it is 5:00 a.m. at cnbc global headquarters. here is the "five@5. we begin with stocks kicking off a new trading month in the green after the dow and nasdaq did something since the first time since the dot-com bubble. the bill passes the house and now goes to the senate what it means for mccarthy's future. and crude crush. oil off the worst month of the year and another key opec meeting this weekend and talk of

the saudi-russia price war bubbling up. and lucid with a lifeline to keep the ev dreams alive. and the wrap up of the week long trip in china what elon musk did not do. it is june 1st, 2023 you are watching "worldwide exchange" here on cnbc good morning welcome to "worldwide exchange." i'm frank holland. let's kick off the check of the u.s. stock futures solidly in the green this is a turn from earlier are wh -- earlier where they were flat the nasdaq is moving to the upside after a mixed month for the averages that saw the s&p and nasdaq extend the win streaks to three months. the dow on the chart here well behind more on the nasdaq performance in a moment.

check of the bond market the 10-year treasury yield has declined from the month high just on may 29th just this week we were at 3.81 elevated yields on the 2-year treasury now turning to energy and oil. oil with the worst session since march and since november of 2021 more of the same from yesterday. wti crude is below $$70 a barrel we will talk more about that later on in the show brent crude is up .30% natural gas is flat. looking at crypto this morning bitcoin and ethereum with the worst month of the year. this morning, in the red bit down below 27,000. ethereum is below the 2,000

mark that is key for the currency down this morning. time to look around the world with the higher session in asia with the nikkei gaining 1%. in europe, the trading day getting under way. look at europe in the green. the dax is the best up over 1% turning to washington and the top story is the house passing the debt ceiling bill and now heads to the senate for a possible vote on friday. brie jackson joins me live from capitol hill brie, it wasn't contentious after all. >> reporter: it had overwhelming support. the bill to raise the debt ceiling is on the senate calendar the senators can begin the process of moving the bill forward. similar to the process in the house, we are expecting some opposition from both sides of the aisle. >> the bill is passed.

>> reporter: with that gavel, the debt limit agreement passes the house with overwhelming bipartisan support house speaker mccarthy taking a victory lap. >> this is the biggest cut and savings this congress has ever voted for. tonight, i hope we proved it to you again that we put citizens of america first we didn't do it by taking the easy way >> reporter: many hardline republicans opposed the bill house democrats helped push it through. >> three maga republicans attempted to take control of the house floor. democrats took it back for the american people. >> reporter: in a statement, president biden praised the house and urged the senate to vote quickly saying the agreement is a bipartisan compromise neither side got everything it wanted the hard-fought deal faces more

pushback in the upper chamber. >> house leadership wants us to rubber stamp an increase of $4 trillion of new debt in exchange for $1.5 trillion of claimed deficit reduction. >> this agreement is nowhere near as bad as the republican original proposal which would have been devastated i think for a variety of reasons, the no vote is right. >> reporter: others are on the fence. >> i have to go through the details. every time you turn over the rock, there is something sliming under it >> reporter: congress must act fast to avoid default. some republicans in the senate are pledging to introduce amendments which could delay the bill's passage senate majority leader chuck schumer has already warned senate ors they may have to sta the weekend to get the measure passed frank. >> brie, republicans need

democrats to get the bill pushed through the house. in the senate, it is flipped >> reporter: that is right democrats have majority in the senate schumer and mcconnell seem to be unified in getting their members on board with this measure and getting it passed in the senate and to the president's desk before the june 5th deadline frank. >> brie jackson. thank you. always great to see you. time for the check of the top corporate stories with silvana henao. >> good morning, frank let's start off with no green wave at big oil this year. exxonmobil and chevron shareholders solidly rejecting climate proposals during the annual meetings. a difference from the european counterparts where resolutions related to global warming received strong sufficpport. 11% of shareholders called for

