is. welcome to cnbc on this wednesday, october 5 here are your top "five@5. energy's in focus. opec is preparing its first in-person meeting in two years, mulling dramatic output cuts we're live in vienna with the latest there. and signed, sealed, and delivered, elon musk backtracking on his bid to abandon his takeover of twitter,

now he's saying he'll go through with that deal. uk prime minister liz truss said to address fellow conservatives in the growing descent over her tax cut proposals. and amazon becoming the latest big tech giant to halt hiring amid growing worries around the economy it's wednesday, october 5th. you're watching "worldwide exchange" "worldwide exchange" ri right here on cnbc good morning i'm dominic chu at cnbc global headquarters brian sullivan is live at vienna, austria at the opec summit we've got a lot more but first let's chick off with a

look at the markets right now. the modest losses have accelerated a bit. the dow has lowering by 230 points, the s&p roughly 29 to 30 points and a 92-point decline for nasdaq at the plot of the opening bell markets coming off another solid session, the dow jumping more than 800 points, the s&p and nasdaq climbing more than 3% those two straight days of stock gains coming on the back of a pullback in bond yields. checking now, though, those treasury yields are ticking slightly higher. the treasury yield 7.2%. on cryptocurrencies, we're seeing some bitcoin and movement in bitcoin and ether to the downside just about flat on the session 20,12 20,124, ether prices, call it 43 and change. and getting a check on your morning's big money mover, we're watching shares of twitter surging after elon musk's

surprise decision to reverse course and revive his deal to buy twitter. twitter says musk plans to close the purchase at his original off of 54.20 a share sources tell cnbc that deal could happen as soon as this friday twitter shares are down half a percent premarket right now, but it's $51.76, $54.20 is the takeover price, but we saw a 20 cent jump on the heels of many of those reports. let's go worldwide julianna tatelbaum is live in our london newsroom with the action overseas. it's a mixed picture, julianna. >> hey, dom. good morning as for asia, it was green across the board. a bit of a catch-up trade especially for hong kong this was the outperformer, this shining star of the asian session. the hang seng index gaining nearly 6%. that was the best trading day in almost seven weeks i say a catch-up trade

the hong kong market was closed for a one-day holiday. the investors making up for it we saw a strong demand for energy, i.t., and financial stocks in hong kong. here in europe, a little bit of a different story. we're seeing some profit-taking in europe where it's red across the board for the european equities, but, again, this is after a major rally here european shares are up more than 5% in three days coming into today's session. we're keeping a very close eye on the eu leader as they're preparing for a summit in prague tomorrow and lots of hope and pressure building around more of a response to the energy crisis. just this morning we got news there is political agreement among eu leaders to move ahead with the next round of sanctions against russia dom, back over to you. >> julianna tatelbaum live in london thank you very much. let's turn to the oil market in what is likely going to be a historic opec plus meeting the group slashed production as

it comes together for its first in-person meeting in two years can see the u.s. west benchmark down about 50 cents or so. $86.06, ice brent future, $91.43, off one half of 1% as well as we showed you, brian sullivan is live at opec headquarters in vienna, austria, about what to expect out of this meeting we heard 1 million barrels cut, then 1 president 5 million barrels a day, now 2 billion barrels cut. you keep pointing, bidding me higher what's going on? >> 2 milbillion is the latest world. this is all chaetterdom. we'll have to wait and see oil is down. you can see as you noted we are

in person. julianna told you about some of the price caps an sanctions going forward, which i think is particularly interesting here. you can see security is starting to grow because the russian delegation is expected to attend in person. remember, he's not just the energy minister. he's the deputy prime minister of russia. he would be the highest ranking russian foishl visit europe since the war began and sanctions were kicked off. security in a couple of hours is going to get a lot tighter here. the oil is down. why? there is concern if we see these sanctions coming on, maybe russia starts to flood the market with oil. one of the ideas behind this reported cut is perhaps spike prices in the near term so russia can sell more they're selling it at a discount anyway raise it up, make a little more ahead of the sanctions so many moving parts here at opec, dom. the white house not happy about this meeting, not happy about the proposed cuts. there have been some stories

