the 30-year at 4.89 reezing back and getting cloerz to 5%. it was moving closer to high tore 5% yesterday, bond yields easing across the board here. and should this selloff in bonds show some staying power, that's something jim cramer says can

set us up for a bigger move higher for stocks. >> we certainly have plenty for a rally. there's some a duraflame or two. we can get a repeat of what we saw in march. maybe all that needs to happen is for the frantic bond sellers to slow the pace of the sales. they don't even have to stop. they have to be less desperate. once that happens, we can focus on the stocks that have been crushed for weeks. >> much more on his comments and maybe another barbecue rmpbs coming up later in the hour. we're going to look at energy. its worst day sips september of 2022 with a 5% slide. we're seeing more downside action for oil. crude at 83.33.

that's the u.s. setup. let's see how europe is shaping up as its trading day gets underpay. we have much more on the early action. 12k3w4r we have only been open for a couple hours in europe. let me kick off with asia. we took a note from wall street. a rebound that we saw in yesterday's session fed through to a positive session in asia. we had a are bound overnight aross the board. the nikkei managed to gain 1.8%. but here in europe, it's been a slightly choppier story. and things have really taken a turn for the worst in the last 20 minutes. you have also seen u.s. futures take a little bit of a leg lower

in the last half hour. seems to be coinciding with renewed selling in bond markets. relief we saw yesterday that coincided in stocks on wall street, this morning we're seeing a reversal of that in europe. bond yields moving higher and we're seeing a downturn in equity markets. all of these were green a half hour ago. you can see sentiment is tu turning. a patch of green on the board. for context, the stock did retreat. it lost about 0.14%. we did close up before you had the bulk of the rally you saw stateside. a lot to keep an eye on in europe. >> thank you very much. great to see you. turning back to the u.s. markets, the impact of rising rates on stock not want expected to reez until the sharp rise reverses. that's according to a new note from rbc wealth management's

technical team. rising rates is a rising dollar. while many analysts have been siting 4200 as a support level, rbc says any break below 4,000 is a signal this year's cycle rebound is failing. for more let's bring in the chief investment officer at capital management. >> a lot of people have been saying it's really 4,000. do you agree or disagree? and what happens if we go past 4,000 in your mind? >> you're breaking the long-term trend, and that would really coincide with a continued reduction of liquidity. liquidity is critical. that's why everybody is keying in on the 10-year treasury yield. conditions are far more

restricted today than they have been in a long time. >> so we're going to be talking a lot about the yields and volatility. we have a rising dollar there. are there certain sectors you're staying away from? some you don't see as higher rates? >> anything with a lot of leverage where you have a debt stack that's going ton repriced because a company has maturities, they have to go to the market and borrow money. it's going to be significantly higher. we had a long period, an unusually long period of near zero interest rates. all that debt comes to when companies borrowed at low and has to be replaced with high rates today. >> yesterday we had had services ism. tomorrow we have the jobs report in your mind right now, where

are you falling? do you believe the fed will raise rates again this year? sglu don't think so. i think they are done. but what they it was really to raise rates at the longer end of the curve by essentially giving guidance that rates would stay higher. and i think the market just woke up to that reality. >> really, they have been saying it for so long? >> the 10-year telling it all. that whole yield structure just moved up. and since the last one. are we in asituation with the jobs report that good news is bad news? we keep going back and forth about this. >> our sense from talking to a variety of companies and sectors are things are remoderating. there's areas of the market, certain sectors of retail that

are weaker than others. but the overall economy looks pretty good because the long-term trends of reshoring to the united states those are in place. >> always great to see you. thank you very much. now we're going to get a check on the top corporate stories. >> good morning to you. more reports say the uaw has narrowed its differences on pay increases with ford, following a monday offer from the company that's led to what reuters describes as really active talks. the report adds uaw president plans to update members again this friday, but unclear will whe whether he will call more strikes or announce they have made sufficient progress to avoid more escalation. citi is boosting its forecast for gdp to 5% this year citing stronger than expected policy support and a, quote, clear cyclical bottom.

the bank had had had previously downgraded the outlook to 4.7% on the back of a disappointing post covid rebound and property sector head winds. and att is exploring options for its 70% stake in directv including an outright sale. at&t is closing in on its contract end date with tpg, one it formed in 2021, which valued directv at $16 billion. >> ever since they lost the sunday ticket, it's been hitting subscribe trs there. great to see you. a lot more to come here, including the one word that investors have to know. first, your big money movers and why they are hitting a road block ahead of the hope. plus cyber criminals hit lg the bottom loins of key consumer stocks. and the race for a new house speaker is getting crowded.

