a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. it is 5:00 a.m. at cnbc. here is the top "five@5. we begin with a brutal week for big tech it is about to get worse with $800 billion in market value erased in a matter of days today is amazon shares tanking after issuing weak outlook for the all important holiday quarter. mega trend apple is bucking the trend. it is official as elon musk tweets the bird is free taking its place at the c-suite

at twitter. and investors rush to snap up bonds ahead of the deadline it is friday, october 28th, 2022 you are watching "worldwide exchange" here on cnbc good morning happy friday i'm frank holland in for brian sullivan let's kickoff friday with the check of stock futures with the s&p and nasdaq coming off back-to-back losing session. dow up for the first time since august boosting that index yesterday. this morning, as we can see, red across the board s&p and dow lower. nasdaq hardest hit big tech earnings are disappointment impacting the index. let's check the bond market. a bit of a surprise. 10-year treasury below 4%. we are seeing it here. ticking right about 4% at 3.97%.

that gdp report was a surprise yesterday showing inflation easing a bit easing up on the bond yields energy with oil down this morning. wti up $5 over the last month. natural gas actually sliding in recent weeks milder than expected weather in europe is possibly a factor. cryptocurrency bitcoin and ethereum down across the board. you have to keep in mind ethereum since the middle of the month and bitcoin making a move to the upside. deep in the red today. bitcoin down 2.25% turning attention around the world. red arrows in asia hang seng down after the bank of japan left interest rates unchanged in the latest policy meeting despite the currency trading at 32-year lows.

turning to europe, trading getting under way. the central banks hiked rates and disappointing earnings in europe. turning attention to the top story. shares of amazon simply getting crushed. down 15% this morning. the company looking to shed $140 billion in market value. amazon posting weaker than expected earnings and revenue for the quarter after dis disappointing guidance and then on the flip side, apple with slowdowns in the iphone business shares up 1% in the pre-market arjun kharpal is joining us from london the market cap set the trade below $1 trillion since the first time since the start of the pandemic in april of 2021. >> reporter: absolutely, frank it was a disappointing quarter

for the company. it was the guidance that got investors worried. amazon saying in the fourth quarter it is expecting revenue between $140 billion and $148 billion. implying between 2% to 8% growth which is the key holiday weperid cloud growth in the key aws division it was below expectations and perhaps we are seeing businesses pull back on ad spending a couple of things hang with the pandemic boom which we saw is now starting to fade and the macro environment turning worrisome and potential recession and slow down in consumer spending. bucking the trend from what we saw from the likes of alphabet and meta with digital ad sales let's move on apple. the best of the bad bunch in a

very rough week for tech they beat on the top and bottom lines. iphone sales missed. $46 billion. services is supposed to be the division of recurring revenue. apple can continue to milk the iphone users that was a miss. 19.19billion in revenue. 5% growth. significant slowdown from the quarter before management gave hints for the fourth quarter year on year revenue growth is less than the third quarter. concerning with the iphone 14 is out and this is the biggest quarter for sales and the key holiday period they were expecting max sales to decline. that services revenue will grow, but it will be hurt by the macro. worrisome signs from apple best of the bad bunch in a very

rough week for tech, frank. >> arjun, you may under state how rough a week it is for tech. let's focus on amazon. a lot of us are looking at the miss for aws obviously that segment of amazon reported 20% growth. do you think investors need to be concerned about the significant slowdown for the hyper scaler >> reporter: you hit the nail on the head, frank. it was 27% growth in aws we saw microsoft cloudy vision up 25% investors expectation is high with the cloud division. there is concern with the compa companys pulling back. that is not to say that the move to the cloud is going away it has been pulled forward a

