it is 5:00 a.m. at cnbc global headquarters. here is the "five@5. we begin with too far too fast top strategists at jpmorgan chase casting down on the rally. our expert money managers weigh in with recommendations of their own. taking vision pro to the next level why app developers will have to turn the tide. and waiting for the smoke to clear. millions waking up to slightly clearer skies after one of the

wo worst air contamination episodes in history. and a c-suite shake up after the gamestop ceo is out. and a mystery trader on coinbase that could net someone millions of dollars. it is thursday, june 8th, 2023 you are watching "worldwide exchange" on cnbc. good morning thethe -- good morning. welcome to "worldwide exchange." i'm frank holland. look at new york city. the worst smoke contamination day in years we will have the latest on the conditions and impact the dangerous conditions are having on one sector. let's kickoff with the check of stock futures stocks hovering close to the highest level of august of 2022 despite they closed lower

yesterday. this morning is muted and flat across the board nasdaq was lower a minute ago. you can see not a lot of movement overall we are checking the bond market. starting off with the benchmark 10-year treasury this moved 18 points higher since the debt limit deal. still an elevated yield with the 2-year treasury. some thought it would ease after the debt deal. the 2-year at 2.455. we are looking at energy we continue to watch energy after the opec cuts. wti is moving higher since saudi arabia decided to reduce production down .50%. brent crude is moving higher down .50%. same story for nat gas let's get the check on asia and europe with joumanna bercetche in the london newsroom with both.

joumanna, good morning >> the hando over from wall street is cautiocautious we are seeing the mixed bag with the positivity shanghai in china is up .50% we did have news overnight that some of the local banks will cut deposit rates. that is a positive sign that maybe a bigger interest rate cut to come in the future. that is giving a bit of life to the shanghai indices nikkei is in focus you see japan has pulled back from the three-decade high .880%. we had data on the gdp front japanese economy grew 2.7% in the first quarter this year. coming in higher than estimates of 1.6%. not the case for europe. we just had some data crossing now suggesting the eurozone gdp number has been revised lower to minus 0.1%

a bit of a disappointing macro data there ftse 100 in the uk is down .30%. the banks and minors have been in focus this week dax and cac 40 trading around the flat line. all eyes, as ever, on the ecb meeting next thursday. >> joumanna, thank you very much joumanna bercetche live in our london newsroom. time for a check on the corporate stories with silvana henao. >> thank you, frank. as joumanna mentioned, china's sixth biggest state banks cutting rates to boost spending and economic growth. china construction and bank of china are now offering 2.4% and 2.5% on three-year and 5-year term deposits. that is down 15 points from september. rep reports this morning that fox news notified carl tu-- tuce

carlson violated his contract after his show debuted on tuesday. and now coinbase minutes with a block of 4,000 contracts of coinbase clips expiring friday hit the tape when the stock was trading over $61 a share. by noon, in new york, coinbase shares had fallen 12% and the options traded for as much as $1 that is a gain of almost 450%. >> very interesting move there i think a lot of people are watching and we'll talk about that today coinbase sarshares down this morning. z silvana, thank you. the nasdaq hit the hardest in yesterday's session

the index leading the losses for the week down 1%. speaking with cnbc yesterday, jpmorgan chase strategist was pressed on the tech rally going too far too fast >> i do think it is exceptional. you know, it has been the breadth of the rally was narrow. some of the largest companies tied to the a.i. team sort of rallying tremendously. it is hard to say it cannot go more we think it is in a little bit of a bubble domain i think it is too late. >> for more on this and the day head, let's bring in delano saporu delano, good morning >> good morning, frank >> you heard marko there you have a lot of younger clients and people and millan p

ya'll -- millaenmillennials. right now, is it time to take profits or hold on for more? >> i thoi if you are looking at -- i think if you are looking at the semis and plays tied to a.i., this is a time to take profits. you look at people invested since the beginning of the year and nvidia, that stock has done well since the beginning of the year if you look at the last quarter print, they had a strong print and guidance the run-up is extreme. if you are looking at risk management, there is now an opportunity for investors to take some profits off the table and leave position long because it is an extreme run especially in the name like that. there will be volatility going forward and we still have a lot of data on inflation and jobs and what the fed is doing. that would be my position when it comes to some of the names that run up a lot.

