headquarters and here's your "five@5. dark clouds over wall street a historic event for alphabet, but not in a good way. fireworks in harrisburg during the one-and-only televised debate between senate candidates fetderman and oz and kanye west as more cut ties with the fashion mogul and r

ra rapper it is wednesday, october 25th, 2022 you're watching "worldwide exchange" here on cnbc good morning i'm seema mody in for brian sullivan let's kick things off with a look at u.s. futures after stocks closed higher for a third straight session yesterday pretty nice rally, in fact, but a slightly different picture emerging here. we're looking at the premarket action s&p 500 down about 19 points, dow jones industrial is indicated higher, up by 20 at this hour, but the nasdaq, you can see feeling the pain here following those downpete tech earnings, currently set to lower by 155 points. let's check out what's happening in the bond market right now yields, where are they at? the 10-year, 4.04% take a look what's happening

with oil, wti crude, higher by 0.37 brent crude, back above 93 bitcoin and ether are higher, significant moves i would say. ether up about 3%. bitcoin above 20,000, up 2%. let's get a check on the overnight action in ashorthand early trade in europe. for that we go to our julianna tatelbaum in the london newsroom. >> good morning. they managed to shrug off the negative sentiment green across the board the hang seng in hong kong, which has been incredibly volatile, this week, of course, the heavy selling in technology shares earlier in this week showed some resilience up 1% nikkei and japan gaining ground overnight. in terms of european action, we

started sideways and the positive momentum built and we've come down a bit iechlts been a choppy session so far the xetra dax up 0.6%. we have a little bit of a performance from the ftse 100, a term of 1% it's a big day for earnings here in europe. let me highlight a few of the big names for you. deutsche bank has posted a third quarter net profit of 1.1 billion euros, its ninth straight quarterly profit. it added it's starting to see the benefit from higher interest rates come through fairly metered reaction in shares as these results came in largely in line with what analysts and investors had been expecting. one name that took investors by surprise, heineken the company reported slowing beer sales growth and reaffirmed the growth as it rose in the third quarter. despite a sharp post-covid

recovery, the dutch says it's reasonable to be caution that's perhaps why we're seeing a 10% pullback it's the worst performer in europe this morning. finally in the auto space, an interesting result from mercedes-benz. the carmaker post ed third quarter earnings the german carmake err shoulder 104,000 vehicles in the quarter versus 88,000 in the year ago period the shares are marginally higher this morning see ma, back over to you. >> thank you and to this morning's top stories. a pair of mega cap names getting hit hard this open first, alphabet, the company posting its third straight top and bottom line miss for the first time in 2015 eps came in 15% below estimates, biggest miss in ten years. as for revenue, posting its slowest year in year-over-year growth since 20.

microsoft issued weak fiscal second quarter guidance for each of its business units. stock is down 5.6% in the premarket. for more let's bring in our own ar june carpal. what stood out to you? >> absolutely. let's look at what's gone on here firstly you mentioned the big miss on eps and revenue for alphabet really this was about softness in advertising yes, it did tick up, but revenue declined in the quarter. that's the first time youtube started breaking out those numbers since 2019 it was always seen as a sticky property for google. advertising has got a region to

be cautious. there's been a pullback from advertising spending from some of google's customers as well. they're cutting budgets and holding back some of that spend for the holiday spirit over next year given the uncertainties of the macro environmental. on the back of it, google is likely to see head count additions lower. one bright spot, however, in alphabet results was cloud $6.9 billion revenue in the quarter, beating expectations. certainly this is something investors want to be seeing more of that's why you're seeing the stock down in premarket trade. moving on to microsoft as well, now, this was an interesting one. it beat on revenue, beat on eps, but the stock was down investors really disappointed with the cloud computing that was really the dark cloud over 23.33 billion in the cloud division still up 20% year over year in terms of growth.

