it is 5:00 a.m. here at cnbc headquarters here is the top "five@5. from the tear to the tumble. the nasdaq takes a ride. set to open up sharply lower this morning and a trio of trouble in big tech headlined by apple tdoing something for the first time in years. and alphabet and amazon adding to the sour taste. and gamestop and bbby and now aaron cohen has a new share

surging. and adani shares lose another $30 billion in overnight trading. the latest in a moment later on, bracing for beyonce. how ticketmaster is looking to avoid the taylor swift debacle it is friday, february 3rd you are watching "worldwide exchange" here on cnbc good morning i'm frank holland in for brian sullivan thanks for starting your friday with us. let's kick off the stock futures. red across the board the dow is opening up 100 points lower. the story is the nasdaq. it can open up 1.5% lower. this is a reverse from yesterday. shooting up 3.5% this on the heels of the massive pop in meta shares and best single day gain in a decade.

you see the move right now the jump right here. big day for meta a lot of people looking at the stock and making money down in the pre-market right now. not just tech on the tear. tr transports, trucking and planes. up 8% this week. on pace for the big week from march last year. jetblue, old dominion leading the charge big moves for the stocks double digit moves fedex with the 12% rise on news of layoffs of managers and other people at the shipping company. let's look at bond yields. down from the high yesterday we see the inverted yield curve. that is something we watching as a possible recession indicator and turning to energy.

oil down 5% this week. you see the moves for oil, wti is up fractionally this morning. you have to pay attention to crypto bitcoin up more $24,000. big more for the cryptocurrency. you see it has fallen below to $23,420. year to date with a big rise with crypto. that's the early look here let's check overseas with joumanna bercetche in the london newsroom good morning, joumanna >> hi, frank for the most part, the stocks are doing well the stoxx 600 is up slightly we had eurozone ppi numbers and plus 24% on the year that is higher than expectation. also we had final eurozone pmi numbers coming in better than the flashes estimate more positive on the data front

when it comes to the macro data. of course, the major decisions yesterday from the ecb and bank of england both central banks hiked by 50 basis points we see ramifications with the interest rates the dax in germany is down i want to turn attention to another major story that we have been talking about overnight that is what is happening with adani group. shares in the group shed 50% of the total market cap since hinderberg research accused them of fraud totalenergies said they represent 2.4% of the total capital tied to adani of $3.1 billion. we don't have totalenergies

here the reaction is not negative in the stock. it is positive you see the picture from the adani companies significantly pulling back today down 10% for green and enterprise was down 30% in whole. shedding more than $100 the bil o -- $100 billion in value sinc the report came out. thank you, joumanna. the top story has to be a triple threat silvana henao is here with more. >> reporter: shares of apple and amazon and alphabet down sharply in the pre-market and set to give back the gains from yesterday at the open. first off, apple the isis postie first quarter miss since 2016. most on the street knew apple was facing headwinds into the quarter. think of trouble in china with manufacturing and falling

demand many are still stunned by the report which included sales coming in at 3% below consensus and biggest miss in more than a decade a rough night for amazon topping fourth quarter sales for the company, it was quarter one guidance and tough year on year comps cloud services growing 20% in the quarter. down from 27.5% in the third quarter. here is ceo andy jassy on the call last night. >> we are working really hard to streamline costs and trying do so -- trying to do so as we don't give up on the broad customer experience and change amazon over the long term. i addressed directly the north american stores questions. i think the number one priority that i spend time with the team on is reducing costs to serve

and operations network >> one bright spot, however, advertising. posting a 19% year on year growth and finally alphabet the company will quote meaningfully slow pace for hiring for 2023 as it faces a range of higher costs and slowdowns in advertising especially on youtube. here is the ceo sundar pichai. >> the macroeconomics climate has become more challenging. >> for the quarter, alphabet missing across the board from earnings and revenue to ads and cloud, frank >> silvana, a lot going on we appreciate that silvana henao. see you later on. turning attention outside tech running out a busy week for economic data. central banks decisions and corporate earnings

