2% >> i think it will be higher, 5%. >> 5%. >> that's my own view because i think there's a lot of underlying inflation. >> we want to make sure the united states of the world being the super pow over america should have energy security. >> it's a doctor-ordered blood test that can identify the a person has one of 50 types of cancer. it is 5:00 a.m. at cnbc global headquarters and here's your top "five@5." we're going to tell you why one strategist says he's already outright negative on stocks in 2023 and sinking sales and disappearancing demand microsoft held out in what was a rough quarter and a weaker year ahead. and new details this morning on what activists are after as they boost their stakes in software giant salesforce. also senators demanding

answers from livenation executives over the taylor swift ticketing fiasco, and tesla with the footprint as the company prepares to open its books today. it's january 25th, 2023, and you're watching "worldwide exchange" right here on cnbc ♪ good morning i'm frank holland in for brian sullivan happy wednesday. let's kick off the hour with a look at stocks yesterday the dow finished higher for a third straight day right now we're seeing futures low. all of them in the negative. the nasdaq the hardest hit, down three-quarters of a percent right now. the futures took a bit of a dip after invests changed on most. they saw a jump and then they've fallen overnight we also want to take a check of the bond market right now. we're looking at yeels right

now. we look at the 10-year, 40 basis points we're still seeing the inverted yield curve. we keep talking about it we want to look at energy. wti this morning trading at just about 80 bucks a barrel. brent crude up slightly. oil dipped down to as low as 72, now back up to 80. bin bitcoin, we're seeing it back up up about 35% this month. ether up 25% however, you look at the whole complex, under pressure. around the world, most asian markets remain closing for the lunar new year but europe is busy let's get to our top story, excuse me, and shares of microsoft under pressure this morning, reporting its slowest

overall sales growth since 2014 as its consumer demand for windows and xbox products singer arjun, i tried to jump the gun we're getting over to you now. a bit of a surprise when it came to the cloud results, but some of the guidance, not as great. >> it was a bit of a roller coaster, frank, andgood mornin to you microsoft came out with earnings that beat expectations it was all looking good. the market expected its device business, more personal computing to fall and it fell 19% in the quarter but intelligent cloud was up 18%. azure and other cloud businesses were up 31%. yes, a slowdown from the previous quarter, but still growth, and good enough for the market at the time but it was that guidance that's what disappointed the market that's what reversed course on the shares after hours, and it was that revenue implying 3% growth for the current quarter

that disappointed the market it was below consensus, but it was also the gloomy commentary around cloud that was wiring as well interestingly the company said in the december quarter, azure cloud services rose 42% as a whole, but in december, it was only mid-30% growth. so you see that slowdown and the forecast in the current quarter, another 4% to 5% decrease in the azure business it's very critical management said some of those downward pressures on business trends would continue in areas such as windows licensing, for example. all of that put together was worrying it wasn't so much the q4 results. it was very much the guidance for the rest of the year microsoft was coming out with news it was facing outages in a number of businesses in terms of the outage, which it's fixed that's a come bounding bit of

bad news. >> one thing that seemed to be a bright spot that a lot of investors were looking for were the details on open ai we're learning 200 companies are using open ai. they're about to open up the platform what do you hear about it? i think we might be having some difficulties with arjun. stay with us we'll figure that out. silvana henao is here with our top stories. >> good wednesday morning to you, frank we're getting new detail this morning on the activist pressure surrounding salesforce a person with direct knowledge of the matter tells the "financial times" that the company's new outspoken in investors, which includes three

companies made it clear that a sale of either slack or tableau should be explored reporting ceo marc benioff should allow elliott to seek a board seat should it disregard its demands. tesla will invest $3.6 billion in nevada with two new facilities of its long delayed semi-electric truck and another for its battery cell, produing enough batteries for 2 million light-duty vehicles a year the factories will employ about 3,000 people and bankrupt crypto lender blockfi explosion how deep its relationship with sam freeman was. accidentally uploaded last night without the redactions, the company said it had over 1$1.2

