it is 5:00 a.m. at cnbc global headquarters. here is your "five@5." stocks kicking off a new month of trading on the wrong foot futures slipping ahead of the opening bell results from uber and caterpillar and more. around the world investors on asia on aedge with nancy pelosi's trip to taiwan. a top and bottom line miss not stopping shares of pinterest from surging

double digits in the pre-market. why they are piling in on the stock today. and another domino falls in the crypto sector crisis this time in over $300 million global ponzi scheme. and no longer joe manchin. the make or break senator with the tax and spending bill. she's in arizona it is tuesday, august 2nd, 2022. you are watching "worldwide exchange" here on cnbc good morning welcome to the show. i'm dominic chu in for brian sullivan let's kickoff tuesday with u.s. stock futures because they are down it is red. you can see the dow jones industrial average implied lower 143 points nasdaq down by 100 points with

the s&p down 27. lowest session to start the month. excuse me. with all of the major averaging snapping three-day win streaks in the bond market, yields are moving we are seeing a slight down side to the 10-year treasury. 2.5 2.557. a real collapse. 2-year treasury is 2.86% there is still an inversion in play watching what is happening with energy oil is again well off the highs we have seen over the last couple months. it is slipping again today in trading. benchmark wti crude at $93.43. that is off .50% ice brent crude is down 71 cents. $99.31 over in cryptocurrencies close eye on bitcoin prices because they are slipping and

still holding in the trading range we have seen over the last couple weeks bitcoin at $22,808 ethereum prices have been under for performing $1,579.29. we will watch the alt coins. around the world red arrows in asia and rough session shaping up for europe right now as well. joumanna bercetche is standing by in the london newsroom with the latest good morning, joumanna >> good morning, dom the theme is tension the house speaker nancy pelosi may be visiting taiwan rattled investors. you see all of the indices trading in the red shanghai down 2.3% hang seng and hong kong down 4 percent. the likes of some of the chip makers in taiwan getting impacted

nikkei in japan down 1.4 the spot of green is on the australian index we have the rva hike 50 basis points yesterday as for european markets, the picture is negative as well. we have the cac in france down .50%. germany down .60%. are you keeping a close eye with the gas situation? gas prices continue to move higher it clearly has an effect for the german economy the second spot of green is the british index uk up .10% you have really strong results out of the oil and gas companies today with bp. you can see the stock up 3.7%. a quarterly profit which surged the highest level in almost 14 years at 8.5 billion pounds. the british energy giant comes on the back of the strong

refinery margins and trading which is spurred by higher prices they are hiking dividends and paying of share buyback program. all of this is the reason the ftse 100 is trading at the top of the index dom, you tend to keep a close eye on what is happening with the oil and gas companies. the past sessions we had really strong results from bp and chevron and shell and exxon posting record profits because of the higher oil prices definitely a theme to watch here in europe. >> absolutely. joumanna, big oil is a focus here with the prices thank you very much for the update seize you soon. let's stick with the overseas action and the risks for investors. white house late yesterday calling out beijing's heated rhetoric over house speaker nancy pelosi's planned trip to taiwan this week national security council spokesperson john kerirby said h

decision is pelosi's to make and members visited in past years. that is not doing anything to calm nerves. eunice yoon is joining from us beijing with the latest there. eunice >> reporter: dom, nancy pelosi was meeting with the prime minister in malaysia today she will show up in taiwan taiwan media reporting the delegation will arrive at 10:20 p.m. tonight that is five hours from now. there are other reports that suggest that they could actually arrive early on wednesday. now taiwan news outlets said they were able to piece together pelosi's agenda saying she will meet with the president on wednesday and she would visit other government officials and discuss human rights with local activists as well as those who have come from hong kong beijing sees pelosi's visit as

an affront and challenge because they believe taiwan is part of china and this an abuse to the sovereignty. the u.s. would pay the price if she visits taiwan officials say chinese fighter jets have come very, very close to taiwan and median line of the taiwan straits the island is on high alert. the military is conducting exercises off the coast near taiwan and in the south china sea. the state media in china today quoted the military is preparing for all scenarios, including a local conflict turning into a comprehensive confrontation. dom. >> eunice, i wonder, you mention the military actions taken from