joining me to discuss is mary ann bartels and adam coons great to have you here we will jump in. we were talking about this with silvana a moment ago about the earnings we don't want to focus on tech too much, but what we saw from alphabet and amazon and apple. does that change your view mary ann >> thank you for having us we have been in a group of growth in a bear market. we still believe these companies are in a bear market we called it the covid bubble with the stimulus money that went into the names and really expanded valuations. they are just going through a period of valuation compression. these are great companies we believe with the digital tech in the long term, but in the near

term, this is not where you want to be. the fed did pivot and we are seeing a risk on there are pockets of tech we like and we are focusing more on the semiconductors >> interesting i'll talk more about semiconductors later on. adam, the same question. everybody is a long-term investor when your clients see short-term losses get concerned what is your concern with tech and portfolio balance? >> a similar story the problem is we came off a couple of years where tech really took off. valuations got stretched everyone was in the fomo phase where we were chasing returns. a lot of investors chased names that the story behind the stock was the driver, not the fundamentals 2022 was a year of resetting resetting valuations

what we will look for in 2023 is a shift toward higher quality tech companies that is where we are focused with amazon and alphabet and apple. it is really about the underlining fundamentals and resetting valuations we like tech, but we are selective with the names within tech >> a common story. people are looking for profits and free cash flow whether it is tech or not. i want to talk about scentral bank decisions and the ecb and our fed with the 25 point basis hike the comments from jay powell, were those surprising to you, mary ann did he suggest or maybe lead us to a possible pivot? >> we're seeing the tone definitely sound like a pivot. using words like disinflation. inflation expectations anchored.

really seemed to have more of a dovish tone. definitely not what i was expecting given how hawkish all of the statements have been going all the way back to jackson hole in august you definitely have seen the market really now price in we're not going to get to a terminal rate of 5% the back half of the year, the market is expecting rate cuts. i'm more comfortable saying that this rally has some legs i think we can rally into the summer we still have to deal with the debt ceiling the markets have had a great move they are overbought. we can get consolidation the technicals of the market are telling us that this move is for real >> adam, what do you think what you heard from jay powell and the jobs report today and then next week with cpi and on the 24th with pce. how important are the reports

starting with the jobs report today. >> -- today >> i think the fed has shown no intention of moving away from the tightening policy. the market tries to front run the fed in the way they think there will be a pivot. they think there will be a pause. we need to stop trying to guess what the fed will do and listen to what they said. we think that the bond market has this right in the sense that interest rates are coming down because the fed is going to continue to tighten. even when they pause, you will have quantitative easing which will remove the liquidity that we had in the market for the last, you know, decade what we think is happening is the interest rates curve with the 10-year from 4.25 to below 3.5 is driven by the fact the economy is headed for recession.

everybody has gotten it wrong here with the stocks the equity markets think the interest rates are coming down because the fed will pivot at best, the fed will pause, but it won't change the dynamic. we think there is still pain for equities >> mary ann and adam, thank you. when we come back on "wex," taking on tesla in the ev pricing wars the latest in a moment. and ryan co- hen has a new target that is the mystery chart you see there. and the triple threat. three aaas and investor sentiment about to make a shift. stay with us at "worldwide exchange" continues in a moment.

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welcome back we are watching shares of ford moving lower down 5% ahead of the open. missing street estimates for the fourth quarter and missing guidance by $1 billion ford citing execution and chip issues with the operations this is as ford is in a price war for evs with tesla and the mach-e drprice drop we have philippe houchois with

us >> good morning. >> we have supply chain issues and chip shortages how much is supply chain and how much is management execution i think we have seen a glut of chips on the market. they need specialized older chips. was this on management to go and say this is what we need i imagine ford is a blue chip customer >> i think the supply chains are not back to normal, no doubt they have been easing and things are getting better we heard from ford yesterday and for several quarters operations have not gotten under control in the way at gm a lot of that is on the ongoing issues with the supply chain >> you heard the call. you were listening where are they with the chip shortage is this a headwind going into the next quarter