couple of years because of the pandemic i think that boom we saw during the two years of the pandemic is starting comparisons and we are starting to fade out a bit you will see a bit of cut on spending, but certainly companies need to be cautious. the longer term trend toward the digitalization and moving to the cloud is not going anywhere. >> recent trend, mega cap tech is hit hard as we saw. amazon down 13%. i want to correct myself amazon set to lose $140 billion in market value. it is early, arjun, you are on top of the story in europe great to see you >> thank you, frank. turning to the top story elon musk setting the bird free. his words not ours silvana henao is here with the story. >> happy friday, frank twitter is now owned by elon musk with sources telling cnbc

the sale has closed. among the first order of business is the firing of ceo and finance chief and head of legal policy musk is expected to assume the role of interim ceo. he may appoint someone else in the long term. musk send out a tweet reading the bird is free it is not just the ousting of the old guard. musk intends to do away with permanent bans on users, meaning people will be allowed to return a category of users that would include former president trump it is unclear if trump would be allowed back on the platform in the near term. frank, according to bloomberg, musk is asking engineers from tesla to meet with twitter to address the code >> a lot to watch there.

>> absolutely. >> elon musk walking in the building with a kitchen sink >> we are all worried about that >> see you later on. turning our attention back to the markets averages wrapping up a volatile week of trading with alphabet and meta and amazon, investors are looking at $8100 billion of market value wiped out in a week joining me now is gina sanchez >> it has been a pretty depressing morning so far. >> the think the question for anybody who wmanages a portfoli, is this a buying opportunity or do we need to worry about the future of the mega cap tech stocks >> look, there are two answers to that question the first is what are the valuations that will survive the

no normalization of rates the fed will review and the rate hikes have bitten in the economy. it may continue to go higher that will kill valuation for the tech stocks. on the valuation side, i would not look to ever return to where we were when we were at zero interest rates on the flip side, there is still long-term stories that are still real you know, you talked about aws and the miss remember that that story is enduring and continue to drive the economy for the next decade or two decdecades. the story still remains. the question is what is it valued you have to go back to the valuation school and figure out what fair value is. >> we talked about amazon and disappointment in aws.

this may be the bottom the global slow down and a lot of demand pulled forward logistics business is pretty strong let's talk about another business that is strong. apple. macr revenue is better than expected what do you make of the report from apple >> so i think that the report on apple is just showing or revealing the weakness that you are hearing in other companies as well that there is spending weakness that is hitting if you look at how the consumer was spending going into the latest numbers, they developed a lot of savings during the pandemic and spent on the savings. they started building up credit card balances and now we're starting to see lower and lower spending as people are starting to feel the pain of what interest rates are doing to the credit card levels. >> we are all concerned about that when it comes to apple, there

was a week or eight days of iphone 14 sales in the quarter what do you think will happen in the holiday quarter? people buy or gift mobile phones do you think we will see a big jump in iphone 14 demand >> i think apple sales right now are overshadowed by the broad p pull back in spending. i think the spending data will be interesting to watch. the expectations going into the holiday spending season are not very good. that came from amazon. you have to think apple is going to suffer from that as well. will they be able to recoup it later? it is hard to say. you are actually seeing quite a bit or fewer job openings. you are seeing a hit to the american spending capability apple will have to experience that to some degree. i'm not sure you will get it back in another quarter. >> something to watch. gina sanchez

thank you for being here on "worldwide exchange. when we come back, why a rough quarter and outlook for amazon is not just keeping my next guest from owning the stock. and big tech's pain is big oil's gain and a disconnect as the government rushes to fill orders ahead of the i-bonds a very busy hour when "worldwide exchange" returns. shment, the sale of a business, or an important event for their family. for them, it's the first and only time. we have seen this literally thousands of times, in thousands of iterations. ♪ ♪ i am vince lumia, head of field management at morgan stanley. whether that's retirement, paying for their children's college education, or their son or daughter getting married, our financial advisors need to make sure that they are making objective decisions, every step along the way.

every time you hit a milestone, an anniversary, a life event, the emotions will run high. making sure that you have somebody, a team of individuals that have seen it before, have seen every circumstance and seen every challenge, and have your back when you need it most, is one of the most valuable things a financial advisor could provide to a family. i am vince lumia and we are morgan stanley.

