"five@5." dc makes the invisible hand look more like an iron fist. shares of macy's and dick's trying to bounce back after historic losses. and artificial intelligence and how it affects demands in chips. we're going to dig into the metrics that you need to watch. and the rate strock and a

very busy morning for real estate. our diana olick is here breaking it all down. and david solomon under fire again, this time over canceling summer fridays at the firm. it's august 2, 2023. you're watching "worldwide exchange" right here on cnbc. good morning, welcome to "worldwide exchange." i'm frank holland. we'll kick off the hour with a check on u.s. stock futures. after a mixed day, we saw the nasdaq rise for a second straight day. right now we're seeing the nasdaq continue with a momentum up three-quarters of a percent. the s&p also higher at this hour. one area of concern this morning, that remains retail. with the xrttef coming off its worst day following historic losses at dick's sporting goods

and macy's. we're also checking the bond market. right now at 4.2, we've seen the 2-year note. wti right now back below 80 bucks a barrel. brent crude, similar story at 83.60. now let's get a check on this morning's top stories. silvana henao. good morning. >> good morning. ftc is expected to announce a probe of qualcomm. . according to "politico," it's expected to be unveiled as soon as today and follow a similar investigation by european regulators. a autotalks technology also known as vehicle-to-everything

communication. u.p.s. workers ratifying a massive new five-year labor deal that include big wage increases and improvements to work schedules. according to the international brotherhood of teamsters, the contract passed with more than an 86%. that's the highest in the company's history. this preliminary deal reached last month to help avoid what could have been a crippling strike to u.p.s. and the entire u.s. economy. goldman sachs is cracking down on so-called summer fridays. according to multiple reports, the investment bank is making a renewed push to enforce its five-day, in-office policy despite pushback. in a statement goldman says, quote, while there is flexibility when needed, we are simply reminding our employees of our existing policy. citi and jpmorgan chase,

meantime, have been working to enforce their three days in office policies, frank. >> it's a thing. >> yeah. >> you and i, we're going to be here all week. >> we're here all week. turning back to the broader markets which have been struggling during the dog days of august, the s&p 500 serves nearly 20% in the first seven months of the year, but it's down 4. 4% so far this month. all 11 s&p sectors also in the red this month. the last time that happeneding that was all the way back in december. let's get more insight and welcome in gina sanchez as well as vance howard of howard capital management, ceo. good morning to both of you. >> good morning. >> we're just laying out some of august. august known for less volume, less liquidity. the u.s. credit rating downgrade and the anticipation of jackson holm what do you both think?

ginain gina, i'm going to start with you. do you see this continue from this past friday into september? >> i think all eyes will be on jackson hole. where we are right now, we've seen so much positive pricing in the market. so valuations have been stretched through the market. not terribly overvalued, but in some cases probably. so we're seeing some of that coming off. we're seeing the slowdown start to take effect. people are tightening the pursestrings. the question is what does jerome powell do now? does he take a victory lap? i don't think he will. does he set us up for another tightening or does he simply kmoun indicate the message that interest rates are going to stay higher for longer? that's where i think he's going to land, the higher for longer case. if that's going to happen, the

softer markets are going to continue to unravel to a softer place so that it works with current interest rates. >> i mean, vance, same question. you're 95% invested in the market. how do you see the next few days playing out and beyond? >> i think it's going to be incredibly sloppy. i think nvidia's earnings today is probably the most anticipated earnings release we've seen in a long time. i think that's going to cause a lot of volatility. i think on a short-term trade, if you want something very interesting, look at tlt, the 20-year treasuries. if powell comes out with anything dovish, i think you'll get a really good spike in that trade. >> you're looking at bonds. you're so deeply involved in the bonds, i want to pull on that string. gina, aisle turn to you. how much do you think there will be a turn in the direction of the market? so much is tied to this ai trade. >> yeah.

