it's 5:00 a.m. at cnbc headquarters and here's your "five@5. the fed's next policy move, one that can raise interest rates to the highest level in 22 years. and we have amazon on alert as federal regulators are said to file an antitrust lawsuit against the tech giant shares are falling in the premarket on that report and we're seeing snap selling off with its year to date gains set to be cut in half.

plus microsoft coming up short in the cloud, butting somearils some early pressure on that stock. and the wave moves closer to the shore. it's wednesday, july 26th, 2023, and you're watching "worldwide exchange" right here on cnbc good morning welcome to "worldwide exchange." i'm frank holland. let's get you ready to start your day we're kicking it off with a look at u.s. futures. stocks in the red. the s&p flat the dow jones and nasdaq fractionally lower, this as investors await the latest policy decision from the fed in an all but certain 25-point basis hike, one that would bring interest rates to their highest level in 22 years. ahead of that we're checking the bond market. not a lot of movement when it comes to the benchmark 10-year yesterday it closed at 3.88.

we still continue to see thain verted yield curve we're also looking more broadly at some of the movers this morning, and, of course, it's all about big check. shares of microsoft, under pressure to boast a top and bottom beat, but its weaker than expected azure stocks down alphabet reporting a second straight quarter of accelerated sales growth following a post pandemic growth. the cloud up almost 7%. we're looking at shares of snap getting hit very hard, expecting revenue to remain flat or fall as much as 5% in its current quarter as its ad prices continue to struggle the stock down more than 18% we want to toss things over to arjun kharpal. arjun, good morning. what's your reaction when it

comes to big tech yesterday. >> well, frank, sort of a tale of two companies, microsoft and alphabet let's kick off with microsoft. the expectations were very high going into this given the fact there's been so much hype about artificial intelligence in the past sick or eight months, particularly with microsoft. overall i think it was good. cloud growth remained positive up 26% year on year for azure. that's when businesses are cutting their spending still remaining pretty resilient. they're pushing forward. the a.i. open technology has been pushing foofrmd bing has released a new product called co-pilot based on some of that openai policy. it came in a couple of areas one was the very slight joe down in market growth assure up. that was versus 27% in the first

quarter of this year but, remember, also it was 40% growth in q2 last year, so but the comparison is very tough for azure. that's why you saw this sort of big bump there the other was really around the hugh hike around a.i they expect there to be this massive a.i. bump that didn't happen the cfo says a.i. will take more time to feed the numbers and they're likely to see a big impact. >> so we want to pivot over to alphabet as well. >> yeah. on alphabet, we knew this wouldn't be blowout numbers in the quarter. alphabet had one job torque show the market that its core business, advertising business, could remain pretty resilient. that's what it did you saw google's ad business up 3.3% year on year for the quarter. youtube beating expectations as well youtube, a very key part of alphabet's product offering when it comes to advertising as well.

the other big one was cloud. up 18% year on year, showing that it continues to grow with the big plays in the form of microsoft and amazon as well that's, i think, why investors were so excited in particularly around alphabet, frank. >> we want to touch on amazon, shares falling in the premarket. the an i trust drumbeat appears to be growing louder "politico" now reporting the ftc is finalizing a lawsuit against amazon it's focused fair competition in its prime business and the ftc could look to break this company up what's your take on this >> yeah. very big report. and i just want to dig into some of the key parts of that report. "politico" reporting that the complaint is likely to focus on challenges to amazon prime the rules blocks prices on competing prices and they think merchants are using amazon's logistics and advertising services

the ftc has interviewed dozens of witnesses inside and outside including ceo andy part of it. it will be around the way they bundle its products to boost its market power part of it will be around other practices including advertising. they filed a kplainlt in the federal court rather than its in-house tribunal. if the ftc is succesuccessful, t could have huge implications it hasn't been hugely successful in lina khan taking on big tech. amazon shares are lower, frank. >> microsoft and amazon down, alphabet up big. arjun, thank you very much. we're now turning our attention to the banking sector