azure grew cloud was a concern. slightly weak guidance given the market so a slowdown in the tech sector is what's on investors' minds. that's why you're seeing both down. >> arjun, reading through the transcripts, any sense of when these ceos are expecting a return, a rebound in the market? >> not at this point, seema. to be honest, they're very uncertain about the future t macro environmental at the moment you see that reflected in microsoft guidance it implies 2% growth in revenue even though earlier they said they're expecting in their fiscal year double revenue and earnings that is a concern because some of the shine off that bullishness they had earlier this year has gone, and so that, i think, reflects the uncertainty in the macro environment. if you look for it, it isn't just about the slow ad spend

it is about now, the coming quarters, when will advertisers be bringing their budgets back i think that's why you're seeing a lot of the tech companies really focused on costs and cost-cutting that's where markets want to see discipline in that area. >> speaking of cost-cutting, we'll hear from facebook parent meta tonight we'll see if there are any signs of cost cuts there arjun, good to see you thank you. back to the broader market, a new pullout from reuters finding forecasters believe the global economy is approaching a recession while central banks keep raising rates to bring down inflation. economists say the downturn will be short and shallow in most countries, but that may also keep inflation elevated for longer they expect global growth to slow to 2.3% in 2023 from 2.9% this year, but rebounding to 3% in 2024. get this only six of the major 22 central banks are expected to hit their inflation targets by the end of

next year. the fed expected to hike rates by 75 basis points for the fourth straight time when it meets next week. but economists say it should not pause until inflation falls to around half of current levels. let's talk more about this and the impact on markets with annika tree on, chief economist. great to have you on i really find your results here interesting. here's one question to you if inflation is so stubbornly high, should the fed move away from this arbitrary inflation target of 2% >> good morning. that's a tricky one. in all fairness, the fed has done a decent job. oi think they have to hop on that same tune

there's too much overfocus, overfocus on this fed pivot. >> to your point, you raise the note monetary policy can have a delayed impact on the economy, although, many people say it's already showing up if you look at what's happening in the housing market, the equity market, what's happening right now, how long does it take to feel the effect and bring inflation down. >> you can study what's happening in the previous cycles obviously the world changes per cycle. it's difficult to make it completely scientific. it's a six-month-plus mechanism, that's why it's so paramount if the fed is so keen to restoring credibility. there's a very large risk that this pivot we're talking about or this less hawkish behavior takes longer than expected and i think what's maybe more important than that is inflation wild-cards out there, not enough

people are talking about china, the wild card of china once it finally starts to reopen it pretty much locks out the economy. >> if anyone can find out when that happens, that would be key. what does this mean for earnings, big companies here in the u.s. certainly the message from big tech so far hasn't been great. >> that's the other remarkable thing. earnings estimates have held up extremely high so if you look at analysts' estimates for u.s. corporate earnings, it's still a high single-digit growth expected for 2023 in europe, low single distinct growth if you look at how earnings estimates have changed over the last couple of months with this really bleak macroeconomic data, earnings estimates have hardly bunched. we're in early days, but you see the sort of whipsawing effect.

that's a lot of anything tent sentiment that gets those contrarian bulls going to. you need to see it be reset first. >> now down two points anneka, thank you. when we come back, higher costs hitting the stocks especially hard before the open. that's a mystery chart we'll resri next. plus, wrapping up day two of the davos in the desert. we have a live record from riyadh. and worse, more brands drop the mogul. a busy hour ahead on "worldwide exchange." ti's stronger sentimee

showing signs of weakness as customers become more cautious amid global uncertainty. f 5 expecting better than expect quarterly results they'll benefit from tailwinds from its system division the company is forecasting first quarter results to be below

analysts that's why you're seeing shares down 4%. shares of sketchers tumbling the sneaker maker's third quarter profits missing forecasts, although revenues beat the company says while demand remains strong, it's facing multiple headwinds from for supply rates and challenges and ongoing covid lockdowns. check out that chart stock down 13% in that market. investment leaders are in saudi arabia this week it appears to once again be the can't-miss investment event in the region our dan murphy joins us live from riyadh with the major highlights hi, dan. >> reporter: hi, seema recession fears have been ricocheting in riyadh.

