billionaire, we're all going to go to artificial intelligence. >> we need to be vigilant, but the real dystopian place is if we put road blocks in front of the good guys building good ai. >> while the fluid ai business models, the ones in the background are the suppliers to ai companies are going to continue to win. it is 5:00 a.m. here at cnbc global headquarters, and here's your "five@5." first, prepping for a pause. inflation continues to trend downward at the risk of recession, it's not off the table yet. ahead, stocks are trying to do something to add to the already impressive gains with the nasdaq and season sitting at their highest level since april of 2022. and the ai chip race, it's heating up what rival amd just unveiled and who its first big buyinger could be. plus tracking tesla's record run as we have another major

automaker says it's considering using its supercharger network. later on in the show, why live streaming is not the only new thing that netflix is offering table for two, anyone. it's wednesday, june 14th, 2023, you're watching "worldwide exchange" right here on cnbc ♪ good morning and welcome to "worldwide exchange. i'm frank holland. thank you for starting your day with us. let's kick off the hour with u.s. stock futures with the nasdaq and s&p 500 sitting at their highest level since april of 2022. the s&p and nasdaq up about a quarter of a percent, the dow jones down very slightly it's been an impressive run. while the nasdaq and s&p are at a one-year high, the dow is 1.4% from a one-year high the russell 2000, just over 6%

from its recent high, 6.6% among the sectors leading that charge, we're talking some of the normal names tech, industrials, communication services all set to open at fresh one-year highs see them moving higher yesterday. same, too, for a handful of stocks including netflix, adobe, o oracle, walmart, amd all of these stocks are sitting close to 52-week highs right now. all of them moving higher, walmart the exception. not to be outdown, nvidia close at $1 trillion for the first time ever after trading above that level back on may 30th. shares of nvidia up almost 1%. the next fed policy decision is due out at 2:00 p.m. eastern time we're counting down to it. with a majority of interest rate trade irs expecting the central bank to pause its now 15-month

rate hike campaign we're checking the bond mark look at the bond yields. they're looking higher the benchmark, 3.81, 20 basis points higher than at the start of the month the short end still seeing a bit of a pop right now we also have to look at energy oil coming off a rock solid day amid new hopes for china's road to recovery, china reducing its short-term lending rate. wtf back up to 70 bucks a barrel brent crude at 75. both up at around 1% natural gas taking a slight dip to the downside. let's get a check on the action in asia and europe with our joumanna bercetche joumanna. >> good morning, frank we've got the stoxx 600 up about 0.4% we obviously had that positive handover from u.s. markets yesterday. don't forget that europeans are also eyeing their very own central bank with the ecb

meeting coming up tomorrow in terms of the split, we're seeing strong leadership from autos which means the france contact is looking good and the ftse 100 as well even though we're above that key level, the data has been coming in very, very strong on the inflation side we've seen a big move that's having an impact on any interest rate sectors switching over to asia, the picture was somewhat more mixed. we had the shanghai composite dip, trading slightly in the negative expectations are building that the pcob may also introduce a more medium term interest rate cut. that's something to watch out for after their short term repo cut introduced yesterday, but the nikkei continues to go strength to strength, still at a three-decade high. one thing in particular that continues to stand out, and that is toyota. >> joumanna bercetche live in

our newsroom thank you. time for a check on the top corporate stories, our silvana henao. good morning >> frank, good morning to you. amazon web services is the world's largest cloud computing service provider is reportedly considering using amd's newly unveiled artificial intelligence chip, though, according to reuters, no final decision has been may this comes after the chipmaker yesterday outlined its new hardware and strategy for the ai market, one that is currently dominated by rival nvidia. here's amd ceo lisa su on "closing bell: overtime" yesterday. >> we've been working on this roadmap for many, many years you know, mi 300 is our newest generation chip, and, frankly, it's incredible. the amount of technology we have on this, 153 billion transistors. e mi 300 is actually designed

