it is 5:00 a.m. at cnbc global headquarters. here is the "five@5. stocks trying to close out the week in the green, but one sector of the market is not looking so lucky investors are feeling bullish on the heels of better than expected consumer price data producers, though, on the hook today. just over 100 days into the strike and hollywood writers and studios say they heare ready to get back to the bargaining table. u.bs moves to rid itself of

the taxpayer burden. and later on, why president biden is calling china a ticking time bomb. you are watching "worldwide exchange" here on cnbc it's august 11th, 2023 good morning man welcome to "worldwide exchange." i'm dominic kamalachu. let's look at equity futures we are moving marginally up or down p the s&p is implied lower by two points dow implied higher by 19 the dow, s&p and nasdaq are coming off a higher session on the heels of the upbeat cpi report week to date, it is painting a different picture. look at the dow industrials. north of 1% declines for the

nasdaq technology may be lower for the week, but small caps have it worse with the russell 2000 on pace for the worst week since late june. down 1.75% on the week to date basis. on the bond market, yields on the 4% level are still in focus with regard to the u.s. 10-year treasury right now, it is 4.08% the 2-year treasury is lower at 4.81%. the 30-year treasury is below 4.25% right now. on the energy, oil prices are on the move we are generally higher over the course of the near to medium term we see wti unchanged marginal declines for ice brent crude. national gas up $2.99.

and the july cpi data and investors are looking to the producer price or wholesale index which is out at 8:30 a.m it is expected to come in at 0.2% just .10% is the estimate on the headline and core readings compared to 0.1% reading from last month let's get more insight into the direction of the markets and economy with seema shah and aneqa treon. ladies, thank you for being here seema, we will start with the producer price index data will shed any further light on the inflation picture beyond cpi could it be considered a leading indicator? >> thanks for having me on the ppi is important

we put more focus than previous. the one thing that we'll be looking at here is going to be a deep dive into the component to impact the core cpi and knowing the fed is focused on that generally, the trend over the last couple months is clear. a softening inflation pace we are looking at optimistic hopes of getting to the 2% level. there is a deceleration which the fed is encouraged by. >> if that is the case, anika, if you look at the markets and given the economic data we have seen, things still appear rosy for the most part. we are seeing cooling off in certain parts of the market. are you seeing anything disturbing from the rotation or mini rotation we have been seeing with parts of the equity markets? >> i think the biggest worry sign of the market is two

things one, we have become absolutely obsessed with the short-term monthly inflation print. you know, yes, the print was better than expected, because it was in line with expectations. let's remind ourselves that core cpi north of 4% is significantly above the 2% mark. let's remind ourselves of the fact of the hawkish behavior is going on and the labor market has stayed strong and economy has stayed strong. let's figure out why i think that is one area and the other area is obviously the trickle through effect and transmission of interest rates going up that takes 12 to 18 months to work through we are still not there yet we compare that to equity risk premium in the markets which is narrow, that does raise some alarm bells. >> it does maybe that is one reason why among many factors we are seein

the valuations especially in technology come down the way they are it is not all of technology and tech-related stuff, seema, if you look at the parts out performing, it is still communication services some of the bigger names in that as well. is that something that should be something the bulls can hang their hats on? we are not seeing as much of a decline in some of the media related names out there? >> i think that's the important point. what investors are doing is they are looking at valuations. i think they are admitting the valuations are frothy. the thing with communications and technology given the close relationship with many of them is they are focusing on a.i. and the potential gains will be. the structure forces can be strong until the cyclical gets too much in the way. as anneka is laying out, that means bond yields are coming

down they will not come down too much for a lot of the firms, the growth ones, will be pressured this is probably not the best p t -- best time to add exposure. you should look out and add quality and which companies have pricing power as the economy slows. there is a slant in the way people should focus on how to invest going forward. >> seema, could i follow-up on that with you? where are the most attractive parts in the market right now given that construct you laid out? >> it is a good question from the sector by sector basis, there is little in the way to differentiate between them within each sector, we are trying to dig deeper this is where it becomes important with active management should enable us to look out for where the opportunities set up as i said, it really about quality which is a boundary and which of the companies can

