tami won't be surprised if the restless seattle monk detaches from america and vanishes into the same mountain mist from which he came. -- captions by vitac -- 5:00 a.m. at cnbc global headquarters, and here are your top five at fierchlt stocks coming off the first winning session in four, but we're still setting up for a noble accomplishment for the first time since a financial crisis. and third time's a charm as sam bankman-fried sets to depart do i sound like a broken record? first it's one more visit to a bahamian courtroom. elon musk breaking his silence, asking his twitter

users if he should step down. ukraine's president gets set to meet with president biden. and then later the house ways and means committee votes to release trump's tax returns, tapping off a years-long battle. this is wednesday, december 21st, 2022 you're watching "worldwide exchange" on cnbc. ♪ good morning, everyone i'm in for brian sullivan this morning, contessa brewer let's check on the stock futures after a modest session yesterday. listen, anything in the green at this point we'll take. s&p 500, we're looking for an implied open, up 25 points the dow jones futures up in a big way. 258 points and nasdaq, up 75.

it's been a historic year for stocks year to date, the dow, the s&p, and the nasdaq are down more than 9%. 19% and 32% respectively all on track for their worst year-to-date performance since 2008, the great financial crisis looming large in our minds once again. let's check on the bond markets now. the benchmark 10-year note is moving lower at 3.682% for the yield and the 2-year t-note at 0.23 yesterday moving higher, wti up nearly a percent brent is up a percent. and natgas up 3.75%. a quick check on two money moves this morning shares of nike are popping ahead of opening they're up 13%, topping

estimates for its most recent earnings quarter, even as higher costs squeezed the margin there. fedex is also moving higher in the early trade, up 5% it's cutting another billion dollars in costs on top of what it already set in december weak demands is eating into its bottom line in the fourth straight quarter. let's get a check on the overnight action in asia and the early trade in europe. boy, did we start with some big news from bank of japan yesterday. arabile gumede is standing by in our london newsroom this morning. arabile, good morning. >> it does come off interesting news out of the bank of japan, deciding to tweak the european control policy that was to kind of allow the yield on the 10-year japanese government bond to move around 50 basis points either side of its zero percent target.

they said this isn't necessarily a quintessential move or major move for the market in japan, but you've seen market reaction totally move in a total i will different direction. today you see tshane hieng composite up and the hang seng and nikkei then you see strength coming across the board here. even the ftse going up 0.8%. it follows the trade from yesterday out of the united states where it breaks a losing streak moving a lot of the market a little further forward than the cac. markets today reversing that negative trend seen in the previous trading session back to you korn, contessa. >> arabile, thanks for getting

us up to speed oversea says. we appreciate that let's get some of this morning's top headlines from silvana henao. silvana, elon musk news. >> that's right. elon musk says he will resign as ceo of twitter as soon as he finds someone, quote, foolish enough to take the job this is his first public comment since the topic. they overwhelmingly voted he should step down from his post earlier this week. musk says once a successor is found, he'll continue to run the company's software and server teams. ukraine president volodymyr zelenskyy is confirming he'll head to washington, dc to meet with president biden in a tweet hours ago, zelenskyy telling followers he's on his way to the u.s. and is looking forward to ongoing kiepgs between ukraine and the u.s. the visit coincides with the white house announcing a new

package of nearly $2 billion of a security assistance for ukraine, that will include a patriot missile battery. and the nfl is reportedly in advance talks to give youtube exclusive rights to its sunday nfl subscription package the deal could be announced as soon as today following the meeting of league owners they currently pay $1.51 billion a year for the package. >> it's interesting to watch this back and forth and to see whether these streaming platforms will get back a return on their investments. >> that's key to watch, yep. back on wall street, wall street trading higher on yesterday's first positive session in five. invests gaining additional insight into the health of the u.s. consumer and the broader

economy. micron, rite aid, and carmax entering into the trade. joining me now, number 92 on this year's cnbc financial 100 list congratulations to making it to that list for the first time jim, you know, i note that you left sort of what we are -- how we call it in the industry the wire house you left these big full-service brokerages in the great financial crisis of 2008 now we're seeing markets that haven't seen this point since that time. how do you view where we're heading in 2023? are you an optimist? >> i think we're always optimist thank you very much for having us this morning, contessa. being part of the top 100 is very important we're very proud of that achievement.