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welcome back. time now for your big money movers. we started with shares of clorox. quarterly sales and profit for its most recent quarter took a big hit due to a sign attack that affected operations. s a hacker was responsible for

the august breach. the same group is tied to attacks from mgm and caesars. rivet yan under pressure. sales estimates they were in line with what they were looking for. the they announced plans to make new in 2030. shares are down almost 9%. and shares of black berry are popping. the kpaeb plans to spin off its business through an ipo through the first half of the next fiscal year. separating its iot and cyber business units is the bests strategic option for the company. shares are up more than 4%. we're now turning to tech overseas. the uk's top anticompetitive regulators are launching a probe in amazon and microsoft. shares of both are down in the

premarket now. senior tech reporter joins me live from london with much more on the story. what's the latest? >> good morning. this comes after a month's hfs long investigation of the communications regulator into the cloud computing market. as a result of that, they found three areas of concern. one is something they called edegrees feel feasts and this is the cost of business moving their data from one cloud to another. these are significantly higher with companies like amazon and microsoft. the so-called hyperscale. the second is technical restrictions saying products from one company don't work with another. this prevents some services from working with rival products. and the third one is the discounting these companies use where they entice companies to spend more money and this discourages businesses from using more than one cloud computing provider.

we had a chance to catch up earlier with the consumer policy director to ask about this specific concerns around a.mazo and microsoft. let's listen in. >> we'd like to see a fair playing field for competition. i think that's making sure the business customers who learn the cloud can switch and use multiple providers easily. without those, providers are challenged and grow their business in the uk. and actually have a much wider product set that looks attractive to businesses. >> so they are saying it's harder for businesses to find a good deal with cloud computing, it's difficult to switch between different providers and difficult to use more than one cloud colt puting provider as well. they are saying that because of some of these practices, it's potentially more difficult for smaller competitors to compete with some of the tech giants, particularly microsoft and

amazon, which has an 18% market share in cloud computing. so now sending this to competition and markets authority. the same regulator who is looking at that microsoft deal here in the ux for them to further the cloud computing market. >> clearly, they are worried about competition. they did point out that google cloud has 10% market share in the uk. so it's not a complete monopoly. there's another large player. in your mind, what are the next steps? what are you expecting from these regulators? >> yeah, they are concerned. google is a distant third. there needs to be space for many. what happens next is the competition and markets authority will look at the broader cloud market, take into account some of the concerns that they have raised. they will look at it more broadly and look at some of the structural issues, and in a few months, they will come up with a bigger document around what exactly is the scope of their

investigation. what are they looking at, what are they concerned about on the competition front and eventually they will conclude with their findings of the investigation and potentially some remedies for these companies, what they might have to do to allay these fears. this will take up to potentially april 2025. so another sort of 18 months or so down the line. this will take some time, but there's a lot to look into here. so clearly there could be some big changes for these tech giants. if they do find there are potential distortions in the cloud computing market. >> so clearly, just the beginning of this process. do we have a sense of whether they are willing to work with regulators or do they plan to fight them in court? >> they are very willing to work with regulators. we have seen that here so far with microsoft is a great example with its $69 billion proposed takeover of that. the cma initially blocked that deal.

then invited microsoft to bring back a new proposal. and they have done so and the regulators in the uk are looking set to clear that in the next couple weeks as well. so clearly, the tech giant willing to work with regulators here. the key for me and whether this is going to have an impact for investors, does this investigation result in any significant business practice changes for these cloud computingen giants that really creates a slowdown in growth or impacts profitability in any way. a the this point in time, there's no signal this could be done, but clearly that's what investors will be watching for going forward as this investigation progresses. >> thank you very much. coming up, closing the pay gap. one of the largest minority populations here in the u.s. new data on the latina equal pay, after this.

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that was estee lauder brand president, cnbc celebrates hispanic heritage with influential business leaders. we have some fresh insights on how companies are working to close that gap. brandon, good morning. >> it's ten additional months latinas have to work to earn as much as their nonhispanic male counterparts. there's no catching up. latinas working full time around earning 57 cents to every $1 paid. a 40 year career that's $1.2 million lost. enough to pay for nine months of child care, six months of rent,

14 months of family groceries. you have to remember, too, la teinas are one group. argentina women earning 1 every day. ahead of to tomorrow's jobs reports, latinas are disproportionately represented in the low pay work force. industry leaders aren't simply relying on employment growth to close the gap. latinas with professional careers in higher tiered positions not necessarily faring any better. 2.5 million over their career. what have companies done.