million, much more than prior disclosure expect. of that $1.2 billion, more than $800 million was on loan to alameda research, frank. >> a developing story. we have arjun back after a few technical difficulties thanks for coming back i want to wrap up our conversation about microsoft earnings and its cloud business azure. we know there were some disappointing numbers when it came to some things, but what about open ai. they broke down open ai for their customers. >> absolutely. i think that's fascinating you've seen them over the years talk about the potential for ai and how microsoft sees that playing out. i think it's commitment in that big investment really shows it's not just about chat gdp. that's an interesting product. it's about what coming next and how the company sees some of these technologies perhapsing

melding into their other products like search, bing, and teams, and cloud computing products it continues to play out this cloud battle with amazon certainly a big stamp of approval for the technology of open ai and where he sees the direction of artificial intelligence going when it comes to microsoft. >> yeah, we're going to be talking a lot about that open ai vichbtment and what it means we have another huge report on deck today tesla, what exactly is the street expecting, and what should investors be looking out for? >> i think this is one of the most important earnings reports given the crossroads tesla is at with the macro environment being difficult. i think the market is going to be looking at a number of things firstly the price cuts we've seen across the globe and how that might impact margins, they may look at what tesla's plans are for new and refreshed vehicles given they've not released a few items as well

volumes over the sort of long-term, that's not something we've seen of late there may be a bit of an expectation reset when it comes to volumes, and i think the market is going to want a bit more commentary about that finally they want to hear from musk how he plans to jugglering that he's taken on, the current trial that he's undergoing t twitter issues, and all his other businesses including spacex how will he put tesla, the crown jewel of his empire back, front, and center to navigate this company through what is a very tricky time. i think this is not so much really about the results but it's about the guidance and it's about investors trying to get confidence back on elon musk and musk trying to get the confidence of the market back as well, frank. >> we're seeing tesla shares down more than a percent and a half arjun, thank you as always. turning our attention back to the broader markets, the major average has gotten off to a great start with the nasdaq up

more than 8% but not everyone is on board with this january rally. china's reopening andweaker dollar has created a narrative on "fast money" last night he ci cites the reasons he's bearish >> we do think we will have a recession. the question is whether it's mild or less mild in the u.s. and europe we think that fundamentals are deteriorating, and the market has been moving up >> a lot of questions there. let's bring in annika. futures at session lows. what are you seeing? what's giving the markets pressure is it microsoft results or

something else >> hi, frank good morning it's a combination of factors. first of all, perhaps the market is taking a breather it's been a helluva start for 2023 markets have been hot. obviously as we get into earnings season, that's a moment of reality check for earnings estimates where we still believe the aggregate is too high. >> that's a good answer. like that. when you look at microsoft, google, and amazon, it's about a quarter of the nasdaq. microsoft has so much influence. what we saw from microsoft with that weak guidance, how do you see it going forward >> yeah. well, i think there's two answers to your question i think the first answer is let's talk about the global economy because what's happening in the actual economy is obviously spilling over into companies like microsoft and what they're seeing in terms of revenue sales, et cetera

we've had seven consecutive months of slowdown leading indicators almost across the world. if you look at pmi's manufacturing, services pmis, of almost all of the major economies, we're in the contraction mode that's why all the pundits, everyone is talking about a recession in 2023. the second answer to the question -- it's causing weakness, thus a fear around the earnings season. we've been taught to talk about aggregate terms, very, very low cost of capital has been the ultimate fuel for sectors such as tech, and, you know, if a company is a tech company, let's buy it because it can benefit from the fuel. we need to unlearn that. i think there's no such thing as tech there are individual companies riding on specific business models, which have specific cash

flow profiles. some are more legacy known, historic businesses. others are brand-new cash flows are very much into the future. >> now the buildup to the big question here. we heard marko kolanovic he's bearish on equities where are you at when it comes to bearish, but should we be cautious is china giving us a false sense of security going forward? >> i tell you what the biggest issue is on one hand we all know if everybody is screaming out recession, recession, recession, this is arguably the most anticipated recession in history. if positioning is already such and you would argue that's already priced in, that's already known, and, in fact, you have positives at the margin european, energy crisis is almost behind us, china reopening, et cetera the other issue we have is

