it is 5:00 a.m. in new york. here is the top "five@5. pressure to end the week as the dow does something for the first time since october. p and pressure for intel with the ugly quarter and weaker outlook. intel not alone as the list of cautious companies continue to put a cloud over tech and consumer one bright spot is chevron the company prepares to report in just over an hour and artificial intelligence

making waves in a big way from capitol hill to your favorite online quiz. we will tell you about it on this friday, january 27th. this is "worldwide exchange. good morning, good afternoon or good evening. welcome as always from where ever in the world you are watching i'm brian sullivan happy friday thank you for being with us. let's jump in with the look at your money stock futures they are in the green this morning. green on the screen across -- you know what? i stand corrected. they were green two seconds ago. now down a touch a warning at this hour, folks, thinly traded futures market dow down 31. less than .10% of 1% let's talk about the good news we are in the middle of the dow's first five-day win streak since october. it has been a big run to start

the year first five-day win streak back into the fall. watching tech and nasdaq nasdaq is trying for a four-week win streak and its best month since july the nasdaq technically is right on the 200-day moving average. a lot to watch right now overall, a strong start to the year for stocks. bonds, yields have ticked higher 10-year treasury at 3.3% price of oil is ticking higher we are back to $82 a barrel. price of gas continues to rise the price of natural gas continues to fall. we are below $3 per unit remember, nat gas, above $9 in august one of the biggest declines in recent memory. moderate weather here.

moderate weather overseas contributing to the oversupply and lower costs. in crypto, below $23,000 and ethereum is $1,579 it doesn't close, but yesterday's high still crypto has been on a nice run lately let's get a check on the o overnight trade in asia and europe look at that wall of green next to arabile gumede in london arabile, a nice way to end the week >> yes, clearly in the black, is how the markets are seemingly trying to trade. a lot of green really is what we are getting across the board yes, there is a twitch with the ibex 35 going down there a bit you get a sense of sitting above the flat line across the european market.

very interesting to note the likes of h & m coming out saying they are looking at the operating profits and not helping markets. falling 7% on the trading floor and at the bottom of the markets. we still have other european retail news with sainbury and best buy group buying into the company. increasing their stake very interestingly, lvmh still resilient in the market despite the consumer having suffered a bit. now the reopening of china certainly giving more optimism as well. they are saying things are looking better as you can see, it has portrayed itself slightly better move across european market front in asia, we are seeing positivity across the board for most of these. not every market is very open

considering the fact we are still scelebrating the lunar ne year the nikkei and hang seng is in the green this morning as we said, lvmh is one of the key interests as well as that is the stock to focus on as china reopens. >> arabile, thank you very much. have a great weekend. to the top money story that is intel. intel stock slammed. it is down nearly 10% with a warning in the tech sector pippa stevens is here this morning. >> brian, shares of intel sinking ahead of the open. missing top and bottom estimates in a big way for fourth quarter. coming in half of what was expected things are worse with guidance

for the corrupturrent quarter, sees sales at $10.5 billion which is below consensus worse than even the lowest estimate on the street which was calling for $13.2 billion. call it a double whammy. when it comes to earnings, intel is projected q1 loss of 15 cents a share. shocking with the consensus which was a profit of 24 cents a share. again, the lowest estimate on the street was for a profit of 11 cents inn stelop stop -- inn tel looke crypto crash and other factors in the economy here is pat gelsinger with more. >> we provided the estimate for

the calendar year for pc consumption to 270 to 295 million units. begin the uncertainty in q1, we expect the lower end of range. >> the company says it will not provide sales outlook past the first quarter. intel is the lowest priced stock in the dow down more than 40% in the past year alone we will hear more from ceo pat gelsinger at 11:00 today brian, that stock getting crushed down 10% >> that will be some interview 11:00. pippa, thank you very much intel is not alone it is just the latest in the growing list of companies issuing very nervous outlooks lately that includes 3m and microsoft and verizon and more as the government stimulus wears off and the american economy looking

