it is 5:00 a.m. here at cnbc global headquarters and here is your five@5. we begin with futures fighting for gains as investors look to close out what's been the worst month for stocks this year helping the bulls, new comments from atlanta fed president, raphael bostic we'll tell you why he says inflation may already be very close. and speaking of the fed, investors are bracing for another key piece of economic data what is known as the central bank's preferred gauge of inflation. we have the milken chief economist, bill lee here with a

preview. plus, a record-breaking quarter from european banking giant ubs and exclusive comments from its ceo and later in the show, approving doubters wrong as salesforce blows past estimates it's thursday, august the 31st, 2023 you're watching worldwide exchange right here on cnbc. good morning welcome to worldwide exchange. i'm frank collins. let's get you ready to start this day as always, we kick off the hour to check on u.s. futures on this final day of august trading with sessions riding a four-day winning streak look at the dow futures looking like they'll open up about 130 points higher futures are fighting for gains we clearly were not talking about the dow. the s&p and nasdaq fractionally higher we'll continue to watch the dow all morning long helping with futures this morning, salesforce. sales jumping after topping second quarter estimates

and raising its current quarter guidance and its full-year guidance thanks in part to its decision to raise prices on key products for the first time in seven years. taking a look at shares of salesforce this morning, up over 5.5% let's just also looking ahead to today's personal income data economists expecting core pce prices to come inat 4.2% year over year in july. that's just a tick, a skosh higher than june the estimate, 4.2, previous, 4.1. so ahead of that, we're checking the bond market. taking a look at yields. begin with the benchmark, ten-year at 4.01 we've seen bond yields raise we saw the two-year note, that note well above 5% at 4.86 we'll continue to watch throughout the morning we're also looking at the energy market, specifically oil we begin with wti, the u.s. benchmark at 8191, moving a third of a percent higher. fractionally higher, naturally gas, fractionally lower.

basically flat for these last two. the major averages riding a four-day winning streak, trimming their losses in the worst month for stocks in 2023, as we start this final trading day of august, take a look, the dow is off 1.9% for the month of august its first loss in the past three months the s&p down 1.6%. the nasdaq down more than 2% so both the s&p and the nasdaq, they're both set to snap a five-day win streak. let's get to matt miller at miller tabak thanks for being here. for the month we're seeing declines, the last few days we're seeing a bit of rally, which one do you believe will carry momentum into september? >> i think we'll see more weakness as we move into september. october is generally -- i'm sorry, august is generally a tough month for the stock market, but september is the worst month for the stock market and the thing that concerns me the most is this level of interest rates

i mean, i think chairman bostic, president bostic, i should say, is correct that the fed may not be raising interest rates anymore. they may be done the question for me, though, is that enough to really push the stock market a lot higher? and i have questioned that, because i think al of people are equating the end of rate hikes with easing or even the end of rate hikes with the kind of a monetary stimulus that we had, you know, with the 2020/2021 i don't think that's the case. >> one of the things that's been pushing the market higher is consumer discretionary spending. that sector up over 30% year-to-date important to note that two stocks in there are tesla and amazon so it's not necessarily what you may think when it comes to consumer discretionary spending. with the return of student loans, are you worried about that impact and sector on the broader market >> yes, of course, we have this whole thing with the student loans, as you just mentioned,

come home to roost -- or coming back from the hiatus that they have been on for a while but the biggest thing, of course, we have this situation where credit card debt is at all-time highs, we're starting to see a rise in delinquencies in credit cards and credit card payments, et cetera. it just shows that there are some cracks in consumer spending that doesn't mean it's the end of the world, but it goes back to this feeling with valuations where they are and interest rates coming down -- i'm sorry, with interest rates evaluated, you know, 15-year highs, it's going to be tough for the stock market to push a lot higher as we move into this tough time frame that september and october tends to provide >> the yields are coming down just a bit we're looking ahead to pce today. is this the big inflection point that it's been in previous months do you believe that this will be either the nail in the coffin to pause or hike or is this it? >> i think it will be, but again, one thing we do have to