exactly for this use case, and so we're really, really excited about it we've been really -- customers are super excited about it we're working closely with them. we will sample in the third quarter and be in production by the end of the year. >> a u.s. federal judge is putting a temporary hold on microsoft's $75 billion deal for activision blizzard, giving the ftc more time to make its case as it seeks to block the transaction. now, the judge in the u.s. district of california has set an evidentiary hearing for later this week with more likely as early as august. now, microsoft is states to close the deal is a little over a month away, and modelo is the newest best-selling beer this comes amid the widespread boycotts of budweiser products that started back in april in response to the brand's

partnership with tr trans influencer dylan mulvaney, frank. turning our attention back to the fed market, the fed's latest policy decision will be out at 2:00 p.m. later today the stocks stalled a bit the markets are averaging a more than 1% decline in the hours after the policy decision with the worst selling coming in the final hours of trading anticipation over a potential shift in the fed's rate hiking campaign not hitting the equity market, trading in options on u.s. short-term interest rates heating up and transitioning for a pause today, jpmorgan adding it's seen an increased appetite not seen since 2019. let's talk more about this with chris. chris, great to have you here. >> great to be here. i want to ask you, are we going to see a pause or is this just a pit stop for july? >> well, a skip, a pit stop.

just don't call it a pause i would agree with market consensus we're not going to see a rate increase with this fed meeting. we could see another one the markets are shrugging it off. >> i also want to talk about the money you're managing. i'm talking about the gabelli trust gbt. some of the parent companies are comcast, sew ony, and also alphabet do you see it outperforming and what are you staying away from in. >> it's done well. actually last year was a challenging year there are cyclicals with

advertising, but names as you mentioned have long-term growth drivers. obviously alphabet is being viewed as a winner in ai sony has terrific technology in ai, also in gaming and sensing so, yeah, we think that's long-term a winner sectors that we're avoiding. banking is still probably going to struggle. rate increases put more pressure on funding costs and interest margins. >> you're a media guy. you have some picks for us today in a live events space one thing that's interesting kind of under the radar play, it givens you a piece of the atlanta braves why is that a smart pick >> atlanta braves is a public company. there are a few ways there are 62 million shares of stock. it hit 40 yesterday. you ee effectively acquiring the braves for a little over $2 billion. based on a sale of a piece of the phillies last week, we think the braves are worth over $3

billion which translates to a price in the mid-50s the catalyst is liberty media which controls the company is going to spin it off as an sate-based company in a month from now we think that sets it up for an eventual owner to a private owner. >> a let of picks for livenation all the stocks you're picking for us today at least, they're consumer discretionary, so do you think the consumer just has more room to run >> you know one area that's held up quite well is consumer spending on experiences and this predates covid you know, it's been about experiences, not things. covid added fuel to that and the consumer as evidenced by -- if anybody went to the taylor swift concert, has a strong demand for concerts and sporting events livenation takes a piece of all of those they benefitted the year by some of the reopening beyond the u.s. and we think that continues. >> chris, thank you for the

picks. glad to see you. i'm glad you enjoyed the taylor swift concert. lots more to come on "worldwide exchange. first, tracking tesla's record run as another major automaker considers its supercharger network as its new charging standard later much more on the policy standard. we'll have more from chief economist ellen zentner. a warning to patient investors much more on "worldwide exchange" when we return stay with us well, what if you partner with ibm and red hat, use a hybrid cloud solution to connect data across clouds, then analyze all that data with watson. okay, but this needs to meet our... security standards? yup. compliance standards? mm-hmm. so they get the insights they need... yup. in real time... check. ...to make quick decisions? check. aaaand check. that's the solution ibm and a global bank created. what will you create? ibm. let's create.

