it is 5:00 a.m. at cnbc global headquarters, and here's your five at 5:00, the markets they're breaking for a potential spike in volatility as more than $2 trillion in stock options, they are set to expire. this as the major averages extend their losing streak pressured by rising bond yields. also, china's property crisis, it deepens oas the second larget developer files for bankruptcy, a spillover with the chinese and global economy. getting near the checkout line, instacart is reportedly close to

launching its long awaited ipo after delaying that offering several times, and we've heard from major retailers this week, we're talking walmart and target about how their customers are being impacted by inflation while dgas prices are pinching americans' wallets and pushing them to roll back more on spending. and a boost to electronic arts, but is ea the best name in the video game industry, a top analyst weighs in, it is friday, august 18th, 2023, you're watching "worldwide exchange" right here on cnbc. good morning, welcome to "worldwide exchange," i'm frank holland. let's get you ready to start your day as always. b we're going to kick off the hour, red across the board.

the dow 5 points lower. the s&p fractionally lower. t this follows the major averages extending their losing streak. there is the possibility of an increase in volatility today as u.s. stock options contracts with a value of $2.2 trillion are set to expire. if we dig just a bit deeper, take a look right here, the dow closing below its 50-day moving average for the first time since june 1st, and now joins the s&p and the nasdaq in that territory. week-to-date, the dow is down 2.3%, on pace for its worst performance since march. the russell 2000 and dow transports. the main culprit for the woes in stocks, we're talking rising bond yields, the ten-year note hitting 4.328 yesterday. the highest level since last october. today.

benchmark ten-year of 4.24, close to the level of 4.28. we're seeing the two-year ease back a bit from the 5% yield. the rise in bond yields are having a big impact on the housing market. the average rate, excuse me, on 30-year fixed mortgage hitting a 23-year high of 7.37%. we're also looking at the energy market, specifically oil as always. we're going to begin with wti crude just basically at 80 bucks and 50 cents, fractionally higher. basically flat this morning. brent crude at 84.08. bigger move in natural gas, down almost 2%. red arrows in asia and europe today. our soumanna,. >> we are at a nine-month low for the msdi index. that gives color of what happened this week.

3.4% weaker. but today shanghai composite ending down 1%, hang seng down 2%. more than 20% off the highs we got to back in january. if you go deeper, the property sector, obviously the ones leading the declines, the tech sector down about 3.5% to date as well. over in japan, the nikkei on half a percent. we had inflation numbers come in in line with expectations, holding steady at 3.3%. a very challenging couple of trading days for the week. the nikkei down 3.1. in europe, the picture is a prettier, whole of the indices are trading in the red, as you can see. f ftse 100, impacted by bad weather in july, still does tell you that the uk consumer is beginning to pull back a little bit. down 6/10 of a percent. for the weekend as a whole, these indices are down anything between 1 and 2%.

frank. >> thank you very much, we appreciate that. let's tie this together and get a bit of perspective. joining me chief investment officer et cetera, gene golden. thanks for being here. >> good to see you. >> some of the issues in china's property sector weighing on the european markets in the early trade. how do you see it impacting the u.s. markets today? >> i think the u.s. markets will continue their weakness. the u.s. consumer is struggling. you have seen savings rates coming down. you're seeing credit card usage increasing, second of all, the fed, we have the hangover from the meeting minutes. the fed's meeting minutes, higher for longer, it's here for a while. the third point, valuations in the u.s. stock market. we have rising rates. valuations at this level don't make sense with rising rates. this is something we're watching carefully. all of this together creates

intense market volatility, which will continue. >> hitting the valuation plays right now. specifically are you talking about big tech or other areas of the market hit by rising rates where the valuations are having investors scratch their head. >> big tech, obviously given the fact low interest rates are used to price out tech-heavy on a go forward basis. you're seeing this spread out the rest of the market. >> what sectors in particular. is there one sector we should be watching today? >> consumer discretionary, the overhang, looking at industrials. especially with the market volatility, and the news we saw from the one. and i think overall, just really really telecommunications services, big issues there. >> a couple of sectors there. le let's get technical, falling below the 50-day moving average. as we hit a moment ago, on a tech technical basis, 41.38, that's

