5:00 a.m. and here is your five at five. we begin with what's happening, the treasury secretary in china as washington and beijing's trademark shows no sign of ending. stocks extending yesterday's losses as investors look to jobs data in the next two days and hours early already 10 million users meta platform launches threads, what some people are calling a twitter killer. plus the biden administration appealing a ruling barring it from mingling with social media

companies and later in the show a ceo interview from x po logistics. you are watching "worldwide exchange" right here on cnbc. >> good morning, welcome to "worldwide exchange" i'm frank holland. let's kick off the half-hour with stock futures looking to extend yesterday's losses. you can say red across the board down half a percent across the board the dow would open 150 points lower but it is early. we are checking the bottom market, this is noticeable or notable i should say. 10 year at 9.7 back to the level that it was before the collapse of svb. we will see it take higher and

higher as we get closer to the jobs report and the next fed meeting. on the energy sector upside movement, up over half a percent at 7220 per barrel, almost 79 a barrel up half a percent of the market looking at demand fears from china and some other cuts when it comes to saudi arabia and russia creating movement in the market up almost half of a person. more on the global energy market in a moment, but first turning to the top story the treasury secretary janet yellen arriving in beijing for three days of meetings with the chinese counterparts, this comes days after china imposed export restrictions on two metals crucial to the fabrication of semi conductors. and the u.s. the biden administration considers restrictions or china related to artificial intelligence and cloud services. on the ground to beijing.

what do we know about today's agenda? >> reporter: the treasury secretary is expected to be arriving around now. on the agenda it is likely she will be meeting with the chinese presidents top economics team, the new team, many of whom she is unfamiliar with and she supposed to be meeting with the business community and to communicate directly with what the treasury has described as areas of concern with the chinese. she is expected to discuss global challenges, namely climate change and debt distress in poor nations. based on commentary and state reports the chinese are seeking what they call signs of u.s. sincerity. that would be some combination of ending or reducing trump era tariffs on chinese goods, lifting sanctions on chinese

companies and stopping export curbs. the chinese argument has been that the tariffs exacerbate inflation for the u.s. and the export curbs and sanctions disrupt trade and investment with companies and they believe that janet yellen is a pragmatic person, in the past she has expressed some skepticism over the benefits of the tariffs and has called coupling disastrous. she says she would like to find common ground and there is reason to believe the chinese want to find common ground because of the condition of the economy and the growing concerns of other countries looking to the risk or cut reliance on china. including washington and countries in the eu and in asia. >> i want to turn back to something you mention. china seeking sincerity from the u.s. and the visit is

almost 5 years to the day since the trump administration imposts those tariffs. how big of an issue is that expected to be. president biden kept them in place and janet yellen has pushed back. >> it is expected to be on the agenda, the chinese want the tariffs to be lifted. they have expressed that in the past. unofficially and in the state media. it looks unclear as to where the chinese would be willing to give themselves in order to reach that compromise. this week a news agency has been running a series on what the correct course of action should be for u.s. china relations and they have said the crux of the problem is the u.s., what they describe as wrong perception of china. so that and the fact that these export curbs that the chinese

have imposed are still going to happen, the commerce ministry has defended them saying this is international practice so all of this really leads people to believe that there is probably not going to be a major breakthrough when it comes to altering the course of policy that beijing is willing. >> eunice yoon, thank you. silicon valley and meta platform launching what some people are calling a twitter killer. launching hours ahead of schedule. the latest and the question is are you going to friend me on threads? >> we will see what happens. meta debuting the new app to take on twitter, threads is the text focused messaging app which is live in 100 countries after getting an earlier than expected launch hitting the app store last night.

mark zuckerberg writing his first message on the app saying let's do this, welcome to threads. adding in another message at least 10 million users have signed up within the first several hours and much like twitter the app features short text posts that users can like, repost and rely to. this comes as twitter continues to grapple with various decisions on the direction of that app by elon musk with some analysts and industry followers dubbing threads a twitter killer, it also marks the latest shots fired in the rivalry between mark zuckerberg and elon musk. the rollout of threads providing a bump to shares of meta ahead of the open with shares timing higher. >> up by 1.5% so a lot of excitement. we will talk much more about this later on in the show.

