reduce shipping costs and print out shipping labels it's my secret ingredient shipstation the number 1 choice of online sellers and wolfgang puck go to shipstation.com/tv and get 2 months free it's 5:00 a.m. at cnbc global headquarters. stocks trying to build on late-day momentum after tuesday's selloff. t-minus the first nationwide rail strike since the 1990s. it could bring the economy and supply chain to a screeching halt. vladimir putin and xi jinping meeting face-to-face today for the first time since the invasion of ukraine began.

plus, hands-on with the new iphone 14. the model our tech team says you should buy now if you are due for an upgrade. later on, the billionaire who issing giving away his ent company in the name of what he says is his one and only shareholder. planet earth. it is thursday, september 15th, 2022 you are watching "worldwide exchange" here on cnbc good morning i'm cdominic chu in for brian sullivan let's kickoff the futures. somewhat muted a day after the markets yesterday saw a major average move to close slieghtly higher after tuesday the dow implied higher 44.

the s&p up by 2 and nasdaq by 4. fairly flat, but stable. on the treasury side interest rates triggering the move in the wake of inflation data for the 10-year treasury note, 3.45%. the 2-year treasury a hair above 3.82%. the 30-year treasury at 3.5% in the oil market, we are seeing moves there as well. you can see right now with the moves to the upside for wti. up about 18 cents. $88.66 ice brent crude is up about a quarter. $94.33 a bit of stability in many parts of the market. let's get a check of the trading in europe with julianna tatelbaum standing by in the london newsroom with the latest.

good morning, julianna >> hey, dom. good morning let's chkickoff with asia. the shanghai pulling back 1.2% after the central bank in china left interest rates unchanged. outside of china, we did see green overnight. hong kong with 4%. nikkei 2.25. jim l similar move higher in australia. we got green signals this morning. dax is up .25% the real outperformer here is long the uk is the spanish market strong bid for the spanish banks after the government said it is open to modifying a proposed bill on the windfall tax on banks. we have the italian market trading higher by .25% the energy space, we are keeping

an eye on shell. we got news with the new ceo and the company will be taken forward. dom. back to you. >> julianna tatelbaum live in london thank you. let's check on the top corporate stories with silvana henao. good morning >> dom, good morning oil giant shell announcing the ceo will step down at the end of the year after a decade at the helm the company appointing the next chief executive effective january 1st. the news follows reports that shell's board had met several times to draw up plans for the departure. disney's ceo bob chapek is considering merging hulu with

disney plus. any merger with the two services would require the company to buy one-third of hulu which is owned by comcast the two have agreement for disney to acquire comcast stock in 2024. california is filing a lawsuit against amazon alleging anti-trust amazon's rules bar merchants from selling products at lower prices on its web sites. dom. >> silvana henao, thank you very much we have a quick market flash. ethereum completing the merge. marking the most ambitious software in the crypto world today. the upgrade is set to reduce the ethereum energy and carbon

footprint by 99% right now, cryptocurrency is up. bitcoin up 1.25% ethereum prices $1,602 up .75%. when we come back, the clock is ticking on the country's first nationwide railroad strike since the early 1990s. now congress is getting involved we have a live report from d.c. straight ahead. and president putin and president xi meeting with a face-to-face for the first time since the russian invasion of ukraine began. it is the first time xi left the country in more than two years amid the pandemic. we have fred kempe from the atlantic council with what it means for investors. and hands on the iphone 14 the features and how it stacks up to the phone you may be holding in your hand right now we have a very busy hour still ahead when "worldwide exchange"

returns after this break

as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. ™ an xfinity rewards

special offer. xfinity customers join xfinity rewards and get an early access code to play the open beta. early access begins september 16th, first on playstation. visit xfinity.com/rewards. welcome back to "worldwide exchange." to the united kingdom and hundreds of thousands expected to visit westminster hall the next few days as the queen's coffin lies in state ahead of the funeral on monday. we have tania bryer with more. >> reporter: good morning, dominic. i'm across the river thames here