the company to set emission reduction targets. similar proposal at chevron saw less than 10% support. the ceo of chatgpt open a.i. is wrapping up the european tour. the meeting comes one week after open a.i. ceo sam altman said his company would consider leaving europe if it fails to comply with the regulations. comments he has since scaled back shares of ev maker lucid motors falling ahead of the open it is raising $3 billion through the equity offering with the majority coming from current top stake holder the saudi public investment fund. lucid says will use the cash for general corporate purposes, including capital expense and working capital. the company has $3.4 billion in

cash and about $700 million of available credit lines as of march 31st that is according to the most recent report, frank >> silvana henao, see you later on thank you. turning over to wall street. gearing up for the trading month as we see a relatively resilient market fueled by tech and a.i. we saw the nasdaq rally in may 6% and the dow with the first down month in three. dow jones industrial average saw the widest margin of nasdaq out performance of the dow since the dot-com bubble similar for the s&p 500. top heavy with tech and beating the dow by the widest margin since february of 2000 the concentration of the $40 trillion stock market with apple, microsoft, alphabet, amazon and nvidia making up 25%. that is a key focus for many investors who worry about how long these five names can keep the rally going and narrow

breadth of the run up. let's talk about this with ryan belanger great to see you >> good morning. >> i want to talk about another stock. c3 a.i shares are down 20% this morning. what does this mean about the a.i. craze what are you telling your clients about a.i. and the investment opportunity at this point? >> look, i think it is exciting, certainly, with a lot of possibilities. it is too early to tell from the investing perspective which companies can provide shareholder value and which are along for the ride it reminds me of the recent craze dating back to blockchain when anybody mentioned that on the earnings call, got a pop on the stock or a mention of it as well as the cannabis wave with things happening with themes in

the stock market a.i. craze is very similar to that in my opinion there is a lot of buzz it will take time to figure out which one of these companies can provide shareholder value. there may be a few i think it is too early now to buy any name that is mentioning a.i. because it is a popular theme at the moment. >> you are mentioning a few. we talked about the few keeping the rally going. nvidia, alphabet and microsoft, et cetera. are you worried about the narrow breadth of the rally >> it is a fair point. actually historically when there has been a narrow breabreadth, e performance has been good in the short term like 6-to-12 months we are concerned with the multiple valuation ans that the

stocks are commanding right now. they are lofty expectations they continue to meet investors have been rewarded for this this is a contrarian trade a lot of people focused on the dividend paying stocks the nasdaq has proved resilient. you have to give credit to investors who stuck with it. they have been rewarded for that i think they should be considered in taking profits >> ryan, thank you i appreciate it. more to come on "worldwide exchange," including the one word investors have to know today. first, oil coming off the worst month of the year ahead of the key opec meeting this weekend and talk of the possible saudi-russia price war bubbling. the one thing musk did not do taking in the sights in china this week. why the ultra richare rk iheherecord cash as t maetncs toward record

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welcome back to "worldwide exchange." time for the three stock stories of the morning 3c a.i. has weaker guidance despite the beat for q 4 the stock sky rocketing 250% this year.

it has never been better positioned with the growing enterprise a.i. market shares down 19%. off the lows of this morning salesforce beating quarterly expectations on revenue and offering guidance for the quarter and the full year. shares are down more than 5% marc benioff talking about the reinstructing plans and investment on a.i. on "mad money" last night. >> we are focused on problem duckt t-- productivity and performance and a.i. and delivering for shareholders jim, profitability is up and revenue is up. jim, cash flow is up with the numbers and also increasing our margin guidance for the year to the record 28% >> chewy getting a treat with the beat topping expectations.

shares up more than 17%. the pet company highlighting the pricing power for the beat with the customers showing product loyalty in the categories which shows no signs of trading down shares up 17%. ahead on "worldwide exchange," the stock pick of the morning and waze gets a new voice and nba fans gets a burrito. the top trending stories are coming up after this