withstand the economic pressure to build up in the coming quarters pricing power is going to be key. inflation is coming down which means companies are not able to hide price increases they have been throwing on to consumers of the -- consumers that is what they should look out for rather sector by sector comparison >> anneka, we will give you the last word here what is the most attractive and unattractive parts of the market given what you are seeing right now? >> i agree with what seema said. we have an investment manifesto. let's look for three things. it is simple strong u.s. come piecetive pos corby -- competitiv expertise. and back management aligned with

strong shareholders. that's the way forward which takes more work. hopefully yields have more return in value. >> it seems like stock picking is the name of the game in the second half. seema shah and anneka treon, thank you. let's get to the corporate stories with pippa stevens >> and supreme court blocks the purdue pharma settlement on hold after the provision that protects the sackler family from liability from lawsuits. the supreme court added in the decision it will hear a challenge to the $6 billion settlement reached back in may just over 100 days into the strike, union representing writers and alliance for the

studios will be back at the bargaining table today in a statement to the members of the writers guild of america, the president of the alliance of motion picture and television producers asked to meet with the negotiating committee. this is the first meeting since august 4th that was not a bargaining session, but a session to talk about talks. and sam bankman-fried is returning to new york city's court today. prosecutors asked a judge to revoke his bail claiming he tried to harass a key witness in his fraud case he has been under house arrest at his parents home in palo alto, california since the extradition from the bahamas so many twitter in the ftx case, dom. >> it is crazy and personalities. thank you, pippa a lot more to come on

"worldwide exchange," and the one word investors have to know today. first, a closer look at the buyback slowdown phenomenon rocking wall street. and set for retail earnings. why falling inflation could actually be a bad thing for the sector's bottom lines. later on, more on the hollywood strikers and what today's talks could mean for fall production schedules. a very busy urho when "worldwide exchange" returns from this commercial break feel the power of osteo bi-flex®. taken every day, it's clinically shown to improve joint comfort in 7 days, with significant improvement over time. ( ♪♪ ) power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools

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welcome back to "worldwide exchange." u.s. futures are searching for direction. dow implied higher by 21 points. let's see how europe is shaping up for that, we turn to joumanna bercetche in the london newsroom with the early action and key headlines in europe. good morning, joumanna >> good morning, dom the hand over from asia was not pretty you see broad based losses ftse 100 trading lower despite the good gdp number. cac 40 is down .80%. the french index for the week is the out performer. the sentiment is negative. let's take you to one stock in particular that is ubs. big jump in the stock price.

up 5% this morning after the company decided to voluntarily remove the loss protection it had with the swiss government and national bank. con ffirming the taxpayers will not bear the risk from the collapse of credit suisse. this is the strong reaction to the stock place. vote of confidence and uk gdp data here with the bounce in the sterling up .30% after gdp growth came in stronger in june with 0.5% rise for the month. much higher than estimates in terms of yields, we see good reaction in the yield curve. we are seeing yields move higher 10-year gilt at 4.45 the curve continues to steepen as the market comes to terms

with the bank of england approaching the end of the hiking cycle, but economy resilient. dom. >> joumanna bercetche in the london newsroom. thank you. earnings season is wrapping up and buybacks are pacing for the slowest quarter in a year as companies pull back on spending. pippa is here with more on that story. >> dom, buybacks are pacing to be down 36% year over year and on track for the weakest quarter since covid in 2020 according to bank of america. 11 sectors slowed repurchase shares since last year with energy companies pulling back the most real estate also seeing a drop the slowdown comes as earnings growth decelerates companies have less cash flow at their disposal the spike in rates means focus is shifting to balance sheet improvement. companies want to pay down debt rather than shoulder higher

costs of t costs. there is cash hoarding taking place due to uncertainties that said, some companies are buying big attech with apple and alphat and microsoft with the most buybacks and followed by chevron and exxon. these are the largest companies, so it makes sense they top the list a different picture emerges if you look at who spent the most of market cap. dxc technology at 8.1% followed by marathon and expedia and discover and marathon. >> now many energy companies have variable dividends. a fixed component they pay and total payout is driven by something they scale from quarter to quarter or half year to half year is that a trend that continues

with the variy of prices? >> it is noticeable if you pull back on that the dividend is the private and raising that is more challenging. that dividend strategy has been prevalent with upstream players. we might see a pullback in that area and tapping the brakes a bit as companies question what will happen with oil prices. of course, they are up in the last month, but a lot of questions remain and around the $80 level companies are doing well flexibility is important whether it is the variable dividend or buyback. >> shareholder returns pippa, thank you ahead on "worldwide exchange," big money movers and why this air taxi stock is flying high ahead of the open bell we are back with the mystery chart after this of the -- after

