it is 5:00 a.m. and here is your five @ 5. the dow riding a near historic win streak looking to match a record hit more than 100 years ago. jay powell leaving the door open for more not just the fed the european central bank releases its latest policy today. all but certain it will follow the fed's lead. the biggest day of the earnings season which has so far been a catalyst in sending the market higher. shares of meta are popping and doing something for the

first time since 2021 and then later on the show, investing outside the box and under the radar. today we look at crypto and what, if anything, could trigger a breakout hire. it is thursday, july the 27th, 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 started for the day. we'll kick off with a check on the dow riding a 13-session win streak, longest since 1987 and if it ends higher today it will be the longest win streak since 1897 taking a look now, futures solidly in the green the nasdaq doing the best, up over 1% right now in the premarket. all right, we're also watching a big pop in nasdaq futures up more than 1% on the heels of stellar results from meta platform shares. much more on that.

the chart of meta, big spike to the upside after that earnings report we'll dig deeper shares up almost 8% and all this after the federal reserve resumed its historic rate hiking campaign boosting key rates by 25 basis points to their highest level in 22 years. chairman jay powell leaving the door open for even more. >> i would say it is certainly possible that we would raise funds again at the september meeting if the data warranted and would choose to hold steady. we'll make careful assessments meeting by meeting >> on the heels of yesterday's decision we are checking the bond market and seeing yields mostly staying the same ticking up slightly on the benchmark 10-year, the 2-year note, not a lot of movement. energy, oil riding a four-week win streak and closing in, getting close looking at wti at 80 bucks a barerel.

steady move to the upside, almost 18% higher, 17.5% higher in the last 30 days. futures pointing to more gains on wall street but let's see how global markets are digesting the latest from jay powell as europe prepares for another major central bank call, we have our joumanna bercetche live in our london newsroom with much more joumanna >> that's right, frank the hanover has been pretty positive shanghai composite down 0.2% though over there we see a slight industrial profit weighing on the index, hang seng is up 1.41 and nikkei up 0.7%. over here in europe all the bourses, down 5% with shell disappointing on profits

xetra dax up and the number one event you're watching today is the ecb, a 25-basis point rate hike is widely expected from today's decision with traders eyeing the press conference this amp to get a hint at what happens next eurozone inflation stuck at 5.5%, down from may but core inflation has increased in the 5.4% peer leaving an uncentral path as some pmi indicators have started to slow down not a lot of movement in fixed income but could change in a couple of hours. >> joumanna, thank you very much our joumanna bercetche live in our london newsroom. let's keep the conversation going. joining me now adam villa at ep wealth advisers. great to have you here with us. >> great to be with you. >> the fed, quarter point hike as expected. we all thought that would happen what did you think about what

powell said and that he doesn't see another hike until a year from now how do you see name packeting the markets? >> i think jay powell is starting to figure this messaging thing out. it was a really balanced message on the whole, as expected. and i think they are data dependent. he's not showing his cards i don't, frankly, though, i'm not convinced he knows what his cards are yet so he'll wait to see how this plays out, whether there is another hike in september or november, i think, remains to be seen and focused on when they will start cutting rates. >> you're interested in that we have new research from morgan stanley overnight ruling out a recession, all but, and we continue to see a soft landing for the economy and continue to look for the fed to hold at 5.375 for an extended period before making the first 25-basis

point cut in march of 2024 surprised by that take from morgan stanley is it even possible after what jay powell said yesterday? >> i think that's fairly in line with our view actually i think that makes sense we're not expecting the first rate cut until sometime in early '24. i think -- >> he said a year from now that's the second half of '24. >> i would say we're expecting it the first half of '24 we're not going to see multiple rate cuts. what i think was notable from what jay powell said yesterday was that he said policy rates are now restrictive but haven't been restrictive enough for long enough meaning that they might cut a little bit, but what the bond market is currently pricing in, five cuts of 25 basis points between now and the end of 2024 is hard to see and certainly doesn't match up with what the equity market is telling us. >> give us a sense what you think about the markets ply for this day ahead nasdaq futures up over 1% and a