what we saw then is what we see now and they have to worry what's coming up next to them. we have to look at the finance thal chal situations they find themselves in. we totally focus on each client individually we really can't predict the future we're not economists, but we do focus on our clients and make sure that their life goals are accomplished. >> are you positioning your clients to weather a recession >> absolutely. not because we knew one was coming because we, you know -- many recessions are predicted. but in our intensive planning process, we assume that these things are going to happen, that there's going to be selloffs no one knew the pandemic was

coming, no one knew 9/11 was coming so our portfolios are diversified and we also have built in inflation into all of our plans. you know, i think if you are an investor and you're deciding now what to do about inflation or recession, you're behind the curve and you need to get a plan for yourself. >> are there particular sectors that you're avoiding, and are there sectors that you're leading into are you looking at small caps, large caps, mega caps? where do you think there are opportunities for your clients >> so, again, our key is diversification. so we don't manage any of the money ourselves in-house we hire the best managers in the class. as we go through our planning, we come up with the asset allocation, not based on what the market may or may not do, but based on the client's needs. yes, we have small cap, we have

large cap, we have downside protection in many of our portfolios we have alternatives that act differently than stocks and bonds. and, again, taking the emotion out of all the negative news that people see, we can stay with that allocation and don't have to make major moves or major sector bets at any time. >> jim pratt-heaney, a new adviser to the 100 list. appreciate it. >> thank you when we come back, it's departure day for sam bankman-fried as he trades a bahamian jail cell for one a bit closer to home. plus more on fedex and nike and what it means for investors heading into a new year. and later, tesla's horrible, no good, very bad year a very busy hour of "worldwide exchange" right after this

what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create ♪♪ for skin as alive as you are... don't settle for silver. harness the power of 7 moisturizers & 3 vitamins to smooth, heal, and moisturize your dry skin. gold bond. champion your skin.

as a business owner, your bottom line is always top of mind. to smooth, heal, and moisturize your dry skin. 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 60% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. it's official, america. xfinity mobile is the fastest mobile service. and gives you unmatched savings

with the best price for two lines of unlimited. only $30 a line per month. the fastest mobile service and major savings? can't argue with the facts. no wonder xfinity mobile is one of the fastest growing mobile services, now with over 5 million customers and counting. save hundreds a year over t-mobile, at&t and verizon. talk to our switch squad at your local xfinity store today. sam bankman-fried expected back in a bahamas courtroom on day three of the extradition the former ceo is now bankrupt the ftx is promising he will surrender himself to the feds. third time's the charm are we going to actually see this happen in nassau? >> it feels like this time is actually different, contessa

a bahamas official told nbc news he already filed his paperwork on tuesday that document is apparently with the courts right now the acting commissioner of corrections said he would be flying back to the u.s. today after the third hearing of the week wraps up. it's starting at 11:30 eastern it wouldn't surprise me if it's pushed back given how the last few days have gone his team is not anticipating further issues with the process. so if everything goes according to plan, bankman-fried will soon be on a manhattan-bound aircraft if the doj has the marshals and the plane ready, bankman-fried could be ready to leave. i'm not going to believe it until i see bankman-fried on a tarmac in new york. >> it seems like anything can happen if bankman-fried actually does get on a plane that is actually

going to manhattan, what is anticipated to be the process on u.s. soil? >> so once bankman-fried is on the ground in the u.s., there are a few different ways this could go ordinarily he would be taken to a detention center for processing before heading to a hearing. but if plans remain in place with a magistrate, the court could actually allow a hearing before processing. in that case, bankman-fried would head from a plane directly to a federal manhattan court that would certainly help to, pe diet the process the first hearing will called an initial appearance and it happens in front of a magistrate judge. it will also serve as an arraignment. it's a formal hearing, post-indictment. he'll be read his rights and informed of the maximum possible sentence it's a big question that a lot of people have, whether he'll be granted bail or sentenced to the

home that jeffrey epstein was. then the judge will make a determination regarding bond. >> all right mackenzie segalos clearly it would be a step up, right? >> yeah, i mean, as you said, contessa, they're notorious for their harsh conditions they flagged issues like overcrowding, poor nutrition, inadequate sanitation and medical care at the bahamas prison where bankman-fried has been living the past week. that being said the metropolitan center has a track record. we're talking everything from reports of roach and roach infestations, former guards convicted of raping an inmate.