welcome back to "worldwide exchange." chevron and exxonmobil set to report today revenue after both companies crushed estimates last quarter exxon and conocophillips and marathon all trading at record highs. for more on what to expect, let's bring in jeanine wai at barclays jeanine, good morning. >> thank you for having me, frank. >> the question is exxon reported the highest profit in history. $18 billion. are we expected to see similar results this time? >> we are still expecting strong results here we are about in line with c consensus of eps

oil is down $15 quarter over quarter. that will go through flow through the numbers. excuse me. >> it's early. we are all making mistakes what we are waking up to are oil prices ticking higher since the opec production cuts people are saying milder weather in europe and natural gas decline in weeks is that trend continuing or is that depending on the weather overseas >> we are going to see volatility there and softness. in europe, when we look at the gas supply situation there, they are what they need to be on storage for the beginning of winter that is because europe really fills storage at any cost in preparation. we are seeing lng tankers offshore readying to unloaded. it is a call on weather at this point through january.

>> it is weather dependent looking forward. energy is the place you want to be a lot of places we have seen growth do you still continue to invest in energy with the gains do you believe it is sustainable and constructive investment and good return going forward? >> we think it is still a sector you can invest in despite the fact that energy is up over 60% and the market is down 20% this year we remain constructive for two reasons. the first is we still have a very positive view on crude prices we think brent will average $100 this year and $98 next year. second is valuation doesn't reflect where oil prices are on average for upstream on coverage list, stocks are pricing in about 67 on wti which is still a large 20% discount from the forward strip we think there is still a lot of value. >> jeanine, can you give us your

picks in the oil sector? >> our top pick is conoco phillips we think it is a big liquid name which a lot of investors are looking for right now given the volatility in the market and volatility in crude prices it is one of the unicorn names to move to the upside with oil beta because the company is completely unhedged. they have a lot of oil exposure directly as well as indirectly through the lng operations that are linked to brent on pricing balance sheet is a force we think cash returns are strong and average to above average for this year and next year. management is very strong. we think cash returns will continue to be very strong next year 55% of cfo they will end at $9.5 billion on cash it is checking all the boxes there. on the valuation, it is still

trading on meaningful upside. >> conoco. jeanine wai, thank you >> thanks, frank. still on deck on "worldwide exchange." bucking the big tech beatdown. one stock that is higher ahead of the open. the name revealed when "worldwide exchange" returns check out the mystery chart. dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones

(woman vo) sailing a great river past extraordinary landscapes into the heart of iconic cities is a journey for the curious traveler, one that many have yet to discover.

exploring with viking brings you closer to the world, to the history, the culture, the flavors, a serene river voyage on an elegant viking longship. learn more at viking.com nurse mariyam sabo knows a moment this pure demands a lotion this pure. gold bond pure moisture lotion 24-hour hydration no parabens, dyes, or fragrances gold bond champion your skin welcome back to "worldwide exchange." time now for the big money

movers we start with shares of intel up 4.5% after the company delivered up to $10 billion of cost savings and improvements through 2025 the chip maker reporting the latest quarterly results beating top and bottom line. ceo pat gelsinger says the company is planning for uncertainty through 2023 the mystery chart is pinterest after the top and bottom line results. sales up from a year ago the company says operating expenses should grow about 35% this year. and shares of gilead science urging higher after the third quarter beat the company issuing up beat earnings in guidance that stock up 19% since august let's get a check on the other headlines with nbc's frances rivera in new york with the latest happy friday, frances.