now we are turning to the energy market. in vienna, austria opec is holding its annual seminar looking like a policy meeting as world producers look to balance production with recession. dan murphy on the ground speaking with some high profile attendees. good morning, what are you hearing? >> good morning. oil prices are steady but range bound as we see top ceos and policymakers gathering for day two of the seminar. the mood on the ground is one of pure optimism. they expect recovery in demand as the chinese economic story improves and i have been speaking with big oil's biggest players including one ceo who says the current pressing environment when we see oil at 70 ust is very conducive for oil and gas investments. listen to what he had to say.

>> we are making bigger investment. guidances $45-$55 million and growing so that shows our confidence in the future. we made a big investment in china, big investment in china. 7 billion in korea, we have major investment in malaysia and we are looking at additional investment. we have a lot of confidence. asia is growing. >> reporter: the question is, if demand is so good why have we not seen prices going up? another question i have been asking and i put to the energy minister, he weighed in on the pricing outlook and says he is not so concerned about the demand, the bigger concern is supply. >> even though you don't see the sentiments with the price,

what is important is not the price, what is important is the level of investment coming to the market to balance the longer or medium-term view of supply. that is what it is, medium to long-term supply. not the demand. >> reporter: when it comes to the overall opec policymaking process moving forward, you get a sense on the ground that these ministers are willing to do whatever is necessary to stabilize the market and that is the message we heard yesterday from the saudi energy minister and it is a message we're hearing from other top policymakers, their estimated to be optimistic, but they are also cautionary and ready to do what they need to. >> great reporting. as always.

your previous interview, seems like there may be mixed messages. he said it's not about the price it is about the level of investment. explain that a bit more because it seems like it's about the price. >> reporter: exactly. this is interesting because ultimately it is about the price. you have these large gulf economies that need higher oil prices to continue economic diversification. to continue to transform their economies, but at the same time what they need to have their price range that's conducive for the investment environment. they need investment in oil and gas infrastructure to guarantee energy security and supply. at the price is too high then it's great for exports, but it's too expensive to invest so they need to see a stable market that ensures a positive gain for consumers and producers and ultimately that's what they are working to provide. i understand your point on the

mixed messaging for sure. >> dan murphy, thank you. a lot more to come including the one word investors have to know today, first investors are bracing for a slew of jobs data one day after the fed revealed how strong the central bank's commitment is to keeping rates higher for longer. plus, more on janet yellen's trip to china and how she is hoping to deliver a different tone. o oflater a interview with the ce xpo. a very busy hour ahead when "worldwide exchange" returns. stay with us then analyze all that data with watson. okay, buis 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. ♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪

is it possible to protect my business from cyber threats? ♪ it is, with comcast business. helping every connected device stay protected. yours. your employees'. even... susan? hers, too. safe. secure. and powered by the next generation 10g network. with comcast business, advanced security isn't just possible. it's happening. get started wih fast spees and advanced security for $49.99a month for 12 monts plus ask how to get up to a $750 prepaid card with qualifying internet.

welcome back to "worldwide exchange", futures are pointing to modest pressure, european trading getting underway, from the london newsroom with the early trade, good morning. how are investors responding there? >> good morning, sentiment is pretty down, investors appear to be jittery after the fed minutes came to an now pricing in the prospect of higher rates and further rate hikes for not only the fed, but central banks around the western world. downbeat across every major region in europe, every sector trading lower. we are off the low of the morning in some markets with some still 1% down.

over in france underperforming down 1.8%. from a sector perspective it is a travel and leisure stocks getting hit hardest. a risk off start to today's trading session, extending the loss from yesterday and this comes after a soft handover from asia the hong kong market dropping 2% overnight. global sentiment taking a hit. >> live from the newsroom, thank you. turning attention stateside investors are waiting on economic data today including adp employment report, java claims and all of this could influence the direction of the fed policy. minutes out yesterday reaffirming expectation that rates could remain higher for longer were traders pricing at 89% chance of 25 basis point hike in three weeks. let's bring in chief global strategist and principal asset management. good morning.