conduct wage gap internally by race, gender and disclose their results are more likely to close the gap. currently 4% of the russell 1000 companies, starbucks, microsoft, ge, among those names that are leading the charge in closing the gap. >> thank you very much. such an important story. pay equity and access to capital some of the topics on the agenda in new york city as cnbc hosts the next generation of leaders. interviews of hispanic business leaders. for more go to cnbcevents.com. time now to get a check on this morning's headlines outside the world of business. jessica in new york with the very latest. good morning. the first two republicans

put their names up for consideration to replace kevin mccarthy as speaker of the house. first, steve scalise of louisiana, currently the house majority leader and second in command in years. and also ohio's jim jordan, the chair of the house judiciary committee, he made a name for himself as a defenderer of former donald trump. a funeral service will be held for late senator dianne feinstein. today's service will also be at city hall will feinstein launched her trail blazing career as that city's first female mayor. and now let's jump over to gymnastics, simone biles leading team usa to a record 7th straight gold medal al worlds. . th time that she medal on the

world stage. biles and shilese jones will compete individually on friday. >> a good one right there. i'm looking forward to the olympics in paris. >> nine months away. >> going to be a good one. all right, as we head to break here, we'll give you today's big consumer stat, it's 69%, more than two-thirds of consumers with student loans said they're cutting back on spending according to keyback's consumer survey published this week. resumption of student loans remains a significant headwind. we'll have the metrics to watch ahead of earnings coming up ayitusafter this. st wh .

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around 5:30 in new york city area. here's what's still on deck. the relief, the slide in stocks looking a short lived. futures are facing are some pressure ahead of open. constellation brands on tap, we talked to one investor. and women making progress the workforce, where advances are being made. it's thursday, october 5th. 2023. you're watching worldwide exchange right here on cnbc.

welcome back. i'm frank holland. check on u.s. stock futures after that wednesday's stock hop, right now however we're seeing red across the board at session lows right now the dow looking like it opened 130 points lower, the s&p and nasdaq both lower. we're also looking at the bond market, yields slightly off yesterday's highs. benchmark 10-year 4.74. 2-year still above 5%. lot of downside movement when it comes to 30-year, the long bond right now at 4.88. yesterday it was inching closer to a 5% yield. we want to talk about oil, coming off its worst day in more than a year. brent and wti both below 86. brent crude, the international

benchmark down just about a half a per cent. more of a move of natural gas to the upside. moving higher from earlier in show. now we want to look ahead to some earnings. constellation reported its earnings about two hours from now, earnings are up from april. overtaking bud light to become the top-selling beer in the u.s. revenue and earnings to increase. and margins to 33.2%. constellation has targeted 30% to 40% par gins for its beer portfolio. guidance is the key metric to

watch. constellation brand sales surged higher over the past three months with modelo, seeing a 50% sales increase compared to the overall beer market. mike, good morning. great to have you here on worldwide exchange. you're an investor in this stock, give us a sense if you're long or if you're short. >> yeah, we're long on the stock, we're generally long investors overall, you know a couple of things i like about it first, we'll talk about this space, you were just highlighting the fact that we see some increased market volatility here and in an environment to have a lower beta constellation fits there. you know something else to like about it, it's trading at a

slight discount to the market, to own its peers in the u.s., i should point out, not internation fally necessarily. and you know i think you want to be in noncyclical businesses in an environment like this. a company has decent free cash flow, highlighted some of the growth they've seen, that growth is probably not going to be quite as sustainable in the long term. they had the benefit of that boycott they took over a lot of the sales that inbev lost. that's probably taken its course. >> all right, also i want to talk to you about this current rate environment, are you concerned that it could hurt consumers going forward?

>> you know, we're obviously right in the football season, that's obviously a big thing to watch, i think that's going to be an important part of it but i have a feeling that this is probably one of the things that consumers are not necessarily going to cut back on, i mean there are other places that they're getting pinched but i don't think necessarily things like modelo the leading beer sales in the country, necessarily going to see big pullbacks. >> mike, some sound from the molsom coors ceo on mad money last might with jim cramer and he talked about his company moving beyond beer, take a listen. >> we're moving beyond beer, nonalcoholics, whether they're energy drinks or nonalcoholic beers, one of our bigger innovations a big deal for us, is the launch the blue moon in

time for dry january. it will play right into this space. >> all right that was the ceo talking about beer company offering some nonalcoholic offerings, constellation brands, doesn't have many nonalcoholic offerings. are you worried about the lack of diversification? >> you know what, i think that's really good point you're making because one of things that we have seen there's basically more flexibility in what consumers are going for in the beverage space and, you know, that brand loyalty thing, i think the bud light issue highlighted the fact that it's not as secure as some people thought. this is core kconstituency they have.