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and create the outdoor living space you've always wanted. welcome back to "wex." oil prices are climbing back some of the slows yesterday. wti at .30%. the market is coming off a disaster month brent falling 8.6% it is on worries of the debt ceiling and the china's uneven recovery and the opec plus meeting this weekend let's bring in louise dickson. good morning >> good morning. >> we were just talking about the prices now what does it mean to see wti below $70 a barrel for opec and

what does it mean for the meeting? >> it is not just the month of may which is turbulent in the oil markets, but the last five or six months. again, all heavy macro factors more and more are solidifying on the bearish trajectory in relation to how this is going to impact, you know, u.s. policy and opec policy, i think we will have a couple of sign posts on that in the upcoming days. >> we get sign posts in the coming days. what are we looking at now what are the signs telling you where you think you will get more clarity in the coming days? >> of course, there is the upcoming opec meeting. at this meeting, we will get a clear signal from the group whether the the $80 is a price

point for the group that is a floor they are willing to defend or if it is going to eventually become a ceiling as the macroeconomics turbulent factors work out >> we are looking for signs of cut/no cut saudi arabia and russia are having a dispute right now do you know the break even for each one is that the influence on the final decision >> sure. this skism is not something new for the oil watchers saudi arabia and russia have different budget price concerns. what we have seen in the last five months in the introduction -- again, russia did not introduce the price

caps however, this has dramatically reshaped the whole strategy of opec the price caps are working they are keeping prices suppressed this is a new challenge for opec to navigate. with regards to saudi arabia and russia, it is saudi arabia looking at the break even price in the low to mid-80s. previously, russia cited $42 to $44 for euro grade to balance their budget >> big difference there. big difference in break even very different thoughts with the cuts we will have to watch out for the sign posts wti below $70. l louise, thank you.

elon musk wrapping up the china trip we have eunice yoon tracking the latest on his trip she is joining us now. eunice, it is interesting watching elon musk travel china. what is the latest >> reporter: the latest is he is heading home after the three-day visit here in china. he made a late night visit to the shanghai factory where he was greeted by 100 employees and was said to have treated them to a snack of hamburgers and soft drinks he also thanked them for their amazing work in a video that tesla china pr posted on social media, musk said cars produced here are not just the proper efficient production, but highest quality. there are expectations during his trip that tesla might have

unveiled a refreshed version of its model 3. that is something analysts believe tesla needs to maintain ground here. there is talk he was shown a pro poe -- prototype of the model 3 tesla has not confirmed that tesla reports he met a close confidante of xi jinping he was on the former staff of the vice premier who ranks higher than many people thought would be working closely with musk as the premier who is seen as being very key to managing the economy. >> eunice, one thing elon musk did to the do, he handed out hamburgers, but one thing he did not do is tweet. what was that about? >> reporter: i know. it was interesting to see he wasn't tweeting.

there isn't, as one would expect, any discussion about that here in china because twitter is banned here in fact, what was interesting is to see how government officials and state media were tweeted more about his trip than he was. there isn't any theory as to why that would be. it could be maybe he didn't want to be seen as offending his hosts here in china who don't necessarily appreciate twitter being used here or perhaps he didn't want to be put in an awkward position where he would be tweeting about something and that to come up in the discussions here >> all solid theories. elon musk is a contrarian. i don't think he always minds getting on people's nerves you know what? theories abound. he is on the plane back here eunice, great reporting. see you. straight ahead on "worldwide

exchange," why the ultra wealthy are keeping historic amount of cash on the sidelines and what veord be a broader cause for inst concern more "worldwide exchange" after this

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ed mills is here with the latest and if the d.c. drama could derail. marvelous may leaving the markets in the background. could the new trading month usher in new headwinds for the hot soector? and the latest with robert frank standing by with the stat on the massive cash on the ultra rich. you are watching "worldwide exchange" here on cnbc i'm frank holland. thanks for waking up with us let's start with the check of the stock futures where we are seeing movement in the futures right now, green across the board. we have seen them moving all three up higher. this after a mixed may for the index with the dow shedding 3.5%

