it is 5:00 a.m. at cnbc global headquarters. here is your top "five@5." wall street trying to keep the rally alive as stocks notch the second day of gains. pointing to a positive open. earnings front and scenter a investors await results from coca-cola and more in the uk, the stage is set for rishi sunak to become the country's next prime minister as we await final comments from

outgoing p.m. liz truss. hong kong stocks claw back after the worst session in 14 years. later on, talk about a flare up why shares of weber grills are surging ahead of opening bell you are watching "worldwide exchange" here on cnbc good morning i'm dominic chu in for brian sullivan equities are big right now you see the dow jones industrial average, now they shifted. lower by 76. s&p lower 8. nasdaq down 10 some marginal losses after a mostly higher session for stocks yesterday. saw the major averages notch b back-to-back gains checking the bond market

a slight tick lower in yields. the 10-year treasury yield about 4.17%. the 2-year treasury yield is 4.48%. in energy, oil prices again as you see movement there as well we're talking lower prices for wti crude down 72 cents. $83.85 a 1% decline ice brent crude down 79 cents. $92.47 down 1% as well. in cryptocurrency, bitcoin and ethereum on the move trying to hover around $19,000 for bitcoin. down .30%. .10% losses for ethereum around the world, mostly red arrows overnight in asia the region failing to rebound after the steepest selloff in 14 years on monday. right now, you see things closed

off marginally lower on the shanghai composite hang seng and hong kong down .10%. nikkei in japan up 1%. let's spin the globe to europe mixed session as trading is in the early stages dak down .10%. ftse 100 is down .10%. .25% in cac in france. let's get to the top stories with silvana henao good morning, silvana. >> dom, shares of weber surging ahead of the open after bdt c capital reported 88% of shares it doesn't already own the offer represents a premium to the monday closing price. weber had been mentioned as a

meme stock after the high short interest adidas plans to end the partnership with kanye west following a slew of offensive behavior from the rapper and designer according to bloomberg, the company may announce the move as early as today if confirmed, adidas will join the gap in cutting ties with west the rapper who now goes by ye has made numerous statements including anti-semitic social media posts and moved to cut ties with corporate partners the adidas ye line accounts for 8% of the company's total sales. the s.e.c. is charging cronos group and former executive with accounting fraud. accusing them of improperly booking sales and overstating revenue by the millions.

they settled the matter without admitting the matter silvana henao, thank you very much for the headlines. breaking news. we are awaiting comments from outgoing prime minister liz truss before she leaves 10 downing street for her meeting with king charles ii i t this is a live shot outside 10 downing street arabile gumede is joining us now on the scene in london arabile, what can you tell us about the change of power? >> reporter: out goes 56 and in comes 57 that is happening today. the day's real sense of what we will be looking toward of course, a little earlier on, the prime minister liz truss was holding her last cabinet meeting with the members of parliament a host of them coming into 10 downing street we saw a number of them as well

leave. now the elelecturn has been put and she is about to deliver her final address after that, she will officially resign her post with a meeting with the king. after that, rishi sunak will then have an audience with the king to formally seek that appointment as the new prime minister and then be asked to set up a government in order to be able to become prime minister of the united kingdom. following that, one of the big question marks will be around what it is that follows on from liz truss departure. whether rishi sunak will take on any of the measures she had put forward or if he will reverse everything we saw the mini budget which roiled markets and he would not want to go in the same position and instead, as chancellor, he certainly knows what it would be

like >> arabile, speaking of chancellor of the exchequer, their treasury is important for rishi sunak. right now, it is jeremy hunt he is the person in the role right now. it is not unfathomable that rishi sunak would want his own or some prime minister's own choice for the chancellor of the exchequer. >> reporter: it does seem that the rumors are he would keep jeremy hunt as the treasury secretary and chancellor of the exchequer. the fiscal plan is set to be released on october 31st that doesn't give rishi sunak much time to deliver that plan unless he pulls that out

