it is 5:00 a.m. here at cnbc global headquarters. here is the "five@5." breaking news. uk regulators give the green light to microsoft's $69 billion deal for activision-blizzard. also a developing story in washington as well as steve scalise says he is no longer interested in becoming the next speaker of the house. israel calling for the evacuation of civilians in the gaza strip as they look for a

ground open ffensive. later on, investing in the 5% world. we will cap off with two of our favorite stock pickers with us. you are watching "worldwide exchange" here on cnbc. good morning. welcome to "worldwide exchange." i'm frank holland. happy friday. we kickoff the hour with the check of the futures with the averages just trying to hold on to slim gains for the week after a rough session yesterday. take a look. it is a mixed pictpicture. s&p up fractionally. we are also checking the bond market. the yields are ticking back up. ten-year yield is 4.64%. down 25 basis points from earlier this year.

the two-year note is back above 5%. the 30-year bond is back toward the 5% yield. we will talk higher for longer later on in the show. we are looking at the energy market. specifically oil. wti is at $85.32 a barrel. up 3% this morning. brent crude is up 2.75%. natural gas is tumbling down more than 1.5%. the flight to safety with the gold on pace for the best week since march. it took a bit of a dip, but broader trend as we see the israel and hamas war heating up. we will talk more about that later on in the show as well. we begin with breaking news overseas and sigh of relief for microsoft and investors. the uk top competition

regulators giving the green light to the $69 billion takeover of activision-blizzard. we have arjun kharpal with more on the story. >> reporter: good morning, frank. uk competition and markets authority cleared the $69 billion acquisition of activision by microsoft. it comes after microsoft restructured the deal after the cme initially rejected microsoft's first proposal. microsoft would transfer the cloud streaming rights for all of activision's pc and console titles to french gaming company ubisoft. ubisoft will license the game out and sell under different business models. this was a concern for the cma because the deal would give microsoft a lot of power in the cloud gaming market and it was a concern that microsoft could take activision hit games like "call of duty" and keep it

exclusive on xbox. to allay the fears, the cma says microsoft won't have a stranglehold on the rapidly developing gaming market. a word on cloud gaming. it is new and young. the idea is you will be able to stream games as you stream a show on netflix and it removes the idea of a hardware console and you can use a controller and your tv. this is a big step and allows microsoft to complete the deal. frank. >> not a lot of momenvement wit the stocks. has the cma lost credibility not holding the line with this deal? >> reporter: the cma said something interesting today in statement. something unusual for a regulator. it said businesses and advisers should be in no doubt that the

tactics employed by microsoft are no way to engage with the cma. called out microsoft and accused them of dragging out proc proceedings. saying it wasted time and money. this is a punchy statement. after brexit, the cma wanted to assert itself as a keir py play. it is forcing microsoft to give up concessions. the second point here is the credibility was under question as well. by shifting some of the blame to microsoft, it is showing the reason this has taken so long and the last regulator standing also was allegedly partly microsoft's fault in not putting forward the proposals in the first place that the cma required. this is important because the cma is looking at a number of other u.s. tech companies. it is looking to the cloud computing market here in the uk in which amazon and microsoft

are under fire and the deal with adobe as well. it is central to the proceedings going forward. >> arjun, thank you very much. we turn to washington and breaking news from capitol hill overnight hours after being nominated to be the next speaker of the house. steve scalise says he is dropping out of the race. we have rie jackson with more from d.c. >> reporter: good morning, frank. there is still a lot up in the air. it is unclear who will run for speaker and when a vote could happen. house republicans are expected to meet again today at 10:00 a.m. they will try to pick a new candidate. it is back to the drawing board for the house after majority leader steve scalise told republicans he was dropping his bid to be speaker. scalise said it became clear he was not going to get to that 217 threshold needed to be elected

speaker if the vote went to the full house. take a listen. >> i just share what my colleagues said and i withdraw my name as the speaker candidate. if you look at the last few weeks and where our conference is, there is still work to be done. our conference still has to come together and it is not there. >> reporter: now scalise's decision, once again, throws the house into more turmoil. there is uncertainty about who can find new votes to become speaker. frank. >> brie, i want to ask you about the unsrceruncertainty. are there any names? >> reporter: there are several possible names. jim jordan was asked about this last night by reporters. he did not say whether or not he would run again. he did run against scalise for the nomination. jordan said out of respect for