lot thought it was partly fueled by the idea this would be the last hike, clearly that's not the case and the door is open we've been saying all morning long do you believe technology can run simply on a.i. enthusiasm? >> i think it can, at least over the short term our longer-term outlook is more cautious over the short run there's enough in the data to support this notion that the fed may have actually engineered a softer or no landing scenario. we do believe there is a lag to these -- this policy tightening and so we're not going to see that show up in the data for several months to come that's why we want to still -- why it still doesn't pay for us to be ultra bullish at this time. >> all right, so not ultra bullish but seem to be agreeing with what the fed says no recession, no crash a no landing adam phillips, great to have you here >> thank you. this morning's other top stories and a big money mover, meta platforms

silvana henao is here with that. >> shares of meta platform popping in the premarket they're forecasting higher than expected revenue for its current quarter after topping estimates for q2 meta says it returned to double-digit sales growth in its most recent quarter for the first time since 2021. mark zuckerberg touting its reels product. >> reels is a key part of this discovery engine and reels plays exceed 200 billion per day across facebook and instagram. we're seeing good progress on a reals monetization with annual run rate across the apps now exceeding $10 billion up from $3 billion last fall. >> meta shares are up 167% year to date. how about that >> how about that? shares up almost 8% now and

looks like that run will keep going. silvana, we'll see you later in the show. first, why it could be a tale of two food stocks as investors digest some unsavory results from chipotle as we look ahead to mcdonald's. plus, one of the country's largest power grids getting set for a possible state of emergency ahead of a northeast heat wave. we'll look at the stocks that syoustl eaon exposed and have a bu hr ilahd "worldwide exchange. ♪ ( ♪ ♪ ) ♪ (please don't go) ♪ ♪ (please don't go) ♪ ♪ (please don't go) ♪ ♪ (please don't go) ♪ ♪ (don't gooo) ♪ ( ♪ ♪ ) ♪ (don't go away) ♪ pre-order now and get a free storage upgrade. ♪ (please don't go) ♪

all right, welcome back to "worldwide exchange. we're getting set for the busiest day of earnings season and focus after the close, intel, shares already up 30% this year. our christina partsinevelos has the key numbers to watch >> the pc bottom is here but can they catch up? that will be top of mind for investors this earnings season intel is highly exposed to personal computers and the recent weak demand contributed to its biggest quarterly loss but the tide may be turning. n notebook shipments have been above expectation, five out of six months so far this year, although still down double digits from last year but morgan stanley's checks say data center demand remains weak. a negative for intel and amd and you've got investor interest that has shifted to ai chip

plays diluting the processing unit business. investors will want to know the a.i. demand affects the cpu versus the gpu by the likes of nvidia and intel is playing catch-up only out with its own a.i. chips in 2025 part of the reason why intel stock is up only 30% year to date at 70%, intel, semi etf at 58% but intel is betting big on becoming a foundry player producing chips for other countries although remains to be seen whether that will pay off and much of the reason why so many on wall street have hold ratings on this stock. so, again, frank, we'll be focusing on pc demand bottom, weaker data center revenue and, lastly, any progression in the foundry business back to you. >> that was our kristina partsinevelos. investing outside the box.

