? i only half joked on the program the other day and half joking about when do we start talking about fed rate cuts? at some point they will send this economy into the tank to kill inflation they have to make that pivot when do you think the all-important pivot to the dovish fed happens august the end of the year? early next year? >> i think we need an indication they will pause this current cycle. there are two meetings coming up best-case scenario is the meeting in july where they raise 75 basis points and get to the highs near 2018 and pause and say we're going to be patient and let the recent hikes filter and absorb into the system my likely scenario is that the next meeting in september is when they do it for two reasons. number one, they don't want to look like they are interfering

with the midterms and the second is midterm election years bottom in august or september that is the pause or sustained upside for the fourth quarter. >> we like to call them opportunity fridays. leave people with investment ideas. covid made us think about other things we forgot about cancer or other diseases for two years we need to put them on the front bur bu burner bio-tech is a good long-term bet? >> for the reasons you mentioned. one way to play is with an etf i like it for three reasons. the relative strength when it made a low in may and june, it

is showing beabsorption better. and big pharma balance sheets are pristine they have tons of cash on hand you will see bio-tech out perform led by m&a by big pharma we will continue to see it in the second half sdp. >> joe, the best way to play that the bio-tech stocks go to zero high flyer on one drug it doesn't work out. the stock doesn't have a value it is a risky segment. play the xbi on a wide ranging etf? >> equally balanced. xbi is one it takes out the single stock risk to play the overall sector. >> yeah. you know, the paradox of the market, joe, is people love stocks back in november and hate them now if you like a stock ten years from now, you should like the

discount joe fahmy, thank you very much happy fourth of july >> thank you you're very welcome. we have a long weekend coming up that does it for us on "worldwide exchange. i'll see you back, i think, on thursday next thursday. yeah, sleep. i'll see you today on "halftime re report." "squawk" and gang pick it up happy friday you're welcome "squawk" is next

wanna help kids get their homework done? well, an internet connection's a good start. but kids also need computers. and sometimes the hardest thing about homework is finding a place to do it. so why not hook community centers up with wifi? for kids like us, and all the amazing things we're gonna learn. through projectup, comcast is committing $1 billion so millions more students can continue to get the tools they need to build a future of unlimited possibilities. this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app.

good morning as we pointed out markets just turned in the worst first half in 50 years. what will we say at the end he

of of this year we don't know. we will prepare the portfolio for the second half. sources tell cnbc that ftx is looking to buy another player for pennies on the dollar. holiday travel crunch is getting under way. a live look at highways and airports as nearly 48 million people prepare to hit the road i have to buy some canine g gummies for july 4th they get nervous fireworks. friday, july 1st, 2022 "squawk box" begins right now. good morning welcome to "squawk box" here on

cnbc live at the nasdaq market site in andrew ross sorkin along with joe kernen. becky is off today >> just the boys we have looks and -- to some ex extent >> i can't have all of my aspen mountainous paraphernalia on >> we can put a green screen behind you that might have been a green screen >> it was real it wasn't memorex. >> where is it >> the gift. always a gift. >> when your parents go away >> i know. a gift in the makeup room. it is awaiting you. >> no kidding? >> yeah. i think of you >> that's really nice. i'm nervous. >> you should be. >> is it ticking >> tak