from the houses of parliament. as you see behind me a queue of well wishers heading to westminster hall to pay their final respects to queen elizabeth ii the queues are two miles at the moment and will expand today as they go past, they have to go cross the bridge and back over victoria gardens and into westminster hall the mood here is very calm and respectful i've spoken to a few members of the public here queueing up here who say it is important for them to go and say final farewell and pay respects to a queen who has reigned here in the united kingdom for 70 years >> tania, as you talk to the folks out waiting in line, is there a sense right now that when they do move on and get to

see the queen lying in state, that they will feel that sense of closure or do you think there is still attachment that many citizens have and maybe mourning for some time now? >> reporter: you know, dominic, i think the biggest reason why lots of them here want that sense of closure they want to pay respects to the queen. they've all admired her so much. of course, they understand that king charles iii, who has already taken over, needs their support and the support is there. they will be mourning the queen for a long time to come. of course, the transition has already taken place. when king charles iii has been greeted by the clorowds, it has been with warmth and support they want him to succeed >> tania bryer, thank you very much we appreciate it we have breaking news.

we've spoken about the looming railroad strike that could be threatening america and the economy. we have a statement from the white house and biden administration they are saying that they have reached a tentative agreement possibly reached tonight an important win for the economy and for the american people. they call it again an important win for the economy and american people this is according to the white house statement by president biden on a tentative railroad labor agreement. we will have more at 5:30. right now, you can see the futures moves. somewhat stable and muted. some big rail operatoperators, pacific, csx, others are kind of moving a little bit fractionally higher in the pre-market trade union pacific and norfolk southern and others. still on deck, no electric vehicle or hybrid option here as ford unveils a new mustang that and other top trending

stories when "worldwide exchange" returns after this break. >> announcer: today's big number $35 billion. that's how much deutsche bank expects the total addressable market will reach in the space sector by 2030 that would represent a more than 335% jump from this year rse mars a moment this pure demands a lotion this pure. gold bond pure moisture lotion 24-hour hydration no parabens, dyes, or fragrances gold bond champion your skin

another busy day? of course - you're a cio in 2022. but you're ready. 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 converged network. from the most innovative company.

bring on today with comcast business. powering possibilities. ♪♪ ♪♪ ♪♪ ♪♪ welcome back time for something random but

interesting and for that we send it over to brian sullivan for our rbi. >> time for the morning rbi. it will be a quick one we got to talk about one thing that is stocks the really tough year it has been for tech. most of the big cap tech names are down this year you know that. you probably care of the biggest of the big the names you know and may own and the ones that control the market apple, amazon, microsoft and facebook tuesday's collapse piled on business losses this year. that is not editorializing this is the combined market loss for amazon and apple it is nearly $3 trillion i know that seems impossible we're talking five stocks. it is true here's the math. microsoft has lost the most total value.

down $672 billion. down $100 a share in the year. facebook with the same meta was a $380 stock a year ago. now it is $150m amazon lost $573 billion from investors since last november at $188 a share it is $127 alphabet lost $464 billion add those up carry the one. $2.8 trillion in lost market value. that is probably more value lost than the total value of most global stock markets oh, those five names control most of the big etfs you may own. if they go down, it is hard, maybe impossible, for the overall market to go up. when they go down big like did,

it will take others with them. tuesday was responsible for one-fifth of the total lost. $489 billion in market cap lost in five companies in just a couple hours of trading. that is random but interesting and painful. thanks, brian sullivan, for that rbi take a look at what is happening with russian president vladimir putin and chinese president xi jinping set to meet in uzbekistan both arriving in country this morning. you see here from the video and this marks the first time the pair sits down face-to-face since the russian invasion of ukraine and the first time president xi has left his country in two and a half years. china and zero covid for more on what to expect, let's bring in fred kempe. president of the atlantic council. fred, this is a big deal the optics are not just massive