this is the same facility where epstein allegedly committed suicide. it's a step up. >> it looks different on the outside, i'll tell you thanks. >> on deck. >> this is a sector whether you're invested in it or not, this segment affects everybody insurance. yesterday we looked a what could be a crisis in the making in california today we're talking insurance stocks what has been a wild ride in 2020 an20 2 2020 and whether there's smooth sailing ahead for these companies. "worldwide exchange" is back in a moment

why are 93% of sleep number sleepers satisfied with their bed? maybe it's because you can gently raise your partner's head to help relieve snoring. so, you can both stay comfortable all night. save $1,000 on the sleep number 360 special edition smart bed, queen now only $1,999. ends thursday.

of haves around have-nots for insurance brokerages arch capital group leads the way. it has risen more than 40% year to date. look at that 41.5%. w.r. berkeley, the big brokerage at 32% and car insurer progressive up 24% year to date aflac, travelers, and reinsurer everest re are also turning in notable performances in 2022 o'n o' other names have seen better days lincoln down 57% lemonade off 63%

hippo has lost 87% of its share price. and root down more than 90% year to date. let's talk more about this with andrew kligerman, manager of credit suisse. he covers insurance. andrew, we were talking a little bit about the car insurance. this has been such a tough year for them because they've seen their lost costs, how much they pay out in claims skyrocket more than what they predicted due to used car prices and the like why are allstate and progressive up so much this year >> yes, contessa so allstate and progressive are not up dramatically, but they're up two things, and they're very different. progressive has felt -- was so agile in the first half of 2021

figuring out that lost costs were spiking, figuring all this out and taking action while the others weren't ready now they're poised to take shafrm people like progressive because they've been so ahead of the curve. allstate in contrast felt the pressures of the industry with spiking lost costs, the car -- >> >> that is clearly an issue with our phone line. we're having technical issues this morning even in late 2022, these video zoom calls don't always work out the way we intend them to. turns out that videoconferencing is rather difficult. andrew, do i have you now? >> you do. i apologize.

>> no worries. so that explains the car insurers and then on the flip side, i mentioned that root, which is sort of the upstart, this ininsure tech. you know, they were trying to turn the model on its head and go directly to consumers it's faced a really tough year it talked about laying off a large percentage of employees earlier this year and downsizing its real estate footprint. what kind of a picture is facing some of these direct consumer -- unfortunately we're having some problems there andrew, do i still have you? >> yes, you do >> all right the other thing i wanted to mention as long as we're talking about insurance and this is the sector that i cover, is that reinsurance, it may be set to really outperform next year in part because the reinsurers have

way cut back their exposure to problematic areas like florida the cost for reinsurance, this is what insurers pay for their own insurance. the costs have really soared, and so what you're seeing is some of the reinsurers looking for 2023 that's good and the global brokerages. they say everybody's in demand there are buyers and sellers on both sides and they're gearing up for an optimistic 2023 when i talked to andrew earlier this week sorry it didn't work out. ahead, shares of six flags surging as investors welcome a new patron coming to its parks it's not the roller coasters they're after. first a quick look at shares of tesla this has been, folks, a brutal year for the stock, closing down another 8% yesterday you see it's up in the premarket. 2.5% set to open with a market cap below that of exxonmobil and

below 160 bucks a share in two years and even worse when you take a step back tesla is on track for its worst month, worst quarter, worst year in history, down more than 60% "worldwide exchange" is back right after this from one company committed to building a world that works, to three that will focus on a future that does too. this is ge healthcare, creating a world where healthcare has no limits. this is ge vernova, helping generate and move the energy that our world needs. this is ge aerospace, advancing flight for future generations. this is the next generation of ge. ugh, this rental car is so boring to drive. let's be honest. the rent-a-car industry is the definition of boring. and the reason can be found in the name itself. rent - a - car? you don't want a friend.

you want the friend. you don't want a job. you want the job. the is always over a. that's why we don't offer a car. we offer the car. ( ♪♪ ) sixt. rent the car.

well, stocks snap their

losing streak. futures suggest momentum may carry over. nike shares surging on the back of the quarterly results as the parent giant chips away at its inventory surplus. and fedex, despite softening demand and more cost-cutting efforts. it's wednesday, december 21st, and you're watching "worldwide exchange" on cnbc. ♪ welcome to wednesday, everybody. i'm contessa brewer in for brian sullivan this morning. let's get right to the markets now. stocks snapped their four-day losing streak yesterday. we've got futures higher across the board right now. the dow is notable at 259 points the nasdaq futures are up 69 and the s&p futures up 24. a check on some of the top stories this morning silvana henao with us now.