>> frank, good morning let's start with breaking news hawaii officials are warning residents the largest active volcano is showing signs of eruption there has been a spike in earthquakes at the summit. the last time it erupted was in 1984 experts say it will take a view hours for lava to reach homes on the big island. the record powerball prize is $800 million for the 11:00 p.m. eastern drawing tomorrow night. you can play for the nearly $308 million cash payout. it followed 36 drawings where the grand prize went unclaimed it would be the second largest pool in powerball history and fifth for any u.s. lottery after both teams got a few days off, the world series is set to start justin verlander takes the mound for the astros who are back in the wfall classic

he will be in the pitchers duel with aaron nola. first pitch is after 8:00 p.m. from minute maid park in house. and no american born black players are expected in the lineups. dusty baker said the league needs to do something to set an example for young black baseball fans he is hopeful in the future of baseball and its representation. frank, back to you on this friday >> thank you i am hopeful for more black players. i'm hopeful for the phillies i'm not saying the astros are cheaters straight ahead on "worldwide exc exchange" tech stocks are taking a tumble is now the time to jump in check us out on apple or spotify or other podcast apps.

"worldwide exchange" will be right back introducing the new sleep number climate360 smart bed. the only smart bed in the world that actively cools, warms and effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number.

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

welcome back to "worldwide exchange." amazon capping off a brutal week for big tech as that stock is set to shed $140 billion of value at the open. it is official elon musk takes the reins at twitter forcing the old guard out the door it is friday, october 28th,

2022 you are watching "worldwide exchange" here on cnbc welcome back happy friday i'm frank holland in for brian sullivan it is 5:30 a.m. in new york city futures are in the red across the board. nasdaq is the hardest hit. hit by the big tech earnings we want to pay an tttention to bond market. 10-year treasury ticking above 4% right at 4% this morning it was just a few basis points below. investors taking another look at the gdp report that led bond needs to decline yesterday let's hit oil. oil prices are on the move wti and brent crude about $5 higher than a montonth ago wti down more than 1%. let's get the check on asia.

joumanna bercetche is in the london newsroom with more. good morning, joumanna >> good morning, frank the selling is continuing in asia you see behind me all of the boards are trading in the red. what a week for shanghai down 2.25%. hang seng down 3.76% the losses for the week are 8% the worst week since february of 2018 a lot of property stocks got hit after the chinese congress ended on sunday. nikkei in japan is down .90% the bank of japan meeting overnight with no change in rates. the reaction is negative in stock space. still above the 27,000 level which is significant there as for europe markets. the ecb rate hike. another 75 basis point hike. the reaction is negative today we had macro data.

the german gdp print for third quarter came in positive up 0.3% quarter on quarter versus e expectations of a negative one cac in france is down .50% higher than expected inflation numbers there. in the uk, the index is down .50%. some of the basic resources names dragging down the index. let me turn your attention to two names in particular we are focus oded on in europe. volkswagen with the company confirming the full year outlook as the revenue took a hit after porsche's ipo and suspending the activity in russia the company expects recovery in china and easing of the semiconductor supply chain issues another stock we have been following the last couple days

credit suisse near the top of the stoxx 600 recovering the losses from yesterday after it closed down 18%. as a reminder, they announced a exstrategic overall and reportea loss that was worse than expected the ceo ulrich korner said this. the news is more positive than yesterday. frank. >> a major down day. big turn around for credit suisse joumanna, did good to see you. let's turn our attention to the headlines with silvana h henao. >> therereasury department is n planning to move the rates despite record demand and web site problems. extending the current rate past november 1st would threaten the

operational integrity of the system sales of treasury series savings 1 bonds tied to inflation surnld surged ahead of the deadline with record traffic. investors have until 11:59 to place orders and receive confirmation. regulators are investigating whether tesla misled consumers about its advanced driver system known as auto pilot. the justice department and s.e.c. are looking at statements that tesla and executives made about the technology with regards to the function and safety auto pilot is the well known advanced driverless system and now standard on all new teslas more than 300 groups and national retail federation are asking for help to avoid rail