about janet yellen and others potentially calling around, ministers. i will say this. there have been some white house officials who are maybe talking to saudi arabia saying, hey, listen, we have a relationship, do you want to damage that relationship any further by making a cut we're going to ultimately see what happens here, dom, but, again, 1.5 to 2 billion barrels a day. that will be the biggest cut since covid hit. we'll be here all day and probably into the night from opec's headquarters here in austria. >> there are a lot of countries involved here, a lot of voices, a lot of views, reasons to act the way that they do is this expected to be a quick and easy meeting or are we expecting a lot of thisdrama and kind debate to play out over several days now >> i hope not. right now the talk is that the

decision may be made, that the meeting could be kind of quick the meeting is scheduled for 8:00 a.m. eastern time, 2:00 p.m. here, a press conference, of course, once they finish that decision we've seen it go multiple days let's hope that's not the case hopefully we can get that decision quick and go to the press conference and ask, perhaps, the prince what the decision-making was behind whatever decision that they might make you reference the u.n. i'm knock the u.n. a bit this may be bigger than the u.n. at the u.n., you get people who come in, talk, and they go home. this is trillions of dollars of economic output that is either going to be added or taken away from various economies literally if we do a million and a half two 2 million barrels a day, the price of oil goes up five to ten bucks, we're talking about shifting trillions of

economic activity to the benefit of the united states remember, if prices go up, maybe it will entice some of the producers to spend a little more who can't find labor we all know at certain amounts of price per hour, labor may, indeed, may be available again, a lot going on. we've got helima croft coming up in 20 minutes. >> it's always interesting to think that u.s. is the biggest producer if the prices go up, maybe we do benefit. brian, thank you very much we'll see you in a few moments with the big interviews. let's check now on some of the morning's other top stories. silvana is here with that. good morning. >> reporter: amazon is pulling its plug on the device for kids. it will no longer offer the amazon glow. it was revealed more than a year ago at amazon's hardware event it comes as they curb spending

amid an economic downtown. celsius has lost another executive. its co-founder and chief strategy founder has stepped down according to sources. leon's exist comes a week a week after the ceo resigned. and juul is expected to start talk with lenders as soon as this week to get companies together for a bankruptcy filing it's received requests from lenders. previous reports suggested juul was working with its legal advisers amid a dispute with the fda over whether it can keep its e-cigarettes on the market, dom. >> silvana, thank you. when we come back here, the markets are rallying, but the rally looks at risk as the futures look at an end to big gains. lay out whether stocks are

finding fresh legs or this is perhaps another bear market bounce plus elon musk reversing course saying he'll go through with his deal for twitter. "wall street journal" tim higgins pulls back the curtain on musk's decision and maybe the motivation behind it. and later on, not going anywhere janet yellen throwing cold water itat she's eyeing a potential ex we've got a very busy hour after "worldwide exchange" returns after this break another busy day? of course - you're a cio in 2022. but you're ready.

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welcome back to "worldwide exchange." futures right now suggesting that the big two-day rally we've seen in stocks might be over the dow is over by roughly some 230 points right now your next guest says despite the continued volatilitying long-term investors can start to get comfortable with these current market valuations as depressed levels delano sapporo is a cnbc contributor. thank you very much for joining us here. let's talk about your comfort level. why do you feel like this is the time you can start legging into markets? >> thank you, dom. good morning i think we can be comfortable but not two comfortable. twho-day rally as you mentioned is something that's welcome but i don't think it's sustained as you look at q4 trends and q1 but as you mentioned people can

start getting comfortable. i think a few reasons why is some marks are showing a turn, maybe a quarter to a quarter and more the investors could look at that they could also look at valuation for the s&p 500. you can get comfortable looking at the market against those levels, but especially if you look at the companies that we hold on that have been really, really devalued. there's some opportunities there for investors as well. >> you know, delano, one of the things we've noticed here, me specifically, is over the course of the last 10, 12 years, the consensus trade on any pullback is always to buy mega cap technology or adjacent-type