and that wave of regal consolidation we warned you about weeks ago may be starting now. our silvana henao is here with more on that food morning to you. >> good morning. shares of bancorp surging after its open it's agreeing to be bought by smaller rival, banc of california two will provide $400 million in equity the deal values pacwest at 960 a share. that's 257 premium based on yesterday's closing price. shares of wells fargo also higher in the premarket after the bank said it will buy back $30 billion in stock wells adding its board also approved a previously announced dividend hike of 5 cents a share to 35 cents. watching a big bounce in the banks this morning, keycorp,

truist and region all higher. >> regions, up 2% in the premarket right now. a lot more to come on "worldwide exchange," including the one word that investors have to know today. but first getting set for the fed and why jay powell's track record with traders is far from ideal. plus, showing investors how to think outside of the box. our weeklong look at ideas as it continues with some red-hot real estate players. >> and later what a tentative teamsters/u.p.s. deal would mean for labor costs and the economy. we have a very busy day ahead when "worldwide exchange" returns. 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...

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exchange." the dow on its longest winning streak since february 2017 while the s&p is at its highest level since april of last year, but will the fed get in the way of all the good buys. check out this chart it shows the actually performance. seeing the best performance with an average gain of half a percent on decision days current fed chair jay powell, that's the white line, has the weakest return so far with a g gain of 0.1% let's get insight from bill

stone. good morning. >> good morning. >> we showed the chart muted gains following a fed decision during jay powell's tenure tell us. expect another hike after this one. could a hawkish tone from jay powell, do you believe that could set us up for another late-day selloff >> yeah. think they's what's haunted his track record we've had a few times or the market has said this has been, you know, maybe the last hike and we're back there again with at least the bond market pricing and no more hikes. if you look at the underlying economy, wage grourkts et cetera, you have to say it's a good possibility this isn't the last rate hike it could cause weakness in the market after he speaks. >> you mentioned the pricing in the bond market and another hike

whoochlt i is everybody fighting the fed, and is this rally in spite of what the fed is saying or has that priced in your mind the idea that we could have another hike after today >> so, you know, it's hard -- at least in the bond market we've got somewhere south of 50% chance of another hike in november you know, it's always hard to figure out exactly what's priced into equities with the strong moves so far this year i think more equities are priced on much less of a chance of a recession here any time in the short run, you know, those somewhat go together, right, if you assume the fed keeps hiking too much you have to hike also your risk of recession. >> so i want to bounce something off you. we're going to talk more about this later in the show, but we talked about it just now rates are going to be at the highest level, raising the cost of capital at the same time we're seeing teamsters and u.p.s. strike a deal and other labor negotiations that could increase

the cost of wages, reduce margins for lot of companies is that being priced into this market >> you know, i think that's where you're right i think the risk is that because the fed can't be comfortable with the wage growth pace that we've got going on that they can stop hiking necessarily. now, maybe generative a.i. and other things will make up enough productivity that it won't end up mattering that's where you've got to be careful not to jump to too many conclusions. i kind of think of it as the one risk i see in the market is we do have to deal with more fed hikes and eventually that does weigh enough to kind of hit earnings again because earnings estimates are coming off -- at least the estimates are coming off their trough and i think that's part of what's lifted the market. >> bill stone, we have to leave the conversation we're looking aet the earnings scorecard down year to date as expected. coming up on "worldwide exchange," we have a second look