we talked about it, the the fed minutes showed a very hawkish fed, two more hikes favored, cuts all but off the table so how does that shape your view of the markets going forward and the possibility of recession? >> it is very similar to what we have been thinking and have seen the expectation moved to the more hawkish outlook with continued hikes. this is a high for longer outlook from the fed. that is important for the market. we had a wonderful first half of the year with risk assets doing extremely well. high hopes for a soft landing and a soon coming in an to the hike. now as we are more aware and more familiar with the idea that the fed will hike fast that will hit market sentiment to the second half of the year and the fed hikes have created

a chance of economic slowdown. so that is likely to win a risk assets. >> in all fairness fed minutes are backward looking, now tomorrow we have the monthly jobs report, the big one. they have been watching wage growth and as the jobs numbers have been up and down with some surprises, wage growth has gone down fairly steady. so wage growth, total jobs, is there any metric in the report that could change the mind about the hike at the next meeting? >> it is quite unlikely, they did mention the jobs report specifically. if you were to significant surprise with a major fall in perils maybe that's enough to change their mind, you would need to see inflation data softening to push it in that direction. we do not expect jobs data to show considerable weakness. we expect that coming to a

close to fourth quarter, but tomorrow that's not enough. wage growth numbers have been slowing, but not enough. they need further evidence of that and overall think the jobs claims data out today and the jobs report tomorrow and together that will give it an idea of how tight the labor market is at the moment and they need to see the labor market unwinding and listening. >> looking at the second half of the year what sectors are you looking to for opportunity? are there some sectors you are trying to stay away from? >> we have had a fairly significant overweight technology this year in the mega cap tech space. some segments look quite frothy, very expensive, overvalued and you can see expectations are increasing and that is likely moving those stocks so we don't think it's a

good time to increase exposure to technology, but if there is a pullback we want to increase exposure given the significant ai forces behind that. other sectors moving to a slowdown this is not the best time to increase exposure, focusing on defensive areas, utility and healthcare, those areas likely will do well and as services slow down maybe becoming the discretionary part. >> thank you very much for your time and your inside. coming up on "worldwide exchange", hours early and 10 million strong. why threads could have elon musk worried about much more th aan theoretical cage match with mark zuckerberg. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. with powerful, easy-to-use tools, power e*trade makes complex trading easier.

react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley

welcome back to "worldwide exchange". checking on more headlines, to new york with the very latest. >> good morning, the military says russian jets harassed american drones that were on the anti-isis mission, the planes dropped fires in front of the aircraft and one jet engaged its afterburner by one of the drones, the interferes forcing drone operators to conduct evasive maneuvers. central command slamming what it calls reckless behavior. the secret service trying to figure out who left a small bag of cocaine in the white house,

the substance will undergo full chemical analysis as the bag will be tested for dna and fingerprints. the white house press secretary says he is confident that the secret service will get to the bottom of the situation. abortion-rights advocates in ohio are working to get and opposed men on the ballot in training access to abortion in the ohio constitution, they have delivered 700,000 signatures to state officials, nearly twice what they needed. the law in ohio banning all abortions has been blocked by a state judge. a good samaritan from virginia comes to the rescue of a skunk on the side of the road after he realized its head was lodged in a plastic cup. it took jeffrey simpson several attempts, but he was ultimately able to free the animal and amazingly without getting sprayed. simpson says i wish people would stop littering. that is one good and brave samaritan. back to you.