companies. we've mentioned we've seen microsoft and alphabet t parent company google, heading toward 52-week lows those are some of the stocks that have seen the biggest gains over the last two days as the market has bounced do you bloom that big tech trade is still in play should you be buying, giving the weakness that we've seen, or is this something where interest rates going higher is going to take a lot of the steam away from the trade in the future >> i think the trade is going to be there still in the future i think short term interest rates are going higher the stocks have been beaten up they're going toward the 52-week lows even with the two-day rally, the nasdaq is off around 30%, i believe. i think those trades will be fine in the long term. i think a few of those you mentioned with big tech are getting yields strong cash flow you're getting companies that i think are deflationary in the long term when kwlu look at

something like tesla and things that will happen in the future so i still like that trade as you mentioned over the past ten years. it's outpaced the value trade and it's outside of, you know, what's happened recently that's been the trade, and i still think that's the trade going forward. that's why we overrate many of those companies. >> what then is on the shopping list then. where are these opportunities with the nasdaq down 30 some percent, the s&p kind of in this bear market zone we've been hanging out in for a while is it energy is it those tech stocks we've talked about are there places in other staples companies even though they may be in some cases more expensive on an earning basis given that people have been pouring into them for the last several months >> we hold it obviously underweight relative to other things we hold and people holding energy have been waiting all of 2022, 2021, and have actually had great gains from that.

i think going forward you can kind of tier it out. you mentioned staples, health care, those are great areas for investors to be in you saw what tesla dropped on delivery those are opportunities. they believe in those assets long term to buy but it's kind of tiered out. you would take -- investors would look at it and growth and text companies as well as sticking with their staples, sticking with consumer staples, we realize the fed is going to be on pace for the next couple of quarters as well as the general economy is going to be pulling back the next couple of quarters those are areas for investors to be in. >> della know saporu, we appreciate it. liz truss trying to shore up political support from her own growing party as she faces fallout over her tax cut plans we'll go live overseas for her latest plea to allies. >> announcer: today's big

number $2 billion that's how much vc funding carbon technology companies received in the second quarter, according to data by pitch book. that's the strongest quarter ever

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fallout over her government's sudden u-turn on a proposal to cut the top tax rate for income taxes for payers on the wealthy side of thing. arabile gub day is live with more on this what is the prime minister expected to say with this type of keynote address >> reporter: quite a few permutations coming to the fore here. one, she's talking about the ha% tax cut rate and now doing away with cutting that away has meant that the party has had to lose that one part of the dist distractions that were perhaps part of a bigger package she had tried to put together on 43 pounds worth of packages that were aimed at stimulating the economy, getting growth up to around 2.5%, and even getting businesses to invest a little more she's probably going to pander to that base and try to ensure

that people understand there is a greater scheme to all of this. she's also going to tell them why she needed to act so quickly. today it's a month since she's taken the helm of prime minister, that's liz truss here in the uk. that means she's done so much in the time by making these quick announcements but not getting the right estimates from the office of responsibility as well, just trying to get a sense of what would the permutations be for the economy if they continue to borrow money for those tax cuts, which she had put in place so a lot of that messaging is going to have to come through and give us a clearer sense of what is to come here dom. >> arabile, we're showing charts the pound of guilt yields, your ee kwiv lelkt of treasury bonds. the pound right now is at $1.14 and change the reason i bring that up, it's returned to levels before that big announcement by truss's

administration's tax cuts and business plans are markets in your part of the world still anxious about what truss is going to say, or are we kind of right back to square one again? >> reporter: yes, so i suppose the way she did away with the tax cut has brought calm but the package bruit together by the mini budget, it was only worth 2 billion pounds it's surprising that took off. as you said, the pound is doing better in that context and now sitting back to prem-mini budget levels they put it back into the market by buying those so the yields would. get out of control interest rates were scheduled to hit around 6%.

