it is 5:00 a.m. at cnbc global headquarters. here is your top "five@5." wall street trying to end on a high note despite calls from fed officials of higher for longer is here to stay. call it a streaming success as netflix user growth blows by estimates. that stock surging pre-market. plus a big change in the c-suite. crypto crisis casualty as another files for bankruptcy

protection. retail warning signs as shares of nordstrom sink ahead of opening bell. the full story on that ahead. later on, the house may be bitterly divided there is still proof that bipart bipartisanship exists. a look at the bourbon caucus it is friday, january 20th, 2023 you are watching "worldwide exchange" here on cnbc good morning i'm dominic chu in for brian sullivan let's kickoff the morning with the u.s. equity futures. after another losing session yesterday that saw the dow and s&p post a third straight day of losses for right now, things sdare stable dow lower by 23 points s&p flat and up for the nasdaq 21impimplied.

we are trying to get green on the screen checking on the bond market. yields on the move slightly higher. put it in context. we are well below 3.5 for the 10-year treasury the 2-year treasury is 4.16% the 30-year treasury is a hair below 3.6% at the current stage. in energy, oil prices, i don't know if you drive, but if you have been at the pump, you see gas rising wti crude back above $80 up 45 cents. that is .50% similar percentage move for ice brent crude. the world benchmark gauge. $86.60 in crypto, it was before the old regime around the $17,000 mark we are watching the 20,000 mark.

we are off .7.75%. ethereum prices are $1,552.29. that is down .30%. around the world, it is glean arroe green arrows in the asian trade. the nikkei closed up .50%. the hang seng and hong kong up .1% now europe's trading day is in the early going right now. you can see pretty much green across the screen. .30% for dax ftse 100 is up .30% as well. again, green in europe green in asia. we will see what happens here. let's get to the top stories with silvana henao good morning, silvana. >> good morning, dom shares of netflix surging ahead of the open. this after adding millions more

subscribers in the fourth quarter than wall street expected total net subscriber ads is 7.6 million after a 4.581 million expectation. this is the first time the ad supported tier has been added. netflix announcing that reid hastings is giving up his role as ceo breaking. breaking overnight genesis filing for bankruptcy protection making it the latest following the implosion of sam bankman-fried's ftx. genesis owes more than $3 billion, including $900 million to customers for gemini.

the faa says a third party contractor is responsible for the safety systems outage that grounded all domestic flights for hours. the agency which declined to identify the contractor says staffers were working on the system when certain files were unintentionally deleted. the faa says steps have been taken to prevent a similar outage in the future dom. >> thank you, silvana. officials from the fed are getting in the last licks before the central bank begins the pre-meeting quiet period they go hush at that point speaking last night, new york fed president john williams is saying the rate hikes are keeping inflation expectations in check there is still a way to go that echo comments from fed vice chair lael brainard who supports

the pace of rate hikes to the traditional 25 basis points at the fed next meeting brainard is probing for the level of rates to be adequate to tame inflation let's discuss this with erin gibbs at main street asset management erin, finflation is a big problm and affects everybody. middle income and low-income americans. that's why it is a big deal. you have a lot of ceos and b bankers saying inflation has peaked what is the fed's next move >> we will see what wall street is predicting. we will see a lower pace you know, for those saying it looks like it peaked, it has been inst steady decline since

june we can't get it down fast enough is the issue i think right now we're also drug the thie -- struggling with the fear of inflation which hits americans in the pocketbook and also recession the fears between inflation and recession and interest rates are really what is struggling and keeping the market focused on the macro effects rather than fundamentals and what companies are expected to perform. >> erin, we turned to you in the past a lot over the last several years to talk about the corporate fundamentals the earnings picture we are early in the earnings season right now things don't look terrible they are not off to the races. is this a scenario where earnings growth is still at risk or are we talking ourselves into

recession? what are the corporate results looking like right now to you? >> so, certainly for the fourth quarter, they look fine. that was in the past and we are concerned about what will they do the first few quarters of the year the expectations are coming down that is normal that expectations come down at the beginning of the season they really have been coming down and they dropped to a little over 3% for the entire year mostly because we have so much pessimism how companies are going to contract, not grow, for the first half of the year that's why there is a lot of concern about how hard this recession for if there is a recession, how long it will last and how the fed will manage or be able to pull this out so, right now, basically all of the hope when it comes to fundamentals is a little bit in

