tv Worldwide Exchange CNBC January 10, 2023 5:00am-6:00am EST
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it is 5:00 a.m. in new york. here is the top "five@5. tech stocks finding love the sector is hot to start the year can that last? chaos in brazil. the new president vowing to take action against proper testers w stormed the capital. and coming from mexico's president with a tense moment to president biden. and the holiday meltdown continues as one big investor demands answers and how to avoid
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another similar mess. microsoft weighing a major investment ai it is all happening on this tuesday, january 10th. this is """"worldwide exchange. good morning, good afternoon, good evening welcome from wherever you are watching i'm brian sullivan great that be back with you. i'll be here all week. all right. if you went to bed early and thought you missed a really exciting and really big national championship football game don't worry. you might have missed a game, but you didn't miss much the georgia bulldogs absolutely destroyed tcu 65-7 the game was not close after just the opening minutes georgia, the first back-to-back national college football champs, under the new format
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congrats georgia to some of my friends down south would say dawg eat frog. ncaa you have work to do. let's see how your money is doing. futures lower right now. down a couple. nasdaq actually maybe a bit higher which is the trend starting from yesterday. if you want to call it a trend dow ended monday lower the nasdaq posting a second straight day of gains. some beaten up tech stocks got bought up and coming up, that is a bonus rbi. the actual rbi is back which has an interesting nugget on the first five trading days of the year and what they may signal for the entire year. i'll tell you about that coming up in the bond market, 10-year treasury is 3.55%. the 10-year treasury is the most inverted in decades with the
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three months three months, ten years. something to watch watching oil oil prices are flighat to higher by the way, my predictions for the year are back and we do, of course, have a view on oil and natural gas. they might surprise you. those are coming up. take a look at cryptocurrency. bitcoin above the $17,000 mark. that is happening stateside. let's go across the pond to arabile gumede in the london newsroom arabile, good morning. >> brian, let's look at the market if we start off in asia, just like the georgia bulldogs and what they did to tcu, we started the week on a bull run we saw them go quite good and that was because of china reopening as an issue around inflation. you saw that perhaps things might be looking up a lit bit.
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you had a weaker dollar which sized things up for the asian market today is not moving in the positive direction nikkei up .7.75% on that front interesting is the likes of the paxlovid manufactures in china questions in that actually will happen asian counterparts looking to head west to find vaccines for covid-19 as cases ratchet up in that part of the world key questions on the european front has been the inflation and recession questions. we are seeing consumer price data set to come out of the united states and what it will mean for the market will be interesting. we are expecting a little bit of negativity yes, it is a fizzle coming out of the european markets because of what we saw just last week with the market really gain quite a bit in this new year blitz. that is beginning to fade. inflationary worries and
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recession fears sticking its head we are seeing the market drop off slightly particularly the smi in switzerland going out .30% brian, to you. >> arabile, see you tomorrow you have to bring green on the screen for us tomorrow we have a lot of red this morning. we appreciate it thank you. there are also big updates on tesla and the southwest airline travel nightmare where christmas and new years were the headlines. silvana henao at hq with those >> good morning, brian let's start with the federal government probe into tesla auto pilot system is moving really fast according to the head of the nhtsa. the agency opened the probe in 2021 the investigation is described as extensive the agency is investing resources, but refused to give a
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t timeframe on how long the investigation would take. the meltdown from southwest is calling investigation into the investor according to reports, the new york state comptroller has written to southwest asking the carrier to explain how it plans to prevent an operational collapse like the one that stranded thousands of passengers during the christmas holiday the letter stressing southwest's ability to attract customers and retain employees is one of paramount importance. microsoft is in talks to invest $10 billion in open ai. that is the creator of the chatgpt application. the plan which has been under discussion for months calls for the tech giant to put the money in over multiple years final terms may change chatgpt has been ballooning
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since the end of november gathering 1 million users in the first week, brian. >> 1 million users in the first week >> i have seen reports where students are using it for cheating i don't know. >> listen, if they are, they will get a rude awakening. everybody will have the same wrong answers. >> exactly >> the reference is more my generation max headroom i feel it might be coming. silvana henao, thank you max, max, m-m-m-max. now to the situation in brazil with 1,000 people detained with protests on the capital of brasilia. the government is looking no the investigation of former president bolsonaro who stormed the congress and other buildings over the weekend and including who helped finance the attack.