that number has come down quite significantly. but markets will probably be cautiously optimistic with a sense of nervousness that if she does say something today that offers a sense that the tax cuts would still come back, it may indeed still offer up a little bit of weakness for the pound. >> arabile gumede, thank you very much. the company is expected to pull back our brian sullivan is live at headquarters in vienna, austria, in the lead-up to that big meeting. brian. >> reporter: yes, here we are. here's the question. are they about ready to make one of the biggest oil production cuts in demorn history they are cecile mckroft, she's your guest on "worldwide exchange" next

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and sending the global platform shares spiking in a big way yesterday. it's wednesday, october 5th. you're watching "worldwide exchange" on cnbc. welcome back to "worldwide exchange." i'm dominic chu live here at cnbc global headquarters, but brian sullivan is live at the opec plus conference in vienna, austria. we will check in with brian and a special guest in just a few moments, but first let's get right to the markets and your money as we're coming up to the halfway point in the 5:00 a.m. hour in the new york time zone futures indicating a 237-point drop for the dow, a 29-point drop for the s&p, and a roughly 86-point drop for the nasdaq markets are coming off another solid session yesterday, the dow jumping by more than 800 points. just yesterday the s&p and nasdaq both climbing more than three percentage points themselves those two straight days of stock gains coming on the back of a

big pullback in bond yields, interest rates so let's check on the treasury complex. right now ten-year benchmark note yields are at 3.70%, the two-year note at 4.12% let's check back in with silvana. >> speaking during a panel event, yelin told the crowd she plans to stay on as head of the treasury department saying there was no truth to a recent report by axios of her leaving the biden administration that report stated the white house was quietly exploring her replacement and that the outcome of the midterm elections would determine if yelin stays. amazon is pausing hiring within one portion of the e-commerce giant, the company confirming to cnbc in a "new york times" report it was halting roles in its retail

business amazon instructed recruiters to close all open job postings in those roles in the coming days and recommended canceling some recruiting activities. amazon is the latest to re-evaluate its hiring amid concerns over the downturn. according to bloomberg, a deal would involve part of emerson's commercial and residential solutions assets the deal which could be valued between 5 and $10 billion would depend on how much of the portfolio changes hands, dom. >> thanks very much. opec plus is said to be holding a historic meeting, the first in roughly two years. the group is expected to slash production amid pullbacks in recent months. ahead of that meeting, wti

benchmark down to $86.10 brent crude, $91.46. brian sullivan is live at headquarters in vienna, austria, with what to expect out of this meeting. and, of course, he's joined by a special guest. brian. >> reporter: listen. we're down a little bit today, dom. but we're up 8 to 10 bucks a barrel in the last couple of sessions on talk of what's going to happen here way tonight set the stage. this was supposed to be a virtual meeting. opec has been doing these virtual meetings think got to be pretty boring, kind of rubber stamping to get back to pre-covid levels all of a sudden everyone's phones blow up and everyone is booking fight because we're expecting something big. we're here in austria. one of the people whose phone was blowing up, helima croft it's a beautiful city. we're happy to be here the fact they brought us in

person, what does that mean to you? >> this is not a micromove this was assembled hastily on saturday we all had to get here brian, as you know, we're hearing numbers like 2 billion numbers being cut, running through the end of 2023. so this is a significant adjustment while we're in the midst of a crisis in decades. >> we'll get to that in a second let me ask a different question. sit at all possible that these leaks of 1.5 and 2 million barrel as day are being used as a little bit of a lever to try to pressure america and maybe europe to change the sanctions or maybe adjust certain policies we have toward saudi arabia and russia >> i mean, brian, we're down to the wire now the discussion was that this was essentially set yesterday. now, maybe a few things need to be worked out, but everything we're hearing is that this cut

is coming. you know what i mean, a carrot and stick approach. >> right we don't have to wait six months for the next meeting they can just based on market dynamics but, again, all signs indicate that we're getting a multi-million-barrel-a-day cut announced today. >> color me confused because if you think about the fact that russian barrels are likely going to be going off the market if and when the december sanctions kick in, beijing announced yesterday marathon is back on. i only say that because the chinese economy may finally be reopening, and yet we're talking about a cut. you almost think they would add production given those things. >> i mean, brian, the interesting question is the market may not react today, but what happens two months from now? what happens if we have this cut go through and then we have the