more troublesome all this as investors are gearing up for earnings next week and the busiest week of earnings yet with 20% of the s&p 500 reporting. let's talk about this and going forward with kevin caron at washington crossing advisers kevin, good to see you back on you have been more positive. you probably are not as surprised as many have been with this market strength like myself, like many trying to figure out, what changed december 31st, things were weak. january 3rd? things were strong what changed >> as you see with the earnings, it is not necessarily up, up and away we still have issues to work through. our own indicators are saying there is a heightened chance of rece recession. that being said, there was a reset. the environment today in the long run is better than it was

let's say a year ago for in inve investing. yields have risen and multiples have gone down for the stocks and bonds in the portfolio, you have a better entry point for stocks the difficulty is in the here and now. there are recessionary winds blowing. we are under weight in the top-down work. when you look at earnings, it is showing up every sector with the exception of consumer staples is reporting lower earnings or on track for the lower earnings than what was expected in the beginning of the year we still have tough sledding for longer-term investors who are in better shape. >> you are under weight now, but are you ready to change that, kevin, given the strengths things have turned around and money is flowing in. let's switch position.

>> our tactical work led us to be under weight equity most of the year we publish all of the work on our web site at wash washingtonadvisers.com the preponderance of the data has been weak most of the year that has led us to be under weight stocks. although we are under weight stocks coming into the year, i will say in the last month, we did increase equity allocation by the most, i think, in at least six months or nine months. still maintaining an under weight position. maybe we are starting to make a turn and that's why we increase the equity allocation to deeply under waeight to somewhat under weight what we are seeing in the earnings is we are not through the other side yet >> do you expect maybe not a re-test of the lows, kevin, but

this strength to not last and maybe the markets to make a downturn heading into spring or are these the gains we will get for the year and we will flat line the next 11 months? >> it could be choppy and volatile as a result, what you need to do in the portfolio is ask one question the vast majority of strategists out there are looking for recession of the you want to ask the following question if i'm invested for the long term and the returns will be better is the portfolio set up in such a way that the company will survive if things turn out worse than expected. washington crossing has focused on predictable and flexible companies. i think that is the way to go when there is this uncertainty in the world yeah, i think there's positive momentum we have increased equity allocation somewhat. we are still focused on quality

because the storm is still upon us we are not out the other side yet with valuations and yields starting out much better than a year ago >> kevin caron i love your points of view have a great day and weekend thank you very much. >> you, too, brian. thank you very much. when we come back on this friday, it is not just big tech. hiring headwinds bleeding into the consumer sector. we will tell you how coming up. plus, chevron monster buyback not good for one analyst which still has it on hold and new year and new issues for china? check out the supply chain heat map coming up. 5g network in america? (vo) when it comes to your business, not all bars are created equal. so switch to verizon business unlimited today.

welcome back time for big money movers on friday visa topping expectations. earnings per share up 21% from the year earlier stock two is hasbro. on that is going in the other direction after weak results for christmas and saying it under performed in the consumer products division due to the challenging consumer environment. it is also cutting 15% of the work force sadly, layoffs in corporate america keep coming as the economy is turning south speaking of that, stock three is bed, bath & beyond

selling off 20% yesterday. bbb has defaulted with the credit line with jpmorgan chase. warning of a potential bankruptcy that stock at $2.55. still on deck, artificial intelligence making waves in a very big way from capitol hill to the favorite online quiz to what hopes to be a market beating investment strategy. it is all part of the top trending stories and it is next when "wex" returns

look at that hong kong. it is nearly sundown their weekend is beginning no doubt, reopening and a little fun being had there on the streets and in the bars of hong kong the world's longest escalators we show you hong kong for a reason because there is trouble in the global economy. china is on the brink of a second wave of covid infections. all of that following the week long lunar celebrations. everybody out and getting together and there you go. this could be another test of the strained global supply chain. some insiders are sounding the alarm. we have lori ann larocco is

