print everything you need, slap the label onto the box, and it's ready to go. our costs for shipping were cut in half. just like that. shipstation. the #1 choice of online sellers. go to shipstation.com/tv and get 2 months free. it is 5:00 a.m. at cnbc global headquarters. here is your "five@5." gas online at the in nord strea pipeline brian sullivan has the latest. and to dive back into the stock market with the winning week and fighting to roll on futures are lower right now. investors bracing for a key interest rate decision by the european central bank later this morning. likely rolling out the first

interest rate hike in more than a decade. a tough second quarter for tesla. shares on a bumpy ride following the latest results showing output hurdles. and another tech giant announcing plans to slow down hiring on growing fears around the economy. it is thursday, july 21st, 2022. you are watching "worldwide exchange" here on cnbc good morning welcome to the show. two of us on your screen i'm dominic chu at cnbc global headquarters and that is brian sullivan in frankfurt, germany following the latest on the european energy crisis and restart of the nord stream 1 gas pipeline from russia following the end of scheduled maintenance. we will have more on that story with brian in a moment

first, let's kickoff the hour with the markets and your money. futures are indicating a modestly lower open. dow lower by 82. s&p down 11 and nasdaq down 32 tech and growth stocks are helping to lead the markets higher they did so yesterday. the nasdaq jumping 1.5% with the dow and s&p notching modest gains. the nasdaq is the winner this week up nearly 4% the dow is up 2% and the s&p up 2.5% let's get a check of the bond market yields drifting a little bit higher with the 10-year treasury a hair below 3.5%. the 2-year treasury just about 3.24%. the shorter duration bonds, the ones that don't expire, the yield inversion is still in play in the oil market, u.s.

benchmark wti at the $100 a barrel mark. 3.5% to the down side. ice brent down 3%. $103.66. your top story of the morning is tesla facing volatility ahead of the opening bell the electric vehicle maker reporting a 57% in adjusted earnings and 42% jump in sales from the same time last year margins, this is key, taking a hit. falling 5% from the first three months of the year as inflation and competition and factory ramp ups in germany and texas continue to take a toll on profits. we will have more coming up. tesla shares up 2% pre-market. let's head worldwide with julianna tatelbaum in the london newsroom ahead of the big key

interest rate decision and very important geo political updates from germany >> dom, this is a pivotal day. ecb meeting and political chriss in italy and the nord stream 1 pipeline which brian will cover in detail on the program a lot of factors driving trade we see investors jittery the germany market down. the real under performer is italy. ftse mib extending yesterday's losses we see heavy pressure in the italian banks. why is this? mario draghi has tendered his resignation. this is after three withdrew support for the government

he has been asked to stay on as caretaker. here is a picture of italian bonds. a rise in bond yields today. to ecb is getting set for historic rate hike. set to raise rightates for the t time in 50 years dom, back to you julianna tatelbaum, thank you. back to the developing story now with natural gas resuming through the nord stream 1 pipeline after being offline for a week for scheduled maintenance. the operator confirming the news brian sullivan has more from frankfurt, germany i've heard the reports, brian, that around 40% capacity is going through the pipeline right now which was roughly what it was before minaintenance happen.

>> it is not the worst-case sce scenario it is good, dom. maybe less bad we are here in the frankfurt tourist spot a lot behind me. the church bells were chiming over here. 11:00 a.m. here. the bells did not toll for germany today because that pipeline let's go through the headlines here sorry. a lot going on in the background headlines is the nord stream 1 is flowing 40% capacity really what this does, dom, it takes us back to where we were prior to the shutdown on july 10th we are back to where we were fair to say this germany and much of europe avoiding the worst-case scenario outcome. that's where we are. putin has turned the pipeline back on. it takes us back to where we were you have to keep in mind with vladimir putin, this is a

