good morning it's 5:00 a.m. here's your top "five@5. january inflation numbers coming in hotter than expected. investors weighing in on what that could mean. expect a higher than expected read. there appears to be a major shift. you've got brian moynihan and david solomon weighing in. the banks may be bullish, but buffet and others are taking

a new bearish look at some of the key financial holdings we're whale watching. and what did elon musk do on super bowl sunday to even the playing field? and later the get out and travel trade going strong as an industry bellwether posted a better annual profit look, this is wednesday, february 15th, 2023. you're watching "worldwide exchange" on cnbc. ♪ good morning, everybody. i'm contessa brewer in for brian sullivan this morning. let's kick things off after a mixed day for stongs that saw the dow lower and the s&p and nasdaq flatten out as you can see, futures are in the red.

we've got the dow futures down 62 points. investorers are can'ting to digest the cpi report showing inflation growing at a higher than expected rate let's check the bond market near the 10-year holding steady you've got the 2-year note lower and the 10-year as well. in energy, oil is making another sharp move lower brent off by 1.2%. gnat gas is down 0.75. in crypto we're seeing bitcoin under pressure hovering at 2 x $2,000 off 0.2%. let's get a check on the overnight action in asia and the early trade in europe. our arabile gumede is standing

by in our london newsroom. >> the market has been faltering a little bit but it's now shifted into some positive territory some of the readings, we'll touch on the u.s. inflation number coming in a little bit hotter than expected, but on the uk side, 10.1% is what the figure comes up to with that inflation number that's better than initially anticipated and lower than the 10.5% reported previously, but ill's still double digits. as i noted, then, of course, the interesting part will be the earnings numbers that come out today. moving generally in what was a positive movement now having seen the ftse in quite negative territory.

speaking of numbers, heineken posting a 24% increase in operating profit. on the other side of the brand, we have the luxury brand, kerring sales. gu gucci's revenue jump 14% despite missing expectations, it's had a very encouraging start to the year as china reopens. it also has a new fashion lead teller as well coming to the floor which will take over very s soon it's due to costs related to overselling in the united states the bank reporting a pretext profit of 7 billion pounds below

analysts' expectations the bank refuted a report that it's winding down. barclays says its technology platform will pause on board new retailer market. that's a look at europe. >> thank you so much for that have let's get a check on some of the top story this morning. big moves by money managers. silvana henao has more. >> hedge funds were very busy at the end of 2022, and investors are finally getting a look at their books. among that, building a stake in disney that's a sharp change from the previous quarter where it dumped its 50,000 share in the company. temper also building and adding to his position in sales force

le mich michael burry added to his portfolio. it's up 85% after announcing a $450 million investment in the company. and he added to a tune of 4.5. >> there might be a lot of traders getting a cue today. barackback to the broader markets, wall street changing their tune on the economy, the odds of a recession, and if the bank can pull it off david solomon said the consensus

has shifted to be a little bit more dovish in the ceo commitment that we can navigate through this in the united states with a softer economic landing than what people would have expected six months ago brian moynihan yesterday. >> they voted out another quarter recently to start the third quarter, fourth quarter, next year, maybe people are coalescing that maybe it's not a soft landing but a more mild recession. >> key bank ceo chris gorman says the consumer is extremely resilient. >> i think it will be a particularly deep recession, but the reason i believe rates will stay higher for longer, i think it's going to take some time for the consumer to really burn

through the excess cash that they have, and i think it's going to be a long but stable road >> let's dine in the chief economist joins me on this wednesday morning it's good to see you when we're talking about this view that the fed may have to keep raising rates, that inflation is not coming down as fast as we might have hoped, does it seem like the market is struggling this morning? >> it does indeed feel like markets are starting to get compl complaisant. there's two ways of reading the tea leaves ochl on the one hand, we've been busy with this recessionary rhetoric for over six months

the second point that's obviously important is that the fed is really working off backward-looking accounters. instead of forward look, backward looking they're going to want a few kuhn sis tent quarters of truth that inflation is coming down to a more stable level. there the markets might be a little ahead of itself. >> what are you looking for to indicate that we're still on this decline and headed for a soft landing the labor market still seems to be a sticky concern. >> if you look at the baskets of

inflation, the airy most people are zooming in on is services inflation, which is very much triggered by wage inflation, and the issue with wage inflation is it tends to be quite sticky and quite self-fulfilling. and that's something we're watching with the data we received last week. >> are you seeing signs still to come of a recession? we're hearing about a soft landing. maybe it's not going to be as bad as we initially feared what do you think? >> look at all the major outlooks of all the major players. the word "recession" is plastered all over it. number one, europe europe has moved away from this sort of dire senn arroyo to something much more benign thankings to better weather.

