it is 5:00 a.m. at cnbc global headquarters. here's your top five at 5:00 a rally to remember. stocks coming off a wild day with the dow swinging more than 1500 points intraday to finish sharply higher the bank of england set to wrap up its emergency bond-buying program as traders remain on edge on the volatility side of things for the bond market there. investors also gearing up for big bank earnings here stateside with several high profile names reporting results ahead of the opening bell today

and the brain drain continues over at amazon as two high level executives become the latest to leave the tech giant's c suite and mark zuckerberg's big regret the shift he failed to anticipate costing his company control in the social sphere it is friday, october 14th you're watching "worldwide exchange" right here on cnbc good morning i'm dominic chu in for brian sullivan today let's kick off your friday morning with a look at u.s. equity futures they're stable, compared to what we saw yesterday the dow implied lower by 95 points s&p lower by 15. the nasdaq down by about 80. that's less volatile for sure after a wild day on wall street. and one for the record books, by the way, that saw the dow swing more than 1500 points from its

low to its high peak, the biggest such move since march of 2020 you remember that was the virus pandemic and the single best daily gain since november of 2020 as well we got similar moves for the broader s&p 500 and nasdaq both snapping six-day losing streaks yesterday, gaining more than 2%. ahead of the open, every major index is on track to end the week in positive territory now, in the bond market, very much a focal point, the two and five-year yields trading at the highest level since 2007 the long bond, the 30-year, highest yield since 2011, but right now we have seen a pullback from some of those highs that we saw yesterday. the benchmark ten-year now below 4%, 3.92% the last trade there, the two-year note yield, a hair below 4.428%

now, energy prices, they're pulling back today as well we did see a move higher in yesterday's session, but now u.s. benchmark west texas intermediate or wti crude off 62 cents, $88.50, off two-thirds of 1% similar percentage decline for ice brent crude, down 67 cents with cryptocurrencies we saw a dropoff yesterday in bitcoin and ether prices tied to the inflation report, the cpi. today we're seeing a comeback. bitcoin prices above the 19,000 mark, 19,615, up 1.25% 2.5% gain for ether, now, around the world, stocks in asia following wall street's lead, rallying across the region you see there the nikkei in japan up 3% to close the day the hang seng in hong kong up north of 1%. and the shanghai composite up nearly 2% on that day.

pretty green all over the asian markets. now, if we spin that globe around and look at the early trading action in europe, we are seeing, guess what, the same thing there. green across the screen. two-thirds gains there, half percent gains for the german dax and the cac in france is up. those are off session highs. sticking with europe, and new developments in the united kingdom, that country's finance minister cutting his trip to washington, d.c. short amid reports that prime minister liz truss is considering reversing more of her government's controversial proposed mini budget this as the bank of england is set to wrap up its emergency bond-buying program over there let's get to jumana. what is the latest in this situation. their version of our janet yellen has to come back maybe because there will be a possible hypothetical policy pivot. how much do we really know right

now? >> yes, well, the last time we checked flights so closely was pelosi's flight to taiwan. he's expected to land in 45 minutes time and make his way over here to downing street and what a 24 hours it has been. this is a remarkable turn around there are further reports that the uk government is considering more u-turns on this mini budget this is the mini budget they released on september 23rd, sent markets into a global tail spin because of the sheer amount of unfunned unfunded tax cuts, 45 billion pounds worth on the back of that, we saw gilt yields move about 100 basis points higher in the space of 48 hours. bank of england had to intervene for some stability the government already made one form of u-turn by scrapping their intention to reduce the highest income tax rates on the highest earners. but the expectation is that they will have to go further down

that route and possibly modify corporation tax, plus dividend tax as well. then lots of questions about the future actually of the prime minister and the chancellor and whether their positions are tenable given how many u-turns they had to make in the space of a couple of weeks. >> i note over social media there has been a lot of talk about how long it will be, what the over/under so to speak is for them to be on the job in the coming months and possibly years here let's also perhaps if we can talk about the bank of england and this emergency bond buying program. are there any expectations that it may actually extend because today's the deadline that is supposed to end today or maybe even revive it down the road if need be. it seems like that would be something they have to consider given they accept the president now with their emergency bond-buying program. >> i think what saves the bank of england here is the move in gilt yields you had over the last 24 hours.