the third quarter, but almost all of the growth is expected in the fourth quarter wall street will say it will be bad for the first three quarters we will get out of it by the fourth that is the hope that by the end of the year we will be somewhere in a better position and in a positive place. >> erin, you are not the only one that feels that way. there is growing consensus of a tale of two markets. one h where things get better. with that being said, what exactly is the opportunity is it here in the u.s. is it value over growth? is it tech or is it energy is it international versus d domestic what is the theme? how should you position? >> i think we will be in the continually higher macro environment where the broad indices are dominated overhead lines and inflation and employment there are a few industries that

really are standouts like we had energy last year that broke the trends i think there are few industries that will be able to break the trends based on the exceptional earnings one area in particular are resorts and travel those types of entertainment and leisure companies. they have stellar outlooks in the u.s. they are expecting 130% profit growth no quarters of contraction it has been one area that consumers are willing to spend on top of that story is european travel and leisure and luxury brands are also done very well since the beginning of the year out performing peers although europe is expected to grow slowly, there will pockets with the outlooks and beating

estimates. it is a really good playo off te reopening of the china and stronger euro against the dollar and improved expectations for europe that is another thing going for them that is one area to look at over the next six months until we feel counfident of the u.s >> thank you, erin when we come back, a possible emerging market breakout is taking shape mobius capital partners mark mobius is here and the netflix stock rally. it is up 5.5%. it doubled in price since may of last year. later on, down, but not out. what the new ftx ceo is saying about the future of the exchange as its bankruptcy proceedings continue they roll on

we have a very busy hour aadhe when "worldwide exchange" returns after this break ns to help you engage and retain top performers today, so you can have more success tomorrow. ♪ one thing leads to another, yeah, yeah ♪ only at vanguard, you're more than just an investor you're an owner. that means that your goals are ours too. and vanguard retirement tools and advice can help you get there. that's the value of ownership.

welcome back to "worldwide exchange." time for the big money movers shares of in nordstrom sinking. the department store chain also cutting earnings and profit

margin he ma margin expectation for the year. and macy's and kohl's down for the year as well and wayfair preparing to layoff 5% of the work force according to the report from the wall street journal. this would be the company's second round of layoffs in the last few months. this is joining the companies cutting jobs la lastly, eli lilly. the fda is rejecting the alzheimer's drug it is telling lilly it needs to review the patient information this could delay the drug by at least several months if the agency eventually decides to

approve. shares down 2.3% pre-market. still on deck, mark mobius is joining us. we have all that when "worldwide exchange" returns after this break.

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benchmark u.s. averages faced growing pressure after the solid start to the year and one area has not. emerging markets and ishares index up 19% in the past three months breaking above the 200-day moving average or longer term trend line one bull case this year is china in the reopening play after three years of its zero covid lockdown the policy. citi is out with a note this morning saying china reopening r ripple effect is more fumuted tn previous cycles. joining me now is mobius capital partners founder mark mobius you look young, but i have been following along for the entire ride take us through the thesis right

now. what is the bold case for why emerging markets is the place to be for 2023? >> first, remember the emerging market index is 30% china. with the recovery of china, it gives a big boost to the index china was out of the picture and going down and a lot of people were unhappy about the emerging markets. now with china coming in, it looks good don't forget other emerging markets are recovering india is doing well and a lot of the other markets are from the strengthening currency it is interesting to note that it is up 7%. taiwan dollar is up. thai is up all of the currencies are up one of the worrying things for the u.s. is a weakening dollar generally index. with the big deficit, that is something to watch

by diversifying into emerging markets, a lot of investors will do very well because of the change particularly because of the currency change wearing seeing t -- we are seeing taking place. >> mark, you mentioned idea that the emerging markets are heavily weighted toward china there are some out there, investors who believe that the best days of that hyper china growth story are behind it. it is now the world's second biggest economy. the so-called easy money has been made in china and it will look more like a developed market going forward is that the case in your mind? china will not grow at the pace of the last 40 years it can still be a growth mechanism. >> it is not growing at the rate of 10 years ago. those days are over. the simple reason that the economy is so big and the chinese economy is like the u.s.