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welcome back to "worldwide exchange." time for your big money movers texas instruments, forecasts coming in slower due to sluggish

recovery and an on market demand that has caused clients to cancel orders. the company made up half of the sales at the end of fiscal 2022. shares of texas instruments down 3.5% shares of robert half ink clocking out saying the company was effective. shares of robert half down more than 10% and tla dock health strigerring its strong performance of introduction and expansion of products and services as well as vertically integrated care. shares of teledoc up 3.5%. now looking at some under the radar opportunities. today it's all about real

estate, which has seen the worst performance in the last 18 months our diana olick looks at where the opportunities are at the bottom diana, good morning. >> good morning, frank yeah, rising interest rates really took their toll on real estate, causing values to plummet due to the higher costs of financing and the office sector is, of course, grabbing the headlines as return to work has been, let's say, difficult but some analysts say reits are ready to rise. jonathan krinski says they're close to clearing an 18-month downtrend. perhaps this brings in some momentum players top rate performers are data cen centers, timber, self storage, residential, and industrial. timber is from the growth and housing markets and apartments from still strong rental demand. i want to call out one sector

though single family rental reits they've been benefitting from the tight supply of homes for sale and the very pricing housing market overall both of those stocks are way up year to date so what about the fed potentially boosting interest rates even more? well, nareit has introduced its forecast while u.s. public equity reits may not have been immune from the current economic uncertainty and mortgage market turmoil, our review of reit balance sheets and debt suggests that reits are well positioned to navigate the ongoing high interest rate environment because of their strong balance sheets. >> we're going to continue this conversation let's bring in the reit home

analyst. good morning. >> thank you for having me you look at backed up rising interest rates, strong growth, and limited credit available first i'd say we're not blind to the risk that you talked about as well as concerns about the stretch consumer, but we think the concerns beat off a good defense. most sectors are doing fine. lastly, the feds will be raising rates. [ indiscernible there's lots of capital on the sidelines waiting to get in the space. we like the setup here. >> haendel, i wanted you to dig into it a little more. we've been talking about it a lot the last couple of months.

we've seen buildings go back to the banks, some walk away. but how much worse is it going to get when it comes to hits on the banks and hits in the office sector >> that's a great question and certainly one i think that is time and risk involved people have been comfortable working from home the last couple of years. financing is very challenging. and rent probably hasn't stopped falling. again, it's not an issue that i think affects other sectors, so it attracts lots of headlines. offices are a small piece of the index, so we think lease as a sub sector has a lot of pocket investment opportunity absent what's going on. >> obviously different reits handles different areas. as a broader group, how should we look at them.

yield and long-term outlook. we saw recently crown castle cut some of its work force. >> listen, i think it depends how you look at evaluations. you look at history versus the s&p. fixed income benchmarks are something to look at wily are good attractive yields here the balance sheets are in a really good pace the payout rate is relatively low. all in all, pretty competitive opportunity here again, pretty low risk adjusted basis. >> you mentioned low yield, high return this has always been a low interest rate play, the reit sector, and that's why it did so well when the interest rate was zero for the average investor looking

for stocks to buy, why get into reits when they could get higher interest rates perhaps somewhere else, higher yield >> well, sure. listen, i think that the current valuations, how we look at this, suggests to us that those are attractive again, not the biggest with the rising rates we're going to see a very imminent rate hike here. again, i think those issues are well known they extend fundamentals across most sectors and residentials. industrials are good with the pricing power. i think when you look at it all in totality in terms of the current relative opportunity, the risk of rates going up appear to be relatively modest that risk appears to be priced in against the backdrop of solid fundamentals we think folks concerned about rising rates certainly would acknowledge that and understand that, but, again, given where we

are in the rate hike cycle, given the opportunities we see, we think reits deserves another look and highlights sectors as i mentioned for industrial and other pockets, perhaps including health care. >> thank you to both of you. great discussion on reits. straight ahead, why shares of snap can't seem to catch a break as stocks get set to cut its year-to-date gains in half we're going to be right back after this break 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. with gold bond... you can age on your own terms.

