it is 5:00 a.m.eer at cnbc global headquarters. stocks making a comeback after the dow fell short of tying its daily win streak since back in the 1890s. and blame india. hawkish from bank of japan u.s. investors weighing the long-term impact for wall street shares of intel surging ahead of the open company back in the black after two quarters of losses with the ceo, what he's telling cnbc about that turnaround nap coming up plus, throw cold water on its ev demand expectations.

later in the show, how retail investors can play a possible pe deal-making rebound. it is friday, july 28, 2023. you are watching "worldwide exchange" right here on cnbc. good morning welcome to "worldwide exchange." i'm frank >> and a surprise q2 report. shares of intel this morning in the pre-market now seeing shares up over 6.5% we'll watch this throughout the morning and more in a moment so this, after a wild day of trading or wall street yesterday saw the dow on track to tie its longest daily win streak since 1897 before losing steam late in the day. investors blaming the bearish turn on the bank of japan. initial reports before the

actual confirmation overnight it would be tweaking its ultra loose monetary policy to allows the country's benchmarch ten yield to rise above .510%. that shift could send japanese investors traditionally vast holdings of u.s. fixed income and other u.s. securities running back to chase yields in their own front yards and selling the u.s. that's the fear. a sharp move to upside similar move at home with our own ten-year yield benchmarch ten year. you can see. that yield above 4% now. big move to the upside from seen in recent weeks. especially an the cpi report so yields fall. and live in our london newsroom, we have the trade. good morning. >> yeah. good morning, frank. actually that trading picture meant the nikkei actually had

gone a lot weaker than more than 2% losses in terms of that opening picture in trade eventually it recovered quite a bit and seeing it below, nikkei 225. across the risk of the asian trade we saw positivity. zone in on that japanese market that we've pointed to indicates down significantly the dollar, flat, seen the yen, however, get some weakness on this front even though initially it had actually pushed quite significantly higher yesterday around a third percent strengthen for the yen across this u.s. dollar rein. set at 138 look that. even almost touching 140 at some stage on back of the news of that control, so to speak, looseni ing somewhat of that yid control curve. ten year, 0.175.

highest, touching 0.6 at some stages key issues to look at and worry about for that yield right now overall, european markets performing then today, switch focus a little a lot of earnings news out of the banks. standard, even that locally as well in the uk that meant we've seen ftse 100 push up 0.2% and gains for ibex 35 the rest of the market turning negatively unfortunately only the cac 40 out in front seems to be negative on the week frank? >> thank you very much by the way, got to tell me when we're wearing all black if we keep this bromance going, man. let me know. >> do it, every friday >> let's do it next friday. bank of japan digging deeper, kevin karen, c cfo

>> great to be here. >> bank of japan and its new policy putting brakes on what could have been a historic run for the dow. how do you see it impacting the market day ahead keeping in mind dow futures up a fraction. >> yeah. i think this is a story that's going to play out over weeks and months, not days of course, the shock of having the bank of japan come away from a long-held policy of yield curve control is something different that the market's going to have to digest. but the bigger story going on is that the data for the economy globally and here in the united states has proven far your resilient than the vast majority of forecasters, what they were looking for beginning of the year tremendous bearishness beginning of the year. reversing and re-rating of that expectation like the uncoiling of a spring allowing the markets

to have a bit of a rally off the bottom. >> right obviously bullish sentiment out there in the market. back to the bank of japan and shift on ycc pu krchltycc you say play out over the next weeks. bond market, equities? certain sectors more impacted than others? >> well, it's going to be everything bond market, currency and equities all of this, of course, a complex dynamic involving multiple economies and what i'm saying is that this story with, where yields go in japan has got to be put in the context of a, of a global monetary system where you've had a large amount of tightening all around the world. >> okay. >> putting pressure on the bank of japan. >> talk about -- for a second. overweight on foreign equities versus the u.s does that change thesis at all for you? >> no.