simple fundamental that we have today, which is two-fold one, weakening, cracks in the economy, and, two, maybe most importantly, central bank policy the market is getting very excited about the world suddenly changing the market is anticipating that the fed, for example, is going to make its pivot this year. the market is expecting lower rates than the fed themselves. that gap is this year's story. and i think, you know, given what central banks have gone through in the last one to two years, credibility is extremely important, and that's why we think it's too early to expect them to aggressively pivot, which is why we're cautious. >> a lot of people still looking for that pivot anneka treon, thanks for your insight. great to see you. and coming up, no profits, no problem, certain stocks being tracked by goldman sachs. plus, inflation may be cooling, but for most americans,

the price for a cup of coffee and groceries hasn't dropped a bit. we'll explain why. we have a very busy urho still ahead when "worldwide exchange" returns. stay with us ♪ ♪ 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 back to "worldwide exchange." time now for your biggs money movers first is capital one shares down 2% they missed forecasts and

revenue was slightly below estimates. credit loss tripled from just a year ago. next up, intuitive surgical down expected lighter than expect fourth quarter profits the number of procedures using its systems rose by 178% but it's still experiencing disruptions due to the covid pandemic. and finally, no profits, no problem. check out the gains so far this year we're taking affirm up 40%, stitch fix and carvana they're part of goldman sachlkts a basket of 40 stocks, many that you know that is correct have gone gangbusters this much it's more than 15%, but no profits. still on deck, ticket master, parent livenation in the hot seat on capitol hill over the botched taylor swift ticket

rollout. waste nothing time calling out its rival. w.e.x., right after this. the only way to restore competition in this industry is to break up ticketmaster and livenation ...meets trailblazer. ♪ ♪ classic meets modern. ♪ at morgan stanley, we may seem like a contradiction...and we are. ♪ ♪ at 87 years old, we still see the world with the wonder of new eyes, ♪ helping you discover untapped possibilities ♪ and relentlessly working with you to make them real. ♪

partnering to unlock new ideas, ♪ to create new legacies, ♪ to research, innovate, collaborate, ♪ and build the way to transform a company, industry, economy, generation. ♪ because grit and vision working in lockstep puts you on the path to your full potential. ♪ at adp, we understand business today looks nothing like it did yesterday. while it's more unpredictable, its possibilities are endless. from paying your people from anywhere to supporting your talent everywhere, we use data driven insights to design hr solutions and services to help businesses of all size work smarter today.

so, they can have more success tomorrow. ♪ one thing leads to another ♪ [music - cover of blondie's “dreaming”] [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. welcome a back to "worldwide exchange." cnbc.com's melissa repko joins us with more inflation cooled a bit in

december, so why are the prices so high and so sticking. >> that's the frustration i keep hearing from friends and family. they say inflation's cooling i don't feel it. i don't see it there are three key reasons here a lot of companies are paying higher wainchs, especially on the retail side, walmart is paying higher wages and they're locked into long-term contracts. they're paying more for beef and then they want better profit margins. especially as the sales environment gets cooler and sales gets a little softer that's something they can control and say to their investors, hey, our profit margin is still strong they don't want to given that up easily. >> are they doing anything to give their customers or consumers any kind of relief >> i spoke to the kroger ceo,

roger mcmullen he was saying kind of the same thing. he wants to tell customers it may be a while before they see relief he was telling me if people were used to paying $80 for their groceries and now they're paying $90, that's going to stick around they're leaning into private label, peanut butter, paper towel, that's how they can compete and put pressure on them to offer more coupons. >> peoplesay their life saving are in eggs or they saved enough money to buy eggs. egg prices are through the roof. are there any prices that are lower and people are getting a bit of a break. >> there is a little bit of good news eggs are starting to come down he said that's really because of the avian flu outbreak and that's starting to ease. the other is consumer ele electronics have gotten cheaper.