scalise, he would wait a little bit. kevin mccarthy, who was just ousted from the position, refused to say if he would be willing to run again. we have heard other names such as hearn thrown out there. we know the clock is ticking for the house to elect a new speaker among other things. israel aid could be tied up as this fight drags on. the government is expected to run out of funding on november 17th. that is something lawmakers need to discuss. we're keeping an eye on the meeting today to see if other names are thrown out for who could be running for speaker. frank. >> brie jackson live in d.c. thank you very much. turning attention back to wall street. earnings season kicking into gear with jpmorgan chase and wells fargo and citi and many others set to report before the opening bell about. our banking reporter hugh son is

joining me now. what do we know ahead of the report? >> reporter: frank, the big focus is what is the impact of the move in yields on the balance sheets of banks. when yields blowout as they did in the third quarter, that tends to reduce the bonds banks hold. that was one of the factors of the march regional banking crisis that consumed svb and first republican. higher borrowing costs impact the demand for loans. people are not taking out mortgages or corporate loans. they tend to increase the losses on loans. that is something we are looking out for here. there is a sdynamic that kbw thinks will reduce 18% in the third quarter for the banking industry. when you think about it, it will pressure not the jpmorgan chass

of the world which is adept at the volatility management, but others like comerica and key bank will have the biggest hits to the bond holdings. >> hugh, a lot of short selling and the regionals. are we expected to see that continue in the higher for longer environment? >> reporter: i would say so, frank. as long as interest rates are elevated and that caught banks flat footed here means you will see that from short funds. there is higher short positions than the third quarter. conversely, i talked to a couple of analysts who said the set up for bank stocks is beaten down this year and in recent weeks. it is looking for a short

squeeze. as long as bank earnings are not as bad as feared and that bad news is accepted in the market means you will have a relief rally. that is the believe of several i spoke to. >> hugh son, thank you very much. we turn to a developing story. the war between israel and hamas in the seventh day. the united nations confirming israel is asking the population in the northern part of the gaza strip to relocate in the south in the next 24 hours. that would impact 1.1 million people. the u.n. is calling this request impossible and one that cannot be carried out without devastating humanitarian consequences. nbc's kelly cobiella is joining me now from jerusalem with more on the story. kelly, over to you. >> reporter: frank, good morning to you. this evacuation order came in

the early hours of the morning. several hours ago. the clock is ticking on the people of gaza and in the north told to evacuate to the south. half of the population of the gaza strip is in that part of the territory. the u.n. saying this really is not doable without a severe humanitarian crisis evolving. keep in mind that israel has continued to bombard gaza overnight. 750 targets struck overnight. the infrastructure is damaged. lots of roads destroyed and collapsed buildings throughout gaza city and other parts of the gaza strip. simply getting people on the move and heading south is difficult logistically. you add on the complication of the gaza's largest hospital in gaza city in the north.

that is where people have taken refuge and having to move an entire hospital in less than 24 hours now to the south is practically impossible. all of this apparently clearing the way and paving the way for israel's ground offensive which hasn't been declared by the government or politicians. that is clearly the direction that israel is heading. here in jerusalem, hamas has called for a day of rage today. friday prayers begin in a few minutes now. the hamas has an cacalled on pe to protest in jerusalem to rise up against police in the occupied west bank. it is a volatile situation here already. it has brought 24 palestinians killed in the last six days. last night, as we arrived, the

palestinian gunman opened fire on a police station not far from here injuring two israeli police officers. he was then shot and killed. a really volatile situation here in jerusalem. 2,500 police officers on the street. worshippers older than 50 are actually being allowed in here. israeli forces trying to keep the situation under control. frank. >> kelly, thank you very much. you stay safe as well. kelly cobiella live in jerusalem with the latest. thank you. a lot more to come on "worldwide exchange," including the one word investors need to know today. we cap off the series with actionable ideas from two of our favorite stock pickers. and why the ceo of build-a-bear is not bracing for a slowdown. despite trends to the contrary. a very busy hour still ahead when "worldwide exchange" returns.