>> big run ups maybe it is time to take money off the table. i want to talk about the sector later in the show and i'll bring up retail with you now we have seen double digit gains from the data. we have mastercard data here what do you see with retail? how do you feel about retail is it investable >> retail is interesting if you think about a lot of the projections from the beginning of the year is recession the retail is consumer struggling where it is not a great place for investors. there is a strong point in a silver lining for investors looking for retailers doing well especially online. a company we looked at is lululemon. it had a solid quarter with $2.8 billion in revenue strong store sales and direct to consumer was strong. that is where they are adding strength i think that is a strong retail

move with the direct to consumer and online growing same-store sales lululemon is doing well on that front. that is the bright spotty like to look at with retailers in this environment. >> we will talk about something that is not as sexy as other sectors. bonds. the one-month is 5.11% what is your view on bonds short bonds? long bonds >> it is not sexy. especially for younger investors when they look for growth and equities and different areas which are high flying. you know, at some point, this is a long time where people have looked at bonds. look at the data it is around 2007 where it was interesting to look at what bonds were doing short-term bonds are a great place for investors in the short term to hide out

especially waiting out for volatility and took money off the table. we have short-term bonds and you don't kneed to take on longer duration risk. short-term bonds are areas where folks can sit and catch income. >> you say short term. one or two or three? the six is higher than the one-month. the ten-year which is locking you in >> if you don't believe that rates are getting lower on the 10-year treasury, i would look at one-month to three-month. that gives you flexibility that is what we like to look at is the short-term. >> taxes wow. always great to see you. thank you for your time, delano. >> thank you, frank.

more to come here on "worldwide exchange," including the one word that investors have to know today. first, why it may be up to a.i. app developers to turn the tide on the apple vision pro with critical consumers and investors. we speak with one app developer to try to make that happen. a c-suite shakeup. shares of gamestop sink ahead of the open and we look at the best and worst performing stock baskets with the s&p hovering close to vehill-time gh a ry busy hour when "worldwide exchange" returns. meets bold new thinking. ♪♪ partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas.

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welcome back to "worldwide exchange." time for the big money movers. we start off with gamestop selling off ahead of the open after the company announced it terminated its ceo and elected ryan cohen as the new executive chairman japanese listed shares of eisai is raising expectations for full approval of the alzheimer's drug with the public advisory committee meets tomorrow shares of that up 70%. and lucid is set to enter the china market it will begin by selling imported cars. reuters reports production within china shares up 2%. turning to apple after it revealed the $3,500 vision pro

this week. reception for the product has been mixed, but what turns the tide is for consumers. you can run p inside the headse but they hope to go beyond 2d and create 3d apps apple giving software makers the hardware we have a developer working in a.r. with us wim reygaert wim, it is great to have you here >> thank you for having me >> wim, let's get to it. give us the elevator pitch for the app. who is your target consumer? >> we virtualized the painting

and our target market is pretty much everybody >> all right w wim, i want to talk about the hardware we saw the meta oculus headset a lot of people were not eager to get on board with it. do you see a bigger opportunity with this one? you want to get as many people on there as possible i'm looking at the cnbc review there is a social aspect you can hang your painting and your friends can come by to loo at it. >> we have a community around creativity we want people to show and get better at pointing in our app. we want to get as many heads in

the headsets as possible to show as many p people what the ben p fits -- benefits. i think the headset apple launched is a big thing. together with the announcement that happened this week, this is a big week for xr. >> it is a huge week what about mondetization? give us a sense how that works for apple, it makes so much money off the fees they charge you to be in the app store

>> they are not the only ones. every app store works on the same system. they take around 30% one developer will bring that down, but that is not sure it will be, i think, when it comes to monetization, that is how it works for us. we are growing as a studio to eight people now and we launched a year ago we have a market, but it is small. we have a popular app, if i may say so bringing more big players to the game will make it better we are happy with how things are going right now. it is not just apple, but microsoft and samsung. they are coming with headsets. they will be standalone headsets it will be interesting in 2023.