>> i don't think so. if you look at the moving parts of the guidance for 2023, they expect a bit of reversal of the c cost incurred in 2022. the supply chains are improving. chips are improving. there are a number of tailwinds for them on the cost side. h headwinds at ford and gm >> philippe, the price war is ford ready to compete we hear tesla with the control over the supply chain and margins with the production to afford to reduce prices without hit too hard can the other automakers trying to catch up to tesla do the same >> it is a different machine there is a higher profit with tesla to begin with. the costs are improving. they have a big leverage to growth they have the costs go down as

they grow. the fixed costs are high and leveraged d r&d. the underlining growth is the market at best a small variation. tesla can absorb more pricing cut because of the profitability. there is something about the way they get the growth to help the cost base as well as fixed cost base leverage. >> what you saw and heard from ford and tesla, are you changing rating on stocks >> we do like tesla. we have been taken back over what happened in the course of 2022 a lot of issues that we knew about whether it was governance or weakness in the markets from the base, the products are

strong ford and gm has costs there. they are improving, but they are facing pricing pressure in a bigger way over time, tesla's impact is immediate and ford and gm will take several quarters. >> philippe, thank you coming up, swift level meltdown in the making and gm's deal with netflix the top enngtrdi stories when "wex" returns. you don't want to miss this beyonce story. stay with us you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the world.

welcome back to "wex." let's get a check of headlines with frances rivera in new york. happy friday, frances. >> good morning, frank we start with the pentagon tracking a suspected chinese spy balloon over the northern u.s. president biden has decided against shooting it down over debris or causing injuries on the ground it comes at the time of high tension with china and the u.s. and secretary of state blinken about to visit beijing china would not violate another country's air space. the south is thawing out after the winter storm claimed eight lives. the slick situations for many. the heavy ice downed trees and power lines leaving hundreds in the dark and cold this morning texas hit the hardest.

she said i'm over it. a jackknifed truck crushing the police suv and sending to police officers to the hospital with injuries. and ak particularrctic air is ro zero. and wish the g.o.a.t. in your life with a goat gram instead of flowers and chocolate, you can visit the goats on the 13th and 14th instead. frank, back to you >> that is a lot more imagination than flowers i don't think it is for everybody. frances rivera in new york thank you very much. >> you are welcome. as we head to break, watching shares of clorox popping in the pre-market. maker of brita filters to glad

bags posting 50% earnings against consensus. the take from the quarter and the standout from p&g. offsetting higher materials and shipping costs clorox is peinexctg higher margins this year. "wex" is back after this stay with us ll prescription-str? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.

the nasdaq set to pull a u-turn after the best start of

the year since "jaws" topped the boxes office. the losses fueled by the a team amazon, apple and alphabet we dig into the numbers to see if it is doom and gloom. and fueling are yreturn to office people are ditching the remote and heading back to their desk it is friday, february 3rd you are watching "worldwide exchange." i'm frank holland in for brian sullivan thank you for waking up with us. let's get to the markets and see how they are shaping up. you see futures are starting off in the red dow could open up 100 points lower. the nasdaq down more than 1% right now. we are really watching this. apple, alphabet and amazon

wayingiw weighing tech heavy on the index. marking the best start of the year since 1975, since "jaws" was at the box office. meta helping to lead the charge. the shares down 2.5% in the pre-market this morning. let's check the bond market. 10-year treasury is 3.38 lower than the high yesterday. the inverted yield curve is something we note with the recession concerns energy markets here and oil is down wti is $75 a barrel we want to talk about wti crude at $75 a barrel that is lower than the start of the year continuing to wait for the chinese reopening. let's check on the top

stories with silvana henao who is back with those good morningn't hap n n't -- go and happy morning. >> ryan cohen has taken a sizable stake in nordstrom he is making changes to the board following the steep drop in the price of the stock. the journal adds cohen is aiming to replace one director with a focus on former bed, bath & beyond ceo cohen believes this is conflicting. the shares of adani continues to drop. reports of adjusting some of the companies with scheduled bond payments and the firm's owner was in talks with creditors to prepay loans that could free up stocks in the

company's group pledged as collateral and shares of trading in silvergate after the collapse of ftx. investigators are probing the issues with alameda research ville -- silvergate could be under review frank. the nasdaq is taking a tumble with the weak reports from apple and amazon and alphabet the first revenue miss for apple since 2016 expecting to fall at a similar rate amazon issues guidance with growth rates for the cloud business expected to slow for the next few quarters.