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the newly minted president lulu will not act in an authoritarian way. lula is the former president and also served time in prison for corruption authorizing intervention in the district until the end of the month in the meantime, former president bolsonaro has been released from the florida hospital he lived in florida since leaving brazil at the end of december he was admitted for stomach pains over a near fatal stabbing on the campaign trail in 2018. president joe biden is facing pressure to remove bolsonaro from the u.s. in the wake of the attack on the brazilian capital. speaking of president biden, he is set to meet with counterparts in mexico to sit down with leaders of that
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counci country and canada to talk about supply chains and other issues we have brie jackson joining us with more on what we can expect from the summit. brie >> reporter: brian, president biden is facing criticism for the first trip to the u.s. border with mexico some opponents say it was nothing more than a photo op president biden meeting with mexico president obrador for key issues including the migrant crisis and stopping the flow of illegal drugs across the border. >> i wish we could have one focus. only one focus we have multiple foci. >> reporter: on the first day in office, president biden sent congress his administration plan to provide a legal pathway to citizenship and strengthen border security.
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it has gone nowhere amid republican open on significance. >> ask to take another look at that legislation and act on it >> reporter: house republicans now hold the majority with kevin mccarthy taking over the speaker gavel and the party passing a package of rules monday that will govern how they run the house over the next two years. >> that was the real goal of the changes to open up the process and let members of congress represent. >> reporter: the gop is also moving forward with its agenda it includes launching investigations into the biden administration and undoing democrats expansion of the irs >> for republicans to allow the american people they are saving something by doing this -- all they are doing is crashing the economy. >> reporter: the gop bill will face road blocks in the democratic controlled senate and today, canadian prime minister justin trudeau will join biden and obrador for key
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issues on trade and climate change and, of course, border security brian. >> we have the summit today for the president. what about the rest of the week? where will he be what is the agenda >> reporter: president biden is back in washington this week on friday, he is expected to hold a meeting with the prime minister of japan. over the weekend, the president will head to atlanta, georgia to attend a worship service at ebnezer baptist church he will deliver remarks amid the worship service celebrating the life of dr. martin luther king jr >> brie jackson in d.c good morning. we are just getting started. when we come back, potential positive signal for the trading year ahead what the first five trading days of the year mean for your money. plus, much more on the brazil capital attack and
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political volume actuatility mer investing. and the latest on the ftx fallout as another ally of sam bankman-fried chirps to investigators. we're back right after this. 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 i count on personalized financial advice from my ameriprise advisor. she knows my goals and can help me reach them with confidence. the markets may fluctuate but you're still on track. more than 9 out of 10 clients are likely to recommend us. ameriprise financial.
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it may matter. the old wall street adage the market will end the year higher if stocks perform well in the first five sessions. doesn't always happen. old things on wall street. well, if that's true, that's good news because all three indexes gained more than 1% so far in the first five days call it random but important with that, the s&p has ended th year positive 83% of the time it finished the first five trading sessions up. average gain of 14% of the year. that means 17% it did not end the year higher. let's talk about that with david rea. number 6 on the 2022 financial adviser 100 list david, i love that kind of stuff. random but interesting my guess is that's not your comfort talk to your clients who
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are nervous over last year don't worry. if my knee hurts when it rains, markets go up. it is still a little bit historically comforting or no? >> sure. you search for anything that is comfortable in the moment. absolutely yes. i would much rather up the first five days than heading down. >> yeah. i suppose if you want to find comfort, it is better we did than we didn't it may not happen. are you surprised by, and we're not making too much over a couple days, but we ended the year weak. are you a little bit surprised by how we started the year at all? >> i know. i'm chuckling because i've been doing this 40 years. i don't get surprised by a whole lot any more i had no expectations with the first five days would bring us and wouldn't be surprised with the next five days i don't
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think. >> yeah, the only reason i bring that up and i agree, david, i said the calendar change is nothing like flipping one cal calendar nobody uses calendars. you get my point i do believe from guests and talking to people, we had a lot of tax selling at the end of last year. there actually might be a little bit of a calendar impact this year that might -- i'm trying to come up with a reason why things may flip, not just because we started writing a different date on our checks. >> sure. there is always -- most of the clientele are high worth individuals. we would sell at the end of the year that could be a reason why the first few days of new years are awesome. often do well.