ceos doubling down on their calls that global growth is slowing. solomon said the fed hikes are going to cause economic conditions to, quote, tighten meaningfully in the coming months, and jamie dimon agreed with him he said the surrounding areas are equally concerning for the global outlook seeing strong words from the saudi energy minister that's really caused tensions with the united states. with all of this recession talk that we've seen from these top ceos, the energy minister said that countries should not be tapping into their emergency oil reserves he says losing emergency stock may actually become more painful in the months to come. interestingly, the former iranco executives said the comments were aimed at the biden administration's use of the strategic petroleum reserve.

listen to this. >> the strategic use of the reserves in the u.s. has had a security function for us and the rest of the world. to start tapping into it from time to time for commercial reasons, maybe not even very enduring or very helpful, it just undermines the whole security function. >> reporter: so while we've seen these tensions between the united states and saudi arabia continue to ratchet up, seema, it doesn't appear that wall street has been very phased, this event attract thousands, all looking for new investment opportunities across saudi arabia, the region, and the rest of the world back to you. >> dan, i'm curious. the fehe major emerging markets. it's sent the currencies to new lows and made the debt more expensive. i wonder your feeling -- if you're hearing any pushback from

these major countries and their leaders. >> reporter: well, of course, what we've seen across many of these markets including here in the middle east is when the federal reserve hikes rates, they, of course, have to continue in lockstep with their own domestic central banks because the currencies are pegged locally including the rio here in saudi arabia and the durham in the east they're moving lockstep with the fed. in terms of the economic outlook, though, saudi arabia is going to be one of the best performing economies in the entire g20, in fact. so clearly despite the fact we've seen some of these economic global concerns, perhaps they're a little more shielded because they're also petro-dollar economies, the oil hitting up to $140 a barrel this year, certainly supporting the outlook, seema there's a lot of optimism in this part of the world, perhaps, compared to what we're seeing in the united states and elsewhere. >> you're an oil producer,

perhaps you should be. dan, great to see you. still on deck, democrats hoping to maintain control of the senate in jeopardy after last night's sole debate for pennsylvania's senate seat a live report ahead. plus putting market volatility of 2022 into some "wldderscte. orwi exchange" back after this to support society and businesses have a responsibility to support that village. ♪ ♪ i am peter akwaboah, chief operating officer for technology, operations and firm resilience. when you think about diversity, the employee network group is fundamental to any organization to provide a community and a belonging environment for the employees. they provide an avenue to support employees and ultimately it leads to retention of the best and brightest. the employee network represents the community at large, and it provides a good feedback loop

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welcome back time now for something random but interesting. for that we send it over to brian sullivan. >> it is time for your morning rbi. today let's talk stocks because did you know that this stockmarket is in rarefied air doing something it nearly never does it's true. at least when it comes to volatility let's explain. this cool stat comes courtesy of data trek research all right, first, normally volatility is relatively low that's true by definition. meaning most days, 68% of the time, the s&p 500 will close within 1% of the previous day, 1% up or down. tin dex, say, is up 0.4% one day, down 0.3% the next day. you u get the idea when markets get more nervous, they get more volatile with larger price swings. that's where we are right now. in fact, we're in nearly historical territory when it comes to these bigger swings

data trek notes there have only been four times we've had the s&p's 100-day volatility consistently over 1.5% per day well, this is one of those times. and we've actually had a 1 ten-day run in this turbulent territory. those other times that we have seen these kinds of consistent outsized moves was the early days of the pandemic it was the greek debt crisis back in 2011 and the most volatile time of all, the past 20 years was the financial crisis when for five months from late 2008 to march 2009, index actually had nearly double the average price swings that we have now very scary times back then and we're not too far off them right now, which is why data trek notes that if this year feels worse than some other tough years, it is the big price swings, up a lot, down a lot are not your