crisis, because he was making comments in iran the other day, dom, about a second turbine needed to be repaired and more problems as well you never know with him today and at this hour, we will talk about the pipeline and where germany stands we'll talk about the storage heading into winter and we'll frame it out what lessons does this mean for the united states? the energy transition here and a lot of people said it wasn't done thoughtfully enough and too quickly and created problems and put putin in a position to play puppet master with german gas. we have jeff kcurrie coming on we have people doing this own thing in public. that's how i like it, dom. good news. we can smile a little bit. i like rolling with everything >> i like it you are trying to get those europeans to keep calm and carry on >> how is it they're happy about the

pipeline i think. i don't know they're happy. >> happy >> i don't speak any german. i'm trying contessa brewer does, i think. >> she might thank you very much, brian sullivan we'll get back to you in a few moments to get more on the story with natural gas and russia and europe let's get the headlines with contessa brewer. she is here with those good morning, contessa hi, dom. good to see you. president biden will talk with xi jinping biden said he plans to speak with xi by the end of the month. the president did not elaborate on the reasons of the call or topics there satis an an a lot of tens with ukraine and taiwan. microsoft is pulling back.

the spokesperson told cnbc saying it will decelerate the pace of employees. microsoft did not say which will slow down on adding new workers. microsoft teams app is back up we can chat with our coworkers some users experienced an outage for hours. they blamed it to the internal storage service. they did not disclose the number of users impacted by the app. amazon has broken a record on lobbying spending bloomberg reports the company spent 4$4.98 million. the report adds in the first half of the year, amazon, apple, meta and google along with their third party groups, have spent

more than $35 million on lob lobbying that is, dom, a 15% jump from a year ago the take away? a good time to be a lobbyist. >> i think so. as jim cramer says, there is always a bull market somewhere in this case, lobbying contessa brewer, thank you very much back to the markets now. perhaps good news for those bulls. our next guest is the technical evidence for a meaningful recovery rally if you are a bull, tune in if you are a bear, tune in craig johnson from piper sandler. he looks at the charts for a living craig, what do the charts tell you? >> dom, the charts are constructive we titled the most recent book "on the ropes. the markets have been on the ropes this year with the worst start to 2022 in terms of equities and bond. things are looking more

constructive, dom. we start looking at the s&p and reversing the down trend from the april highs. we see measures in the market that are really extremely oversold measures we look at are levels we rarely have seen over the last 50 years. there are a lot of investors that are still too negative and the breadth is just now starting to improve the sa&p is setting up for a rally. we reiterate 4,775 by year end. >> 4,775 that is a meaningful move higher where exactly are you seeing the pockets of strength within that overall trade? you look at the s&p 500. it is a market of stocks what will be the leadership here back to technology >> dom, it will be a couple of things

coming off the lows is health care stocks and technology and usually consumer discretionary stocks what we have done is we upgraded the health care sector we think that will be a leadership area in the market. we think that energy is going to do well also we have seen a lot of constructive charts. coming back to health care stocks from the bottom bottoms-up perspective they really bottomed they have been beaten up for 18 months my good friend often says, you know, one doesn't get hurt falling out of basement windows. that is where you are with the tech stocks and health care specifically bio-he toek tech >> you mention bio-tech and technology are any of them compelling with best ideas with regard to the

individual names industry groups represented more >> absolutely. we look at the industry groups and stocks like crispr therapeutics is setting a bottom shockwave inside health care is another one that is constructive biogen is another one we wall constructive dom, if you switch over to technology, we have even a lot of pain in technology. arista networks is looking to make a bottom and snowflake. these are the stocks have been beaten up the most the charts are starting to turn. i like at the stock market and charts and they are all turning constructive we need to pay attention to it i don't think a lot of investors look at what can potentially can go right and everybody is looking at what is wrong.

>> craig johnson thank you very much. we appreciate it. when we he come back on the show, more on the story and natural gas flowing through the nord stream 1 pipeline we go back to brian sullivan in germany with more. and goldman sachs's jeff cuk currie will say why gas will remain limited going forward. and the morning's big money movers shares of one airline in the mystery chart failing to takeoff following the quarterly results. that name coming up. you have a very busy hour still ahead when "worldwide exchange" returns after this commercial break.