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welcome back to "worldwide exchange." we will go back to washington and a news alert from the white house on the 2021 infrastructure bill focusing on clean energy. we have diana olick with more. >> reporter: good morning. the baiden administration announced the seven clean hydrogen homes selected to receive $7 billion of funding from the infrastructure law. administration officials said the hubs are not single

production facilities. they are using a fuel which emits no carbon dioxide. this will move to the hydrogen economy first. it will be public-private partnerships. the hubs will create tens of thousands of jobs and officials said bringing the total investment to nearly $50 billion. one of the largest investments in it clean energy thus far. of those hubs, the appalachian hydrogen hub which covers west virginia and ohio and pennsylvania is a crossroad. some of the companies signed on to work with it include baker hughs and nucor and enbridge. this is the largest total money invested. companies involved in that are ge and gm and microsoft and

chevron and amazon and boeing. officials say the hubs are expected to produce 3 million metric tons of hydrogen per year which is one-third of the target. a big move toward clean energy. >> diana olick reporting live from d.c. thank you. as we head to break on "worldwide exchange," ford says a 23% raise is the best it can do any d any higher would hurt e company. shawn fain is expected to address the union today at 10:00 a.m. with an update. we have more "worldwide chge." after this. ot this. we got this. we got this. we got this. life is for living. we got this. let's partner for all of it. edward jones

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(♪♪) our therapists give their all each day. and while we're in the business of taking care of others, it's important to make sure our therapists know that with benefits from principal, they're taken care of too. (♪♪) welcome back to "worldwide exchange." take a look at futures. they have turned red across the board. the nasdaq is down about .25%. we will continue to watch this. futures turning negative a short time ago. turning to the retail sector. we are six weeks away from black friday and the shopping season. we have the big consumer stat. 58% of digital executives are concerned about heavy credit card and buy now and pay later use and how it impacts consumer spending. our next guest says she does not expect a slowdown in the near

future. sharon price john is the ceo of build-a-bear. >> good morning, frank. >> i think build-a-bear is something for kids. are you not expecting a slowdown because this will be a product bought for kids? >> there is some aspect of that as we are kid based. 40% of sales are for teens and adults which is a reflection of a long-term shift for us and multigenerational. the more important data point would be that as we announced in the second quarter call, we have been out pacing traditional traffic which has been reported by 144 weeks on a consecutive basis. i think some of what we have been doing is understanding it is not just traffic which is involved in sales, but the four letters of retail.

traffic, conversion and dollars per transaction and units per transition. and the fidget economy with the destination which is a reason for consumers to come and allow them to shop the way they want so they can buy online and ship to store. a lot of opportunities. >> i want to talk about that digital economy. a lot of concerns about the commercial real estate sector and retail being soft right now. you are opening up dozens of stores. why are you focused on brick and mortar? why are you not pushing to online? >> i can't say we're focused on brick and mortar. the core of the strategy is diversion -- diffiversificadive.

we are seeing trends on that. i believe it would be a good use of capital to continue to evolve the business. that is a big reason we loyalty. that drives the first party data. >> how are rates higher for longer impacting your business? i know you said stores are prof profitable. does it change the opening of new stores and the inventory? you see build-a-bear, you have to have inventory. >> we are good at inventory management. we have have proven that over the course of time. we are able to turn that inventory into cash rapidly. you know, we are from a retail perspective with that type of profitability in stores, it is a good cash flow organization. it is not impacting us directly.

>> what about customers? >> a customer is a cross section of the economy. there will be impact there. we are seeing shifts in those four levers from the traffic and dollar s per transaction. we noted in the second quarter call to see improvement versus prior year. >> sharon price john, great to have you here. i'm glad you said they are not just for kids. i looked at the star trek nebula bear. i might buy one. >> go online. experience it. >> thank you. i appreciate your time. straight ahead here on "worldwide exchange," saying a new ev sales report shows it is not stopping the sector entirely. more wex coming up after this. (sfx: stone wheel crafting) ♪