if he does that, he u-turns and creates perhaps the instability that he probably does not want considering whether the uk has been we will have to wait to get a sense and see where things go. he does have from today, day one, right up until october 31st, early next week, to determine the budget and economy of the uk. >> i'm note sure what sign it is when you see the cat rolling up on 10 downing street we are watching that and listeners as what you saw is a cat crawling up on the steps of 10 downing street. arabile gumede, thank you very much liz truss out ggoing and rishi sunak incoming. a busy week for earnings apple and amazon and meta platforms and microsoft and amazon among a slew set to report this week as well as

consumer companies like coca-cola and mcdonald's and caterpillar. this is ahead of the key central bank decisions on deck with markets looking for potential signals of the fed pivot, so to speak, ar and the meetings. joining me now is cate faddis. cate, a lot of stuff to sift through. we had people on the program and on cnbc for the last several weeks and months now that are basically saying what is happening with the fed is a backseat to interest rates do we care about earnings season >> we care about earnings season earnings season is going to be very important because look at what is happening with the market the s&p is trading under 16 times forward earnings that works that's pretty relatively

inexpensive compared to the 10-year average. if earnings come in and are weak and analysts have could reduce estimates, this thewill create problem. yes, we are watching what the fed is doing, but we are still watching what is going on with earnings >> okay. with that being said, i reeled off a number of the big technology companies that are going to report results. is there one in particular that you think is going to hold a lot more weight or more sway over sentiment given what is happening with the falloff of the tech names the last several months >> no, actually they will all be important. i think given what is going on, i'll be looking at other things. you saw the banks reported the banks said they are expecting weakness that's what everyone is saying they are not seeing weakness right now. p&g reported

they are still seeing supply chain problems they are seeing a lot of supply side inflation i'm going to be more looking at the companies with inventory are they still inventory? what is happening to the supply chain? i'm focused there. now, looking at the tech companies, these are global in nature i'm looking at the currency is and effecting them what is thatting doing to the snerngs. >> if that is the case, if the strong is a huge deal for not just the tech companies, but the other big industrial or even international operations as well -- if you look at the way things are shaping up, the earnings story is generally positive is it positive enough to make people feel there is a bottom in if so, what are you buying >> the earnings picture has been

positive maybe, maybe who knows we are all expecting bad news. maybe that is priced from. maybe it is not bad. you are talking a fed pivot. here is a beaten down ideas my favorite is best buy. largest technology product retailer everyone knows what best buy does and has shopped there $14 billion market cap entertainment, computer, appliances they learn to be good because they compete against the best retailers. costco, alibaba, home depot, lowe's the stock is cheap the company grew tremendously during covid as everyone was restocking their home office refe revenue will be down 10% or 12%. docusign was a covid stock no one was signing in person

the stock hit a high of over $300 now down 80%. >> docusign and best buy are the calls from cate faddis thank you. when whene come back, chinee stocks trying to rebound why the selloff was likely overdone. we are close to davos in the desert as the initiative event kicks off. we have a busy hour still ahead when "worldwide exchange" returns from this commercial break. here, is cvs health. here, we'll never be told our concerns are all in our head. here, we don't think we should pay more than men for the same thing. or pay taxes for period products. here, we can ask tough questions, day... ...or night.

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welcome back to "worldwide exchange." a news alert at this hour. there are reports, again, reports that whatsapp is come back online for some users after a global outage early this morning. problems detected a couple hours ago. wh whatsapp has 2 billion users worldwide. it is owned by meta. we are watching meta down in the pre-market so far. it remains to know if that is part of the market narrative hong kong and chinese stocks fell the hang seng saw the biggest drop since november of 2008. it was worse for the biggest technology stocks and hang seng index and hong kong rebounded

slightly in overnight trade after the second largest drop one day on record. all of this -- okay. breaking news. outgoing prime minister liz truss is making a statement before seeking an audience with the king he wil we will monitor her comments liz truss making comments outside 10 downing street right now. let's keep an eye on what is happening here we're going to come back to this later on we will monitor the truss comments. let's get to brendan ahern who is the chief investment officer at crane shares. we -- i wonder, brendan, as we turn back to hong kong and the selloff there -- you manage a lot of investments in the asian