think about the cause of it a good deal of the cause of this has been stronger growth than expected in many parts of the world, especially in europe. but the other part of the more constructive call by washington crossing on foreign comes from the fact that multiples around the world are much cheaper than here in the united states. i think we're at something like 20 times earnings here in the united states after a big rally in thefirst half, right. >> the rest of the world is much cheaper. that's a longer-term play for us. >> you see a values trade overseas look forward pce later today. preferred inflation gauges for the fed. how do you see that impacting the market again, jay powell saying fed will remain data dependant how important is this knowing others are coming up before september? >> very important. rise in inflation off the bottom a couple years ago was very steep, as we had a lot of money creation a 40% increase in money supply

during the pandemic. what we hoped to see is that that inflation rate would roll over, and it is, but kind of sticky in terms how it's rolling over if there's a, a salve in here anywhere it's the fact that the bond market has gotten ahead of this so already we're looking at over 5%, 5.5% forward expectations on rates looking out a year. >> okay. >> now you've got ten year back up essentially 4% now. market's anticipating higher yields already >> all right kevin, thank you very much great to have you here. >> thank you, good to be here. ourtarian, a big money mover pushing dow higher intel higher in the pre-market reporting second quarter results turned profits first time in six months and issues a stronger than expected forecast here is the ceo it sitting down with our own jon fortt looking ahead to q3.

>> inventory levels portend well second half of the year launching meteor lake. bringing in ai capabilities, neuro processors is part of that we believe this launch is the ai pc generation. >> all right joining me now counterpoint research senior analyst. great to have you here >> thank you. >> taking a look at intel moving higher pre-market along with smh etf. the chip etf what is this profitable for intel and the broader sector >> i profitability is actually making upon its promises and we heard the profitability after two straight quarters and then i think this is all of the strategy now actually showing the fruit which we have been listening to about for

particularly from the last few quarters and from a chipper spective showing advancement in terms of performance with meteoric, keeping on its promises now. >> important to note talking about intel shares surging, beating expectations, but a trend of six quarters of revenue decline and continued weakness in data center business. meta, another big gainer this week trying to increase data centers and a lot of that business focused on ai-powered chips. what's the long-term outlook >> i think intel's long-term outlook on ai chips going really good they have its ai portfolio in terms of competition with the chip and nvidia and amd. in the recent performed really great in pcu and

overallperformance improvement i think intel's portfolio is looking very strong when we see integrating ai into its capabilities, and we talk about the cpus, next gen per course, efficient course and then with that gpu launching with flex and max ranges i think intel really is ramping up its portfolio in order to cater to the spectrum and ceo said in its earnings already have a $1 billion pipeline and slated for next year. >> bringing up that $1 billion pipeline important to note and sounds good compare to nvidia'ses $20 billion when it comes to ai chips doesn't seem as great. nvidia the outliner. way ahead when it comes to chips. put it in perspective. s $20 billion amazing. is $1 billion okay as a lot of

companies try to catch up with nvidia >> i think, yes. nvidia, the gpus, but as the ai deployments grow, those deployments or the service needs cpus also and in very good position to pick up that demand of the cpus which will rise again as the ai deployments kind of go intoes neglect stage, which is inferencing the edge. intel is already in position and there is a performance and prospect also. very, very important when we talk about large-scale deployment i think intel is banking on that that their chips are really, really good at giving a better pitt pcu. >> thank you. a lot nor come here on "worldwide exchange" including one word investors need to know today. first, price of oil excite rocketing in july but taking

energy stocks along for that ride plus ford throwing cold water on ev expectations. what that means for ge, tesla and the rest, that's next on the show and how retail investors can get ocead of a trend in the "summer stk spotlight" and it's coming up when "worldwide exchange" returns. ♪ old school wisdom, with a passion for what's possible. that's what you get from the morgan stanley client experience. you get listening more than talking, and a personalized plan built on insights and innovative technology. you get grit, vision, and the creativity to guide you through a changing world. ♪

welcome back to "worldwide exchange." watching price of u.s. crude

briefly trade ago bov $80 a barrel first time since april. lower this morning you can see on a run this month. wt and brent up more than 3% this week alone. move amid strong economic data here in the u.s., stimulus measures in china and how it will boost demand an production cuts by opec same time gas prices at an eight-month high up 4% in the last month aaa says the national average for regular about $3.71 a gallon about 60 cents cheaper than just one year ago talk more with founding partner to gain capital and a cnbc contributor, friend of the show. good to have you here. >> good morning. >> gdp coming in better than expected is that a boost to the oil market even though a backward-looking measure >> no doubt. speaks to demand in the economy