so i think we really sort of have to highlight and fuss on that because everything else they're into things like cannabis they have a big share, those are really opportunities and really we're going to be focusing most of our attention on how their core brands are doing. >> we'll take a look at those shares right now the entire cannabis sector under pressure, shares down 66 .year to date, are you concerned about the canopy investments that it real will moves -- >> this represents an opportunity for this company, the revenues they get from this area are less than 4% of their total revenues and that's less half of the incremental increase in their beer revenues year on year for the 12 months ending in february of this year, so this simply represents an opportunity, even if it went to zero it's pretty much a rounding

error for them. >> mike, we really appreciate you being here and sharing some your insight. top corporate stories. frank, apple reportedly weighed going in a different direction from google for its safari web browser. according to trial revealing ap apple switched to duckduckgo for its search engine. on the idea before apple decided against it. meta officially rolling out some of its first generative a.i. tools for advertisers, the tech will allow them to use the a.i. to create backgrounds, expand images and generate multiple versions of ad text based on their original copy the move

marks meta's first move of including generative a.i. tech in its products. to tap into past data for new content. and women are making gains in corporate america from lean in and mckinsey. women representation in the c-suite has grown 28% the highest it's ever been. still progress to be made. the report revealing for every 100 men promoted from an entry level job to manager, 78% women, 73 women of color are promoted, frank. >> we'll continue to watch that. thank you very much. we're now turning to the fallout of massive money laundering scandal if singapore the focus of that rapidly growing scandal moving to china.

our robert frank join us with more on this story. robert, good morning. >> reporter: singapore authorities freezing assets worth more than $2 billion in a money laundering probe that's quickly expanding so far they've seized 152 properties, 26 cars, gold bars and jewelry, ten people have been charged so far with laundering proceeds from illegal gambling and other operations the suspects are all from china or have links to china. this scandal has exposed a wealth flow from china into singapore. much of it from china. hope to move money out of the reach of government crackdown. singapore depends on its reputation for a clean and well policed financial system, authorities there now working with the big banks to try and figure out where the gaps might

have been, officials also looking at the potential role of family offices, the private investment arms of very wealthy families the number of family offices registered in singapore has more than tripled since the pandemic to over 1,000. family offices have minimal disclosure requirements and until recently they paid no taxes. singapore became a global capital for these family offices, the big question now is whether they were involved, they become a popular vehicle for money laundering and whether that changes the policy in singapore. >> robert, pretty eye-popping number there, 1$1.5 trillion leaving in 2022. what has shy ma's position in. >> they've been trying to stop it. china takes this on again offagain strategy when it comes to overseas wealth. when china was doing well they

turned a blind eye to the wealth moving overseas. now with the need for capital in china they're absolutely cracking down, questions fact in singapore as whether singapore cracked down on this laundering probe which had been going on for quite a while at the behest of chinese authorities, singapore said no, we did our own investigation, we cracked down on laundering when we find it, but this is something that's clearly many line with the chinese policy of right now making sure that no more money or certainly less money leaves china because they need all the capital they can get right now. >> all right robert frank, very important story there. always great to see you. thank you very much. coming up here, british regulators taking fresh aim at amazon and microsoft over their cloud dominance. what officials are telling cnbc this morning. trending stories, popeye's

the number two chicken chain in the u.s. barclays said popeye's and kfc have lost market to ch chic-fil-a. walmart operations said there's been a slight pullback in overall purchases, less units and slightly fewer calories. the astronauts wears prada, helping to make spacesuits for nasa. prada was chosen for its expertise for using mftacoorble materials. we're back on "worldwide exchanges" in a moment.

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welcome back. time now for your morning call sheet. we begin with instacart, $30 price target, market leader with value in its digital advertising business but it's warning market share and dollars will be hard fought. shares of instacart this morning, down .5%. citi said recent pullback in shares represents a stable buy

opportunity. shares of o'reilly this morning flat in pre-market raymond james cutting its rating on clorox to market perform, citing big cyberattack will cause the need to promote. time now for your global briefing. we begin with shares of chinese property sunac popping. the first major developer in china to win such approval and comes nearly two years after the company first defaulted. rival evergrande so far hasn't been as lucky. irish high court examining amgen's proposed acquisition of horizon. if approved the deal is expected to close shortly after. this following the ftc's

approval of the deal last month under a settlement agreement. the uk's top anti-competitive regulators are launching a new probe into amazon and microsoft over market dominance in cloud computing. ofcom's policy director telling cnbc this morning it's all about making competition balanced. >> what we'd like to see is a fair playing field in the market. making sure the business customers who rely on the cloud can switch and use multiple providers easily. allow providers to grow their business in the uk. >> all right coming up here, the one word that every investor needs to know today. and the potential tinder that cldou spark a market rally.