that's important the other thing that's important. i think begin sometimes you miss the point. monetary policy is supposed to be a key tool to calming down inflation. you almost have a contradiction. we come from a world, whenever there's a problem, let's throw money on they's the world we've come from we've started to normalize that from a monetary policy perspective. but let's not forget only a few months ago they were sending checks to people to help with the energy crisis. that makes the picture quite puzzling actually. >> on the heels of the checks going out. all of that combining for an interesting puzzle picture thank you. >> thanks. when we come back, your morning's big money movers and

shares of one travel stock taking off ahead of a shares open. and posting its first annual profit and a top analyst is raising his price target following that result. later, apple digging deep for its new buy now, pay later service. a busy hour eawhahd en "worldwide exchange" returns 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

good wednesday morning time for your big money mover. shares falling at devon energy in energy company citing a hit to oil and gas company amid severe cold weather during the period as well as a 1% increase in personnel cost. you can see it's down almost 7%. shares of godaddy also taking a plunge the company posted a revenue that was in line with estimates, but it missed earnings by 2 cents. it expected slower gruct ahead of the news that it's laying off 35 employees at one facility down 2.5%. and tripadvisor getting a bump the online travel company is ben fifth from an uptick in demand for travel and experiences with revenue for the fourth quarter growing to 115% year overier

airbnb posting its first annual profit ever, $1.9 billion with earnings nearly doubling wall street expectations. it also benefitted from strong travel demand and a surge in bookings for nights and experiences. but headwinds remain as negative cost pressures and lower rest rates could spell trouble for this stock that's up 50% this year, and as you can see, up 9.5% in the overnight trade. joining me to discuss, brian fitzgerald, senior analyst what did you like about this call what stands out for you about the quarterly report and where the company's going, brian >> thanks for having us. look it was a solid print ebita was ahead, 2%. we think this reflects strong travel demand, accelerating supply and improving

profitability. we like their strong execution and operating discipline in which they run the business. >> how are they at managing discipline >> what you saw was even margins expanded 5% year over year to 27%. that's a q4 record this is offset against the top line of strong demand. nights and experiences grew 20% despite tough comps. more importantly, 49% year over year cross border growth 22% year over year in permanent growth >> what do you read about the fact that more people are listing their homes on airbnb or more investors are listing investment properties on airbnb? >> i think the macrocould weigh

on travel demand, but we see it as a silver lining also as hosts, they're seeking additional sources of income that the value proposition of airbnb has always resonated. and they're adding more tools and features to make it easy in terms of the hosts and guests inin terms of costs. >> >> what did you hear about rates heading into the rest of 2023 >> adrs should be down mid single digits in 2023. that puts pressure on the margins, but continuing variable cost efficiencies should offset that we're seeing some margin pressure in q1 as they pulled markets dollars forward. they think that's a timing

issue. >> i recently booked on- airbnb. they're pushing the experience segment. how big is the rev flew stream with regard to experience themes >> nights and experiences were up 20% year over year. they're going to be up again in 2023 the important thing about experience, they're margin experiences. it's important to watch that grow, and it's growing healthily. >> you've raised your price target at 165. it's up on a tear overnight. up 9.5%.

brian fitzgerald, nice to see you early this morning. still on deck, the white house and unidentified objects shot down over the american airspace the latest on what we know rk md what we don't know when "worldwide exchange" returns and customers all on different systems. 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.