nvidia is the bellwether right now for the trade, and there are reasons that they could be very robust. we have seen real demand in the data centers off of generative ai, but you've also seen, you know, some slowdown and some inventories piling up because gaming is not as strong as it was. and so you have a push and a pull on nvidia. what happens in their earnings could actually determine what happens to some of the highest valued stocks in the market. >> all right. vance, i want to come back over to you. one of the things we're looking at is downgrades. how do you see that continuing to impact the market? we've continued to worry about credit tightness as well. >> you have to worry about it. if powell goes too fast, too far, look at what happened to three banks. he threw them into bankruptcy. look at car loans. they're defaulting at a much higher rate than anybody anticipated. used car sales are dropping.

to get a loan on a used car right now is 13.7%. that's pretty high. you're going to see a slowdown. this organic move of interest rates being so high is going to really slow things down. you look at mortgage rates over 7%. i think powell should sit on his hands and be patient here. i think he does more harm than good if he comes out with a hawkish statement from jackson hole. i think he's done raising rates. >> gina, same question to you. vance is focused on jackson hole. you mentioned it a few minutes ago. is that an inflection point for the market at this point. do you agree with vance that it's already baked in? >> it's too far. it's not too fast. we've been at this for a while. what you're seeing in the banking sector is not a slowdown in spending but lending.

they drive up interest rates. they dampen demand. it is working. and so i think there is a concern certainly from -- i share the concern that if powell comes out even more hawkish than he already is, that we run the risk of having a real policy mistake and putting us into a deeper recession or even just a recession. right now we're priced in for a modest slowdown. anything more than that, we're going to feel the pain in the banking sector. >> vance, you have the last word. one is the sofx. would you put money in today ahead of the report? >> we're bullish. i think is semiconductor index is one of the best places to add money to. i think there's a lot of opportunity. august is a sloppy bull market month.

we'll get through it, we'll get through jackson hole, and earnings h go higher. >> it's been a difficult month. gina, vance, great to see both of you. thank you for your time and your insight. a lot more to come on "worldwide exchange," including the one word that investors have to know today. fifth we're watching microsoft as it tries to appeal to some of the harshest regulators. today's results, are they enough to keep it to a prestigious $1 million club. later, talking buying low, the winner and loser that has cathie wood snapping up shares. we have a busy hour ahead when "worldwide exchange" returns. >> announcer: this cnbc program is sponsored by ibm. ibm. let's create. ll, what if you par with ibm and red hat, use a hybrid cloud solution to connect data across clouds, then analyze all that data with watson. okay, but this needs to meet our...

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the dow looks luke it would open at 140 points higher. the nasdaq up three-quarters of a percent. we'll talk about this more in the show. our joumanna bercetche live in our london newsroom with much more on the early action overseas. yojoumanna joumanna, good morning. >> good morning, frank. you can see the shanghai composite in china was in the red at the close. that's concerns about the economic situation. the real estate sector continued

to weigh down on the index. at odds with the hang seng, seeing a bit of a bounce. 0.3%. the nikkei in japan seeing a bit of a rebound, up half a percent after posting slightly better expectations for the month of july. hecht's switch over and take a look at the european intee cease because here, despite some of the strength coming through on these indices, we're actually digesting these very, very disappointing pmi numbers. just to give you an idea in the ukking we're now sitting at the lowest level since january 2021. the number came in at 27.9 versus 58.8 reading we had back in july, and analysts are saying this implies the uk economy is pointing toward a contraction over the next couple of months in the year. that's something to watch out for that. despite that, we're seeing some basics bounce.

germany, similar to cac. sitting at a 30-month low coming in at 47 versus 48.6 in july even though the manufacturing sector has improved somewhat. the state of the european economy is quite subdued and if anything is going back into recession territory, all these things, we'll be watching out very closely and also not shown here is the bonds have rallied at about 10 basis points. >> rising bond yields here in the u.s. as well. joumanna, thank you very much. joumanna bercetche live in our newsroom. we're going to stick with europe. they have decided to take a fresh look at most's restructure proposal to acquire activision blizzard. they're adding ubisoft entertainment into it.