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it's right around 5:30 a.m there's a lot ahead on "worldwide exchange. here's what's on deck. the fed is getting ready for its latest policy decision maybe the bank is ready to call it a year on its rate-hiking campaign. microsoft and alphabet are headed in opposite directions. and the ftc reportedly ramping up its efforts with its long expected plan to try to break up amazon. it's wednesday, july 26th. you're watching "worldwide exchange" right here on cnbc all right. welcome back i'm frank holland. thank you for tuning in to "worldwide exchange. let's get you ready to start your day first we're going to check on u.s. stock futures you see red across the board the s&p flat the dow jones and nasdaq down

fractionally, something we're continuing watch we're looking at the bond market ahead of the fed meeting and decision later today take a look at the benchmark 10-year pretty much what it was yesterday. we'll talk more about the bond market later on in the show. the fed decision due out at 2:00 p.m. eastern today followed by jay powell's news conference at 2:30 p.m the markets are all but sure they're going to raise the lending rate to highest level in 22 years one month after hitting pause, now showing a 99% chance of an 11th rate increase since the campaign began last year joining me now is william lee. chi economist at the milken institute. bill. >> good morning, frank. >> it's telegraphed rate hike today and also another one later this year. do you believe as we've seen in previous decisions that a

hawkish tone from jay powell will lead to a late-day selloff? >> it's often the case the markets just don't believe the fed when they tell everyone we're not done raising rates because inflation is not down at 2% and it's not securely on its way to 2%. again, every time jay powell comes on, markets say, okay, this is it, he's going to be hinting at some sort of a pause. i think markets are yet to be convinced. >> clearly we're continuing see a rally after inflation -- that's one of the things this data-dependent fed says they're watching. are we looking at what else is going on not only in the economy but the market. >> i think they're not seeing how strong the u.s. economy is est the company is pumping along at 1.5%, 2.5%. the latest forecast is going to be 2.5%. we're having a very strong economy despite the rate

increase we've seen so far, and markets shouldn't be so surprised the economy is so strong we haven't had high rates for long high interest rates meaning the five-year treasury has not been above the expected rate of inflation for about a year, and it generally takes about a year for the economy to start to drag but this economy is much stronger. >> that's the market how about the fed? how do they see what they're seeing bank earnings coming in better than expected. maybe more credit availability than expected. but still we're seeing a stretch consumer we are seeing some slowdowns when it comes to manufacturing and other areas of the market. >> the fed is scratching its head because its channels for monetary policy tightening are through the housing sector and industrial sector. we see it clearly in the industrial sector it's slowing down housing is is up pieced to be the first to get crushed and yet we see as diana olick has been telling us, housing seems to be

reviving we see case-shiller house rising again have we raised rates enough and what's happened to our power what's happened to the power of the monetary policy, and i think the steam that the economy has developed is causing the fed to pause. >> i also want to get your take on a developing story we've been tracking all week long teamsters and the u.p.s. are appreciating a deal that offers raises for part-time workers and narrowly avoids a strike that would have cost the economy about $70 billion. we're talking about potentially huge labor contracts including unites, sag-aftra and others

>> the summer of strikes is a good example of what it is that's really worrying the fed wage increases are going to be feeding into prices or profit margins are going to get crushed. when we see u.p.s. truck drivers on average getting $95,000 a year and tractor trailer drivers getting over $110,000 a year, those kind of settlements in the face of waning demand for truck traffic and truck drives because the economy itself is slightly slowing especially for delivery of goods, that's what gets the fed worried that we're not going to have enough pressure from the labor market to keep inflation down core inflation, don't forget, still has a forehandle close to 5% that could easily turn back up. >> we've got to leave the conversation there thanks so much for your time and insight. turning now to some of your big money movers, we're talking big tech google and microsoft moving in

opposite directions. weaker than expected cloud growth and uncertain a.i. rollout timeline and a margin warning, those are sending shares of microsoft lower. very different outlook for google the second quarter of excel rating growth following an extended slowdown after the pandemic, this comes after meta's earnings which comes after the close today. joining us to discuss, our next guest. thank you for being here. >> sure. >> you say meta has a high bar following results from alphabet. what do investors need to see to justify this huge rally for meta year to date >> i think as long as the top line comes in marginally ahead of where the street is as well as the focus on the year of efficiency, quote, unquote, continues, i think that the shock could continue to go the caveat for meta is that investors ha shifted their