rallied about 30, 40 basis points if we were still in an environment where investors were happy to sell uk assets and i think that would be problematic for the bank of england from a financial stability perspective, but because things seem to be rallying back and there is expectation the government is going to go ahead with this u-turn, there is more sort of -- less concern, i should say, from the bank of england about how this is all going to play out. so now they can go back to focusing on their inflation mandate, their monetary policy mandates they have that meeting on november 3rd the market is expecting a 75 basis point hike then and they can go back to doing what they wanted to do all along, which is to bring back inflation to 2 percentage points rather than intervene in the gilt market to save it from the dysfunctionality and extreme illiquidity we saw over the last couple of weeks. >> joumana live in london outside ten downing street, thank you very much, we appreciate it. as investors continue to watch the situation in the uk, they also turn their attention

to earnings season here on -- in america. it is set to shift into high gear today with several financial firms reporting their quarterly results. the potentials setting the tone for the broader earnings landscape as a number of questions squirrels swirl on hot may impact the microcompany specific results for more, let's bring in dan varu of palisade capital management dan, you heard joumana's report, there are a lot of things in flux now from a macro economic big picture global standpoint. we saw a massive amount of volatility yesterday what do all of those things in combination tell you about whether or not this is close to a market bottom or not >> well, dom, thank you for having me. unfortunately i don't think we're at a market bottom yet i think things are still not stable yesterday's move was really just

some calm and i'm trying to recall a time when i have tracked the dollar versus global currencies so much because the strength in the dollar really has expressed stresses elsewhere. and certainly what has happened in the uk is the latest example of that. and i think there are sort of mini crises in the making potentially. you can't rule it out as a potential that could have global ramifications for risk assets like stocks. and, you know, this is -- this is the -- you know this is the issue that is very difficult to quantify at this point >> you mentioned the dollar. it is a perfect way to get into a conversation about what's going to happen with corporate earnings season. the banks maybe not as much, we don't focus on them specifically because of the dollar strength there are a number of consumer products companies, large

technology firms, that derive a lot of the revenue outside the u.s. and that strong dollar is going to weigh on corporate revenues and profits as they try to revert them back overseas to here in the u.s. what exactly is that strong dollar story going to tell us about what we should expect from corporate earnings season. >> it is going to be some head winds there. i think it is probably why the russell 2000 seems to be outperforming more recently. it seems to be basing a little bit ahead of what the s&p is doing right now because there is less dollar exposure by the more domestically focused u.s. companies. it is really important to focus on profitability, regardless of where you're looking, whether it is large or small. which i equate profitability to duration because we continue to raise interest rates, the federal reserve is not -- is very unlikely that they are done yet. conditions are tight and are

likely going to get tighter on a going forward basis until there is evidence that the inflation, you know, the inflation has peaked and is beginning to come down i just don't think we're there yet. and i contrast this period to say other crises we had in the past where it has been much more d-shaped i think this is more of a bottoming process than a point in time. so, investors have to be patient because i think there is going to be fantastic buying opportunities. >> all right dan, thank you very much for the market thoughts. we appreciate it a crazy time for sure in the markets overall. bertha coombs is here. good morning, bertha >> good morning, dom beyond meat reportedly further reducing its head count as the alternative meat company faces continued challenges according to bloomberg, it is unclear how many people were let go with these latest job cuts. reports add some cuts came in

the research and development department the move comes after about 40 positions were eliminated in august as a part of a broader cost-cutting plan. the brain drain at amazon showing no signs of slowing down the company confirming to cnbc greg zaird, president of hardware research and development, is retiring he is credited with inventing the kindle e-reader. also on his way out, senior vice president of amazon alexa tom taylor is retiring taylor is a more than ten-year veteran of the company and also a member of ceo andy jassy's elite s-team. and treasury secretary yellen says russia's war against ukraine has weakened that country's economy and slowed its growth prospects for the for seeable future speaking at the imf and world bank's annual meeting in washington, yellen said that lost investment including hundreds of private sector companies that have left russia are likely to -- and are unlikely to return is likely to