imagination. data trek notes these periods generally in a big shift with either fiscal or monetary policy in other words, as annoying as it is to talk about the federal reserve every day, the fed ending rate hikes may be the only way we stop these roller-coaster markets random but interesting. all right. to the midterm election. pennsylvania lieutenant governor john fetterman and mehmet oz facing off last night for the one-and-only debate of what's become perhaps the most important senate race in the country this year. nbc's brie jackson joining us from washington. hi, brie. >> reporter: good morning, seema. we saw fireworks, and we saw something new. both campaigns agreed to have closed captioning screens to help democrat john fetterman as he deals with an auditory issue. the open u.s. senate seat in pennsylvania is seen as critical for gaining control of the upper chamber. a showdown for pennsylvania's u.s. senate seat

democrat john fetterman, who's recovering from a stroke, addressing the elephant in the room for the first time we saw closed captions used on stage. >> i might miss some words during this debate. >> reporter: verbal jabs through between republican senate candidate mehmet oz. >> here's a man that's spent more than $20 million of his own money to try to buy that seat. >> reporter: concerns over issues like inflation and crime are driving early voters to the polls in record numbers. in georgia, officials say more than 1 million residents voted already. >> every voter, republican, democrat, and independent, understand that their vote is extremely valuable in this state. >> reporter: incumbent democratic senator rafphael warnock is nationing off against challenger and former nfler hershel walker i spoke with people about the

implications >> we're the state that brought the u.s. senate to the 50-50 balance we have, and i hope we can be part of that. >> for hershel walker, we'll have a champion in georgia who will rein in things. on friday president biden returns to pennsylvania to campaign for democrats, and former president barack obama will hold a rally in georgia, signs that democrats are bringing in their heavy hitters during that final stretch in an effort to maintain control of congress seema? >> thso much focus is on that ultra tight battle for senate control. but the house is also up for grabs in 13 days where do things stand? >> well, seema, history shows the party that's held the white house typically loses seats in the midterm election in the president's first year, and the republicans do seem to have the advantage heading into this november election. so if republicans do take

control of the house and the senate, that could make it a tougher road for president biden to move forward with his agenda. >> brie jackson in dc. thank you. coming up, one of the most high-profile ipos of the year getting set to make its public marketeb dut today ipo. we'll be right back.

stocks pointing to fresh pressure after three days of

solid gains as earnings raise fresh doubts for investors alphabet and microsoft part of that after the rare disappointment the common theme, weighing on shares of both and the potential warning for the broader economy. and the fallout for kanye west over his anti-semitic comments as another retailer pulls his content from the shelves, cutting business tice with kanye west. it's october 25th. you're watching "worldwide exchange" on cnbc. ♪ welcome back i'm seema mody in for brian sullivan good to be here with you it's right around 5:30 here in new york let's get a chet on u.s. stock futures. disappointing earnings from major tech giants showing up in the morning action take a look. right now pointing to a lower open, down 200 points. dow jones industrial average turning negative, down 43

points s&p 500 in premarket action suggesting a lower open as well, down 28. let's get a check on some of your top morning stories silvana henao here now good morning. >> good morning. they're set to begin trading today after its initial public offering topped expectations, the company mobileye shelling 20 shares raising $861 million. they were expected to price for 18 to $20 each it will trade under the nasdaq under the symbol mbly. apple says it will comply with a new european union law over its stations. the president saying the tech giant will follow a ruling by eu ministers earlier in the week ordering they by 2024, ele electronic devices will need to support usb-c charging

and the fallout continues for kanye west of his recent wave of anti-semitic comments. foot locker is the latest. the company is pulling shoes from his yeezy brand from its shelves. mean wheel rams' doon ald, celtics' brown will leave the sports agency owned by ye. seema? >> thank you. >> you've got it. back to this morning's top story, picking up. the google parent company issues third quarter results missing on the top and bottom line. revenue growth slowing to its lowest level since the start of the pandemic in early 2020 even the company's most resilient businesses getting hit hard and raising concerns for the future digital ad market across all platforms and tech.

