it is 5:00 a.m. here at cnbc global headquarters. here is the "five@5." living up to the hype. nvidia stock pushed to the fresh record high and taking futures along with the ride. and the federal reserve kicks off the jackson hole symposium today. powell is speaking tomorrow. we will see if the chairman can pour cold water on the stock pop. rough week for retail. one extending the longest losing streak since 1980.

the republican presidential hopefuls in the first primary de debate of the season. it is thursday, august 24th, 2023 you are watching "worldwide exchange" here on cnbc good morning welcome to "worldwide exchange." i'm frank holland. let's get you ready to start the day as we kickoff the check of the stock futures with the s&p 500 coming off the best day since june and first 1% gain in 36 trading sessions. looking at futures right now as you see with the nasdaq popping on the back of the nvidia report up over 1% the s&p also higher. the dow is lower at this hour. we are checking the bond market with the 2-year treasury yield it is just below 5.0%.

something we continue to watch the 10-year treasury is at 4.18. falling back a few basis points from a few days ago at 4.26. we are looking at oil trading at the lowest level in four weeks wti back below $80 a barrel. up this morning is brent crude $84.83. time to get to the top stories with nvidia. nvidia seeing huge demand for chips powering the a.i. relate lu -- relatevolution the ceo speaking out. >> we are significantly expanding the production capacity and supply will increase for the rest of this year and next year

nvidia has been preparing for this for over two decades. >> cnbc's technology reporter arjun kharpal is joining me now. arjun, nvidia extending gains in the pre-market >> frank, blockbuster quarter. let's dig into the numbers and unpack revenue doubled year on year to $13.5 billion. higher than the forecast and market $2.70 a share for eps. 429% year on year rise, frank. no signs of slowing for the september company with revenue of $16 billion blowing away estimates and if met with 170% year on year rise. there are a few things driving this which is the data center with the graphic processing units in the data centers to train the a.i. workloads for

applications like chatgpt. the data center business saw record revenue of $10.3 billion. there is a sweet spot nvidia is sitting in right now demand for the a.i.-related chips and the second is the supply tightness which is giving nvidia pricing power on top of that as well commanding a margin over 70% in the quarter. gaming business, which used to be the core business, remains strong with the growth despite the economic headwinds and concerns of a bad spot is small auto business with the decline of 15% in revenue. frank, few cracks in the armor for the nvidia with the wave for demand for chips and many seeing it as the only game in town for the kinds of chips for the a.i. applications >> arjun, a few questions.

did we hear anything about china and the data center business with the u.s. restrictions coming up? >> the china story is a overhang for the sector last year, the u.s. restricted key a.i. chips from being shipped over to china. they were reports of further restrictions nvidia made a slightly lower powered chips to ship to china to comply with those the company is saying it doesn't think it will be hurt by further restrictions at this point it did warn that over the long term that restrictions of sales to chip to china could result in a permanent loss of opportunity for u.s. chipmakers in what is seen as a critical market. it was a big warning from nvidia that actually the u.s. chipmakers and semiconductor industry could lose competitiveness in the china

market >> generally, nvidia has a broad moat with the a.i. powered chips. could they lose that advantage >> a lot of rivals talking about launching similar chips this year amd is the frontrunner eyeing up a q4 launch for a rival chip to nvidia that is something that the company is watching as well with many of the rivals talking about this nvidia has built a strong moat it has locked in microsoft and amazon and cloud giants into the nvidia ecosystem by having the first mover advantage. that is where it is keying in and on top of that, one thing you see is nvidia talking about upcoming product launches. one is the l-40 which is a set of data center rack with chips inside which is put in the data

centers run by amazon and microsoft. further expanding the product portfolio and moat and for at least in the near term, it will be hard for some rivals to catch up >> it will be very competitive in the chip space as you mentioned. amd shares up 2.5% nvidia is the big winner arjun kharpal, thank you very much turning attention to the broader markets and enthusiasm with nvidia is helping to boost nasdaq futures as you see being up over 1% investors may shift focus to the biggest macro issue of the week. the annual symposium in jackson hole, wyoming. tomorrow is the speech from chairman jay powell. let's bring in janet >> thank you for having me, frank. >> let's start with nvidia futures are up over 1% do you see this a.i. enthusiasm continuing throughout the market