a decision is expected to come by october 18th. i spoke with the cfo yesterday about the new terms of the deal which she called substantially different. >> microsoft today announced a restructured deal which appears to be quite substantially different deal, in particular it means that microsoft will no longer be acquiring the cloud streaming rights in relation to all of activision's games. that will be sold separately. we have announced today a start of a new deadline with october 18th the date for the review. >> i'm joined by the head of investment research at global data. cyrus, good morning. >> hi, frank. >> let's talk about this for a minute. do you believe giving ubi sp soft the rights -- we're talking

"call of duty" and "candy crush," is that enough? >> as sarah just said, this is a completely new deal. it's optimistic but they'll be under a helluva pressure to get that done. microsoft released this two days ago. we don't know the detail. we don't know how much ubisoft is paying in terms of wholesale price later on. what it does raise is two questions for investors. one is, if the whole deal has changed, is the deal still strong. and two is, are regulators at war with big tech because the ftc took on the most deal and lost. they're reconsidering its position. it looks like big tech is

playing around with the regulators and it looks like big tech is winning. are they going to have to try to do something didn't? >> we don't really know all the aspects of the deal including how much ubisoft is paying for the rights. the deal was first announced in january of 2022. it was a very different environment. it seems like metaverse might be a big thing. not so much now. also microsoft giving up gaming rights. it could long-term impact its xbox console business. a lot of questions. how do you think investors should view this deal? >> absolutely. let's say it's worth about $230 billion. that's what it was last year. mobile gaming, 5 f%. cloud claiming, 1%. cloud gaming was one of the rationales that microsoft gave back in january of 2022 for this

deal. we think that market is going to grow to $3 billion by 2030. what's the rush for the rationale now? most has. told us what the rushed rationale is, but i think it will be something around microsoft wanting to be the big player as the mobile market takint takes off. if you look at oesports, saudi arabia is growing. this could be a massive area, which is why microsoft wants it. >> i haven't heard esports in a while. what does this say about tech regulation in general. they want to discuss motte having a monopoly in cloud gaming. according to latest reports,

motte had 0% of the gaming market last year p what does this tell you about the overall attitudes when it comes to regulators and big tech. >> if you look at the last few years, regulators are losing the antitrust battle against big tech and they're losing it for a simple reason. their laws are outdate. you still have the 1890 sherman act that the department of justice and the ftc have to fall back on. and the ftc under lina khan, it's clear she wants to prevent big tech from moving into entire new industries, you know, by anti-competitive practices, but she's losing a lot of cases. so i think what might happen is that regulators might force politicians to actually change the law, and in europe that's happening because in the u.s., regulators have to wait until a company actually commits anti-competitive practices

before they can do anything. but in europe under the new digital markets act, the europeans aren't interested in that. they don't want to go to core. they want to classify certain companies like microsoft and google as gatekeepers, and then you have to follow certain rules. >> it's always great to talk to you. ahead here on "worldwide exchange" we have your big money movers and a look at yesterday's retail wreck and what investors could be thinking this morning.

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all right. back to "worldwide exchange." time now for your big money movers. urban outfitters posted record increase in sales, they expect fewer markdowns and more customers to choose fashion over price, especially in its higher end women's clothing chains. the shares up almost 6.5%. also in retail, dick's sporting goods looking to erase some of yesterday's losses following a weak earning and a cut due to theft and inlow inventory. macy's is coming off its worst daily performance since may and its fifth negative

session in the past six. looking at ark invest cathie wood, scooping up over 120,000 shares of zoom this week. that's her first purchase of the stock in just about two months. the stock trading low despite an earnings beat on monday. the shears are uphash shares ar climbing. let's take a look at cnbc headlines. we have jessica lake. john eastman, one-time lawyer for former president donald trump and bail bondman scott hall who was charged in wecz with an election data breaching they were both booked into the fulton county jail. mugshots were released your night. alleged fake electors david shafer and kathleen also turned