crypto and what could trigger a breakout we're looking at the futures. the nasdaq up over 1% in the premarket. we're also looking at the s&p up over half a percent and dow on a near historic win streak up fra fractionally we'll continue to watch it much more "worldwide exchange" coming up after this break ♪ to help you see untapped possibilities and relentlessly work with you to make them real. ♪

all right, time for your big

money movers imax beat estimatesing with help from super mario brothers and now "oppenheimer" and "barbie. the results come as moviegoers show a preference for seeing movies in premium theaters shares of imax up over 5.5%. ebay, despite beats on earnings and revenue for its most recent quarter, higher investment in auto parts and collectibles adding to its dimmer outlook shares down almost 5% in the premarket. volkswagen shares driving lower after they reported higher revenue but reaffirming its 2023 outlook and lowering its full year deliveries as it's hedging effects and pressure from china weighing on the stock, down almost 3%. we'll stick with earnings. mksd's moving higher as they prepare to report q2 earnings in the next hour.

expectations high for them often see as a bellwether for the restaurant industry with analysts estimating nearly a 10% increase in same-store sales all this as shares of chipotle, getting smashed on a q2 report that was mixed brian nickel warning, especially for who commodity, beef and avocados and let's talk more about it with sara senatore. great to have you. >> thanks for having me. >> chipotle shares, under a bit of pressure. the miss on revenue has investors selling. but you didn't change your price target or your buy rating. what did you see that you liked in that report >> well, i think one of the key important metrics that we always look at for restaurants is same-store traffic, so are more people coming? are they buying more things than they did last year in the same restaurant and the answer for this one is, yes, traffic

continues to be among the best in the industry at 4%. plus, they still have substantial opportunity to improve that further after a throughput initiative to serve more people faster and see it accelerating if they can turn the dial up on that. >> one question for you, we talk about valuation a lot of times chipotle trading at 45 times forward earnings a bit expensive for a fast casual, isn't it >> it's not when you consider its growth so, again, one of the best, fastest growing concepts in restaurants even though it's been around for decades still seeing unit growth 8% to 10%, possibly higher as well as same-store sales and the traffic alone is up 4% then growth on top of that. we look at it on a normalized basis. could have 7,000 stores in the u.s., plus, however many more internationally, we could see them open over the years so we

really don't think that this is expensive when you consider the growth, the returns on the stores, how profitable they are and just how long the runway is for the company. >> yeah, investors have been willing to pay for growth. so i want to turn to some of your research according to data spending at fast food restaurants increased 5% yore over year in june and saw a general decline in inflation and going viral. they brought back grimace. i thought grimace was gone they launched the grimace shake. what are your expectations for this report from mcdonald's? >> yeah, so to your point, you know, they've brought back and done an amazing job using their, you know, ip, if you will, to really connect with customers so the marketing and menu initiatives they've had over the last couple years have been sort of one successful launch after another including using grimace so expect strong same-store sales out of the second quarter,

up 9% and expect healthy earnings growth on the basis of that 9%, the high single digit same-store sales growth and have earnings of 10% year over year. >> if we had more time i would ask you what grimace is. i can never figure it out as a kid what he's supposed to be more importantly, how should investors view that it's been a relative underperformer compared to some peers like shake shack, pot belly's, other names rising to almost 300%. >> so, i think, look, this is such a great company over time, very stable performer but as we talked about, people are paying for growth you have other concepts growing faster and i think in an environment where the consumer is still spending, where we are seeing inflation come down, there are going to be other companies that will benefit more from that just in terms of their, you know, power to turn revenue growth into earnings growth and i think, you know, in a year like this people will want to be further out on the

risk curve that's why we've been neutral on the stock even though it is a great company. >> sara, great to have you here and next time you come on, tell me what grimace is supposed to be, a purple blob. >> i'll do my best. >> sara, great to have you here. turning our attention to a developing story and largest u.s. energy grid covering more than 65 million people from washington, d.c. to chicago now declaring a level 1 emergency ahead of what's expected to be the first major northeast east wave of this summer. this after the rest of the country has already been enduring record temperatures of their own. a recipe that does not bode well for a certain part sophie karp is from key bank capital and joins me now. >> good morning. thank you for having me. >> explain this to me. we're talking about a heat wave and it's impacting utilities negatively so just normally you think, heat wave means people are using more ac, more demand,