>> a congressional committee voting to release former president trump's tax returns to the public, the house ways and means committee says it will take a few days to remove sensitive information before releasing redacted comments. the tax records cover 2015 through last month after a three-year court bat toll obtain them over the former president's objections meta ceo mark zuckerberg taking the stand as part of the case to block his company's $400 million deal zuckerberg admitting yesterday his company is trying to shape the future of technology in its decision to buy the app rather than develop its own product it's the first under chair to challenge a consumer tech deal. shares of six flags are jumping following a report that an active shareholder is urging the theme park operator to sell or spin off its real estate.

according to "the wall street journal," land and buildings investment management, which has roughly a 3% stake in six flags has been in touch with the company about a move they believe six flags' real estate alone is worth more than its current market cap six flags market shares are down more than 48% this year, contessa. >> silvana henao, thank you very much we appreciate that. we're watching shares of fedex this morning, which are moving higher in early trade, even though it delivered more bad news to investors. look at. that it's up 4.2% in the extended trade it reported lower earnings and sales from a year earlier and warned of continued weaker demand disappointing results capped off a rocky year for its company and the ceo which earlier this year withdrew full-year guidance and announced massive cost-cutting strategy, one that it's doubling

down on in the knew year. >> the demands we saw at the end of q1 softened further in the second quarter, and we're moving faster and with more determination than ever to accelerate our cost actions. today we will provide more detail on those cost actions. >> year to date losses for industry rival u.p.s. pales in comparison to fedex, more than 33% decline. joining me now is bank of america securities research analyst, ken hex ter it's good to talk to you this morning. if you're watching shares moving high e sit clear that the cost-cutting measures at this point are more significant, that that news outweighs what fedex is warning about weaker emand? >> yeah. i think the key here we've seen is the weaker demands.

they're targeting 13, $14. i think what investors looked for yesterday is the company's detail on really taking a lot of costs out of this network. obviously it's managing its move to take some cyclical costs as the economy moves. i think investors really wanted to hear about some secular costs. i think that's what we heard a little bit about in terms of adding another billion dollars on for cost cuts this year, raising the targeted total up to $3.7 billion that's a pretty big and rapid move, faster than expect but it also indicated how weak things were. if you didn't do that, you would be another $3 million lower. so it's a pretty significant rapid move on how fast the economy is deteriorating

>> ken, what's your sense how much pressure the ceo is under filling these massive shoes left behind by this legendary former ceo? >> you know, look. fred smith was certainly a legendary ceo in terms of founding the kpaerngs building the company over the years but i think investors over the last decade or so really wanted to see an accelerating of precash flow it's something u.p.s. talks a lot about in terms of generating free clash and what they do wit it they focused on their ground network. replacing their entire air fleet is something fedex has been working on that's using a lot of cash as fedex gets closer to the end of its fleet replacement and admit they overbuilt on the ground, there's a chance to start generating cash i think that's what investors want to see t switch of securing

the network. they overbuilt that's why there's so much opportunity to pull things out. >> looking in hindsight, how do you see their decision to move on from amazon >> look. amazon is a huge buyer of freight, but also u.p.s. is facing a huge counterargument. 13% of your revenues were from amazon last year they're falling to less than 11%. a big focus for u.p.s. is how are you building small, medium-sized businesses to replace amazon as they move out. a move for them to choose it wasn't recovering costs, i thought that was a huge focus for the air freight industry to start charging for the quality of their network, and that's something that was really key was to focus on pricing. >> you have a neutral rating on fedex and u.p.s. and tfi you have buy ratings on a lot of