and globally not only here but globally, and just overall good consumer sentiment gasoline demanz, strong diesel demand and strong jet fuel demand feeds in. extent worried about a slowdown across the sectors that gdp number certainly vanquished that. >> gave it a boost two different forces number one china, slower recovery than expected but promises about stimulus at the same time saudis cutting oil setting up for a rally when it comes to oil last few weeks saw a bottom and now upswing here on? >> definitely a big headwind to oil prices as far as going up. their as important on demand side and saudi on the production, supply side. with china and government there stepping up, it appears, to try to get their economy going again, finally, because they thought it would happen, i guess, magically coming out of covid and the lockdown like happened here and in europe.

not getting that they're finally stepping up. yes. looks like the one-two punch in the market finally crediting saudis for this. looks like it's showing up logistics and other measures we keep an eye on, looks like saudi exports could dip below 7 million barrels a day here and next and that is going to be a pinch on global supplies. >> oil stocks sitting here talking chevron down 1%. general, in general, oil companies reporting. what's the read-through? gdp backwards looking but a sense maybe demand was higher than expected? >> this is going to go right to the bottom line. these companies now next quarter at this price persists, and it should, are going to surprise. you're going to see a re-rating of all of them once again i mean, look, last year with the russian invasion of ukraine and the oil price going over $100 a

barrel, you saw, hearing windfall profits and the like. exposed. their lottery ticket last year cashed in, but i tell you right now the refining margins, for example, too, haven't come down, and with gasoline prices soaring the way they are, gasoline crack spread, refining margin profit, at its highest now again in months. that's also going to be rewarding the exxon mobiles, valeros, chevrons of the world here this is a very good place to be in right now you saw hess, for example, even in this environment not 100 only 70, doing terrific these companies have been honing their skills, cutting costs, and bringing in profits out of just $ 70 a barrel. >> great to have you here. thank you for time and insight. >> thank you. coming up here on "worldwide exchange" why sweet green is

leaving a sour taste in investors' mouths this morning your big meyon movers, coming up right after this stay with us. 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. meet gold bond healing. a powerhouse lotion that moisturizes, heals, and smooths dry skin. with 7 moisturizers and 3 vitamins, you can pay more but you can't get more. gold bond. champion your skin.

all right. time for big money movers. sunny day for first solar stock amp beating q2 earnings and expectations driving by ramped up production and deliveries of the company's next generation series modular building a fifth u.s. factory looking to expand its domestic footprint

right now shares up 9% bittersweet story for shares of sweet green tumbling after weak sales and narrow losses from the year, period the ceo attributing labor savings from the turnover and more efficient store staffing as a key factor for improved margins. same s-store sales grows shares down more than 10%, however, in the pre-market shares os rows roku ad spending and hollywood actors and writers strikes on the tv schedule roku shares up more than 8%. ford said section quarter profit tripled hiking guide, for the year, but that raise overshadowed by the company pushing back production targets

for its electric vehicles. also breaking this morning, recall of more than 870,000 f-150 trucks here in the u.s.'sshares extending losses on that news. shares down more than 2% now ford sounding a note of caution on one of the industry's biggest bets saying customer demand for evs slower than expected at least in the near-term talk about that and global ev race with tim higgins, technology reporter at "wall street journal" and a cnbc contributor. great to have you here. >> good morning. >> we all know evs, long-term trend where automobiles are going away from internal combustion engines sustainability pledges and types of things pushes in that direction. what are the near-term, cutting back and tesla will do the same in the near future >> challenge here is price, really one of the things that really kind of shook investors in tesla was the suggestion by elon musk

that maybe price cuts aren't done this year that he wasn't committing to this idea that he wasn't cutting more prices. really, that gets at the overall issue in the industry. electric cars are more pricey than gas cars and what will customers pay for? seen a little price war and looking at ford's results and you see they're losing, about $40,000 on sale of each one, something that shakes investors. shakes the companies, the sea suite and worriship if you are going to have an electric future. >> no sustainable continuing to see losses selling a vehicle dig deeper in prices not only prices of ev, also gas prices looking at aaa regular unleaded 13% lower than a year ago 20% lower than all-time high of june last year. do gas prices, staying where they are, does that continue to be prefber on the ev market