be felt for years to come. meanwhile, reuters reporting that alcoa has asked the biden administration to halt u.s. imports of aluminum from russia. the report request comes as the white house was apparently mulling that very move dom? >> all right, bertha -- >> i was also tempted to say aluminum. >> from our friends over at the atlantic aluminum, a very formal word bertha coombs, thank you very much. when we come back, more on the dramatic rebound carrie firestone lays out the stocks she thinks look attractive amid the wild swings in the market. xi jinping set to lay out the vision for that country's economy, the shifts they may make to counter head winds over there coming up next the panel voting to subpoena former president donald trump over the capitol hill riot and insurrection a very busy hour sll aadtihe when "worldwide exchange" returns after this commercial break.

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welcome back to "worldwide exchange." china's consumer prices rose at the fastest pace in nearly two and a half years in the month of september. its consumer price index rising 2.8% from a year ago that's up from 2.5% in august. but it is also in like with forecasts. the increase was driven largely by food costs, pork prices, by the way, over there soaring 36%. this is the world's second largest economy. it struggled to regain ground

amid weaker exports, a slump in the property markets there, and lockdowns under the government's zero covid policy. as of this week, nomura says about 14% of china's population are under still some type of covid restriction. this all comes ahead of the start of the national party congress on sunday where president xi jinping is poised to cement a third unprecedented five-year term, really making him and cementing his status as china's most powerful leader since mao zedong let's bring in the managing director and chief operating officer of the china beige book, somebody who looks at the economic data very closely shizad, frame this for us, please rising prices, the highest in two and a half years, a slowing economy because they locked themselves down actively, it sure sounds like a stagflation type narrative is that kind of what china is

moving towards right now >> good morning, dom you know, on the eve of the party congress, the chinese economy is at one of its weakest points in recent memory. if you to look at china beige book data across the board, compared to a year ago levels, you're seeing pretty major drops and almost every sector is struggling the property market is in deep trouble. it is in a deep hole manufacturing is -- has certainly slowed down, you know, quite considerably over the last several months and i think as m foreign demand continues to slow down, the manufacturing sector is going to struggle even more now, this rise in domestic prices, that may actually be, you know, a positive sign because one of the biggest issues you're looking at in china right now is a risk of deflation. now, will this last? i'm not sure because consumer sentiment in

china is still pretty weak household is under a lot of pressure so we'll continue watching the local prices data pretty closely, but i'm not expecting a major consumer rebound and therefore a continuation of consumer prices, rising month after month in the next 46 months. >> shehzad, it is interesting, one of the things many experts have spoken a lot about over the last several years and even decades at this point is the ability for china to export deflation. they have been able to cut costs and prices on a number of things you can argue about quality. whatever you want. but still, the stuff that comes out of there tends to be on the cheaper, if you will, side of things is this a scenario developing possibly where inflation in other places like the u.s. or europe could be helped by china, maybe having a deflationary environment? >> that's absolutely it. now, the fed, for example, is watching this very, very closely. you know if chinese producer

prices continue to fall as they have, and the manufacturing sector continues to see price weakness as it has been seeing, that could actually be a pretty positive signal for major central banks, especially the fed, because it could signal that, look, we may be seeing some amount of inflation softening here at home in the near term. >> now, also, we cannot leave you without talking a little bit about the national party congress this is their big event politically. there is going to be some movement, not just xi jinping cementing himself as the almost, like, emperor if you will of china in the modern era, but also because there is going to be a reshuffling of the politburo over there what is the communist party looking to do at this particular massive event to really set itself up in the next five to seven years, or could we see a lot of changes during that time because the economy is in such a state of flux? >> i think a few major things that we should be on the lookout