railroads you cover and transport. is there a broad theme you're extracting from these transport companies about where we're heading for 2023 >> if you go back, we downgraded virtually most of our coverage in april as you started to see the spot rates on trucking start to fall, roughly 34% without fuel with fuel 20rks% you see ocean rates go down. transportation rates, we don't make much. we just move it. i think fedex, you know, if you look at their data, express volume is down 12% freight and ground volume is down 9%. and accelerating for the first time in 20 years we followed them they're accelerating that tells you a lot about where they're heading right now. it's where we find the floor and base to find that inflection point. that's really important. in terms of the rails, they're one group that can show relative

freight outperformance you've got grain volumes up in canada, a huge grain crop, and you've got other things working as congestion works up that was a relative call i think within the call with everything going up. >> ken hoexter, i appreciate your time this morning happy holidays. >> thank you, contessa, have a great one. coming up, kayla tausche standing by with the top priorities for presidents biden and zelenskyy's one-on-one meeting when "worldwide exchange" returns. ♪ ♪ a cyber-attack can grind everything to a halt. cisco security keeps your company

moving forward. because if it's connected, it's protected. cisco.

with gold bond... you can age on your own terms. new retinol overnight means the smoothing benefits of retinol are now for your whole body. plus, fast-working crepe corrector

diminishes wrinkled skin in just two days. gold bond. champion your skin. 38 minutes past the hour time for your w.e.x. wrap-up sam bankman-fried has signed papers to pave his way for extradition from the bahamas to the united states as soon as today. court date set for 11:00 a.m. elon musk says he'll resign as twitter ceo as soon as he finds someone, quote, foolish enough to take the job that's alluring, isn't it. he said he'll continue to run twitter software and server teams. general motors is recalling 140 bolts saying the carpet

could catch fire the nfl is close to striking a deal with youtube tv for exclusive rights to the sunday ticket package the rights of that package have lock been held by directv. senators joe manchin and bill haggerty will propose raising the tax reporting threshold for transfers using payments services such as paypal and venmo. they want to raise it to $10,000. the current level is $600. the group of mat ishbia wants to buy the phoenix suns and mercury for $4 billion. on deck, katie stockton on the trend she's seeing in the markets and the red-hot sector she says is set to cool in the new year. if you don't already, why

don't you. follow the podcast if you missed "worldwide exchange," check out apple, spotify, or other podcast apps we'll be right back. ♪♪ for skin as alive as you are... don't settle for silver. harness the power of 7 moisturizers & 3 vitamins to smooth, heal, and moisturize your dry skin. gold bond. champion your skin. if your business kept on employees through the pandemic, getrefunds.com can see if it may qualify for a payroll tax refund of up to $26,000 per employee. all it takes is eight minutes to get started. then work with professionals to assist your business with its forms and submit the application. go to getrefunds.com to learn more.

gearing up for the trading day ahead, we get home sales and consumer confidence figures. we get figures from others and we're excepting the january 6th committee to release its final report on the attack on the u.s. capitol. in washington, dc, we're watching a developing story this morning. details emerged last night in what's described as a high-stakes meeting, volodymyr zelenskyy meeting with the president at the white house today. katy tausche joining us. this was a surprise visit in that it wasn't publicly known he would be coming. what possibly could be on the

docket for president biden and president zelenskyy? >> well, contessa, this meeting was kept very close hold it was just confirmed in row cent days. this is president volodymyr zelenskyy's first time setting foot outside his country in the 300 days since the war in ukraine began. planning for the visit confirmed by u.s. and european officials and nbc sources coming in the wake of congress authorizing nearly $45 billion in new aid to the country as part of that wide-ranging spending package that's drawing some republican criticism and as the u.s. is set to send a $2 billion patriot missile defense system to the country, a move russia's foreign ministry has said would represent an escalation in the conflict zelenskyy will hold an extended meeting with president biden, meet with biden's national security team and his cabinet segments, and address american reporters at a press conference before delivering an evening