higher revenues. why is this bad for utilities? >> well, there's a couple of things here. in the northeast specifically so the heat wave translates into more demand. does not translate into higher earnings for them but on the other hand it increases the likelihood of outages and that translates into higher costs in addressing those so that's something that definitely we'll be monitoring closely. in some other areas, heat waves do help. specifically in the areas of upper midwest and such as michigan, wisconsin, in areas like that where the earnings are related to volumes they sell, this may help their results for the year, because people focus on heat waves but, remember, we had a pretty mild start to the summer and was below normal for

the first half of the year so something may help the annual results. >> want to talk about weather and how it impacts utility stocks and have a wide range of coverage looking at data from the noaa, national oceanic and atmospheric agency there is a 90% chance of el nino lasting till winter. what is most ex-mosted >> typically negative. el nino typically translates into milder weather so heat wave actually runs contrary to that, but all the utilities will be exposed pretty equally, milder weather generally equals less volume for those who, you know -- >> so what companies are the most exposed to this impact? >> oh, i would say that this year was specifically watching the upper midwest, right, where we expect that the milder weather might translate into weaker volume across the board we also specifically watching

the southeast, so upper midwest we're watching energy. >> talking about all these possible headwinds certainly there has to be some that are your top picks. give us a sense of what you think is the best picks in the utility space and investments for now? >> we're focusing, given where we are in the cycle, on the value. i would point you in the direction of first energy which is a utility in ohio and no northwest and montana and both dr. developments which would translate into higher growth rates and less overhangs in the future years and trade at a discount to the sector >> so, one question outside of weather right now, sophie, when it comes to that, is it a boost for these utility companies? revenues, you said, aren't necessarily tied to their lows >> yes

so even if the volumes are not necessarily boosting sales the infrastructure upgrades that are required to facilitate the evs outboost will translate into sales higher over time so even for utilities such as, you know, they don't necessarily are dependent will translate higher >> we had to find some upside. sophie, thanks for being here. >> thank you as we head to break want to check shares of barclays getting hit hard in overseas trading they reported q2 profit that beat estimates but sales fell short. the bank lowered net interest margin guidance for the year and barclays unveiling a new buyback program that was well ahead of the street estimates taking a look the shares down more than 4% much more "worldwide exchange" back in a moment

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it is right around 5:30 and there's still a lot ahead. here's what's still on deck. wall street looking to build on the back of the fed's latest rate hike as investors gear up for the busiest day of the earnings season. right now futures are higher meta taking off as efforts seem to be paying off but new warnings about the road ahead. big tech is the focus in washington today as lawmakers

get set for a renewed sector crackdown. it is thursday, july the 27th. you're watching "worldwide exchange" right here on cnbc welcome back to "worldwide exchange." i'm frank holland. let's get you ready for the day ahead and pick it up with a check of u.s. stock futures, the dow riding a 13-day win streak, longest since 1987 futures solidly in the green, nasdaq up 1% so, i want to go back to the dow. if we end higher on the dow today it would be its longest win streak since all the way back in 1897 and all this after the fed resumed its rate hike campaign raising key rates to their highest in 22 years with another 25-point rate hike and powell saying the fed probably has a long way to go in tackling inflation. >> but our eyes are telling us policy has not been restrictive enough for long enough to have

its full desired effects so, we intend, again, to keep policy restrictive until we're confident inflation is coming down sustainably at our 2% target and prepared to further tighten if that is appropriate. >> we'll talk about powell later in the show. but right now we're checking the bond market on the back of that. the benchmark right now, 3.87. just ticking up slightly from yesterday, same story for the short end of the curve, not a lot of movement in the bond market time now for one of your big money movers talking meta, shares moving higher as they beat expectations across the board accelerating revenue growth to 11% for the first time since 2021 and forecasting further acceleration in the current quarter. you can see the big move to the upside for the stock ceo mark zuckerberg highlighting expenses on the call to shareholders last night after raising 2023 and 2024 expense guidance >> the year of efficiency was always about two different goals, becoming an even stronger technology company and improving