methodology from earnings to free cash flow the stocks should do reasonably well. >> i want to talk about microsoft for a second so no real details on its co-pilot rollout we're not getting a date, we're not getting a time we're just getting pricing details. could that be one of the first cracks we see in this a.i. narrative? >> no, i don't think so. when you look at microsoft and google, it was a tale of two sets of expectations the expectations from microsoft. it was supposed to be the poser child with the exception of nvidia, and it was written at an inkrezably high bar. it's not like microsoft did exceptionally bad and google did exceptionally good it's just that the bars were set

at different levels which is why you're seeing -- actually both results were good for both companies. >> i want to get your take on another big mover, snap. shares plunge in double digits after overall sales in q2 declined by 4% the company offered some weak forecasts for the current quarter, also warning of margin pressure due to big investments in a.i. >> yeah. i don't want to get started on snap the problem with snap is, you know, i feel like they have an identity crisis and don't know what they want to be if you're a small advertising platform, you to be a niche platform in order to attract the most value out of users. they're trying to be everything to everyone, and that's just not a model that's sustainable especially given the investments that meta is able to do. so i think that share shift is going to continue because, you know, they're not hyperfocused

on the niche maximizing the value per user versus trying to go to all users. i think there's a structural problem there that's not going to be affected any time soon. >> we have a developing story of sorts. we want to talk about amazon it has a big impact on that index. the ftc is finalizing its long-awaited antitrust lawsuit against amazon in a move that could possibly break up parts of the company. taking a look at shares down almost 2% now, what do you think about this as a risk for investors, and what do you think about this as a long-term future for the company? >> i'm not taking it too seriously. sometimes i think lina khan forgets where she lives. she acts more like a european regulator, which is charged mandating protecting competition and other businesses whereas in the united states, the laws and mandates state that you have to protect consumers, and i can't see consumers being harmed from

increased selection and faster delivery frank, i don't think you've been harmed by getting more selection and speed of delivery by amazon. >> what ftc is trying to put forward is they use the lodge it issics-based business as opposed to markets-based business. >> i get it. at the end of the day, it's a service. there was an article that came out several hours ago. we don't know what's in it if you look at the history of wins versus losses from miss lina khan, it leaves much to be desired. until i see more meat on the bone where consumers are harm and these practices are malicious, i'm just not buying it. >> why do you think the stock let's moving now there was a report a few weeks ago, maybe june 29th very similar report.

it didn't have the same detail, but a similar report that ftc was looking at the same situation, possibly looking to break up the company why do you think the stock let's moving now >> i think it's more on microsoft. you see the deceleration of the clouds by. the guidance calls for more deceleration this is supposed to be the bottom for amazon, the slowdown in the aws growth rate the question is will it be slower than q2 which is what microsoft is suggesting with their guidance i think it's down on that, not on the ftc. >> if you think it's down on that, what are you expecting from amazon when they report >> it's a big position, so they'd better do well for us we're expecting, you know -- we're looking for 10%, 12% growth in the aws in this quarter and improving from there in the third and fourth quarters as we progress through the rest of the year. that's the big whammy. we need to see aws show a double-digit number this quarter.