the next level of support. we're seeing wall street having a tough week. >> we have been saying to our advisers for a long time, market pullback, a potential correction, that can bring us down to the 200-day moving average. that's a good support level for the 138. is it going to drop right away? it could take a little while. the nasdaq composite, the next level is at 12,200. it's another big level to watch carefully from the 200-day moving average. >> you mentioned the fed, rising rates, despite the fed minutes where they made it clear, higher for longer, look at the cme tool this morning, a 90% chance of no hike at all. is wall street fooling itself. are they fighting the fed or do you believe the fed may actually pause? >> i think the meeting minutes, three c's came from the meeting minutes. caution from the fed. they may raise rates to address inflation. the fed is confused. they said inflation is high.

they also said at the same time that rates are very restrictive z the third thing is they're confirming confirmation, the third seat, they're focusing on data. take all of this together. this is what scared the market. retail sales. our rev going forward is this, the fed is pausing, the fed is done for the rest of the year, pausing, higher for longer, because inflation is still high. not another target but services inflation extremely elevated and you take all of this together, and you have this uncertainty that the fed needs to stay higher for longer. >> gene goldman, great to have you in studio. we'll talk soon. >> time for a check on the top corporate stories. we have silvana henao with those. >> a list of underwriters for the chip makers offering is expected next month. goldman sachs, jpmorgan, will

split these evenly as the lead underwriters, assisted by 28 banks in total seeking a valuation for the offering of between 60 and $70 billion. instacart is reportedly planning to launch the long awaited ipo next week with a filing next week. the company is opting for a traditional listing on the nasdaq. instacart confidently filed last year, but delayed the offering in october due to poor market conditions, and the company slashed its internal valuation by nearly half to around $13 billion. and shares of applied materials rising this morning, up about 3 1/2% after the chip equipment makers third quarter revenue and profit beat estimates, aimed at also offering strong fourth quarter guidance, citing strong demand from chip makers setting up new production hubs.

applied materials has benefits from subsidies, along with china's push to stock up on tools for making chips in the wake of u.s. exports, frank. >> applied materials shares up 3 1/2% right now. silvana henao, thank you very much, we'll see you letter in the show. >> a lot more to come on worldwide exchange, including the one word investors have to note today. and it was once one of china's largest property developer, and ever grand is seeking protection from a mounting list of u.s. creditors. will this cast a dark cloud over the chinese economy. as if shoppers, they don't have enough to worry about with paying higher and higher prices at stores, gas prices has grabbed the attention of consumers and top retail executives, and the massively popular madden video game, that goes on sale today. it has raked in $4 million over

its history but has that translated to significant gains of the arts. when "worldwide exchange" returns. and they'll give you nfl sunday ticket from youtubetv, on them. (hero fan) this plan is amazing! (josh allen) another amazing plan, backing away from here very slowly. (fan #1) that was josh allen. (fan #2) mmhm. (vo) for a limited time get nfl sunday ticket from youtubetv on us. a $449 value. plus, get a free samsung galaxy z flip5. only on verizon. my name is caron and i'm from brooklyn. i work for the city of new york as a police administrator. i oversee approximately 20 people and my memory just has to be sharp. i always hear people say, you know, when you get older, you know, people lose memory. i didn't want to be that person. i decided to give prevagen a try. my memory became much sharper. i remembered more! i've been taking prevagen for four years now.

prevagen. at stores everywhere without a prescription.