welcome back to "worldwide exchange." time now for your big money mover, three big stocks this morning. we're looking at logitech. the computer accessory maker said the ceo/president is resigning immediately to pursue other opportunities. he will remain with the company for the coming months to facilitate a transition. also watching shares of alphabet the antitrust chief will hold a news conference at 6:45 eastern time without adding any more details, but reuters is reporting the conference will focus on alleged anti-theft

practices. and the newly minted ceo o shell looks to add to its fossil fuel. shell's ceo will be on "squawk box" later this morning in a cnbc exclusive we're going the talk much more about chelator on this hour. coming up on "worldwide exchange" this hour we want to talk about the latest on the future of manchester united, the soccer team or football team, depending where you are, and the potential new owner. a report from manchester coming up stay with us

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welcome back to "worldwide exchange." let's get a chet of the headlines with frances rivera. in a courthouse in miami trump through his lawyer entered a plea of not guilty to 37 accounts over his handling of classified documents after trump returned to his home in bedminster to address his supporters while demonstrators on tuesday remained mostly peaceful, an anti-trump protester was detained and questioned as he jumped in front of trump's motorcade as he was departing. at least sick people were killed by russian missile attacks. it comes a day after 11 were killed in an attack on the

hometown of ukraine's president zelenskyy. and florida panthers needed a win to stay alive in the stanley cup finals, but vegas had other plans. the golden knights reeled off five straight goals to blow the game open. florida could not claw back and vegas wins the stanley cup, 9-3. what a feat for this franchise, so new and well-deserved frank, we send it back to you. >> frances, thank you very much. turning our attention back to shell, shares up in the prae market in the u.s. after boosting its dividend by 15% and doubled down on its fossil fuel production strategy. joining me now, alan good. alan, thanks for joining us on this news. >> glad to be here. >> the announcement today, they're increasing the dividend, doubling down on oil what's your price for this stock? what's your rating did it change on this announcement >> yes, i think the overall

announcement is positive but a little less than what the market was looking for. on the oil side they said they were going to hold production flat at current levels to 2030 the current decline annually is 1% to 2% i think they were looking at a complete reversal on that and looking for growth they were going to go to the lng business then we got some cap ed productions. then there's the increase in the shareholder return target which brings them in line. so i think what we saw earlier again is positive but maybe not everything the market is looking for. we're going to need to see more detail later this afternoon particularly around the power business, which i think was the main area of investor concern. overall, though, to answer your question, nothing changes. i think the u.s. adr is worth about 63 it's a 10% discount today.

so far i haven't seen a change on that. >> what about the new ceo? part of the statement is the company's going to focus on performance, simplification and that seems to raise some concern for investors and the core business. >> i think that was the first step in 2020 they came out with a basic gdp that included a dividend that was not well received you can see that in the valuation of the share since then i think it's to cause control, keep the focus on the core hydrocarbon business while stepping out in areas that make sense from energy transition i think those have been the core

messages resonating. we're going to stay focused, and when we do spend on carbons, it's going to make sense. a new report that growth will start to taper off in the next few years especially follow russia's invasion of ukraine consumption in 2024 will grow at half the rate we're seeing this year what does that make you think about the your y'all sector of shell and some of the other big names out there? >> oil demands certainly in the near term is going to slow up or, you know -- slow up or speed down, just depending on what happens with the macroeconomy. there's not a lot of viable substitutes for the oil demand we see today even if you look at the aggressive iea adoption, you're looking at demand for chemicals

and jet fuel any sort of work from home, any sort of russian fallout, we continue to see oil demand growing through 2030 and maybe even beyond and certainly a very long and slow decline in 2050. so, you know -- >> wait, wait, one second, allen, this is a very contrarian view part-time think oil demands are going to taper off certainly not next year but in the next few years. what's giving you confidence it's on the rise. >> our firm looks at immense growth but it takes a long time for a car fleet to turn over we're talking about sales rates. this is going to take a lot of time before evs start to make a meaningful impact. meanwhile you continue to have strong growth in emerging

markets. you don't hviable substitutes fr jet fuel you know, the underlying fundamentals when you look at the usage of oil, you just don't have the available substitutes today that would suggest that oil demand is going to fall off dramatically any time soon. >> allen, we have to liev the conversation there you're definitely an oil bull. thank you. great to see you zwriet ahead here on "worldwide exchange," morgan stanley chief u.s. economist ellen accident never is here. we'll tell you why she thinks investors should pause today and another in july. if you haven't already, follow us on podcast. check out apple, spotify, other pod apps check out the economists at the virtual financial adviser summit there's still time to sign up. scan the qcor de or visit