for. first is annunciation of the growth model moving forward. president xi and others are reinforcing the idea that moving forward we have succumbed, if you will, to a slower growth pace and we're much more committed to making this a -- the economy a lot more sustainable, and, you know, focusing a lot more on private industries, focusing a lot more on the consumer side of the economy. number one and, of course, even more important is how is zero covid discussed, because zero covid, dom, is not leaving us after the party congress as much as party traders believe it is. it is not going away well into 2023 and i think looking out on how covid zero is discussed is going to be critical for markets. >> absolutely going to be. communication is everything because there is already growing signs of frustration among the citizens in china about this zero covid policy. shehzad qazi, thank you very much, have a nice weekend, sir.

still on deck, earnings season set to shift into high gear as several of the big banks ready results -- report tier results this morning we'll dig into whether the numbers may ease some of the uncertainties around the health of the broader economy overall "worldwide exchange" is back in a moment - [narrator] if your business kept on employees through the pandemic, getrefunds.com can qualify you for a payroll tax refund of up to $26,000 per employee, even if you got ppp. and all it takes is eight minutes to find out. then we'll work with you to fill out your forms and submit the application. that easy. getrefunds.com has helped businesses like yours claim over $1 billion in payroll tax refunds. but it's only available for a limited time. go to getrefunds.com powered by innovation refunds.

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public hearing before the midterm elections. we have nbc's brie jackson joining us now from washington with more on that vote and the story around it. good morning, brie >> reporter: good morning, dom the january 6th committee argues that former president trump was a central figure in the u.s. capitol attack they say that mr. trump must be held accountable and is required to answer for his actions. >> resolution is agreed to >> reporter: an historic move by the january 6th committee, voting to subpoena former president trump. >> and so if we get his attention, fine. if not, we'll go with the evidence that we have collected. >> reporter: mr. trump unlikely to appear asked why didn't the unselect committee ask me to testify months ago blasting them as political hacks and thugs, and promising a response later this morning. the panel stressing its case at the former president willfully incited the insurrection he was personally and substantially involved in all of it >> reporter: arguing trump

orchestrated a plan to stay in power by spreading false claims about election fraud and was backed by his inner circle. >> the key thing to do is to claim victory. >> reporter: claiming victory publicly -- >> frankly, we did win this election >> reporter: -- while privating acknowledging defeat. >> if you look at the tv and he said can you believe i lost to this effing guy? >> reporter: the panel also revealing emails and other evidence showing the secret service had ample warning of threats of violence from far right extremist groups >> the source went on to say, their plan is to literally kill people please, please take this tip seriously and investigate further. >> reporter: shocking video shows lawmakers scrambling to an undisclosed secure location, pleading for help. >> they're breaking the law in many different ways. and quite frankly much of it at the instigation of the president of the united states >> reporter: the committee summing up its argument that

former president trump played a key role in the riots, did little to stop it, and warned threats to democracy remain. and the january 6th committee plans to release a final report of its findings by the end of this year. committee members say they will make legislative recommendations and are considering criminal referrals to the justice department dom? >> all right, nbc's brie jackson, thank you very much for that still on deck for the show, united airlines reportedly ready to make a big buy of new planes. the stocks that could stand to benefit from what is expected to be a very large airplane order and if you haven't already done so, please follow our podcast. if you missed "worldwide exchange," check us out on apple or spotify or your podcast app of choice. "worldwide exchange," in audio format we'll be right back. icy hot pro. ♪ ice works fast... to freeze your pain and your doubt. ♪ heat makes it last. so you'll never sit this one out. icy hot pro with 2 max-strength pain relievers.