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it is 5:30 a.m. in the new york city area. a lot more ahead on "worldwide exchange." stocks looking to shake off recession fears. big bank results released in the next hour. the critical metrics investors need to watch in the reports. we cap off the special on managing your money in a world of rising rates and what higher for longer means for your stocks

and invesinvestments. it is friday the 13th of october. you are watching "worldwide exchange" here on cnbc. good morning. the welcome back to "worldwide exchange." i'm frank holland. we pick up the half hour with the check on stock futures. futures are in the red across the board. po you see it here. nasdaq is the hardest hit down .25%. we are looking at the bond market this morning. we kick it off with the ten-year yield at 4.64%. down 525 basis points from earlier this month. remember, this is a read on inflation expectations and investor confidence. we want to look at the energy markets. oil is trading at $85.49 a

barrel. brent crude is $88.58 a barrel. natural gas is down 2% right now. we are watching shares of microsoft and activision-blizzard. the regulators in the uk gave the green light for the takeover the activision. shares of both companies moving lower. microsoft down .13%. we will continue to watch the stocks. earnings season is kicking off with big banks reporting. jpmorgan chase and citi and wells fargo and pnc. top of mind for investors is portfolios and net interest margins as higher rates weigh on loaning growth and deposit costs and customer real estate. joining me now is stephen

biggar. >> good morning, frank. >> what banks do you have a buy rating on and what is most influ influential? >> i think jpmorgan chase sets the stage for the quarterly earnings here. you have a bit of an outlier with the acquisition of first republican. they acquired that on may 1st. we had a partial quarter in the second. this will be the first full quarter. as we look at the underlining trends, diversified banks had been the place to be. they held upper than the regional banks. at the same time, they are impacted by the higher interest rate environment. you will see more slow loan growth. >> jpmorgan chase is the most influ influential. can you run down the ones with a

buy rating on? >> sure. in addition to jpmorgan chase, i would say bank of america. the large consumer franchise helping to benefit and offset the weakness in capital markets. morgan stanley with the vast wealth management franchise. truist with the bump of insurance operations. people will gladly see higher capital there. pnc as well which is doing well. >> a large regional bank. i want to talk about the core business which is loans. what do you expect with net interest income? the spread of what they get from loans and pay on deposits? >> the trend is higher deposit costs. that will be seen again. the deposit crisis in march and

april will see stabilization now. i'm less worried about the loan mix. that figure has been up 80%. today, we're in the low 70% range. over time, they are paying more for deposits. that will be a squeeze on margins. against zero interest rates, banks are in a better position today. >> steve, you brought up the squeeze. we he had hugh son on earlier. he expects to see more short selling with the rapid increase in rates. what do you expect? will that create more volatility in the sector with the regionals specifically? >> sure. the regional banks have been under performers this year down 30% or 35% back toward the marlos. i think at this point we have valuations that are 25% below where they would trade. a 12 pe is 10.

and a 10 pe is now a 7 or 8. you take a big risk on the short side that you stay in these for too long. if earnings are moderately good this quarter, i think the bank group looks good here with these deep valuations. >> we have to watch. jpmorgan chase kicking off. stephen biggar, thank you. coming up on "worldwide exchange," we have a wrap up of what this means for your money as we dig into equities. as we head to break, what experts have told us about higher for longer with the fed's next move to housing. >> they looking at the move in yields and saying this is doing our job for us and we just have to let it keep going. this will put pressure on the economy and sectors overall. >> it is the combination of the

higher prices and speed in the interest rates that is the psychological barrier that many are facing here. >> when rates move this dramatically this fast, often times something breaks. we have seen that in my 40-year career. it can create disruption in the marketplace. i think it is a good opportunity to step into bonds. >> it is a very tough environment out there. investors are finding out new things to ask like margins and profitability and how you can have a stable growth and long-term profitability. it has a huge impact in how we assess each business p. best fris . at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors, the garcias, love working with you. because the advice we give is personalized, hey, john reese, jr. how's your father doing? to help reach your goals with confidence.

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welcome back to "worldwide exchange." we are looking at the higher for longer interest rates and for investors, it comes down to the bottom line and returns. bob pisani lays it out. >> it means more competition for investor dollars and that is troub troublesome for the stock market. today, those one-year t-bills were below 3% and 2% in last ten years. today they are approaching 5%. at the same time, the fed says

they will stay higher for longer. treasuries are considered a risk free rate of return. an investor can just about guarantee they will get their money back. for a long time, treasuries did not yield enough to make it worthwhile. not any more. 5% is a good risk-free rate of return. stocks do entail risks. that is why they generate higher rates of return than bonds. this year, the s&p 500, the benchmark for stock returns, is up 13%. this is out performing the bond market. you think investors wiould dump the treasury bonds and invest. many look at the confusion and don't believe the stocks provide a risk-reward profile. they see higher borrowing costs to crimp corporate profits and they see scaled back capital investment and fewer companies