our financial results so we can invest aggressively in our ambitious long-term road map now that we've gotten through the major layoffs, the rest of 2023 will be about creating stability for employees, removing barriers that slow us down, introducing new a.i. powered tools to speed us up and so on. >> and joining me now the managing director at cleo capital. always great to see you, sara. >> thank you. >> give me a sense of how you took that. they'll raise expenses this year and next year but a lot of us thought this big rally year to date was about the year of efficiency, if you're raising expenses does that mean it's over >> you know, i'm going to call this the year of lama and last year i was quite a meta bear, not buying what the metaverse was selling but the reality is zuck has massively pivoted from that it's not necessarily about cash. they're hiring a.i. engineer,

not cheap hires in silicon valley and i think it's a year of efficiency focussing on products that could massively move the revenue needle like lama 2 and i'm excited about it. >> let's get back to the quarter and some things we learned about it just showing the charts, shares up over 150% year to date, big run. double digit revenue growth, first time in a while, two year, single digit growth when it came to facebook. what people were shifting away from reels going from 3 billion to 10 billion and more details on lama 2. how excited are you about it and is that based on that or the strong quarter >> i think it's based on both. i think there's two themes here, one is that there's an obvious big chance that facebook advertising is going to be

positively impacted by things like lama 2. they can be competitive in a.i. and i think that reminding us about that with that is that piece of it. then the other piece is facebook and meta have historically been great at copying you look at relation, their tiktok competitor and things like the launch of thread, the competitor of the app formerly known as twitter and those are interesting advertising friendly forays in spaces with proven sort of utility with other companies that are having some trouble, i think, you know, potentially at scale. >> when it comes to threads, reels, everything that meta is doing right now, do you think they're in position to compete with tiktok? a lot of what appeared to be battling tiktok and maybe even taking down what's left of twitter or x or whatever that's

called now >> i mean, i think the reality is that, you know, reels got certainly a slow start to tiktok but if you're on instagram, the product sticky works you spend a lot of time watching videos of people you don't follow that you do find engaging and that's really the core of the tiktok experience and the reality is because of some of the potential regulatory problems that, you know, chinese company bytedance, the parent of tiktok, you know, is likely to have as they seek out becoming a public company and things like that, i think reels is here to stay and that it takes a meaningful piece of that tiktok, you know, market share >> i am personally a reels fan myself metaverse. i don't even know what that means. that feels like a dream, sarah it is great to have you here on "worldwide exchange. for more on meta's results don't miss a first interview with susan li, today at 11:40 a.m. eastern all right, time now for our week-long special looking

outside the box for under the radar investing opportunities. today we're going to zero in on crypto which has outperformed even some of the most high-lying markets of the market. weaver a look now at the potential risk and rewards ahead for the sector it is great to see you >> good to see you it is a pivotal moment and a court ruling could stifle efforts by gary gunsler to wrangle the wild wells of trading. whether the s.e.c. has a clear path to regulate most alt coins as security and that is viewed as a net win for alt coin traders who feared an eminent crackdown as well as coinbase which faces its own legal battle with the s.e.c the top assets are up 48% this year compared to 17% for stocks and 9% for gold. meanwhile, bitcoin is outperforming the nasdaq 100 as are crypto peg stocks like

coinbase, galaxy digital and micro strategy bitcoin can't seem to break out from the 30,000 price level. there's not much investor interest some support from institutions but no real catalyst to drive the price higher or lower. things that would normally affect bitcoin such as the fed raising rates are barely moving the needle what the market appears to need is a return of confidence from institutional investors that could potentially happen if an etf that directly spots its price is named some of the biggest names are racing to offer it including black rockies. if they get the green light they could spur a buying spree and meet reserve requirements and seeing movement on crypto legislation on capitol hill and crucially, frank, there is a technical event called the happening coming up next april which typically marks the start of a bull rein for bitcoin >> mack, always great to have