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thursday's wild turn around. looking short lived as futures point to pressure at the opening bell bank earnings and fresh fodder several key reports due out later on this morning. and a rare omission -- admission of regret for mark zuckerberg. the trend he says he wishes meta was more on top of to keep its edge in the social media industry it's friday, october 14th, 2022. you're watching "worldwide exchange" on cnbc.

welcome back to the show i'm dominic chu in for brian sullivan so let's get right to how the markets are looking halfway through the 5:00 a.m. eastern time hour on this friday a roller coaster ride yesterday. futures now indicating some modest losses at the opening bell the dow implied lower by 92 points, the s&p down by 15, the nasdaq down by just around 75. relatively stable compared to yesterday when the dow swung more than 1500, 1500 points from its low point to its high point. that's its biggest such move since march of 2020 during the virus pandemic and the single biggest daily gain since november of 2020. similar moves for the broader s&p 500 and for the nasdaq they both snapped hsix-day losig streaks. ahead of the open, every major index is on track to end the week in positive territory in the bond market, you got two

and five-year note yields trading at the highest level since 2007 the benchmark ten-year note yield is back up to 2008 highs and the long bond hit its highest yield since 2011, but right now we have seen a pullback from those multiyear highs in terms of yield. the benchmark ten-year note yield, 3.92% two-year, a hair above 4.4%. and 30-year, 3.9%, a little bit below that if you look at the overall picture for everything else in the markets, there is a lot of stuff happening on the macro side of things we're going to go to a developing situation around the bank of england. the central bank is still on track to wrap up its emergency bond-buying program today. the boe initially announcing that two-week intervention in the long dated bond market late last month amid that, new developments on the fiscal front this morning. the uk's finance minister cutting his trip to washington, d.c. short amid reports prime

minister liz truss is considering reversing, pivot if you will, of her government's controversial mini budget and a package of unfunded tax cuts taking a look at european markets amid all of this, we're seeing this general positivity again, for european markets, ftse 100 up .6%. bigger gains in the ibex and spain up north of 1% right now ten-year gilt yield, their government bonds over the last few weeks, we now are seeing a move lower in gilt yields as well just a hair above 4% on that big figure number for the ten-year benchmark london gilt over the last month you see here a general move higher in rates that is now tailed off in just about the last couple of days or so here. taking a look also at the british pound sterling, cable, whatever you want to call it, british pounds now getting at least, at least here some kind of a move to the downside after

a pop yesterday. it will now cost you 1.1241 to buy a british pound. so a little bit of movement down to the downside after a sharp move higher. let's get some checks now on the morning's top stories and bertha coombs is back with those. hi, bertha hey, dom so twitter says it's trying to obtain documents from elon musk related to a federal investigation into his $44 billion bid for the company. twitter's legal team says it has been trying since july to get the documents it says, quote, bear upon key issues in this litigation, adding that musk's legal team has continuously failed to comply, citing investigative privilege. the federal investigation relates to an elon musk tweet from may indicating a deal with twitter, quote, cannot move forward until the company provides more detail on spam and platform fraud activity. meantime, meta platform ceo

mark zuckerberg admitting he failed to anticipate and acknowledge a giant trend shift that led to the success of rival tiktok with ben thompson, he says he quote, sort of missed how people interact with discovered content, via social feeds. and that people simply want the best content regardless of who made it. adding, quote, tiktok didn't fit my pattern of a social thing it felt more like a shorter version of youtube to me he said it is important for met why to develop new ai, so that it can recommend a range of content including text and photos and not just short videos meantime, united airlines is reportedly closing in on an order for more than 100 wide body jets acording to bloomberg. studying offers from boeing and airbus the deal would be one of the largest ever for long range aircraft and comes just months

after united closed a deal to buy some 207 narrow body jets. according to the report, the ceo scott kirby told some pilots he's planning, quote, a triple digit order that could be announced as soon as december. no official comments from airbus, boeing or united on that report that would be a pretty big order, dom. >> very big one for sure bertha coombs, thank you very much for that. a busy day on wall street with several big banks releasing their third quarter results. you got jpmorgan, you got citigroup, morgan stanley, wells fargo all reporting before the opening bell investors are bracing themselves for less than positive results amid mounting economic macro worries. with jpmorgan's ceo jamie dimon telling cnbc just this past week that a u.s. recession is likely to come within the next six to nine months. all four banks, by the way, that are reporting this morning are down between 11 and 30%, just so far this year to date.