joining me now is the senior equity analyst at crna to make sense of all of this angelo, going from the' earnings call last night is saying they will focus on operating expenses i guess how much does this big tech company need to rein in on costs to satisfy wall street >> i think that's what's top of mind for investors right now you look at the environment, what we've been seeing and hearing in recent months the problem is, you know, on ex-continues at least in q3 to grow north of 25% while the top line is slowed to about 6% in growth and that's the real issue here our view is they're going to focus on the on ex-side of

things really, that wasn't just a big d disappointment in our view, we probably see the bottom in terms of, you know, vps with options in terms of the on ex-growth side of things. probable in the second and first half of next year before we see a reaction sell racing of growth in the second half and see the full benefits on the cost-cutting side of things over the next two quarters. >> the decline for youtube ad sales also really stood out. a number of analysts talk about it this morning. it's the first time we saw it since the company reported its performance in youtube in 2020 what's going on here >> yeah. i think there's a number of factors. i mean clearly there's, you know, largely driven by what's going on on the background side of things and ad side of things. it's hitting all aspects of google's business. been very resilient and continues to be very resilient

here on a relative basis but on the youtube side of things, you're seeing a shift from these longer form videos to shorehamform videos, and you can thank tiktok for that. when you do that, there's less revenue, potential tied to those types of videos. also there's a number of factors that help monetize that business again, it's going take a couple of quarters for that fully to come into fruition at the end of the day, it's largely what's going on on the outside of things and, of course, the shift from longer to shorter form videos. >> so, angelo, there's a takeaway on lesser side of competition and more on the macroside. is this a reason to buy the stock on weakness? >> listen. in our view here, typically, you know, when you're thinking about the ad space, there are going to be times, you know, macro issues out there and times of cyclical

factors that are going to impact this business in general we continue to think there's no structural issues here as far as alphabet is concerns we have to think about it. this is a business that grew north of 40% a year ago and they're kind of bumping across those along with kind of the forex head points there. in our view, again, this is a -- these businesses on the ad side of things probably bottom here over the next two quarters in our view, yes, you look to be more constructive on this type of weakness. >> what will you be looking for from meta? >> i think meta is going to be a lot of what we saw on the youtube side of things and what we saw from results last week. it's to be expect. at the same time, we think a lot of the expectations have been built into the stock. >> all right, angelo, thank you.

appreciate your time. warning of a decline in pc sales and overall growth due to the strength of the dollar, microsoft still faring better than most of its peers despite posting its weakest revenue growth in more than five years the stock is down 6% in extended trade. joining me now is manager director of software research at griffin authorities. jay, thanks for joining me here. what's your take on microsoft? >> at you noted, it exceed expectation, coming in at over 50 billion their first and third largest segments were in line essentially.

azure was in line with our current basis and as a reported basis, and that's obviously very important. >> how do you expect microsoft to cut costs what other way will they help margins going forward? >> we've seen for months that the company has been clearly much more prudent in terms of bringing people on we track this number on a monthly basis. we public regularly on it, and we've known since may they were scaling back on the number of people they were looking to add. now, they did grow a head count in the quarter fairly substantially. they did note that however, we can see from the data at the end of the quarter and doing a spot check last night that the number of total openings, potential jobs, has essentially collapsed. so the lowest in a number of years. so clearly the company has taken its foot offer th that gas, and that's one way a software company would limit its expense

growth. >> expecting to drop 30% in the quarter. this is a company who really relies on demand from entire prize, from businesses what does that tell you about major companies scaling back their i.t. spend >> the pc business was known to be on a decline. it's expected to decline more substantially in the quarter let's keep in mind azure is at least four times the size of the windows oem business and it's growing substantially. pc is very visible, historical for the company, but the real story is, i think, that the commercially oriented businesses did well and they're expect to continue to do well as per their guise answer it's really more the high volume, more consumer oriented business including gaming that i think are going to be more

adversely affected >> thank you appreciate it. microsoft down 6%. all right. coming up on "worldwide exchange," more of your morning's big money movers including shares of spotify under pressure why the company may become the latest streaming svierce to hike prices "worldwide exchange," we're back in a moment. what if you were a major transit system with billions of passengers taking millions of trips every year? you aren't about to let any cyberattacks slow you down. so you partner with ibm