with the people involved, but key in terms of timing take us through what it means for these two super powers, so to speak, to get together in the wake of russia's seemingly at least, failures on the war on ukraine in the last couple weeks. >> thank you very much for that question so first of all, let's not forget that putin met ahead of the olympics with xi and three weeks before the military action and got the green light from xi. they siendgned an extraordinary statement talking about a no limits relationship. now this many months later, it may be the most dangerous moment in the war certainly the most dangerous mood in the war for putin. that makes it dangerous for all of us because he has been losing

territory in kharkiv and the east how will putin react to the humiliation? will ramp up the war or will he use nukes? that is talked about in washington at the moment i would call this the most dangerous moment in the war for all of us. this is a moment where a meeting with xi is crucial you hope the chinese president is going it say to putin this is a time fors peace. this is a time to pull back a little bit please, don't turn to your nuclear weapons. >> over the last century, fred, there's been an evolution. the two global super powers for the last half century have been the united states and russia not because of the military might of both of them, but the economic influence and also the

access to natural resources here in the u.s. and in russia. do you think there is an acceptance right now between president putin and president xi that china is now the only real super power in the world left next to the united states given the fact that we've seen such economic influence has that replaced the military side of things in your mind? >> certainly russia is the junior partner in the relationship with china. in a nuclear and military sense, russia is still a super power. in an economic sense, obviously it's not china is it is a much more complicated and complex world. because of that, russia, which is hurting badly from sanctions, needs someone to buy regularly its energy at high prices which china is doing china is actually crucial to russia's war effort. conversely, russia is key to xi

jinping. if russia fails in ukraine and russia is turned back in ukraine, it has implications for china's ambitions with taiwan. conversely, if russia is successful, if the west quits helping ukraine and ukraine falls, it is good news for china from the standpoint of the ambitions it has toward taiwan there are global stakes here that are not to be underestimated >> fred, is there a -- there is a possibility obviously that this could happen, but right now there hasn't been any overt military support provided by china to russia. do you envision that could be an evolution that we could see that there will be a formal tie-up between president putin and president xi in the wake of the meeting that china will explicitly support russia not

just with buying oil, but supply them with the weapons? >> there is logistic support for the russian argument for the war. anti-nato and the west was responsible. that is important for moscow and the world stage. you haven't seen a lot of weapons from china, but china is empowering others, whether it is north korea or iran or others. the question at this point in this crucial moment in the war for putin is in the meeting today and we may not know. the readout may not make it clear to us. will china double down on russia and give putin the support he needs to encourage him to continue or will it send a message saying, you know, at this point, it is becoming counter productive for us. don't forget china's message is protection of national

sovereignty. they wouldn't want russia to change the national sovereignty. they don't want to abandon their ally they may double down it really hurts them in terms of their own reputation, particularly in europe on the world stage. >> fred, before we let you go, can we talk about the changing trajectory with regard to president xi and president putin? president putin is seeming to face dissension in his country president xi in china is on track to become one of the most powerful rulers in chinese history. that includes all of the dynasties before him what exactly is the disconnect and how do they reconcile that in the coming months and years >> it is such a fascinating question because xi jinping is about to be crowned for a third

term and probably for life as china's leader he is doing it with his economy slowing and with his covid policy not worked and demographics not working and with his warrior diplomatic policy backing firing on the world stage. both of them have slowing economies, obviously russia is in a lot more trouble than china. china is not doing all that well on the one hand, you could say, well, they are not as strong as we thought and these are two weakening countries in.ne diffet ways inweakening, it may be dangerous because a nationalist may be lashing out to rally the forces i don't know what we will hear from the meeting i would study every tea leaf you can get a hold of today. these are two countries determining the future and it will be determined if they stick together and whether putin can salvaging something for himself

out of ukraine >> fred kempe with the latest on china and russia thank you. still ahead, an exclusive with billionaire entertainment ceo thomas tull. his take on stocks to crypto and the fed and more if you haven't done so, follow our podcast if you missed "worldwide exchange" check us out on apple or spotify we'll be right back. dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones

when hurting feet make you want to stop, it's dr. scholl's time. our custom fit orthotics use foot mapping technology to give you personalized support, for all-day pain relief. find your relief in store or online.