for more on what to expect now, let's bring in steven bigger, the director of financial institutions research at argas research thank you very much for joining us this morning. this is a very big kickoff to big bank season. i remember the days when it was maybe just jpmorgan and/or wells fargo that would kick things off but now we have four of them what are you looking for this morning? >> yeah, good morning, dominic it is going to be a big day for bank earnings, just the way the calendar works we have a lot of big banks coming out today the headline results i think are going to be pretty scary, down, you know, as little as 10% for a name like bank of america, down close to 50% on headline earnings for goldman sachs so the important thing to remember here is that the -- the fundamentals for banks, the lending businesses are doing quite well, we're expecting the mid to high single -- mid to high teens the enormous swing factor here is going to be loss revisions,

which the big four banks with large lending businesses are probably going to reserve about 4.1 trillion this quarter versus 3.6 trillion reversal last year. so that's an enormous head wind for bank earnings. and then the capital market sensitive areas, investment banking down 50 to 70% you know, m&a activity, that was very soft, trading probably held up well. a lot of cross currents this quarter. >> speaking of cross currents, the conventional wisdom and narrative, the stories we tell around rising interest rates and banks, that these rising interest rates are good for them, it helps their net interest margins, net interest income, they can lend on longer term bases and higher rates and kind of keep the shorter end there and turn things around that's not the case anymore. the interest rate dynamic is so different right now, and you got a possible recession coming in the next six to nine months if you listen to jamie dimon, all of that could zap loan demand as

people get more near towards the idea of higher rates how exactly do banks then navigate that kind of environment and what kind of commentary are they going to put forth today? >> so, yeah, three items i think to consider there. you hit on a couple of them. the yield curve environment is not as favorable as it could be. we do have higher short-term rates across the board that's helpful for, you know, the primary, for example banks will benefit from that but the yield curve being inverted as it is is not exactly where you want it. number two, yes, the higher yields do what they're supposed to, which is pull away from long growth so that is a concern moving into 2023 that's where some of the commentary, because long growth has been so strong, we hit weekly data from federal reserve up 10% year over year and the aggregate, so that will be interesting in terms of commentary and then loss provisioning

so higher rates generally universal, tailwind for banks, however, you know, if the economy does weaken, that means more employment, and that means higher chargeoff so probably no better correlation in banking than unemployment and chargeoffs if customers have -- lose a job or -- and can't find another one, they're going to default, and that means more chargeups for banks. three dynamics going in there with interest rates. >> we have got just a few moments left here. i wonder with that backdrop you're assuming being set, where is the best place to be in banks right now? is it the money centers, investment banks, regionals? >> i think the regionals certainly have it much better. they'll benefit more directly from that lending business boost, from loan growth and that expansion. they don't have the dead weight of capital markets right now for the most part. and chargeoffs still in pretty good shape as i mentioned.

i think the regionals are the place to be. we have another probably couple of quarters of softness and capital markets as best we can see until that ipo activity turns around until more liquidity comes into this market, so i think the regionals are the place to be. names like pnc financial and truist, u.s. bancorp, solid franchises here, good underwriting, good loan growth, and high single digit, low double digit pes, 4% yields, that's a pretty good valuation story. >> steven bigger, the call there, pnc financial, also u.s. bancorp and truist thank you very much. coming up on the show, gauging the state of small business in america, speaking of that bank trading loan growth, the key challenges facing these economic drivers and what they say is the biggest hurdle in keeping the lights on. and one of the biggest engines for economic dprogrowth in this country. first, some of your top trending stories, new reports elon musk's

benevolence has an expiration date musk's spacex sent a letter to the pentagon saying it could no longer fund its free starling internet service in ukraine. the company asking the department of defense to pick up the tab, which spacex claims will cost more than $120 million for the rest of the year and closer to $400 million over the next 12 months and talk about high priced denim. a vintage pair, if you want to call it that, levi's jeans, back to the 1880s, after the gold rush going for more than $87,000 at auction, they were found in an old mine shaft in northern new mexico according to their option listing, the jeans are one of the oldest known levis from that gold rush era. despite inflation hitting its highest level in more than four years, arizona iced tea says it is going to keep the big can at 99 cents for as long as

they possibly can. the brand has sold its iconic 23 ounce cans for nearly 30 years and says it focuses on increasing sales volumes to avoid passing price hikes on to consumers. arizona iced tea tryg sintotay at 99 cents per can. we'll be right back. ♪♪ ♪♪ ♪♪