economy. the u.s. to grow at 3% is a big, big deal when the individual company basis brings tremendous opportunities. you are seeing a big revival of the tech because of the u.s. distriescr restrictions that the chinese government is putting on tech. there will be opportunities in china just like in the u.s so many great opportunities in the u.s. market. you will see that in china other markets like india and brazil and malaysia and indonesia antantd thailand >> you mentioned that dollar story before it also plays out because of the nature of the commodity demand needed for brgrowth in the countries. specifically oil and gas when you talk about the bold case for the economies, there is

strength for the u.s. dollar as part of it as the dollar weakens, it makes it cheaper where do you see those commodity markets power growth which parts of the market? you mentioned india, malaysia, indonesia. >> the big markets are importing raw materials like oil china is a big importer. india is importing the good news is they are getting cheap oil from russia and paying in their currency by the way, that is a very interesting sideline to the situation. if they are not paying in u.s. dollar, it explains why the u.s. dollar is getting weaker globally most of the markets will benefit from stronger currency because they will be able to afford the commodities. particularly oil at a lower price.

>> before we let you go, we have a few moments left you look at the outlook for some of the currencies out there and there is a case that europe is going to be better off than the u.s. on a relative basis weather has a lot to do with that if the weather stays better, the economy will be better do you believe europe is a better place to invest than the u.s. going forward >> i don't think so. i think it is too early to head for europe i'm not saying the market will not do better than they have been doing, but because of the ukraine situation and under cer -- uncertainty, i don't think the market will be as good as emerging countries >> thank you, mark mobius. >> thank you let's get a check of the headlines with frances rivera in new york >> happy friday. good morning we start with the week after the special counsel named to investigate handling of

classified materials found in a private office and delaware home now president biden has broken his science. silence he has no regrets. the president faced growing criticism from republicans and allies the adviser to the white house said officials are trying to explain what happened without compromising the investigation. the cross country storm that drenched the west is leaving a trail of destruction as it marches across the u.s two feet of snow in some areas in nebraska. and in colorado, trucks piling up on highways causing crashes further south, a tornado ripping through arkansas tearing dowd down power lines and uprooting trees. the world is mourning the loss of one of rock's greatest

david crosby has died at the age of 81. ♪ i'm going fly away ♪ ♪ hey, hey ♪ ♪ what have i got ♪ ♪ to lose ♪ >> david crosby died thursday after battling a long illness. the founder of the birds and crosby, stills and nash. he was twice inducted in the hall of fame nothing short of genius. what an era in music he did everything. i'll miss that sound. >> looking to the skies in the southern cross frances rivera, thank you very much ahead on the show, the crypto contagion growing in the wake of the ftx imosn.plio cnbc coverage is coming up after the break.

the new year shine for stocks is starting to fade a bit. major indices poised to snap the two-week winning streak. netflix regaining some of the sparkle as the giant blows ex expect expectations we take you to the results. the latest shoe to drop in the fallout of ftx as genesis formally files for bankruptcy. it is friday, january 20th you are watching "worldwide exchange" on cnbc.

welcome back i'm dominic chu in for brian sullivan a special welcome to those listening on sirius channel 112. it is on the nose at 5:30 a.m. eastern time on the east coast here is how stock futures are looking. fairly modest in the moves dow implied lower by 20 points s&p up by 2. nasdaq up by 35. again, modest moves. let's hit oil prices as well they are big this morning. wti crude prices are up 22 cents. $80.55 $86.36 for ice brent we also have breaking news market flash on alphabet just announcing a short time ago

that it is cutting 12,000 jobs more than 6% of the global work force. the ceo telling employees in an email the cuts will impact globally and across the company. he takes quote/unquote, full responsibility for the decisions that led us here those alphabet shasres up 1% in the pre-market trade joining me is james cakmak of clockwise capital. james, this is the scenario that is maybe not unexpected. it is sad anytime there are job cuts alphabet is not alone here it is as if the environment has given the tech firms cover to cut jobs because all their pie -- peers are doing it do you expect more >> absolutely. we look at the tech companies