the chinese side of things we can only assume taiwan and the military is prepping on the same side. is there any deescalation scenario with report of the military side of things or can we expect to see exercises continue from china's front only to be met by, perhaps, exercises from taiwan and its allies m maybe the u.s. at this point what needs to happen for this to not become a real tinder box >> reporter: well, from china's perspective, what would help is if pelosi did not show up in taiwan if she does, it is unclear what they would do. i think is safe to say that there would have to be some strong show of force of c sabrerattling. beijing has to show it is standing up against the

americans to the domestic audience her visit is coming at a time as you imagine with xi jinping is heading into the political reshuffle this year. a lot of people are wonder fog he wondering if he will get a third term he has to show he is a tough person in addition to the political pressure, we will likely see or potentially could see economic pressure since we're seeing signs of that today. the chinese government says they are exporting or banning exports from 100 taiwan food suppliers the customs officials say that is the problems with the docume documents of imports >> eunice yoon, thank you. let's turn back to the markets and futures with the asian lead pointing to back-to-back closes for august

another headwind for stocks in 2022 not just stocks, but markets overall. joining me now is grace capital founder and ceo cate faddis. of course, the geopolitical tensions will weigh on markets this is a let's wait and see moment it is hardly the sky is falling. what are they trying to figure out what is happening with the taiwan and china situation >> thank you for having me they are trying to figure out if there is another shoe to drop. we had a lot of bad news this year we had covid, supply chain, china lockdown, war in ukraine, almost double digit inflation. oil price, fed rate hikes, potential recession. what is the next shoe to drop? i'm hoping this is not it.

war with taiwan? as long as we don't haveanothe major thing to drop, the market could be in a trading range. >> cate, that implies that you feel like all of those things you reeled off, the laundry list of negative catalysts is reflected in the corurrent mark right now? is that fair to say or is this one where we could see down side >> i don't know what the market is going to do all i can tell you is all of these things are known and they are reflected in the stock price. until we see right now companies reporting earnings, are we going to see numbers come down are we going to see anything unexpected everything we know is in the market this is what the market has done it rallied 10% from the low of 25%. so i think it is very perspective. i think it is interesting what the fed is planning to do.

the fed is saying that they think inflation is going to come down i'm not sure if they are right or wrong, but the market is saying maybe things aren't so bad. >> over the course of the last month, cate, there's been very clear leadership with regard to where people decided to buy the dip, so to speak, during the recent weakness. it is mega cap tech and consumer discretionary and communication services is that where you put the money right now? are those your top picks >> i would put my money in europe one thing we're not talking about is the euro/dollar parity. take the trip to europe. now is the great time for european exporters they will be facing tailwinds as u.s. exporters are facing headwinds. a couple of ideas if we have time u unilever $52 billion market cap $125 billion market cap.

they sell every day products recession? eh i don't think it will affect it much ben & jerry's. you will always buy ben & jerry's. the company trading at pe 20 times. it is under performed. it is a great place to hide. >> okay. unilever a top pick from cate. thank you very much. we will see you soon. when we come back on the show new details on the snarled global supply chain and why falling demand in certain sectors is not leading to falling prices. why shares of pinterest are surging despite a top and bottom line miss. it is up 19% pre-market. the crypto prices gets turned up to the 11 level as the s.e.c. cracks down on a more than $300 million global ponzi scheme details and the likely next domino to fall