strikes that could put the u.s. economy at a standstill. this is after the second union voted against the agreement reached in september 6 of 12 unions representing 115,000 rail workers from union pacific and csx and norfolk southern and more voted to approve the deal all 12 need to sign off for ratification, frank. >> serious situation for the rails. i want to go back to the first story, silvana the rush for i-bonds i don't know what it says about the world that we are crashing the web site. >> i don't know what people are thinking like you said, who knows what the world is coming to >> silvana henao, thank you. story amazon and apple finishing off the week weaker than expected earnings

for the third quarter. issuing disappointing fourth quarter sales guidance amazon could break even in the fourth quarter the company reporting a slowdown in cloud growth and amazon web services the stock sinking in extended trading. it is now down 13.5% turning now to discuss is nancy tengler of laffer tengler and ivan feinseth of tigress >> good morning, frank >> ivan, don't say good morning. don't worry about it >> great to be on with nancy and talk about the two important companies. >> you are under stating that. i'll ask the same question nancy, you first is this a buying opportunity or should investors be concerned about the growth of the companies long term? >> frank, you now, that is the

question i've been thinking about it much of the night and anticipating my wake-up call this morning. i think this if you went back to 2008 and 2009, i just have to remember two purchases. one was starbucks and the other was disney if you bought either company then disney at $18 and starbucks at $4.50, it felt like a dumb thing to do. you would be up in line with the market about 450% for starbucks, i'm sorry for disney, and $2,000 for starbucks. it is a long htime horizon i think amazon's problems are usual. consumer growth is cyclical problem with the recession i think the question is the cloud. we heard weakness from microsoft

and now we are hearing weakness from amazon. i think the question is is that management tightening like i'm doing or is that a crack in the cloud story? i think it is the former i think you think there is no hurry. they will not improve productivity in the fourth quarter. the companies are stressed in q4 you have time. it is an opportunity that you want to get a stock every 10 or 20 years sp >> ivan, same question sdplchlt sdplchlt >> i agree with nancy. i think amazon, first of all, i disagree with the slowing in the cloud. you may have a pull back because companies are cautious going

into the environment where we see a significant economic pull back the ongoing migration to the cloud has a long way to go what the cloud is today will be very different in the future and offer a more high powered connectivity and processing and constant integration of a.i. and machine learning to maximize companies data and information as a long runway amazon and aws will be a major part of that i think there is caution in i.t. spending which is causing weakness which looks to be some concern for the cloud, but i think we will see a shift when the economy starts to pick up and back to the ongoing transition to the hosted and hybrid and all types of cloud infrastructure that evenables companies. i.t. is the company's competitive edge.

>> one question investors are asking right now are we making too much amazon web services missing estimates or not enough of apple missing on iphone and service estimates? we talk about apple becoming more of a services company ivan, you first. >> yes, i think they are making too much of amazon missing and i think that apple's quarterly report was incredible. it was a slight miss on iphone revenue and services revenue most of the iphone miss had to do with the fact that the iphone 14 just came online within the last week of the last quarter. so they really didn't get the full impact of the demand. also they had a tough time as most companies getting components and ramping up production the demand seems to be there the delay in iphone 14 sales has

delay in people upgrading services apple just announced a service price increase of anywhere from $1 for some of the basic services to $2 or $3 a month multiply that out from the all-time high of 900 million user base. that is $22 billion or $25 billion of additional revenue that will receive in the next 12 months the apple story is definitely in tact that really wasn't a miss. >> nancy, ivan doesn't think the revenue miss is a big deal we are talking about the amazon web services miss. which is more of a miss? apple or aws >> i think it is aw is s miss. i actually do agree with everything ivan said related to the cloud.