here >> reporter: it is a mixed bag some executives tell me the biggest concern is the disruption of the covid outbreak post-lunar new year. in the recent survey for container logistics, 73% expect the chinese lunar new year to disrupt. the spread was fast and went through the plants within days the heseverity was not as bad a employees were back in two weeks. this is the heat map to show you the state of the supply chain in china. ocean freight orders dropped 87% since june this is the lack of demand because of the bloated inventory. manufacturing is down 40%. we also have a new china heat map which shows the slowdown of

trade at the ports and trucking as a result of the holiday all of this, brian, points to delays of spring and summer items. >> i have never seen the heat map, lori ann, look uniform. it is like a lite brite. what are shippers telling you? >> reporter: what will happen is we will have a staggered return to work. we will have workers go the last week of february and the first week of march back into the manufacturing. this means the earliest products get on the water will be late march or april then it will arrive on u.s. shores by late april or may. >> that's it lori ann la rocco, with the heat

map. neither of us is an epidemiologist, but it looks like this time is different after start and stop and start and stop it seems they are getting back on track quicker than they were. is that a fair statement >> reporter: it is a fair statement. folks i've talked to are pressing and leaning in on how it is a more mild form of covid. so they know with the economy, they have to get back to work and fill orders or you will see more companies leave the country. >> that's it all right. china news something to watch love the heat map. always love talking ports and shi shipping lori lori ann, thank you. let's get a check of the headlines happening now with nbc's frances rivera in new york >> brian, good morning we begin in memphis where the city's law enforcement officials are bracing for the reaction to

the video showing tyre nichols beaten by five officers. nichols was hospital and died three days after the traffic stop all officers were indicted on thursday on murder charges. the u.s. military has taken out a top isis leader in s somalia. finally, mthe mayor of cincinnati presented an honor to the people who saved the life of damar hamlin mayor aftab pureval gave the key to the city. the mayor was at the game and was grateful for the doctors and staff at the uc medical center

we know the bills season ended last week. heartbreaking, but the best news to come from the team is damar hamlin and how he continuing to get better >> yeah. absolutely at the game and heroes who saved his life 24 minutes of cpr. frances rivera, thank you very much hear heartwarming story. as we head to break, look at the shares of adani group. all of the stocks are down for a second straight day. if you are not following this, you should be. the research firm announcing a short position earlier this week moreover, claiming that adani group founder and chairman, who was the third richest man in the world, is pulling, quote, the largest con in corporate history. all the numbers not fraudulent,

but close to it. last night, investor bill ackman calling the research highly credible and extremely well researched this is the $50 billion fight you should be paying attention to stocks are all down. a bk ghafr iswereacrit teth this is ge aerospace, advancing flight for future generations. ♪

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a growing number of companies signaling a tougher road chevron's numbers coming out soon off the blockbuster buyback and dividend announcement. one that ticked off the white house. and we are staying in the energy path. the sector's red hot run in the last year could fuel deals of mergers and acquisitions it is friday, january 27th this is "worldwide exchange. welcome or welcome back. good friday morning. i'm brian sullivan it is right at 5:30 a.m. on the east coast here is how your money is shaping up we are lower across the board. not a lot. red on the screen. dow futures are down 21 points nasdaq is off 54 despite that, we will see how

today goes overall, another good week for investment with the averages up between 2% and 3%. maybe here is an rbi dow and s&p on pace for the win three of four weeks. a nice run for big tech. nice run for oil it has been on the rise. oil is back at $82 a barrel. china demand recovers and the sugar high wearing off gas prices rising around america. oil hit $82 a couple moments ago. let's stay on energy shares of chevron announcing $7 billion buyback and raising dividend to 6% that comes ahead of the fourth quarter earnings out at 7:00 this morning overall, the averages that

analysts expect profit growth of 7% sales of 9% to $52.7 billion let's see what else is key to watch and bring in biraj borkhataria. biraj, thanks for joining us what are you watching for most closely with chevron >> i think overall, you get a solid set of numbers we are coming off a strong third quarter. we get a bit of moderation in the macro there. in the context of chevron's history, strong results. the announcement on the dividend was largely expected the surprise factor was the buyback program. the key question for us is what is this $75 billion? that is a top end of chevron prior plans.