going public. the hope for the stock market is yields will flatten out and the economy will avoid a recession. if that happens, stocks will have a better shot at attracting some of the money it has lost to bond holders. back to you, frank. >> that was bob pisani. joining us with more is jenny harrington and gordon johnson. great to have you here. good morning. >> thanks. >> good morning. >> i'm going to start off with jenny. higher for longer. how does that impact for you? you are known as our resident dividend investor. does that change the thesis? >> not at all. it really is because of the inflation component. that 5% sounds really great, but it sounds better with 2% inflation. right now, cpi is at 3.7%.

your real rate of return on the 5% treasury is only 1.3%. if you buy a treasury bond and you are getting 5% and holding until maturity, that is all you are getting. the coupon yield maturity will not grow. on dividend stocks, the average growth over the past 70 years has been 5.7%. not only do you have potential capital appreciation, but because they're stocks on the share price, but you have the dividend growing. that out paces inflation in an important way. one more thing, frank -- >> higher for longer, you are still bullish on dividend stocks? >> even more so. >> gordon, you are active on the options market. particularly short selling. if we see the higher for longer continue, what sectors are you

looking at with options? >> we're very negative right now on solar. simply, the bulk of solar whether on the rooftop or utility bill is funded with debt. the cost of debt has sky rocketed higher. demand for solar has collapsed. the index is down 32% year to date. the recommendation today is to short a company named solar edge. you had a major player come out with negative revenue. you are seeing the decline in solar demand. the solar stocks have been hit. we think it will be worse. >> bank of america put out research saying if yields stay stable below 5%, the s&p can avoid a big drop.

the bottom is essentially 4,200. jenny, back to you, agree or disagree with the thesis from bank of america? >> i agree with that. that is a simple math equation. you take what is expected on earnings next year. all it 247 and put a current multiple. you have 1.5% or 2% around it. that is not that audacious a call. >> fair enough. gordon, same question for you. 4,200 is about 4% drop from where we are now. bank of america is saying if yields are below 5%, that gives us downside protection to 4,200 for support. >> i just don't think that is the case. i think yields are headed higher. cpi inflation is now up three months in a row. keep in mind, frank, that healthcare adjustment they did

last year where healthcare costs in september were down 38%. that is not reality. that is a clerical adjustment. that headwind to inflation is a tailwind in october. i think because inflation is headed back up, rates will go back up. i think the bonds are back. the fed is losing control here. >> the bond vigilantes. gordon, if you think we are going up to 5% and you have another sector to short again -- shorting is a big part of your company and how you generate revenue, right? >> well w, we're not just focus on shorts. the ev sector. last year, the prices were up 8%. you had a bunch of new companies spring up out of nowhere because capital is effectively free. you have more cars and price

wars. we are seeing that reflected. that will be reflected with the ev stocks coming under pressure. >> jenny, i know you are looking at higher for longer. i know you were shaking your head when gordon said it is going above 5%. what is your take on the environment? >> that is where i disagree with gordon although i love his short ev play. i think we're at 5%. i'm looking and saying are we steady from here or plunging or fading or going up? we think it is 5% and fading. it may be a steady, but a fade. that is because the fed is done tightening. they are rolling off the balance sheet, but rates don't go up higher from here. it is 5% and fading, but the 5% is inflation and not because of economic growth. it is crazy drunken sailor government spending. we like companies that are low

multiples and high growth and cisco and united rentals. some have been punished with leverage. they have really low multiples and steady and predictable earnings growth. >> gordon and jenny, thank you. to wrap up higher for longer week, thank you. i appreciate the picks. coming up on "worldwide exchange," the one word every investor needs to know today and we gear up for big banks results. more wex coming up next.