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certainly. there could be the technical reason for that. >> yeah. all right. what's your outlook for the year and what are, if you had to say the one or two key things you would put in your bullish and bearish camps? >> outlook for the year, i think is things will be fine again, we're very long-term investors. we've held some stocks for decades at our firm. no way to know what's going to happen in the next, for us, in the next 6 to 12 months. we know the market will probably turn up before the economy bottoms. whether that is next week or in july, don't really know. the long-term trends are really
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good you know, if you want to garner 10% returns from stocks in the long run, you have to be -- you have to be willing to take years like last year when they were down 20% i think earnings are still going to be pretty good. we are probably going to have some definite slowing of the economy. i think the macro signals that we see are already indicating a slower economy we may have a recession. we may not you can look around and if you have some cash, there are some good sectors to look at. you asked also about headwinds on the flip side there are things to worry about. we still have an ongoing war in europe and covid and china reopening. we could have a policyerror if
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the fed pushes too hard. we may have a slowdown in earnings as always, there are headwinds and tailwinds. we tend to stay invested through those. >> probably to your point, the biggest tailwind of all is time. cash and time are your friend in the market 100 years of history told us that david rea. i appreciate your view calming influence there. serenity now david, thank you have a great day >> thank you, brian. >> namaste still on deck, your morning rbi is back. some may surprise you. we're talking markets and oil and gas and even something about europe which maybe flips things on its head. we are starting to see futures turn up a bit. at least for th.ec we're glad you're up and we're back right after this of the --
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♪ 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. welcome or welcome back. let's step out of the markets and check on the other headlines. including president biden under heat for classified documents being found outside a secure area phillip mena is in new york with that good morning, phillip. >> brian, good morning classified documents discovered in one of president biden's former offices from his time as vice president under obama the discovery coming to light
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now was made on november 2nd less than a week before the mid-term elections the documents were found locked in a closet by his attorneys clearing out office space at the penn-biden center. the white house counsel office notified the archives who took possession the following morning of the materials mr. biden only became aware the classified documents were there when he was informed by his lawyer whoss who found them mr. biden is cooperating with the archives. deadly cyclones are battering california president biden declared an emergency from the damage of the storms the rain caused flooding and mudslides and rock slides across the state. after a pair of nail biting semifinals, the championship game was anything but. georgia stomped through 600
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yards of offense stetson bennett ran for two touchdowns and stormed for 6 georgia steam the rolls tcu to w win 65-7 the bulldogs are the first since 2011 and 2012 to win a back-to-back championship. brian, i thought it would be a game and tcu was down in the third by five touchdowns >> i tapped out when it was 10-7 next thing i knew it was 38-7 i was in california over the weekend. the tcu fan walked in my hotel as the georgia fans walked out one georgia fan, before the
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game, goes dawg eat frog it is funny and it wasn't wrong. >> that is what happened yesterday. my goodness. >> by the way, don't eat horned frogs. wearing his tcu colors this morning. phillip, thank you on deck here on "worldwide exchange," apple ready to make changes on its most popular ga gadgets. it has nothing to do with software or design we'll explain next [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪ ♪ dreaming is free. ♪ accenture, let there be change.
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just look around. this digital age we're living in, it's pretty unbelievable. problem is, not everyone's fully living in it. nobody should have to take a class or fill out a medical form on public wifi with a screen the size of your hand. home internet shouldn't be a luxury. everyone should have it and now a lot more people can. so let's go. the digital age is waiting.