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unbeatable internet made to do anything so you can do anything. welcome back to "worldwide exchange." prices for containers traveling to the east coast from china and europe are holding steady or continuing to go up in price cnbc's senior editor lori ann la rocco is here with data on what

is behind the trend. lori ann, why the disconnect with lower consumer demand why are shipping containers going up in price? >> a fantastic question. normally as you know, container prices drop as demand falls. here is the chart which shows the decline. this is future container bookings bound for the united states rates are not dropping the east coast congestion is creating a floor in the pricing and it is around the high $9,000 range. the congestion, dom, takes the boxes out of the supply for future use creating a decrease in supply. the u.s. supply chain heat map shows congestion the wait time for vessels at the port of savannah is up 123%. compared to the last quarter breaking news. the port of new york and new jersey is implementing a $100 long dwell container charge for

any container waiting at the port they are requiring ocean carriers to bring more back than they are bringing in the port of oakland is crippled. the wait time for containers has doubled. in one week to around 27 days. it will take weeks for this backlog to be cleared. all of this congestion is impacting schedules. ocean carriers are cancelling out of china in europe, the congestion on the heat map hamburg has flipped. the congestion rates from europe are over $8,400 a container to the united states. britain is a region you have to keep an eye on rolling strikes at the ports one part of the negotiations

wages for compencompensation for inflation. this is one issue the fed has no control over it is the cost that is passed on to the consumer. >> lori ann, you've explained the trade system for us with the series of pipes. the bandwidth of the pipes if this is the congestion issue, how is this impacting the return route to china given that container dynamic you explained? will that have an effect >> it slows down the arrival of the vessels to go back to get filled up. it throws off the arrivals back to the united states ocean carriers are cancelling in response 12% of shanghai sailings have been canceled. this cancellation sets a floor in the freight rate because of the decrease of vessel space

logistics companies are warning about the port of shenzhen the key port for apple and f foxconn. they are increasing in shanghai and northern china which is restricting drivers and any facility with one positive case will be locked down which slows down the manufacturing of exports and products >> it looks like there could be some supply chain issues even heading into the holiday shopping season. lori ann, thank you very much. see you soon >> thanks. still on deck for the show twitter building up the legal arsenal against elon musk. reportedly reaching out to friends and high profile investors for possible damning information on the tesla ceo and founder. that full story coming up ahead. >> announcer: today's big number $1.28 billion. that's how much money the state

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welcome back to "worldwide exchange." time for the big money movers. three stock stories. first up is zoom info.

the second quarter results topping forecasts thanks to strong international growth. they are raising guidance for the year shares up 12%. zoom info. not the other zoom stock two is avis budget brgrou. second quarter revenue beat forecast cost cuts and fleet management helped drive the results shares up 5.5% in the pre-market stock three is arista networks above estimates and the networking company posted the first $1 billion quarter in revenue. arista giving strong third quarter guidance shares up 5% in the pre-market trade. straight ahead on the show, why new investor attention on pinterest is not changing my

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is it turn around tuesday? it is not taking shape right now after market kickoff the trading month with a whimper and futures are pointing to

a lower open as you can see. capitol hill, the race is on to get the massive schumer/manchin spending package approved before congress leaves on break democrats try to land what they he c can see as a legislative victory. and crypto crackdown over a multimillion dollar ponzi scheme it may only be the beginning it is tuesday, august 2nd, 2022. you are watching "worldwide exchange" here on cnbc welcome back to the show i'm dominic chu in for brian sullivan it is 5:28 in the east coast we are poised for a lower open dow implied lower by 145 points.

s&p down 27. the nasdaq tech heavy is down 101 if the futures hold in the opening bell in the bond market, yeelsields moving lower 10-year treasury is 2.5% 2.55% the last trade there 2-year treasury a hair above 2.85%. we'll check that out onning energy prices falling again. wti crude $93.59 that's good relative to what we have seen in the last couple days world benchmark ice brent is $99.52 off 51 cents right now .50% decline natural gas is $8.11 down 2%. let's get a check on the top stories with silvana henao

>> dom, good morning twitter is proving the social circle over the $44 billion takeover bid by elon musk. twitter has subpoenaed information from the elite silicon valley investors the paper points out that some of those subpoenaed have not been previously named as being involved in the deal suggesting twitter is going deep to get information to support the legal attempt to force musk to buy the company td bank is close to agreement to buy investment bank cowen. they are in advanced talks in what could be a more than $1 billion deal an an nouncement could come today.