>> wim, best of luck with the app. stay in touch. let us know and we can actually play and i'll give my review good luck. >> thank you ahead on "worldwide exchange," retail is the worst performing stock basket since the s&p trade d above 4,300. we speak with liz suzuki when wit "worldwide exchange" returns stay with us predictive monitorig to address operations issues? we can help with that. can we provide health care virtually anywhere? we can help with that, too. is it possible to survey foot traffic across all of our locations? yeah! absolutely. with global secure networking from comcast business. it's not just possible. it's happening. ahhh! icy hot pro starts working instantly.

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welcome back to "worldwide exchange." time for the morning call sheet where we look at the upgrades and downgrades by firms you know -- my mic fell off. sorry about the technical difficulties we start with mega cap tech. ubs upgrading on amazon. raising it from $130 to $150 ubs sites amazon web services will reaccelerate in the fourth quarter. looking at shares of amazon up .25%. citi upgrading rio tinto. upside risk on the back of the china stimulus and notes it has been a laggard and jefferys is upgrading wynn from hold to buy the recovery is in the early stage and both are baked into

the stock price. sands is unchanged wynn down 1.5% time for the check of the headlines with nbc's phillip mena in new york phillip, the skies are a sight to see. >> something we have never seen before in this part of the country. good morning, frank. there are developments in the jack smith investigation into former president trump's handling of classified documents. the doj was told on monday that the former president is a target in the classified documents probe. a justices department spokesperson declined to comment. president volodymyr zelenskyy says hundreds of thousands of people are without drinking water after the dam was destroyed and flooded the area over 1 million acres will be

ruined finally, check out the video of hawaii's kilauea volcano. it rumbled back to life this week this is the fourth eruption in three years. officials say the activity is confined to the crater and poses no threat to the nearby communities. it looks eerily similar to what we see outside >> different story on the other side of the world. crazy what is going on nature phi phillip, great to see you. >> thank you. still ahead on "worldwide exchange," google cracking down on work from home. "wlddexcng ibaorwi ehae"s ck right after this

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we moved out of the city so our little sophie could appreciate nature. in just two days. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view. do you need mulch? what, we have a ton of mulch. as a business owner, your bottom line is always top of mind. ton. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network,

with no line activation fees or term contracts... saving you up to 75% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities™. it is 5:30 a.m. in the new york city area we are just getting started on "worldwide exchange. markets fighting to get back on track after stocks take a hit with tech seeing a sizable pull back after highhighs. futures are searching for direction. impressive gains for the year we are breaking down the haves and have -nots in the rally. and wildfire spoke is creating dangerous conditions now impacting the bottom lines of businesses. it is thursday, june 8th you are watching "worldwide

exchange" here on cnbc welcome back to "worldwide exchange." i'm frank holland. a live look at the skyline of new york city. seeing the worst air quality in 20 years as smoke from wildfires in canada continues cous to mov across the u.s we will have the latest on the conditions and the impact the conditions are having on one sector let's start with the stock futures of futures. we are seeing the dow jones industrial average in negative territory. let's get a check of the top stories from silvana henao frank, tiktok is looking to make a bigger push into ecommerce and a bid to take on amazon according to bloomberg, the app

parent company bytedance is looking to expand to $20 billion of sales this year the report adds that projections in rapid growth in southeast asia and the expansion of sales in the u.s. and europe would make up a small portion of the $20 billion goal google is looking to crackdown on workers who have not been coming into the office con consi consistently according to memos, the company updated the hybrid work policy yesterday. that includes tracking office data and speaking to workers not coming in when they are supposed to and attendance records in performance reviews. as the s.e.c. continues the scrutiny of binance, lawyers for the exchange are accusing gary gensler of serving as an outside adviser. the lawyers claim the documents filed say gensler offered to

serve in the role in 2019 with cz t they sat down for an interview with gensler as part of the course he was teaching at m.i.t. back to you, frank. despite the drop yesterday, the s&p is inching toward 4,300. let's talk about what is going on with the sectors in home building and retail heading in opposite directions. the home builders have been on a tear up 25%. it is gloomy for retail. marginally positive in 2023. john ovallo and liz suzuki wil be with us in a moment we start off with john mortgage rates are high.