>> that could've been a situation where no good deed goes unpunished. great to see you, thank you. straightahead, the white house not going down without a fight after a judge ruled it can no longer speak with social media companies as it deals with allegations of censorship. e latest twist in just a moment. much more "worldwide exchange" in just a moment. we earn your trust. maintain our financial strength and stability. and deliver solutions that meet complex needs. massmutual. partnering with financial professionals, benefits brokers, and institutions. ready to shine from the inside out? say “yes” to nature's bounty advanced gummies and jelly beans. the number one brand for hair, skin and nails. with two times more biotin

to bring out more of your inner beauty. get more with nature's bounty. bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright. xfinity rewards creates experiences big and small, and once-in-a-lifetime. 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? 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. welcome back to "worldwide

exchange". developing news, janet yellen arriving in beijing, meeting with the chinese counterparts, as part of three days of meeting to talk about the u.s. china relationship. a lot to discuss with cloud computing and tech, a three-day meeting, janet yellen, the treasury secretary meeting with the chinese counterparts. time now for a check for the half-hour of stock features looking across the board the dow jones opening up 150 points lower at the open. all three indices are down half a percent and we are watching the bond market with some movement to the upside especially with the benchmark 10 year, right now 3.97 back where it was right before the svb collapsed, bond yields are moving higher as we wait for

key economic reports. the monthly jobs report tomorrow and energy specifically the oil market, dan murphy in vienna looking at what's going on with oil leaders talking about the market and pricing. we have crude basically up half a percent. brent crude up 1/3%. time for a check on this morning's top corporate stories. >> bank of america becoming the latest large u.s. bank to hike quarterly dividend after passing the recent stress test. it will boost the payout from $.22 the recent stress test. it will boost the payout from $.22-$.24 starting in the third quarter, the bank holding back a dividend decision last week citing conversations with the fed citing results between the central bank stress test and the company's own. the biden administration appealing the ruling restricting federal agencies and officials from having contact with social media

companies about certain content. the epartment of justice plans to ask the fifth circuit court of appeals seen as the most conservative appeals court to review the ruling. the commodity futures trading commission ruling the the crypto lender celsius and former ceo >> reporter: regulations before its collapse, bloomberg reports that the findings come as the regulator is set to vote this month on whether to bring a case on the matter to federal court. filings show that federal prosecutors in manhattan have also been investigating celsius. >> thank you very much. turning back to social media developments. meta debuting its new app to take on twitter, called threads the text focused messaging app, live in more than 100 countries. mark zuckerberg writing on the app at least 10 million users

have signed up. much like twitter the app features short text post that users can like, repost and shares are bumped up ahead of the open over 1.5%. for much more on the launch of threads and if it is a twitter killer, let's bring in our technology reporter from the wall street journal. so first question, are you on threads and what do you expect for this platform? this offshoot of instagram? >> i got on last night and it was simple. one of the strengths and benefits is that it quickly imports your username from instagram and you are on the go immediately. it was like the first day of school last night as people were discovering how it worked. the question going forward is will it pull away users from twitter? will it siphon away that

important community aspect that twitter has developed over the year where a culture conversation occurs whenever something big or not so big is going on. will there be a character of the day on threads that people are compelled to look at on a daily and hourly basis. >> using the word community very loosely. i don't know if it is community. so what makes this worth it for meta? what's the upside, looking at the twitter revenues from 2021 $5 billion that's almost chump change to meta so what's the best case scenario as far as revenue? >> the future of social media, a lot would agree is in video, short videos, that's the world that you see with tiktok and meta is moving and has been moving in that area, so what

threads represents is incremental potential for meta. a company with more than 100 billion in annual revenue. 5 billion if they are lucky is not much for them, but it could be material for twitter if meta is able to siphon away that important advertising base. it could be material for them if that's what takes place. >> does this launch change the year of efficiency native? launching a new product does take some investment and it pulls away from some of the pope focus that meta has been applauded for this year. >> this is not launching a pr headset, years and years of research and development, this is kind of in their wheelhouse. i don't know how much it costs, but i can't imagine it costs

that much in the grand scheme of things for a company that size. the challenge is elon musk gave mark zuckerberg an opening when he started limiting the amount of posts users could read on twitter in a world where social media companies are racing to get you engaged as long as possible. it is clear that meta and mark zuckerberg saw the opening and pounced. >> does this impact other social media companies? snap or pinterest, does i have a broader impact or is it just twitter that this possibly encroaches on? >> this appears to be a twitter and threads knife brawl that will play out. >> turning attention to china the treasury secretary janet yellen arriving in beijing for three days of meetings with senior officials, this will be the first major test of the policy outlined in april geared toward defending national