made the same mistakes investors did last year. when you had the huge pull forward in demand because of covid, accruing to the tech companies, that growth was extrapolated on the go forward basis which is why you had disappointments in 2022 because they under earned relative to the expectations you saw in 2020 and 2021 the mistake that companies made is the same in the sense that they extrapolated that growth and over-hired and anticipation of the persistence of the growth and now the normalized fact of the growth curve with revenue and labor with respective companies and they have to reduce the labor force it is unfortunate byproduct of covid where we're seeing layoffs happen now at the end of the day, this is also the silver lining which is

more of a return to normalcy with estimates and head count. >> what is crazy about this is which sounds perverse. we know it often times when companies, tech or otherwise, announce large scale job cuts to save costs, the stock prices go up investors cheer it as a cost discipline for ceos and c-suite. are these moves from amazon and microsoft and alphabet and others enough to make the tech turn around take shape in 2023 is that what it needs after the dismal 2022? >> i would not say the job cuts are the catalyst, but the catalyst is that our headline for 2023 outlook piece was that bad news will be bad news again and good news will be good news again. what happened is you had the

growth curve expectation and when everything was pulled forward, everything came up here in order to come back on to the original curve, you had to perform below the curve. that is what happened with all of these tech companies in 2022 with the terrible numbers you saw. that is why netflix was able to grow 18 million subs in 2021 and only 9 million in 2022 now estimates have reset and we're back on that original growth curve the company should be able to deliver more upside to estimates which should help drive estimates higher we are incrementally bullish every day on the nasdaq relative to the dow and s&p >> james, i'm glad you brought up the netflix trade those shares are up big ahead of

the opening bell after adding more subs in the fourth and wall street was looking for. total global net paid adds compared to estimates for 4.576 million. that is a big beat along with earnings, reed hastiha hastings will stay on as ceo ned peterson will assume the ceo role let's bring this in the discussion, james, about the netflix story. is this the right time for reed hastings to step away from netflix day-to-day and is the subscriber numbers a bullish indicator for the strategy with ad subbed tiers and crackdown on

password sharing >> i wouldn't say growth numbers are a function of the strategy as much to say expectations were depressed. yes, the strategy in growth efforts and content proliferation continues to impress and introducing a new ad tier and password crackdowns provides upside risk to estimate i think at the end of the day, scale matters the most in the eyes of the consumers, we view content as a hub and spoke for consumers. netflix is the hub and all of the other content providers are the spokes the spokes are churnable the hub is not that is our investment case around netflix at the same time, we have value support which it didn't have

before in relation to the ceo change, it is the right time he has been there a long time. he is a founder, obviously we have been through and cycled through the impact of covid on the numbers for the most part. now it is just execution it is a brilliant move to have the content guy and operational guy as co-ceos they are both equally important. both understand how much scale advantage matters in the world we think it will be increasingly challenging for the competitors out there and netflix is in a very good position if we can finally say we have valuation on the stock which we didn't have as long as i can remember >> significant news. last night with netflix and the numbers. significant news on a sadder front for shares of the alphabet with the job cuts.

james cakmak, thank you. to a developing story on crypto broker genesis. filing for chapter 11 bankruptcy it marks the latest crypto casualty in the wake of the implosion of sam bankman-fried's ftx exchange and failed firm is due back in court later on today where fireworks could erupt. we have team coverage of the major story in crypto. mackenzie sigalos and eamon javers mac, can you talk about how ba barry silber is going back to the infancy of the product >> dom, genesis filing for bankruptcy last night came as a surprise to virtually no one it had withdrawals halted since

november genesis was looking for an emergency bailout and could not find takers. we knew it was coming, but it is a significant hit to barry's crypto em the p-- empire. we are talking about the crypto lending business at genesis. the company's spot trading business will continue as will genesis global trading the company listed over 100,000 creditors with gemini at the top of the list. it had liabilities as high as $11 billion. this puts genesis alongside other fallen exchanges and lenders like blockfi and ftx and celsius and voyager. things went south in november for genesis, but things are moving forward with three arrows capital.