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welcome back to "worldwide exchange." let's get back to the developing story from europe. natural gas resuming that flow through the nord stream 1 pipeline from russia to germany and brian sullivan is live in frankfurt commiserating with the german public resuming operations on the pipeline is there more of a sense of optimism, brian? >> reporter: listen, i think so of theso

we are back to the pre-levels germany is getting natural gas from rush. it is still a relatively small amount remember, nord stream is just one of three major russian natural gas pipelines that go into germany the other two are not flowing. they were cut off in may and earlier because of ukraine war and other problems the total level of russian natural gas coming into germany remains very low before the war, it represented about half of total german natural gas. now we're talking about 40% of the nor the nord stream. this is key. this 40% nord stream flow level is not going to help raise german storage levels going into winter the levels stand at 65% right now. because of the heat wave and businesses continuing, germany is likely using more natural gas

now than it is buying from russia and others or producing it is possible, dom, that german storage levels will go down from here why do we care storage is critical to make sure you can heat your homes this winter and continue to operate businesses remember, this is the fourth biggest economy in the world it is bigger by 15% than california the bottom line is this. germany and europe today are, yes, in a slightly better place than this time yesterday it is still a very difficult position in the near term. with putin, anything can happen. he was hinting of more maintenance needed next week coming up later on the show, we will talk about why this is not just europe in a bad spot. what is happening in the uk is scary, dom think about this, and i'll send it back to you, and we have jeff currie coming up

we have ecb out today. we have the prime minister of italy saying he is resigning the prime minister of uk stepping down. nearly 10% inflation in the un united kingdom utility costs may triple here, dom. in the fourth biggest economy in the world, how do you operate a business or economy like that? >> you don't it slows down. that's the big concern, brian. let's further this before we let you go for this time being here. this development here is big europe's energy crisis is far from over. what are the key issues you see that remain for the region given the headwinds are the ecb and interest rates and energy use and everything else? >> i want to make this clear this is not the end of the problem because the pipeline got turned back on maybe this is the end of the

first inning i don't know, maybe golf and a couple holes into the final round? the 15% voluntntary energy reduction? 15% doesn't sound like a lot if you are using it all forestfor forfor for industry, how do you take 15% away i don't think this is the end of anything it may be the beginning of the first chapter. there is no end in sight germany is talking about maybe keeping the three remaining nuclear plants which were scheduled to be shutdown online. maybe they don't have the staff to do that they are putting coal plants back online. switching from natural gas to oil. i'm trying to use the european story to tell a macro story of the u.s. corporate earnings, dom, i'm

speaking your language if europe's economy goes into the tank, what is happening to s&p? 10% of sales are macro europe for index. if those get whacked, what happens to multiples and u.s. dollars? >> a ton of experts are trying to figure that out thank you, brian a lot of conversation with the energy crisis in europe. thank you, brian. coming up, bitcoin under pressure after tesla pulls a u-turn how much iduedndt mp a key take aways after the quarterly results. that's coming up after the break.

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for general corporate purposes including the potential to settle debt that matures next year the shares are down 10.5% pre-market finally, united airlines also under pressure this morning despite the airline notching a key profit milestone the airline reported adjusted earnings of $1.34 per share to $12.11 billion those were both expectations the earnings make united the first quarterly profit since covid began without the help of federal aid. the company announced it will scale back the growth plans through next year. as a result on balance, you have weaker moves in united. still on deck for the show, more on the developing story out of europe and nat gas flowing resuming through the nord stream

1 pipeline brian sullivan on the ground in germany with the very latest plus jeff currie on at iwht means for the energy crisis outlook. big interview there. we'll be right back. ♪♪ giorgio, look! the peanut butter box is here. ralph, that's the chewy pharmacy box with our flea and tick meds. it's not peanut butter. ♪ the peanut butter box is here ♪ i'm out. pet prescriptions delivered to your door. chewy. 80% of couples sleep too hot or too cold. because quality sleep is vital, the sleep number 360 smart bed is temperature balancing, so you both stay cool. our smart sleepers get 28 minutes more restful sleep per night. save 40% on the sleep number 360 special edition smart bed queen now only $1,499.