remember, i think the most important thing that investors have to remember, the fed is always going to have to tighten whether inflation was a problem or not they pushed interest rates to incredibly artificially low levels in 2020, because we had a pandemic and the entire global economy had shut down. so therefore, they were always going to have to raise interest rates to a certain level not as high as they had to do it, but my point is, they were not going to come down as much as people had thought. >> matt, just to be clear, if you think this is the final decision to pause or hike, which one do you think this is going to be? >> i think they're going to pause and they're done raising rates. i just don't think it's going to be quite as bullish for the stock market that a lot of people will think it will be >> so it doesn't matter if pce is higher than expected? >> if pce is higher than expected, they will hike even further, and that will cause a big problem for the stock market i don't want to say it's a lose/lose situation, i think the stock market has had a great run here so far this year. you're getting 5% for cash, why

not raise a little bit in case we do see a pullback and if i'm wrong, you'll get paid to wait, and i'm not saying you should go to 50% cash or anything >> understood. matt maile, great to see you thank you very much. time to get a quick check on this morning's top corporate stories. our sillvana hanoi here with that >> raphael bostic says that inflation is high enough to bring down rates to 2% and given the nature of housing inflation, underlying inflation may will be at or close to the fo fed's target speaking in south africa this morning, bostic adds he does not favor easing anytime soon, but says that policy makers should be cautious on more tightening and quote, inflicting unnecessary economic pain. the white house is expanding export restrictions of certain high-end chips made by nvidia and amd to countries beyond

china, include those in the middle east. in a filing this week, nvidia said the new regulations, which effects its a-100 and h-100 chips using ai will not have an immediate impact on results. and shares of companies in the canada space are also surging this morning let's take a look. both up in the pre -- all three up in premarket now, this on a report that senior u.s. health officials are recommending the federal government ease restrictions on marijuana use, including reclassifying it as a schedule iii drug, a downgrade from its schedule i status that's the same as other substances like heroin >> saw a big surge in cannabis stocks yesterday >> we'll keep an eye on it today. >> a lot more to come here on worldwide exchange, including the one world that investors have to note today but first, exclusive comments from the ceo of ubs, after the bank's record-breaking quarter

a and after idalia, a live report from south carolina and a look at the damage left in its wake and later, gauging the real-world impact of president biden's reduction act asking if $3.25 billion and 2,500 new jobs, is that enough to move the needle for the 2024 election we have a very busy hour still ahead when "worldwide exchange" returns. introducing watsonx a platform designed to multiply output by tailoring ai to your needs. when you watsonx your business, you can build ai to help coders code faster, customer service respond quicker, and hr handle repetitive tasks in less time. let's create ai that transforms business with watsonx. ibm. let's create.

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exchange taking a look at u.s. futures, the dow is up just about a hundred points in the premarket, a bit off its highs. the s&p fractionally higher, the sf fractionally lower now let's see how europe is getting underway our julianna tattlebaum is live >> european investors are reacting to a mixed session in shanghai we got some fresh data out of mapland, china's factory activity in august shrank for the fifth straight month, but at a slower pace than in july retail sales in august did see market increase versus july, but overall, the picture in china remains quite down bate. overin hong kong, a lot of focus on the property sector continues. we saw some swings in country garden, the troubled property name overnight after reporting a record loss. now, european equity markets holding up a lot better than the

overall asian region you've got green for the most part, although we have turned negative now in france the cac 40 down, the ftse up pretty well. ubs trading at the top of the stock 600 after finally delivering their delayed earnings this morning and investors cheering what they heard. if the euro is in sharp focus, the euro is trading down by about half a percent by the dollar some fresh inflation data just moments ago. the iuorio area inflation rate for august, 5.3% year on year. that was stronger than expected. steady of a month of july, but investors were looking for 5.1%. what does this mean? the market is reading it as increasing the likelihood that the ecb hikes rates once again at their september 14th meeting. frank? >> inflation a big story today on both sides of the pond. julianna, great to see you as always thank you very much. we're going to stick with europe and news that julianna had mentioned just a moment ago.

