it is 5:00 a.m. here at cnbc global headquarters. here is your top "five@5." stocks looking to bounce back as investors bracing for the busy day of earnings season. it is all about meta the stock popping after reversing. and after the close attention shifting to amazon and developing story we watch shares of first republic bank opening near a

fresh low as they look for a re rescue. and ahead of the fed policy next week, why the gang at jpmorgan chase is turning to a.i. to read the tea leaves. it is thursday, april 27th you are watching "worldwide exchange" on cnbc. good morning welcome to "worldwide exchange." i'm frank holland. hope your morning is off to a great start. let's kickoff the morning with the mixed session yesterday and today we are seeing green across the board. right now, the dow would open up 100 points higher if it were to open right now we always say it's early ahead of the trading day, it is all about earnings as we get set for the earnings season. caterpillar and comcast and eli lilly and so many more

we are watching the energy sector we start with the benchmark wti crude. up this morning. brent crude is almost at $78 a barrel natural gas is also up natural gas above $2 that is the set up let's get to the top story meta popping the -- popping at the open we have arjun kharpal with more from london. >> frank, revenue of $28.5 billion. up 3%. earnings per share is $2.20. down 19% less than expected that was key for the market. the company giving revenue guidance for q2 to $39 billion which is a beat. the message from meta.

we are investing in a.i. and metaverse. the bread and butter, the advertising business, is holding up strong. that is really what we saw with reality labs with vr and ar strategy which lost $3.9 billion in the quarter investors tolerating the losses mainly because of four things. job cuts and restructuring appe appearing to go well the core ad business is back on track with ad ref novenue jumpin the quarter. the company is investing in futures of metaverse and a.i. as well which continues to be a theme through the earnings season frank. >> arjun meta shares up 11% how much is sales growth and advertising getting backon track and how much is a.i. mark zuckerberg saying a.i. more than 50 times during the call.

>> absolutely. the core business, the ad business jumped. it was better than the market expected we heard a lot of noise of the difficulty of the macro situation and impact on advertisers and willingness to spend on digital platforms you saw meta showing digital ad business strong. you heard similar from alphabet as well with advertising mark zuckerberg mentioning a.i. 50 times versus 10 times for the metaverse. he gave us an idea of what the company is doing with a.i. they are investing in a.i. for recommendations in the feeds of instagram and facebook 20% of content on facebook comes as a result of a.i he gave investors a sneak preview of what the company is working on they are working on a.i. agent which i assume is a former c

chatbot. he is working on visual creation tools. think about typing in a prompt and image generated by a.i that is exciting to investors as a.i. is the word for all during the earnings season. >> meta report giving a boost to other stocks in the sector snap and pinterest high ner in h pre-market arjun, thank you we appreciate it. time to go back to earnings. we will pivot back to the broader markets as investors march through the week we get names including amazon and caterpillar and merck and southwest reporting. actually it appears to be getting better data showing the estimate decline in first quarter s&p results is getting smaller as

more companies report. analysts expect first quarter earnings to fall 3.2% year over year compared to 5% decline back at the start of april. for more, let's bring in michael sheldon at rdm financial group michael, thank you for being here >> good morning. >> what do you make of earnings season so far, michael it doesn't look as bad as we previously thought a couple weeks ago. >> it looks like earnings have come out better than expected which is encouraging as you look at the progression of numbers through the year, estimates for the second quarter are forecast to be down 6% for the third quarter, estimates are supposed to be flatter the inflection point in the fourth quarter estimates are forecast to be up about8%. if you look at 2023, currently

forecasts are for flat growth and 2024, it is hard to believe we are looking ahead, but estimates are up 12% it will be important as we go through the next few quarters that the 2024 numbers hold up. stocks bottom before profits do. if these numbers are directionally right, that should bode well for staocks in the middle of the year >> you answered the question i was going to ask next. if profits are better, that is a bullish sign for the economy last year, the dollar rose 8%. a big headwind for businesses. especially multinationals. this year, it is down 2% what does that say about the potential for the market and are there sectors which will be especially impacted to the upside because of the falling dollar >> the dollar is important an underrated part of the market

you need to monitor. the dollar was a strong headhead wind for corporates. in late 2022, the dollar peaked and started to decline when the dollar has weakened, that is bullish for markets overseas it has had an impact on energy and basic material stocks which get more than 50% of revenue from overseas. you think they and technology stocks would benefit in terms of translating foreign profits back into the u.s i think generally speaking, foreign markets perform better than they have with the strong dollar it also creates a risk on environment when the dollar is declining. it is important as we go through the next several quarters. >> a bullish michael sheltdshel. thank you.