an xfinity rewards special offer. find your relief xfinity customers join xfinity rewards and get an early access code to play the open beta. early access begins september 16th, first on playstation. visit xfinity.com/rewards.

stocks trying to claw back losses from tuesday's selloff as attention turns to the big fed policy meeting. breaking news. the u.s. reaching a tentative agreement with rail workers to avert a railroad strike. a live report coming up. the billionaire who is giving away his entire company in the name of who he says is his one and only shareholder planet earth it's thursday, september 15th, 2022 you are watching "worldwide exchange" on cnbc. welcome back to the show i'm dominic chu in for brian sullivan here is how stocks are looking halfway through the 5:30 a.m. eastern time hour. equities are positive. the dow implied higher by 60

s&p up by 5. nasdaq up 9 points that's not a lot it could at least for now seemingly get us a little bit more positive momentum that we saw at the end of trading yesterday when we moved out of negative territory to close positive on the yield side, interest rates are focus ahead of the fed meeting next week. the benchmark 10-year treasury is 3.44% 2-year treasury is 3.83% that inversion is still in play right now. the 30-year treasury is below 3.5% if we hit oil prices, you will see modest moves higher. it has been a choppy trade now moving lower $88.35 for west texas inter intermediate 7 cents to the down side for ice brent crude.

let's check on what is happening with cryptocurrency. you heard that ethereum merge. it was completed successfully. up 1%. $20,079 per bitcoin. ethereum is drifting down the last trade marginally lower on the session. if you take that in effect and check out what is happening overall with some of the moves that we're seeing in the rail companies. this is a breaking news story in the last ten minutes the white house says they have reached a tentative agreement to avoid a nationwide strike by railroad workers ylan mui is live in washington with the late breaking news. ylan, we didn't get a lot of details, but the biden administration claims the tentative deal has been reached. could you give us details?

>> reporter: dom, president biden is framing it as a win for the rail workers and win for the rail industry. most importantly, he says, a win for the american consumer. that statement announcing the deal, he said the hard work done to reach the tentative agreement means our economy can avert the significant damage any shutdown would have brought the industry had estimated that a rail strike could cost the economy $2 billion a day there have been 20 consecutive hours of negotiations. labor secretary marty walsh was meeting with the rail scariere s and unions he said this is awe is a balanc approach to ensure the workers and industry and economy can all walk away with something to put it in perspective, dom, the talks have been going on since 2019 clearly these have been issues they have been working with.

the deadline to reach a deal before that strike could have happened was midnight tonight. the sticking point was not really over wages. under the agreement that an independent panel proposed, workers would have seen double digit pay raises $1,000 annual bonuses retroactive to 2020. the real issue was around sick leave. that is something that the worker says they need more flexibility with, particularly in the wake of the pandemic. the independent panel proposed a compromise could only give workers one additional sick day or paid leave day i should say we don't know from this statement how that is being addressed with the unions. whether or not they have come to agreement over how much sick time they should have received workers have been asking for 15 paid sick days we will see what those details are and the compromise actually is clearly democrats, republicans, industry workers, everyone

agreed if the strike occurred, it would have been an economic catastrophe. that danger for now, dom, looks to be averted. >> it is tough and i don't want to become cynical. i understand there are real consequences for the economy and whatnot. how much effort was being put into this and pressure brought to bear by the white house and congress congress may have acted if they couldn't reach a deal as well. because we are now approaching that all-important midterm election season. the administration here for president biden has to deal with america grappling with inflation. is there a sense this is front and center because it will be about the economic state of america when it comes to the elections this fall? >> reporter: i do think this was a priority and you saw that with the lengthy negotiations yesterday led by the top cabinet members condition the administration democrats have largely left this up to the white house to negotiate and handle