shares of ubs are surging this morning. the swiss bank reporting its pest-ever quarterly profit in the second quarter credit suisse benefiting from its takeover -- excuse me, ubs benefiting from its takeover of credit swuisse. >> we're seeing a positive reaction in the stock price today. investors are namely reassured by the fact that the bank's capital position is still pretty strong and that we're still seeing money come into their wealth management division remember, it was the scale and the speed of the outflows away from credit suisse, which catapulted its decline in those final days we got a lot more color about these strategic direction for the combined entity going forward, and this is part and parcel of ubs' decision to start with winding down of the investment bank, essentially eliminating the infrastructure

for the global markets business. i put that question to the ceo, seersergey armati about their decision to downsize the investment bank. >> our analysis has proven that the business model was not viable any longer. credit suisse has excellent people, clients, product capabilities, the business model was not sustainable any longer and needs to be restructured >> the business not viable anymore. he's saying, hence the decision to continue along the lines of downsizing that investment banking unit ubs also announced a $10 billion cost savings target, which is a little bit higher than what they had announced a couple of months ago. before it was $8 billion, they've upgraded that to $10 billion. and a big chunk of that will involve head count reduction, frank. >> let's talk a little bit more about head count reduction they obviously took on a lot of staff in that credit suisse

takeover >> absolutely. and this is a big question for investors going forward, because that $10 billion cost savings, essentially big chunk of it is going to come from a reduction in personally, either through reduction natural attrition. so far, 8,000 jobs have been lost and ubs announced that in switzerland, another thousand jobs will be lost and 2,000 will be lost domestically but analysts out there put the number as high as 30 to 35,000 there are a lot more job losses to be expected there is a long road ahead even though investors are cheering on the results today, it's going to take years for this full integration to fully come into force and for them to see synergies from the two companies. >> thank you for your reporting, as always. thank you very much. ahead here on "worldwide exchange," we have the bull case for insurance stocks in the wake of hurricane idalia, and the

likely billions of dollars in damage a live report from south carolina coming up next. and a closer look at this key sector of the market when we return, right here on "worldwide exchange," stay with us. your bs however you see fit. rosie used part of her refund to build an outdoor patio. clink! dr. marshall used part of his refund to give his practice a facelift. emily used part of her refund to buy... i run a wax museum. let innovation refunds help you get started on your erc tax refund. stop waiting. go to innovationrefunds.com you really got the brows.

welcome back to "worldwide exchange." millions of residents who were forced to evacuate, they're now returning home this morning in the wake of hurricane idalia the historic category 3 storm made landfall in florida yesterday before moving through georgia and the carolinas.

nbc's wendy woolfolk joins me now from charleston, south carolina, where the cleanup is just getting started wendy, good morning. >> reporter: frank, good morning to you thankfully, idalia's bands are starting to taper off here in charleston, but there's still a tropical storm warning up in north carolina that, while more than 350,000 customers in florida, georgia, and south carolina are waking up without power this morning the first major hurricane to hit florida's big bend region in more than a century. idalia's storm surge exceeded expectations wednesday morning more than 10 feet in some places >> i don't think anybody expected it to be this bad >> reporter: weakening slightly to a category 3 when making landfall, billboards and buildings, still no match for gusts up to 120 miles per hour >> nobody is going to get power

for weeks. >> reporter: leaving bnt councount l less downed trees and ravaged structures, the storm quickly moved into georgia and up the carolina coast >> jason was trying to pull the door shut, and he couldn't do it and he's a big guy >> reporter: a tornado in charleston turned this car upsidedown, injuring two people inside while the lowcountry is no stranger to flooding, the high tide, a super moon, and just inches of a tropical storm surge can cause catastrophic destruction. >> there is, of course, a lot of debris to clean up, but we will get working with that, with the local communities to make sure that the roads are cleared and people can go back to their lives. >> reporter: after four states in 48 hours, idalia leaves behind days, weeks, even months worth of damage to repair. last night's high tide was a

record-making one. it topped over 9.2 feet. that's the fifth highest on charleston's records now, once daylight arises here in the area, we'll get a much better perspective of the damage in the lowcountry. meantime, hurricane idalia, now tropical storm idalia, is going to make its way back into the sea, thankfully, frank, later this afternoon that's the latest here live in charleston i'm wendy woolfolk, back to you. >> wendy, thank you very much. you stay safe. one part of the market we are keeping a close eye on after idalia is the insurance business the storm putting several major businesses to test within florida's already-expensive insurance landscape. experts say the industry can likely emerge from this crisis mostly unscathed, but consumers will likely have to pay higher insurance premiums let's bring in paul newsom, senior research analyst at piper sandler. thank you for being here >> thank you >> so paul, i want to be clear, the main concern when it comes to hurricanes, severe weather is