good wednesday morning let's get to washington news republican lawmakers are calling on president biden po speak publicly about the recent unidentified objects shot down

over american airspace senators got formally briefed on the matter just days after signing key information about the chinese surveillance balloon that was shot down nbc's brie jackson joins us now. what are you learned >> reporter: they say president biden should release more information publicly and he owes the american people more explanation about these flying objects. after what recovery experts are calling significant debris, crews continue searching for clues about the three unidentified objects shot down from the u.s. >> they could very well be balloons of a benign nature, perhaps commercial or scientific. >> they're still demanding answers. >> how can i tell you not to

worry about something when i can't tell you what it is. >> i'm not in any way afraid that we're under a threat of attack or physical harm to our homeland. >> some members of congress are urging the aid min stlags. with the plern public. >> now that this cow is out of the barn, the president and director of national intelligence needs to address it. >> reporter: they've been deciding whether president biden should deliver the national address, but there are no-no formal plans yet. >> there's a lot of information to assess, a lot of information to recover, and the administration is on top of this. >> reporter: experts say the incidents involving the four high-at tuld objects shot down from the sky has exposed a kbap in the american government's process. >> they've been caught off guard. >> the administration is at

attempting to identified the unidentified objects later this week they're expected to come up. >> we were starting to get some numbering about what these missions actually cost. >> yeah. taking down these four objects has not been inexpensive it's cost taxpayers about 2 president $5 million that's the low end they sayle it cost about $500,000 so it's been a costly plan that the admin station hayes taken off. snooep when a missile lands in lake huron to begin with. >> nbc's phillip mena is in new york. hundreds gathered your night for a vigil in clawson, michigan, at the high school

where alexander graduated. she and two other students were killed in a mass shooting. school leaders remembering her as someone who alwaysed a had as totive word to say police identified theanthon mccray mccray's father told cbs news his son turned evil and mean after his mother's arrest. new mexico state has cancelled the rest of the athletic season following hazing they're looking into what hatched anden suring it doesn't hat again. the marvel director shared on

instagram. he joked he's in the shop now and working on himself it's been a month since the snow plow accident sent him to the icu with over 30 broken bones. he's been active on social media thanking his fans for their patience and support. still on deck here, a number of high-profile earningings including biogins. p and afternoonal lis systems. if you haven't already, follow our podcasts. chick out our other spotify apps we'll be right back. all across the country, people are working hard to build a better future. so we're hard at work helping them achieve financial freedom.

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you're probably going to want to start running. the next generation 10g network, only from xfinity. one giant leap for mankind. fed heads stressing the neat for further rate hikes but finding themselves divided on how high to go. futures pointing to a lower open a fresh look at the economy with the consumer in focus. we lay out if continued price pressures take a bite out of retail sales. and thanks but no thanks ceo howard schultz telling lawmakers whoenlt head to the hill to answer question about the coffee giant's labor issues. this is wednesday, february 15th, and you're watching "worldwide exchange" on cnbc welcome back i'm contessa brewer in for brian

sullivan this morning. let's get right to how the markets are following up we've got futures lower across the board. the s&p 500 looks like it will open down 16 points. the dow jones off by 81 points and the nasdaq down an implied opening of 62 points and the bond market on the back too. the 10-year yield is at 3.7% meanwhile the treasury is surging to its highest level since july 2007. you can see the yield on that, 5.028% wti and brent falling in tuesday's session, brabing two days of gains. right now you've got wti off 1.5% and natgas off a third of a percent. silvana henao is here with the top stories. >> contessa, good morning.

apple is preparing to roll out ilts new buy now, pay later series in a couple of days they will be taking a much closer look at customers spending as part of the criteria for service. apple will also look at whether customers have applied for an apple card meaning customers with good spending are more likely to be accepted. >> congress will be shining a light on the faa's role in recent systemwide issues impacting trarchlt they're expect to tell the senate committee holding the hearing will enshoe a backup database will not be corrupted. the ground stop halted all u.s. departing flights for two hours for the first time since the

september 11th attacks >> starbucks ceo howard schultz reportedly declining an invite from a dozen senators to speak on the coffee giant's compliance with federal labor laws. schultz who rejoined as ceo last april will fully transition out of the role next moptd, adding another would be suited to a change. let's turn to high profile results on deck today from biotech to consumer goods, semi-conductors. we have complete key coverage of some of the key reports, and one big thing feds should look for, kristina partsinevelos is tracking analog devices and frank holland is tracking cisco systems. let's start with meg tirrell.