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there's a lot happening. shares of mattel falling despite reaffirming its full year revenue outlook, but the bottom line is a big story. the toy maker slashing their estimates. the company's also, quote, re-evaluating its expectations for next year due to market volatility stock down 5.4%. check out shares of spotify after reporting third quarter loss that was wider than analysts estimates, the company's ceo daniel eck also floating the possibility of raising prices for the streaming service in the u.s. amid weaker margins and a slowdown in ad growth on the call, ceo says his company has, quote, significant pricing power compared to rivals like apple music the stock is down about 5%. take a look at shares of chipotle dipping in the premarket after a mixed earnings report that saw sales come in salutely below estimates, the

company attributing the earnings beat to recent menu price haikals. the company is seeing, quote, minimal resistance to higher prices >> we are less than two weeks away from the midterm elections, and it's not just candidates on the ballots this year. a number of states putting big tax chainchs in the vote robert frank has more. good morning, robert. >> good morning, seema 12 states, in fact, have had tax changes on the ballot this month. the big three are california, massachusetts, and colorado. colorado has actually two ballot measures, one that would cut the current flat rate from 4.5% to 4.4% and another that would deduce reductions to those making more than $400,000 a year voters in massachusetts deciding whether to keep its flat tax

that's been in place since 1917 or at a 4% sur tax on those making more than a million dollars. that would give them a 9% tax rate the biggest is california. proposition 30 would add a new 1 1.75% sur tax on those make ing2 million or more. that would be a top rate of 15.05ch. the combined rate would be higher it is backed by lyft which has spent more than $35 million backing this measure to convert its fleet to evs now, the democratic governor gavin newsom, the state teachers union, and republicans all opposing this measure, but, seema, a big fight in colorado with a lot of money at stake

$3 billion to $5 billion in revenue. >> back to california and the proposal there, robert, what chance does it have of passing, and what do the polls say? >> like everything next month, this is going to be very close this has to pass with a majority of voters, so 50% or more. right now it's at 49%. it had been doing even better, but when governor gash innewsome came out and called this a trojan horse for lyft, speaking to the amount of money lyft has supported, it started to get less support going to be like everything else down the wire next month. >> wow we'll be wanting to story closely. robert frank, thank you. stocks trying to shake off earnings worries and keep the three-day rally rolling. why your next guest says this most recent bonsback maybe another market head fake. be sure to tune in to a new episode of "jay leno's garage"

talking with president biden, talking everything hot rods and electric vehicles. that's tonight only on cnbc. we'll be right back.

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so you won't miss an opportunity welcome back time now for your executive recap. three stories this morning you may have missed. shares of sketchers are tumbling after a mixed third quarter. the company is issuing weak guidance for the current quarter crying four ex-headwinds and challenges stock is down 4.9%. mehmet oz and john fetterman facing off in the one-and-only senate seat last night, weighing in on abortion and the economy concerns over fetterman's performance as he continues to recover from a stroke he s

suffered back in may. goldman sachs is out with a new note saying conditions for bottoming in u.s. equities are not apparent just yet telling clients, quote, there can be significant downside if a proper recession occurs or geopolitical risks in ukraine and else where intensify. the goldman team expects the s&p 500 to drop to 2888, implying a 25% fall from yesterday's close. here's a look at what's ahead for investors on the economic front we get two reports focused on housing. at 7:00 a.m. we get weekly mortgage applications followed by new home sales figures at 10:00 a.m. another busy day of earnings with results from meta, ford, boeing, harley-davidson, crkraf