speech before a joint session of congress the visit lasting just a matter of hours before zelenskyy and his delegation will return to ukraine. house speaker nancy pelosi sent a letter to lawmakers yesterday requests all members be physically present at a wednesday evening session she called a very special focus on democracy. zelenskyy has appeared often in front of leaders and lawmakers of western nations and the private sector but has done so virtually. he declined to leave or be relocated earlier in the conflict over fears of a coup. the two countries confirmed the visit on sunday, according to a senior administration official, who said that president zelenskyy personally signed off on the security protocol presented by u.s. officials with nbc news reporting the state department, capitol police, and emergency management personnel conducted walkthroughs on tuesday, and the senior administration says the timing of this, contessa, should not be

seen as suggesting that the end of the war is nearing. >> no. and i would think if we're sending $2 billion in heavy high-tech defense equipment that represents an escalation, it's an indication that senior u.s. officials believe there's a lot more work to do. you mentioned that republicans are balking at the amount of money that has been set aside for ukraine in the spending bill is it the entire spending bill that's a problem for them or the amount of spending with ukraine in particular? >> well, it depends on who you ask. certainly a lot of the public rhetoric even around ukraine has suggested that irchd the new congress in january, there will not be a blank check but even some of the members who have said those comments like the expected house leader kevin mccarthy, he then moved privately to assuage some of his colleagues that he would not be moving to withhold any of that spending and when a senior administration official was asked whether

zelenskyy's message would be, you know, more targeted toward republicans and suggesting that this aid needs to continue, the officials said, no, the aid will be directed squarely at russia and it's the expectation even the new congress aid will continue to flow and it will continue to be bipartisan. contessa. >> when you look at the fact we're approaching the one-year mark of the start of this invasion of ukraine by the russians, what do you get the sense that the appetite is in the white house and on capitol hill, kayla, to give ukraine the firepower it needs to definitively move this particular conflict beyond the back and forth, the back and forth that we've been seeing >> i think there is still a lot of appetite, contessa, to continue sending this artillery, this weaponry, this military equipment, especially because they're seeing results on the ground with ukraine's military there were some reports in recent weeks that the u.s.

suggests perhaps ukraine would have the opportunity to retake crimea, peninsula. of course, russian forces took it over back in 2014 essentially signaling the beginning of this conflict a very long time ago but now there's a belief that ukraine has real military might and that is coming on the back of some of this western fire pow their it's receiving if fact that they're giving it, they're hoping to see results from that, it's worth noting coronation tell say, the senior officials says ukraine's military will be training on the defense systems in a third country and then be moving those systems, that battery of missile defense systems back into ukraine so that russia hopefully won't be able to say, you know, this is a nato incursion into the conflict but i think so long as they're seeing results, they will continue to do that. >> kayla tausche reporting on this developing story for us we'll be keeping an eye on

washington, dc as that visit and that session of congress happens. thank you, kayla. back to futures now, popping after a few days of trading session left for the year. katy, good to see you. let's do a little rapidfire, right? let's get out on the macrolevel. how do you see the closing out of 2022 and the ushering in of 2023 for the global economy and for these big headwinds that we have faced this year >> i mean, we're so close to year end everybody's talking about the santa claus rally. we need to look past that i think we'll probably see firmness through year end and yet a lot of volatility is in store for us in january to start off the new year i say that in part based on the posture of our short-term indicators, which as you can imagine are pointing lower, very

similar to after the summertime relief rally we also had resistances intact for individual indices and individual stocks. we have a short-term breakdown in apple stock, which is the bellwether and the vix which is a way we can harken back to 2008 where it looked at a volatility spike. we're bracing for more risks to start off the new year, but yet we think the downdraft we're expecting where 3500 is retested by the s&p 500 could actually give way to some kind of major low. >> it's notable that you're among the many guests that i've talked to on cnbc in recent weeks who keep bringing up gold as a save haven. >> right i mean it has really turned the corner of late we've had it improve, reversed a

downtrend that had been in force for some of this year, and the relative performance has turned as well versus the s&p 500 there's a gradual uptrend and ratio of goal to the s&p 500 that to us suggests that as we see this kind of volatility expand, that gold will become something that draws people in and other precious metals would apply there as well. when you look at the long-term reading that gold is reacting to, it's a bit higher conviction in the long-term they oversold in the equities. that's because gold is in a range as opposed to a down trend. that's when the oversold conditions tend to be a higher bit of problemn't. we're looking for it to clear in near-term resistance in the coming weeks with an initial target of 1900 per ounce. >> let me drill down on news we got late yesterday after nike reported earnings. we're seeing shares soaring on the back of their second