today? >> to be honest, i think it is hard to fault nvidia there is demand with the infrastructure in the near term, the rally could continue ultimately, it is a very of valuation. the risk/reward may not be as attractive as before as the expectations may be harder to beat overall, this is a great theme and it could support the market. >> i think they beat expectations already we will see, janet today is the jackson hole symposium and the speech tomorrow with jay powell there is more than an 85% chanc of a pause from jay powell what is the impact on the markets today from jay powell's speech >> i think the fed will pause. i think we are starting to see that impact from monetary policy and particularly from the pmi

yesterday and inflation heading in the right direction they will change the narrative significantly. i think it is still on the hawkish side with the reacceleration of inflation. 2% is still not in sight i think they will be cautious. they will acknowledge it is heading in the right direction and policy is near the peak. the question is how long do they keep rates elevated which should be a while at least until the first half of next year. >> we heard the fed say higher for longer the market doesn't seem to believe that yet i want to ask about risk is today a good day to add more risk to the table? do you want to put money or advise clients to put money in riskier areas of the market? >> not yet, actually we don't think this is the right environment. yes, there may be a pause in the

fed cutting cycle. we are starting to see the macro risk materializing especially in europe with the pmi is well in contraction in manufacturing and vservices so far, the risk is contained within chinese assets and it does impact sentiment. i think global markets are impacted it is not the right moment to add risk at this point with the valuations being a challenge the yields surpassed 2%. valuation in the u.s. market is not consistent with the level. >> janet mui, thank you very much let's check on the other top corporate stories with silvana henao. silvana. >> frank, good morning smark is the steel company in pittsburgh and it is scrapping the proposal to buy u.s. steel

for $35 a share or $7.8 billion. it will accept the union workers wishes it will be sold to cleveland cliffs it is the only known challenger to cliffs which went public in the bid for u.s. steel earlier this month. boeing says a new manufacturing defect in the best selling 737 jet will delay deliveries as it reviews the number of planes impacted. the issue lies with the contractor aero systems. it uses several supplies and only a certain number of planes are likely impacted. and cvs health is partnering with santos to produce a cheaper version of the arthritis treatment humira

cvs says the drug will sell for 80% below the brand name >> interesting arthritis is a big issue in the united states. silvana, thank you. more to come here on "worldwide exchange," including the one word investors need to know today. and why yesterday was a very good day to report results big money movers are coming up. and the retail wrecks with peloton and macy's sitting at fresh 52-week lows. and later on, the republican presidential hopefuls with the extensio ex-sense -- exception of the frontrunner faceoff. we will have more when "worldwide exchange" returns 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 make complex trading less complicated.

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welcome back to "worldwide exchange." looking at u.s. futures. the dow taking a dip to the down side it looks to open up 20 points lower right now. moving lower since the time we started the show at 5:00 a.m s&p up and nasdaq is up over 1% in the pre-market. let's see how europe is shaping up as the trading day gets under way with julianna tatelbaum in the london newsroom. >> frank, good morning europe is taking a cue from wall street let's start here with the gains across the board the standout is the hang seng

rallying 2%. nikkei 225 in japan put on .90%. shanghai added 12 points as asian markets closed for the trading day, we got news from the brics nations meeting in south africa that they are inviting six additional countries to join their alliance this is big for china which has been a pioneer of the expansion of the alliance. that news came through over an hour ago in terms of european trade, green across the board following the wall street higher as well as the asian markets gained here spread evenly across the regions. there is one standout sector which is catching a strong bid the chipmakers in the technology basket the big names here taking their nod from the strong nvidia results after the close yesterday stateside. asmi up 3% you have asml trading up 1.4%.