exchange," exchange," hang seng, the hardest hit, down more than 2%. the hang seng on track for the biggest weekly loss in two months, as investors and traders

await concrete stimulus measures from the government to try to support the embattled real estate sector. our eunice yoon joins us. >> reporter: the property giant has $3$332 million in liabiliti. the move it did in u.s. court was not a bankruptcy application. this is a technical move and part of the overseas debt reduction plan. it's filed for a chapter 15 protection in manhattan, which states that non-u.s. companies undergoing a restructuring can be protected from creditors looking to sue them or tie up their u.s. assets. so evergrande is arguing again that it is holding restructuring talks in places like hong kong, the british virgin islands, as well as the cayman islands and

that should be recognize instead a restructuring hearing on september 20th. this move comes as evergrande's domestic unit has confirmed that it is under investigation by chinese authorities for a, quote, breach of disclosure rules. that unit didn't clarify much more, however, local media has been reporting that that could be suspected data manipulation and that adding further to the gloom, the mid-sized commercial developer, soho china which was once a target of black stone has said that its profits fell 93% in the first half of the year, due to the uncertainty, and it's a second half of the year to also be undermined by, they said, material uncertainty. >> yeah, eunice, uncertainty seems to be the word when it comes to the chinese property sector, and chinese equities in general right now. are there concerns we're going

to see greater pushback from home buyers and chinese investors because of all of this uncertainty? >> yeah, we already have, as we have been talking about investors have been coming to not only to the financial regulators' office here in beijing, but also to a trust firm where they have said that they haven't seen payments, which they are expecting and hoping to see. we managed to speak to some of those investors and they said that they have been discouraged by local authorities in their home towns, even far away from beijing, not to come to the capital because the authorities here don't want to have that look of investors potentially protesting. >> our eunice yoon live in beijing, great reporting as always. let's get more insight into what this means for chinese, the u.s. with shi shad kazi at the china beige book international.

good morning, thanks for being here. >> good morning. >> great to have you here to talk this out. chinese equities in general, just to be clear evergrande saying it's not filing for bankruptcy, it's restructuring. give us the 10,000 foot view of what's going on in china? is it a crisis, and how big is the stimulus possibly that's coming, how big do you think it could be? >> frank, what's happening in china right now is a recovery that's absolutely disappointed all expectations. china is not collapses, but the climb back from the deep economic hole the country was in due to the last couple of years has been so poor that markets seem to have given up all hope on an organic recovery and looking for beijing to announce a big stimulus rollout. that's where i have to caution investors, news flash, you're not going to get a big stimulus coming out of chinese authorities. what we are going to continue to

see are very targeted measures to help the property market, and monetary policy easing has already been happening but it's going to be much more fine tuned and narrow. >> the news flash, no big stomach lsu -- stimulus coming, does that mean no stimulus? >> no giant package at all. the type we have been trained on to look for in china. we're not getting the big development projects. >> some stimulus then. what areas do you expect to see some stimulus in? >> first of all, i think there have been monetary policies and stimulus in china. the real problem, frank, is that companies have been basically uninterested in borrowing despite the fact that borrowing costs have been falling for the last several months. i foresee particularly that type of easing taking place. i think much more accommodative policies in the property sector, to encourage people to finally

get back into the market and buy homes, easing on mortgages, easing on homes, and that sort of thing, expanding that out to more cities. >> i think the next natural question is about contagion, is there any rest of con teetagion the u.s. markets and global economy? >> i don't think so, look, foreign investors have known that the exposure they have in the chinese property market writ large is under severe amounts of risk. you have known this for the last couple of years. i don't foresee contagion within china, and i don't see contagion where we think again, in crisis contacts, foreign investors are going to be the absolute last people that will ever get paid if they get paid at all when it comes to the chinese developers who are struggling to repay their debts. >> we're looking at chinese tech stocks, alibaba down 3 1/2%, jd.com down 5%.

i want to talk about the biden executive order, something you have written about. what impact do you see that having on china and also on this interesting relationship between china and europe where europe seems to be trying to get closer to china as we seem to be derisking or decoupling, depending on how you look at it. >> the executive order, what it's done is created a notification mechanism rather than a restriction mechanism, which initially it was supposed to be. i think the impact is going to be very minimal. it's already riddled with a lot of loopholes and over the next year i think a lot of the rules around the restrictions part of it will be further diluted. i don't think markets need to overreact or be too concerned about the executive order. quite frankly, i think it's a win for industry, and no need to panic. >> shehzad, thank you very much, appreciate your insight. will it be a touchdown for

electronic arts investors? we have a closer look at gaming stocks straight ahead. much more "worldwide exchange" coming up after this break.