heinz, and ns. and the new entry-level and pro versions of apple's ipads will hit store shelves today. now, the earnings parade once again the key focus for investors totally misses from alphabet and microsoft weighing on futures and adding to a recession. zachary hill is the head of portfolio management at horizon investments. zachary, thank you for joining us. >> thank you for having me. >> what's the message from big tech overnight >> we were thinking the setup was negative and companies would do better than expected. however, those two releases last night have us rethinking that a little bit those are some of the most secular growing part of big technology, and we've got a lot of issues with hardware and things like that so far this year, but to see some weakness

there last night, i was rethinking the better than expected earnings expectations. >> putting earnings to the side, we've had a nice mini rally, three consecutive days of gains, the dow jones industrial, is the path higher or lower from here >> until, you know, earnings came in soft last night, we thought the path of least resistance was higher. a few times the market has tried to trade this peak inflation narrative, had some comments from a few more dovish members saying they're going to try to downshift the interest rate hikes. as we look at it, inflation is the only thing that the fed cares about right now. they make very litful at all progress on their inflation target we think kind of running up and seeing that relief rally while it may feel good for a little bit is not going to be ultimately the trade we're going to get on board with. >> the dollar has also weakened,

but we see the effect last night from google's cfo talking about how the dollar has knocked 5 points off the revenue growth. how do they deal with a stronger currency are there other strategies they can use from restructuring their businesses your seas i mean in addition to meta, we'll hear from caterpillar, a major company that has big international footprint. >> you know, the way companies are structured cross border, it's not something you can restructure at the drop of the hat. that's a kind of thing that takes many, many years companies to do hedging and things like that as we look at it, we expect the dollar to remain strong all year long and continue to so long as the fed's goal is getting inflation under control and we're not making any progress to it, which is certainly how we sit today, we're thing about that in a few ways

looking at international stocks. emergencying markets tend to struggle when the dollar is strong and trying to stay a little closer to home. one area we like a lot is small and mid kaps frankly for that reason what their revenue exposure looks like. a lot of revenue. >> a lot of it has to do with where interest rates go. we have a fed meeting next week. is your con senn says we get a 75 rate point hike or do we get more than that? >> i think 75 is it. we'll listen to others there's been a lot of confusion around the fed's goals, certainly some prominent media leaks last week injected more confusion into that. we do think eventually the fed is going to step down their pace of interest rate hikes they're not going to hike 75 basis points for ever and ever they need do so with the markets

being dovish and seeing another 15%, 20% rally like we have twice this year. that's a really delicate balance that by and large is going to keep volatility elevated and make it hard to lean into risk assets. >> i was going to say, the read on the consumer, how closely will you be watching meta, which is reporting tonight >> yeah. i mean, we're watching -- this is a huge week for earnings. that's definitely very important. certainly some related companies last week have us a little bit concerned about what they may have to say. just to your prior question about the consumer, that is really the thing that we're watching, and so far, you know, they've defied some of the -- you know, some of the doubters that we were going to see, material slowdown. we think that has to do with the la e bore market people spend out of labor income and the labor market is quite strong right now. >> it is we'll see if it holds next week. zachary, thank you for joining

us today zachary hill. a quick like at the futures. premarket action here, we're lower across the board nasdaq indicating a lower open by 181 points. dow jones industrial down 44 points today we'll hear from a number of major companies and wgee t new homes data that does it for us. thanks for joining us. "squawk box" is next 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. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can

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good morning nasdaq futures plunging after disappointing results from apple and microsoft. visa, the payment giant, says it's not at this point seeing signs of consumer anxiety or uncertainty, we stress, yet plus, gap and foot locker

are the latest to pull yeezy products from store shelves. we'll talk about the artist formerly known as kanye west it's wednesday, october 25th, 2022 "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc we're live from the nasdaq market site in time square i'm becky quick alongside andrew ross sorkin and joe kernen we're looking at record arrows the dow future's office by about 71 points, the s&p by 30, the nasdaq off by 192. some of the earnings results were disappointing