alphabet posting the first drop in ad revenue since the beginning of the pandemic. the ceo reminding people on the call yesterday with the commitment to ai let's talk about this with richard kramer richard, thanks for being here >> thanks. >> what is your take on the a team apple, alphabet and amazon what is your issue with the trio of companies is there one theme you need to pay attention to >> you need to look last the beat versus miss you need to realize all of the companies where stocks went up yesterday and came back after hours. all have tremendous recosources. returned $24 billion to

investors. google with $100 billion of cr cash when you think about the application of ai, it is the hyper scalers who need resources to productize what ai can bring. >> i want to talk about alphabet and aemazon. isn't that product line maturing i think the loads that were easy to move and now companies are taking time on their decisions why are people judging 20% growth harshly? it is still growth >> clearly there is a consumption to the cloud which is slowing down. part of that is overall economic activity is slowing down you see that in amazon which is the u.s. retail market you see it in apple talking

about a challenging macro environment. although iphone business would be flat or up substantially if they didn't have the foxconn issue. there are slowdowns in the wider economy. that is leading through consumption. there is some demand destruction. all of those apps we are spending on cloud services are no longer in the game to be able to spend that money in the same way. as you saw all three companies talk about efficiency and cost savings. every other company is doing that, too. that will impact the cloud business >> we are saying the same thing. 20% growth 32% growth when i turn to ai and last year when google purchased mandian. we thought there would be a race for cybersecurity and hyper scale offerings. how does this play by microsoft to invest in chatgpt

>> one of the things you saw in alphabet and headline of our comments this morning is the company is in transition from ads to ai. we wrote a piece in 2019 about the next $100 billion at google. we talked about ai as a service in 2019. now it is starting to come to fruition in the same case with amazon, they had years long investment in alexa, but not able to bring that to commercial service the challenge for the companies made huge investments is make sure they have the hyper scaler infrastructure to deliver the services or products at the lowest possible cost you see amazon and google and microsoft all continuing to invest huge cap ex >> we heard ai 59 times.

what are you expecting with amazon and alphabet? will they have the ability to offer ai we heard ibm focused on ai and looking at both organic and inorganic growth in the area >> we have been saying for five years that big tech would make no large acquisitions because they would be afraid of the regulatory blow back you look at microsoft activision with the full second year and no decision until may i don't think any of the companies are going to look to make any large scale acquisitions that said, they are attracting talent and you saw the job cuts at amazon and apple -- sorry, at alphabet and others. they are still building up the areas. make no mistake. they are using the cover of the economy to clean up the organization and make sure they are focused on ai.

i don't think there is any major acquisition for companies at scale, but i think they will continue to bring in talent as much as they can i think the 150 plus startups of ai are hoping to be bought by microsoft and google >> speculation of m&a. give me your top three picks. >> if you look at apple the ou -- if you look at apple, they have have 2 billion active devices. yes, they will go through cycles where replacement length eens on products they have not tapped into the services business which hit a record level in the quarter. if you look at alphabet and amazon, it will spend most of 2023 materially reducing the

cost space and come out in 2024 in a better position. >> certainly a lot to watch when it comes to mega cap richard, thanks for being here >> thanks. just three hours away from the release of the january jobs report impact of the layoffs is uncertain. the job cuts have an uptick in employees who want to come back to the office and work robert frank joins us now with more robert, how big of a jump are we talking? >> frank, this is a meaningful milestone. half of the nation's office workers are back in the office on the average weekday office use for the ten biggest cities hit 50.4% last week the first time that it passed the magic 50% mark since the pandemic there are big differences. austin, texas is at the top at 68%. san jose at the bottom at 41%. new york is now at 48%