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welcome back to "worldwide exchange." time for the big money movers. archer aviation flying high. it reaches agreement to make boeing's wisk as it looks to bring the first all electric self-flying air taxi to the u.s.

market archer aviation up 12% and flower foods reports 9% rise in sales due to higher pricing it has a boost in sales with customers beginning to acclimate to higher prices flower foods up 3% right now and we might as well make it three. savers value village shares with a boost after the 4% boost in net sales and 5.5% increase in terms of percent store sales the thrift store stating this is due to a shift in spending trends with value and sustainability amid the surge of popularity for thrifting up 4% pre-market. now to the developing story as thousands of hawaiian

residents and tourists struggle to escape maui as fires continue to sweep across the island the death toll this morning stands at 55 it is expected to grow cnbc's jay gray has more >> reporter: investigators are not sure what sparked the blaze, but it is clear what fed the intense flames drought conditions on the island providing the fuel winds gusting to 85 miles an hour pushing the fire faster than teams can control >> the power went out yesterday at 4:30 or 5:00 a.m. the gas station blew up at 3:00 and since then, we have been trying to out run a fire >> reporter: some forced into the ocean to escape the flames there was no escape for the historic town. >> we drove by from the resort we saw everything was gone we were thankful we made it out

of that. >> what we have seen today has been catastrophic. >> reporter: like many areas across the island, where all that is left is rubble and ash fire storm pushing hundreds to shelters and most with a few things they could carry during their rush to safety. >> local people have lost everything their house, animals and it is devastating. >> reporter: tourists at the core of the island's economy are told to stay away for now. the airport packed with thousands forced to cut vacations short. scrambling to find any flight to get away from the flames >> it is scary to see the wildfire coming your way. not something i experienced. >> reporter: the national guard joining p the fight to make sure the place that many call paradise isn't lost. jay gray, nbc news >> thank you, jay. let's get a check of the other headlines outside of the

world of business. we have nbc's jessica lleyton in new york good morning >> dom, good morning members of the former president trump's legal team and jack smith's team are meeting in court. they will discuss what trump can say publicly about evidence gathered in the investigation of the alleged 2020 election inter interference his attorneys are arguing for a less restrictive order saying it would muzzle the former president. trump has pleaded not guilty to all the charges. fivetained in iran have been transferred to house arrest and may soon be freed. before they can come home, iran will get $6 billion of oil revenue which is restricted to humanitarian needs it could take weeks before the deal is finalized and americans are back on u.s. soil. and dunkin has new brews for coffee loevers to try.

you have to be 21 years old. canned alcoholic coffee and teas they are not on store shelves yet. dunkin teamed up with harpoon brewery after partnering three years ago to bring customers coffee flavored beer cheers >> essica, thank you very much still ahead on the show, virgin success it is sweater weather. mcdonald's and scrapped tesla comes backo tlife in ukraine. we have the latest trending stories when "worldwide exchange" returns after this

it's almost 5:29 a.m. eastern time across the river in had new yore have a lot ahead on "worldwide exchange." we are going for two stocks trying to extend the modest gains on the upbeat cpi report futures are modestly higher right now. investors bracing for a busy week in retail with home depot, walmart and more set to report results. we look at the health of the consumer and inflation story and inconvventory and names on your shopping list. just over 10100 days into t writers strike, looking to get hollywood back online with talks. it is friday, august 11th, 2023. you are watching "worldwide exchange" here on cnbc

welcome back to "worldwide exchange." i'm dominic chu in for frank holland. let's check on u.s. stock futures approaching 5:30 a.m futures are big for the dow jones industrial average the s&p is higher by -- now it is flat. the nasdaq down 11 points implied. a modest open expected here. turning to the earnings story of the retailers set to release numbers. home depot, walmart and target among others reporting on the agenda, next week, as investors look for insight into the stretched consumer and whether the inflation story is finally starting to impact certain spending trends. joining me now is brian nagle. the senior research analyst and