despite the macro trend and looking for more sustainable vehicles and at least here in the u.s. federal regulations pushing the market that way? >> interesting years ago when the auto industry was thinking about electric vehicles it thought it needed to compete against gas prices and why they struggled with bringing out kind of an affordable electric vehicle that really could kind of compete in that area the breakthrough tesla had, sell an electric vehicle so cool, so sexy that it wasn't about price. it was about performance or something else, and that was kind of the winning model for them as we tried, as the industry tries to move forward to get more people into electric vehicles the challenge with price is going to be the issue there. just because a person is looking at it is maybe daily driver and weighing these things. range, how far they can go on a charge cost of ownership. these are the major levers pulled. >> talk about competition

overall. biggest players, ford, tesla, plans to cut back production but increased competition. phil lebeau said rivian r1 t bet selling electric pick-up in the u.s. pulling market share away from the oems >> bringing excite into the market but a competitor, more competitive for those established players. ford does not, is not the king of pick-ups when it comes to the ev market. not to say that their offering isn't appealing to people but huge competition and only getting harder later this year as tesla brings out its cyber truck which is going to kind of proudly appeal to a different kind of subset of buyers of pick-ups nevertheless, in the electric space, add a lot of spark and competition. >> yeah. i imagine investors looking at possible threat of chinese

enters the electric vehicle market as well long way away but a threat. straight ahead here on "worldwide exchange" coming undone meta facing a user retention crisis at threads. what mark zuckerberg and company are doing to reverse what eyth consider an unsettling trengd. back with more after this.

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it's around 5:31 here in america.

what's on deck wall street looking to bounce back after hawkish policy out of the bang of japan helping pump the brakes on the win streak however futures higher gains fueled in part by intel. shares surging at its losing streak on earnings comes to a halt, but the ceo warning of more headwinds ahead meta looking to lower threads users back to the social platform after a massive drop-off following a very splashy debut. it is friday, july 28th and you are watching "worldwide exchange" right here on cnbc. welcome back to "worldwide exchange." i'm frank collin ready to start the day as always check on u.s. futures. dow futures higher carried in part by shares of intel following its earnings report. much more in a moment. a look overall green across the board we mentioned dow up fractionally s&p up a third percent

nasdaq doing best up over half percent and a boost from intel intel a nasdaq stock look at u.s. bond market on back of that bank of japan policy decision a lot of people talking about that here in the u.s. the ten-year yield surging back above 4%. just below 4%. just changed a second ago. really a tick below 4% seeing a big upside move after the bank of japan and its announcement when it comes to ycc. much more coming up in your global briefing. the ten-year yield about 4%. big upswing there. oil, stronger than expected gdp report giving oil a boost. oil tipped just above $80 a barrel dipped back down about a quarter percent now. brent crude same story down more than a third percent gas lower fractionally continue to watch the oil market. turn to one of your big money movers talking intel.

that stock popping on back of q2 results beating estimates and marked a return of profitability. first time after two quarters of record losses, joining us now, a breakdown of the numbers argen, good morning. give you a sense of what you saw in the report. >> good morning. stability the key theme for intel. wasn't a blowout report but investors cheered return to profit in q2 with net income of $1.5 billion versus a loss in the same quarter last year driven by cost cutting intent continue to exit lines of business secondly signs of stabilization in intel's core client group including pcs with revenue versus 38% in q1 amid a weak pc marketed a tough quarter with intel seeing declines in nearly all businesses bright spot, intel's foundry chip manufacturing unit so revenue rise more than 300% year on year off a low bas. catching up in manufacturing a key ambition for them and its

ceo welcomed the news. rosy outlook expecting earnings of 20 cents per share adjusted and revenue of $13.4 billion at mid-point ahead of analysts expectations so far investors are backing pat gue gelsing's strategy. >> what they're hearing and intel shares up 7% what are some potential long-term challenges for this company? >> well, let me quickly say short term concerns whether there will be a pick-up in demand for pcs, could impact them long term first, can intel compete in the ai age heard from intel some money is shifting into people buying gpus for ai chips nvidia sells they have rival rods in the pipeline but a big task convincing its products are right for the market secondly, gelsinger's big