it is also true, as you mentioned, dom, that congress could have a role here there has been debate in the last24 hours with democrats and republicans whether congress should step in preemptively. democrats have been resistant to that saying over the past tday, they wanted the process to play out. they were optimistic the two sides could come to agreement without congress weighing in congress in the past has prevented or ended a rail strike congress has the power to force workers back on the job if they would have taken that step of shutting down the nation's rails. >> ylan mui with the latest on the rail strike. thank you very much. let's get to the top corporate stories. silvana henao is back with those. >> dom, good morning a new lawsuit filed in san francisco court is accusing tesla of deceptively misleading the abilities of the auto pilot

and full self driving features the suit which seeks class action status accuses tesla chief elon musk of misre misrepresenting the technology and making promises he cannot keep tesla owners have to shell out thousands of dollars extra for the self driving features. samsung is visiting awn shifting away from fossil fuels. by some estimates, the biggest energy consumer of the thauns joined the campaign which aims to get 100% of electricity from renewable sources like wind or solar power. samsung plans to invest $5 billion through 2030 on projects aimed at going green. shares of arconic citing

production issues and encrisis europe they have a revenue range cut from the earlier $9.6 billion. the company highlighting that hyper inflation energy costs are driving cost pressure which are expected to have a negative impact on third and fourth quarter results. >> silvana henao with the latest thank you very much. back to the markets and sit down with thomas tull. brian sullivan spoke with the founder and ceo touching on a number of topics and the steep selloff we saw on tuesday. >> i think right now the amount of complexity in the market and it is hard to judge what would happen we have never come out of a global pandemic before there's a land war in europe china and the united states continue to be more add versaad.

you are watching the fed try to pump the brakes on everything. at the same time, if you go too far, you are going to make the markets nervous and jumpy. i think we saw that yesterday. >> very nervous. very jumpy do you have faith in the fed >> i think they have an incredibly hard job right now. i think that you have to take a step back and at least say are the indicators that you have and metrics you used to measure things for x decades, are those still as relevant as they used to be? >> are they? >> some yes. i think there are some that are probably out dated the velocity of things happening now is definitely different than it used to be. look, at the end of the day, there is also the sort of common sense side of this that says families are having a hard time.

food prices are certainly up that's clear you know, it will be interesting to see how this all plays out. >> how do you see it playing out? you have a lot of money to invest you invest in companies. we'll get to that in a minute. you have to pick your spots. maybe you don't care about the whole market, but individual companies. when inflation hits, it brings down valuations, including your companies. >> i think what i have to ask is if you still fundamentally believe in the business and model and management teams i think that's why the aptitude of the management teams to work through this matters when valuations are probably too high -- >> even still? >> it depends on the sector. things have become in my opinion so bespoke to say the entire growth sector

is bad -- i don't think that's a very sophisticated view. some growth is different than others. >> you can't say that. i heard that buy this whole group you are saying you have to be a surgeon. >> yeah. you have to be thoughtful and look at each situation i think there are great companies that still deserve investment you just have to ask more fundamental questions. >> i'm sure people pitch you all the time tull should invest in this you infefevested in figs what is the first question you ask of the company itself? >> you want to understand what do you do and what problems are you solving and what are you doing differently and then to me i'm a huge believer in people.

ing both the wrong and the right. so once you convince yourself this is worthy of investment and the sector is right and this is a new and novel thing or different way to approach it usually there is a technology component. is this the right team to shepherd this through? those are some of the things i pay attention. >> how many companies do you turn down versus invest? 90% get whakcked >> i would say over 80%. it doesn't mean they're not great companies or might not become great companies philosophically or the mission or thought at that time doesn't work you certainly want to be open minded at the same time, i think your success is as much about what you passed on as what you did.