you here, mackenzie sigalos, thank you very much. bitcoin could zoom all the way to $100,000 by the end of 2024, just a few weeks ago that outlook was updated saying there's even more upside than that jeff kendricks, good morning >> good morning, frank. >> let's talk about this, all the stars aligning, everything just kind of falling into place. what is your updated price target for bitcoin at the end of 2024 now higher than 100,000? >> i think somewhere in the 100 to 120,000 range by the end of next year is looking likely. when i put out my first note a couple months ago looking for 100,000, i talked about a number of drivers and, quite frankly, on each of those i'm even more constructive than i was a couple of months ago. the first thing which happened in march in the u.s. were u.s.

banking concerns, svb, et cetera, that everyone knows about helped bitcoin get from about 20,000 to 30,000 which is roughly where we're trading again right now. other drivers within there, the fed hiking cycle likely to end, i suspect that happened last night in terms of what we heard from fed chair powell during the presser, the fed are very likely to be done now it would have to take very, very strong data to -- >> wait, geoff i'll jump in for a second. you're saying that some of this rally has been pegged to the idea that that was the last hike so if we see another hike does that hurt this crypto rally? >> i imagine you could argue if the fed were able to hike again going forward or if they needed to, that could be actually because the u.s. economy is stronger than people expect, right? right now the base case is that inflation keeps coming lower, growth slows a little bit, et cetera, so if you were to see an even stronger economic outcome then probably that would see

stocks edge a little higher and the fed could do maybe one more hike so for them to do a lot more from here, i think, is very, very unlikely and would need to see inflation accelerating. >> crypto has been out doing well since the chance of svb, up 18% since then so have we officially seen the end of crypto winner and is wall street trying to or starting to really understand the use cases talking about bitcoin etfs and things like that, are we seeing an application that investors can jump into? >> for sure. winter is over in terms of crypto i called that a couple of months ago and stick by that today. bitcoin's core use case is when there are concerns in the sector we saw that a few months ago and just now as mackenzie mentioned earlier we're getting close to the next cycle in nine months from now, the previous one, six months out from that and prices start heading sharply higher and expect the same thing this time.

it's probably on the back of that core use as well. but also because bitcoin miners should do better. >> geoff kendrick, 100,000 by the end of 2024 officially calling the end of the crypto winter we'll have to check back in with you. your morning call sheet and a double downgrade for one chinese tech stock putting pressure on shares g 'll show you that name comin up

welcome back to "worldwide exchange." the news alert this morning, lawmakers in washington taking a fresh look at big tech our emily wilkins joins us with steps congress is set to take today. emily, good morning. >> good morning, frank well, the riff between the two are widening to the point it's bridging the divide between republicans and democrats. senator elizabeth warren and republican lindsey graham are introducing a new bill today that would create a five-member commission to oversee big tech companies. the regulatory group would review potential mergers and limit how personal data is used in targeted advertisements and would require that certain platforms be owned by u.s. citizens or have a u.s. subsidy among a number of other things that this committee could do warren told cnbc, many companies have exploited consumers' data and threatened national security and stomping out competition in the economy. this afternoon a house committee will vote on whether to hold

mark zuckerberg in contempt of congress it's a move that could ultimately lead to some legal repercussions but unlikely we'll see him in handcuffs usually when lawmakers hold someone in contempt of congress, it's a partisan politician, not a prominent ceo. in a letter to zuckerberg this month, house judiciary chairman jim jordan accused meta of taking down facebook posts that the white house didn't like and then failing to provide the committee with requested documents. their spokesman said the committee delivered more than 53,000 pages of documents and allowed a dozen current staffers to chat with the committee >> emily, tell us the status of the current antitrust regulation, any appetite for that right now in d.c. >> reporter: there is appetite i think the difficulty is the oxygen, right? congress has to pass a couple really major bills they've got that government funding deadline that's coming up at the end of september and basically off for all of august. we're not going to see anyone around congress for the next couple of weeks and so that