those nvidia results providing positive sentiment to the technology space frank. >> julianna, thank you very much live in the london newsroom. time for the few more big money movers let's start with splunk. shares jumping on the q2 beat driven by the focus of acceleration and more a.i. adoption the software company boosting the sales outlook for fiscal 2024 the sales up 13% in pre-market snowflake catching a bid after the earnings expectations and reiterating the full-year forecast the cloud company says the customers will continue pto be growth headwind. those shares up 3.5% let's make it three. autodesk shares higher after the

ramp up in software. the backlog of construction projects make for a healthy demand environment through the end of the year. they are highlighting the 11% rise in revenue and partnerships with companies just like nvidia. shares up over 6.5%. let's stick with earnings right now. it is not all sunshine lollipops and rainbows with retail foot locker tumbling 28% after cutting guidance and paused dividend and warned of a weaker consumer in the face of inflation. check out the performance of stocks this week foot locker down 34% dick's falling 24% macy's 17% kohl's at 19%. it is on a ten-day losing streak, since it went puck in 1980 for nike. there have been standouts in the

retailers. abercrombie smashed forecast stock up 18% lowe's gaining 3% this week. ross stores up 3%. more names on the docket today gap and nordstrom and ulta beauty let's bring in the senior research analyst for more. thanks for being here. >> good morning, frank >> let's talk about yesterday. foot locker and abercrombie. foot locker dropped 20%. abercrombie as well. what can we read >> i think they are two stories. they are both at a different stage. you have foot locker which is just starting to work on the turn around plan mary dillon has been there for a year she is coming in at a time where

it is difficult for the sneaker market the sneaker market is coming into normalization we have lifestyle sneakers coming back and performance doing better she has to redo the platforms. coming up against the weaker consumer and that is the low-income consumer which has been hit this year we have seen it. having the turn around with good ideas in place means it is difficult to get that ramped up quickly. when you look at abercrombie, the turn around plan has been taking time. they are up against weak figures year over year they are benefitting that they lean into core items which we have seen pto be a success stor. you talk about core items. you look at t-shirts and denim has been doing well. when you lean p into that, you have healthier inventory

you are not likely to have to put that on markdown if it is not moving and be aggressive with it. because of that, you have more pricing power. you can deal with better margins. they did do pretty well across the board. a little bit of two stories. one with a turn around and another replacing that turn around abercrombie has the back-to-school season. they are benefitting from that >> i want to talk about shrink which is largely associated with theft. dick's mentioned it for the first time and brian cornell talked about it repeatedly from target how big of an issue is this for the companies? >> the first time they are affected by that we had heard shrink across retailers through the year we have seen at the end of last year into the first quarter and

now into the second quarter and from what target talked about is they will deal with it, but it is not going away. you have to understand p tthe consumer which is dialing with -- dealing with a lot the comi consumer is having a difficult time it theft is the most we have seen >> jessica, gap, nordstrom and ulta beauty reporting today. is one telling about the consumer or one you expect to be better than the others >> tough crowd on this one i would say ulta might have a better p chchance the consumer will spend on beauty ulta has been hit by shrink. we have been seeing that in the quarter. there may be more promotional

cadence. you want to make sure you are not having excess inventory. they are really trying to keep ahead. with nordstrom, they have rack, we doesn't compete with ross or tjx. again, the consumer is trading down with everything they are hit with here. with gap, it is a difficult story. what we are hoping for is the new ceo coming in to turn around and bring the transferrable skills with that company >> we are looking at shares of gap and nordstrom up in the pre-market jessica, thank you >> thank you. ahead on "worldwide exchange," sigh of relief for anyone with an overdue netflix dvd and why you are likely