genesis loaned them assets that is why genesis failure is hard on the parent company dcg was looking to take over the liability stemming from the three arrow collapse this is sort of endless knock-on contagion effect it is worth noting, dom, coins desk -- coindesk is looking for a buyer. >> you mentioned gemini. that's the winklevoss brothers and barry silber have been locked in the heated exchange. gemini is the top unsecured creditor we heard from cameron winklevoss last night where does gemini fit here why is there so much animosity

growing with silbert and winklevoss >> last night's filing is the 50 largest unsecured creditors. gemini is atop that by a mile. $769 million gemini was linked to genesis through an offering called earn. this nearly two-year-old product from generamini with earn, gemini loaned client money to genesis for placement across crypto trading desks. for a while, the partnership was great. when genesis halted withdrawals in november, it forced gemini to quit and now gemini has 340,000 very unhappy customers and the winklevoss brothers and barry silbert have been locked in the

public fight cameron winklevoss tweeting that they quote continue to refuse to offer creditors a fair deal. he oadded they have been preparing to take legal action against barry and dcg. >> this is a vicious cycle mac, thank you very much for that let's move to the ftx side of things and the bankruptcy hearing and expectations of the explosive proceeding in the delaware court later today eamon javers has more on that story. eamon. >> good morning, dom we saw this dramatic late filing yesterday by ftx's former compliance officer alleging conflict of interest and wrongdoing by sullivan and cromwell they are representing ftx in the bankruptcy proceeding in delaware in the 17-page document, daniel

friedberg overbilled ftx by millions of dollars and manipulated the filing and made false statements and aided and an -- an beted securities fraud and the judge was expected today to rule on whether the firm can propceed as ftx counsel. ftx's new ceo did support sullivan and cromwell saying the firm has played an integral role in post bankruptcy period to help recover money for customers. other filings this week reveal the pay scale for some of the sullivan and cromwell attorneys working on the proceeding. four attorneys billing more than $1,000 an hour

three attorneys billing more than $2,000 an hour as the process goes forward all of this comes after the day ray said he is open to the idea of reopening the ftx.com exchange telling wall street tu journal that everything is on the table. >> so much developing. eamon javers, thank you very much coming up on the show here, call it byipartisanship over a bottle ylan mui will join us over a spirit in a truly eramican way "worldwide exchange" is back in a moment [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.

[finger-tapping] if your work, works for your community, then you're on team earth.

welcome back the ball is inning co congress for the debt limit as lawmakers work to reach agreement. one caucus is shining a light on the potential for bipartisanship ylan mui has a closer look at the so-called bourbon caucus american in terms of spirits, ylan can we have optimism >> reporter: dom, good morning if there is one thing that can bring lawmakers in washington together is a stiff drink. bourbon is the only spirit that congress designated as a distinctive american product that made it a target during the

trade wars back in 2018, eu slapped a 25% tariffs on whiskey in exchange for foreign steel and aluminum they are scheduled to snap back in 2024. the bipartisan bourbon caucus is pushing to end it now. >> not all whiskey is bourbon. we think bourbon is, of course, the best of all whiskey. that means public policy actually matters >> reporter: according to the distilled spirits, bourbon exports dropped 18% while tariffs were in place. once they were lifted, sales spiked 23% this is not just data that brings the democrats and republicans to the table it is the drink. >> the bourbon caucus, we can be popular because you go to the

caucus meetings. we get to drink our policy >> reporter: dom, all of the harsh rhetoric today makes it easy to get sincynical about washington especially with the fight of the debt ceiling. the bourbon caucus mproves the glass is always half full. >> i get this as it is tilted with the two lawmakers from the state of kentucky talking bourbon. is there any way the bourbon caucus become contagious can we expect growth from the bourbon caucus and talks and efforts to permeate through congress with the bigger topics on debt and budgets and everything else? >> reporter: these are the kinds of things that bring people together and get them to the