doubled year over year when you look, less people are buying houses and your data came out. there are less people searching for houses why are the home builders doing well >> it is an interesting time, frank. thanks for having me of if you look at the existing homes, there is nothing out there. think about the other side of the equation with the smaller and private home builders. there is less demanded out there and think of the demand out channelled to the public home builders who are able to get inventory on the ground. more importantly, offer financing. no one is paying 7% from a public home builder. they are paying 6% or 5.5% everything is channelled through them >> it sounds like the home builders are helping with the financing? >> that's correct. >> how does that work? >> what they are doing is paying down part of that mortgage over

the life of the loan it is a hit to gross margin. returns are still very good because they have more flowing through the pipeline >> we see the commodity prices as well. you see the gross margin is being hit to help with the mortgages. we we see commodities regulate. does that create a tailwind? >> 100%. lower lumber cost is a good thing. labor is loosening there are cost benefit offsets coming into gross margins on the positive side. home builders are pencilling a return over gross margin that gross margin will move up and down if they keep things moving, they will do well. >> i know there is less inventory. everybody knew that. >> the data is monthly it is volatile

it was fairly close to historical norms on a sequential basis. we weren't concerned about that. overall demand has moderated for the public home builders, what is exciting is the demand out there which is heading toward them. >> you have the best of class. they are all doing the same things, at left the publicly trait traded ones. companies focused on middle market and first time buyers which ones are the best for investors? >> you hit it. first-time home buyer is the juice in our opinion need base and motivated buyer. d dr horton >> give us another one the first-time home buyer. >> maritage homes.

smaller version of dr horton good footprint we like them a lot >> john, thank you i appreciate the insight >> thank you >> let's bring in liz suzuki liz, the xrt has lost 17%. you are pretty bullish >> that is right i think retail broadly has struggled a bit. if you think about what is happening with the u.s. consumer, which used to be the strong point of the u.s. economy, it makes sense. the spending data is softer that is why we are bullish on non discretionary categories and more of an investment. you touched on home builders and home and value of the home the home improve many retailers

like home depot and lowe's are where we think some of the spending is more investment based. you do home improvements think going it is an investment in the value of your home that is where we are a bit more bullish. >> you are a little more bullish with the home retailers. i want to throw something at you. we had a guest earlier looking at the ecommerce numbers hovering around the double digit mark for the year so far 10%. 8% strong growth with inflation and we are heading into a rece recessionary environment >> any retailer with a robust business, an momni channel is th mosts s most successful in last few years. that is successful for growth

and margins for a lot of retailers. online tends to be more diluted. having the in-store ability to capture margin has been successful you know, i think really what is happening is the pandemic trends of people wanting to shop online and people wanting the convenience hasn't stopped that is why we are seeing strength in the ecommerce. >> i want to talk about something else valuation. a lot of the retail stocks trading at low multiplemultiple. is there a certain level where the valuations are so low they become attractive? >> absolutely. if you look at a stock like lowe's which is trading below 14 times next year p.e. earnings. that is buying back shares the total shareholder return story is positive here this is a multiple that is below its pre-pandemic average going

back 20 years which is a significant discount we think the market is pricing in pretty meaningful decline in sales which is not what we are seeing at all. we expect the market for home improvement specifically to be flat this year off three very, very strong years of growth. we're assuming this year will look more like 2022. we think the market will look more like 2008 >> you said something important. pre-pandemic we're in the post-pandemic era should we change how we look at retail target is trading 16 times, almost the price pre-pandemic. is it time to change how we look at the big box stores? >> we should not throw out the last three years and say it did not mean anything because of the pandemic shopping behavior changed. i think we should think about what is permanently changing the value of the home has