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gearing up for the fed chairman jay powell set to speak overseas it could move markets as stocks keep going brazil cracking down for protests on that country's capital. prompts questions and concerns of investing in the emerging market. and president biden in mexico we layout what's on the agenda to what led to a tense moment with mexico's president. it is tuesday, january 10th. you are watching "worldwide exchange" here on cnbc welcome back i'm brian sullivan good to be back with you i'll be here all week. thanks for getting up on "worldwide exchange. it is just 5:30 a.m. on the east coast. here is how the stock futures
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are shaping up we are looking to keep going to the good start of the year pr markets up 1% in the first five trading days if you missed it, historically it does mean good things for the year doesn't mean it will, but historically, 83% of the time first five days are up and the year ends up we have to wait 354 days to find out if that is actually true dow futures down 63. nasdaq futures are in the green. nasdaq has been the hotter of the indexes this year. there's your markets we'll get more in a moment let's check on the other headlines in business. silvana henao, what is happening? >> brian, let's start with this. house republicans hit the ground running following the week-long fight to elect kevin mccarthy as speaker. they passed a measure to repeal most of the funding boost for the irs that president biden signed into law last year. this was one of the key campaign
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promises by the house gop. the bill is not expected to see a vote in the democratic controlledsenate shares of broadcom taking a hit following a report that apple is working on its own modem chips bloomberg says apple the plans to release the first chip at the end of 2024 or early 2025. apple accounts for 20% of broadcom's revenue. another top lieutenant at ftx may look to strike a deal with federal prosecutors bloomberg reports that the former head of engineering is set to be engaging with the u.s. attorney's office in the southern district of new york in hopes of getting a plea agreement. he was a house mate of sam bankman-fried in the bahamas
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former chief technology officer gary wang and alameda official caroline ellison have pleaded to fraud charges, brian >> it did not take long for them to flip. sam bankman-fried was on an island and may literally and figuratively be on an island now. silvana henao, thank you. meantime, president biden is set to meet with the leaders of canada and mexico in mexico later on today the three expected to tackle a number of key economic issues with tensions lingering in the background ahead of the sit down kayla tausche is here with more on the areas they plan to focus on >> reporter: brian, the meeting will touch on migration to fentanyl and climate change and policy deliverables later today. with lopez obrador with
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investments on chips semiconductors will, in fact, be a focus according to john kirby. >> we will focus on the world of high tech semi conductors and making sure there is enough resilience in the supply chain so the three countries can sustain in those supply chains we saw how it happened over the covid pandemic >> reporter: behind the announcements is a bit of acrimony president biden and president amlo as he is known, is expected to tackle the an energy business ta dispute. shutting out foreign investors and breaching the trade agreement. the national security adviser jake sullivan suggested the parties have identified a path forward, but if not, there could
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be up to $30 billion in tariffs on mexico. u.s. alleged the canada barriers for dairy is too high and banning imports on corn. they are saying the u.s. is strict of sourcing of auto parts. the chamber is calling on all of the governments to work toward a quick resolution of the dispute settle pr -- settlement proceedings the top u.s. trade official is not in mexico city this week and the three countries' finance officials meet in washington today with the administration telling me don't expect any br br breakthroughs. brian. >> you are hitting on the key economic issues. human itssues at play. brie jackson reporting criticism
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of the biden administration for what appears to be a photo op at the border they cleaned up el paso instead of leaving it the way it was is the border and the fentanyl crisis which killed 100,000 people per year in last few years of the united states, much coming across the border is that a key topic? is there expected to be tension with the president of mexico over this? >> reporter: they are the key topics, brian. there has already been some tension despite the affection the two leaders shoewed last night. the statements were terse in what they actually discussed the u.s. has pursued some symbol i symbolic actions with president biden visiting the border and the administration announcing the 30,000 migrants from venezuela and three other
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countries policy and capturing the son of el chapo. there needs to be enforcement. there will be a matter of months to see if these programs are working and if they are effective. there will not be answers coming today. brian. >> kayla tausche thank you, kayla. moving further south mob of supporters of the brazil's former president bolsonaro stormed government buildings this weekend may be a reality check for the economy. the political divide is growing in brazil. it could be a challenge for the newly sworn in and now former president lula the market appears to be contained. their dow climbing after losing yesterday. the currency was one of the top performers among the markets last year. far from ignoring lula's ability