hard lines at oppenheimer. brian, we have been talking about the idea of disinflation and slowing inflation and how it is better for the consumer why is it may not be the same for thebiggest retailers >> good morning, dom that is a big opening. you said we have a number of the really key retail reports coming up here in the next week to answer your question, you know, it is a mixed bag. i don't think the markets have accepted this. on the one positive side, as inflation is subsiding, that's better for the consumer, right less spending pressure because the cost of goods are not going up as fast in some cases, potentially flattening out the negative and i could follow closely names like home depot and tractor supply which is one of my favorite names these companies have been very

good and very skilled at passing along inflation to consumers over the past several quarters to the extent that inflation is subsid subsiding, we don't have deflation or disinflation. that undermine what is has been a very key sales driver for the companies. what you see is evidence of this already with sales growth with the retailers slowing because they are no longer passing along to consumers as much inflation thereoffsets that is better for margins in and of itself, it slows the rate of sales growth for the companies. >> if that sales growth is slowing and you are saying the street is under-appreciating that right now, what are the companies on deck next week that could be surprise to the down s downside or upside

>> i have a colleague that covers walmart and target. i'll let him comment on those names. i cover home depot closely i talk about home depot a lot on cnbc that's a name. again, home depot is a great company, right they manage that business extra oe ordi ordinarily well. the point we're making here, one cross current is this disinflationary trend. what this means is less inflation for home depot to pass on the company talks about this they make great points one of which is innovation the products that home depot sells become more innovative when you buy whatever you buy, it is technologically driven high price point you have the disinflationary trend. that is a negative for sales

growth >> brian nagel, thank you. >> thank you have a good week. let's get a check of the top corporate stories with pippa stevens. >> i'm back, dom california regulators voted to allow self-driving car company owned by gm and waymo to add more cars to san francisco streets and charge passengers for rides at all times the approval of the vote which was delayed twice marks a win for the company to expand statewide and other cities across the u.s president biden calling china a ticking time bomb to the world. biden adding that china's problems are not good because when bad folks have problems, they do bad things biden's comments showing how far the u.s. needs to go to restoring relations with the

world's second largest economy. the cybersecurity panel will investigate microsoft as part of the probe of the risks around cloud computing and breaches by suspected chinese hackers. bloomberg reports the review board will focus the probe on risks to cloud infrastructure and identity and authentication management and look at cloud service providers. dom. >> pippa, thank you very much. now to a developing story. negotiations and striking writers returning to the barge expected to reond to the proposals issues include residuals in streaming and the use of artificial intelligence. the writers strike has gone past 100 days while the actors strike is almost a month old at this point.

let's talk more about all of this with alex, the media and business writer, at d reporter." a alex, how close are we should we expect an impact later on for the fall viewing season and next year's production season as well >> dom, i would not get your hopes up too much. this is the first time the committees are sitting down in over three months. they are still far apart they had a meeting last week to talk about holding this meeting. that said, this is the first step in the right direction. you need to sit down at the table before you come to a deal. for negotiations, the networks will feel it in october. fall slates are impacted by the strikes. they will take a hit on the advertising side of things there will be less product on the broadcast networks in the fall in streaming, some services have

a little more flexibility. they have shows that have been put aside. they will be okay into the spring of next year at some point. if the strikes drag on, they will feel an impact in the spring and summer of 2024. >> alex, we heard stories in the new york media market and l.a. media market and elsewhere about how much of an impact this strike is having not just on the studios and businesses, but on the human beings and actors and wr writers struggling to make rent. when we talk about how far apart people are, thohow far are both sides willing to go before something has to give and something has to happen? >> look, the actors guild said they are ready for a six--month st strike writers guild said the same thing. these strikes are having an impact on the local economies in

new york and los angeles it is not the writers, but production staff and local businesses that rely on the productions to happen. the impact is really serious the studios have been stockpiling shows. prepping for a long strike everyone has dug in here of that being said, i think people want to get a deal done. that is why the writers are coming back to the table today >> what exactly would you expect to see in the coming weeks with regard to which parts of the negotiations will see movement first? is it on residuals or things like the use of someone's name, image and likeness with regard to artificial intelligence down the line what seems to be the place where we could see at least a little bit of daylight between the two? >> one of the things that became a sticking point in the first round of negotiations was