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it is right around 5:30 a.m. in the new york city area. h here's what's still on deck. the central bank largely expected to pause the rate hike campaign for the first time in 15 months as investors look for clues on the policy path forward. the tesla stock making 13

straight session of gains. we're going to dive into that. and the ai war, they continue to heat up with google the latest company to unveil new features around this hot technology, but u.s. regulators looking to pump the brakes on certain aspects of the rapid increase of ai you're watching "worldwide exchange" right here on cnbc welcome back to "worldwide exchange." i'm frank holland. thank you for starting your day with us. let's pick up the half hour with a check on u.s. stock futures with the s&p and the nasdaq. they're sitting at their highest level since april 2022 the dow in the red, actually falling a bit when we mentioned this earlier, but the s&p and nasdaq both fractionally higher right now. we're also looking at the bond market as we get a look at the fed decision at 2:00 p.m. eastern time

we're going to show it to you, i promise. we're going to start with the benchmark 10-year, 20 basis points we also want to look at oil. this is after china reduced its short-term lending rates we're seeing wti just at 70 right now. it was a tick above 70 a short time ago almost a percent higher, brent crude off of its highs, just about 75 bucks a barrel. gnarl gas down half a percent. now to our top stories, silvana henao is back with those. >> the s.e.c. is weighing new rules for brokering when it comes to ai. they would focus on firms using ai to interact with clients in a push to crack down on conflicts of interest connected to the technology now, the report says that the new rules could be proposed as

soon as october. meanwhile google is launching two new artificial intelligence-powered features for advertisers, ones that will impart brands across the services including gmail, youtube feed, and shorts. and disney announcing a major shakeup to its release schedule for a number of high-profile movies. the company will delay several upcoming films in the avatar, "star wars," and marvel movies they declined to comment but it comes as the hollywood's writer strike continues, halting production, and a number of movies and tv shows, frank. >> silvana, thank you very much. turning back to the fed, we're just hours away from the fed's rate decision at 2:00 p.m. eastern. that will be accompanied by company forecasts followed by

the fed chair's comments at 2:00 p.m. for the first time in 15 months, policy makers appear to be ready to pause their historic rate hiking campaign. the odds of no hike has jumped from yesterday headlines show inflation slowing coming inline with forecasts but that's double the fed's preferred market powell and the fomc may emphasize they're keeping all their options open to hike at least one more tomb this year in july, maybe september, something traders are pricing in as well joining me now, ellen zentner, chief economist at morgan stanley. good to have you this morning. >> thanks for having me. >> i'm sure all your colleagues are asking the same question, is this a real pause, a pit stop, or do you see more rate hike this year? >> it's a real pause some are calling it a skip, which means it's brief if you look at it through the

lens policy maker, if data at hand suggests you should pause it, what can be so different about that data that suggests you come off that pause? so i still believe today the markets are overpricing the probability that this is just a very temporary pause and they hike again at the very next meeting. now, i think you should have some ort risk priced in, they could resume risk hiking at some point this year, but based on my forecast, which i have to base my fed call on the forecast, the inflation is going to continue to increase but stay high, jobs staying low but resilient, everything moving in the right direction, so i think the fed stays on the tightening bias, but they hold it high for a while long sneer it sounds like a soft landing so we're seeing a pretty strong route. the s&p had a 52-week high

the nasdaq is continuing to increase not only pricing in a pause, but maybe even a cut. >> yeah, so, i think that they don't need to cut until 2024 if you think about from an economist's perspective uncertainty bands around your forecast, and the fed has many especially considering their policy tightening and policy moves, then it's not unthinkable they may have to cut earlier the question is why are they cutting? are they cutting because there's economic disaster, sharp cuts close to the quick are they cutting because they're moving along the path they desire and it's time to normalize policy i think a lot are pricing in and the fed will be cutting earlier than that because the economy is not going to look great. >> i want to be clear. you say they would cut before they get to 2% inflation because