welcome back to "worldwide exchange," it's back and better than ever. madden 24, one of my favorite games. electronic arts says this year the game has more control and more realism through its field tense technology.

the company says the goal here is to blur i lines between the video game and a real football game as more gaming companies turn to artificial intelligence and virtual reality to really elevate the gaming experience. let's talking more about what this means for gaming stocks with andrew merrick, vice president at raymond james, andrew, good morning, great to have you here. >> great to be here, thank you. >> we're talking about madden 24, as i mentioned, i play this game, really enjoy it. very popular title for ea. big day for the company but what does it mean for the investors, does this give a boost to the stock? >> the nice thing about the sports games from an investors perspective is they tend to be quite consistent. unit sales tend to fall within a pretty defined range, mostly every year, and that's for fifa, or ea sports fc as it's now called, madden, nhl and the rest of the sports portfolio. where you really get some of the growth out of these game launches and these stocks eventually is the in-game spend

opportunities that you can get, especially in madden where you're collecting player cards, for players who you can use in your online matches and ea always coming up with new and innovative ways to get people to spend in game, which i think is where investors are really focused at this point. >> speaking of investors, you have been watching the basket of video game stocks. they're under performing the s&p over last year, and looking at alternative data and twitch. that's the social media site where you watch other people play video games. i never quite understood that, but what trends are you seeing when it comes to engagement, major publishers, we're august about ea, activision blizzard. >> we have seen twitch engagement soften since the heights of the pandemic, and that's even still coming down slightly year over year. however, when we actually get the actual results from the video gaming publishers, engagement tends to be quite strong. what that's saying to us is there's still quite a lot of

interest in video games, and more interest in video games now than there was prior to the pandemic whereas people used to engage passively through watching other people play, and actively, now people are spending their time maybe in different ways, and choosing more of the active engagement, playing the games themselves, rather than passive. passive holds up well, and it's one of the key ways in which publishers and streams reach audiences. >> we're showing the audience a graphic, a $385 billion industry when we talk gaming now. it's not just child's play, we think of it as kids or people in their basement playing but it's big business. microsoft's goal to acquire activision blizzard, $58 billion deal, it looks like it might go through. what does that mean for the broader industry and some of the other companies in the space that have microsoft purchase one of these big publishers. >> as you mentioned, it's our

view at raymond james here that we believe that this acquisition is now likely to close, not that the uk is taking a more accommodative stance to the deal, and what it means to the rest of the space is now you start to see those big numbers start to be attractive to big tech companies, big media companies, anybody who has ipe or wants exposure to the video gaming landscape, those other companies, other independent players in the space, do start to look interesting because they are driving real results and have real products behind them. >> we were talking about video games, the publishers, and their lag in the market overall. some other names that are really winning, some names we don't really talk about. give us the sense of the video game stocks that are successful right now or at least their stock prices are successful. what do they have in common? is there something different from an ea or take two? >> in the past couple of years,

a lot of stocks have traded on some of the dynamics around the pandemic. a lot more exogenous factors. we're starting to return to more of a normalization on things like engagement trends, things like the performance of a release when it actually hits mark, and so given that, now we start to look at forward pipelines for companies and how they might be interesting for the stocks. ea and take two kind of have both pointed investors not towards this year so much but toward next year. both companies expect to step up in bookings, in take 2's case, a substantial step up in books. as we spoke about ea sports fc, madden, quite consistent releases, with growth in the live services component. take two tends to be a little bit farther down the road with a signal of a major step up in bookings next year, you know, people are kind of reading between the lines on that, that

it could be a grand theft auto release. >> andrew marok, thank you so much. >> thank you. on "worldwide exchange" mixed signals with major retailers out with strong earnings this week. the guidance that's spooking investors, we take a deeper look up next, and if you haven't all right, follow our podcast,n pl sti a oape,pofynd other podct apps. much more "worldwide exchange" coming up after this.

wow, you get to watch all your favorite stuff. it's to die for. and it's all right here.