people bought tvs during the pandemic and major appliances. those things have gotten cheaper. apparel is showing signs of getting cheaper. more discounts are cog back because macy's, gap, lululemon do have a lot of inventory and they're trying to sell through it and they want to dangle those discounts to get people to keep coming to their stores is the good news but in terms of a lot of other goods we pay for every day, unfortunately people are going to have to use their salary and hopefully they'll have higher wages to keep up with those higher prices. >> discounts sounded great your story is going to be on cnbc.com later, right? >> yes. >> melissa repko, thanks for joining us. let's get a look at this morning's other headlines. happy wednesday. >> happy wednesday to you. severe weather pummeled the gulf coast overnight. in the darkness, millions in louisiana are bracing for the threat of possible tornados as

heavy rain and damaging winds lashed the state there are over 100,000 power outages across the southeast at this hour. this is a system that has produced ten preliminary tornadoes including four that triggered an emergency in the houston metro area where there are multiple reports of injuries. controversy over classified material now spreading again with former vice president mike pence's team revealing a small number of classified documents were inadvertently boxed and taken to pence's indiana home after he left the vice presidency that's in a letter obtained by nbc news they say the former vp asked his team to conduct a search and he was unaware he had the secret material in his home it was discovered january 16th the letter was sent to the national archives the next day and the fbi took possession of the documents. pence's team says he's fully cooperating. finally, st. louis

cardinal's great scott rolen was the only member of the 2023 hall of famers class voted in this year rolen, a seven-time all-star and eight-time gold glover was elected in his sixth apeerns on the ballot, clearing the 75% threshold needed by just five votes. the next closest, frank, was rockies' first baseman todd helton. >> the fact that when you look at gary sheffield didn't make it and manny ramirez not in the hall of fame, it's hard to believe. >> and a-rod had 35%, 33%. andy pettitte was way down there. we know what's surrounding that. they may not ever get in because of that. >> that's why i said there's a little bit of controversy. for some of them, there's a lot of controversy phillip mena, thank you. amazon workers in the uk says the company treats its

robots better than its people. what they're doing to enact some change that's ahead on w.e.x. if you missed anything, check us out on spotify or other apps and we will be right back. dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones

. the earnings parade set to roll on. futures are lower as investors prepare to parse through microsoft in the red on the back, signaling tough days

ahead. we're going to dig into those results. funding, not so secure elon musk wrapping up his testimony. they lacked specific commitments in his push to take ev private it's wednesday, january 25th, and you're watching "worldwide exchange" right here on cnbc ♪ good morning i'm frank holland in for briel sullivan i hope your wednesday is getting off to a great start the futures are in the red the dow would open up 200 points lower at this point. of course, it's still early. taking a look at where the yields are, we're seeing the 10-year yield at 3.3 we're going to have to get a check on energy. wti crude right now at just about 80 bucks a barrel unchanged. brent crude, 86 bucks a barrel

natural gas falling 3.5% arabile gumede, great to see you. >> if you want to blame the futures outlook on anybody, perhaps you could try to blame it on the european front, which is all negative unfortunately today. the ppi numbers from the uk pointing to a slightly higher cost for the month of december it's down 0.8% month on month. perhaps slightly bet owner that front. had business climate data out of germany as well pointing to slightly positive movements as well there also the uk got to see a sense of the gdp numbers so the office for budget responsibility not necessarily pointing a positive picture there. negativity is what we're seeing. speaking of the uk, workers in an amazon warehouse in central

england are striking in what is a dice putte over pay and working conditions this is the first ever official strike at an amazon facility in the uk they're unhappy with the pay increase of just 56 cents per hour that was imposed last summer, saying it fails to match the rising cost of living. on the other side of things if we head over to germany, a stories that ha brecken in the last couple of hours, german police have reportedly raided the offices of bnp parabis in frankfurt. they say it was part of an investigation into a multi-billion euro tax fraud that's that x-fraud notion a spokesman for bnp parabis said no comment is available when approached by reuters. on another news front,

there's a challenge. the group said it will wait for a, quote, reasonable solution to the u.s.-led export restrictions to china so all of that still happening across the board negative across the european markets. frank? >> arabile, thanks very much for the overseas action. let's get a check on our overseas stories silvana henao is back. good morning. >> rupert murdoch officially pulling the plug on his proposal to buy fox corp and news corp. murdoch and his son lackland who is the ceo says the option is not equitable for both murdoch has control over both companies. there are several major ones expressing concerns with the