region in china and hong kong. what was your reaction yesterday? do you feel things got overdone or is there more down side left to come? >> dom, i was shocked at the markets reaction to the ending of the party congress. i thought the market did anticipate that xi would elevate key allies some to play a key role in the chinese government were associated with the zero covid policy i'm shocked at the market response rumors, dom, that a potential level player was liquidated with the market drawdown. it was a pure selling panic. a lack of buyers as well just a strange day hope to get a snap back. >> can you blame them? can you blame the lack of buyers for being apprehensive given

president xi there are people who call him emperor xi or chairman xi. this is an administration which has cracked down on many important companies in china what is to say they will not continue in the coming years >> i think xi's speech last sunday where he mentioned modernization almost 90 times. the most frequently said word was modernization. a clear emphasis on the economy. if you want common prosperity, you need a level of prosperity i think we were a little bit shocked that president xi is certainly in full control of the chinese government i would agree, dom, many potential buyers have been sidelined due to issues like the holding foreign companies accountable act and the covid policy in china and a strong

dollar fed hiking with the risk-off market not only in u.s. equities but global equities and assets in general. >> from the sentiment standpoint, this is perhaps the latest leg and latest chapter in the long down trend for chinese equities there are growth concerns, there are concerns about zero covid policies and what it does to the economy, the second largest economy in the world what is it that brings investors back into some of the names given what is happening with the economy and given what is happening with the xi administration and given what is happening with poor sentiment overall? >> 100%, dom investors have been sidelined because of the fear. the issues we spoke about. for the chinese government, it is time to get back to work. the party congress is done political leaders have been established with the roles now it is time to address the

economy. they have to address what is happening with housing as well as the easing of zero covid policy to get consumer confidence we should see the signs in the coming months. alibaba singles day event on monday with the pre-sales. we are seeing early indications that those numbers look strong in the early going we need the catalyst and a resolution to holding foreign companies accountable. we need u.s. and china diplomacy to return. we need the two sides to sit down and talk to one another it is the multinationals that do a lot of business in china which are at risk. tesla was down yesterday a number of the u.s. multinationals with business in china were off yesterday it is not just about chinese equities it is u.s. equities with a lot of exposure. >> big story for sure with the

world world's two biggest economies. brendan ahern, thank you some sales troubles for some of the europe's biggest nkbas. we'll be right back right after this s 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.

time for the big money movers three stock stories of the morning. ubs third quarter profits

falling 24% on the drop of market activity. the results beat forecast thanks to flows of money. ubs is attracting $17 billion in new fee generating assets and w wealth management. the ceo telling cnbc clients are on the wealth side and looking for alternative investments and places to put cash next up is hsbc stock hit by 40% by loan losses and sales of the french business. sales beat estimates hsbc is replacing the chief financial officer. a surprise move that puts him in line to eventually succeed ceo finally, s.a.p. posting higher third quarter revenue led by growth in cloud computing. profit and sales outlook is

confirmed and targeting double digit growth in 2023. relations with the u.s. and saudi arabia may hit a new low after the output cut that is not stopping bankers from heading to riyadh we have dan murphy on the ground in riyadh for the conference >> reporter: dom, they call this davos in the desert. the leaders are putting tepnsios with the u.s. and saudi arabia on one side and descending on the capital. they are looking to pour billion no s into the capital it gives them face time at a time when investors are looking at a range of issues like inflation and rising rates and energy crisis which have all been hitting public markets. in the room behind me and around

the hotel are big names like jamie dimon and steve schwartzman. they are all in the room for the event. this frosty relationship with mbs and the biden administration after the opec plus decision to cut output means there is no senior u.s. official on the ground that is the most interesting angle to this. i asked the founder to weigh in. take a listen to anthony scaramucci >> i believe when you are fighting with your spouse and business partner in the world of politics, you say i shouldn't be pushing it this fight too hard both sides need each other i'm hoping for a reconciliation at the political level i predict it will happen it will take some time there are sore feeling around

and that's natural being human you have to step back and look at the long-term relationship. these two countries need each other. >> reporter: so washington is seeking to reset the relationship now wall street seems largely undeterred, dom, that is good news for the crown prince and the economic diversification >> dan murphy at the event in riyadh thank you. coming up on the show, a quick check on futures and mcdonald's unchanged in the pre-market right now mcrib is returning to mcdonald's for what could be the last time. the fast food giant says the s s sandwich will be available for a short time mcdonald's says it is the farewell tour. it appeared on the menu in 2020 after the eight-year absence