>> all right there is more of that interview with thomas tull and brian sullivan touching on the investments. including sandbox and aq his growing interest in cryptocurrency and path forward with the relations with u.s. and china. head to cnbc for the content of the full interview coming up on the show, hands on with apple's newest iphones the features that may make you want to upgrade right now or maybe wait another cycle or two. look, we're going to tease this by tweeting this out in a bit. as we head to break, sofia pitt doing work on the set and walmart with a virtual fitting room to see how clothes would look on them customers can choose a model that resembles them in body type and skin color and hair color as well

you can try on from the walmart private brands and national like levi's or champion or items on the third party marketplace. and ford is redesigning the m mustang for 2024 no hybrid of electric options here this could be the final gas power muscle car out of detroit ever the founder of patagonia is giving away the company. he is transferring ownership to the trust to use its profits to help fight climate change. patagonia is worth close to $3 billion. expect to contribute $100 million a year to the trust depending on the health of the business after informing employees on wednesday about this move, the company updated its web site to state how earth is now our only

shareholder. trending stories "worldwide exchange" is back after this ever wonder what everyone's doing on their phones? they're investing with merrill. think miss allen is texting for backup? no she's totally in charge. of her portfolio and daniel g. she's building a greener future and he's... running a pretend restaurant. and phil? phil has questions, but none of them are about his portfolio. digital tools so impressive, your money never stops working for you with merrill, a bank of america company.

go. go green. go wind turbines. go gorgeous reliable grid. go emerson software. go science people. go breakthrough meds and safe science. go space age welds for super silent cars. go big. or go home. from software that delivers new cures at warp speed, to technology that makes clean energy reliable, emerson innovation helps make the world healthier, safer, smarter and more sustainable. go boldly. emerson. welcome back the reviews are in for apple's iphone 14 lineup the consensus it's pro or bust let's find out with sofia pitt who spent time with the device the model, sofia, the question

to kickoff the interview is i have an iphone 11 pro. it's nice. i keep phones for years until they really die. do i want to upgrade this phone to the new 14? >> dom, look at the camera on the back of the phone. >> it's good >> look at the camera on the new phone? it's a bit of a difference >> it is you still have the three lens and everything else. what is different about this phone that i want to spend that much money to upgrade? >> there are few features on the 14 pro and pro max i would not go for the base model. pro max has the dynamic island which you can see here a blend between software and hardware where you get interactive features with whatever you're doing. you have timer over here sorry, you can see it better now. that's really cool it's different it is not like anything else

iphone has before. the camera is amazing. the chip processor is fast >> noticeable difference with speed and latency getting in and out of apps. >> the battery is amazing. i used it all day. watching, streaming, twitter and reading articles it did not die until the next morning until 11:00. >> i pretty much have to charge my phone every day >> once a day? >> pro users know you can go to the battery health and settings and see the battery life left on the phone. so this battery life could be a game changer for folks out there. especially business viewers on the road or planes >> they have turned things up. the always on display. it is dark right now it doesn't use as much light as

when the phone is on you can see all of the notifications and widgets without turning it on. it doesn't use as much battery which is great as you said before, if you have the 13, i would not get the base model. i would not get the 14 or 14 plus which hasn't come out yet it is coming out on october 7th. i would do the pro or pro max. >> for you, you spent time with the phone. what was the thing that stood out the most to you? i've had an iphone since 3gs i've only bought three or four of them in my life why that phone >> not only is the camera amazing. the new ceramic shield on the phone. i've broken my phone a million times. >> i have to put the sticker shield on. >> it gets dirty on the corners. it comes with the ceramic shield

that makes it more durable the camera is the main reason i use the iphone you can't go wrong with the camera samsung and android phones, but this camera is incredible. >> the endorse the for sofia pitt for the review of the iphone 14 and various models part of the process, head to cnbc.com. we havethe full content over there. sofia spent a lot of time with the phone. as we head to break, a reminder sign up for the investment conference of the year cnbc delivering alpha. it returns on september 28th just scan your qr kwcode on the screen or go to deliveringalpha.com to register. september 28th in new york city. we'll be right back after this