of other macro factors in the economy. >> yeah. because you've got trend inflation that will be coming down against the backdrop of an economy that's been growing slowly below its potential and job gains that are slowing, and so if that's the case, you don't need to hold rates high for that long, right? you still need to hold them high, but everything is moving in the right direction when it's dropping below and still moving lower, that's the time you can look at normalizing policy neutral rates are falling and you're just chasing those neutral rates lower. >> all right so before the july meeting, we have two big things coming up. we saw cpi yid we also have a jobs report just for all the investors out there, they're hanging on your every word i know the phone's hanging off the hook, what do you see to keep us on this pause path >> pc is going to feel like old

news when we got cpi yesterday, we get ppi later today, that gives you all you need to know what core pc is going to look like. you get another jobs print and cpi print before the jobs july meeting. so jobs -- i think 250,000 plus keeps july on the fable from the market pricing perspective i don't think it gets the fed there. i think it's going to have to take something like that core cpi excluding housing, excluding medical. 0.7. it's a really high bar it has to reverse the slowing trend we've seen with inflation. i put the bar very high to a july hike. >> is there any other report we should look at i know a lot of people were concerned about the banking situation and that could influence the fed but that seems to have kind of eased and just normalized. >> credit conditions are tightening we're going to continue to see

that i think what's important is that demand for loans is also falling at the same time, and so this looks like a normal downturn in the credit cycle this is not a credit crunch where credit chokes off the economy. certainly something like that is going to matter in terms of is the fed even comfortable with staying a pause? would they need to cut for some reason >> a lot of people are hoping for the cut. >> i think they'll have to wait a while for it. >> you have a very optimistic take i think people are going to agree with you thanks very much for being here. coming up on "worldwide exchange," one of wall street's big money movers as of late, tesla continuing its monster run, the potential new deal that could provide it with fresh juice. the conference is going to be live on the ground at vivatech where all the buzz is ai first as we head to break, the beatles looking to get by with a little help using ai i think that's a song.

at least according to paul mccartney. he's telling bbc, ai technology was used to clean up john lennon in an old recording. taco bell and crocs. unveiling a stylish new twist, the mellow slides. faye'll have a chance to get their hands on the shoes a week early. netflix is opening its first ever restaurant. for a limited time the los angeles pop-up called netflix bites will open up this month. it includes a tasting menu ods d x says will give fans an foiea one-of-a-kind experience "worldwide exchange" will be back in just a moment.

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their longest daily win streak since the company first went public back in 2010. this stock has had a wild ride so far this year up 110% helped in part with deals by ford and general motors with theous of its supercharger network. jiening me now to discuss, craig ir-winn, managing director good morning. >> thanks for having me. >> i want to look at one of the moves in your recent note. over the last month, tesla up over 50%, nasdaq up 11%. give us a sense. how much of this upside move is the supercharger deal and all the presser around that. is there something else moving the stock high >> there are two things at play. the supercharger network

everybody wants to speculate how much money they're going to make we're guessing we don't know what pricing is going to be or if pricing will identical or greater than tesla customers for general motors, ford, and stellantis. the rate was cut june 3rd it quiet le went back to 7500. so there's quite a lot of optimism around that, and we think it's misplaced these are obviously sort of optically positive things for tesla. people want to own tesla it's a great company it's category king they're benefitting from the positive headline momentum that you're saying misplaced. i want to ask you.