>> the drug was approved it's not expected to be widely used until medicare agrees to pay for it it will be the first earnings call for a new ceo chris viehbacher the company's been a company powerhouse with its multiple growth viehbacher is an center veteran and veterans hope his experience can help turn the company around contessa >>. >> thanks for that let eat is turn to the analog

market >> you've got customer order plans moderating shares of analog devices outperforming the s&p 500. even hitting a high that we haven't seen since 2021, all in anticipation of the earnings we expect to see this morning evercore analysts believe that the analog group can move high were texas instruments, another big player in the space. however, they prefer ati uvs picking one of its favorite ideas for its electric behavior. let's turn to frank holland. >> supply chain issues making it

difficult to source components it's leading to the redesign of hundreds of products last month they said they were icying and cheem na. estimates for per overall margin are at 63.4% we'll be watching for any news about job cuts following the wave of layoffs at tech companies in recent months >> coming up today, gearing up for the latest look at the consumer we preview today's retail sales numbers and the potential impact of continued elevated inflachlgs first as we head to break, some of your top trending stories louis vuitton names pharrell and his first collection netflix removing the surprise me button from the

platform it randomly picked a title for viewers. t they removed it because no one is using it. and the richest man in mexico is putting his fifth avenue mansions up for sale. it's one of the last remaining facing central park. he originally purchased it in 2010 for $45 million "worldwide exchange" is bath in a minute

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we get the latest snapshot on the u.s. consumer today with january retail sales out at 8:30 a.m. eastern following two straight months of declines. sales are expected to have rebounded last month with forecasts calling for an increase of 1.9% and a little under 1% when you look at auto sales. let's get more insight and a look ahead to earnings ahead of walmart, hoe depot, and t.j. maxx it's good to see you this morning. first of all, talk to me a little bit about the retail sales numbers you do're expecting today and how that

reforms your outlook >> i think they're certainly going to sheehan improongtd from december. >> it's all about the retail sales. it come parties to the easy krom om con sales elect year app as a result, we'ring seeing a focus on expenses as you see yesterday coming out of the cpi number retail is looking ahead. inventory levels, i think december and january came down significantly. we're going to see retailers get inventory more in line a better retails number in january. >> it sounds like when we get these earnings reports, you'll

be listening more on the calls for the color about january and february and where we're headed into the spring, that the commentary on the calls almost is more important to you. >> oh, definitely. that's the past. what happened during the holiday season, we know it was a mixed holiday season that met the low extended i think there's more clarity on margins thachb sales fwa what are they seeing in terms of pace of sales? that's something to be watched very closely. >> walmart has really outperformed on yoesryes and essential goods. what are you hearing out of this report >> i would expect they're

beginning to see even a greater wallet share from some of their upper end consumers. i think they've been seeing the $100,000 household income give in the highest >> what about inventory? >> they're tip i will one of the top five kmirs of in pm o the ichb vestments because you look at the value offering and convenience i think they're going to be a biggs wichber for the off price for 2023. >> it's interesting when looking at home depot. there's so much to read into -- there's 's so much to look in f. talk to me a little bit about home depot and which segments you think that can real impress

investors. >> sales u womann't am to hair about their guys arches? whether it's home, new products, where can they have the biggest impact that's what i want to hear about. >> when you saw the cpi print come out yesterday in january, looks like it's up half a percent over the previous month, maybe the annual rate, a little higher than what had been as is it pated, what does that tell you the about the health of if consumer, dana >> they're still resilient, but they're cautiously watching their spending we're seeing that focus on essentials, the fact that you have food running in such high increases, they're watching where they spend their dollar and it continues to place pressure on some of the discretionary end.

it isn't spending on discretionary as much as they were last year. >> dana telsey, always good to talk to you. as we head to break during february, we celebrate black heritage with some of our cnbc teammates and contributor. here's a cnbc director and fellow twin mom elizabeth donovan. >> often in my career i have been the first black woman to hold my position, sometimes the only black person. people will question everything you do and ask how you got there as if not by hard work when you are successful, you internalize space that were not made for us. my advice, be courageous, be bold, don't diminish your gifts. today you may be fir, stbut hopefully tomorrow, you will be one of many. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills,