six packages of sanctions launched december 5th, russian barrels roll off the market, confusion over price caps, chinese demand coming back i think this sets up for a significant jump year end. >> back toward $100 a barrel. >> i think that's the mark we look at. come december if these eu sanctions do, in fact, launch, if the price cap mechanism works, mash there's a release valve to remove the russian barrels but i think there will be initial confusion come december what the sanctions mean, and you have this opec cut that's going to be into the market so i think we're being set up again for the $100 brent price environment, absolutely. >> to me this is the most sort of bizarre geopolitical event. i'll tell you why. we're in austria alexander novak is not just the energy minister. he's the deputy minister, technically putin's lieutenant he's coming to europe. he's supposed to be here at a time when we have a european energy crisis.

by the way, the men and women who live around us, we've talked to them. their heating bills have doubled, and yet they're coming here this is a very bizarre and unique setup. >> this may be the heist russian ranking foishl show up in year the optionings of having alexander novak who is now under u.s. sanctions last friday here at the secretariat when they announce the production cut, all of the signs about the difficult relationship in europe, you cannot make this up. >> the united states is clearly not happy about the meeting or the projected cuts i read the "financial times" headlines this morning it says saudi arabia is expected to cut in defiance of u.s. is the white house going to react? even though they're at 40-year lows there are still barrels to be released. how do we react to this? this is a political hit in some ways to the united states. >> i think the price impact will dictate what the white house response will be

remember in august when we only had that very small opec production increase and everybody thought we were going to have a market reaction? there wasn't and we didn't hear a lot at the white house it will depend on what white house response will be. >> helima, we'll go down into the -- no stair well, but we'll be in the base mchblt by the way, you have gotten taller. >> i have gotten tall eric brian, yes. >> can we show the box >> now i get to stand on the bochlkts here's the timing the meeting is expecting to start at about 8:00 a.m. new york time, 2:00 p.m. vienna time again, this is opec. anything can happen. remember, mexico held the decision up for over a day a couple of years ago back when we were in person still, it could be a big cut, 1.5, 2 billion barrels a day a lot of potential headlines coming out of here at opec

headquarters in vienna i'll be there for "squawk box." >> brian, you and helima can't give away too many secrets with the magic of television. thank you very much to you and helima. coming up, elon musk sealing the deal on his takeover of twitter. we'll take a look at what may have prompted him to reverse course and the big iesr t nvtose to cash in on this possible closing. we're back after this.

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welcome back to "worldwide exchange." let's check out what's happening right now with regard to the premarket trade. we mentioned the dow's implied lower by roughly 230 points, now 273 at this point. caterpillar, nike, travelers, walt disney, procter & gamble, all laggards if you take a look at the broader base of s&p 500 which many market professionals like to look at as a better gauge of the overall health of the market, the laggards are lumen down 3.11% pg&e, norwegian cruise line, carnival, etsy it's a kind of sample right now with what we're seeing with regard to the real laggards. remember, many of these stocks have seen real volatility around the changing narrative around the economy right now. let's get to your morning's

big money mover. shares of twitter are surging after elon musk's decision to reverse course and decision to buy the company. twitter says musk plans to close that purchase at his original offering price of $54.20 sources tell cnbc that deal could happen as soon as friday that agreement follows months of legal drama as musk tried to back out of his initial agreement with both sides set to go to trial in just a matter of two weeks. and the deal likely proving to be beneficial for some big named investors. "the wall street journal" reporting carl icahn amassed a stake in twitter worth more than $5 million in the past few months other investors like dan loeb, also placed shares in recent months let's bring in a cnbc contributor and author of "power play," tim higgins, i guess the deal here is this deal was a

surprise what do you think drove it >> well, it looks like elon musk blinked in this giant game of chicken, right if you think over the last few months this legal drama was about him trying to get the price to buy twitter down, you know, his leverage would have been dragging this out for months and months more as twitter's trying to deal with a deteriorating business, deteriorating ad market. but the judge in delaware was sendinging is nalls that she wanted this trial to go quickly. she didn't want to allow that to happen that was taking away some of his leverage legal experts were saying elon musk faced a pretty high bar in the courtroom and twitter had the upper hand when it came to the law. so, you know, at the end of the day, it appears elon was, you know, becoming -- reckoning with the reality before him. >> so if that's the case, i mean, even in the early stages when we learned that this was going to be adjudicated in delaware chancery court and that