cowan shares jump on the news. and instastagram is relocat. he is moving to london later this year. adam mosseri is building out the presence there by hiring more staff to work at meta's offices in the city. london is meta's biggest engineering hub outside of the u.s. the move is temporary and partly driven by mosseri's desire to live in london, but it is a cost saving measure as engineers in the uk are three times cheaper than in san francisco. sounds like a deal >> economics drive a lot of the decisions. silvana henao, thank you senate democrats are waiting for ruling from the chamber parl parlia parliamentarian to override the

rules. under the reconciliation procedure they are hoping to use, democrats need a simple majority instead of the 60 votes to pass the bill senate majority leader chuck schumer plans to debate this week ahead of the august recess. still unknown is whether arizona's senator krysten sinema will lend her support to the proposed legislation let's talk more about this now with isaac boltansky at btig isaac, this is a scenario which is not a surprise. they have been talking about the legislation for a while. it came as a surprise when senator joe manchin proposed a deal and got one done with chuck schumer. what exactly does this is a about the dynamic in washington with regard to getting legislation done >> everything schoolhouse rock taught us about a bill becoming a law is a lie, dom. it was closer to that old adage

that things in d.c. are possible up to the point they are inevitable what we have here is amounting to a shocking surprise that the deal was broached, but the two u.s. senators were able to keep a secret for this long and what was a pretty gambit deal and announce and put it on the fast track to get it through the senate over the next week. >> senator manchin had been the main lightning rod or main face of the opposition within the democratic rangks for a good while. we have not forgotten krysten sinema they need every vote to get this done what exactly is likely going through senator sinema's mind

with regard to whether she is going to lend her support for this bill? >> look, i think we viewed manchin as a higher hurdle in large part because he was willing to engage more with the press. willing to give more quotes and comments regarding the negotiations senator sinema from arizona is another hurdle that has to be cleared. i'm telling my clients there are three "ss" we need to worry about. sickness all 50 members have not been present throughout the month of july senator leahy got a hip replacement and six members tested positive for covid in the last month sickness number two is the s.a.l.t. brigade. menendez or gottheimer in the house. that is an issue we have to

watch. the last hurdle is, as you mention, krysten sinema. my odds are she still in favor of supporting the bill it will be difficult to have her john mccain thumb's down moment given there are numerous provisions in here she supports. i'll watch the vote-o-rama you are playing with live ammo republicans will force tough votes on targeted amendments you can see senator sinema say i support pulling that on the proposed change to carried interest for example or i support hardening the line on immigration with something called title 42. this will be a vote-o-rama that will happen the end of the week origi the beginning the next. >> before i leave, senators

manchin and sinema and the party for the democrats and republicans are jockeying ahead of midterms. not everybody is up for election a lot of optics at play. what would have to happen for either side for them to consider this a victory >> look, i will tell you based on my conversations here in d.c., most democrats realize this cake is basked for the midterms and the house will most likely flip. we can debate if the democrats will have a huge midterms with 40 plus seat swing or closer to 20, which is my base case. let's keep in mind, democrats have a four-seat majority. that will go to three seats after a special election next week the house is flipping. i don't know what the senate will do. i don't think anyone does. dom, it is important to highlight the odds overwhelmingly in favor of divided government next year no

matter what happens with the bill that is the message we should seize on the divided government next year. >> isaac, i would be remiss if i did not ask abou and taiwan anything to worry about? >> everything. we will not have geopolitical tensions thaw anytime soon that has real implications for trade policy and other investment related dynamics with china and the u.s. >> all right isaac boltansky, we appreciate it. the s.e.c. charged 11 people for the roles in creating and promoting a crypto fueled ponzi scheme allegedly that raised $300 million from retail investors around the world the criminal crackdown could be the latest domino to fall in the industry rocked by crisis.