i think all the other segments should come in. >> you're expecting 12%. do you need to see an acceleration you're saying for the rest of the year and what about a.i.? are you expecting a lot of a.i. commentary >> the problem with a.i., that's behind the scenes and you can't get the tangible use cases that you do with the orr companies on how a.i. is benefiting how a.i. is benefiting them is they're able to get a better selection near you faster, predicting what you're going to need so that that actually lowers the cost of delivery for amazon so you're going to see it through the lens of margin versus anything else so behind the scenes is where they'll probably be talking about it. >> what about their cloud business you see microsoft, no specific date, but offering its a.i. co-pilot for 30 bucks a month. amazon has not made any announcements similar to that just quite yet. >> i can't really see them making anything similar to that

just now i think a.i. is going to power their logistics network and ensure that they can have the right selection at the right location at the right time that's ultimately what it boils down to. i don't think they're going to see subscription offerings of that. >> very interesting. james kakmak saying stocks is down on microsoft. interesting take good to see you. coming up on "worldwide exchange," a look at your morning call sheet and one life and styles company seeing a pop. we're going to give you that name when we return. stay with us

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it's your verizon. all right. welcome back to "worldwide exchange." time now for your morning call sheet. raymond james downrating the target market reform ahead of its next quarter traffic trends have remained soft take a look at target, shares down almost 1.5% we're now turning toure mystery chart. ww international it says the former weight watchers is seeing an undervalued turnaround story that stock's up 20% so far this week and set to tack on another 7% at least in the premarket. now we turn to one of your morning's top stock stories. we're talking about alphabet citi citing what it calls a

staging upgrade. take a look at alphabet up more than 6.5%. all right. time now for your global briefing several earnings reports of note this morning, deutsche bank second quarter net profit just beating expectations despite a 27% drop year over year, the bank saying the revenue will likely come in in the second half of its range, reporting a fifth sconsecutive loss shares of rolls-royce soaring more than 20% after it hikes its profit forecast for the year the british aerospace and defense giant hitting a new 52-week high today u.s. prosecutors are charging british billionaire and tottt tottenham's owner.

and natwest's ceo is stepping down after information being released on nigel farage coming up on "worldwide exchange," the one word every investor needs to know today. plus the latest high-profile earnings reports all on the slates today the moves to make with your money on a very busy day ahead. plus be sure to catch nbc c's exclusive interview with boeing ceo dave calhoun at 9:00 a.m. eastern much more on "worldwide exchange." back after this.

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am amazon's business, possibly looking to break up the company. time for your w.e.x. wrap-up. pac pacwest is up, banc of california up double digits as well shares of wells fargo up after the bank said it would buy back 30 shares of its stock. shares of rtx, the company formerly known as raytheon set to extend its worst selloff after the company says some of its engines need to be removed from service taking a look at shares, down half a percent shares of lvmh down 3% after a slowdown in the u.s. division. and there's going to be a

restructuring of ant group. >> and stellantis, the parent company of companies like dodge and peugeot, shares were up between january and june the shares up more than 2%. getting you ready for the day ahead, another big day for earnings with results expected from at&t, boeing, coca-cola, and meta we get new home sales figures for june at 10:00 a.m. eastern and the big event of this day. we're talking the fed decision at 2:00 p.m. eastern followed by jay powell's news conference at 2:30 p.m. rate decision and earnings reports front and center today and all of this week let's dive right into it with chief global investment strategist jeff, thanks for comiing on. >> thanks for having me. >> what's your expectation for the market day ahead

>> you know, this could be one where we get a bunch of bumps in the road we've got a mix of earnings. some are good, some are bad after we saw yesterday at the close. they may try to strike a balance with another hike at the next meeting and also noting that the rates have exceeded. this is widely expected by the markets. as an investor, i'm focused on the european market. the market expects another one in september i don't think so inflation is cooling just too fast in europe and recognize that valuations on european stocks are 12 times earnings, well below the 10-year average it could support valuation needs. >> jeff, you're jumping ahead a bit. i want to bounce something off

you. this is from spoke investment. it shows on the average performance of the s&p on fed day since 1994 when you look at that during the ben bernanke tenure, the best performance, 10%. when you look at jay powell, we actually see much less of a performance, a 0.1% of a rise followed by late-day selloffs. i know you think this is the last hike, but does that lead the a selloff? a lot of people are thinking like you are, this is the last hike. >> we've seen enough soft economic data including the service pmis that just came out earlier this week that's suggesting the service sector of the economy may be joining the factor with a mild recession those would put more pressure on the downside. >> we're looking at the earnings wall down 7.7% year over year, but