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from germany. and at home, the market is winning. weak and at risk after solid earnings this week futures point to a lower open. results from tesla on a choppy ride ahead of the open. we will dive into that with an analyst. it is thursday, july 21st, 2022. you are watching "worldwide exchange" on cnbc. welcome back to the show i'm dominic chu at cnbc global headquarters you see brian sullivan in frankfurt, germany with the latest on the pipeline from russia following the scheduled maintenance. we'll have more on that story in a moment brian, see you in a bit. first, right at 5:30 a.m. here on the east coast

here is how your money is looking. dow implied lower roughly 95 points s&p lower by 9 points. nasdaq lower by 16 back now to the developing story out of europe. nat gas flowing through the nord stream 1 pipeline after being offline for scheduled maintenance. let's get to brian sullivan in frankfurt, germany for latest there. brian. >> reporter: you know, dom, this is good news to wake up to in the united states. why here in germany are they talking about a russian pipeline with regards to the u.s. market? there were concerns, dom, if the pipeline did not turn back on and no indication that ubs and jpmorgan chase were out there saying we are taking a hit to corporate earnings the euro could fall. there were so many trickle-on effects. it is 5:30 a.m. there and 11:30

a.m. here. the crowds are out good news that nord stream 1 pipeline was turned back on by g gazprom and vladimir putin of the maintenance schedule it is flowing at 40% of the total capacity and vladimir putin made comments that maybe another turbine p needed to go for maintenance. for now, dom, we will see what happens in the next couple days and weeks and months this story is starting, not ending the worst-case scenario avoided in germany and europe. nord stream flowing at 40% markets would have taken a huge hit. for now, for today, we have a bit of relief there from the pipeline we will talk to jeff currie from goldman sachs in a moment about

the implications >> brian, thank you very much. we will have more on that story coming up. keep it here for that. the top stock story is tesla. ev maker out with second quarter results after the close yesterday. it reported a 57% jump in adjusted earnings and a 42% jump in sales from the same time last year it is the profit margins that are a concern for some investors out there. they are taking a hit falling 5% from the first three months of the year as inflation and competition and expensive factory ramp ups in germany and texas. here is elon musk on the earnings conference call last night. >> in spite of the challenges, it is one of the strongest quarters in history. we have the potential for a record-breaking second half of the year i don't want to emphasize this it is subject to force majure.

>> supply chain hell he says another highlight is musk says tesla unwound the $1 billion bitcoin. converting that stake in fiat run as i the asset sale should not be taken as a verdict on bitcoin. joining me is managing director philippe houchois. philippe, i wonder if anything on the call was enough to make you feel like this is a bottom in play for tesla? it can have more upside move and path of least resistance can resume higher? >> absolutely. i think could go wrong in q2

we had the compression as expected shanghai was out of production for a good chunk of the quarter. then austin and berlin have ramp up costs effecting margins 400-point loss was expected. the good news was they told us they had about $1.1 million less of install capacity. that is $1.1 million in austin and berlin they produce 1,000 cars a week in berlin. this points to a ramp up of the production that should be probably faster than expecting and faster than most people in the market were expecting between now and year end >> philippe, what is the key to making sure that stock is going to the upside going forward?

is it the chinese numbers of production and sales out there is it something with regard to inflation easing and profit margins not just here at home, but elsewhere? what is the key to get this whole thing and investment piece opened back up >> the business is still capacity constrained of course, i think musk mentioned waiting time of 6 to 12 months. it is hard to wait 6 to 12 months to get product. this is a strained environment at the same time, musk had been clear how critical affordability is of course, they raised prices. at the same time, at some point, with the environment eases, musk considered reduced prices to con continue to make the cars more affordable the goal of tesla is to make the

transition happen as quickly as possible to clean energy and for that, they need to start lowering prices. i think that was the message that he did not indicate he was giving up on margin, but give up on price if inflation is easing. >> philippe, before we let you go anecdot anecdotally, i'm a layperson i go around town and it used to be teslas everywhere i now see a handful of rivians on the road where i live i just saw my first in-person real life lucid air driving around town. hyundai ioniq. >> of course, as consumers, we have choice.