people, safety, their homes, things like that, but there certainly is an investor impact to this as well. give us a sense, how are insurance stocks impacted when we see a hurricane or another severe weather event >> obviously, there's a cost, but it's important to remember that these companies expect to have a hurricane or two every year, so it's usually within expectations of what they're going to have every year and then the net effect is a little bit of increase in demand, as customers recognize that they need the insurance after these events and then, also, a reminder that they should remained discipline when it comes to underwriting. and that is usually a net positive for the insurance companies. even though they're taking a significant loss for the event itself >> that's honestly a bit surprising we're looking at a few insurance stocks, aig trading higher this

morning, pretty interesting. something else that's pretty interesting is that you actually recommend dollar cost averaging into insurance stocks ahead of a storm. explain this thesis. what's the benefit of dollar cost averaging before they have this kind of disruption? >> it really has to do with two things one is that the company -- the stock price typically goes down in front of an insurance event like this, and typically respond, because insurance investors like every other stock event, they don't like uncertainty. and as the uncertainty goes down, as it increases, you see the stocks going down. as the event involves itself in the understanding of what's going to happen here, the stocks typically rebound. your dollar cost average, because hurricanes are unpredictable. you never know what's going to happen the only way to pick the bottom is to do it with a dollar cost averaging. >> so you're basically buying the dip into the storms. the stocks go down right before the storm and go back up to

their ploorevious levels right afterwards >> that's exactly right. >> interesting a year ago, hurricane ian caused an estimate $100 billion in damages. i know you said there are some estimates from other storms but then you have to inflation adjust this was just a year ago, basically the same dollars over that period of time. you say the insurance companies, they prepare for these events, but when you see this kind of damage and we're seeing more and more of these big storms, how does that impact the premiums that consumers have to pay, and long-term, how does it affect the top and bottom line of these insurance companies? >> it's not a specific company or situation that ends up. generally, you'll see higher prices falling a bit you saw much higher re-insurance prices falling for ian so, you know the customer's paying more after these events, because, insurers and re-insurers become much more disciplined. and essentially pass on the cost to the customers >> but is it a long-term tail wind for the companies themselves does all of this -- do higher

premiums actually trickle down to the bottom line >> it does eventually, it trickles down it doesn't happen instantaneously, but over the course of the next year and a half, you'll see rates increase and prices increase, and it will ultimately trickle down to the insurance companies. >> paul newsom of piper sandler, great to have you here thank you very much. >> thank you straight ahead here on "worldwide exchange," first it was ub soft, now microsoft taking even more steps this morning to appease the regulators in europe we have the details ahead. and if you haven't already, follow our podcast, check us out on apple, spotify or other podcast apps "worldwide exchange" will be back right after this. huh. how long have you been tracking our car's value with carvana? just, like, 7 months. should we sell it? we hold... hold... silver vans are going for more right now, should we...

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it's about 5:30 a.m. here in the new york city area there's a lot more ahead ear on "worldwide exchange. stocks riding a four-session win streak dow futures are higher this morning. we're also looking ahead to a key inflation data point out this morning new comments from one fed president that the rates are actually high enough plus, much more than yoga pants. what investors should be looking for from lululemon what the latest results. it is august 31st, 2023, and you are watching "worldwide exchange" right here on cnbc all right. welcome back to "worldwide

exchange." i'm frank collins. let's get you ready for this day. we'll pick up a half an hour as we always do with the u.s. futures. the dow looking like it will open up about 115 points higher right now. as we always say, it is early. the s&p fractionally higher, the nasdaq fractionally lower at this hour. big moment later today, the market's late-august bounce could test a big test. we're talking pce is out at 8:30 a.m. eastern month over month, consumer prices are forecast to rise another 0.2% in july, matching the increase in june same number. you see it right there the core pce is expected to tick up just a skokomsh the core rate, has a better measure than inflation trends. let's talk much more about this right now with bill lee, chief economist at the milken institute. bill, good morning >> good morning. thanks for having me on. >> let's get right down to it, bill, do you agree with the