streaming was never this easy, you know. this is the way. you really went all out didn't you? um, it's called commitment. could you turn down the volume? here, you can try. get way more into what your into when you stream on the xfinity 10g network.

it is around 5:30 a.m. in the new york city area. there's a lot more ahead in "worldwide exchange." here's what's on deck, stocks limping into the end of the week on a three-day losing streak. futures are under pressure, as earnings season draws to a close, what have we learned about retail and the consumer, and creeping up, how much will rising gas prices put a strain on those consumers. it is august, friday, august 18th. i had to think about it. you're watching "worldwide exchange" right here on cnbc. ♪ welcome back, i'm frank holland. let's get ryou ready to start your day. u.s. stock futures under pressure at this hour, the s&p and nasdaq down fractionally, the dow looks like it would open up 70 points lower at this hour. we're looking at the bond market after the benchmark ten-year hit its highest level since october.

we're looking at the bond yield at 4.23, at the ten-year, the two-year note declining a bit from what we saw yesterday, pulling back from hitting a 5% yield. it was close yesterday. rising bond yields, they have been pressuring the biggest of the big. mega cap tech stocks. meta has fallen into correction, the fifth of the so-called magnificent seven have fallen into that territory, down 10% from the highs in the premarket, down 3/4 of 1%. amazon and alphabet are above that, while tesla, the ev maker in bear market territory, down 20% from its high. we want to check on bitcoin after it dropped more than 8% late afternoon. taking a look at bitcoin right now down 5%. week-to-date, down 10%. silvana henao is here with top stories. >> goldman sachs reportedly

hiring several hundred new employees, amid fresh regulatory scrutiny from the federal reserve. it's unclear which areas of the bank the fed is probing. bloomberg says goldman has been facing increased pressure from the fed with the bank's operations and procedures potentially at risk if goldman does not comply. the hiring spree follows a significant reduction to head count made by goldman last year. major texas grid operator, electric reliability council of texas says it's activated its emergency system after increased power usage due to the heat wave caused electricity reserves to fall below the critical 3,000 megawatts level. the operator which oversees the grid for 26 million customers and nearly 90% of the state's power load expects power usage to hit a new record high today as extreme weather continues to weigh on the state. and shares of luxury fashion company farfetch are plunging

following a lower than expected seams number in the second quarter and a wider earnings loss. the company says t growing and becoming more efficient as it executes on key strategic priorities and continues to adapt to the challenging macro environment over the last 18 months, frank. >> silvana, thank you very much, shares down more than 37%. shares of target, walmart and home depot, on track to close out the week in the red after reporting earnings over the past few days. while their results were generally positive, it's the guidance, investors are keeping a close eye on. more retailers have been warning about the resiliency of consumers, rising interest rates and the resumption of federal student loan payments this fall. for more on the key take aways from retails big week and what it means for the consumer and inflation, i'm joined bejerome, and john kilda founding partner at again capital and a cnbc contributor. good morning to both of you. >> good morning, frank.

>> let's talk about retails week. according to your research, 75% of the companies beat expectations. that sounds positive but yet we're ringing our hands and keeping a close eye on retail because of the guidance. where are we at because of the retail sector? >> absolutely. about 88 companies, which is over half of the companies that have reported earnings mentioned during their call inflation is a big problem. as a result, we received more negative guidance for the third quarter than we traditionally have for the first and second quarter of this year, so more retailers are reminding us not to expect too much from them. but traditionally we see a slow down in the third quarter because of the holiday season, and back-to-school season is off to a great start, which has correlation with the holiday season, and is in line did the data, suggesting the consumer will pick up the fourth quarter. >> rising gas prices, i'll talk to john about that in a minute, rising rates, and we didn't mention it right now, but credit card debt, over $1 trillion at a