if tesla doesn't lose share, there is no ev market. we need to be aware that tesla has to lose share if the market grows. we need to keep in mind as consumers, we have more choice it makes tesla unique and how they sell a car and develop their cars and theme in the earnings call was simplicity everything in the auto tomorrow fle complex. we need to focus on that of course there is competition and it is welcome, otherwise there would not be a market. >> philippe houchois with the breakdown on tesla thank you very much, sir have a good day. >> thank you. coming up on the show, goldman sachs' jeff currie can the story out of europe and what it means for the region's ongoing energy cirisis and if

they are out of the woods. we're back in a moment

welcome back to "worldwide exchange." i'm brian sullivan in frankfurt, germany. let's get to the developing sto story. the good news is the gas is flowing through the nord stream 1 pipeline after being offline

for ten days talk about what this means with jeff currie from goldman sachs jeff, you nailed it. your final research reports predicted 40% pre-maintenance coming back online i'm trying to say this is good news how much does this resolve >> the fact it is flowing is good news, but only at 40% is the bad news and the caveats around the 40% and they could drop 25% if there are any problems with the upcoming turbine insulation the key point here is prices are likely to move substantially higher from here our target is 170 euro per megawatt hour. that is a substantial upside 40% is inadequate. you have to curtail demand that means a likely contraction.

that is significant. that is why we have to ration prices at higher levels. >> yeah. i want to make this point clear and it is wonky, but wbi wonky but important. jeff, russian gas was 5 5% of german homes three pipelines in germany nord stream is is the biggest at 40%. germany is getting low amounts of natural gas you struggle to see how they will keep industrial economy running and the lights on especially if it is a colder winter >> absolutely. the only saving grace right now is what's going on in china because of the lockdown around covid and activity in china.

there is spare cargo of lng to make it to europe to ease the situation. we had a full-blown recovery in china the second half and that global lng market is scarce. you will see rationing of demand in the second half that is why the eu came out with the emergency energy program with demand rationing yesterday. >> what is amazing and what the germans have done well and i'll give them credit, and others argue they screwed up, they were able to secure the four floating ships available in the world germany was able it to get so they could handle imports of u.s. lng it doubled from $16 to $33 they are now above asia. jeff, the analysis, if asia and

china were to come back online and european demand stays where it is, does the u.s. have the cape ability to add more production or will it go about a l ballistic? >> you have freeport expected to go back online we expect it to be around october and back up to 1.2 per day. back full stream oin january of next year. beyond that, the system is constrained. everybody thinks constrained and can't respond to this. you can respond with coal and chemical and other manufacturing goods. so, a lot of different ways that u.s. gas can creep out of the u.s. and into the global market.

>> does what's happening here have an impact on u.s. gas and oil? the reason we're here is germany is not some tiny economy it is the fourth biggest economy he in the world. collective european economy is the same size of the united states the point is if we get a significant lslowdown in europe what kind of knock-on impact could that have on u.s. commodities or u.s. equities >> i want to begin with the united states. it is a big exporter of every commodity that is short. coal, gas, oil it flirts with being inadequately supplied. canada is long oil and grain agriculture and chemicals and fert fertilizers. all of the things the world is

short. the u.s. is well positioned to supply the world that is why the dollar is strong which is acting as a headwind. whether it is the commoditieso equities oil is off today because liquidity is low the equity risk premium in oil or companies is large. oil alone is 60% per anum. the companies are priced so low compared to the 2008-2009 value. there is extreme value in commodities and futures. all of it is substantially under valued particularly in the united states. >> jeff currie, worst-case scenario avoided for today the story not over jeff, we appreciate it you nailed it.

congrats on. t that thank you. i'll go on a couple of final thoughts to jeff's point, we have a lot of problems in america you see what is going on here. inflation out of control energy crisis. prime ministers dropping like flies and sovereign ded bt in italy and greece we are lucky to be in the united states maybe it is net bull, dom, for the united states. $47 per unit of natural gas. we're paying $7 i want people to understand that and electricity prices will triple heading into the winter europe is in a tough spot. this is not a small economy. if china comes back online, it will get worse the pipeline came back online. that's the good news back to you. >> brian sullivan, thank you very much. we'll see you throughout the day

here on cnbc keep an eye out for brian for the day here. coming up on "worldwide exchange" john stoltzfus lays out a busy day ahead with earnings, ecb and europe's energy crisis. reminder, follow our podcast. it is on all the major podcast apps "worldwidexcng o ehae"n spotify or anything else check it out we'll be right back.