estimate for pce, and it goes up a tick higher month over month, what does that tell you about the path of inflation. >> it says that inflation really is on a downward trajectory, but the trend itself is pretty bumpy. and i think the fed is expecting that and as much as president bostic has said that he thinks things are night enough, i think the consensus on the committee is one where they still are less certain about that and i think chair powell is saying that we may need to tighten more if inflation doesn't show a clear downward trend, especially core inflation. >> i think chair powell is definitely saying that at least based on his comments following jackson hole so looking at the cme fed watch earlier, shows more than an 85% chance of a pause. about 20 days away from that september meeting. is this report a big inflection point you think that the fed will make its final decision on? or other data points coming up that we should pay more attention to >> it's certainly a big piece of the puzzle we have another cpi reading

coming up before the meeting, and that will tell us more whether the trend is in tact going down, or whether that bumpy trend will have some upward bias. so i think one of the things that the fed is very cautious, also, as much as labor markets are easing up, the revisions in gdp are still showing, we have a pretty strong economy out there. >> we always say that pce is the preferred gauge. so how could cpi change their mind cpi is mostly focused on urban areas. pce is generally everybody if pce is the preferred gauge, shouldn't this be the one that helps them make the decision >> you would think that, but the fed itself is just always saying, we don't allow any one point to influence our decision. yes, this is a very big decision maker, and it's very important piece of the puzzle, but the cpi is a fixed weight basket it gives you a sense of where it is that prices are actually going up the pce allows people to adjust their spending habits, so they react by spending more on the more expensive stuff, and less

on the splefsless expensive stuf >> i want to bounce a note off of you, related to consumer spending this note from morgan stanley is about student loans. it says in part, about half of student loan borrows are likely to resume payments in q4 with 70% of the payments coming at the expense of spending elsewhere. the drag on discretionary spending will stretch into the first quarter of 2024. how do you see the resumption of student loans impacting the broader economy. of course, we're right on the verge of back-to-school. >> the student loan is always a story that people are telling as one of the drags on the economy. and this is very much of a spending portion of the population, because it's the young people were doing a lot of the spending but i think the one thing that we have been surprised by over and over again is how strong overall inflation is, overall consumption is and much of that spending is taking place by the higher income consumers and so, i think, as loans are a drag on a lot of people, the upper end still seems to have a lot of buying power, and those guys are the ones that the fed

is most concerned about. >> bill lee, always great to see you. bill lee, chief economist at the milken institute, thank you for your time and for your insight >> thanks for having me. >> we're also watching chaser of lululemon this morning, adds the company gets set to report its results after the close today. the stock is up more than 17% this year, out-performing the xrt retail etf revenue and profit are expected to both grow by 16% for this quarter for the full year. lululemon is guiding for eps to come in between 11.74 and 11.93 a share. things to watch, same-store sales, gross margins, and inventory, following a decrease in inventory last year joining me with his expectations is brian nagel with oppenheimer. good morning thanks for being here. >> thanks for having the >> let's go, does lululemon have

an issue with too much inventory? >> we're favorable on lululemon, we have been for a while we have an outperform rating a price target which still suggests decent upside from current levels to get to your question, look, the market, what we've seen over the last now several weeks, i would say, is that market sentiment towards this athleisure and sporting good space has really soured. now, in my view, and what we're telling our clients is, look, we think this is an opportunity because i think that's what we'll see from lululemon when the company reports its quarterly results after the close. i think trends at lululemon are tracking quite well. and i think that should generally an upside, an upside surprise to this rather soured market sentiment >> so i'm looking at the estimates right now from lululemon same-store sales, a key metric for any retail store. the forecast for same-store sales to increase by 12% you're saying, sentiment about athleisure souring, is lululemon completely bucking the trend

something that's keeping people from going back to the store and buying more? it's pretty expensive when it comes to athleisure. >> lululemon has been performing better than other athleisure pr brands i also think the big trend here, i talked about this with nike as well, is that you had this shift, where dressing more casually as a society, right so these leading athletic brands like lululemon are taking market share from elsewhere in the clothing space people addressing more casually, but within athletic wear, lululemon has been a top performer. this is still a relatively small brand. it's much smaller than nike or other brands from that standpoint, there's more run way, so tosay, for lululemon continue to grow both in the domestic market and the united states as well as overseas >> brian, when you say people are dressing more casually, i think you're really talking about yourself you say you wear the pants with a jacket to work all the time. we have a lot of people here at