changed for us i'm at home right now. a lot of us are still working from home a couple days a week or more pre-pandemic shifts have happened and the retailers have been successful during this period have built a lot of equity and also built very strong balance sheets as a result of the pandemic we think they should get credit for that going back to pre-pandemic and value based on 2019 levels of sales and saying that is what we are going back to is not appropriate. >> liz, thank you. turning our attention back on the big story today if you are like most, feeds with pictures like new york looking like mars. smoke from the canadian wildfires creating an instagram moment a fallout from flights grounded

and people staying home. these fires might be the start the group keeping a weary on eye wildfire season when we come back ♪ to help you see untapped possibilities and relentlessly work with you to make them real. ♪

what do you get from the morgan stanley client experience? listening more than talking, and a personalized plan ♪ to guide you through a changing world. ♪ welcome back to "worldwide exchange." a live look at new york city and capitol hill the haze from the wildfire smoke blanketing the eastern u.s we will continue to watch that today. the smoke is creating dangerous air quality conditions forcing workers to stay home and

causing delays for ail travelers. let's get to nbc meteorologist angie lassman with latthe latest >> once we see the winds switching, we will see imp impro improvement. that doesn't happen until saturday and sunday. a lot of folks, especially in the northeast and in the midwest, are waking up to difficulty when it comes to air quality as far as right now. here is what we are dealing with 100 million people under the unhealthy air risk from the wildfire smoke through this morning. this will last into the afternoon hours in detroit and washington, d.c. and new york. all included in the worst of what we are seeing as we progress through the afternoon and evening hours, we likely start to see another batch of some of the smoke working through. notice as we pause at 5:00 this afternoon, a lot of that heaven dense smoke is working through

the great lakes and pennsylvania and new york which will be hazy. we will see improvement in new york city as far as what we saw yesterday when we were topping that list of worst air quality in the world by the time we get into friday and saturday and sunday, major improvements with the smoke working out of the picture and seeing quiet and more pleasant conditions, frank. >> i hope we can go out and be out without a face mask on angie lassman, thank you as states get smoked out in the east, one group is focusing on wildfire season out west. our contessa brewer is here with more >> frank, good morning the claims for smoke damage are starting to come in as insurers watch california and of the west coast with wetter and normal winter and spring which exploded growth of foliage and that would fuel wildfires later this

summer insurers used to consider it a secondary. no longer. eight of the ten costly evidence wildfires in the world have happened in california climate change risk is long term and can be tackled financial pressure is crucial and needs immediate response we hit a 41-year high of inflation last year. materials for home construction sky rocketed 34% labor costs shot up 27%. in california, insurers are not permitted to raise rates based on the risk on the horizon they have to base it on the last 20 years the state has an't approved rat hikes cequal with losses. now state farm and allstate not taking on new policies in

california california got slammed with claims over the winter colorado and pennsylvania and maryland winter weather in texas and louisiana, too it and washington state are seeing problems with regulators and fraud and litigation that sent insurers fleeing from florida. look at the allstate presentation new jersey and new york join california as states where allstate is having trouble making the numbers work in auto insurance. gallagher tells me this is a 50-state problem and where populations are booming in climate vulnerable state across the atlantic and the gulf coast. all of the smoke in the air should serve we are seeing unusual catastrophes and rate

insurers are limiting the coverage that lack of supply, frank, means insurers are paying more for re-insurance and passing along costs to customers which is a big reason why everybody watching right now has noticed you are paying more for property insurance. >> if you own a house or car or motorcycle, whatever, you notice the rates have been ticking up higher after they declined in the pandemic i want to be clear, is this all climate risk and climate change and wildfires and flooding or is there more >> one thing is the insurers get stuck with the legal bills and settlements were higher. that set the tone for the nation florida lawmakers tried to tackle that and changed the law. we will see how that works through the system

they have a big backlog. fraud is a big one there was a conference on insurance fraud. they are looking at this as a factor why costs are going up. a vast majority of people think it is okay -- not a majority of people a surprising number of americans think it is okay to commit insurance fraud. 16% overall. auto insurance, you have more than 30% who said it is fine to submit an inflated auto insurance claim. that makes costs go up for everybody. >> i remember they were giving money back because people weren't driving. >> they cost more to replace or repair your car. >> contessa, thank you. the one word that every word that everyone needs to know on "worldwide exchange," coming up. kari firestone has the latest.