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welcome back to "worldwide exchange." another busy day on wall street. big decision from the european central bank at 8:15 followed by jobless claims and the july philly fed survey more earnings to watch we hear from at&t and american airlines and blackstone and union pacific and an snap.

the dow implied lower by 75 and s&p is flat. joining me now is john stoltzfus at oppenheimer john, do you feel better about the markets given what you have seen >> i have to say we he he definitely feel better about this the market is showing where it wants to go as it gets out from under that awful first half of the year. >> if that is the case, are you calling a bottom is this the time everybody should be buying >> we have to say we do not believe this is the time to back up the troubuck. it is a good time to layer in dollar cost average. look within the sectors where babies have been thrown out with

the bath water and indiscriminate selling in the first half of the year we think a lot of stocks that make a lot of sense and profitable today and pay dividends. garp growth. >> when you say garp growth or growth value or growth at a reasonable price let's assume prices are reasonable now than 6 to 9 months ago because they are. we can see what happens with the ind indices. what characterizes growth at a reasonable price >> the large cap technology companies with good cash flow that are profitable. good business premise. deeply embedded in the lives of business and consumer. essentially the consumer and business are always on the

upgrade cycle with the particular businesses. we are going to say at this point, we find value within consumer discretionary and industrials and financials if we look at the best performing sectors since the start of july, as i recall, consumer discretionary and technology and communication squeezes in there. you have industrials and financials it is decidedly tech and cyclicals over defenses. we like that. >> that sounds like the playbook we have seen for the better part of the decade plus now with regard to the market any dip and make go back to mega cap and discretionary and consumer services. this is just a repeat, right we go back to the same shopping

list alphabet and meta? >> a lot of names beyond the faangs because i manage money, they don't want me to pitch individual stocks. market capitalizations and style. we would say what you are looking for this is not a knee-jerk buy the dip type of thing. things are getting better as things remain challenging. in essence, the fed has taken the right tact and pivoted in the process of increasing rates and in the process of focusing at the same time as it it has sensitivity with the changes to the economy. a level of sensitivity on top of it, the consumer is still shopping, but shopping for different things and in some

cases, watching their pocketbook naturally. the difference between sentiment and spending pattern for retail is still a gap with showing people like to spend money and still have money to spend. jobs remain plentiful. >> that's a good picture you paint out a very good reason why the markets should be constructive we got a few moments left, john. i would like to hear how you could be wrong >> you have to watch for the catalysts that will enable bears and skeptics to sell without fomo the legitimate thing that the fed can't control. russian incursion into ukraine and volatility that creates for the world and covid variants around the world and a pick up

which may cause an impact to reopenings earnings season has been mixed so far, but out of nine sectors repo reporting, one sector shows negative earnings. that's financials. everything else is the positive in earnings. if we see a slippage in earnings, it would be worrisome. that would be a negative to the near term. >> john stoltzfus laying out the case thank you very much. have a good day. that does it for us on "worldwide exchange. keep it here dow implied lower 75 "squawk box" picks up coverage next see you tomorrow i'm so g did this. life is for living. let's partner for all of it. i'm so glad we did this. edward jones

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good morning stock futures slightly lower ahead of the busy day for the markets. on the agenda, ecb decision,

jobless claims and earnings from at&t and travelers and american airlines and blackstone. tesla with a 42% jump in sales from a year ago. elon musk on the call straight ahead. russia resuming gas shipments to germany overnight we go live to germany. it's thursday, july 21st, 2022 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick and joe kernen and andrew ross sorkin let's look at equities you see red arrows for the dow and s&p.