record high. where is the consumer at today, are they stretched or putting on their card and willing to spend even more? >> they're willing to spend more. we're seeing signs that things might be going back to normal. >> what's normal, though? >> right. so we just saw the government report strong july u.s. retail sales. that was all promotional driven. the average discount level went to the highest we have seen this year, which is the same level we saw in 2019 and 2018. also, we saw walmart for the first time saying that consumers are buying big ticket items and we saw the consumers finally splurge on apparel, which we haven't seen in a while. we saw ross and tjs smash the earnings expectations, this is the first glimpse that we actually might be going back to the way things were in 2019. >> so you said apparel, not sweat pants, return to the office, is that one of the possible tail wind for the retail sector? >> the strong sales at you will that tells us that the consumer is all about the reopening, and

wants to look good, so yes, sweat pants are strong. lieu . >> great to have you here as well, john. i want to talk gras prices. wholesale gasoline prices, not the price at the pump, but you have seen that go up 10% over the last three months. is that meaningful when we're talking to consumers, that kind of rise? >> nobody likes it. there's nothing more in the consumer's face than gasoline price, and thankfully there's cut throat competition at the retail end of things, but not yet. at around where we are, just below $4 a gallon for most people, you show those crazy prices out west where they're having all kinds of different issues but as long as we stay below $4, the consumer will hold up and you'll see the great amount of spending that was just referenced here. once it goes above 4, it starts

to register with folks, the suv costs $180 to fill up, and tast dr -- it's a drain, a tax on the consumer. hits consumer confidence, and it's sort of the first brick in the road towards potential recession because of consumer spending, you know, react to go that higher gasoline price. >> we're showing the map. retail price, regular unleaded, the average 3.88. the red part of the map, above the $4 mark you were talking about. last year, june of last year, we saw gas prices hit a record high. what trends did we see last year that might give us insight into this year, if we continue to see gas prices go up. >> last year was different. retailers were dealing with the supply issue and had to move a lot of maryland, and we saw a lot of discounting, we're seeing that, yes, retailers are managing the inventory better, and you're seeing that more companies are beating earnings estimates, as opposed to missing. it's a different situation. i'm in agreement, as of right

now, the gas prices are not having much of an effect, at least with consumer spending. it's more of a psychological effect. >> what about rising diesel prices, what's that doing to just generally the market? how does that impact the market when we see diesel go up? 75% of everything we see in stores and industrial goods, they're moved around by a truck that moves diesel generally? >> that's where the inflation problem then bleeds into the rest of the sector. you see it first in the produce aisle because obviously, you're constantly refreshing the stocks there, but then the rest of the supermarket and the rest of retail. the profit margins start to get pinched because of the surcharges that get tacked on by shippers as stuff gets brought to the store, and so that's going to be, then, the problem for the fed. that's going to feed into this narrative about higher for longer, in terms of interest rates. the fed is going to have greater

inflation on its hands. this is coming to us courtesy of saudi arabia. you leaned into the market, reducing production, reducing exports, trying to drive the price up, because they claim the markets at a balance, it's not. but it's out of balance for them because the price isn't high enough for them. >> give us a sense very quickly, what's your outlook? are we going to see diesel price g s go back or close to the record we saw last year. if we see that happen, can it happen with china having a soft economy and a lot of issues? >> i don't think it's a lock that it's going to go up. there's plenty of up side fears and downside reality as well. the china situation is bad. u.s. exports of crude oil are facing $5 billion a day on a regular basis. that's a problem for the saudis. i don't think it's a lock at all, and i think that we're going to hang in there. it's not going to explode to the up side. >> inot explode to the up side but definitely moving higher. how does this impact back-to-school shopping and the

holiday season as you mentioned. retailers already giving soft guidance. >> it's going to help everybody gravitate towards those membership clubs. we have seen this in the past. they go to costco, sam's club because they want to save money at the pump. inflation is the reason while all the consumers gravitate toward walmart in the second quarter, why consumers are trading, they don't want to pay the high prices. >> does it hit the holiday season? back-to-school hopping is hard not to spend. they need backpacks, computers. >> the holiday season, consumers will be spending, services are still stronger than goods, but yes, as of right now, outside is projecting a healthy holiday season. >> so growth year over year? >> yes, earnings are expected to grow double digits. we're seeing about a 19% growth in earnings for the second quarter, and that's projected to maintain into the holiday season. >> a lot to watch there. great to have you both here, thank you very much for your time and insight. >> thank you, good to be here. that's a look at consumers

here. shoppers in the uk staying away from the high street. we'll tell you why coming up next, and why one major bank thinkses's tla latest moves could be too little, too late. we will explain. stay with us.