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rally at risk. futures pointing to some pressure at the opening bell after stocks notch a second straight day worth of solid gains. a potential catalyst for markets. big tech earnings set to get under way. could growing macro headwinds deliver a real blow to the results? another tech name reportedly

hitting pause on hiring for one of the most lucrative divisions. it's tuesday, october 25th you are watching "worldwide exchange" here on cnbc welcome back i'm dominic chu in for brian sullivan let's get to the markets on the back of monday's solid gains futures on the offer you see just so slightly the dow jones industrial average implied lower 120 points nasdaq down 20 let's see what is happening with oil prices right now on the offer you see wti prices $83.49. down $1 in change. down 1.25% ice brent crude down 1.25% let's get a check of the top stories with silvana henao

dom, more hiring freezes in the tech sector taking place amazon is halting hiring in the part of the web services division the post citing potential candidates and officials within the division have been telling them the jobs they were applying for are no longer available. amazon shares tumbling following the report before recovering some ground. the move marks the latest instance of hiring freeze or layoffs within the tech industry. warner bros. discovery expects to face $4.3 billion in restructuring charges through 2024 that potential charge stemming from cost cutting efforts following the combination of discovery and warner media unit. the charges are tied to restructuring the company's content operations. the price of apple tv and music becoming more expensive.

announcing price increases for both services. apple music rising from $9.99 a month to $10.99. citing increase in licensing costs. apple tv plus is jumping from $4.99 to $6.99 a month. i'm still going to pay for my subscriptions. >> i think people will silvana henao, thank you. this may not be the busiest week of earnings season, but close and could still give investors heartburn. it all starts with microsoft and alphabet out after the closing bell meta reports tomorrow and amazon on thursday. that's a lot of market cap microsoft, alphabet is down 25% this year.

meta is down 60% apple is down just a mere 16%. joining me now is scott kessler for tech media and telecom at third bridge scott, it has a lot of sway on the markets. what are your expectations will big tech be a way for us to find a catalyst to slow down the selection? >> thanks, come. a couple of things come to mind. i think a lot of folks were discouraged by what snap reported last week in terms of an indication the online advertising market not only continues to be weak, but continues to have a variety of different challenges from a growth pecurspective. that being said, experts we talked to suggest that because snap is so oriented to large brand advertisers, they might not necessarily be as indicative

of a company and its performance as companies like alphabet and meta might communicate over the course of the week. >> scott, when we were referring to alphabet and meta, there has to be a moment of cause, right after snap results earlier on. it calls into question a little bit about whether or not there is still appetite for spending on digital advertising from big corporations is that a concern in your mind we heard bank of america analysts downgrade meta stock because of the concerns of the digital advertising spending outlook. are people still going to spend? >> if you look at the digital advertising market right now, there is still spending taking place. we have the holiday shopping season coming up which is critical for a variety of companies. i think what is important to

understand is that snap is very different in terms of its profile than a lot of the big tech companies that are focused on online advertising. think of alphabet/google/youtube. based on conversations that we had, they are much more economically let's call it innocsensitive to kind of what' going on more broadly. they are a measure of overall intent when it comes to buying goods and services, for example. so it is reasonabille to think alphabet is going to perform better than snap meta is a different story. i think a lot of people are looking at that company and asking themselves whether or not the commitment they made to the metaverse right now makes very much sense if you think about the amount of spending and you think about the lack of return that the company

is expecting over the next number of years. so, i think and this was referenced in the lead in that these companies are going to have to communicate some sense of austerity when it comes to spending plans we will see the details over the course of the week. >> scott, we have a few moments left here. i like to ask about apple. it is the biggest in the indices out there. is apple deserve to be the safe haven stock that it has been over the past an 15 years? >> dom, to think about apple is to throughink about a company ti broadly based and has a strong balance sheet. people are not necessarily stepping away from the products and services just because of the high and maybe increasing prices that is a headwind keep in mind that they have tailwinds related to new

products and holiday shopping season it seems like apple is pretty well positioned. again, the key thing for apple is, of course, those new iphone sales and how those are holding up right now, indications have been mixed. apple seems to always confound the doubters when the results come out with volumes being cut which often frankly are incorrect. >> big week for tech scott kessler, thank you very much. coming up on the show. your morning rbi on the europe energy crisis. hopeful signs suggesting relief from price pains around the pond random but interesting coming up next mic charting and risk-reward analysis help make trading feel effortless and its customizable scans with social sentiment help you find and unlock opportunities in the market with powerful, easy-to-use tools power e*trade makes complex trading easier