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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. welcome back the first republican presidential debate saw sparks fly last night without former president trump. he decided to deliver his message on x, the platform formerly known as twitter. this is expected to be a busy

day for the former president brie jackson is joining me from atlanta with more on the story good morning, brie >> reporter: good morning, frank. as you mentioned, former president trump skipped the debate citing his lead in the po polls. we know the former president will be here at the fulton county jail today when he turns himself in one day ahead of the deadline set by the georgia prosecutors eight republican presidential candidates sparring on the debate stage with one goal in mind con vvincing voters >> now is not the time for on the top training >> do you want incremental reform or do you want revolution >> we will send joe biden back to his basement and reverse the decline of the country >> reporter: each person fighting to separate on issues

from foreign policy to border security >> let's fire the 88,000 irs agents >> reporter: and an showing divisions over abortion restrictions >> let's find consensus. can't we agree we should ban late-term abortions? can't we agree we should encourage adoptions? >> i stand behind we should not have a federal abortion ban. >> reporter: former president trump skipped the debate >> whether or not you believe the criminal charges are right or wrong, the conduct is beneath the office of president of the united states. >> i say donald trump was morally disqualified from being president again as a result of january 6th. >> reporter: the former president appearingp

pre-taped interview. >> i don't think it is right to do it. >> reporter: trump making his case to 2024 voters while facing indictments including efforts to overturn the georgia 2020 election and former president trump supporters are planning a protest today outside of the fulton county courthouse the sheriff's office is planning a hard lockdown of the area surrounding the jail when the former president turns himself in frank. >> brie jackson live in atlanta. thank you. time for the check on more of the headlines jessica lleyton is in new york with the latest. >> frank, good morning four people are dead and six injured in the mass shooting that happened in california. let's get to that video right now because we're having technical issues here. the shooter is among the dead. it appears he was taken out by

deputies three law enforcement sources tell nbc news the shooter was a former law enforcement officer who targeted his wife. this happened in orange county. and meantime, prighozin likely was killed in a plane crash. he was listed as a passenger of the plane that went down outside moscow on wednesday. and japan is treating radioactive water from the fukushima nuclear plant. the slow discharge of 1.3 million metric tons of waste water will take 30 years to complete the plant faced protests frank, back to you jessica, thank you straight ahead on "worldwide

exchange," a post pandemic milestone for one air carrier. we will explain after this break. stay with us

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xfinity rewards creates experiences big and small, and once-in-a-lifetime. 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. it's 5:30 a.m. in the new york city area there's more ahead here on "worldwide exchange. here's what's on deck. living up to the hype. nvidia turning the bears on the street to bulls after the record-breaking quarter. futures are higher on the heels

of results fuelling investor enthusiasm to risk as we turn to jay powell. and china, russia and india joining the ranks as an -- as we turn to a seismic shift. you are watching "worldwide exchange" here on cnbc welcome back to "worldwide exchange." i'm frank holland. we pick up the half an hour on the check of the future stock futures. the dow falling into negative territory. it looks to open 50 points higher right now on the flip side of that, the nasdaq futures are up over 1%. the s&p is about .50% higher we are looking at the bond market looking at yields as we start with the 10-year treasury at 4.19 a few basis points lower than recent days when it hit

multiyear highs. the 2-year treasury yield is back up toward 5%. we are looking at energy we start with oil. wti is back below $80 a barrel $78.93 brent crude up at $83.30 natural gas falling lower from the start of the show. down closer to 1%. turning to the top story and money moverof the morning. nvidia shares soaring on a blowout quarter. up 7.5%. revenue increasing by more than 100% from a year ago upbeat guidance suggesting a boost in the current quarter as the demand for the a.i. chips continues to grow. the ceo highlighting the customer enthusiasm about the cost saving potential when it comes to a.i >> the best way for companies to

increase input and improve energy efficiency and cost efficiency is divert capital budget to computing and ya.i. you will offload from the cpu. >> let's bring in matt from wedbush. >> thanks for having me. >> a blowout quarter which exceeded expectations. what is the biggest take from the report have you changed the price target >> yes my price target from $490 to $600 the biggest take is the infinite demand no matter how much nvidia ships, it seems there is a customer out

there to take the incremental part >> you don't hear that often matt, your price target implies you see the stock moving 17% higher how does it move 17% what is the catalyst jensen huang putting out good confidence for the quarter where is the negativity coming from for the quarter >> it is them putting more product out there. right now, my conversation suggests 40 weeks of lead time plus for the h-100 product for channels other channels is a year plus. i'm being a bit facetious in saying infinite demand. at some point, you have to see the models turn into revenue for