cnbc all the time. wear the abc pants and put a blazer over. it that's a broad trend. right now, lululemon gets about 40% of sales direct to commerce. what does that mean long-term in this brand for this company as we see a lot of softness for people going into retail stores and a lot of spending going from goods to services. >> on the ecommerce side, one of the advantages for lululemon, and the company is still a relatively young business model, is that they've been largely developing from scratch. so as you look at nike, and we're big fans of nike as well, but one of the challenges for nike over the past, i would say now few several years, even, has been rationalizing, driving more sales directly to consumers. lululemon on the other hand is for the most part a direct-to-consumer brand they have their websites, they have their stores, they do a little bit of wholesale, not much but again, that's allowed them not to have to do that

dismantling. that's a big pause from an overall, you know, business model. direct-to-consumer, a company like lululemon can control its brand better, can control its pricing better, connects better directly with its consumers. and again, i think about how the involves and how lululemon continues to grow from here, that's a big positive. >> brian nagel, great to see you. price target of 400 on lululemon. we have to watch for that report after the bell thanks for being here. >> appreciate it coming up on "worldwide exchange," we're gauging the real world impact of president biden's reduction inflation act. we're live on the ground in one midwest stays asking if $3.5 billion and 2,500 new jobs, is that enough to move the needle for the 2024 election? our own emily wilkins is live in marshall, michigan, that's coming up next first, as we head to break, some of your morning's big money movers analyst expectations, okta attributing their earnings beat to demand for its identity

authentication services as well as expansion into the asia pacific region, as more businesses ramp up security measures against rising cyber attacks. those shares up almost 11% a very different story for shares of five below, falling in the premarket on a weak earnings outlook. the company expects gross margin leverage due to lower freight cost, but says it's conducting inventory investigations due to shrink, which five below warrants will significantly impact the current quarter compared to last year. those shares down more than 5% and our big stock story this morning, we're talking salesforce, of course. shares are popping this morning, following a second quarter beat and a boost to the company's full-year outlook. revenue increasing by 11% from a year ago, due to higher prices for some of its products and salesforce benefits from optimism over ai still, management is cautious around the uncertain economic situation and its impact on sales cycles and the approval. salesforce brands are up just over 5%.

futures right now, at least when it comes to the dow, moving higher this morning. something we'll continue to watch. stick with us. much more "worldwide exchange" coming up after this help you find and unlock opportunities in the market. e*trade from morgan stanley. with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley

if things stay strong, it will be harder to bring down inflation, but if things start to weaken, it creates more of a recession risk, which, by the way, we don't think -- it's hard to call right now what's going to happen. that starts to tamper down inflation and obviously allow the fed to take more aggressive actions cutting. which is not a good thing.

but that is literally, when you say like, what is one of the most important things we're watching, that is one of the most important things we're watching, but it's when savings are going negative sometime in the fourth quarter >> that was just part of sixth street cofounder and ceo alan waxman's first-ever television interview as part of the latest delivering alpha newsletter. his firm has exploded in growth in recent years with $74 billion invested in everything from direct lending and sports insurance to real estate scan the code on your screen and subscribe for more or visit cnbc.com/deliveringalphanews letter it's time now for your global briefing. this morning, we have news related to microsoft microsoft says it plans to unbundle its teams software from the microsoft bundle in europe the move is an effort to address concerns raised by eu regulators who are concerned. teams bundling could relate to an abuse of the teams position and ubs shares surging, reporting its biggest ever quarterly profit as a result of its takeover of credit suisse.

it will fully integrate the local businesses of its former rival by next year and china says its manufacturing sector contracted in august for the fifth month in a row as it deals with weak consumption, low factory output and a property sector liquidity crisis now we're turning our attention to a new cnbc series called the money trail, where we look at the $2 trillion in government spending planned over the next decade in infrastructure like the chips act the infrastructure law today, we head to michigan for a look at the real-world impact in one small town our emily wilkins joins us now from marshall, michigan, with much more. emily, good morning. >> reporter: good morning. when president biden signed a major bill last year, he hoped it would lead to developments in places like marshall, michigan, where ford is building a $3.5 billion electric vehicle factory that's expected to create 2,500