ambition, a position lost many years ago through its foundry business and want to compete with the giants. particularly taiwanese giant and south korea's samsung. gelsinger admitting more work to do and the company has ambitions and ambitious road map to catch up to those firms by 2025. begun to ramp up production of the intel 4 chip using latest technology takes billions of investment to catch up and the whole road map is there key will be execution, frank. >> yes a lot to watch there great reporting as always. great to see you intel shares up 7% thank you. a check on some of this morning's top corporate stories. bertha coombs is here this morning. good morning >> hey, good morning, frank. meta is reportedly planning on taking new steps to try and keep threads users on the new app according to reuters, ceo mark zuckerberg tells employees that the company is heavily focused

and boosting retention on the new social media platform after losing more than half of its users weeks after its launch zuckerberg said he considered the drop-off normal and expected retention to grow as meta adds more features to threads might need to change it up so it's more like twitter if they really want to compete meantime, american airlines pilots union says its struck a deal in principle with the carrier on details for a new labor contract the union says that agreement would bring american air in line with the gains for pilots at rival united airlines. union reps did not give specifics on revised agreement, but american airlines's ceo has said bringing the proposal online with united's would cost more than $9 billion pilots are expected to start voting on that deal sometime next month. and gamestop says its cfo is set to resign next month the exit marks the second

high-profile departure in two months after the company's ceo was fired back in june shares of gamestop facing pressure on the back of this latest shake-up this morning looks to be about flat so a lot of change going on there, frank. >> all right bertha coombs. great to see you thank you very much. all right. turning now to our week-long summer special highlighting outside the box and under the radar investment ideas from emerging markets and luxury to real estate and crypto a few highlights. >> southeast asia even latin america talking about brazil and mexico some of the opportunities that we like in the emerging market space now. >> inherent value and emotional connection to those luxury objects. so really saying that our under 40 audience is growing exponentially and be as well as new clients which are about 50% of our business in the luxury division, actually.

>> fairly a value versus the s&p and we think attractive value. versus fixed incomes bench marks a little more for value. we think it's a good, attractive yield here 4% yields. balance sheets, payout relatively low and decent growth opportunity. >> winter is our goal in terms of crypto. called that a couple months ago and stick by it today. bitcoin, concerns in the sector. saw it a few months ago and just now and as mackenzie mentioned earlier, getting close to the next cycle. >> closing out the week with a look in a private equity new data out from s&p showing global private equity capital deals values more than $1 billion slowest year with private equity moving back to the spotlight this week notably with two well-known firms pouring $400 million in a

buyout for pac west, could we be in a rebound talking more with partner and head of emea private company great to have you here. >> nice to be here. >> jump into this one. private equities an area of the market dominated by names like blackstone, kkr and carlisle how can they get exposure to this part of the market? >> increasing retail investments going on into the private equity market big firms like a carlisle, and kkr and blackstone increasingly building offerings accessible to the retail investors as well starting low as $10,000 ors $25,000. >> interesting are these private market deals do you have to be an accredited investor or your average investor to get in on this >> increasingly the average creditor retail investors will be able to get access to those

offerings. and increasing also digital offerings and digital platforms allowing retailers to get into the market. >> interesting trend what about a investing in those companies themselves kkr is a publicly traded company, so is carlisle? >> yeah. this can be interesting investment as well and the market rebounded from, on those companies as well. of course, you're investing into the long-term management fee streams that these companies have, and you're backing on the continued growth of the private equity and private asset class. >> interesting so i want to talk about research dry powder money private equity companies have to buy things do whatever they're trying to do pretty much at a record. $3.7 trillion. trillion with a t. just about same at last year just under one-third $1.1 trillion in buyout funds

i so much of that dry powder still on the sidelines >> interesting fact. s 3$3.7 trillion dry powder as you say, investment in private industry and on the sidelines because the industry has been waiting to exit because of the uncertainty in the market. where are the interest rates going? how is the economy going to evolve and now what you see is, there's not -- what's more interesting is there's $2.8 trillion of unrealized value in the current private equity portfolio companies. so the industry needs to get going exiting the type of companies waiting 12 months on sidelines and it's time to get moving it's time to get those $2.8 trillion back to the market. a quarter of those companies already in portfolios longer than six years'sthe industry