we sauw service come in now as a cloud provider they have a different function on the cloud i think this is a blip i think this is companies being cautious there was a time azure was growing at 90% this is a log of numbers a 30% growth rate of the major portion of the business is super important. i also think amazon is analogous. you have a leadership change leadership is being tested you have a company that really needed to cut costs. i think they demonstrated that, amazon, that is. with apple, it is important to point out what ivan did point out. it is really a supply constraint story as it relates to the iphone rather than demand. services follows that growth we said in the 2013 and 2014

period, people said it was a handset company. the margins in that portion of the business are huge and ecosystem is very important, i think, and should not be underestimated if you analyze that against amazon, i think amazon prime is going to surprise investors as we move forward. even i was watching thursday night football last night on amazon prime i think there's a lot of opportunity. it is a recalculation. just don't be in a hurry be disciplined if you have a three or five-year time whohorizon, this is the ti to pick stocks >> that's why you needed the wake-up call >> tough to go to sleep. >> we have to watch and see the faang trade continue after the earnings something to watch nancy and ivan thank you so much for being here have a great day >> thank you coming up on "worldwide

exc exchange." from changes to tax policies to the business owners. why do so many feel forgotten? we will go to washington to find out. check out the futures. nasdaq is the hardest hit. you see the dow jones industrial average also looking like they could open up 100 points higher after the win stakre stay tuned you are watching "worldwide exchange" here on cnbc to ensure more customers can buy more sherpa-lined jackets, you call ibm to automate your it infrastructure with ai . now your systems monitor themselves. what used to take hours takes minutes. and you have an ecommerce platform designed to handle sudden spikes in overall demand... as in actual overalls. ♪♪

- [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.

♪♪ ♪♪ ♪♪ be ready for any market with a liquid etf. get in and out with dia.

welcome back to "worldwide exchange." we're ten days away from the midterm election and as candidates storm the trails, a number of business owners feel forgotten. we have ylan mui with more on that story good morning, ylan >> reporter: good morning, frank. small business owners are warning they feel ignored this campaign season and making a push to get the priorities heard. in an open memo to candidates across the country this week, they wrote, small business issues are a rare bipartisan source of common ground. added owners expect clear policy proposals and solutions. the letter was led by goldman sachs small business initiative which hosted 13,000 graduates. the costs have gone up 60% in the past year.

he had to raise prices twice >> inflation is probably the scariest thing we deal with. we maxed out the ability to push the prices higher. so that's somewhat alarming. our margins continue to get squeezed and pinched internally. >> reporter: nationally, owners are seeking to modernize the small business administration and get considered for more federal contracts and access capital and invest in the work force and improve child care 86% of small business owners will plan to vote and they want their voices heard >> a lot of concern and interests here the question is why aren't politicians paying attention to small business owners? >> reporter: i think it is understandable because the issues that small business owners are worried about you heard from him inflation and supply chain and

health care costs he told me about. those are things which are universal across the country i think there is a bigger issue of the increasing polarization of politic its discourse and debate this campaign season has been around hot button controversial issues. the message from small business owners are the policies and priorities are things that can bring republicans and democrats together and pass in a divided congress they say both people who want to run for office and already in office should listen more closely. >> ylan mui, thank you have a great weekend. on deck, elon musk making big changes on his first day as the owner of twitter and the heads are rolling. he has a kitchen sink. still don't get it we'll be right back.

♪♪ hey dad, i'm almost out. i got you.

any questions, chris? all good, thanks maura! there you go, one new inhaler! nice did you get my refill too? maybe [door bell] here you go, sir. you're a lifesaver. have a nice day. healthier is managing all your family's prescriptions in one app. cvs pharmacy. healthier happens together power e*trade's easy-to-use tools like dynamic 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 welcome back time for the executive recap

three stories you may have missed this morning. twitter is now owned by elon musk the long anticipated sale has closed the first order of business is the firing the three key executives musk sent out a tweet reading the bird is free a rare social stock standout pinterest shares surging for the quarter. sales up 8% from a year ago. however, global active users are flat year over year. the operating expenses should grow 35% this year. t-mobile shares jumping in pre-market trading on the reported strongest jump since the merger with sprint in 2020. a busy day ahead for wall street as we close another week of earnings. economic data carbon monoxide c coming your way.