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effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number. welcome back to "worldwide exchange." time for something random but interesting. for that rbi, we go to brian sullivan >> thanks. good tuesday morning it is time for the rbi today we got pretty good news around europe's energy crisis. we are seeing hopeful signs of the a lot of it is dealing with american exports let's look at natural gas costs. the price of spot natural gas has come way down. dutch gas futures are below $100 the first time we have seen that since june and drop of 70% storage looks good

storage tanks in the netherlands are full and they are not using the gas. there is almost no demand. there are a bunch of ships filled with natural gas sitting offshore waiting for an open port or higher prices or both. that move in natural gas is also dropping the price of electricity. electricity prices per kilowatt hour tumbled lately. that is good news for families and companies and industries across europe. aside from the american and norwegian natural gas helping out, there is another big player the weather. it has been nearly perfect across much of europe. they haven't needed much gas that is good news. now does this mean that the situation is resolved longer term absolutely not as we have been reporting for months, the weather may be the most important variable going forward and what we know about the weather is it could change quickly. if we get a severe turn during the late fall or winter, much of

that storage could drawdown quickly. then the focus is squarely on what happens next year when they try to refill the tanks largely without any gas at all from russia something that has never been done before. in the near term, let's appreciate the good news and very big helping hand from one mother nature. thank you. random but hopeful >> brian, of course it will be close to 70 degrees in new york city today in october. housing in focus today as we await the latest s&p home price index due later this morning that figure is expected to show gains which are smaller than the prior month. home prices continue to cool off with mortgage rates just shy of 7% for 30-year fixed for more on where things stand right now for housing, let's bring in brad dillman at cortland brad, there are signs that

housing is cooling off, but no real forecast or prognostication among many that it's going to crash, so to speak do you expect the housing market to crash >> i don't think crash is the right term certainly not at this stage. for what it is worth, we are looking for the inn dex to come out today. the consensus figure in front of me is 15%. i'll take the under on that. i think it will be 13.4% year over year. that is still very large year over year. we are talking double digits it is growing. >> it is interest rates for sure we heard home builders reference that in taking down the expectation for the future growth interest rates are a big part of this it is also about whether or not people are putting houses for sale right now are you seeing signs in the housing market that people are still trying to get their houses

sold or not a lot of activity given the fact interest rates are high and people are just not buying >> right i think homeowners have more incentive to sell at this stage and not get the pricing execution they would have had in the spring when the mortgage rate environment was more accommodative. with fears of recession, people look ahead and say if you end up with job losses, you will have selling. if that occurs in the environment which still has a deleterious mortgage rates, you may see a faster cooling of home prices than you do now. >> one of the other dynamics that is interesting to watch play out, brad, is the notion that homeowners in america might actually be better off today than they had been over the last 20 years when it comes to potential down turn. because of that, interest rates have provided them an opportunity to refinance at

lower rates over the last several years. do we feel as though the refinancing activity that we have seen over the last several years has made it so we will not have as much of a possible down turn in the economy and the housing market given the fact people can hold up payments even if there is financial stress involved >> for anybody who was a homeowner prior to 2020, they were able to refinance in the low rates. for those millions of people who bought homes in the last several years, you had the cheap mortgages and low rates. they had to pay more for the asset. we saw that in the home price appreciation those folks bid their payment to a high level the low rate is meaningless. as a percentage of the monthly income, it is a large outlay for them by and large, i would say yeah you have a fair amount of homeowners who have a low mortgage rate and cheaper mortgage than they did when they

entered the house. they are in a better position as long as they are not looking to move. >> brad, what if there is a scenario developing in the housing market where people do want to kind of think about moving around? are they prohibited from doing so because they are in a home they maybe lock into a rate the last couple years that is so attractive that if they want to buy another house and take on another loan, it will cost that much more? >> that would be a calculus. not only that, they would sell their home at a higher price, but they have to buy one at a higher price and higher mortgage rate assuming they using leverage that will play into the calculus as we see people working remotely because of the pandemic, we may have people working remotely because there is no incentive to move or unable to move. >> interesting housing dynamic for sure brad dillman, thank you. coming up on deck for the show stocks looking to keep the two-day rally rolling.