the actual number could be higher the survey of new york's biggest employers for the partnership of new york found 52% of manhattan office workers are now back. only 10% are fully remote. that is down from 16% this fall. most of the new york office workers are in at least three days a week now. the new normal for new york, say employers, is 56% of office workers back the industries with the highest office rates are real estate, finance and law. tech is among the lowest la labor experts say it is driving more back to the office and ceos are cracking down. starbucks are saying if you can be back in the office, be back three days a week. disney is starting at four days a week in march. >> you have to watch the sweat pants makers

thank you, robert. coming up, the white house taking aim at some stock buyback blowback jimmy pethokoukis lays out the catch-22 that washington is facing. some of the top trending stories. hong kong giving away plane tickets to kick start the reopening of travel. ticketmaster is gearing up for what is expected to be high demand for tickets to beyonce's world tour it is her first solo world tour since 2016 ticketing for the north america tour comes monday and comes after the taylor swift botched ticketing. and electric vehicles from gm and other automakers will team up with netflix it will show in movies where it

is relevant as netflix calls mo sustainable future. "worldwide exchange" is back in a moment stay with us

welcome back time for the big money movers. first up is starstarbucks. shares down 2% weak international demand in china continues to weigh on results. the cfo will have more on the first on cnbc interview on

"squawk box. and atlassian shares posted a loss for the quarter difficult conditions were putting pressure on with existing and newer customers finally, qualcomm beating on e and missing on revenue it expects an 18% revenue decline in the second quarter due to the weaker market and covid lockdowns in china the ceo stating they are pr preparing for a difficult quarter. major share buyback announcements with meta doing so with the $40 billion initiative and that comes on the chevron $75 billion plan bob pisani points out that before meta announcement, there

were 44 in january all announcing programs worth $5 billion or more. overall announced buybacks have tripled to $132 billion from a year ago so far, it is big oil feeling the wrath of the biden administration going after chevron and exxonmobil over the record profits m for more, let's brian wing in j pethokoukis. >> thank you, frank. >> jimmy, do you see the white house speaking up or intervening when it comes to buybacks from the other companies? meta's $40 billion is not chump change >> this is why the issue drives me crazy and politicians drive me crazy the fact we pick and choose companies to complain about

which may have more political oomph in the political environment shows there is not a strong economic policy case for complaining about this look, when you have companies paying low tax rates because they invest a lot in r&d, they take advantage of the tax breaks meb meant to do that now they are not doing that. they are using that money to buy back stock and paying dividends. they get bashed for that these are companies that buyback stock and have nice dividends. these are out performing stock the problem is that they don't fit into the political environment at the moment. >> a big question for investors is how real if you put a number on it is the biden administration doing something to curtail the buybacks?

in many cases, you see the buyback and the stock pops for the idea they are a shareholder when you reduce the number of shares, your shares are more valuable. how real of a risk is this with buybacks to invest in for people >> i like to say shareholders are owners not just fat cats. people who own these companies in 401(k) or investment funds. the reason i put something happening in washington's environment is normally you have republicans saying leave these companies alone. no evidence that it is bad for the companies. they have their problem with big companies who buy in to a particular agenda republicans are pushing. there is a zero chance, but if

you round it, it might be zero >> if you round it down, it might be zero. bob pisani has a good story on cnbc.com it is a broad range of companies with buybacks. if you don't think washington is doing anything, we had some talk last year, but is there anything else coming up that would make that not a wise decision for the companies in 2023? >> that instinct is when washington had to serve slight taxes here remember, that happened when democrats were in control of washington these companies are an easy target we are in an age where few people will jump at the $400 billion company. that is why politicians have their plans to put out

for something making its way into legislation is not something. that is always headline risk i don't think it is substantial risk >> jimmy, you mentioned a norm th -- normal environment in d.c. jimmy pethokoukis, thank you very much. >> you bet more coming up on "wex," investors gear up for the monthly jobs report. adg ayout what to watch in the trinday ahead. "worldwide exchange" will be right back stay with us