deal elon musk says he expected strong financial support when he sent out his infamous 2018 funding secure tweet but that he did not have specific commitments from potential backers, that revelation coming amid musk's final days of testimony in the lawsuit over the tweet. musk told the jury he could have drawn upon several sources of financing to take tesla private saying that that was absolutely not an issue musk also shedding light on tesla's tense relationship with jpmorgan chase calling it very negative and he decided to take away all of tesla's banking business from the bank after ceo jamie dimon declined to support tesla. and livenation feeling the wrath of congress over ticketmaster's botched rollout of tickets last year for taylor swift's upcoming tour. members from both sides of the aisle on the senate judiciary committee criticizing the company, calling it a monopoly that hinders competition and

hurts consumers. ticket rivals in the hot seat quick to side with lawmakers. >> it's no mystery major venues in the u.s. know. >> livenation's president and cfo did acknowledge problems with the presale, but the pushbacks largely stem from online bots flooding its system, fr frank. >> i don't 100% understand i'm not a swift fan, but -- >> people were waiting for tickets for hours and they were insanely expensive lots there. >> bad blood all right, silvana, great to see you as always. turning our attention to big tech, shares of microsoft and

its rivals down this morning follows microsoft's result this morning especially for its cloud business weighing on the entire sector microsoft's fiscal q2 offering a narrow but somewhat surprising beat, beating the estimate of 30.8% frmg but the guidance this quarter was weak. >> the exit of q2 with the constant currency, from that we expect q3 growth to decelerate roughly 4 to 5 points in constant currency. fx's impact on azure is a point more. >> we receive new insight on what could be a new growth engine for microsoft about 200 customers are already using it and microsoft will soosoon add a support function this could be a further

differentiator for azure that has made recent gains in recent years. sam altman has said azure has the best ai infrastructure he may be biased after a few multi-billion-dollar investments. timothy, great to have you on i want to start off with your take of most results and a big focus on azure. >> expectations were relatively low. as you pointed out, they did meet those expectations, but this has been the weakest growth we've seen out of azure in the company's history and about the weakest growth we've seen in the last five years or so. as you pointed out, the guide is fairly week. the growth has been decelerating for the past two quarters. they're really calling for a six or seven basis points deceleration which is the current business model that's

extremely weak frank, i know you were on the call last night. in december they saw slowing sales, and that has kind of continuing into january. >> they really highlighted that slowdown into year end i want to ask you. after the call came out before the call, the stock jumped up, i believe, about 4%. after the call it took a turn to the red. have you changed your opinion on microsoft and your rating at all? >> yeah, well, i think those comment use highlighted really were the key the deceleration in azure and expectations is a little bit shocking because it means we're going to see a couple of quarters of azure growth slowing by 6%. positively they talked about companies grooming and saving money and they rear investing ma money on longer-term growth.

that's the key of the story. the other key to the story is ai they mentioned ai throughout their conversations yesterday. we remain extremely optimistic to build a brand-new platform for ai these opportunities only come around once a decade to create a plat fom and they're really well positioned to do that. >> is open ai as transformative as a lot of people think and will it change the cloud space we heard about the huge market share gains azure has made, almost doubling its in the last five or six years. is this a catalyst for them to tame over as the leader in cloud infrastructure >> they do not respond in an effective way with their own ai. this will be a game-changer for microsoft. the big difference is azure gaines 80%, 90% new customers and that can totally flip at

this point if microsoft remains the lead in eai and amazon and google do not respond. >> you didn't answer one question are you changing your rating on motte amazon >> no, we still have the $265 price target we think microsoft is going to do extremely well. >> i think you're making people happy. timothy horan with oppenheimer. coming up here on w.e.x. we stay on the earnings beats and tesla's results and the potential impact on the price cuts and gwirong demand. w.e.x., we're back in a moment stay with us