and the s&p with a slight gain dow is down in the white and nasdaq on the orange line. nasdaq jumping 5.8%. according to dow jones data, the difference between the dow and nasdaq last month was the widest margin since october of 2001 the bulk of the gains last month can be tied to ahandful of stocks alphabet, apple, nvidia and meta 25% of the s&p 500 market cap and 50% of the nasdaq month to date gains in may. for a check on the top stories, silvana henao is back with those good morning, silvana. >> frank, jamie dimon claims that other executives within the bank could have removed jeffrey epstein before the move was

made this is after the recent jamie dimon deposition tied to two lawsuits dimon claimed that an executive and former head lawyer could have given jeffrey epstein the boot before they made the move in 2013. dimon added he had no knowledge about the claims against jeffrey epstein in 2006 and he was barely aware of him at all until 2019 ziprecruder announcing layoffs. in the regulatory filing, it will cut 20% of the work force that is 270 jobs and half of the cuts will come from sales and customer support positions the ceo will take a 30% cut to his salary. and american airlines will appeal a court ruling blocking

the partnership with jetblue the judge ruling this month the plan union in the northeast is anti-competitive and ordered the airline to end the partnership in 30 days the airlines argued d teamingp would help compete in new york and boston jetblue declined to comment if it would appeal the ruling frank. >> silvana henao, thank you. turning attention back to washington and house passing the bipartisan bill despite strong opposition from far right republicans. the bill heads to the senate for debate joining me to discuss is raymond james analyst and director ed mills. ed, good morning >> good morning, frank >> going to the senate after passing in the house what do you expect from the senate can we see drama there >> frank, this is d.c. we always get a little bit of

drama. this is remarkable 314-117. that is not a lot of drama from the house. this will pass by a wide margin in the senate, but the senate is all about the procedure. it takes 30 hours before you can vote to vote it will pass before the x date it is not going to be straight through. someone will be on someone will get extra time to talk about >> ed, you didn't say should or probably you really believe this is going to pass. does that take the risk of default off the table? does that take the risk of the credit downgrade off the table >> the risk of default is off the table. we have been telling people at raymond james is important is look at the market impact going forward against the conversation

we have been having. one of the concerns i have from clients is what happens when treasury issues $1 trillion of new money over the next couple months and where does that money come from? that goes into money p market funds. a lot in reserve accounts in the fed. there is a concern that some of the source is the equity market. if you get a downgrade from fitch which seems likely because all of the drama is not going away if we get that back in 2011, where we had a deal, then we had a downgrade and the market sold off. i don't think it is as severe this time, but it does limit a little bit of the upside excitement that default is off the table. >> ed, isn't some of the drama g going away for two years, don't we have stability with the threats to

the market from d.c. >> what is under told about the deal, frank, is a number of land mines have been diffused we still have a debt limit and still go to the brink and still have a chance in the future that we make a mistake. the things that got diffused is we probably really reduce the threat of the government shutdown come october 1st. that should be positive for the economy. we reduced the political in-fighting with funding those things reduce the drama and are positives. we don't take away the fact that the next time we're here and we have a chance to go close tore default before we resolve that

>> ed mills, we have to leave the conversation there great to see you >> thank you putting the d.c. drama to the side a large chunk of wealthy holdings is tied up in cash. we have robert frank with the latest and when it could come back into the markets. >> frank, cash is king here. wealthy investors in wealth preservation mode. that's those with $1 million or more in investment assets. 34% of portfolios in cash. that is up from 24% a year ago that marks a record high going back at least 20 years that is all according to a study from cap gemini. holdings of stocks is lowest with stocks accounting for 23% of portfolios.

if you look at alternatives. private equity and hedge funds, that is holding steady at 13%. more than 2/3 saying priority right now as investors is wealth preservation rather than growth. families with $100 million or more, they are moving money to the sidelines. planning to add more fixed income from 12% to 15% they plan to trim equities lower to about 24% that is according to the ubs study. one family office said we are not making big bets on anything right now. frank, a lot of money still sitting in cash waiting for the valuations to come down further. we will see if they do or not. >> so, let me ask you this are they finding or looking for bargains right now