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all right, welcome back. time now for your wrap-up. challenges setting up two fabrication plants in arizona citing culture shock from the company's first overseas development move, those shares right now they're up about a third of a percent shares are under pressure despite quarterly sales estimates coming in line the company announcing plans to offer $1.5 billion worth of new convertible notes due in 2030. alstom shares plunging overseas due to negative cash flow. shares down more than 37 . blackberry shares are moving h higher after spinning off an i. o next year exxon is expecting third-quarter to rise due to higher oil, gas and fuel prices, but chemical margins are getting thinner, shares of exxon down

1%. and the mcrib, it's back. one year after its so-called farewell tour. mcdonald's say the mcrib won't be available nationwide. it's back for a limited time. all right, here's what to watch. initial jobless claims are out ahead. we're also watching day two of ftx founder sam bankman-fried's trial. a tree yes of fed speeches. all right, back to the markets, looking to get back some of yesterday's gains as investors look ahead to potential impact of tomorrow's jobs report. jim cramer said he's watching the payrolls and he's watching them closely and a potential spark for the market if this number comes in lower than expected. >> certainly have plenty of tinder for a rally, there are

some kingsford laying around, a weak payroll number on friday i think we can get a narrow repeat of what we saw many july. maybe that's needs to happen is to slow their pace of their sales, they don't have to stop, they have to be less desperate. we can focus on the myriad of stocks that have been crushed for weeks. >> adam, welcome to worldwide exchange. you just heard cramer, his theory is if we get a weaker than expected jobs report markets are set for rally, agree or disagree in. >> i agree. there's a lot of anxiety about the economy being too strong and inflation being too high, if you see the reports from the bureau of labor statistics confirm what we have seen from adp, if you see a short payroll tomorrow,

give a further boost to treasuries similar to what you saw yesterday. however, you know, to extent that you start to see data deteriorate going forward, a slower growth outlook, which is why i think sustained rallies if the market up to about 4500 should not be chased. a more somber outlook. >> futures right now, dow futures down about 120 points, even though we have seen bond yields ease a bit, what are you expecting from today's action, are you expecting any rebound in bond yields? >> i think the jobless claims at 8:30 will be an interesting data point to watch, the all-time indicator we get for the government as far as underlying economic activity, very low for a while, it has certainly not indicated any softness in the labor markets, that will be an

important indicator, it's healthy that you're not seeing a really sharp fall in stocks this morning. sustained rebounds are borne out of skepticism, fear and pain. another really sharp rally in the futures i'd be skeptical of it. it's encouraging of sustainability move higher. >> we're focused on today, so right now, are there any sectors would you put money in? >> the sectors that are going to benefit from a drop in yields but also not that economically sensitive like utilities or pharma stand out given how i see things playing out, i do yields have downside risk as economic activity deteriorates, utilities and pharma are two groups that

give you exposure. >> also, we're seeing microsoft and amazon in the crosshairs of regulators in the uk, those shares down a bit right now in the pre-market, are you expecting this to be a tough day for megacap tech? >> i don't think so much the move out of uk is big deal. in the u.s. google with doj. amazon battling an ftc lawsuit. those are the much bigger threats than what was announced in the uk today. broader pattern of these companies coming under enormous regulatory scrutiny. the google trial and then the outcome of the upcoming amazonama amazon/ftc trial. that does it for us on

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good morning. speaker's race heating up. steve scalise and joim jordan making their pitch to colleagues. uaw and ford have narrowed the gap on wages, details straight ahead. plus clorox said a recent cyberattack said it could hit net sales by 28%. the attack has been contained. it's thursday, october 5th, 2023. "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" right here on cnbc. i'm becky quick along with joe kirwan and andrew ross sorkin. yesterday we saw the markets higher, this morning you're looking at some red arrows, dow futures in particular are down, off by 126 points, the s&p indicated down by 16. the nasdaq down by 45. this all comes after a rebound of the major indices yesterday. because we were looking at yields that finally came down because of the jobs report, you'll see right now for the week the dow is down about 1.1%. the nasdaq is still is in positive territory but