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to control the risks, analysts say the focus is on the path of the new economic policy. let's talk more about this with kathryn rooney vera. she is an expert on all things latin america. a lot of comparisons made to what happened in brasilia to what happened here on january 6th two years ago. kathryn? >> there are similarities and significant differences. a lot of the buildings attacked, remember, bolsonaro is not in the country. lula has de facto won. the buildings attacked were empty and they were not -- no impact on government functioning. the riots were roundly condemned by both sides and internationally. it was, as you said, very
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contained. it doesn't seem, brian, yet, to spread to other parts of the country. >> okay. that's really good perspective the election was months ago. like ours. lula is basically already in and no justificajustification. people are allowed to protest, but not violently and attacking government buildings even if they are empty lula, i imagine he won the presidency, but he is a convicted felon. he was put in prison for governmental corruption. i imagine there is some frustration and and we are him returning as president >> absolutely. this is a culmination of months of protests, brian these are people that have been protesting outside government offices for months so there's questions of credit
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bu creditability. in a democracy that is only 40 years young. this is a relatively young democracy. lula won by a razor thin margin. there are a lot -- there is immense distrust by the populous with the election outcome, but with the institutions in themselves >> brazil, you know, is the biggest country in latin america. it is an important trading partner with china heavily naturally resourced and commodities based. i don't mean this insultingly, but the wall street line on brazil which is brazil is the country of the future and always has been and always will be. if you look at the ewz the etf that mirrors the market. bring up a 5 or 10-year chart.
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this was $89 14 years ago. now $28 and change is brazil investable >> sure. it is certainly investable i would say if this remains contained and doesn't produce something similar to a trucker strike and doesn't hit sao p paolo, which is a third of the country with soy and wheat and oil and the trade partners with china reopening and the surge there, i think brazil is nicely poised there are concerns of the credibility of the 11 justices and former president lula who did serve time in jail there are serious concerns here. i think the yield so attractive that emerging market investors and international ones would give brazil a good look.
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>> yeah. you know, i've been talking about europe for a youcouple of years. brazil is huge buyers of lng they have hydro power as well. interesting place. kathryn, i appreciate you getting up early have a great day take care. coming up, your morning rbi is back. it's my top five predictions for the markets and other stuff this year i'm going to try to go full nostradamos on your money or look like tcu and go 0 for 5 "worldwide exchange" has the predictions. back in a moment
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welcome back if i'm back, that means so is the morning rbi. today's rbi is the top five predictions for the year you may nknow for the last ten years, i have my top five guesses for the year they are based on what i think could happen in markets and economies and whatever's on my mind i take them seriously, but remember this is not investment advice of any kind take that seriously. it's for fun maybe you can tell me how wrong
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i was at the end of the year maybe they also help you have a different look at certain things let's go my top five predictions for 2023 number one, s&p 500 ends the year with a small gain this is boring because it is in line with strategists. i like to be on my own thing even though the strategists were wrong last year, this outcome is likely the markets go down rarely two years in a row one jgigantic caveat if the s&p 500 does fall this year, it will likely be more than it fell last year because second year declines while rare, tend to be worse when they happen prediction two oil will pop and nat gas will drop russian rude oil starts to dry up even in recession periods which we are likely entering, global
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oil demand is stronger on natural gas, i think prices stay here or move lower. simply no new u.s. export capacity coming online until the middle of next year or 2025. we'll produce more gas and maybe have nowhere to put it number three, i think european stocks beat the u.s. i know this sounds weird no, i have not been drinking given all of the europe energy problems that's exactly the reason this could happen markets often act irrationally european central bankers may need to pivot faster than ours we with we will see what happens with the war. with europe and everything against it -- by the way, jenny hair
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harrington agrees. and the next is tiktok gets banned and i think snapchat could pull a twitter and going private. maybe not what investors want thatto hear and finally, electric car sales begin to stall this flips on a prediction from last year where ev sales would boom and hit 10% of the market they did not i just think a bad combination of rising car prices and higher borrowing costs and coming consumer recession and/or slowdown will hit ev sales i think ev sales will grow, but the pace of growth that i think will start to stall out. how many people can afford $75,000 cars and a lot of the tax credits are going away for cars that are basically not maidem made entirely in the united
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states my top five. i went 2 and 2 and yet to be determined last year's outlook i did go 5-1 the written article is up on cnbc pro check it out today if you have not, sign up for cnbc pro coming up, jeff kilburg is here with why you want to forget about the dogs of the dow and look to the nasty of the nasdaq. his suggestion why the markets could be poised to pop by the way, follow our podcast. we update it every day we're back right after this.