the potential was there for there to be this kind of at least move to have twitter acquired by musk for that specific performance clause and that deal, if you take a look at this whole picture, the lawyers definitely got a lot more billable hours, but this was maybe a for sene outcome why even go through that in the first place? was it just about the price or was something bigger at play why throat throe out all the laundry, dirty perhaps, about the bots, the spam, the user metric, how they could have been perhaps overstated all of that was a ploy to get the price down is that what we're thinking right now? >> elon musk is one of the greatest gamblers around, rolling the dice that twitter would cave is a pretty big bet they could have saved him potentially billions of dollars rather than the 44 billion that he's now on the hook to pay. the other thing, it would have given him relief to get out of

the deal after perhaps realizing he was paying way too much for something that the valuation had dropped dramatically since he started getting involved in buying up twitter shares. >> so now let's make an assumption, and we'll just say that, you know, we're being hypothetical about it. let's say this deal goes through, he buys the company what's next? what can we expect twitter to look like? is it different at all in any way, shape, or form after elon musk takes this company over >> well, any company that elon runs tends to become much like him and his personality, right when he took over tesla, it changed dramatically he has said in the last few months kind of his visions, it's unclear if he's got a solid vision or more of an idea where he wants to go, but it seems that he wants to have twitter be part of a super app, that long held belief in silicon valley that there could be one app to rule them all, there could be a

communication tool, commerce actual, entertainment tool like we check in china, but it's been something the likes of facebook has failed to do in the u.s. market because of the power of apple over its ecosystem, the power of android over its ecosystem. so that will be the huge challenge ahead for elon, taking over twitter and recasting it as a platform that can be ginormous to cover this huge purchase that he's making. >> i look the "lord of the rings" analysis. tim higgins at "the wall street journal. thank you very much. we appreciate it. on deck for the show, real rally or another bear market bounce futures open after solid gains one of the best starts in the fourth quarter in years. our sense of where the stocks may be heading next. throughout the course of hispanic heritage month, cnbc is

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we've got weekly mortgage applications out at 7:00 a.m. eastern time, september adp employment at 8:15 and the finally reading of september services pmi at :45. september ism non-manufacturing pmi at 10:00 a.m also keeping app eye on the kennedy space center as the dragon spacecraft named endurance is due to launch raphael bostic is scheduled to speak this afternoon at 4:00 p.m. eastern time. you've got a jam-packed agenda for the day. back to the markets, an extension of this two-day rally not looking like it's in the cards right now. futures indicating a down day for the stock market the dow is down by roughly 1%. same for the s&p and nasdaq. joining me is a cnbc contributor often seen on "fast money.

thank you both for being here. maybe, jeff, we'll start with you first. this is market right now that's likely going to take a breather today, but it's been a dazzling start to the fourth quarter. it's a seasonable time of the month for a strong market. should investors be optimistic this q4? >> i think it's hard to be, quite mohonestly you could see a bear market value. i'm trying to look at some things under the surface to give myself some clues. certainly we're seeing what appears to be like momentum monday yesterday, but actually looking at it under the surface, i'm a little concerned we're not seeing what we see on durable market lows. one example, the percentage of stocks in the s&p 500 making two standard deviation advances in any single day, usually off of these big bottoms, we see 50%, 60%, 70% of the names doing that we see 10%, 20% of the names

doing that we're not seeing the thrust off the bottom we usually see. in terms of what the market is telling me, i think that's one good clue. >> you know, it's interesting, jay, that jeff mentions that there was an interesting tweet from ryan dietrich, you know, who watches the market a lot from a market technician standpoint saying the 5.7% start is the best start to a new quarter since the second quarter of 1938. 1938, the best start to a q4 here for the s&p this is something now where investors may be grappling with this idea there's more downside to come. but you can't ignore what happened in the last two days, can you? >> no, although, as you points out, it's a huge move. we would -- not to get too shrug-oriented, we're going to be under pressure. think about the day tachlt it's all labor related. we have a very strong labor market because we're coming out