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supply chain, right, and also consumer demand. the report coming amid growing chatter about an economic downturn in the months ahead let's talk more about this with john stanford, co-executive director of small business roundtable, one of the organizations behind that report so, john, maybe no surprise that with talk of an economic downturn comes a little bit more pessimism from the small business side of things. can you take us through what your findings are about how pessimistic small business owners are becoming? >> yeah. absolutely i'll start with a positive note in that this is our first of -- we have been doing ten of these studies. this is the first one where covid is really showing up in the rear view. but what that has meant is it made room for the economic concerns small business owners have begun to say i'm less worried about the covid impact on my business, they're staring at the same economic turmoil that we have been talking about all show. inflationary pressures, supply

chain, they're concerned, though they also see opportunity in the months and years ahead those who stayed in business, and made it through covid, they're seeing increased year over year sales, so we continue to face the same dichotomy that you talk about we know something is looming, it is beginning to get concerning, workforce remains a challenge. and yet the crisis hasn't hit yet. so a lot of small business owners very cautious but still a little optimistic. >> so how exactly are they responding, john have you seen anything, have they said anything about that state of mind that you just mentioned and then what they're going to do about it are they going to hire less people are they going to keep less stuff in inventory are they going to scale down their businesses or physical footprint, aka make things smaller? what is going to happen? >> i think everybody is looking at those cost-cutting factors you just laid out. the number one thing i'll call out is we don't see plans to cut

the labor force. so it seems that small business owners who are employers remain committed to keeping those folks on we think that could have to do with how hard it was to bring them back in after covid so you see small business owners feeling like their people are what they have to keep we see them thinking about cutting elsewhere. we also see them continuing to embrace digital as a way to cut costs, and also a way to reach customers with less foot traffic, less brick and mortar costs. so i think we do expect to see them double down on using digital to earn those savings, but we think they're going to keep the people because they knew how hard it was to bring them back in >> all right, and you mentioned that's a lesson learned, we just got a few moments left, john what do you think the other big lessons learned are for these small business owners in the next several months? >> building capital relationships without a doubt. we'll be watching those earnings as well. but i think small business owners now know how critical a capital partner is and those who

want to make it in whatever troublesome tiresmes are ahead going to be leaning on relationships with lenders a lot of them have figured out i have to have a relationship in the capital community for when times are tough. >> john stanford of small business roundtable, thank you very much. have a nice weekend, sir. as we head out to break, throughout hispanic heritage month, cnbc is celebrating teammates, our colleagues, contributors also, and business leaders as well. here's fenway summer ventures partner javier sock. >> i was born and raised in puerto rico. then i went to college in the midwest. it opened my eyes to a world of possibility to pursue the american dream, yet hurdles exist for many why is america such an amazing place? hundreds of cultures and the most dynamic economy in the world and oh, by the way, hispanic success is american success. soon to be 100 million people, trillions in gdp, digital and

entrepreneurial and productive our heritage is part of the american story i'm proud to be puerto rican i love to be an american this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones

welcome back to "worldwide exchange." getting ready for your big, big, big trading day ahead. you got 8:30 a.m. eastern time, september retail sales consumer sentiment at 10:30 and on the earnings front, all reporting before the opening bell today and on the heels of yesterday's hotter than expected inflation report, we're going to hear from kansas city fed president esther george and fed governors lisa cook and christopher waller. so no shortage of potential catalysts for the market let's get more on the trading day ahead with cari firestone, a member of forbes 50 over 50 list for the year 2022. you got a number of accolades