security interests without holding back china economically. days after china imposed export restrictions on metals crucial to the publication of semiconductors in the u.s. and there are reports that the u.s. is considering new restrictions for china when it comes to cloud services and artificial intelligence. joining me now is raymond james washington, policy analyst. good morning. give us a sense near-term what kind of impact you expect this visit to have and does it move us closer to de-risking or decoupling? >> i would say for china de- risking is decoupling, the same thing and the risking sounds better. they don't think there is any difference whatsoever. i think near-term this meeting has to be viewed as a positive. think about the real freeze there has been with not having senior officials in china

essentially since the beginning of the covid. china was shut down, now in a couple of weeks we had the secretary of state, now we have the treasury secretary. so near-term this is a way building confidence between these governments to maintain high level negotiations. on the side we are moving forward with some of the tech restrictions that started under the trump administration and continued. that's what investors have cared about with this relationship because those come with a lot of uncertainty. >> we are looking at janet yellen arriving in beijing. getting off the plane, shaking hands. you mentioned the tariffs, this visit to china is about five years to the day since the trump administration imposed tariffs. president biden kept them in place so how big of a topic is this for this conversation?

>> after they will bring it up and they will bring up restrictions on semi conductors, on the blacklist that exists, but that does not mean any of those are going away. i think we will see a desire just to have conversation because in november the general secretary is supposed to come to the united states as part of the apex summit so they want to have high-level conversations before president biden and the chinese president are in the same country. >> in recent weeks we have seen a lot of different ceos visiting china. this is the lennar white house official, but the ceos have big names, tim cook, elon musk, why are so many people visiting china and wise china not making the same effort to visit the u.s. so what does it mean to have a cabinet level official there to figure out how to the risk or decouple?

>> restarting some of the negotiations, restarting the relationship, china is the world's second-largest economy so it makes sense to the treasury secretary from the world's largest economy going to the second-largest economy. such a large market. ultimately i think a lot of these tech restrictions are absolutely staying in place. what we will see from u.s. business is they hope it will be limited as possible, the national security advisor talks about this as a small lawn with a high fence. they want to make sure anything not inside the lawn that china remains a open market for businesses as well as every other market in the world. >> great to see you as always, thank you. coming up, a first interview with the ceo of xpo. talking about what the second

half may look like for ts hi economically important sector. much more "worldwide exchange" in a moment. ♪♪ at morgan stanley, old school hard work 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. morgan stanley. (man) what if my type 2 diabetes takes over? (woman) what if all i do isn't enough? new world ideas. or what if i can do diabetes differently? (avo) now you can with once-weekly mounjaro. mounjaro helps your body regulate blood sugar, and mounjaro can help decrease how much food you eat. 3 out of 4 people reached an a1c of less than 7%. plus people taking mounjaro lost up to 25 pounds. mounjaro is not for people with type 1 diabetes or children. don't take mounjaro, if you're allergic to it, you or your family have medullary thyroid cancer, or multiple endocrine neoplasia syndrome type 2. stop mounjaro, and call your doctor right away, if you have an allergic reaction, a lump or swelling in your neck, severe stomach pain, vision changes, or diabetic retinopathy. serious side effects may include pancreatitis and gallbladder problems. taking mounjaro with sulfonylurea or insulin raises

low blood sugar risk. tell your doctor if you're nursing, pregnant, or plan to be. side effects include nausea, vomiting, and diarrhea which can cause dehydration and may worsen kidney problems. (woman) i can do diabetes differently with mounjaro. (avo) ask your doctor about once-weekly mounjaro. welcome back to "worldwide exchange". a check on the headlines dominating conversations on trading desks all around the world beginning with volkswagen saying it's ready to act as china looks to clamp down on exports of raw material. volkswagen spokespeople telling readers that gallium and germanium are critical for