table. these two lawmakers could not be more different one of the co- chairs is mcgarvey, the lone democratic representative the other is andy barr part of the conservative of the gop. they have known each other through state politics and thethey both evoked henry clay who said that bourbon can help lube the wheel withes -- wheels of government >> ylan, we have to meet up in new orleans and share a bourbon. we'll do it at some point in the future ylan, thank you. >> i'm in, dom on deck for the show, stocks set to close the rocky week. sylvia jablonski lays out the

opportunity for investors. we'll be right back after this break. ♪♪ ♪when the day that lies ahead of me♪ ♪♪ ♪seems impossible to face♪ ♪a lovely day (lovely day)♪ ♪(lovely day) (lovely day)♪ ♪(lovely day)♪ a bank that knows your business grows your business. bmo.

welcome back to "worldwide exchange." time for the six stories you may have missed as we close in on the 6:00 hour. alphabet announcing it is cutting 12,000 jobs or 6% of the global work force. shares are up on the news. shares of costco rising after the board reauthorized the stock buyback program of $4 billion. the board declaring a quarterly cash dividend. shares up 1% jamie dimon pay for 2022 remaining unchanged at $34.5 million. majority coming from performance base pay. t-mobile reveals a hacker stole data for 37 million customers and did not include payment information or

passwords. nordstrom shares falling after weak holiday sales and slashed guidance for the year. that is rippling across other retailers. and the fda rejected approval of the alzheimer's drug for the patients treated for a year eli lilly shares down pre-market. let's turn to the broader market and trading day ahead with sylvia jablonski of defiance etf sylvia, thank you for being here let's talk about the market right now as it is shaping up. it has been volatile tech, media and earnings kicked off and take center stage. what do you think about the stuff that we got from netflix last night and now the breaking news this morning that now alphabet, parent company of

goog google, will cut 12,000 job. >> we know tech was hammered last year. i think this is the year that things start to turn around. netflix earnings were excellent. something the market took to with the subscribers it says they have profit arevenu in the future. i suspect that will bleed into other technology companies cutting 6% of alphabet's work force sales money for google it is not for the people who lost their jobs, but it is potentially something that is positive looking forward to google's corporate earnings and bottom line. to answer your question, i don't think tech issing going anywhere i love tech at thisses prices. i love the names like amazon and microsoft and ibm -- not so much

ibm. 20% to 40% off the highs i think all of them are part of the industrial revolution and a.i. and computing. we need it i like these prices. >> no doubt we need technology sylvia, it hasn't been a focus so much tilted to fundamentals or outlook to the companies. it has been about valuation giving a rise ing interest rate environment. higher rates have taken a bite from valuation how can you make the call if you don't look at the fed and raise as well? >> i think there are two ways to look at that the fed is closer to being finished than starting at some point when that becomes overheated, the chance the fed will pull back on it these companies are well positioned they have strong balance sheets. they have good profit margins. they have innovations.

they have forward looking technologies coming into the market i think a lot is psychological right now. i think higher rates impact tech bottom line. where valuations are now and where they cut costs and created new efficiencies and how we replace workers and digitalize fac factories. these companies will play a big part we will start seeing them generate profits again >> okay. in ten seconds, your favorite sector for 2023? >> i like hydrogen i think it is the energy of the future 12% of electricity will come from it. it is more cost efficient and used as a fuel source. >> the call from sylvia. thank you. have a nice weekend. >> thank you, dom. that does it for us here on "worldwide exchange. "squawk box" is up next with the rk coverage. stable right now see you on monday.

[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.

good morning futures are flat in the early going. it's a long way to the closing bell more fed speak steve liesman will break that down. investors bingeing on netflix. surging last quarter we talk to a top analyst about the streaming wars. alphabet is joining the tech giant layoffs. it is friday, january 20th

"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 melissa lee along with scott wapner becky and joe and andrew are on the way back from davos. let's check out the early morning action with the final trading section of the week. scott mentioned a quiet session. s&p higher by 4 points nasdaq looking at 43 at the open treasury yields with the 10-year treasury at 4.31%. let's talk netflix shares of the company surging ahead of the open.