a lot more ahead on "worldwide exchange," including one word for investors and what is fueled from earnings by big tech which is sucked away by concerns of first republic bank. that stock to open at a fresh record low. and draftkings placing a big bet on a new endeavor outside of online gambling. the big money movers, including one ecommerce pyelar. we have a very busy hour still ahead when "worldwide exchange" returns. k... (seth) and when i switched, i got to choose the phone i wanted. for free. not bragging. (cecily) you're bragging. (neighbor) oh, he's bragging. (seth) who, me? never. oh, excuse me. hello, your royal highness, sir... (cecily) okay, that's a brag. (seth) hey, mom. i gotta call you back. (vo) switch and choose the phone you want, like the incredible iphone 14, on us. (cecily) on the network worth bragging about. verizon

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time for the check of the top corporate stories, including johnson & johnson troubles are not over yet silvana henao is here with more. good morning, silvana. >> johnson & johnson, frank, consumer business spinoff is targeted by claims the talc powder products cause cancer this comes days before it completes the first initial public offering in 18 months citing regulatory filings, kenvue has been named in seven talc suits since april johnson & johnson tried to shield kenvue ahead of the spinoff. draftkings is planning to launch a streaming service the new service is expected to be free and supported by

advertising and will feature podcasts from company sponsors bill gates is nearly $2 billion richer amid the microsoft stock price gain following a blowout earnings report and best day since november of 2022 gates is worth $122 billion and is microsoft's largest investor with around 103 million shares frank. >> i can't remember the commercial with who doesn't like more money >> he is still not the richest only number six. >> he'll be okay silvana, see you later on. thank you. let's get to a developing story and that ongoing saga for first republic bank. shares tanking 30% yesterday after sliding 49% a day earlier. hitting an all-time low as it struggles to deal with the balance sheet and customer deposits the latest u.s. bank regulators considering downgrading the

assessment of the bank that is a move that could curb the ability to borrow from the federal reserve. this comes after cnbc reported advisers are trying to convince other banks to buy bonds at a loss if the banks do not buy at a los loss and first republic fails, new insurance fees could be in the industry all this as the fed and white house are in contact with the bank so far taking no action on the rescue joining me is stephen gandel. >> good morning. >> david faber is reporting that they are unwilling to rescue first republic what is the impact on the banks and consumers like us? >> for the other banks, it is not just the fdic, while backed

fully by the end and backstopped by taxpayers, but the fdic is funded through assessments by big banks. if first republic fails, the fdic could assess that cost to the banking sector the biggest banks pay the largest percentage of that the other issue that banks have is $30 billion, the 11 biggest, have $30 billion in deposits in first republic the calculus of the recent bank failures and fdic backed all deposits you can see that is the negotiating thing from the fdic at this point. you know, if this fails, not only will we assess you, but you could be out $30 billion in deposits >> that hits the top and bottom line of the banks that put money in first republic. is this happening?

>> the consumer impact would be if this sparks more concerns say first republic fails and a certain portion of deposits are not insured, then it is a concern for other banks and that drives up what those banks have to pay and to try to keep deposits and we see acceleration of the bank run. >> a systemic risk. >> possibly. banks are saying who is in trouble and do i have counter party risk that makes them nervous and slows down spending. we have not seen that yet. >> the $30 billion question here is we saw other banks go out and bought majority of assets of silicon valley bank and signature bank why is there so much hesitancy

it appears with this bank and assets here? >> yes we don't have the timing right signature and silicon valley bank s got bought only after it failed there was a backstop the way those went in terms of the buyers that got them, they got these loss sharing deals and carve-outs they didn't want. signature with crypto asset stayed with the fdic the fact they got sweetheart deals that others are looking back and saying i'm better off waiting until this fails and i'll get a better deal that is what is going on here. a chicken game played by the government and big banks and first republic the talk the fdic would lower the rating of the bank

that is what you were talking about and remove ability to borrow from the fed window that is a big game of chicken t see who blinks first the deal that first republic wants to stay in business. the government doesn't want to bail out a bank. it is a chicken game. >> game of chicken inthe financial sector it doesn't sound great, stephen. we appreciate your time and insight. thank you for being here coming up on "wex," what we are doing to disrupt the space for future savers.