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shares of gamestop selling ahead of the open after the company terminated the ceo and elected ryan cohen as the executive chairman shares down 18%. shares of tesla tracking for the longest win streak in two years. up 9% in the past nine days. if it can make it to 11, it is the longest win streak since january of 2021. japanese listed shares of eisai moving higher overnight. raising expectations of full approval of the alzheimer's drug when the advisory committee meets tomorrow data this morning showing the eurozone slipped into technical recession this year. it was well below consensus. fourth quarter numbers were revised lower and down 0.1 from flat meta revealing channels with a

first look feature to make the app a broadcasting messaging product. shares down .50% and lucid is preparing to enter the chinese market they will begin by selling imported cars. reuters reports that lucid will report local production within ch china. we are gearing up for the data week ahead. we have jobless claims and we hear from docusign and vail resorts. at at 4:30 p.m., we get the latest fed speak. we have a bit of upside movement with the nasdaq. s&p is fighting to break a key

level of 4,300 that is seen by many, including our next guest, as the level to break through to keep the rally moving forward kari firestone is with us. kari, it is great to see you >> nice to see you, frank. >> we were just talking about it 25 points away from 4,300. what is your "wex word of the day" today >> it is 20. from the bottom to 4,300 is 20% that is psychological. a number is just a number. if we hit that level, i think it is a confirmation to investors that this is a rally that is not just a very short-term blip. it is 20%. that's meaningful. it is meaningful to people who have been out of the market and haven't put money back to work

and really feel they are missing something that the economy has been better than expected we are not in recession and inflation is coming down and rates are close to peaking despite the problems remember, the market was down 18% last year. we are not halfway back to where we were because it takes longer and more to get back to even when you are coming up than going down. >> certainly something to watch. a lot of people wondering if we breakthrough today a decline with mega cap tech yesterday. you sold apple about a week ago and you went into microsoft. overall, do you think it is time to take profits from tech or shift? >> it was a few weeks ago. same story we felt that at the multiple where apple is now, 30 plus times earnings, and the growth not as robust as it was, of

course, at its size, we should have taken profits that was a mistake it has gone higher microsoft has potential because not only is it the a.i. leader and that's not the reason we bought more, but it had been sluggish we decided this is the time to add to microsoft and take a little bit off apple other than that, we made no changes in the mega caps we own many. we are a big owner of alphabet and meta and salesforce and apple and amazon we are not out of this sector. it is a diversified portfolio. it is hard for anyone to be overweight the mega caps it is half your portfolio or fund we need to see more participation and we are beginning to see more participation in the market. last week as the first time since march when all sectors of

the s&p were up together >> give us advice for investors, especially today we have seen the s&p outperform the mega cap tech names. is this the time to go to the spy? >> it is ann interesting question up the until a week ago, the s&p was about 9% and the equal weight was only up 1%. now we are starting to see participation across other sectors, whether it is financials, which was the worst performer this year, but we like schwab and american express and health care names which are doing better bio-tech also. >> something to watch. kari, a lot of people are happy to see broader participation

kari, great to see you that is it for us on "worldwide exchange." awbo cinupquk x"omg next thanks for watching. d scho ard wk meets bold, new thinking, ♪ to help you see untapped possibilities and relentlessly work with you to make them real. ♪ ahhh! icy hot pro starts working instantly. with two max-strength pain relievers, so you can rise from pain like a pro. icy hot pro. we moved out of the city so our little sophie could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like?

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good morning shares of gamestop are plunging after the company abruptly fired the ceo and named ryan cohen executive chairman google is cracking down on office attendance and asking fully remote workers to switch to hybrid model. gridlock in washington speaker mccarthy cancelling house votes. it is thursday, june 8th, 2023

and "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 u.s. equities. the dow was up and the s&p and nasdaq were down yesterday you see green arrows dow futures up by 5. s&p up 4 and nasdaq up 24. if you have been watching treasury yields, we will watch additional treasuries issued in the wake of the deal with the debt ceiling the 10-year treasury at 3.801% 2-year treasury up to 4.056. th