the customers. we have to see more use of a.i we're not at that point right now. >> i know you are being colorful with infinite demand two factors going into the report the supply chain and china on the call, the ceo said he expects supply to increase in each of the next four quarters he said there is not rush of orders from china. what is the take from that issue? >> i think there is a larger issue with china for all of tech, you have to wonder if the situation will determine if shipments might be a problem for u.s. interests and if it creates risk obviously, nvidia on the front of a.i., is not excluded from that

in the same vain -- >> matt, were you surprised the china sales for data centers were not higher? were you expecting those to be higher he said it was in historical range of data center sales >> i think nvidia is trying to fulfill all of the customers i don't think they are shipping more to china to get ahead of the ban. at least, at this point they don't expect the u.s. to shift policy. >> you are saying they are worried about it a near-term risk to future sales is a possibility >> it is a risk for all of tech. i have to consider it with all of my names. it's out there >> i want to talk about the broader chip sector. what other chip names do you see as beneficiaries from the report

from nvidia? >> they are a direct supplier and it is bringing its own packaging. that is the portion of the supply chain where nvidia is con trai constrained in terms of what they ship. beyond the names, the problem is there is not a ton of other beneficiaries. at some point, amd is in second place in the race to compete with nvidia. eventually, the huge a.i. demand will benefit them. at the same time, they were talking about replacing cpus a bit of a mixed bag >> i want to hit on the stock we are showing. super micro chip up almost 9% it seems like it is rallying on the back of the nvidia results why this company it is one we don't talk about

often. >> the name shifted from under performance to neutral yesterday in the expectation of the good number from nvidia there are only so many system builders who build systems using nvidia's parts super micro was early to the market they are one of the leaders in providing a.i. systems when you see nvidia put up a big number, the read is their customers are doing well. >> all right matt bryson, thank you for your time let's check on the top corporate stories with silvana henao back with those. silvana. >> frank, i am back. let's start with google. it may dominate search with smartphone software, but when it comes to cutting edge hardware no such luck the company is facing new setbacks and developing a mixed

reality headset with samsung to rival apple's vision pro this is following the reports that google gave up on the project iris glasses in june the mixed reality device has reportedly been in the works since at least last year, but now become a quote political headache goldman sachs and jpmorgan chase and morgan stanley and ubs reached a $499 million settlement over antitrust allegations in the stock lending market this follows $81 million settlement reached last year by credit suisse now owned by ubs similar claims by bank of america remain the lone defendant. former new york times chief mark thompson is a lending candidate to replace chris licht

to run the cable network the ceo of the times from 2012 to 2020 is among the small group being considered for the difficult role of turning around cnn. >> a tough job a lot of people looking at the changes at that network. silvana, thank you coming up on "worldwide exchange," the white house taking steps to ensure the health of the global semiconductor supply chain. as we head to break, we have the top trending stories we begin with a sigh of relief for anyone with an overdue netflix dvd. netflix says it is allowing all dvd subscribers to keep dvds when it plans to shutdown the nearly 25 years business the dvd subscribers can get a bonus of 25 dvds as a parting

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welcome back to "worldwide exchange." time for the morning call sheet and nvidia wall street is playing catch up after the record-breaking second quarter. everyone on the street, including long-time bears on the stock are now changing their tune look at the most notable price target moves citi from 520 to 630 we have the similar story from

ab bernstein 475 to 675 we have rosenblatt securities. moving the outlook from 800 up to 1,100 big move there nvidia shares moving higher in the pre-market looking at shares right now which are up over 7.5%. piper sandler boosting price target for amazon. piper says now is the time to buy amazon with aws growth set to reaccelerate. and the peloton is downgraded. the company is moving to sell. shares of peloton down 1.5%. time for the global briefing u.s. is extending the one p-year extension on the waivers for chip makers in korea in the

event of the disruption in the supply chain regulators are looking for an indefinite exemption shares of qantas moving higher after travel demand and higher air fares it has an order for 25 wide body aircraft as part of the renewal program which comes as disputes and customer service issues and pressure over performance. it all weighs on the company shares up 1%. nations led by russia, china, brazil and india invading saudi arabia, iran and three other companies to join the bloc that is brics. it brings together the largest energy producers in the world to one group which would give the brics plus expanded economic influence in trade and other world affairs.

