it is 5:00 a.m. at cnbc global headquarters and here is your "five@5." treasury yields increase to the highest level in more than 15 years. futures are lower. the latest surge in yields coming after yesterday's blowout retail sales report, but not everyone is convinced the consumer will continue spending. also breaking this morning, president biden is in israel for his face-to-face with benjamin netanyahu just one day after the deadly andcontroversial hospital explosion in gaza. plus, chip stocks under pressure all around the world after new u.s. restrictions.

and then later, getting set for netflix and what's in store whenit reports later today after the bell. it is wednesday, october 18th, 2023. you are watching "worldwide exchange" right here on cnbc. ♪ good morning and welcome to "worldwide exchange." i'm frank holland. we get you ready to start your day as always. we get a check on the u.s. stock futures after a mixed session yesterday that saw the dow send its win streak for three days. the dow is in the red. it looks like it would open up 30 points lower. the s&p and nasdaq as well, lower. checking treasuries, normally we start with the 10-year. today we start with the 2-year note, something not seen since 2006. i'm going to draw a line. right now the 2-year note at

5.195 now. we continue to watch the moves on the 2-year. we also want to take a look at the rest of the bond picture right now. the benchmark 10-year at 4.85, trading at levels we haven't seen since 2007. the long bond getting close to a 5% yield. we also want to turn to energy. oil popping to a two2-year high. natural gas under a bit of pressure. same story for gold, rising higher. sitting at a four-week high. gold right now up almost 1% right now. you're seeing a sharp decline since the start of the israel/hamas war, a lot of investors turning to gold as a safe haven. we want to continue to turn or attention to stocks, lower in the premarket on news yesterday from the commerce didn't.

they plan to expand restrictions on exports of high-tech u.s. chips to china. nvidia taking a huge hit yesterday. it's down again this morning as well as chip stocks all around the world. nvidia down 1.5%. you're seeing a sharp move to the downside after those restrictions were announced. our arjun ka paul from london joins us with much more. good morning. >> good morning to you. we're seeing a fallout that plans to prevent the sales of m more. t these are allowed to be exported but washington is trying to close some of the loopholes in the previous rules. nvidia closed 5% lower on tuesday. as you mentioned they're done

1.5%. they're having a ripple effect on the semiconductor stocks globally. the world's biggest contract chipmaker down 2%. sk hynix also falling as well. there's a fear that growing political tension could see some of these companies, china revenue hit, if restrictions continue to ramp up. however, interestingly, china's biggest chipmaker rising, which might force china to boost its domestic chip industry. >> we're looking at u.s. and china chip stocks. what about the european sector? are we seeing any spillover? >> yeah, across t bhe board they're both down in morning trade. that's partly as the negativity around those sanctions continue to ripple through the semiconductor. it's also casting doubt over recovery in the broader base.

a asmi beat expectations but it's taking a more conservative view of 2024 and expects a river knew number similar to 2023. that means 2024 revenue expected to be flat. we heard from other companies like samsung, the chip recovery might take longer. >> arjun, thank you very much. arjun kharpal reporting from london. we appreciate it as always. more breaking news, reports from china may be in. china's economy grew 4.9% year over year in the third quarter, topping expectations and second quarter figures, the numbers boosting hopes that the world's second largest economy will meet or even exceed beijing's target for about 5% growth this year. asia's market closing mixed on the back of china's data. turning our attention back to the u.s. market, infla igs remains elevated.

household savings are drying up, but it's hard to tell when you look at the american retail data by the consumer. the shoppers are still splurging on big ticket items such as cars and more expensive meals and vacations. it's the latest in a string of complicated data as the fed debates whether they're done raising rates. retail sales they may be up year over year, but that's down from 3% growth in august. spending in nearly every discretionary category decline, it's being noted by many executives including bang of america's ceo brian moynihan. >> consumer activity has slowed down. in the aggregate it costs $4 trillion, 37 million check-in customers. >> let's discuss this further