cannot continue to wait on sidelines. >> we'll watch on "worldwide exchange." great to have you here hope to have you back. thank you very much. coming up here on "worldwide exchange," throwing a wrench into global markets as it pivots ultraloose monetary policy, plus what could be the most expensive apple product ever made and heading to the auction block details on a vintage pair of apple sneakers when we come back. d tell you how they could be more efficient? i'm listening. well, with ibm, you can use software to help you connect and analyze data— from hvacs to elevators to lights. what if we use ai-driven insights to pinpoint inefficiency? yep. and act on it. saving energy, money... ... and emissions. yup. that's a big one. now you've built something better for everyone. that's the sustainability solution ibm and a global real estate company created. what will you create? ibm. let's create.

welcome back to "worldwide exchange." the morning call sheet wall street not feeling love for southwest airlines this morning. deutsche bank and raymond james cutting ratings and price tarngt on the airline bank of america cutting shares of southwest down more than half a percent in pre-market. upgrading buy on crocs outway negatives, the positives. and presenting an opportunity for investors. a look at shares of kcrocs up more than 1.5% and jpmorgan new york community bank overweight and $16 a share. jp m citing a new energy nycb shares up almost 2%. and time now for your global briefing begin with bank of japan officially announcing tweaking its ultra loose monetary policy

to allow the country's benchmark ten-year yield to rise above 0 .105%. traditionally they've held large holdings of u.s. fixed income and security and could lead them to pivot back home to invest the dow fell on concerns those investors will chase higher yields within their own country and sell their u.s. assets along the way. shares of standard reporting a jump growth in chynna continues to stumble, even then. a $1 million buyback plan. shares of asacyofacy -- of astrazeneca. shares up on reports of a successful cancer drug. now may be the time for profit-taking and making a pivot

to a few undervalued names the industry stock high on our radar. much more "worldwide eachange" coming up after this brk. this is ge aerospace, advancing flight for future generations. ♪

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you're an owner. helping you prepare for today's longer retirement. that's the value of ownership. welcome back to "worldwide exchange." time for wex wrap-up a pair of solar names moving in opposite directions shares of energy falling on q3 revenue forecast due to drop in demand rising after announcing planning to build a fifth ukz factory and tops estimate for its most recent quarter. and boston bear getting a boost benefiting largely from the fourth of july holiday reaffirming full year guidance up over 9%, the shares. and chipmaker showing a return of profitability following two straight quarters of losses. revenue fell 15% year over year marking the sixth consecutive quarter of declining sales those shares up more than 7%. shares of surf air mobility

bouncing back in the pre-market after sliding more than 75% on its public market debut. surf the first direct stock listing of the year. shares up almost 10% in the pre-market again, fell big yesterday in the public market debut. vietnam-based ev maker starting construction on north carolina factory this morning. first production lant here's in the u.s. the hub expected to operate in 2025 that's a year later than its initial target. and spongeotheby's auctioni sneakers price $50,000. custom made for apple employees for a one-time giveaway and even include the original rainbow l logo wow. a gift for some sneaker heads out there. all right. back to the markets. wa to watch today on the economic front june core pce and consumer spending out 8:30 eastern and earnings -- excuse me -- awaiting reports from

chevron, exxon/mobil and proctder and gamble all before the opening bell. latest results officially bringing this earnings season right to the halfway point with second quarter expected to be a low point for s&p 500 earnings we better days ahead bob pisani laying out where we stand as investors gear up for busiest quarterly reports coming up in ex-week. >> we are at the half way point for second quarter earnings. mostly good news about 80% of companies so far are beating estimates. a little higher than normal. the second quarter is going to be the trough for earnings for the s&p 500. the quarter's expected to see earnings down about 7% from a year ago, and expected to improve in the third and fourth quarter, and into 2024 the reason the stock market held up so well is that estimates for the second half of the year have remained stable. remember, the stock market's a discounting mechanism for a future stream of dividends and earnings what matters for stock prices, how the estimates for future