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now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the world. welcome back to "worldwide exchange." tesla gearing up to report fourth quarter earnings after close today. it shed two-thirds of its value from april 2022 and finishing off with his worst month and quarter. for the very latest on elon musk, he's been in court over those who claim he defrauded investors back in 2018

great to see you. >> great to see you. >> a lot of anticipation for this report. tesla is up 15% following its worst month ever starting off with a really great month. what are you expectinging and what is the most important thing? is it the results or the guidance >> that's a great question think what's most important about this earnings report is the guidance why do we think that if you look at what we phrased the midnight massacre price cuts that tesla just engaged in, you're talking the fourth quarter of last year to this year so far price cuts of 14% in the u.s., 12% in europe, 5% in china, all of that happened in the first quarter. so while we expect, you know, there to be some fireworks in the fourth quarterer, what's most important is what they guide margins. to keep in mind we ran them. we completely rejiggered it last night. we believe they're going to

report 70 cents per share in the first quarter and for the full year 2023 they're going to post $2.99. so we think what's most important is not what they've done in the past but what they're going to do in the future. >> walk me through this. we're seeing price cuts from tesla. at the same time it seems like they're trying to increase their produngz capacity not only for vehicles but over parts of the business are investors going to receive that well? >> that's a great point. i just want to highlight, right? tesla has massive price cuts and some of the pundits out there have said that results in stronger demand. the data doesn't support that. look at their lead times the lead times in the u.s. have fallen since the price cuts. i think that the demand is not responing to the price cuts and that's going to scare investors. the question is tesla going to be honest about their earnings

guidelines when they shut down the shanghai plant, we knew they would go down overall we think they're facing big problems and they're not seeing the demand response from the price cuts that many of the bulls hoped for. >> at the end of last year, we heard stories about tesla employees trying to rush to meet vehicles in the end, tesla ended up missing. is that a big deal or small deal in general we saw consumer spending weakening is tesla going to be judged harshly for this >> i think they are. think about this their lead times have collapsed to basically nothing last quarter their lead times went from multiple weeks/months to zero. their lead times have collapsed despite the fact that their shanghai plant, they cut ka as thety by the end of the fourth

quarter and it's around 20%. they can't sell what they're producing right now despite the fact of the full utilization that's a big problem all of the talk about expanding capacity, they're not showing demand responsibility of the prices they hoped for. one other thing. people are saying it's 40% last year u.s. was expected to do five gigawatt i think that's something else the bulls are focused on. >> i want to get one more in i believe you have a price target for tesla that implies about an 80% drop from where we are right now. break down how much is fundamentals and how much is the perception that elon musk is distracted and maybe doing too much. >> that's a good question. the estimate for this year has went from $6.50 to $4.61

the street estimate went from $5 to $4.50 so even the street believes their eps is coming down it's purely fundamentals we're seeing a collapse in demand for their product in china. a bigger build in the u.s. that's scaring the institutional investors despite the fact you have a lot of retail funds flowing. it gets worse as you have all this new competition entering. we think things get worse. as the street adjusts to our number, we think the stock goes down further. >> i think we'll get a few questions about tesla. a lot more questions about where you get your coffee. you are awake, my man. good to see you. >> good to see you. on deck on "worldwide exchange," more on tesla jeff kilburg lays out more and w the stocks he's snatching up we'll be right back.

♪ prizefighter... ...meets trailblazer. ♪ ♪ classic meets modern. ♪ at morgan stanley, we may seem like a contradiction...and we are. ♪ ♪ at 87 years old, we still see the world with the wonder of new eyes, ♪ helping you discover untapped possibilities

♪ and relentlessly working with you to make them real. ♪ partnering to unlock new ideas, ♪ to create new legacies, ♪ to research, innovate, collaborate, ♪ and build the way to transform a company, industry, economy, generation. ♪ because grit and vision working in lockstep puts you on the path to your full potential. ♪ welcome back six stories you may have missed

as we close in on the 6:00 hour. with again with microsoft. it's ging products some customers who reported outages have reported their services are coming back online. amazon workers are staging a strike in the uk over pay and working conditions they treat thorough bots better than its workers >> tesla plans to invest more than $3 billion in its complex in nevada to produce its long delayed semi-electric truck and battery sales. and apple suppliers say their shares will fall 50% they say cost restructuring is a key driver of the downgrade. and sales force nation increasing pressure if performance does not improve the ft reporting the company overpaid for both of those businesses. and intuitive surgical shares dropping after robotics