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looking for a way to fix the meltdown from southwest. and politico says they are looking to a law that allows them to give lower prices. cvs looking to buy operator oak street health. the deal would value oak street at $10 billion oak street stock up 32%. new jersey and ohio the latest states to ban the use of tiktok on government owned and managed devices all over security issues. if you missed it, you didn't miss much. university of georgia demolishing the tcu horned
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frogs. georgia back ecoming the first back-to-back national championships in the new system. 65-7 was the final score let's get to our next friend who played football. jeff, i would like to talk football with you. that was an absolute national embarr embarrassment. bad for the ncaa as well let's talk about the stock market shall we what is the nasty of the nasdaq? >> sully, remember the theme dogs of the dow? the stocks in the dow 30 and you find dogs of the dow and see if they get off the mat and have a bounce look at the nasty of nasdaq. lucid and nvidia this goes higher this goes against the five for five for 2023. it is short-term
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lucid. small market cap under $7. we talk about that's -- tesla. there is a lot of volatility the nasty of the nasdaq short-term has the ability as all four of the stocks we talked about, sully, they were in the worst of the 15% last year >> you know, i don't know if it goes against it, jeff. one of the things i thought about writing up is this when you get the best of and top picks from the wall street broker dealers and research firms. i compiled a massive spreadsheet. some of the names are on the top picks list i don't know if that makes me happy if i'm investor. they could get a nudge from the wall street.
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>> absolutely. you have to put your trader cap on here. these are high beta names. if you look at nvidia, hard to believe, sully a larger market cap than thesla all four of the names here you think of the bigger picture and fed chairman powell is at a symposium in sweden today. we are focused there what happened yesterday? the move higher in the s&p 500 you saw a spring in the step of the bulls. we got above the 50-day moving average. you saw the wet blanket of the fed presidents talking higher for longer what is fascinating today and why i see the market coy and moving higher, if you look at last three trading sessions, it is coy just like energy with the torque in the engine and has to be released we see copper above $4
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we see the vix we see a lower u.s. dollar we are focused on the fed. everything is set up for a 200-moving day average it will catch a couple of bears off step for earnings season >> let's say we hit the levels and fall back down what happens if there is re resistance or we bust through and stay there and test it and more higher? >> that is my cautious optimism in 2023, sully you know i spend a lot of time trading u.s. futures you see the 10-year treasury at 3.5% from where it was think about the move we see it settle in and i think we have higher lows in the s&p 500 and move forward in january and if january is a good year, post midterm election, we are set up for a higher year i know expectations for more of
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a recession. i'm in the soft landing camp i'm looking at things optimistically it is the pessimism in the market if we see a little bit of an uptick in the wake of the earnings season, that does body well for the bulls, sully. >> it does by the way, looking at the screens. nvidia is on four different top pick lists only amazon on more with six there is some short-term boost in nvidia as the sales traders are telling to sell. jeff kilburg, love your views. have a great day see you soon. >> you, too. thanks, sully. take care. amazing how quickly it goes. i'll be back here same time tomorrow that does it for us here on "worldwide exchange. have a spectacular tuesday "squawk box" is next
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good morning futures are relatively flat ahead of this week's key inflation data and kickoff of earnings season. wonderful time of year happens four times we will show you what is moving higher including tesla. the house passing a set of rules for the legislative session. first on the gop agenda, bill repeals tens of thousands of dollars for irs funding. sym symbolic not going anywhere we take you live to washington.
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and disney is now the happiest place on earth and bob iger wants employees to spend time there it is tuesday, january 10th, 2023 "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 sorkin. this morning, u.s. equities are mix mixed. dow is off 70. s&p off 2 and nasdaq off 14. that mimics the pattern yesterday. the dow and s&p reported losses. nasdaq did end the day higher by .60%. that was thanks to the 6% rally in e
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