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time now for the big money movers we begin with roku shares rising after the mixed first quarter report it posted a larger loss than expected, but topped estimates by 30 million. it is raising outlook for the the quarter revenue to $$770 million. shares of e-bay getting a pop after beating first quarter revenue and estimates. the site benefits from the strategy of focusing on product categories like sneakers and watches and collectibles

and align technology falling despite the earnings above the estimates. the company saying expenses are likely to exceed $200 million due to building and construction along with manufacturing costs to support align's ongoing expansion. turning to financial li lit literacy new plans to help with personal balance sheet. the initiative called cnbc your money is dedicated to manage and grow and protect your finances with a focus on meeting the needs of the core, but underserved audience data shows 38% of americans believe their lack of literacy costs $500 in 2022 that is up 38% from 2021 it is not just cnbc. firms are putting more emphasis on improving financial lit

rale -- literacy of our next guests. troy millings and rashad bilal gentlemen, good morning. >> good morning. >> troy and rashad, what is the biggest issue with financial literacy right now >> not knowing i feel like that comes from parenting and schooling and lack of experience. not knowing can hurt you tremendously down the line not knowing about how to properly use credit and you make a mistake at 19 years old and that can haunt you until you are 40 not knowing how to invest when you are young and you try to play catch up at 50 years old. you don't realize what a 401(k) is at 20 years old the lack of informsation when yu are young makes it difficult

when you get older >> it is the lack of exposure and education. it is something that is not privy to a lot of communities. financial literacy is a foreign language treat it like a language that is understood we want to make sure people are financial literal and flew uent >> you have more than 1 million followers on instagram you have the financial literacy conference coming up robert f. smith. a big name at cnbc and in the financial sector overall what is the take, troy, that you want people to go there to come away with? >> the exposure. he is the wealthiest black man in america people didn't know who he was and how he got the wealth. now we can figure out the

blueprint of how you can do things in a similar fashion. it becomes something to obtain. >> rashad, what do you think >> i think not only have him, but john and other top business leaders like mike novogratz is aspiring it is one thing to see somebody on youtube and watch robert smith give an interview on cnbc or other great platforms, but to have an perexperience with him s life changing. this is not somebody you see every day. not somebody that is championed enough in our culture and world. to have him on the platform in front of 20,000 people and for people to see him and see how close they can be to him and they can become him if they try

hard enough. it is a very aspirational thing to have somebody like that at the event. >> a lot of people aspire to be wealthier. if there is one area that people can go into today to try to improve their overall finances for the long term, what would it be rashad >> education read read listen to podcasts watch cnbc educate yourself i feel like the form of education we're used to is kindergarten to college. education is a life-long journey. it never stops it doesn't happen in the classroom walls. the best education happens outside the classroom. we are in a new age of digital learning and there is so much free information i would encourage everybody with the educational journey.

>> make a plan we have been highlighting different ways to obtain income and obtain a career. whether that is real estate or inve investing, make sure you see different opportunities to make money. that is important. we only thought there were one or two things to do to be wealthy. we want to open that landscape up that is why we have people from different walks of life and career paths we want that inspiration for people to see. >> troy and rashad i'm a big fan of your work you have a weekly podcast. thank you for the work you are doing. especially during national financial literacy month. >> thank you straight ahead on "worldwide exchange," we get set for southwest earnings in just over an hour for now and operational issues and the december meltdown and how that is now playing out. more coming up after the break