jobs ford did consider other sites in other countries for the factory, but officials say the company decided to stay in the u.s. thanks to new tax credits in the law. at a coffee shop downtown, the head of a local nonprofit said the factory will have a huge exact on the area. >> ford, a michigan company, is coming to marshall is so exciting, that jobs for so many years have left the state and have left the country are coming back home was huge for this community. >> reporter: earlier construction has already started on this site, just a short drive from marshall's downtown, and although it won't be done until 2026, it will play a role in michigan's senate race congresswoman elissa slotkin, the top democratic candidate, said drawing a line from the new development to the biden law is important but tricky >> i've sat with people in my own town who have said, well, we're so thrilled to see all of

this new development, thank god president trump brought us that. and i said, that wasn't trump. trump talked about it, but he didn't do it biden did it >> reporter: michael hoover, a republican senate candidate opposes the law, saying that the government shouldn't be picking which businesses thrive. >> this is not quote/unquote an investment this is taxes. this is taking taxes out of the working class and telling them that you're going to hand that money over to ford motor company so they can build a plant and they can make billions of dollars. this is not how the country's meant to work. >> reporter: michigan's senate race could be one of the most competitive in the country and help determine who controls congress after 2024. frank? >> so emily, you're right in central michigan a lot of people don't know this, i used to live in michigan it's like two different sides of the state, if you're on thewes side or the -- >> same here that's such a coincidence. >> yes, small world, a lot of different divergent politics from where detroit is from the

other side where grand rapids is two different sides. will any of this move the needle statewide in 2024? >> reporter: i mean, it's a great question if you look around, one of the things that really struck me is i've spoke with folks in marshall, is that there's a lot of feelings about this development coming yes, there's an acknowledgement that there is a need for jobs, there's a need for economic development, but at the same time, a number of people have concerns about what kind of impacts bringing a big factory into a quaint, small town is going to wind up doing for the town and for the environment and just for the future of marshall. i think it really does remain to be seen how this shakes out politically. >> our emily wilkins, new series, "the money trail," we'll be looking out for these stories, big buildup to the 2024 election thank you so much. coming up on "worldwide exchange," the one word every investor needs to know but first, looking past the broader market and the s&p roughly where it was the hot sector of the mixture

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all right. welcome back to "worldwide exchange." live look right now, new york, we're still waiting for the sun to come up over in london, the trading day already underway hong kong, pretty much the end of the day same story in d.c. as in new york, still waiting for the sun to come up can't even see the capital i believe that's the shot we have right there time now for what we like to call your wex wrap-up. we begin with atlanta federal reserve president raphael bostic saying that interest rates are high enough and policy is tight enough to bring inflation down to 2% over a, quote, reasonable time frame he adds policy makers should be cautious on more tightening and quote, inflicting unnecessary pain bostic adds, however, he is not in favor of easing anytime soon. federal prosecutors are reportedly investigating tesla's use of company funds to work on a secret project internally described as a glass house for ceo elon musk. the u.s. attorney's office for

the southern district of new york is looking for information about how much tesla has spent on the project and any personal benefits paid to musk directly the white house is expanding export restrictions of certain high-end chips made by nvidia and amd to countries beyond china, including those in the middle east. they are indicatin curbs will not have an immediate impact on earnings, down fractionally in the premarket. shares of companies in the cannabis space are surging this morning on reports that u.s. officials are hoping to ease restrictions on marijuana use, including a downgrade from its schedule 1 status, the same status as drugs like heroin. and shopify is announcing an enhanced collaboration with buy now with prime service on its site and shares of online pet retailer chewy are lower,

telling investors they're expecting to suppliers to cut prices in the face of more price conscious and quote discerning consumers. shares of chewy down 5%. here's what to watch today initial jobless claims, core spending and chicago pmi we're on the lookout from earnings from chip maker broadcom, dell technologies and we were talking about it earlier in the show, lululemon boston fed president susan collins will be speaking in just a few hours at 9:00 a.m. eastern as well. all right. markets are gearing up for the final trading day of the month we're looking at futures right now, dow off of its highs of this morning, but still up just around 100 points. the s&p fractionally higher, the nasdaq lower salesforce and its earnings beat accounting for nearly all the pre-market gains in the dow, as we mentioned, up 100 points. the major averages coming off of their fourth straight positive session yesterday, with the dow, the s&p, and the nasdaq now all on track to end the month down between 1.5 and 2.5% let's get more insight into the trading day ahead and what it could mean for the month of