ultimately that means the upside case is the base case from the macro standpoint >> you know, i'm not going to ask you to dive into the nasty world of politics, but chevron taking heat with the buyback why aren't the companies investing more in cap x? it is up $2 billion over last year, but still down $40 billion in 2013 from $17 billion for this year. is it a number of opportunities to grow profitable production? if not, what is it >> i guess here in london, i can make a few comments of safety from american politics this is a point i like to make first, chevron is growing in u.s. production. spending in growth cap x that will continue into 2023

that is ultimately a growth rate faster than oil demand growing globally that is a positive sign. the second thing is if you line up the top 20 shareholders, i imagine 15 of them would say we don't want to spend more in growth cap x we see how that story ends in all oil and gas cycle through history. we want you to be disciplined. you are being rewarded by the market a bit of both is okay. that's what they are doing i think they are doing what the shareholders want. be disciplined and don't chase high oil prices and stick to the plan >> you know, don't tell anybody, biraj, here is the secret about chevron. we talk about oil and gasoline, but chevron is kind of quietly become this liquified natural

gas big player with the gorgon project. how big is lng and how big can it be for chevron? >> it's actually relative to the european growth is smaller it is the still a meaningful cash generator for chevron they are performing well in australia. that is a significant source of profits this year. as you are looking forward, the hesitation from chevron is if you think of the projects that are executed with lng, they all had issues in terms of be execution. you have seen them do some lower risk in terms of being off the u.s. if you look at the portfolio, they are in oil production which means more gas production. then you need an outlet for that

growing as a taker of lng exposure and you listen to management and this is an area where they want to increase exposure to over the medium term over the dynamics of lng >> a lot of positives coming from chevron you have the 170 target. stock above that, biraj. why aren't you more bullish on chevron stock? >> i guess i'm looking at it in the global context it does scream expensive as it appears. there are fundamental preference which is exxon the two differences here is the first is exxon has a stronger hopper in the oil and gas business and exposure to qatari lng. chevron has exposure to refining that is the area we are positive

on in 2022 we think that will continue in 2023 the market is tight. you are seeing some impact from the recessionary forces. we expect that market to remain tight for some time. >> biraj borkhataria, we appreciate you joining us. thank you. have a great day >> thank you all right. you're welcome let's stay with energy deal making down last year in oil and gas in an otherwise big year for the stocks. deal making below pre-covid levels, but that may change. pippa stevens is back with more. what did you find out? >> brian, after the lack luster 2022, we could see a jump in m&a for 2023 total deal value came in at $58 billion across 160 deals which

was the lowest level since 2005. now energy companies are seeing a record cash flow and with healthy balance sheets, acquisitions could be more attractive this is especially true for companies that want to grow, but haven't been able to grow organically. the executives across the energy industry surveyed on what could drive energy in 2023 high and stable prices at 27%. production and cost and attractive valuations and asset prices were cited. and there will be a shift in the types of deals with fewer, but larger transactions. eap companies have proven they can make money, but the question is how many years of inconinventory do they have brian, the industry is forecast for $1.4 trillion for free cash flow in 2022 you have to do something with

the money. >> or do stock buyback and get yelled at by the white house. pippa, what deals should we look ough out for here >> we will see small caps. they may look to the private side for the acquisition that may line up with private equity companies in the space and now looking to shed some of those assets also the low carbon solutions businesses might be another area to watch we saw last year that chevron acquired natural gas company bp closed on the transaction that may be another way to say we are cutting emissions and putting that cash on hand to good use >> all right pippa, appreciate it thank you. on deck on this friday, we dive into tone of the best