generge generative artificial intelligence that is where the studios are budge witing a little bit they have indicated they will give a new proposal on a.i. and how it is used for writers and presumably when actors, for them as well. that seems to be a sticking point with movement. the tough one is streaming residuals. it is not clear how far the studios can go because the economics of streaming are different from traditional television >> paradigm changer for everybody. alex weperin, thank you. we look forward to the reporting as we approach the fall. thank you. >> thank you. coming up on the show, how a scraedes cpp tlaame becack to lf in ukraine of all places "worldwide exchange" is back after this ch neighbor fl sunday . (josh allen) it's not your best plan. but you know what is? myplan from verizon. switch now

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welcome back to "worldwide exchange." time for the morning call sheet. morgan stanley doubles down on the sell rate for carvana despite the better than expected third quarter outlook. jonas and his team say carvana has a lot to prove if it can sustain progress and momentum. shares up .10% we have deutsche bank boosting on nio to $17 a share with the buy rating deutsche bank says the execution

is improving significantly with new models and ramping up quickly. positioning wise, deutsche bank thinks the stock can capture momentum after a laggard all year long. those nio shares down 2.5% in the pre-market trade time now for the global market briefing. ubs shares rising. the giant says it no longer needs a $10.3 billion backstop by the swiss government. one to help shield the losses after the rescue of credit suisse this comes after the review of the assets of credit suisse and stated the agreement was no longer needed. and chinese banks made far fewer loans than expected. that follows a record amount of lends in the first half of the year -- lending in the first half of the year after they prop

up the recovery. the china economy tipping into deflation amid weak domestic demand. the uk is out with a surprise read on second quarter gdp. our arabile gumede is live on the streets in london with the latest on the economic story arabile. >> reporter: good morning, dom so, indeed, the growth story from the uk is still juice left in the uk economy. 0.5% growth is what we saw for the month of june. it is a lot better than initially anticipated. it was anticipated to be flat for the quarter on quarter basis. it came out at 0.2%. it does mean there is still some spending actually happening across the uk economy. it wasn't driven by the services sector which only inched up 0.2%, but the industrials and manufacturing and production industries manage to get gains

more than 1.5% gains across those industries of helping to push up the economy avoiding recession is the factor here the bank of england and imf believe the uk economy will skip recession, but the question is what happens next year in january? fixed mortgage rates are set to expire soon and with rates where they are, some are set to feel the pinch. resilient economy, yes, but one that is going to struggle when it comes to spending for now, the retail sales figures the last three months continue to help spending and the uk economy avoiding recession and sitting in pretty and positive territory dom. >> arabile gumede, thank you for that check. time for the check on the trending stories pippa is back with those >> dom, let's start with mcdonald's teaming up with palast to

release the line of clothing the meal is a propmotion for disney and features the pop culture references from space jam to seinfeld. a tesla model x has come back online and now sending notifications to the former owner from the southern region of ukraine after it was sold through a car auction. some countries -- the new owners in ukraine are tapping into the former owners still connected spotify app to listen to drake radio play list. and servicvservice virgin t space flight with the first mother/daughter duo.

the 18-year-old and her mother were joined by the 80-year-old olympian to travel to space.c yesterday that he believes commercial space fligh the frequency and cadence we do will not be surprised by that. it is a regular occurrence >> dom, would you go to space? >> i'm trying to figure it out there is no doubt in my mind that space travel will be a regular occurrence the only doubt in my mind is how long it takes to get there you know, you can say let's take flights to space and do them

one-off and take three people up there. it will be years before people take it like a bus or cruise line >> there is the first adopters and people whohave been fascinated by space. i'm not sure average joe wants to go to space myself included. i want to give it time what is the cost i'm not going to pay -- >> $300,000 for a ride to space and come back. >> yeah. >> if i had that disposable income, it might be different. i wasn't a first mover with the iphone and electric vehicles certainly not here. >> i'm not on threads. i'm decades away >> pippa, thank you very much. ahead on the show, the one word that every investor neetod. first, why the newest ev competition for tesla and ford 'rba aerhim.coming from vietna wee ckft ts.