themselves in. moving along, the storm system known as harold made landfall weakening to a depression. overnight it did continue to bring heavy rain. the victim of a north carolina home explosion has been identified as robert farley. that's the father of tennessee titans caleb farley. the sheriff's office says there does not seem to be any foul play. caleb was not home at the time. the titans are doing everything they can to support caleb and his family. finally tennis star serena williams and husband alexis sh sh ohanian weekended their beautiful baby girl. the birth of their daughter comes a year after serena's retimer from tennis. i have a feeling we're going to

be seeing some family doubles matches in the future. >> i don't know if venus williams has kids but imagine if they played together, how amazing they would be. >> serena has a hot going on. congrats to her. jessica layton, it's always good to see you. nike falls for the nthin straight session. much more "worldwide exchange" coming back right after this. when it comes to getting your flu shot, cvs is pretty... flex. wanna schedule one online while prepping dinner? gravy. avoid the wait by scheduling for you... ...or the whole crew. or if you prefer to just pop in? do you.

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it's right around 5:30 a.m. in the new york city area. there's a lot more on "worldwide exchange." here's what's on deck. futures are popping as investors look past pond yields, tech looking to make it three in a row. nvidia prepares quarterly results. we look at the key metric to look at and whether they have the ability to maintain. our diana olick is here breaking down real estate. it's wednesday, august 23rd, 2023, and you're watching "worldwide exchange" right here on cnbc. ♪ all right. welcome back to "worldwide exchange." i'm frank holland. let's get you ready to start this day. we pick up a half hour with a

check on u.s. stock futures in the green across the board, however, a bit off of their highs early this morning. right now it looks hu uc the dow would open 120 points higher. the nasdaq up over half a percent. the s&p up under half a percent. we're also looking at the bond market. looking at bond yields, right now the 10-year trading at its highest level since 2007. 4.2 f on the 2-year note, that back above 5%. we're also watching energy. brent crude back below 60 bucks a barrel. brent crude at 83.35. natural gas down just about two-thirds of a percent right now. let's get a check on some of this morning's top corporate stories. our silvana henao has those. >> u.s. banking regulators are set to unveil new rules for

mid-sized lenders requiring them to issue enough long-term debt to cover capital hosses should theyer fail. the new requirements by fdic are expected to be proposed next week and will cover banks with as little as 100 billion dollars in assets and will come in response to the regional banking crisis earlier this year that led to the failure of silicon valley bank, first bank, and first republic. the founder of hedge fund sculptor capital is taking issue. for claimed culptor's rationale is, quote, misleading and incomplete and is demanding the firm release records to asufficient in an investigation. the ceo has been at odds in recent months, most recently at learnen's pay package and

sculptor's deals that favors sculptor over shareholders. and hollywood studios has released details of a new proposal. the writers guild of america will get a compounded 13% pay increase over the three-year contract and ai-generated contract will not be considered literary material. no comment from the wga, which represents the nearly 11,500 film and television writers who walked off the job on may 2nd, frank. >> certainly a developing story. looking at shares of walt disney and netflix up. turning now to big tech, shares of nvidia trading at all-time highs as the company prepares to release its latest quarterly report. options indicate the stock will move around 11% following the results. it could knock the stock from

the very exclusive trillion-dollar club. our kristina partsinevelos has more. >> reporter: that's been a material uplift in the near term. that's why there's so much emphasis of data sentiment revenues. it consists of 0% revenues. last quarter, for example, nvidia posted $4.3 billion and the street is expecting that number to almost double to $8 billion with some analysts calling for your $15 billion in the coming quarters. that's an uptick from countries like saudi arabia and united kingdom. both said they're willing to invest billions in ai. there are supply chain issues though. there has been an ability to

guide above material levels. it's, quote, highly unlikely. if they can't get the parts, how can they sell the chips. nufrms, wall street is bullish. the median view is 500 bucks per share for nvidia. it's not only because it is the fourth largest and contributes to the soxx index. many of the s&p 500 gainers this year have come from the ai-driven rally. frank? >> that was our kristina partsinevelos. let's daesh deeper and bring in rubin roy. thanks for being here. >> thank you. >> kristina has spelled it out. i think you're a bit of a contrarian. give us your price target, your rating, and what you're looking for in this report? >> right now we're whole rated.