7.7% over estimates. an interesting dichotomy there what do you expect for the rest of the earnings season, specifically the earnings we're getting after the bell, a company like meta. is that going to be a big market mover or are people looking to put a crack into the a.i. rally? >> well, i do think there's a lot of hopes rising on the a.i. fueled rally definitely the market is vulnerable given the mega caps i do think that's important. beyond one or two names, i think the trend is listening for what's going on on the jobs front. we learned more talk about layoff discussions outnumbering those discussions about the inability. if we hear more of that, that could raise some concerns about the consumer confidence that's been underpinning some of this rally. so i do think there's more than just a few names the market is going to be focused on in terms of f what we're hearing from business leaders.

>> what is your w.e.x. word of the day? >> my word of the day is el nino you know, weather usually doesn't have much of an impact of market but that could change in the coming quarters as extreme weather followed by el nino could cause economic disruptions. it comes when the environmental is already vulnerable to shock we're seeing extreme heat. the hottest week ever in the first week there of july we're seeing airlines using more fuel to beat that heat hospitals in the southwest are seeing the most emergency room cases since the pandemic low water levels in germany are making it impassable rivers in france are too hot to cool nuclear reactors. so there are a lot of factors here there's food production, movement in the price of energy, insurance losses we want to keep a close eye on it el nino is potentially a risk given the vulnerable economic

backdrop. >> with today in mind, is there any sector or stock you could look at that might be vulnerable to the weather disruption or the el nino disruption >> usually it's the material and material factors that are most impacted with the energy stocks, we'll have to see what happens with fuel and coal and a number of other commodities as they try to get to where they're needed. we're seeing a rationing of electricity in parts of europe this is maybe more of a europe issue at the moment, but it's affecting the u.s. as well look for it to increase as we get into more of the el nino effect this fall. >> jeff, i want to wrap things up just for today, choppy before the decision do you expect things luke the dow rally to continue? what's your outlook for today specifically a lot of people trying to make some moves ahead of the big decision. >> almost certainly on fed days you get a market reversal. you get a knee-jerk reaction on the statement, the initial

comments, and a reversal from that be very careful trading around that 2:00 to 4:00 time frame. >> jeff kleintop, always great to have you here thanks very much w.e.x. word of the day, el nino. a look at futures. in the red across the board. the s&p down fractionally about a tenth of a percent the dow down just about a quarter of a percent we want to take a look at treasuries ahead of the big fed decision at 2:00 p.m. eastern. take a look at treasuries. we're seeing it at 3.88. pretty much where it's been all week long. it's been pretty much range bound. we're looking at the energy market jeff hit on el nino and its impact on the energy markets brent crude down almost just about the same amount. natural gas down just about a third of a percent. that's going to do it for us here on "worldwide exchange. thanks for your time thanks for watching. microsoft shares down almost 4% as well. we've got "squawk box" coming up next they'll continue the

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good morning it is fed decision day, but you know that. market wisely expecting a quarter point hike at today's meeting. we're going to talk about the impact on the market, what the central bank could do next, and what jay powell might say. body language, we'll figure all that. tech movers. need a tech expert on this sitting right across from me alphabet is higher, microsoft is lower. and snap , inked, plunging. ftc, the long-awaited antitrust

case against amazon, details straight ahead it's wednesday, july 26th, 2023, and "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in time square i'm beck request quick along with joe kernen. andrew is on assignment in los angeles, and he'll join us a little later this morning. u.s. equity futures at this hour, take a look. whoa that's the first we've seen that in a while red arrows these are not significant declines, but you're talking about the dow, which has been up for 12 sessions in a row that's the longest streak since february it's now at its highest levels since february of 22