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it is 5:30 a.m. here in new york city. we are just getting started on "worldwide exchange. here is what's on deck shares of meta soaring ahead of the open the tech giant emphasis on efficiency paying off so far >> i continue to believe that slowing hiring and flattening management structure and increasing the percent of company that is technical and rigorously prioritizing projects will improve the speed and

quality of work. >> we are digging into the numbers of the debt limit and the house clearing speaker mccarthy's plan to get on the agenda. and the trouble ahead with the transportation stocks showing rising risk of potential rece recession. it is thursday, april 27th you are watching "worldwide exchange" here on cnbc welcome back to "worldwide exchange." i'm frank holland. let's check on u.s. stock futures. we mentioned earlier today showing in the green nasdaq with a pop on meta earnings all three higher in the pre-market this morning, we are looking at the state of freight and what it could mean for broader economy take a look here dow transports are close to flat on the year following a sharp

down turn on the back of u.p.s. earnings u.s. volumes with freight spiraled down for the first four months of the year index for rails and trucks and he ecommerce stocks are down sharply. september was when fedex ceo warned of global recession with u.p.s. telling a similar story, it is logical to think transports could be a leading indicator for the economy and in this case a recession. we are getting mixed signals from ecommerce jumping double digits in three of the last four month in march, jumped 13% since february we are seeing spikes there we continue to see a strong

consumer goldman sachs showing disposable income increased 10% in 2023 and pricing power in the overall freight market showing rates down 24% year over year. they are nearly 20% higher from the start of the pandemic in 2020 the same way a narrow u.p.s. miss started the slide for transports, top and bottom line for old dominion down 12% and tfi down 10% both in the ltl space. we are seeing a 5.6% slide in swift. the biggest truck in the u.s. we also saw the rail with canadian pacific and mississippi miss in earnings trucking and rails showing deep declines it is hard to say we are not in a freight recession. the question is do we go into a

general recession? we will to watch that on "worldwide exchange. time for the check on the early trade in europe with joumanna bercetche in the london newsroom >> frank, today is all about earnings earnings, earnings, earnings a bunch of companies reported. unilever and gsk and rosche. this is translating to the broader section in the ftse 100 down 6 points. the focus in earnings has been the banks. let's take you to the key results from deutsche bank the stock is up 2% posting a first quarter net profit of 3.1 billion euro it was boosted by profits from higher interest rates. we spoke to the cfo earlier who was feeling confident about the results.

switching to uk, barclays beat on the first quarter profit and strong consumer banking unit it posted 2.6 billion pounds in pre-tax profit and net income rising 47% the stock is performing well up 5% finally, samsung is another stock we are looking at which is up .80% despite the record $3.4 billion loss frank. >> joumanna bercetche in the london newsroom. thank you very much. time for the check of the top corporate stories, including a d.c. showdown taking shape silvana henao is back with those headlines. >> frank, kevin mccarthy's plan to raise the debt ceiling clearing that chamber. house members voting to approve the bill to raise the borrowing

limit and slash government spending mccarthy's strategy is seen as putting pressure to get president biden to the negotiating table. executive shakeup at pioneer natural resources with the shale giant announcing ceo scott sheffield will retire at the end of the year. he will be succeeded by pioneer's coo. the announcement comes after talks of pioneer being a potential takeover target by the u.s. major companies a week before the federal reserve's next policy meeting, jpmorgan chase unveiling an a.i. model looking to clarify the central bank messaging and reveal trading signals the chatgpt-like system uses speeches from members going back 25 years the report adds that jpmorgan chase plans to expand the tool

to cover more than 30 central banks globally what can go wrong? >> everybody is using a.i. now we need to get into it >> i don't know. >> silvana, thank you. turning to the big money mover. meta taking off in the pre-market after the increase in sales for the first quarter and issuing better guidance for the period the move further boosts the stock since mark zuckerberg announced this is the company's year of efficiency shares lost 2/3 of the value in 2022, but now up more than 160% from the november low. if last quarter's word was efficiency, this quarter was a.i. mark zuckerberg mentioning it 57 times and emphasizing the a.i. for meta joining me to discuss is sophie