we've been a little bit of a contrarian here. i certainly wouldn't argue with an anyone. nvidia is key. not just the chips but also the networking that goes behind the chips and the software. so really great position. the cloud service provider reported recently. as chkristina mentioned, it's lower. >> what would move it lower and what would you need to see in

this report to make you put a buy rating on it? >> sure. kristina mentioned supply, and i agree. there's a little be it of a potential issue over the next several quarters with supply and nvidia to meet the demand out there. that's one thing we'll be looking for. i think expectations are universally positive for a guide that's higher than consumer estimates as they said here today. that's sort of the way the table is set going into the end of the year. there's also a couple of other moving parts. what will be the impact over the next six to eight months? i think there might have been preordering with restrings going into place later this year, which are already in place. and then really this is a competitive environment that we're looking at. companies like amd h be shipping competitive products later this year.

>> so it doesn't seem like there's much that would lead you to put a buy rating on the stock. you just think that's a lot of headwinds ahead. >> again, this is a dominant player of ai. i think you've got a stock that's moved more than 200% this year. stocks trading pretty extensive hi, so we're looking at potential issues that may come up. >> important points to mention. we talked about the stock that's gone up 217% year to date. i want to look at the estimates right now. really some eye-popping estimates for a company this size. revenue growth of 67%. data centers, the ai chips essentially, expected to more than double. what we see from it, is that having to do with the market?

>> i think that's a good way to look at it. i think that's really interesting. other suppliers working with nvidia, modules that nvidia needs for their networks, they're moving higher. a company retired earlier this week and nvidia showed up. this is, in our view, kind of a rising tide moment. so the way we're looking at itting you've labeled us as a contrarian, which is fair on nvidia. but if nvidia does sort of come true and meet expectations that are out there that are very high, we think that's something that could raise some boats. >> we had a report that nvidia could move things from the you up side to the downside. turning to real estate and wall street bracing for the

latest read on new home sales. this after yesterday's existing home sales report showed inventories at their lowest levels in more than two decades. our diana olick has more. good morning. >> good morning, frank. it's been a rough summer for housing as mortgage rates keep pushing higher and potential buyers look at the limited homes for sale. take a look at rates which started in may. around f.. it's all because bond yields are rising. mortgage rates follow the 10-year treasury yield. as a result, existing sales dropped more than expected to the slowest pace since 2010. that's contracts likely signed in may and june when rate are rising. town close to 15% in july from a year ago. supply is now at the lowest

level in almost a quarter century. that short supply continues to push prices higher. the median price of a home sold in july was up almost 2% a year ago. prices had been weakening at the end of last year due to higher rates, but the supply/demand imbalance is overtaking that effect, and higher rates do not appear to be hurting the higher end though. sales fell across all points but they fell priced at $1 million which is where luxury home builder toll brothers lives. they said new orders were up 77% year over year. the ceo said they're benefiting from low supply and from high mortgage rates which are keeping potential sellers from historying. later this morning we'll get a sales on newly built homes in july. they're based on contract in

july whelp people were out shopping. frank? >> you just blew my mind. we did a story earlier, it was 7.3. now 7.5. >> 7.49. >> we can round up. i'm looking atarm a.r.m.s. they will offer it. the 5-year and 10-year, they're good deals because you can be fixed for five years or ten years and get a slyly lower rate, but that doesn't mean the rate is back where it was two years ago. >> not at all. crazy. 7.5%. i think it's great to round up, tie a nachl great reporting. also great to see you. coming up on "worldwide exchange," why tom lee says

today is the day to take more risk. first as we head to break, we've got top trending stories. you may have heard of straws. there's a hot dog straw. a baseball fan took a hot dog, cobbing it out to make a straw to sip beer. this new straw replicates a hot dog. two thursdays of americans ref regret telling people to make themselves at home, making a mess or overstaying their welcome. the modern-day re-creation of the console of the '70s and '80s that went out of style after it fell out of style.