leaves them a limited amount of time to get major pieces of legislation done and at this point it's just not clear things like antitrust, big tech, or even this bill will make the cut. but certainly the fact that it is bipartisan that you've got elizabeth warren and lindsey graham, that's not a normal pairing for a bill and certainly speaks to the amount of momentum there is, even if it's not now for eventually getting something done >> all right, our emily wilkins live in d.c., emily, thank you very much. >> thank you all right, time for your morning call sheet and start with jpmorgan. they say while they remain positive on bilibili among gen-z users it's becoming more cautious on its outlook. shares down 2% morgan stanley cutting carvana's rating but raising price targets and while it gives their management credit for carrying out key cost savings, significant challenges remain

when it comes to used car, consumers and the viability of the company's long-term business model. shares of carvana up over a half a percent right now. and your stock of the morn, what else, meta platforms flurry of upgrades on the back of earnings with ubs and mizuho bumping prices up almost 8.5% time now for your global briefing we begin with the european central bank set to issue its latest policy decision at 8:15 a.m. eastern. expectations are the central bank will raise rates by 25 basis points, christine lagarde will hold a press conference at 8:45 eastern. shares of shell under pressure adjusted earnings of $5.1 billion missed analysts' expectations fuelled in part by weaker energy price, shares down

over 1%. samsung reporting a 95% plunge in profit for the second quarter as weak demand for its memory chips continued while the company says global demand is expected to gradually improve in the second half of the year. macro economic risk could make that rebound challenging shares of samsung right now, just off over 2.5%. we want to bring your attention to breaking news out of europe. eu antitrust regulators opened an investigation into microsoft of tying its chat and video app teams with its office product, the eu says microsoft may be abusing and defending its market position and productivity software shares up 1%, again, that news just breaking. eu regulators taking a look into microsoft and antitrust possible violations coming up on "worldwide exchange," the one word every investor needs to know today, plus we lay out a busy day ahead and new warning of why august could provide a fresh test for

the market'sal rly much more "worldwide exchange" back after this. you should get a second opinion from innovation refunds at no upfront cost. sometimes you need a second opinion. [coughs] good to go. yeah, i think i'll get a second opinion. all these walls gotta go! ah ah ah! i'd love a second opinion. no. i'm going to get a second opinion. with innovation refunds, there's no upfront cost to find out. so why not check like i did for my small business? take the first step to see if your small business qualifies for the erc.

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new world ideas. morgan stanley. time for your wrap-up. we'll continue with breaking news eu antitrust reg laters opened an investigation into microsoft tying its chat and video app teams with its office product. looking at shares up 1%. that news just breaking. we're also following the justice department and epa investigating the potential health and environmental risk stemming from a threat work of toxic lead cables across the u.s. focusing on whether telecom companies had knowledge of their potential risk to their workers. amazon announcing it's cutting hundreds of jobs at its fresh grocery stores as it looks

to increase efficiency and restructure its operations model. pjm declaring a level 1 emergency for its 13-state eastern grid and calling on all power plants to operate at full capacity during the upcoming heat wave. align getting a boost after beating earnings and revenue estimates issuing strong full year guidance. that stock now trading near a 52-week high shares up over 13% shares of chipotle moving in the other direction. looking to extend yesterday's losses after the burrito chain warned of cost pressures in the coming months from higher beef and avocado prices key part of that guacamole they offer, shares down more than 8.5%. with the busiest day of earnings on tap and yet another central bank decision today, plenty of fuel for the trading day, but it could be a rocky month for the markets in the days and weeks ahead according to a new note. they say in part, markets have entered a window for potential