with anneka. what's your take on the strength of the consumer and how does that form your opinion about the eck quesquities market? >> wee be believe the consumer strong and we expect it to be strong along the edge. that makes the inflation problem so complicated. we think it all boils down to the fact that the interest rate sensitivity, the economy especially, the u.s. economy, has really come down. so just interest rates are just not working to dampen the economy. >> definitely not working to dampen the economy, at least not as much as the fed had hoped, getting down to the 2% inflation market. i want to talk about the higher for longer environmental we're in right now. you recently put out research remarkable. is it rew e markable for your

investors? are you advising them to get into bonds and if so, short term or long term? >> one question. is the bond mark it doing the work on behalf of the feds or has the fed lost control due to the bond market. we know what's happening. there's a huge supply. the world's largest fire is no longer a fire anymore. that means yields go up, prices go down. we know what's happening. is that dynamic over? probably not. that's why we're providing the shorter situation, the shorter end of the curve. more importantly we're advising the client to really have a serious calculation of risk. if you're risk-free is 5%. you need to start looking at risks differently. >> when you say look at risks differentlying you mean a higher risk when it comes to equity.

do you focus more on different sectors or dividends, for example? >> definitely. we spoke about this in the past. it's really about getting really nitty-gritty and looking at businesses. if you look at the broad u.s. equity markets, the risk reward of buying in the u.s. makes much better sense. added to that is the fact analysts are going forward more than 10% earning scores next year, which isn't easy considering you see things starting to weaken. so, again, it's all about specific companies, underlying business models, where do they have pricing power. >> one question for you, of course, the 2 year on the yield is very attractive, basically 5.2%. if we're in higher for longer, why not wait just a bit longer and let the yields creep up a little bit higher and lock it in on the longer end and then you have that, you know, risk-free 5% or so. i'm looking at the 30 right now for a longer period of time.

>> yeah. and that all boils down to this yield curve which gets to normalization eventually. how will it become more no norm normalized? is the short end going to be coming up? if you lock in these rates for longer terms, longer end of the curve, and you see yields continuing go up because that's still more and more supply coming to the market and less and lense demand, that can be a painful trait. we feel more comfortable having a shorter accept at the shorter end of the curve, especially looking at the yieldings you can have with much less duration risk. it just feels more comfortable. >> i think a lot of investors are trying to figure out that right now. thank you very much. let's get a check on some of this morning's top corporate stories. our bertha coombs is here with those. good morning. >> good morning, frank. ohio congressman jim jordan will be at it again today after

failing to secure enough votes yesterday to become the next speaker of the house. jordan, an ally of former president trump, saw 20 republican lawmakers vote no on his nomination. he can only afford to lose four. the second round of voting is set for 11:00 a.m. eastern. the federal reserve is reportedly prepares a proposal that would reduce fees banks receive when consumers swipe with debit cards. today retailers and restaurants pay 21 cents plus a percentage of the swipe. "the wall street journal" reports the federal reserve will likely lower the cap. and elon musk is testing a $1 a year subscription model in new zealand and the philippines that he says could reduce bot usage on x, the platform formerly known as twitter.

it will allow users to post content like share or reply to posts. users who opt out will only be able to read content. a dollar a year, pretty nominal, but i guess, about a billion users? >> it's hard to pay for social media, bertha. it's always been free. >> you know, it's not free, frank. nothing is free. there's no free lunch. they're taking your data, so you're paying for it one way or another. >> bertha, wise words. we turn our attention back to earnings as netflix is set to report third quarter results. adds to a 20% decline since mid-september when the executives warned of a slowdown of the ank user. 90% of subscriber growth coming from outside the u.s. where users pauloer subscription fees. this quarter overall revenue is expected to increase by 8%. eps expected to rise by 13%.

meanwhile net subscriber ads expected to come in at just under 5 million. joining me now with his expectations, jason. great to have you here. >> good morning, frank. >> let's start off with the net subscriber number. the guidance that it would be similar to q2, but the estimates are coming in lower. what are you expecting when it comes to net subscriber ads? what's your rating? what's your buy target? >> our buy target is 5 cents a share. we are a bit nervous about this year's earnings report. it's more about the guidance they're going to give for the fourth quarter, and so our view is we sort of need to have a clearing event and get estimates lower before we can get back to the long-term positive story around their ads here. >> $500 price targets. you see a pretty big upside to the stock.