performing industries. dominic chu will talk about how it is holding up this year. and a rundown on the trending stories and a.i the congressman delivering the speech on the house floor using chatgpt. the massachusetts democrat said he prompted the system to write 100 words to the house, but he had to refine it to reduce it to the final paragraph. and buzzfeed relying on chatgpt for the online content to make it better. in a memo to staff, it says it expects the software to play a larger role in the editorial and business operations this year. ouch speaking of good news that computers are not yet ready to take over the world, chatgpt

failed, sort of, at creating an etf for the stock market according to the exercise, the ai tool said the market is simply too predictable to guarantee future results and investment should be based on individual goals and risk taking appetites. apparently chatgpt has been having drinks with resident investment advisers. we're back after this. prizefighter... ...meets trailblazer. ♪ ♪ classic meets modern. ♪ at morgan stanley, we may seem like a contradiction...and we are. ♪ ♪

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welcome or welcome back. good friday morning. it is time to get dom ed out with sector no,nomics what are people saying this year dominic chu is here with the sector nonics. >> they lost steam brian, the utility companies have been seen as income paying dividends. as interest rates go higher and people make more money on bond investment, they shy away from the types. they have been out performers, but let's look at just the reason why people look at this

outhis utilities are 5% or rather 3% of the overall s&p 500. materials and real estate are less energy is 5% remember, the big one is technology with the energy run we have seen, it is still technology five times bigger than energy and roughly seven times bigger when it comes to what influences the sector overall a handful of stocks on the sector a lot of names nextera energy f duke is 7% southern company and dominion and sempra these are 40% of the overall s&p 500 sector it is the biggest of all of them by the far let's hone in with nextera it is $150 billion utility

company. it has been out performing over the sector you can see almost double that nextera is the big reason why that utility sector performs the way it does. check this out $151 billion largest weight in the sector 71% pof analysts say buy. none say sell. the dividend yield is below market at 2.2% brian, so many people have considered nextera the best pick in the sector. they have been at the stock price enough where the yield has come down. back to you, brian >> you are like a heart song the magic man on that teles telestrator. somehow you write and it is legible. when i write, it is like a chicken scratch.

nextera energy if we had an rbi, i would say it is former florida power and light. it is now the largest renewable producer in the united states. that said, dom, you are a former fund manager utilities are the closest thing to bonds that we have. what are you reading they don't grow. they get a nice dividend is that a nice safety play >> safety is a relative term in the markets. when we talk about safety, yes, they are less volatile if you look at technology and communication services and consumer discretion, they are more stable. they are income producing instruments. for that reason, some portfolio managers will use allocations there to get some income with the stock like exposure.

i will point out dividends are a big part of the story. a handful of stocks in the index now have dividends above the overall sector by the way, brian, that is a great way to tee it up in "squawk box," we look at the dividend payers with a relative amount of price performance on the balance sheet. we will see how that happens later on in "squawk box. >> you will not tell us. it's called a tease. you will make us wait. >> 45 minutes. >> dom, good luck to your 49ers this weekend, my friend. >> i'm a little nervous. i think i have to be faithful to the bay. >> only be nervous are you going to the game? only be nervous if you are going in 49ers gear to the linc. >> i could just stop at your house on the way down there. you are pretty close down to

philly i'll swing by. >> you don't want cramer to throw pretzels at you. dom chu. >> no. >> don't talk to jim give him 48 hours. dom, thank you >> you got it. on deck, lizzie evans is here to read the tea leaves from the consumer and if you have not done so yet, follow us on the podcasting platforms. we're back after this. >> announcer: sector nomics is sponsored by sector spdr etfs.