short-term trend change, but do not expect much selling until august near term an s&p 500 in the range of 4500 to 4620 might hold into last couple days of july before weakening down to 4350 to 4400 into mid-august before rally. serat, great to see you. >> good morning, frank. >> i want to bounce that off you first. following the fed decision that's how fund stat sees the market shaking up. no big sell-off in the near term what do you think about the day ahead? >> look, i think earnings will be really important. we've had a few stocks that have really taken this market to a new level and need the rest of the stocks to do the same so i think earnings from honeywell, you know, are going to be important and had good numbers from ge. s that we have to look at the industrial companies if you get that you're going to get that next lag and get a

sustainable move or stay here. if you don't, some of the stocks that are holding the market up that are pretty highly valued, you'll see them come down. >> you mentioned some of the stocks that are highly valleyed. at the same time you're talking about industrials and some of the other parts of the market that weren't getting as much action in the first half of the year with that in mind, what is your wex word of the day? >> diversification it's great to own the tech stocks that have done well but there's so many other companies out there like the honeywells of the world, boeings of the world, mcdonald's and health care and a huge amount that deal in single digit multiples that if where we are with the market, the fed says we'll raise once and wait and see and you have to look and say where is the potential in this market with interest rates where they are and rebase the whole capital market structure because the fed has said basically we're not going to cut rates. if they are it's going to be for the reasons that none of us want >> sarat, you're talking about

other parts of the market as we see meta trading higher on a.i. enthusiasm what moves would you make today? would you put money into industrials, or maybe even the restaurant space, obviously as we mentioned mcdonald's about to report >> i would actually take a little bit of money off the tech stocks we own meta. i would diversify a little bit out of meta. it's not everything you wanted to do, the efficiency model, a.i., stock was 90 a few months ago so take some of the winners. it's okay. doesn't mean you have to sell it all but take some of that and move it to the areas that have not done well and i'm talking health care, i'm talking about defensive utilities, commodities, commodities are going to do well in an environment where we know we'll have inflation so look to see whether there's an opportunity elsewhere in the market, not just with the winners the whole time. >> so, sarat, you're saying diversify and the nasdaq futures up almost 1.25%.

how do you see the rest of the day playing out and the hike and jay powell not closing the door to another one this year >> i think the market is going to be strong today because what powell said is we're going to be data dependent and that means we're not just going to go ford like we did at times when he said we would be raising so the market is saying, hey, if we can price in and discount the levels we're at today, then we can actually see where we want to be the uncertainty taken out provides a good foundation for the market and, frank, it's going to be earnings none of these companies will do well unless you have strong earnings and google and meta did very well. if you actually do not provide the earnings the street is looking for your stock will get hurt >> mcdonald's coming up. big day, i think it's the busiest day, sarat, a lot to watch. always great to see you. >> absolutely, thank you all right, that's going to do it for us on "worldwide exchange." we got "squawk box" coming up next thanks for being here.

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good morning it's really pretty unbelievable, the dow on its longest winning streak now since 1987. don't think about that year, but that's how long it's been. rising for 13 now, 13 straight sessions and the futures pointing to a higher open again this morning federal reserve, all this after they lifted rates to a 22-year high jay powell said it's too soon to tell whether the hike would be the last and earnings season is going to roll on we'll hear from mickey d's, honeywell, southwest airlines and our parent company, comcast, it's thursday, july 27th, 2023 and "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq marketsite in times square i'm becky quick along with joe kernen and andrew ross sorkin. welcome back you got to be tired. >> i am a little bit i got my coffee here >> you need a second. >> from all that, you and kevin, all the -- must be -- >> very relaxed. >> you're very low key well, that's good, right >> easy morning. let's take a look at what's happening with u.s. equity futures. you'll see green arrows with dow futures indicated up by 60 points this comes after a gain yesterday of 83 points for the dow. that is the 13th time in a row that we've seen higher numbers for the dow at the end of