i wanted to ask about the revenue. it's taken a big slide. they believe the average revenue per user is under pressure. when you look at asia, users pay almost half or about half of what they pay here in the u.s. this stock trades on the idea that they're making money per user. >> yeah. i don't think the mixed shift is necessarily a big negative. but what they do need is a cou counternarrative to allow the average user to move in the right direction. where folks rightly had hung their hopes was on netflix's ad tier because in total if you get a lower subscription price plus a lot of ad dollars, you can get more aggregate revenue than you would under the old ad-free model. they fired the head of their ad

unit who'd only been there about a year. so people know things are not going as well on the ad tier as they had hoped. i think the ad tier is going to be fine in the long run, but that's what we need to see. >> we're seeing a lot of reports that netflix is looking to raise prices after the actor strike is over. what do you think about these reports? what are your thoughts? raising the price, does that put pressure on the ads or raise more revenue? >> the good news is everyone in the industry is taking pricing up. that's a good thing because everyone except netflix is losing industry. getting pricing up is good. what i would say is all of these apps are so much cheaper than linear television that i think at least in western markets they have to take pricing up, probably more difficult than the international market. >> any story line that investors should pay attention to? we have to note for our viewers, netflix can be one of the most

volatile stocks. you're laughing. it's important. i don't think everybody knows it. we know it here at cnbc and you know it as an analyst. it's a big market mover. pretty big waiting. >> yeah. i think the options market is implying about a 7% move on the earnings. you're right to point it out, frank. >> what are your thoughts? anything else we should be looking for? when it comes to a stock this volatile, there are a lot of other things that may cause the stock to move. >> i think it's going to be forward commentary. i think that's going to be the main thing. if they walk back expectations, that will be bad. but if they tell a good story about what the future holds for ads here, i think the stocks will be okay. >> jason bazinet, we appreciate you being here. president biden is in israel at this hour meeting with benjamin netanyahu, but canceling plans to meet with arab leaders. we have a live report from the region coming up. plus, it's not just netflix.

tesla set to report results after the close today. the one metric you need to watch coming up. and then later, microsoft billion dollar office deal. you'll never guess who just signed up. we have a very busy day ahead when "worldwide exchange" returns. stay with us.

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in the last hour president biden landed in israel who met with prime minister netanyahu and plans to meet with the war planning committee later today. jay gray has more. >> reporter: good morning to you. the plans changed drastically while the president was in the air when the explosion happened at the hospital. he will not be having a summit with his arab allies. his trip to jordan canceled after the explosion to deal with mourning. that was key to try to keep the violence from spreading into a wider military conflict. he'd hoped to talk with other leaders in the region and work on that situation as well as working on the need for humanitarian aid and getting that humanitarian aid through and across the rafah border with egypt. now that topic is going to be in jeopardy as well.

so he will be meeting with leadership, including the war cabinet here in israel as you talked about. the protests are continuing in the region after the blast at the hospital you talked about. israel is being blamed. israeli leaders say that was a failed rocket launch by jihad and they're not responsible. >> jay, i want to touch on another issue going on right now. israel's northern border with lebanon, some tensions obviously. what are the latest reports there? >> reporter: yeah, frank. and americans are being told not to travel to that region. there's been a lot of back-and-forth between what are now growing israeli forces and equipment along that border with lebanon. there have been losses on both sides with soldiers involved. and that's one of the fears of this thing escalating and spreading to another front and a wider military conflict. so that's going to be something

that's watched very closely, and it's very concerning to see the fighting escalating there. >> all right. our jay gray live in tel aviv. jay, thank you very much, and you stay safe. ahead here on "worldwide exchange," we have your big money movers and why united is one of the biggest laggards on the s&p 50inhererk. st with us.t is it possible to fall in love with your home... ...before you even step inside? ♪ discover the magnolia home james hardie collection. available now in siding colors, styles and textures. curated by joanna gaines. blendjets halloween sale is back from the dead. take advantage of spine chilling savings. blendjet 2 gives you monstrous power for a delicious smoothie, shake, or frappé anytime, anywhere. cleaning blendjet 2 is scary easy. just blend water with a drop of soap. recharge quickly with any usb port. boo-gie on over to blendjet.com