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it's time for w.e.x. wrap-up. arby's owner roark capital to buy subway. moody's says the wildfires in hawaii has caused $4 to f billion in losses. u.s. antitrust regulators are reportedly set to open up a new antitrust investigation into autotalks. it will follow a similar investigation by european regulators. some breaking news late

yesterday, u.p.s. workers ratifying a labor deal that include big wage increases and improvements to work schedules. the new contract passed with a more than 8 % vote yesterday. that's the highest in the company's history. goldman sachs is cracking down on so-called summer fridays. the investment bank is making a new push to enforce is five-day in-office policy who questioned david solomon's management policies. industry peers like citi and jpmorgan have been working to enforce their three days in office policy. nearly 90% of employees support a hybrid or remote schedule. more than half say they would switch jobs or location to get their preferred situation.

retail and tech dominate the earnings calendar today. we get results from peloton. abercrombie, foot locker, snowflake, and the big one everybody cannot stop talking about, nvidia. nvidia likely the story for many investors with the chipmaker up over 210% this year. let's start there with our next guesting tom lee, co-founder and head of research at globe fund advisers. >> good morning, frank. >> what to you expect from nvidia, and how do you see it impacting the market today? >> it's going to be an important point. it's been an ai secular theme. they obviously have great demand, so i think investors are expecting a great result.

it could still involve markets. there's going to be potentially some reload and buying into nvidia if the results are good, and that's what we're hoping. >> you're also hoping today's a good day to add some risks. that's what you're looking at today. it's kind of interesting that ahead of the report there are risks to add to the portfolio. what's the thinking there? >> we were -- august has been historically tough and we've been cautious. we were looking for markets to b bottom and we were thinking friday would be the day when markets are soft into jackson hole. usually you hit a pretty nice bounce. we thought we might be in front of that in a couple of days because that's a chance for in i have nvidia. if that's the case, we would raebl be two days ahead of it rather than chasing on friday.

>> fair nuchlt you call them granny shots. basically easy picks in the current markets. they seem a bitr lefb levered. why buy into these names today? >> these are -- ai and technologies contain inflation and labor shortage and also sort of powering all these innovations is something that's going to last more than a month or two. it's something that's going to last potentially the next five or ten years, so i do think you want to own the best quality names. all of them are part of that theme. i think cadence stands out. it's one of the unsung heroes. it's so central to the story with their eda software and systems. they're really hand in hand with everything that's happening with

ai. >> one of the o'picks, the material sector. we don't talk about it a lot. cf industries, they make fertilizer. why would you buy a fertilizer name today? >> well, you know, it's -- our granny shots are to fiechbld a high-profile name. it's a production of food and feeding the world and it's an center that structurally has some support. >> it does make sense. tom lee, like the casual wednesday you're doing with the polo shirt. just kidding. i know you're traveling and lost your bag. always good to see you. the dow would open at 125 points higher. we're going to leave it there. we've got "squawk box" coming up next. thanks for watching.

good morning. stock futures are higher, just like yesterday, down 170. we'll show you what's moving right now. fdic plans nubank rules. we'll show you the requirements straight ahead. some amazon employees telling cnbc they decided to quit instead of complying with a new policy that requires them to move to new amazon hub cities, wednesday, august 23'd, 2023,

and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. yay, everybody's here. >> wow. we're really bland, and you are right there. >> sunshine. >> front and center. >> you guys are wearing the same thing. >> canary in the coal mine. >> here we go , here we go. we're going to take a look at the markets. there are strong advances across the board. s&p futures up by 22. the nasdaq up by 9 9. we'll see. we've got big