ticme for your morning call. morgan stanley, the firm reiterating its equal weight rating on the auto maker. morgan stanley saying the move

could be too little, too late, raising questions about excess supply and demand. shares of tesla down 2%. wells fargo upgrading, hawaiian electric to equal weight with a price of $8. ana analysts saying the utility company is sharing, hawaiian electric, shares down 1 3/4%. time for your global briefing, we begin with retail sales in the uk falling more sharply than expected last month. heavy rain, stubborn inflation and higher interest rates are being blamed. in japan, core consumer prices eased in july on a year over year basis. it did pick up a little scheme month over mon, and remains at levels not seen in 40 years. real estate giant, evergrande says it is restructuring its debt and says it does not

involve a bankruptcy petition despite reports. the default in 2021 was the spark for china's deepening property crisis. on "worldwide exchange," we have the one word every investor needs to know today and why our next guest says the worst part of the year for stocks might create opportunities for investors. follow our podcast, check us out on apple, spotify and other apps. much more "worldwide exchange" coming up after this.

my cpa told me i wouldn't qualify for the erc tax refund, so i called innovation refunds. their team of independent tax attorneys will work with your cpa to determine if your company is eligible. [whip sound] take the first step to see if your small business qualifies.

and welcome back to "worldwide exchange," taking a look around the world right now. the sun's still coming up or waiting to come up in the new york city area. in london, a bit rainy. we talked about retail sales falling sharply. heavy rain in london, one of the factors there. hong kong, the trading day come to go an end. again, the sun still waiting to come up right now, just the beginning of the day. time now for your wrap up. we begin with chip maker arm, reportedly with a list of

underwriters, jpmorgan, barkleys and mizuho splitting sharings. echoing results from off price retailers. the company says cost conscious are on the shop for bargains. and the chip equipment maker beat on earnings and posted strong fourth quarter guidance due to strong demand from chip makers setting up new production facilities. instacart is reportedly planning to launch its long awaited ipo next month with an official filing expected as soon as this week. the grocery delivery service is expected to choose a traditional listing on the nasdaq. and meta shares are lower after officially dipping into correction territory with shares falling more than 10% from the rec recent 52-week high. in correction, we're talking apple, microsoft, and tesla, all in correction. all right, the major indices on pace for a losing week with the averages all down more than 2%. joining me now with a look at

strategy heading into the last trading day of this week, tiffany mcghee, pivotal adviser, the ceo, cio and cnbc contributor. it's always great to see you. >> good morning, frank. >> we're talking about the futures in the red, futures in the red over in europe as well. some of the pressure from some of the issues in the chinese property sector, do you expect that to continue to spill over into the u.s. and concern investors here? >> yeah, listen, you know, we're in the home stretch of august, and you know, you open the show with all of these, you know, these potential items that will affect the market, and we're anticipating more volatility today. i do expect that to continue with the ultimate, you know, impact, the ultimate thing impacting the markets being the fed, right, but, you know, i think it's really important to note that september is traditionally the worst performing month of the year for the past 22 years. it's been that way, 12 of those

months, september has been negative. now is a good time as we sort of head into thinking about next week to look at your portfolio, see where you need to rebalance, and kind of prepare yourself for potential opportunities in cement. september. >> what about right now, big mega cap stocks taking quite a dip over the last week or so. would you buy the dip on these companies right now or do you think there's more downside pain? >> it really depends on the company. you know, so, again, when the market's down, it's usually a good time to buy your high conviction names, so it really depends on the company. we don't want to kind of paint our buy strategy with one broad brush. you know, i always when i'm on the show, kind of talk about our formula at pivotal, in terms of how we buy stocks. it's really about quality. it's about strong balance sheets. and it really is about compe competitive modes. i think investors should think about what their buy strategy