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time now for "worldwide exchange" big money exchanges. you look at bigger profits from higher fuel costs and halted flights to tel aviv amid the ongoing israeli/hamas war. shares of united down 4.5%. don't miss an exclusive interview with scott kirby at 7:40 a.m. eastern. there's a third quarter profit due to pricing and a demand. operating income in its container shipping, the shares down over 3.5%. interactive broker shares are lower despite an earnings, the company reporting more than 40% increase in earnings and 45% rise in sales compared to just a year ago. they're also posting a 21%

increase in customer accounts and a nearly 30% rise in customer equity. shares of interactive down almost 3%. we're turning to the energy space, flaacing a flurry of headwinds. there are ambitious goals. our pippa stevens is in virginia beach with a look at one project that's just getting off the ground. pippa, good morning. >> good morning, frank. we got a chance to take a boat 27 miles off the coast right behind me yesterday. it with us about a two-hour journey in order to see the offshore wind site up close. it's one of two places in the u.s. that actually has turbines in the water, and they are massive, over 600 feet tall. eventually they're going to be over 170 turbines when the project is complete. it's really hard to get a sense of the sheer scale until you're standing right under one as well

as the infrastructure and manpower to drill one into the seabed. i caught up with someone while we were on the boat and he told me the next phase of construction is about to begin. >> large pieces of equipment are shipping to the u.s. right now. the first will arrive at the portsmouth marine terminal next week. in earnest next year we'll begin the offshore base of construction. you'll come back and add the big yellow piece you see in the background here and then we'll add wind turbines. >> reporter: this project is not cheap, costing about $10 billion, but it's getting a boost from i.r.a. it's a pivotal time for offshore winds. they're phasing challenges including higher rates and

issues with supply chains forces them to renegotiate or walk away entirely. this is another push toward an effort for cleaner and greener energy. >> pippa, you look like you had a good time out of the boat. i'm looking at the turbines. they look how money gus. i can't imagine actually being there. you mentioned some projects are facing some significant issues. what's so different about this one? >> so the key here, frank, is dominion energy is a fully regulated utility. what that means is before they started the project, that i brought it to virginia state's commissioner who approved this project, approved their spending plan. and ultimately this will come down to ratepayers. dominion forecasts about a 4% increase per month over the lifespan of the project. the project north of what we've seen is those are not fully integrated. there's a difference between generation owner and transmission owners.

so when you have a power purchase agreement, if you don't have a guaranteed price on the other side, then the cost can change. what we've seen most notably with them is they're not getting enough of an offset price in order to justify the cost. the key here is dominion got approval ahead of time and they say about 90% of their costs are now locked in. >> pippa steefrps, great reporting as always. great to see you on the field on the money trail. straight ahead on "worldwide exchange," much more on the american consumer, we're going to tell you how you should read yesterday's blowout retail report. stay with us.

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. it's around 5:30 in the new york city area. here's what's on deck. futures are lower. tesla among the companies to report. we're going to key up the numbers to watch from the ev maker. and let's make a deal. microsoft hooking to team up with an unlikely partner in the cloud. it's wednesday, october 18th, 2023. you're watching "worldwide exchange" right here on cnbc. ♪ welcome back to "worldwide exchange." i'm frank holland set to start

your day as always. with take a look at u.s. stock futures. take a look. you can see they're in the red across the board. the dow taking a leg lower looking like it would open at 65 points lower at this hour. we say it's early. we're keeping a close eye on the nasdaq 100 that's also in the red and the chip stocks on about the back of u.s. restrictions on the exports to china. take a look at the broader chip sector. we're seeing laggards, i apologize. nvidia down. also seeing astrazeneca down 2%. asml down 1.5% broadly, in the red across the board. taiwan semi, sk hynix and lenovo down. we want to get a check on the bond market. the 2-year note jumping to its