vehicles autonomous driving functions, the world's largest chipmaker does not expect direct impact from those restrictions. waiters reporting airbus delivered 316 jets in the first half of the year a 6% increase, airbus aiming to deliver 720 for the year declined to comment ahead of the data. tumbling in overseas trading after raising 180 million in a share issue directed to institutional investors and toyota will plan to suspend operations at a packaging line after cyber attack at japan's biggest report, the line focusing on export bound components and work will be stalled for at least two days. time now for the morning call sheet. checking on the biggest upgrades and downgrades by firms you know and stocks that you own. city getting a buy rating with a $13 price target plug has

positioned itself at the hydrogen economy with a strong customer relationship and a path to profitability. shares are up more than half a percent. piper cena raising price target on paypal as it is encouraged to see margins on a higher path despite slower revenue growth. shares of paypal down half a percent this morning and wolf research upgrading simon property group to outperform, the stock is trading well below historical discount for its overall coverage. shares of simon property up almost 1%. turning to the state of freight, transports falling yesterday breaking a six-day win streak, but over the month doubling the performance of the s&p 500 and nasdaq on the first full trading day for the second half of the year transports were down by ups over concerns of contract talks with the teamster union falling apart.

the state of the market is a source of debate, whether it is a leading economic indicator and how the biggest companies in the sector view the climate. xpo logistics company with a customer list includes ge, ford, and more, mario harik is the ceo and he joins us now. >> good morning, thank you for having me. >> give us a sense of the supply chain, where is it and where do you see it going? >> we are seeing from the demand perspective that demand is slower than last year. we saw the drop in terms of shipping demand in the month of march and things have slightly improved in the month of april in the month of may. when we look at the industry, the shipment count are down year on year and at xpo the

last published number we had was for the month of may , but shipping count was up 2% year on year basis, that is by gaining market share and shipping more freight for customers. >> the fed minutes show the possibility of another hike or two more. how does that impact the business for you and your customers? what are they telling you about the increased cost of capital? >> the higher rates will do that from a consumer perspective as well as in the industry of economy so it slows down economy. we have seen these rates go up impacting cost inflation, cost inflation in the month of may since the end of 2021 and in our industry we count the cost of inflation by having soft pricing given the less frontload industry with a small number of carriers and that is capacity that is strained when

we heard from customers with demand in some cases both retail and industrial based on these rates going up. >> some pressure being put on the business what about recession concerns? people look at transports as a leading indicator of possible recession, transports have outperformed over the last month do you believe in what are you hearing from customers about the potential for big economic downturn, are they preparing for that or are they enjoying a continuous wave of consumer spending? >> we will see with the back half is going to do. 2/3 of our customers are industrial companies and 1/3 of consumers are retailed by companies. on the industrial side we look at the index, usually low 50 is manufacturing environment and it has been for about seven months, but customers are

seeing some of them in the sector industry and economy they expect slightly better back half as others expect a slower back half but it is mixed signals. on the retail side there's a different dynamic, we usually survey customers on a quarterly basis getting feedback and more than 2/3 of customers say that inventory levels are where they wanted them to be and that leads to more shipping as you replenish that rate. within the company we continue to invest in capital and make sure we can capitalize on the markets. >> labor issues, yesterday we saw ups decline on concerns that talks with the teamsters are breaking down, issues at the ports at u.s. in canada. what are you heard from customers when it comes to labor issues? are they possibly preparing for

disruptions for the second half and how? >> we wish them the best as they navigate. when i think about customers, disruption in the supply chain is flow from consisted customers as they ship through supply chains and usually is a carrier we are there to support them by investing. to give you an idea we will add more than 6000 to our fleet enabling us to serve customers more effectively over time. >> with labor disruptions and supports be a tailwind or headwind for your business? >> short-term it would be a headwind, because you have less freight flow coming into the country, but at the same time that would be followed by typically a high demand environment from customers where providing the capacity for customers becomes very important.

it is a combination of both, the disruption and customers and usually we support the business. >> mario harik, thank you for your time and thank you for being here. coming up, the one word every investor needs to know today, stocks facing another day of losses, our next guest is taking the next glass half- full approach to the markets. if you miss "worldwide exchange", check us out on apple, spotify or other podcast apps. much more "worldwide exchange", after the break h. it' ur business. it's your verizon.