tech reporter mackenzie sigalos joins me now we heard this word tossed around with crypto. what makes the case more telling? >> dom, we heard the terms ponzi and pyramid scheme in the crypto sector when it comes to your questions, specifically, recently the s.e.c. zeroed in on the platform called fours it allowed millions to enter into transactions with smart contracts. under the hood, investors were earning profits by recruiting others into the operation. regulators say fraudsters canno circumvent circumstance laws by smart contracts and blockchains. this is not an isolated case

celsius, once a titan, is now in bankruptcy court and accused of running a ponzi scheme celsius offering over 18% annual return as a tactic to lure in new deposit ors to pay out old ones a lot of allegations are flying around right now >> you mentioned, mackenzie. forsage and celsius. 3arrows which dealt in the crypto sphere. does the list end there? those are three catalysts for a sector right now three big names in there >> the list is not thin there. crypto voyager filed for bankruptcy in the district of new york that i'll monitor on

thursday voyager had more than 100,000 creditors and between $1 billion and $10 billion in assets and liabilities of the same value. the ceo said after the company goes through the proceedings, customers could get some of their money back so a lot of those users are hoping to get clarity on next steps. >> wait a second $100,000 is a staggering number of potential clients is there any indication of how many of the clients were retail folks like you and i as opposed to institutions or mom and pop what about celsius and then voyager both names had trattracted interest >> voyager and celsius were major names with retail traders. they offered high interest rates. voyager signed up 3.5 million users. celsius had 1.7 million

customers as of june both in bankruptcy court and some customers written to the southern district of new york to plead their case many customers said celsius lied to them during the weekly ask me anything on youtube. and alex said that celsius was better than a bank and safer and offered greater returns. in the case of voyager, they were led to believe the deposits were fdic insured. they were not. as we enter the territory, they will get into the bankruptcy weeds and set new precedent. >> it has to be. mackenzie sigalos, thank you. shares of pinterest are taking off despite missing on the top and bottom lines we dive in to the surge for pinterest and how it and some of the other stay at home plays are

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for the second quarter it issued weak guidance for the current quarter as well. but better than expected user numbers and elliott management and social media is the company's largest investor hoping to fuel the surge pinterest is trying to buck the trend of other stay at homes that have been hit hard. zoom video and peloton and roku and etsy down 40%. joining me now is lloyd walmsley lloyd, there are many catalysts for a stock surge like this. the fundamentals maybe don't justify it how much is the activist involvement and how much is the short interest in the stock going into this factoring the surge in pinterest >> i think you put your finger on it. it is about positioning and

expectations you have seen snap cut dguidance a month after giving it and missed it again. pinterest almost hit the april guidance it got low for the stock and they he beat low expectations. positioning was net short. you are getting a squeeze here numbers were better than any conversation we had with investors. they are not good on any absolute basis the company is still seeing growth slow quite a bit. it is a tough environment for everyone clearly better than people feared after watching what happened to snap and twitter for that matter. >> lloyd, this is a stock that over the course of the last 12 months, one year, lost 2/3 of the value. that is not unheard of many other companies in social and communications services have

seen similar moves is this 19% jump one you want to maybe believe in a little bit more for pinterest are there the fundamentals of a turning point as opposed to a bounce or short squeeze? >> i think there are some indications things are stabilizing. they see user growth decline coming out of the pandemic for the last several quarters. you did see sequential stability guided to slightly better. that is important. you are also looking at a new ceo taking the helm. bill reddy a lot of excitement that bill coming into the network. he has incredible background with paypal and google he was in charge of google shopping turned google shopping around effectively and now stepping into pinterest where that is a

core part of the story and lagging. there are a lot of reasons to be excited. we're neutral rated on the stock. there's mild upside to the stock, but not enough to get us that excited until we see more proof points. >> lloyd, it is a hold you are neutral on this. in your coverage, you cover tech and communications names what is the buy fundamentally? which one is better than pint pinterest? >> amazon is our favorite right now. what we see with amazon is they are just enough getting through the toughest comps from the pandemic your optical headline growth is getting back to attractive growth rate. they overbuilt on capacity and supply they are now taking that out of the system

the margins are going to start to look significantly better, we think, going forward for amazon. that is one that feels like they've gotten through the hardest part of the post pandemic era and they are getting back toward normalized environment where they can start to show much better profit growth. >> lloyd walmsley says amazon over pinterest thank you. still on deck, truist advisory's keith lerner says the s&p has to run for the year. and as a reminder, join us virtually for the cnbc small business playbook tomorrow august 3rd insight and advice from top experts on how businesses can hedge against inflation and ply chain disruption and labor challenges and more. sign up by scanning the qr code