earnings are changing and why investors pay more attention to guidance, forward-looking, than to reported results, backward looking's investors are always asking, is the earnings trend up down or sideways? for the s&p 500 overall earnings trend earlier this year has been started higher, estimates, beginning of the year, but coming down. typical. good news that after coming down in the first half of the year, estimates have stopped dropping for the second half of the year. estimates for third quarter have been stable for several months so this is a change in the trend. trend is no longer down. bulls still need earnings to move up. to justify the higher price. but that is not yet a deal breaker. back to you, frank. >> all right bob pisani for more and trading ahead bring in managing partner at evans may well lizzie, great to see you. >> good morning, frank. >> so our bob pisani laid out import, of earnings season

especially guidance. what's your take on earnings for far and what do you expect today? busiest day of the earnings season >> you know, i think going into q2 the street was very pessimistic on earnings, which we saw in q1 and a lot of nice surprises. we're half way through had a lot of nice surprises. so i think that that's going to continue i think we have a couple big reports here this morning. pcs expected to be plus 0.2% month over month so the market certainly pricing in that the fed's not going to raise rates again to the extent that pce comes in hot. could spook the market but not my expectation. >> talking about nice surprises as we're showing futures now moving pretty much highs of the morning. yesterday we got a not so nice surprise at least for the markets boj with its yield curve control plans allowing benchmark ten year to rise had a negative impact on the markets. see that weighing on market

again today? >> hard to say one day over day, the dow, we were hoping to see that longer winning streak on the dow but the dow is, that winning streak is still the greatest winning streak seen since 1987 i think in the short term that trend continues. i think overall if you look at the, the other 493 names in the market, not the magnificent 7, those companies trading still at 17 times earnings. there's opportunity for value expansion, valuation expansion, and those other 493 names throughout the rest of the year. >> okay. if you're looking at the market diversifying and broadening out with that thought in mind, what's your wex word of the day? >> my wex word of the day is hog. might think, what in the world why "hog"? frank, have you heard the old saying that pigs get fed and the hogs get slaughtered

one pearl of wisdom taught by my father about investing years ago is that you never go broke taking a profit. so i think that if you look at the magnificent seven, the big mega cap tech names, microsoft, amazon googles of world, they represent 28% market cap, but the s&p run year to date up 18%. much of that due to the big mega cap tech stocks. i think now's the time to trim some of those positions, take some profits and redeploy the capital and either undervalued or underweight positions in a portfolio. >> with that in mind, i know you advise ultra high net worth individuals and families advising them today to take some of that money off the table? taking money off the table where does the money go? any other moves you would advise your clients to make today >> so, frank, we're constantly rebalancing. for us that means, if you have a position, say that's doubled in

size in a portfolio, it's time to trim that position. for example, nvidia. not to say we don't like nvidia. neg georgia cap tech, strong free cash slow generation, great balance sheets secular tailwinds with ai and like mega cap tech for example, i think trimming nvidia and buying general electric ge there's a lot of opportunity there. >> okay. interesting. ge's one of your plays what else do you expect for the market day ahead mentioned bank of japan decision a lot of earnings coming up. how do you see this day playing out? >> i think we're going to, volatility is here to stay so i think that we could see, you know, given how much the market run up year to date, using volatility to buy as -- companies that e we want to own we see market moving higher. >> great to have you here. thank you again.

we mentioned futures at highs of the morning now seeing nasdaq doing the best out of all indices boosted by intel. that does it for us on "worldwide exchange. "squawk box," up next. meets bold new thinking. ♪♪ at 87 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley.

good morning dow's winning streak good things coming to an end with yesterday's 237-point pullback talk strategy. straight ahead got more earnings still on the docket hearing from chevron, exxon and procter & gamble all in the next hour. plus, don't throw this tea in the harbor. sam adams maker boston beer getting a boost this morning from its twisted tea brand. it is friday

friday let me repeat that friday. >> yeah! >> fri-yea and july 28th. i don't know if that's a yeah. 2023 i don't know if that's a yeah either time's flying. "squawk box" begins right now. good morning bp welcome to "squawk box" here on cnbc. live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. it's a friday. it's the summer. we're already all a little punchy here we go let's look at u.s. equity futures at this hour you see now there are some green arrows and significant advances. nasdaq indicated up by about 132. dow up by 95 the s&p up by 22 again, dow indicated up by almost