systems maker reported fourth quarter results slightly lowerer expectations. we're gearing up for the trading day ahead. we get the latest look at weekly mortgage applications and the earnings parade just rolls on with results from at&t, tesla, csx, boeing, ib maine, and sands. and at 1:30 this afternoon senator elizabeth warren will deliver a keynote address on the state of the crypto earning industry. let's bring in the big guy, jeff kilburg, a cnbc contributor for a look at the trading day ahead. always good to have you on, man. >> flank, great to be here what a fascinating day you've laid out i have cautious optimism frank, we've looked at all the

different undercurrents. right now earning season, we're in the heart of it it's gr tot see despite the fact we've seen a lot of guidance weakening. look at microsoft. we've seen some nasdaq names come back from the abyss you have facebook -- i can't call it meta yet if it's facebook, microsoft, nvidia some of these names, i called them earlier with sully, the nasty of the nasdaq, the dogiest of the dogs. you're seeing the leadership what's fascinating is we will not see confirmation on this bullish outlook until you see the nasdaq 100 get above 200, we're still 6% away from the vault above, specifically the nasdaq we've already accomplished it in the s&p 500 as well as the dow jones. >> man, you're ready to go a lot of people don't know you were a center at notre dame. you were a center. you snapped the ball keep going. >> i've got gordon's coffee.

it's earnings season like a super bowl. >> speaking of that, we've got tesla after the ball adam jonas still naming tesla a top pick despite the price cuts. what are you expecting from tesla after the bell >> i think you're going to see some people have a little bit of foe moe, fear of missing out of tesla. you've seen the political component come in. i think you saw an oversold condition. i started selling puts in tesla. it didn't feel great when i started selling at 130 all the way down to 110, i was establishing a position. thank you to the folks on the other side of the options trade who said sign me we have the optimism to go back and fill about $180. yes, overnight, we did see tesla invest about $3.6 billioninto the gigafactory in nevada. and that isoptimistic and encouraging. i think a lot of people were looking for a buyback.

tesla, elon musk is always the widecard i think this oversold condition, you're seeing the ability to look back. i'm going to have a tight leash on this stock. this is a trade, not an investment i'm going to be very considerate of what comes out. >> ibm plays in a similar space. what are you expecting from big blue after the bell? >> frank, you bring up a great point. this isn't a news flash. i think traders and investors globally have anticipated the price cuts, lower guidance, and even layoffs we saw that with microsoft look at the nasdaq last year it was the worst laggard of the major u.s. indices i think as you see the nasdaq try to come back to life, you have to think of single names like big blue. you forgot about them for a long time they're really involved in the cloud. we own big blue. i think it's an essential name

there are certain names i'm looking at a cross seks to give us a better understanding is the economy going to be okay we all know the growth is slowing. that's not a news flash. i get excite about owning single stocks that have been oversold, overextended. >> i call it big blue. i'm an eagles fan, but i'm not going to digress. we hear a lot of noise about china reopening and that's going to lead to a smiec in energy prices with respect specifically to oil we haven't seen it wti, 80 bucks a barrel that's where it started. >> it's interesting to see when we saw the collapse in wti crude, when you saw the futures collapse, you didn't see the chevrons, the exxon, occidentals. you didn't see them go off and come down to new lows. that's really encouraging, frank, to see the energy sector is going to move forward there's a lot of nervousness as we see that reopening, but

finally after covid, we do feel confident that a demand coming out of china will sustain wti. i think it's isolated. we think it's a sector that's going to continue to grow. you have to dance between the raindrops. >> jeff kill burn, great stuff as always. before we let you go over to "squawk box," we're going to take one last look at stock futures in the red nasdaq down by 100 remember, it is still pretty early. that does it for us on "worldwide exchange. "squawk box" coming up next. 5g network in america? (vo) when it comes to your business, not all bars are created equal. so switch to verizon business unlimited today.

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good morning futures taking a step back they rebounded yesterday they're off the roads though microsoft guidance is setting the tone in the early going, and

we need an expert here we've got one. we're going to break down that report. and rue put murdock decides not to put the band back together the media mogul pulls the plug on a proposed fox news corp. deal i think he was deposed last week in a dominion case elon musk going from the courtroom to the earnings call and may be opening another factory in between wednesday, january 25th already. "squawk box" begins right now. ♪ good morning, every, and welcome to "squawk box" here on cnbc we are live from the nasdaq market -- it's contagious around here --