overexuberance or misplaced. isn't this going to be recurring revenue for many, many years >> i would say misplaced for the -- the subsidy change. this is very positive, right i always think tesla use misnomers like full self-driving and autopilot. there's human intervention that's absolutely necessary. another one sounded pretty aggressive it looks like it's gone their way. companies are committed to the success of evs similarly to tesla. >> apparently a lot of upside, craig. clearly a lot of upside here we've got to play the other side of it though is there any risk when it comes to this stock? looking to ev adoption, only 1% of all cars are electric according to your research that seems particularly bullish

for tesla. is there any long-term risk in this. >> there are two huge risks. one, what was the actual reason elon musk went to beijing? so shanghai from what i understand approved the permits for expansion of the giga factory there to 3 million vehicles i'm hearing that's not the case out of beijing they want to protect the domestic market. there's the darling and others i'm hearing that maybe there are requirement problems they need 3 million units to get to the 10 million people are dreaming about right now that's a big risk. we need to see that probably play out over the next six months or so. >> okay. >> the second thing is -- >> craig, we've got to leave it there. tesla shares up almost 2%. thank you for the insight. that risk you talk about, we'll

have to follow up on that and have you back. europe's number one tech conference is up today arjun kharpal joins us live from paris -- the showroom floor in paris. arjun, what are you hearing about ai >> reporter: good morning, frank. you can see behind me, it's absolutely buzzing here, buzzing about ai everyone is talking about ai here all the startups are discussing ai all the talks on stauj about are ai, and there are a few strings at play. there's a whole talk on how europe can catch up with the likes of u.s. and china in terms of ai and giants like microsoft, nvidia, google, and others as well the second trend is around eu and regulation eu is pushing forward with the eu artificial intelligence act,

a first of its kind-kind of law anywhere in the world regarding ai and taking a basic approach to criticisms, saying it's too tough and may stifle the innovation others say, look, it's come just in time, very much need, as the technology is developed. that's the theme here. france's top brass in terms of politicians will be here french president emmanuel macron will be here elon musk expected to make an appearance on friday again, ai will be top of mime as well as france's bid to try to open up a big tesla giga factory here, frank. >> big names there any other announcements? i know you're on the ground, doing interviews what else can we expect from this conference? >> i think we're going to hear a lot about the company's ai strategies in particular there are a few chinese company,

alibaba. amazon is on the ground as well. big u.s. firms especially around europe i think the europeans very much are trying to use this as a way to say, look, we have interested companies too. we can also compete with some of the big tech giants out of the u.s. and china that, i think, is going to be the key message here there's going to be a lot of expectations and announcements around new ai and generative products it's going to be top of monday and here at the conference, frank. >> arjun kharpal live at vivatech in paris. we're going to stay over in europe we continue to watch shares of manchester united after talks of new takeover speculation arabile gumede is on the ground in manchester with the very latest arabile. >> reporter: frank, good morning to you look, what certainly is happening is this deal could be worth about 5 billion pounds or so, right? that is a massive, massive deal.

it could effectively become the biggest sporting deal in history, and it's one of those that has really brought on quite a few rumors with regard to ownership. manchester united currently sitting with a valuation around that figure, but heading toward $23 a share in the new york stock exchange, and that spiked up on rumors that the qatari businessman and the former board of credit suisse may have been successful in getting bid for manchester united, having previously offered his fifth and final offer last week friday for the supposed 5 billion pounds. there is also another contender, a front-runner, sir jim ratcliffe, who is an englishman who's always been a fan of manchester united. he said he would be willing to take a 60% share of manchester united with the 40% still owned by the current owners, the

glaciers still rumors, but nothing confirmed as present, but certainly a big deal in the sporting world. >> would this be 100% control of the company as a private club? >> he's willing to take on 1100% of the club which would take it off the new york stock exchange. but, of course, in 2012 when the glaciers had actually floated a number of stocks for manchester united to try to drum up as much equity as they could possibly get out of that deal shake ja sim shas said he'll put in money other clubs have spent quite a

lot when it comes to infrastructure, and the hope is this will make it as good a club as some would hope it should be. >> arabile, i was hoping to see you on the pitch i wanted to see what you had great reporting. great to see you. ahead on "worldwide exchange," the one word that every investor needs to note today. plus we key up what's ahead and atay be risk on once we get past the central bank. is it possible? with comcast business...it is. is it possible to use predictive monitoring 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. this is ge aerospace, advancing flight for future generations.