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welcome back to "worldwide exchange." time for the "wex wrap-up. shares of nvidia topping the estimates. nvidia seeing huge demand for chips. shares up over 7.5%. smark is dropping plans for the deal for u.s. steel. take a look at shares right now. u.s. steel down 3%

cleveland cliffs is up fractionally. and nike posts the tenth straight losing session which is the longest since 1980 and guess has revenue growing by 3%. helped by soaring sales in europe and asia. boeing trading lower in the pre-market the company warning of the manufacturing flaw on the 737 jet. shares down 2% right now shares of splunk jumping on the revenue earnings beat in the second quarter the software company boosting sales outlook for the rest of fiscal 2024. ahead of the summit at jackson hole, markets are poised for a mixed open coming off the positive session with the s&p posting the best day since june 30th taking a look at futures with the dow in the red it looks to open 60 points

lower. s&p up .50%. the big story is the nasdaq up 1% higher in pre-market. joining me now to discuss this . it is always great to have you here good morning uchlt. >> -- good morning >> good morning, frank. >> nvidia is the star with the blowout quarter. futures up over 1% right now do you see this continuing to power an a.i. powered rally with the magnificent seven and othering mega cap tech stocks today? >> i think so. you see a nice bounce in the growth and tech space. nvidia was priced to perfection and it crushed i think morning star capitulated the they are the last sell rating. all of the expectations with the nerves and they crushed it and

will increase sales for the next year the data center is the headline with a.i i think a.i. is still in play. you are fighting the fed on friday, but a.i.'s day is the day to shine >> you seem optimistic what is your wex word of the day? >> it is perfection. take a bow, nvidia you earned it. the perfect clean sheet beat across everything i have seen. >> i have to ask would you advise clients or other people to take a defensive role ahead of jackson hole? are there some sectors you are watching for weakness? >> absolutely. i think jackson hole will bring wiggle room for jay powell i think we will see that rhetoric again the market is pricing in about 11% or 12% chance of a september hike november is on the table at 30%

chance i think investors still need to play defense there is the core legirelation the rise of yields it came back to bite us as yields popped and stocks had fallen investors need to realize higher yields are bad for the long-duration stocks. >> i want to get to your picks adobe. trade at 32 times forward earnings after nvidia, are we not worried about valuation? >> if you can grow your earnings enough, you might be able to play catch up. that was a knock on nvidia we have it at 3% at the same point, if you grow the earnings fast enough, it becomes irrelevant adobe doesn't get a lot of love, but firefly has over 1 billion images now here in three months. it is a great software tool. good complement to the chip plays.

>> we have to leave the conversation there thank you. look at futures off the highs. nasdaq futures up over 1%. dow in the red s&p up almost .50% a lot to talk about with "squawk box" coming up next. thank you for watching novation . 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. bridgett is here. take the first step to see if she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright.

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well, no disappointment. good morning nvidia shares jumping after numbers that were better than the whisper numbers. surge in demand for the profitable a.i. chips. stock up nearly 250% year to date and you go back ten years or the company's ipo unbelievable gains it has to be full coverage is straight ahead. meantime, boeing dragging down the dow after disclosing a manufacturing flaw on the 737

max to delay deliveries. roll the tape from three other times we said the same words eight republicans spared on the debate stage last night while donald trump tried to steal the spotlight with some guynamed tucker carlson on x we will show you the highlights. it is august, 24th, 2023 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live at the nasdaq market site in times square i'm andrew ross sorkin with joe kernen with keflly evans. i watched until th