all due out at 8:30 a.m. eastern. october consumer sentiment and pending home sales at 10:00. chevron and exxon reporting this morning. today marks one year since facebook renamed itself meta platforms. the stock down 70% mark zuckerberg's net worth falling from $118 billion to a mere, air quotes, mere $37 billion. futures are red across the board. joining us is lizzie evans how big an impact will mega tech have just a short time ago, it looked like it could open up 100 points lower. that's the set up for you. thank you for joining us we appreciate you being here >> good morning, frank

thank you for having me. >> lizzie -- i can't get words out this morning little tired where are we going from here after mega cap tech disappointed, where does the market go from here? will we see an end of the year rally? >> thank you, frank. there's not a lot of good things you can say this week about tech if you think about where the s&p 500 is trading at 17.5 times e s&p equal weight is 14 times earnings mega tech is 22. we will see additional compression in mega cap tech it is still too early to rotate. could we see a year-end rally? i think it will be just that >> if we could see a year-end rally, it is probable. where would that leadership come from we are not seeing great results

from mega cap tech is this a unique buying opportunity? >> i think it is too early i think we will see additional compression in multiples we are seeing signs the market wants to rally somewhere between fed speak and higher interest rates. i think the market can rally on and if we see 50 basis points in december, which is unlikely, that could lead the market to rally. if we see a rally, it would be between 5% to 15% range. if you look at two other prolonged bear markets, great financial crisis and the tech bubble, during that period of time there were more than four 10 plus bear market rallies on the way to the bottom. you have to be selective frank, you and i have talked about high quality it is so important to focus on high quality which we believe is strong free cash flow.

you need to be selective i think energy and health care will do well it is too early for mega cap. >> we had ylan mui talk about the mid-term elections earlier a lot of issues on the ballot talked about how is that impacting ten days away impacting the markets >> that is a big question. it doesn't have a direct impact on the market. the market likes certainty we will see a bit of a rally after the elections. overall, the market will revert back to fed and interest rates and the mid-term elections generally a blip on the overall market >> so not a lot of people are interested in i-bonds today. we want to look at equities. can you give us your picks in the volatile environment >> thank you i like health care

i like energy. specifically with regards to health care. ci cigna. we like for three reasons. it is trading at a meaningful discount it slides under united health. it is 45% discount there's room for growth in both margins in revenue and shareholder friendly they are returning capital to shareholders $7 billion in buybacks this year they are increasing dividends. 12% year over year dividend growth up 30% and there is room to run there. >> also hitting an all-time high in general, the health care sector is where investors are going to for safety. universal health with the highest daily move earlier this week on wednesday since the start of the pandemic. shares of that stock up 25% week to date already. in general, do you think that's

one of the safer places to go health care and health care sector if so, there are different segments we have telehealth and hospital operators and different parts of health care? >> i think you need to be selective about the companies you are buying you need to look at those with strong balance sheets and cash flow and dividend pushing the volatility we had the same conversation about energy two months ago and look where energy is today you need to know what you own. >> lizzie evans. thank you. that does it for us on "worldwide exchange. "squawk box" is coming up next visibly diminish wrinkled skin in just two days. new crepe corrector lotion only from gold bond. champion your skin. you need a bed that's smart enough for both of you. the sleep number 360 smart bed senses your movements and automatically adjusts only from gold bond. to help keep you both effortlessly comfortable.

our smart sleepers get 28 minutes more restful sleep per night. the queen sleep number 360 c2 smart bed is only $999. ends monday. millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... see how easy it is to save hundreds a year on your wireless bill over t-mobile, verizon, and at&t. talk to our switch squad at your local xfinity store today.

good morning the bird is free

that's what elon musk tweeted after the takeover the twitter he is already cleaning house details straight ahead. amazon shares plunging after the company guidance came in lower than expected. we'll tell you about the numbers. two big reports in the next hour we hear from chevron and exxonmobil they probably made pretty good money. it's october 28th, 2022. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick along with joe kernen and andrew ross sorki