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back to "worldwide exchange. time for your wrap-up. six things you need to know. the world's largest cloud provider is reportedly using ai ch chips, though no final decision has been made. a u.s. judge is putting a temporary hold on the $75 million deal for activision

blizzard as it seeks to block that transaction shares of microsoft are up fractionally activision blizzard down almost 1% shell says it's increasing its percentage as the newly minted ceo is looking at the business shares of logitech sink after the computer maker says the ceo president is resigning effectively immediately. shares of that company down 9.5% watching shares of alphabet this morning the european commission says the antitrust chief will hold a news conference at 6:45 a.m. eastern without adding any more details, but reuters is reporting the conference will focus on alleged anti-competitive practices, shares flat right now. and modelo is the best-selling beer in the u.s., dethroning bud light. that's according to industry trend tracker. we're getting ready for the trading day ahead. we get a look at the latest

weekly applications along with the major future price index as for earnings, out after the bell at 2:00 p.m. the big show the fed decision, the key driver for the u.s. market. le here to break this whole thing down, erin, thanks for joining us. >> good morning. >> give us really quick, where are you at pause? pit stop where are you at today also how are you advising your clients po position themselves before that 2:00 meeting >> i'm expected to pause given the cpi report yesterday i think it would be very helpful for the fed to take a break. we have 12 months of declining inflachlgs even though it's coming from energy, a lot of the recent inflation or slower inflation, it would be extremely helpful to avoid a recession

now, when it comes to how to trade it and what to do today, we've already been in sort of a two-week rotation out of the mega caps -- not out of but more into taking risks on, small caps, some of the homebuilders and really more just a greater breadth in this particular rally since the beginning of june, and i think that rotation is going to continue when the fed reports today and particularly during the press conference as long as it doesn't say anything too hawkish. i'm expecting calm to relatively dov dovish your small caps in particular are really starting to catch up because they were so undervalued in the past four months. >> with that in mind, i think i

know what it is, but what's your w.e.x. word of the day >> rotate. be ready to rotate in and rotate out because we've got to be nimble we know that there are a lot of risks and headwinds ahead of us that could happen toward the end of the year as we look at further rate hikes and recession, but i think we've got a good four to six weeks of this continuation of the smaller caps and some of these underdogs outperforming, and so let's get in and take advantage while we can, but be ready to get out. >> let's be a little more specific about where we can find opportunities. you talk about small caps. what's another under the radar at play? >> one of them would be not just the u.s. small caps. obviously i use the spyders, s&p, there are other opportunities. i think some other underdogs within the large cap space have

been the homebuilders. so not necessarily just part of those lower megacaps within the large caps. >> so a lot to watch for sure. we'll have more in our report after the bell as well erin gibbs, great to see you. that's going to do it for us on "worldwide exchange." we've got "squawk box" coming up next thanks for watching. e more effi? i'm listening. well, with ibm, you can use software to help you connect and analyze data— from hvacs to elevators to lights. what if we use ai-driven insights to pinpoint inefficiency? yep. and act on it. saving energy, money... ... and emissions. yup. that's a big one. now you've built something better for everyone. that's the sustainability solution ibm and a global real estate company created. what will you create? ibm. let's create.

good morning, markets -- wait a minute. good morning markets awaiting the fed decision at 2:00 p.m plus we're going to get the read on future prices before the opening bell straight ahead.

closing in on 4200 a u.s. judge temporarily blocking microsoft's deal to bike activision. we'll tell you how that could change the time line for that acquisition to close plus, bud light dethroned as the top-selling u.s. beer. we'll tell you which branch has taken over the top spot. a lot of commercials for this one ta'u wednesday, june 14th, you're watching "squawk box." ♪ good morning, everybody. welcome to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm beck request quick along with joe kernen and andrew ross sorkin, and let's take a look at what's been happening with the u.s. equity futures at this hour you're going to see right now, dow futures of