and you're a stock picker which is why we love having you on i want to start off with a bigger picture question for you first. what do you make of what happened yesterday >> oh, wow, that was crazy and by the way, dom, thank you very much. but you have to think if the market was up 2.6%, with a hot inflation number, what would it have done if the number was cool up 6%, that was really crazy so you have to begin to wonder if there are investors out there willing to take some risk, because up until that point we saw the skidd skittishness and n and impulsive selling immediately on bad news because the people that had bought the market didn't want anything to do with risk associated with higher inflation and higher interest rates but for some reason, that evaporated and there was a flood of buyers coming into the market who understood that there is inflation, that eventually the

fed is going to control this inflation, and we have a market that was down at that point 28% year to date a lot of that bad news was in stock prices and not only 20%, that's the s&p. but if you think about energy being up this year, and consumer staples being flat, pretty good stocks, really good stocks this year, there are many sectors that are down 30%, stocks down 40, 50 or 60%. and so i think it made sense that you saw -- i was pleased we saw some investors and buyers make commitments because they were attractively priced equities and that they believe that the numbers, backward looking, will start to improve. >> karen, do you think they were fundamental buyers making a commitment or was it short covering >> that's a good question. you know, there has been discussion about short covering. that was an awful lot of short covering yes, of course, there was some short covering to go from on the dow down 500

to up 700 or -- whatever, a thousand, i mean, that was huge. that wasn't just short covering. that was massive moves that included short covering, but there were some big institutions that started buying. of course, black boxes were buying but they had to be doing it on the fact that valuations are low to some extent, and they were single, suggesting this is an oversold market. >> now, real money managers and you're one of them, you invest people's money so as people put more money with you, you invest it, so maybe a lot of mutual funds started getting orders throughout the course of the day they started to put to work in the market i wonder in the time we have left, i want know what goes on your shopping list, tech, energy, where are you finding value in this kind of a market >> you know, it is interesting, dom. last week we were buying some shares of stocks that had really

been a line, we bought that stock, we bought first republic, a name we owned for many years but not for the last year or so because we thought they were at prices we couldn't resist there were some stocks we have been buying and we would like to buy more of that, again, have been clobbered, whether paypal, meta, adobe, first republican line, but we have a mix of names that have been relatively good performers defensive characteristics, incl including o'reilly auto and health equity. on the buy side, i think what is more attractive today if you can handle it, because, you know, we don't know where the bottom is, but we have to be close on some names, to put the money in some tech names, some of the really beaten up consumer discretionary stocks, and in communications, where, you know, they have been just destroyed because of the

fears of recession, lower advertising and meta and google are examples we think they have upside potential. but you have to be able to handle that, you know, mentally. and deal with that and be calm that's what i suggest. >> be calm stay calm and carry on karen firestone, thank you very much have a nice weekend. futures pointing to some modest losses at the opening bell after a big move higher yesterday. that does it for us here on "worldwide exchange. "squk x"s nawbo iupext. we'll see you on monday. have a great weekend h the pandemic, getrefunds.com can qualify you for a payroll tax refund of up to $26,000 per employee, even if you got ppp. and all it takes is eight minutes to find out. then we'll work with you to fill out your forms and submit the application. that easy. getrefunds.com has helped businesses like yours claim over $1 billion in payroll tax refunds. but it's only available for a limited time. go to getrefunds.com powered by innovation refunds.

good morning i just saw futures up. so on the dow, pointing to a pullback, i won't read that. after yesterday's wild ride on wall street, we're going to talk

inflation and the latest development from the uk. straight ahead and we got a big blitz in bank earnings four of the world's largest banks reporting in the next two hours. better be good, because they kind of led that rebound yesterday with energy. along with energy. but we're going to give you those numbers and the instant reaction i think the computers are working. we should be ready with estimates. >> you think i hope i hope >> it is bad when we can't plus, a salvo in the streaming wars netflix pricing its ad-supported tier one a dollar below disney plus you can watch -- why you would watch that, i don't know friday, october 14th, 2022 and "squawk box" begins right now.