is, and kind of identify individual high conviction names. >> with that all in mind, what's your wex word of the day? >> cautiously optimistic, that's two words, i know, but again we're experiencing volatility, i expect that to continue, including potentially into september, but the good news is, you know, for the rest of the year, the fourth quarter is traditionally, the highest performing quarter, but again, really pay attention to those names that you have a lot of confidence in, and buy those on the dip. >> so you're sneaking in a phrase. a lot of people have been sneaking in phrases recently. with that in mind, you're cautiously optimistic, but give us a sense of the plays you would actually make today, even with that optimism and caution in mind. you gave us a list of some of them. i want to start with one of them, an ai play, hub spot, why are you bullish on names, seems like a name that might be deeply

impacted by the high rates and had a huge run up to date? >> it's up over 75% year to date, and again, you know, just a bit of a reminder, at our firm, our clients are institutions so we are managing money for foundations and endowments, and it's over multiple lifetimes, in perpetuity. we're less of traders and more of long-term investors. hub scott, it's done extremely well this year, but, you know, when we think about their kind of competitive mote and business model, there's a growing need for crm systems, right, at a reasonable price, contrasted to like a salesforce, which is a bit more expensive. hubspot offers a little bit more and caters to that smaller market. and that's really where things are going right now. it's definitely more user friendly. they actually have like really low market share, which we believe kind of sets them up for a significant potential for runway growth. >> you're also hitting one of

our themes, retails. you have a pick in the retail space, lululemon, why would you buy this stock today? it's had a strong run up year to date, and in general, considered a higher end luxury brand when it comes to sports apparel, when we're seeing the consumer is a bit stretched. >> yeah, and so you actually bring up a good point. the consumer is a bit stretched, and remember, this year, that excess covid savings is going to run out, and also student loan repayment is going to come back. lulu has really carved themselves a really nice spot in the market. they have this cult following, right, so for consumers of lulu, lulu is no longer a nice to have, it's a must have. those aligned pants that i have on actually right now are amazing. and they are excellent at listening to their customers and meeting their customers' needs. not lulu necessarily just today, but in perpetuity, right, so

this is a company that we really like long-term, and if it does take a dip today or monday going into next week, i think it's a good opportunity to buy. >> tiffany mcghee, thank you as always. love those picks. >> thanks, frank. under pressure this morning, right now, the dow would open up about 40 points lower at this hour. the s&p and nasdaq fractionally lower. we're taking a look at treasuries, the ten-year, the benchmark hit the highest level since october yesterday. just a few basis points at that level at 4.22%. we're seeing the two-year note ease back from the five-year yield at 4.91%. european markets hit hard by some of that chinese property issues with ever grande saying they're not filing for bankruptcy but restructuring. the ftse 100, and closing in correction territory down 2%, the shanghai composite down 1%.

that's good to do it for "worldwide exchange." we've got "squawk box" coming up next. have a great weekend. nice footwork. man, you're lucky, watching live sports never used to be this easy. now you can stream all your games like it's nothing. yes! that's what i'm talking about. [ cheers ] running up and down that field looks tough.

it's a pitch. get way more into what you're into when you stream on the xfinity 10g network.

stock futures pointing to a pull back in crypto prices. bizarre yesterday, fell off a cliff, down sharply. the hang seng closed in bear market territory. a tough week for the dow. and yesterday ugly. fine all day long. toward the end, down almost 300. nine years after star board won a heated proxy battle with olive garden's parent company, it's taking a new stake in outback

steak house. blooming brands, you know why it's called blooming brands. >> blooming onion. >> we'll tell you why the timing of the release is raising questions this friday, august 18th, 2023, and "squawk box" begins right now. ♪ good morning, and welcome to "squawk box" here on cnbc live from the nasdaq market site in time square, i'm melissa lee along with joe kernen. and becky and andrew are off. >> if it was a thursday and you had two days ago, would you come back. >> i would come back if they tell me to come back. >> oh, you would. >> oh, yeah. >> but would you be happy. >> always happy to be here