>> they are starting to nibble in private equity funds or direct investments there are a lot of private companies with value the other area is in commercial real estate. especially office buildings and some big cities where they haven't seen valuations come down yet, but waiting with a lot of buildings going into default and coming up for sale if those prices hit rock bottom over the long term and horizons could be the deals. >> robert, good to see you thank you very much. coming up here on"worldwid exchange," our summer stock spotlight series rolls on taking a look at experiences and rising rates and prices are doing little to curb the hunger for travel and experiences. as we head to break, the top trending stories

chipotle is giving you a chance for a free burrito with the three- three-pointer promo. roger federer going from serving aces to directions the tennis great is the newest celebrity voice on waze. the 20-time major winner can tell you how to get to your destination in english, german or french. and elon musk reclaimed the top spot as the world's richest person $192 billion he and the ceo of lvmh he avbeen at the top spot for months "worldwide exchange" is back in a moment

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2000 and exxonmobil moving from out rating to sector perform shares of exxon up this morning. and upgrade for ubs boosting the price target of csx. that is the rail company moving from neutral to buy and from $33 to $37. the network operation from csx has productivity opportunities and potential for future growth. shares up 2% this morning. turning to the week long summer stock series with the stocks likely to be top of mind this season. we are talking all about experiences. air travel showing 9.t8 million people taking to the skies last weekend. that is showing robust demand for vacations and other activities

joining me is tom white. thank you for joining us >> good morning. >> we have seen a broader trend from goods to services and experiences. does the data show this trend may be continuing and if so, how do you invest? >> so far, the demand for leisure travel has remained very robust we just heard from all of the major online travel booking sites in the last few weeks. that was the main take away. the mix of travel is changing a little bit you are seeing a bit of recovery or snap back in traditional urban travel to hotel bookings and flat demand for vacation rentals. that underlining desire for folks to get out and experience the world is strong. maybe a little bit of a slowdown

in the price of rooms, but year over year basis, adr is up across the board the demand is there. people seem to be prioritizing services and getting out over some other areas of spend. >> i want to focus on one point. people are leaning toward staying at hotels in it traditional travel that is a negative for airbnb? >> look, i think the short answer is yes. airbnb had a spectacular last two years. not just in sense of them being the only game in town if you want to get away and travel, but really just the new customer acquisition opportunity. so many new customers and types of demographics seeking out the platform because it was the only safe way to travel we think the customer cohorts

they acquired will payoff. people will still use vacation rentals, but growth will normalize a bit. the traditional hotel operators and booking sites will see a little bit of a share shift tilt back. >> the traditional travel sites. i want to talk about new opportunities and experience business airbnb and uber has gotten into that where is that right now? >> it is still relatively small. it is a logical extension for airbnb t tripvisor and all travel sites are trying to exttend the influence into what the traveler does in destination. these companies generate revenue from the travel and research and booking side now you have a mobile phone and

in destination, they can find new ways to monetize you and tourism is a good way to do that. >> it is about travel and experience what is the top pick in this space? >> right now, we continue to have a buy rating on airbnb. we think they have that customer acquisition will take dividend. we are positive on the other traditional booking sites. continuing to have a broadly positive view in the category. >> tom white, thank you for the insight. ahead on "worldwide exchange," the one word every investor needs to know today diamond hill's heather brilliant tees up the trading month and stocks on her list including one beverage maker lifting her spirits. if you haven't seen us, follow us on our podcast with