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welcome back time for your w.e.x. wrap-up here we go speaking at the world summit in dubai, elon musk says he plans to employ a new ceo for twitter by the end of the year he says he needs to stashlize the organization first that's what that was. speaking of musk, he shows his frustration during the super bowl that his tweets around the game weren't gaining enough reaction they told him to shake up the algorithm. it must have worked because my feed is filled with elon musk. vice media securing more than $31 million in debt the financially strapped media group has reportedly not paid some vendors and advisers for at

least six months and the chinese ev startup jidu plans to use baidu's ai in its cars. and the company airbnb posted its first annual profit last year, a little less than $2 billion. among the key trades david tepper's appaloosa buying into disney and caesars michael burry buying into alibaba. looking at the january retail sales figures that we just discussed as well as state manufacturing out. on the earnings front we get results from biogen, craft heintz, cisco, roku, aig, and

more with that let's get into the moves with zachary hill, horizon investments head of portfolio manage management and ross mayfield ross, let's start with you wu there something for everyone? >> i think so. if you're hawkish, you can take something away if you're dovish, you can take something away we know rnoknow realty is takiny on the other side, you know, goods inflation has been pretty su stu born it could be something that keeps

the fed a little more hawkish than we'd like to see. >> we're seeing futures lower. yesterday, a mixed close on wall street it's almost as though the markets took this in its stride. does fed policy still matter at this point >> well, contessa, of course, fed policy still matters but i think the important thing for us as we look to this year, it's a lot less now that policy is better balanced they still have work to do, and certainly you've heard them talk about that over the last few weeks. but, you know, we're just not in that situation where we're going to have a better understanding this year's data is more how the data involved and how that interplays with this idea that we were focusing on inflation and now we're focusing on growth and now to ross's point, we're

kind of in that place where the market continue have any guidance on what to focus on i think that's where we are right now. we'll see how things play out. that's how we're thinking about it right now. >> if it's reaccelerating in the united states, where do you put the reopening in china both of you a'd like to ask think question to. >> yeah, i think that's a bigger deal than a lot of investors realize. le seeing that role through in the day articulate it's going to take a couple of months for it to show up in actual economic data and airplanings data at a company and company. it will be more broadly for the globe. if that coincides with the u.s. economy, chi think we're in that position as well because of how strong the consumer is, that

could set up issues down the line the chinese opening in some sectors has been very strong it looks like we're seeing penalty up demand similar to what we're seeing in the united states, but perhaps overall more mooted where do you place yours as far as china is concerned? >> i think you're exactly right. if you think about what the reopening was like in the u.s. and i think in a lot of ways we're still seeing that with the services spending, the consumer spending continuing to trend, that's going to be multiples of the effect in china where, again, it's a bigger population and the lockdown is more stri stringent. it will take time to play out. i think the manufacturing sector

has been plagued by lock downs so as far as u.s. companies that have key supply chains, that will be a big benefit. it will help reflate some economies, things like oil, metal. that could provide issue for the fed. not as big a concern and i think the global growth picture is broader because china reversed their global policy. >> you say you've got beaten down sectors, profitless tech, and the most shorted and volatile stocks leading the rally in a big way do your think it reverse at this point? >> people call it a junk rally, low quality. we agree with that assessment. what i don't draw the inference to is that means it's going to reverse.

le it's easy to come by at the moment where the picture is normally muddy, my bias is to look at positioning, flows, and sentiment. what i see is the market is pretty off-size and is likely to fuel a continued rally specifically short term here, i'll be very interested to see how the market reacts to a retails sales print this morning. we know the consumer has been reaccelerating we get a better sales thread and how stocks reacted can be very telling for how investors were thinking about the outlook in the short-term. >> are you looking at it with respect to tjx, home depot, and

others >> we've definite le chasing this low quality being it's a completely different environmental. we've paired it back in light of the fact the dynamic we were in last year is not relevant we're taking sector source risks across the partnership >> ross, you get the last word how are you positioning yourself >> i think international is really interesting now you mention valuation. europe has looked quite cheap. i agree. thereality is it's a soft landing. from here, upside, fairly limited in the near term because it's hard to see skpapts

r.a.i.d. rates we like the cyclicals, we think the eck number image feature is here. >> thank you and thank you for watching us on "worldwide exchae. atoeitor us. i'm contessa brewer. "squawk box" is next everything's changing so quickly. before the xfinity 10g network, we didn't have internet that let us play all at once. every device? in every room? why are you up here? when i was your age, we couldn't stream a movie when the power went out. you're only a year older than me.

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good morning futures slightly lower as they digest the january inflation data it was orderly yesterday the impact was tough the dow is down but not after that hotter than expected-number. we'll get the lacest numbers 'll show you some of the trade

move bys so only of the leading stocks and airbnb recorded its first ever annual profit. i've got my valentine's day tie on this morning because when i put it on, it's still valentine's day in hawaii, right? "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc live from the market site at times square along with andrew ross sorkin and joe kernen i'm becky quic