lund-yates thank you for being here. >> good morning. >> sophie, give us your take on the quarter. it seems that mark zuckerberg and meta is walking a tightrope of efficiency and growth that will excite investors. >> that's exactly right. this is where really the contradiction comes in a huge part of the rally you have been discussing there and the market is relieved that cash is funneled to traditional areas of the business. that is what kicked off the initial rally. what we are hearing is chatter about a.i. and more exciting projects coming through. the exact plan for that spend and what exactly a.i. will look like for meta is a little bit woolly, i would say. it is not as clear cut as other tech names so, really, when you talk about the earnings specifically that we just had which is really

important. the market is relieved to see a moving advertising line moving in the right direction for once. really, i would be watching the comments around a.i. closely the market will react negatively if zuckerberg gets carried away with spending plans. >> reality labs brought in $393 million, but lost almost $4 billion. how long will they continue to tolerate losses in that unit >> precisely this is a huge question. it is indicative of the idea that meta has become very good at saying exciting things, but actually you are absolutely right. the track record for these outlandish and an eexciting gro leave le levers are not standing up against the company. the boost of efficiency

elsewhere and the investor base is tolerant of the losses. it is certainly not something to carry on forever we saw revenue grow, but 3% revenue growth which for a stock like this is low patience could run out soon. >> amazon is set to report today. capping out a busy week for tech earnings the focus is the consumer discretion spending and cost cutting and the performance of the cloudy vi division aws. sophie, what is important for amazon >> it is no spprice. i expect amazon to shout about a.i. as everybody else this week there is good reason for that. aws is really well geared toward this a.i. boom that is because it is positioned

in an a tttractive base in the ecosystem. it is geared to the infrastructure and implementation side of the booming tech the application and app side is limited. the place it has in the infrastructure and upside is exciting i expect them to be talking about that the level is up for debate they will talk about it. for me, the really big thing and i think everybody is watching for the margin operating margin they are pegged to be 2.4% which is low and a miss there would be badly received. >> aws is the market leader about 39% market share people are looking for granularity. sophie, thank you. coming up on "worldwide exchange," we stay on the earnings beat with the southwest

results and if this airline can shake off its issues that crippled the carrier "worldwide exchange" is back in a moment ♪ ♪ a cyber-attack can grind everything to a halt. cisco security keeps your company

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aside from the disappointing stock performance, the story for love is the operational nightmare. seemingly one after another one. it started in december when it was forced to cancel 16,000 flights and leaving 2 million passengers stranded. t the th then months later, they were called to halt operations over more computer issues before resuming operations. all1,800 flights were impacted and joining me now is stephen trent. >> thank you. >> let's start off with your price target ahead of earnings. >> we have a $33 per share

target price and neutral rating on the stock long term, good quality company, but going through transition >> price target implying a 6% upside you are not that bullish on the stock. what is the biggest headwind with southwest what challenges does it face forward and how do you see the department of justice investigation with the company >> i think on a top-down level, there are two places we think in the airline space that are fascinating. one would be those carriers with significant international long haul capability where the transatlantic flights are booming -- excuse me, continue to boom several months from now. i think the other pocket that

looks interesting is the it domestic cross carrier side where if we get economic moderation, those carriers with the strongest seat profile per miles are likely to prosper with oil prices coming down you have southwest which, i think, is a great airline, but is it in between land versus not having any international long haul and not really being the seat leader in the domestic market on top of that, you have the operational issues growing pains in terms of the new strategy that they seem to be employing with more slack in the flight schedules in terms of the scrutiny on them

now, whether or not it is fair is hard to say certainly when we with look at some of the major disruption over the last six months, southwest had been an outlier. >> the regulatory scrutiny is not a surprise with stranded passengers i want to focus on macro issues with oil prices being a factor and possible recession southwest generally seen as a lower cost airline i know international flights are higher margin. as we with face -- as we face a potential economic slowdown, does that mean people have less money to spend with southwest giving you two free bags >> all of that will help one of the questions we have as we move forward when you look at the new cost structure or what it should be in terms of having

more slack in the flight schedule, more robust staffing and greater investment in software and flight app software and the like and how much pilots and other staff are going to get paid not trying to knock them everybody is out there trying to do their best to reach new labor agreements the confluence of items suggests we should see higher costs going forward than we used to see. >> potential turbulence with southwest airlines ahead >> it could be it depends how these things get implemented and whether or not we get a break from acts of nature >> we have to leave it there stephen, we appreciate it. catch southwest ceo bob jordan