quarter, top and bottom line beats. but higher costs squeezing the margins, inventories up year over year. they were slightly down from a quarter ago. it looks like they're making slow progress on managing inventories. the thing that i thought was really notable here, katy, nike said in its digital segments, it's seeing so much progress because customers are signing up to be members. the way you would be for an airlines reward program. it's really notable. >> right and it's nice to have some good news and favorable reactions out there because we haven't seen much of that of late unfortunately, though, nike's stock has been a longer term underperformer and with this bounce slightly today on the back of this news, nike is going to come into the resistance on the chart. it's around 118.5, so slightly below where it's been up this

morning, but it creates a proving ground for the stock because it is in a down trending very much like the broader market what i feel is it's so, so strong here, that as much as you can make a fundamental case, there is that challenge, right even if folks feel confident in nike's prospects if it's a downtrending market, it creates that much more of a hurdle for nike. i'll be interested to see if it can get through. >> shares up 12.5% stocks, too, we're watching shares of tesla. this has been a brutal year, closing down another 8%. tesla is set to open this morning with a market kap below exxon more bill and below $30 a year it's on track for its worst month, its worst quarter, its worst year

katy, could this mean an opportunity to get into tesla and have a historic buying opportunity? >> it certainly could, but there's no support in line we have to respect we've seen a series of breakdowns for tesla, and this stock clearly exhibits negative momentum across all time frames. so i wouldn't want to be the first one to try to pick up the shares at low levels i'd rather see tesla enter at a bottom progress says in other words, it sticks at an initial low and then it see as series of tests at it. and then you look at momentum of the indicators as the price goes sideways we're going to wake for the positive die very judges to close for tesla. maybe we capture something closer to that with a lot less risk i think the risks are very high here. >> the mega caps have received

so much attention for being under so much pressure in 2022, but i looked through your predictions based on the technical heres, and it looks like you think small caps end up being the laggards going into the new year. >> it's funny because usually you would expect small caps to outperform this time of year they're sort of like a tax-off selling. they call it the january effect, and yet we haven't seen that manifest itself yet in the markets at the ratios and things like the ross 28 2 0u index we're looking for it near term and looking for underperformance by the mega caps i think that's mean important because it means that the downside leadership is concentrate and really impacting market sentiment especially as it pertains to am's stock. if you look at apple's stock,

short term it has a breakdown. if you zoom out and look at the monthly bar chart, a very longer term view, you'll see it looks still quite topee. conversely, the small caps for the most part had been trending lower for nearly two years so some of those are a bit more oversold, they have better support discovery. they could be closer to a low than some of the mega caps >> for how long should investors keep their seatbelts ready to go and boo be prepared for the bumpy ride to continue >> i've been saying to clients praps end of january, beginning of february for the volatility or spike event that we're anticipating listen, we always change with the market we're constantly watching things, and we simply want to stay on the right side of the market, and if the market changes, we'll change with it.

if we had to look at our accoaccoun -- indicators when it would be more likely, it would not be till march or april until a long-term spike reaction. >> katie stockton, so good of you to share with us the benefits thank you. that does it for us on "worldwide exchange. enjoy your wednesday "squawk box" is next power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the market. if you run a small business, you need the most from help every investment.ades that's why comcast business gives you more.

more innovation... with our new gig-speed wi-fi, plus unlimited data. more speed... from the largest, fastest, reliable network... and more savings- up to 60% a year on comcast business mobile. all from the company that powers more businesses than any other provider. get started with fast speeds and advanced security for $69.99 a month for 12 months. plus ask how to get up to a $750 prepaid card with qualifying internet.

good morning, stock futures are jumping. straight ahead. ftx founder sam bankman-fried could be back on u.s. soil as soon as this afternoon. we'll tell you what happens

next. elon musk responing to the twitter poll that he step down he said he'll resign as soon as he finds someone foolish enough to take the job. it's december 21st, 2022 winter solstice. a bit longer that's good. "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 squafrmt i'm becky quick along with joe kernen andrew ross sorkin is on vacation this week, so we'll check in with him next week. as joe mentioned, it's the winter solstice. that means the shortest day of the year. >>