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live shots from around the world. this is london, hong kong, and d.c. we have six stories to know before the opening bell. nvidia plans to meet with executives from the chip manufacturer tomorrow in china sticking with asia, u.s. and china are looking to sign the first deal under the framework today following the negotiations that started last august china's foreign minister out ahead of the event twitter ceo elon musk staying silent on the platform

with the visit to china. that marks the longest stretch since june of 2022 shares of crowd strike tumbling after the company reported slowing revenue growth up h42% this year nordstrom shares moving higher on the quarterly sales beat and high-end shoppers continue to spend. shares of ev maker lucid says they are falling amid the equity from the top stake holder from the saudi public investment fund gearing up for the trading day ahead. two pieces of employment data out this week with the adp report and jobless claims with ism manufacturing figures. we get reports from dollar

general and broadcom and lulu lululemon. we hear from fed president patrick harker this afternoon. a lot of people listening for his tlhoughts on rates we will have the issue of the financial sector turmoil with the regional banks a key look at futures this morning. futures are green across the board. higher across the board at this point. the dow would open up 50 points higher for more on the trading day, we bring inbrilliant. >> thanks, frank. >> what is your thought about the debt limit deal moving forward? is that a net positive for the market is there anything you are concerned about with the deal? >> i think it is net positive. the deadline was loomging and

everyone was getting nervous i don't think we will talk about this six months from now this is something that will prove fleeting >> you are hopeful with the hope in mind, what is your "wex" word of the day >> my word of the day is immaterial i couldn't which one the reason i went with immaterial is what i was saying. we took a long-term perspective. regardless of nice news today, trading day is immaterial with the long-term picture. i think immaterial is the right word to apply to any day in the market. >> here is something that is not immaterial the yield on bonds what are you saying to clients with investing in bonds? have you changed the perception of the portfolio in bonds?

of the bond percentage, how much is short-term bonds? >> we don't allocate our clients with different asset classes we offer them portfolios in equities and fixed income that take a long-term perspective we think there is a lot of attractive investment opportunities on the fixed income side. our fixed income team is seeing that it is not something we don't work with individual investors now and allocate across them we work with intermediaries. >> speaking of solutions, a lot of people are looking for stocks to invest in outside of the big a.i. stocks that are at the top of the market. what are you looking at outside of the big names and nvidia and alphabet and microsoft >> my favorite to talk about is

a company called ferguson. i think a lot of the business model can make great long-term investment opportunities it can be hard to find these businesses trading at a discount to what they're worth. for every business we invest in, we look at whatever the opportunity is that we can see across the long-term cash flow generation of the business with ferguson, you see strong advantages where they are working with tons of suppliers and clients. by creating that funnel, they are helping the end clients benefit from a number of distribution they focus on plumbing related products and hvac supplies that area of the market has been steady and benefitted from the strong economy over the last decade there could be some bumps as we

go into the next few months. we certainly think that is create aing opportunities. >> let's get to the other picks. >> diago is a really interesting company. everybody is aware of diageo and are aware of it. we are familiar with the brands they distribute throughout the world. when it comes to diageo, we are interested in it because it is trading at discount. that is something you don't always see from the high quality strong advantage businesses over time with diageo, distribution is strong across the world. they will benefit from growth of emerging markets that has additional tailwind to the idea of diageo it is great long-term business to own. >> it sounds like you are looking for deals. a lot of people are bargain hunting.

are you seeing catalysts for the big up side move >> we don't think about it that way. what we are doing is looking for great businesses and trading at a discount that is what we find in ferguson and diageo that is why we picked those to focus on today >> heather, thank you very much. that will do it for us on "wlddexcngorwi ehae. "squawk box" is coming up next thanks for watching. are asking. is it possible? with comcast business...it is. is it possible to help keep our online platform safe from cyberthreats? so we can better protect our customer data? absolutely. can we provide health care virtually anywhere? we can help with that. is it possible to use predictive monitoring to address operations issues? we can help with that, too. with global secure networking from comcast business. it's not just possible. it's happening. ♪ ♪ every day, businesses everywhere are asking. is it possible?

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good morning the bill to raise the debt ceiling passed the house by a wide margin. we will talk about the odds of passing the senate schumer will get it done we will talk about that straight ahead. fed officials now signaling skipping a june rate hike.

they could continue raising rates later this summer. what a concept data dependent. elon musk reclaimed the top spot as the world's richest pers person the latest update on the wealth. fr it's thursday, june 1st, 2023 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc live at the nasdaq market site in times square. i'm kell