september with sylvia debalanceski, ceo, cio, and co-found of defiance etf sylvia, a lot of titles, great to have you here >> good morning, frank good to be here. >> what do you think right now, we're seeing the dow futures move higher on the back of that salesforce earnings report what does that tell you about the day ahead? >> you know, i think the day ahead is going to be interesting. we might see some volatility today, just because we have core pce numbers coming out so how the day ends matters a little bit in that i think that it's going to sort of, you know, plant a psychological seed for investors. if that number is too hot, all of a sudden investors are going to work, look, the fed is unlikely to just pause, but may hike, and then you get a pullback in equities i think a lot has to do with that it might be like the nvidia story the other day. we had nvidia earnings come out. they were absolutely wonderful, stellar, you expect the market to rally, but then the fed talk tempered the gains for that day. it may be that same sort of day,

stellar move, corporate america is holding up, great news. but let's see what that means for pce. >> pce coming up later this morning. it is the fed's preferred gauge when it comes to inflation with that potential inflection point coming up, what is your wex word of the day? >> my wex word of the day is actually dollar cost average i think that once you get these opportunities in the market, when you see a slight pullback, but you have this kind of steady ground of the future, where we're not going to get into a massive recession, most likely, you have so much innovation, corporate spending coming up, money on the sidelines going into the market. stocks can rally for the next few years, if you dollar cost average in, you pick up stocks at a lower price on these days, and it benefits you with your returns in the future. it's just a smart strategy for the long-term. >> so you know we're always looking for plays for this day as you mentioned, there's an inflection point potentiallily coming up with the ecb report. you're very hot on the travel trade. why would you put money in that area right now

>> i think travel has done s extremely well if you look at mofsome of the cruise names, they're up 100% year-to-date, and that's year over year, where you had the after-effects of covid playing into the story but, spending has gone from goods to services, americans are out there, actually globally, investors are out there traveling, they're spending money on experiences, on hotels, on airlines, on cruise ships, i think that they've had that, you know, ability to have premium prices and things like this. so the companies are benefiting. earnings seasons and remarks from ceos about forward-looking bookings are also really stellar. i think business travel is picking up, the spend is going there, it's a good place to look >> you have a bunch of picks for us you have another one in the ev space, it's etf, evxx, shares up about 30% year-to-date why would you money in there right now, and give us a sense of some of the top holdings. >> i absolutely love this story. i think when you think about trades and themes that are going

to play out in the next five years or so, that are actually going to that trajectory and you have forward-looking data proving it, that's evs this year they're posed to be about 14% of all cars sold globally that number set to double in the next five to ten years the top three holdings there are tesla, rivian, xpeng and some great stories, xpeng has had a recent rally because of partnership. they're picking up millions of users, that smart ev technology. they have a volkswagen partnership. tesla owns the world of ev, charging stations, massive growth on deliveries, it's the way of the future. government incentives are behind it it's trade >> just important to note, it's a defiance etf you're very bullish on evs and the travel trade great to have you here, as always thank you so much. >> thank you >> quick look at futures right now. we're looking at dow futures up 100 points right now the s&p up fractionally, the nasdaq futures down fractionally, as well. we'll have to leave it there

we'll toss it over to "squawk box" for much more have a great morning

good morning dow futures rising right now thanks to a jump in shares of salesforce we're going to dig through the company's earnings report straight ahead elon musk says audio and video calling its coming to "x," which is formerly known as twitter, of course, that comes after the company's new private company says it may collect your biometric data and cannabis stocks surging yesterday on word that the department of health and human services is calling for marijuana restrictions to be eased. it's thursday, august 31st,

2023 and "squawk box" begins right now. good morning welcome to "squawk box" right here on cnbc we are live from the nasdaq market site in times square. i'm becky quick, along with jon fortt and mike santoli joe and andrew are back off today. guys, welcome. a lot to look forward to today >> i guess we've got to fight now, mike. >> exactly right no doubt about it. >> all day, actually >> we're going to talk about marijuana stocks coming up and some wine waiting for us right over here. high times over here, unless you're looking at the nasdaq but the dow futures are up pretty significantly this morning. you're looking at a gain of 116 points we mentioned salesforce. we'll talk more about that in just a moment. s&p futures up by 2, the nasdaq down by about 24 and of