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welcome back as you can see, it is a very busy kind of day ahead for the markets. at 10:00 a.m., we get the unemployment picture with the jolts report that is ahead of the monthly jobs report on friday. we get a look at vehicle sales for july two fed heads speaking today 10:00 a.m. is charles evans and then st. louis fed president james bullarrd. we have earnings from caterpillar and amd and airbnb and starbucks and uber.

if you look at the one-year chart of the s&p 500 you see a nice 13% move higher off the lows in the s&p as folks said what this may be the bottom taking place maybe this is the time to dip our toes in. it has been interesting that the three sectors that have done a lot of the heavy lifting are consumer discretionary and amazon and tesla and energy. look at energy and tech. maybe it is just not energy bouncing back. maybe it is back to consumer discretionary. import for more, let's bring in keith lerner with truest why the renewed interest in comm

services are whee going back to the same playbook >> dom, great to be with you although we are seeing red, with growth sectors in general, we have seen improvement. that is a reflection of the slowing growth we had higher interest rates now we have slowing economic growth and low interest rates and inflation expectations moving down. dom, rotation back to growth the old playbook is growth is more scarce and when growth is sk scarce, people look for earnings stability. that is benefitting. dom, we were under weight for most of the year before the surprises last week. we upgraded to neutral. >> is this the situation, keith, where investors should feel more comfortable from the mega cap tech and comm services they are better to weather a

down turn or treasury yields fallen to 3.5% almost down to 2.5% at this point is a recession now the overriding narrative >> i think so. dom, we are still under weight communication services if you look at the sector, it is making a new relative low as it did yesterday. technology sector is moving higher a difference which is important there. the technology sector has the bigger consumer and business names holding upp better. this is a relative call. we came out on friday after saying the june lows and not selling this market and it was oversold we were saying it is time in our view for overallocated to start trimming back. we think tech will hold up up better. >> we spent a good amount of the show, keith, talking about the

idea there are geopolitical risks out there. we just named a number of potential catalysts on the economic front to change the narrative overall. what is your feeling with regard to whether or not is environment is one still constructive? you mentioned the relative overweights you had. can people feel good about the market with china and taiwan and russia and the energy crisis 12k >> i think this is over a three or four-year time period from the shorter standpoint, we recommend trimming positions starting on friday the risk/reward is not compelling, dom. one thing we have to remember is the global -- fed started raising rates in march there is lagging debate of recession or not the important question is or the answer is the economic growth will be slowing and we think

upside from here is happening in the 3% to 5% level we think there is a down side which sees that. we don't think this is the time to be aggressive we are overall positioned in the portfolio. >> keith lerner, thank you >> thanks, dominic. that is it for us on "worldwide exchange. futures are at a modest level at opening bell "squawk box" picks up coverage next see you tomorrow cause it ield ...clinically shown to improve joint comfort within 7 days. osteo bi-flex - find our coupons in sunday's paper. at xfinity, we're constantly innovating. osteo bi-flex - and we're working 24/7 to connect you

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good morning stocks in china tumbling overnight as investors await speaker pelosi's visit to taiwan today. we take you live to beijing for reaction. friends of elon musk are reportedly probed by twitter as

it looks for the termination to buy the company. pinterest shares soaring despite the miss on earnings and revenue. we will tell you what is behind the move higher. it is tuesday, august 2nd, 2022 and "squawk box" begins right now. good morning welcome to "squawk box" right here on cnbc i'm andrew ross sorkin along with joe kernen. becky is out today joe, the boys this morning we have a lot going on this morning. right now, you are looking at the dow off 155 points nasdaq off 127 points. s&p off 31 points. let's show you treasury yields 10-year treasury is standing at