of a pandemic, so that's likely to pressure rates. but we're quite constructive, not bullish but constructive not because of technicals but fundamentals next wednesday starting earnings season ppis will be reported. could be positive. the fed's ultra-hawkish policy is melting down europe, which they're going to be slow to perceive it's almost like their third mandate is to be behind the curve. but you're seeing financial crises emerge and very weak pmis if europe melts down, that takes pressure off interest rates and inflation and allows the fed to be less hawkish. >> that's the pivot argument maybe, jeff, aisle turn to you for this one jay brings up an interesting point. a lot of folks i spoke to say that the market rally, the pullback in interest rates is now kind of pricing in this

so-called fed pivot that they're going to be more dovish in the months and coming years. that the interest rate may not rise as quickly and the terminal rate may not be where we thought it with us going to be where exactly did that narrative come from given the fact we don't have data supporting a big drop in inflationary pressure or maybe it was the opening yesterday that jobs have fallen by the biggest amount since the earliest of the pandemic. >> there was some dovish surprise from global central bank i think that sort of sparked it. my guess is in talking about the tighter labor market, you're seeing some good signs relative to what the fed is looking for 1.8 million jobs have come off the table. that's what the fed wants to do first. that i want to zroin job openings that's good. they're going to be looking at that sort of tightness, and you need to see some of that come

off before wage growth slows that's really key to inflation you're absolutely right. it's the pivot narrative that's driving it look what was huge yesterday it was ark it was the high beta names, people piling in thinking rates might drop even if you get a little bit of a pause or slower pace of tightening, i think there's too much to contend with here. pmis are still dropping. the fed is still going to keep rates high for a while my guess is this sort of earnings growth slowdown that we've been speculating about, it's here now. it's not all bad nike, meta, carmax, a lot of these companies talking about reduction in earnings expectations, so i think we're going to be moving into a proper earnings market. >> if that's the case, jay, what are some of the top picks you have out there where is it attractive to be invested >> we've been saying all year long to focus on dividend

stocks, particularly ones focused with u.s. operations we think earnings are going to be resilient for u.s. companies but not so much for international companies. so energy stocks, preferred stocks are great because they're senior to common, so you have very stable dividends. pipeline companies, utilities, large cap dividend stocks are the places to be you saw exxon preannounce positive earnings already this quarter. so obviously energy companies are going to have tremendous tailwinds. those kind of old economy non-tech boring companies emerging from the pandemic. >> all right jeff mills and jay hatfield thank you both very much for that we appreciate it let's check on what's happening now with futures because we have taken a leg lower. the dow's implied lower by over 300 points the s&p lower by roughly 39 and

118 points to the downside for the nasdaq we'll keep an eye on whether or not we see some of these losses deepen as we head toward the opening bell that does it for us here on "worldwide exchange. "squawk box" picks up the market donch next we'll see you tomorrow ♪♪ age before beauty? why not both? visibly diminish wrinkled skin in just two days. new crepe corrector lotion only from gold bond. champion your skin. millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. only from gold bond. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them...

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"squawk box" any time on demand. good morning three -- at least three big stories to watch today stock futures signal a pullback after two straight rally sessions that gave us about 1500 dow points -- more than 1500 dow point rebound. opec meeting in vienna we'll take you there live as rumors swirl that production cuts caught be even larger than what we were expecting consensus, 1.5 million barrels a day. and the thing about this, it was a 360-degree round-trip on

twitter, all the way back to where we started for elon musk he now says he intends to complete the deal he originally agreed to back in april. wednesday, october 5th, 2022 "squawk box" begins right now. ♪ good morning welcome to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen andrew is off today. watching out for equity future, look out things have gotten worse you can look now the dow futures are off by 300 points s&p 500 down by 36 nasdaq, 109. we're getting used to this vola volatility