disc discussing earnings at 9:30 a.m. coming up, one word you need to know today on the back of meta earnings. greg branch is with us to discuss. "worldwide exchange" is back after this . (seth) not to brag, but i just switched to verizon. (cecily) so you got an awesome network... (seth) and when i switched, i got to choose the phone i wanted. for free. not bragging. (cecily) you're bragging. (neighbor) oh, he's bragging. (seth) who, me? never. oh, excuse me. hello, your royal highness, sir... (cecily) okay, that's a brag. (seth) hey, mom. i gotta call you back. (vo) switch and choose the phone you want, like the incredible iphone 14, on us. (cecily) on the network worth bragging about. verizon ♪ ♪ this is rochelle, who gives you a shot. ♪ ♪ rebecca is there when you feel not so hot. ♪ ♪ this is larissa, who's feeling glown up. ♪ ♪ and this here is winnie, who zhuzhed up their cup. ♪

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welcome back to "worldwide exchange." time now for the "wex wrap-up. bill gates is $2 billion richer. the best day since november of 2022 draft kings is planning to launch the video streaming

service. it is expected to be free with advertiser support. johnson & johnson's kenvue spin off in the hot water. seven lawsuits are named in the company claiming talc products cause cancer. and the deal for activision-blizzard is blocking the decision it is right move for uk consumers and businesses. tucker carlson breaking his silence. weighing in on the state of media in politic notice u.s. wit - politics without addressing why he was fired this week. it is a busy day ahead for the earnings season. we look to results from companies including caterpillar and comcast and amazon and intel and more we have a slew of data on tap with jobless claims and q1 gdp and gdp prices and march pending hope sales

the bank of japan's monetary policy meeting begins today with the decision expected tomorrow with all of that in mind, let's dive into the trading day ahead and where to put your money to work with greg branch. managing partner at veritas financial group. greg, good morning >> good morning, frank >> we ask you to share your word of the day for the trading day ahead. greg, what is your word of the day? >> today's word is ineluctable in fact, i think we revisit october lows within the next two months. >> for everybody out there, you think it is inevitable with that in mind, where are you putting money to work today? >> the trends water observing and where people are putting money to work is in the nasdaq 100 tech trade there are reasons behind that.

ultimately, the mega cap tech names with a source of stable and relative earnings growth. we have to question what multiple is adequate for a safe haven multiple we are starting to stretch credibility with the names as well as corporate i.t. is slowing with the consumer. the other is to hang out in the short end of the curve with 3% to 5% and get paid to wait that is an alternative we didn't have two years ago that makes a lot of sense as well lastly, i would say if you have to be exposed to the equity market, look where the earnings growth is going to be. few sectors contribute to

positive earnings growth consensus has us at double digits at the end of the fourth quarter. that is wildly optimistic. focus on healthcare. focus on select industrials and tech names >> earlier, you mentioned valuation. we have amazon coming up you mentioned nasdaq 100 trade amazon is in the nasdaq 100, but a lofty valuation. ahead of earnings, would you allocate money to amazon >> amazon is tough they gave us 10% contraction last quarter for each of the last three quarters, they warned of a slowdown i expect them to do the same this quarter as well they are uniquely exposed to the consumer slowdown and i.t. corporate environment as well. it is probably in the same category as the other mega tech names. sure, they are pointing to secular tailwinds. >> greg branch, thank you so

much for your insight and word of the day one last look at the futures right now. in the green nasdaq doing the best of them all. that will do it for us here on "worldwide exchange." we have "squawk box" coming up next thanks for watching.

good morning once again, stock futures pointing to a higher open as we await results from three dow compon components ho honeywell and merck this hour. and meta shares soar in

first quarter up beat guidance. and house passes debt limit bill democrats are looking to avoid default. speaker mccarthy joins uses live from washington. it is thursday, april 27th, 2023 "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 becky quick along with joe kernen and andrew ross sorkin. let's look at equity futures this hour. there are green arrows right now, it looks like the dow indicated up80 points.