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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 back time now for the wex wrap-up it will be a nasty day for intel shareholders stock sinking. down nearly 10%. it is off 9.2% with the whiff on

expectations in the fourth quarter. they forecast another weak quarter ahead. ceo pat gelsinger says demand is falling. a lot of questions for intel an thon the flip side, visap for the quarter. and hasbro is down due to decrease in demand and announcing a number of layoffs. and elliott management looking for salesforce board of directors. kla is expecting to use existing inventory and the demand will slow are you seeing a trend by the way, sadly, new jersey

based bed, bath and beyond warning it doesn't have enough cash to pay down the debt and defaulted on the credit line with jpmorgan chase. that stock up a little bit right now. overall, keeps falling $2.50. become a trader favorite the company basically saying they are going out of business be careful if you are trading bbby all right. gearing up for the trading day ahead. personal income and consumer spending and core pce figures. all out today at 8:30 this morning. pending home sales data out at 10:00 a.m. a lot of earnings for friday american express and monster fl numbers from chevron and colgate. we are watching the musk

shareholder lawsuit today and the stress test in the eu. results will be published later on this year i know, you can't wait investors still digesting the lousy thursday afternoon with guidance with intel and hasbro with issues with technology and the consumer. yet, the stock market has had a great start to the year. lizzie evans is here with us l lizzie, thank you for getting up early in indiana i don't know what is going on. laying off, cutting and stocks are going up make sense of it for me. >> good morning, brian thanks for having me congrats on the new show that's a big deal. >> thank you >> we have a lot of questions from clients recently. since the first of the year, we

have seen growth stocks take off. is this a short-term rally or is growth where you want to be? we think this is a short-term rally. you are seeing and brian, you know better than anyone. we are in the middle of earnings season revisions downward that coupled with the fed path to tightening means i think we will have a path of volatility it is not all doom and gloom we will have positive returns in equities and bonds i think that the winners of the market today and market of the future look different from the winners of the past. >> yeah, by the way, i appreciate that. thank you, lizzie. it feels to your point, that last bite of dessert you know you don't need it, but you want it and you eat it and you said why did i do that

that's how the market is right now. i can't swear the strength to say throw a bunch of money at it what are you advising clients to do >> brian, behaviorally, people want to go back in money we are getting a january effect there. you look at the market and there are certain parts of the market that are in a bull market. i think value will continue to out perform. there are some companies that have a nice dividend yield that are trading at a cheap multiple with earnings growth that is where you want to be if you are an income client, i think for the first time in a a long time, bonds are looking attractive from the equity standpoint, you want to look for value i think bonds for the first time in a long time are starting to add to bond allocations. >> you know, all of these shows

like "yellowstone" and "1923" i feel we are living in the past from the inn vevesting perspect, mining is the hot thing. to make all of the zero emission engines, you have to dig stuff out of the dirt in the middle of australia. is that a reason you like rio tinto? >> it is commodities and materials. that is a sector we like rio trading at nine times forward earnings has a 7% dividend yield. brian, look at the chart the chart has a very strong set up you have seen consolidation with the break to the upside. the new rio post-covid has a shareholder friendly capital allocation model certainly rio will do well as

china reopens. with rio, you get a 7% yield an you have international exposure and it is set up to do well. >> what is the next big thing you are watch withiing from theo perspective? >> a lot of big reports coming out. the fed is a lagging indicator of lagging indicators. we need for the market to have a full bull market going forward, we need to have certainty where peak rates and when rate cuts stop i think we're getting closer to that i expect we see 25 basis points in february. we will have to continue to slug our way through the reports to really have the fed to make that decision >> all right lizzie evans evans may wealth in indiana.

we'll talk about that next time. lizzie, thank you. that does it for us here on "worldwide exchange" for friday. i'm off on monday. i will see you here on tuesday all kinds of earnings coming out. stock futures are down oil is up. yby.have a spectacular weekend, everod please, "squawk box" is 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. 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.

good morning futures weaker so far, but a long way to go it's showing signs of life in the dow. down 10 points and vicesa and chevron reports. and ugly guidance for intel. not just that chipmaker's

problem. we will tap into the sector. intel hasn't suffered two successive quarterly losses in the past three decades that's a possibility depending on next quarter. layoffs outside of the tech sector hasbro slashing jobs is the labor market going -- in the labor market it is friday, january 27th "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 andrew ross sorkin along with joe kernen. becky is off today we have a lot going on for this friday with the boys three and a half hours before the market is set to open. we would ope