welcome back to "worldwide exchange". six stories you need to know before the opening bell. jetblue will end its partner with american airlines after a federal judge ordered the carriers to end the agreement. venture capitalists are finding fewer startups at the early stages of company life according to new data.

in the u.s. investors financed 3000 startup funding deals last quarter 30% less than one year ago spending 50% less cash in the process the opec secretary general says the alliance is on the hunt for noon members, he says any new member would be had exported with similar goals. samsung reporting 96% plunge in the second quarter project from a year ago. the world's biggest maker of memory chips, smart phones and tvs will report those results tomorrow. more manhattan homebuyers are paying cash than on anytime and record, 65% of purchases were completed without financing up from 57% in the first quarter. subway announces an $80 million plan to bring deli slicers to restaurant locations, to celebrate subway will offer 1 million free six inch subs at

participating stores on july 11th. getting ready for the day ahead, economic data on tap with weekly mortgage back to back jobs data with adp employment figures and jobless claims and we get ism service figures. watching for earnings from levi strauss and dallas central bank president and we continue to monitor the treasury secretary janet yellen kicking off a visit to china. those two pieces of jobs data today are a must watch for investors ahead of the big monthly employment report. looking at markets before the report released markets are under pressure down half a percent across the board. for more on the trading day let's bring in chief strategist from 248 ventures. so what do you make of the fed minutes? we heard a hawkish fred, the majority members advocating for two more hikes in cuts off the

table. >> i think the market was surprised to see that there was not the unanimity that we thought there was. but the market is not suppressed, we have priced in expectation for two more rate hikes this year and for every meeting going forward. that's not the surprise, the fed thinking about a mild recession is obviously concerning and then the concern about china, especially after the economic data from this morning is also concerning, putting pressure on the markets this morning for sure. >> you said concern for or five times so with that what is your word of the day? >> my word of the day is calm. we are down pre-market, but this is a holiday shortened week, volumes are low, volumes are waiting for the jobs number tomorrow, we got through the fed minutes yesterday so i think

today could be a calm trading day. >> today is calm where would you put money to work today? mentioning transports breaking the winning streak with futures under pressure this morning. >> today is a great day to put money to work. if the market remained under pressure through the midmornin , one area i will go the opposite direction, one area i am avoiding is the financial services sector it is a sector that is underperforming year to date down 1% versus up 16% of the s&p 500 and a lot of that has been due to many banking crisis that we went through. my concern with this sector is less about that and more about making money going forward. we are in the operating environment where the yield curve is inverted and the fed is not done raising rates. expectation is that rates will

be higher for longer which does not bode well for credit. we have loan losses increase, reserves are being taken, albeit at reasonable levels, but earnings have been unreliable 5/4 in a row and we expect a couple more of earnings, declines and with the overhang of commercial real estate potential crisis i think it is hard to get excited about this group. >> financials are where we stay away from the possibility of rate hikes, how do you feel about tech? is it time to buy into the pullback? >> i think there is opportunity within the tech space. evaluations have gotten quite lofty, but that's partially because earnings have not kept up with the expectation for ai. not just tech will benefit from ai, overall the market in general has the benefit of

productivity gains to look forward to when it comes to the ai and there is major uncertainty related to it and the new technologies that are coming about how it is going to impact profitability and numbers because we don't know how quickly it will be adopted and we don't know what the magnitude of that is going to look like. so there is a lot of opportunity here. some of it is priced in. >> thank you very much, appreciate the inside. that does it for us on "worldwide exchange". "squawk box" is next, thank you for watching

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? 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.

good morning, officials say going more rate hikes but maybe at a slower pace, stock futures pointing to a lower opening,

down 160 points on the dow. the treasury secretary janet yellen arriving in china. we will take you live to beijing. meta platforms launching its competitor to twitter called threads, we will show you what mark zuckerberg said about the new service. "squawk box" begins right now. >> good morning, welcome to "squawk box" on cnbc, we are live from the nasdaq market site at times square, all three of us are here. >> all of us in yellow, how did we do it? one of