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welcome back to "worldwide exchange." time for the "wex wrap-up. evacuations continue as wildfires sweep through maui the biggest disaster since the 1966 tsunami current death toll is 55 sam bankman-fried is returning to new york city for say court hearing after the judge was asked to revoke the bail after witness tampering. and the iea raised the forecast for the global supplies and moderated the demand due to potential cap for prices within a more balanced oil market. vietnamese maker vinfast will trade on the nasdaq as soon as next week as soon as black spade signed off on the merger.

shares of archer are growing after several lawsuits and teaming up on production and news corp dipping into the red despite the earnings beat with the company expressing confidence in artificial intelligence after digital revenue accounted for half of total revenue for the first time on record. let's take a look at what is happening with the markets with regard to the large cap and midcap if you look at the year-to-date basis, it is the large cap companies and technology companies. s&p up 16% midcap up 10%. russell 2000 up 9% there is a catch-up trade starting to develop. we are seeing a tick lower in the market caps out there. with regard to the near-to-medium term sector rotation and you look at the one-week basis, two sectors in

the s&p have been energy and health care which is up 1.25% and 2% technology is down 2% for the week maybe a bit of rotation to value. remember, three of the stocks which have doubled or better over the course of the year-to-date period with nvidia, meta and tesla on the year-to-date, have seen modest declines on the relative basis as we talk about momentum, let's talk about the out performers. for maore insight, let's bring i jay hatfield from infra cap. jay, there is more chatter these days about the rotation that may be happening going back to value oriented sectors is that something you are seeing as well? >> good morning, dom thanks for having me on. absolutely last time we were on the show,

we talked about and this is before earnings season that we thought the market was way out of balance and short sellers were too negative on financials and reits and economy stocks that is what we saw in earnings where the companies beat expectations some tech companies did not meet the high expectations. you had a broadening out of the market we trade in old economy stocks mostly we think that will continue in the market into the fall where the high flyers will continue to come down and large cap, particularly dividend stocks in tech, are likely to out perform. >> jay, i mentioned two sectors over the week in the s&p is health care and energy specifically are you seeing any kind of activity on your end with regard to your shopping list or what you are seeing flow wise that leads you to believe there is

momentum behind the energy and health care trade? >> right that makes sense because this is not a big secret that the fall is a weak time for the market. even in our dividend etf, we have been rotating out of some of the sectors that did really well and tend to be short in the fall like financials and reits and and adding to energy and health care in this market, energy and defensive and p peeople recogni when energy goes down, tech goes up it is a good place to hide to get through the fall period. >> speaking of places to hide, let's talk about your word of the day. what is it and why >> you know, it sounds super boring our word is rangebound it is important to take that in context. we have been hyper bulls since

the beginning of the year. we have raised our target to 4,500 to 5,000 on the s&p. we are cautious going into the fall if we do hold rangebound, then ironically, that is super bullish and sets us up we mean 4,300 to 4,400 in the s&p. that sets up for a power rally in the fourth quarter if we survive september and october s season with no earnings and random news that tends to be negative >> jay, your favorite part of the market >> right now, we favor preferred stocks a lot converting to float and defensive dividend stocks. we think they will out perform if the market is choppy. >> jay hatfield, thank you. >> thanks, dom. that does it for us here on "worldwide exchange. "squawk box" is coming up next

with markets showing marginal moves at the opening bell. dow implied lower by 22 points "squawk box" is coming up next have a nice weekend. ♪ ♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot.

good morning stocks posting a muted performance after an the cooler than expected consumer price data on the docket, july producer prices. plus, a labor market mystery. trying to figure out a quick with the numbers and steve liesman may have a solution. after 100 days of strike for the writers, they are set to meet it is friday, august 11th, 2023

and "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live on the nasdaq market site in times square i'm andrew ross sorkin here with melissa lee of the. >> i'm happy. >> it is 6:00. u.s. equities down nasdaq down 3 points it is interesting. you are looking at the 10-year treasury it jumped up above 4%. we were under 4 actually on the 2-year, 4.184 >> when you sat here yesterday when wit