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welcome back to "worldwide exchange." we start with the wex wrap-up. we have the cma regulator

approving the $69 billion deal for microsoft for activision. microsoft shares moving leower. steve scalise is withdrawing his name to be the next house speaker. this comes after the republicans failed to rally enough votes to get to the floor vote. united nations is confirming the israeli military is asking the entire population in the northern part of gaza to relocate to the south in the next 24 hours. a move that would impact 1.1 million people. the biden administration announcing the seven clean hydrogen hubs spanning 16 states set to receive $7 billion of funding. china reporting a smaller decline of exports in september compared to a year ago. imports still missed estimates. the factory prices seeing the

third month of declines. sales of dollar general as it is bringing back the ceo to halt slowing sales. and gearing up for a busy morning of earnings with banks. you see the results are in the red across the board with the nas daq lower this hour. this after the higher than expected cpi report. despite the market reading, ed yardeni saying the fed is done. >> it suggests that it is transitory instead of persistent. i don't think it is sticky. i think fed officials are looking at what is going on in the bond market and concluding the bond market is doing the

heavy lifting and they don't have to raise. >> let's bring in greg branch and ross mayfield. great to have you gentlemen here this morning. greg, i'll start off with you. agree or disagree with ed? >> there is something in there that i agree with as the fed is waiting for the yields to rise is probably right. that will continue is probably right as well. we have mentioned that with yields will continue to rise as a glut of treasuries are about to come to market. we don't know who the buyer will be ultimately. to say it has stopped and to say it is done is probably premature when we dig into the latest reports, frank, we don't see a lot of disinflation. we usually see that contained to several categories up a couple of percentage points.

>> ross, what do you think about the cpi report? do you agree with ed yardeni? >> i agree to a certain extent. the fed has done the heavy lifting with rates going from zero to 5%. i'm concerned with the shelter and still stickiness there. the fed said they want to hike again even if market forces pull back. i agree it will be premature to rule out a hike in november and december if we see price pressure. >> i know you are looking at shelter inflation specifically. that was something else that ed was mentioning. if you take out shelter inflation, then we are at the fed target. everybody needs a place to live, of course. >> you can manipulate the numbers however you want. removing shelter and seeing inflation at 2% is useful.

i think the fed at this point sees housing prices ticking up. even the market base indicators are low. >> is this for 2024? >> i think it does. housing prices sticky keeps the fed higher for longer central. if they pull back on rates, that brings house back to the table and pushes price up higher. >> greg, bank of america out with research saying rates below 5% and they don't see the s&p going below 4,200. if we stay below 5%, does that increase your willingness to increase equities? >> it plays a part. that is not the only variable. yes, rising yields are a headwind to the equity markets. you know what else's is a headwind? consensus projecting 12% for 2024 and if there is higher for

longer, i don't see how we get to those numbers. the things that are bad for earnings are multiplying. >> if the environment is bad for equities, what about bonds? are you willing to go double feet in on bonds and go ahead on the short end to the long end? >> not double feet. i'll dip a toe in the water and that brings us to the word of the day which is conundrum. it is likely not time to buy bonds if you believe that yields will increase. obviously, that means the issues come at a discount and futures will compensate more. stay at the short end. short end is above those in the long end. i don't want to commit to a level of compensation which will be higher six months from now. >> apologies, ross. sticking with bonds. i know there is one part of the

market you will not put money into which is utilities. they are the best performer with the s&p sector this week. why are you out on utilities in this environment? >> if you are in the soft landing camp, you want cyclicals and growth and buy things that reflect the economic environment. on the other hand f yo, if you to be defensive, you want high quality fixed income. i just think there's this swirl of headwinds for defensives like utilities. they don't bring growth to the table. we would barbell with more cyclical exposure and high quality fixed income. >> ross mayfield and greg branch, thank you. of be before we go, looking at the s&p right now down fractionally.

nasdaq is down .30%. the dow is opening up 40 points lower. that will do it for us. happy friday. aneny the weekd. thk you for watching. "squawk box" is coming up next.

good morning. welcome to the kickoff of earnings season. on the schedule today is united health and jpmorgan chase and wells fargo and citigroup. all in just the next two hours. chaos in the capitol. steve scalise dropping out as the speaker race there after failing to secure enough support in the party to win a vote on the house floor. new overnight, the microsoft deal to buy activision is getting the green light from uk regulators. it is friday, october 13th, 2023. "squawk box" begins right now.

good morning. welcome to "squawk box" here on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin. joe is off today. it's friday and what a week it's been. we had watched the futures or the equity markets move up for four days in a row. yesterday, that trend was broken. you saw down across the board with declines of .50% and .60% for the averages. you are looking at red arrows. dow is off 45 points. nasdaq is off 80. we got the hotter than anticipated cpi number which came after the ppi