(vo) at viking, we are proud to have been named the world's number one for both rivers and oceans by travel and leisure, as well as condé nast traveler. but it is now time for us to work even harder, searching for meaningful experiences and new adventures for you to embark upon. they say when you reach the top, there's only one way to go. we say, that way is onwards. viking. exploring the world in comfort. what if you were a major transit system with billions of passengers

taking millions of trips every year? you aren't about to let any cyberattacks slow you down. so you partner with ibm to build a security architecture to keep your data, network, and applications protected. now you can tackle threats so they don't bring you to a grinding halt. and everyone's going places, including you. let's create cybersecurity that keeps your business on track. ibm. let's create

kwelcome back to "worldwide exchange." your agenda ahead. jobless claims on thursday retail sales and philadelphia fed manufacturing index. those are all due out at 8:30 a.m. eastern time. we get earnings from adobe after closing bell we are watching for news from vladimir putin and xi jinping's summit and meeting in uzbekistan china and russia and the streaming of the first regular season nfl game thursday night football on amazon prime it is the los angeles chargers versus the kansas city chiefs. a very big divisional rival game happening for the premiere of thursday night football on amazon prime. let's get more on the trading day ahead after the choppy day that climbed out of

the red to peek ahead water a bit. we have erin gibbs with us we know, erin, what happened with the selloff is this a set up for another leg lower? do we re-test the lows or do yes feel this is the all clear signal for now >> i think obviously yesterday's market action doesn't say oh, we completely put it past us. i think there is a possibility for more down side it is really all about the 10-year treasury and how people feel and that inflation reaction as you mentioned the reports coming out and if anything comes out that the economy is running too hot is disappointing and indications the fed will raise rates and the 10-year treasury go higher. we are looking for the yield on the 10-year treasury to break above 3.5 significantly and go

3.6 or possibly 4% that could certainly push the markets down just because the valuations did get a little highish or higher during the run up in june or july if we look at where we were trading on the valuation basis back when rates were 3.5% before, the market is about 14% higher on the valuation basis. certainly anything where it pushes yields up higher, we could see another down side or retreat back to those june lows in equity market >> higher yields means cash is coming out of the economic system the machine so to speak of the american economy does that mean recession is inev inevitable >> it certainly is more likely i think we're really set up for recession at this point. the amount the fed has to raise

rates at this point. we really do need to slow down i think it is really more a question of -- we're already in a technical recession. it is already happening. is it a deep recession or dramatic or three or four quarters where we still have unemployment below 5% and still constant job growth? sure it's very possible for me, it is really about what is happening on the corporate side will we see profit growth going ahead? right now, we look at forecasts and the type of revisions back down and 5% profit growth is below what we run at inflation right now. it really isn't attractive for investors. >> erin, do you have a top pick out there in your universe >> so, with all this down turn, i would say i really like

managed health care. united health care centene and united with the ups and downs with the high quality names. >> erin gibbs. thank you very much. we appreciate it that does it for us here on "worldwide exchange. "squawk box" picks up coverage coming up next

good morning whipsaw week for investors futures are higher a little bit as we await another batch of economic data head of next week's fed meeting breaking news. the white house says a tentative railway agreement has been

reached. the patagonia founder is giving away his company. why so many people are talking about it this morning. it's thursday, september 15th, 2022 and "squawk box" begins right now. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm rebecca quick along with joe kernen and andrew ross sorkin. here we are thursday morning u.s. equity futures are higher this hour because of the good news you heard on the potential agreement for the railway to prevent a strike that would have been bad news. this morning, it looks like dow futures are up 65. s&p futures up 7 nasdaq up 21 this comes after the day