greg branch rolls out why you should not be fooled by the market's recent rebound. tune in to the new episode of "jay leno's garage. president biden taking a spin in the ford f-100 that will come up tomorrow night. 10:00 p.m. eastern time right here on cnbc "jay leno's garage." tomorrow night at 10:00 p.m. we'll be right back.

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partnership with kanye west after the slew of offensive behavior the german sports company will announce the move as early as today. if confirmed, adidas will join gap and balenciaga fashion basebalabe in cutting ties with west. and weber sagrills under a w offer for sale which is a 24% premium to the monday closing price. the stock is at $6.12 right now. a busy day on tap on the economic front philadelphia fed non manufacturing numbers and read on consumer confidence plenty of earnings reports including 3m and coca-cola and

general electric and general motors and ufrmt.p.s. and gm and visa fed governor christopher waller speaks this afternoon. we have a number of first inter s views on cnbc. ceo of general motors and coca-cola and ceo of goldman sachs. a very busy day. back to the markets as investors await the earnings report to potentially provide fresh legs to the rally. greg branch is a managing partner at veritas greg, i listed off a lot of catalysts today alone. is any of that good enough to change the market's direction? can we find the bottom soon? >>i don't think so, dom.

they are not of ai magnitude in the catalysts that matter. when you look at the earnings season thus far, we come in slightly below the average in terms of companies that give us positive surprises the key thing is that's against very decreased expectations. on june 30th, the expectation was the blended earnings growth. what we witnessed is 1.8%. when you look at the fourth quarter, right now, the projection is 4% so how we get from this quarter at 1.8% to 4% next quarter and 8% in 2023 with the fed still having a number of moves ahead of us not just in november, but likely december as well and potentially january as well with kwquantitative tightening just beginning. what we will hear, dom, even in places where we found safe haven

like the cloud and digital advertising and outside search, we will see a unique softness we have not seen in business. not that they went be growth, but not the growth we are accustomed to. >> greg, there are people out there on wall street that have taken into account what you have talked about with the slowing momentum and projections because the stock prices have been crushed. nasdaq is down 30% since the record highs sus isn't that enough to account for the fact we could see slowing earning momentum in the coming quarters >> dom, anecdote at ly anecdota that all the time. when it happens, the market reacts because it is not in the numbers for everyone that is why there is a wide range of consensus the other thing you said being in the numbers and how we react from here is we have the

downward revision to go. when the estimates aren't right, we don't know if it has been crushed, necessarily the stock price has come down. you can't tell me something's cheap unless you can articulate that on a multiple basis if the earnings aren't right, the multiple isn't right we have to get the earnings right first before reliable multiples to define cheaper. >> greg, before we let you go, you pick stocks. what do you like >> i do. despite the commodities, i think energy is setting up for the mother of all supply shocks in the winter months as we will see if europe is going to go ahead with the embargo in december particularly with the prices coming in with opec cutting 2 million barrels and our reserves getting lower. i'll look at some cloud businesses i like to see how much they are

accelerating i'll still have room for safe haven. you have a better risk/reward with fixed income. no need to take extra risk >> i hear it often these days. risk free rates at 4.25% greg branch, thank you that does it on "worldwide exchange." dow implied lowebyr 109 points. "squawk box" is coming up next see you tomorrow

good morning earnings alert alphabet soup day. we will hear from u.p.s., 3m, ge and gm that is in the next hour alphabet reports after the c

closing bell. a new report stating adidas is cutting ties with kanye west. take your time after his recent comments and anti-semitic social media posts. and rishi sunak set to deliver his first speech at uk prime minister we will have highlights on this tuesday, october 25th, 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 rebecca quick along with joe kernen and andrew ross sorkin. if you look at what is happening with the u.s. equities at this hour, we are looking at a little bit of pressur