welcome back time for the "wex wrap-up. apple reported the first revenue drop in seven years. amazon shutting down the fresh stores as it looks to cut

costs. the company will pause expansion of fresh stores. kohl's naming tomorrow kingsbury as the permanent ceo carlyle group is pushing for former goldman sachs executive for ceo. and beyond meat is looking at costco, walmart and whole foods. it will hire a new executive as it deals with declining sales. ford with an ugly fourth quarter citing execution issues. falling short of expected sales by 100,000 units and it is looking to cut costs and potentially adding to layoffs. it is jobs friday. the january employment report is out at 8:30 a.m. eastern unemployment looking to tick up.

cigna and regeneron are expected to report today. turning attention back to futures. a banner start to the year for stocks barring rough moves. nasdaq is on the move the exiting bear market territory. sitting shy of the 20% gain from the october closing low. let's talk about it with steven wieting at citi global wealth. i wantcoming up. some people believe jay powell was hinting they are leaning to a pivot. no hard statements how important is the jobs report or unemployment lead to the idea of a pivot or pause that the market is looking for today?

>> it will cloud the picture it is winter economic data the month of january on a seasonally unadjusted basis normally let go 2.5 million people for seasonal reasons. leisure and hospitality is one of the categories. it had a pent-up demand. in the fourth quarter, it was a shortfall of jobs in that position i think we will have an above consensus employment report. that is despite the fact the underlining situation for labor demand is weakening over the course of the year you can see it in the layoff announcements. you can see it in the output plans of companies after the massive rise of ininventory. the sales level can bottom, but not production level it will have large job losses. i don't think you will see it in the january data it may reignite fears the fed will stay on its path and

continue with short-term increases. in the end, we are headed to higher unemployment this year. >> it sounds like you are saying there is risk in equities with the jobs report and fed move down the line. where would you allocate is the place to be bonds >> they have done well over8.5% the 10-year treasury is expected to fall to 3% by year end. look where they have gone. from 4.25% to sub 3.40% this morning. we expect the u.s. dollar after the strengths of the last year to fall back the fed has moved more rapidly than other central banks they are straining the economy more than the markets expect the move we had, including the rocketing back of the equities it is subject to setback

in the end, getting the inflation rate down and getting the worst of the economic data out of the way sooner than people think can be very good for our markets. i just think markets have been a little too soon to think we can get rate cuts with diminished inflation without economic news. >> you are talking about u.s. markets. we saw a move by the ecb this week which was expected. what is your view with european stocks and asian stocks in general? >> it is improving we raised our global growth forecast while cutting the u.s. side china reopening has a lot of pent-up demand europe, most clearly, is not a growth paradise. it is losing strong energy shock from last year that sank its economy. we allocated for money there these are cheaper markets with lower expectations >> steven, thank you for being on and insight

we are looking at futures down in the red. dow looks like it could open 100 points lower nasdaq 1.5 an% lower. something to watch with amazon alphabet that is it for "worldwide exchange." "squawk box" is coming up next ♪♪ i was having relationship issues with my old bank. it was just take, take, take. so i moved to sofi checking and savings. get up to 3.75% interest, and earn up to $250 when you set up direct deposit. sofi. get your money right. i screwed up. when you set up direct deposit. mhm. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too.

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good morning three mega cap slightly less mega cap tech companies out with disappointing quarterly results. apple, amazon, alphabet all falling in pre-market trading. nordstrom shares soaring after ryan cohen has taken a large stake and plans to push for board changes. jobs friday. we will tell you what to expect from the january payroll and

wage numbers on this february 3rd. when is groundhog day? >> it was yet. >> what happened >> six more weeks of winter. get used to it >> shocker "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the at&t pro-am at pebble beach. i'm rebecca quick along with joe kernen andrew ross sorkin is in times square >> good morning, good morning. it is very early for you. >> it is we're still on east coast time >> 3:00 a.m. exactly. >> speak for yourself. >> i'm still on east