highest yield since 2006 following yesterday's retail data. you can look right now. well above 5% at 5.1%, the benchmark 4.8. pretty close to its highs this year. we have to check energies. taking a look you can see it's moving higher, up more than 3.5%, trading close to 90 bucks a barrel. brent crude, pretty close to 93 bucks a barrel. also up just about 3.5%. that's your setup for the u.s. market. now time to get a check on the top corporate stories. our bertha coombs is back with those. bertha, good morning. >> good morning, frank. microsoft and amazon reportedly teaming up on a deal involved the cloud. according to insider, microsoft would bring amazon on as a customer for its 365 cloud productivity tools, the report adding that the union would be worth over a billion dollars. over the next five years amazon

is expected to start setting up the new systems early next month. carl icahn is suing current and former board members of illumina over its purchase of gene sequencing company grail, not getting regulatory approval for the deal as the motivation for the suit, saying it put illumina in harm's way and has cost the company billions. the apparent move comes just days after european regulators ordered illumina to divest grail. and the federal government is probing general motors over its self-driving cruise unit. national highway traffic safety administration is looking at whether the division is taking proper steps to keep pedestrians safe. the agency says it received several complaints of people being hurt by the vehicle. frank? >> bertha, thank you very much. we want to stick with autos

right now. tesla gearing up to report its earnings this afternoon. the stock's been underperforming since october 5th when tesla reported q3 delivery estimates well below estimates. revenues forecast increase by 12% while eps is expected to decline by 31%. gross auto margin which represents the efficiency of production is expected to come in at 18.6% this quarter. for more let's bring in craig erwin. great to have you here in the studio. >> thank you. >> we have our phil lebeau on all the time. he said that's the metric to watch when it comes to tesla. give us a sense of that decline. do you expect it to be as bad as the estimates? >> i look at the adjusted gross margin taking out the credits and everything else. that should fall by at least 100 basis points. you see 20% to 25% price cuts

and they're going to put through more price cuts to make it at 1.8 million units. that keeps dropping. the consensus was that was going to be a margin trough. clearly that wasn't the case. we were of that view the whole time. the question is when does that stop? does the bleeding end in 2024? i don't know. >> you talk about the bleeding. the model 3 and the model y both in the u.s. and china, give us an estimate. you're the analyst. when does tesla start dropping prices? >> i think they have to do it to drive volume at this point. clearly there's a slowdown in the industry. it's impacting everyone. tesla is having a lot of pressure. they're not immune from this. they're going to do everything that i can to hold onto their market share and remain the leader, and they will be. >> if you don't mind, we haed a

conversation before the show. we're not talking dancing robots this time. what's the drama you're expecting. >> the question is are we going to see earnings contract in 2024? and people are going to be looking for bread crumbs around that. they're going to have to do a really good job of defending things to persuade people we're not going to see an earnings contraction in 2024. this is a retail-driven stock. it's extremely important they keep driving sentiment. you could very easily see a flip in sentiment, and, you know, it's a biside consensus long, but many agree with me it's egriege usually overvalued. >> you said egriege usually overvalued. you say ford makers should be teaming up against tesla. is this uaw strike, is this a

possible headwind for tesla? does this reduce the ability to make autos or have them available in the e ve sector? >> i think the unions are likely to collaborate and cooperate with them long term. it's where they butter their bread. this is a transition in history that's inevitable and it's just a negotiation going on right now. our president is deeply involved in looking for a positive st. louis here, but there's change, and all parties have to accept that change. >> before we let you go, the price change? >> 85. >> it's trading at 253 right? >> it's egregiously overvalued. >> craig, i think i buried the lede. it's great having you here. we have a market alert. we've got fresh comments from the fed. patrick says the central bank should extend its pause on

interest rate increases. harker cites growing evidence of a better economy with increasing prices. he said the fed can wait until next year to decide whether the bank rate increases have done enough to keep inflation lower. coming up here on "worldwide exchange," the holiday season looking like it may not be as cheerful for apple. the growing worries around its chwodwe phone when "rlid exange" returns. stay with us.

all right. welcome back to "worldwide exchange." the holiday season is fast approaching and this year it looks like it may not be a jolly one for apple. new data revealing after a strong start out of the gate, new demand is now slipping. our steve kovach joins us now with more. steve, good morning. just how much of a drop are we talking about? >> i've got good news and bad news. the good news if you want a new iphone, you can get one in time for the holidays. the bad news, if you're an apple investor at least, demand appears to be slipping for the iphone 15 lineup. that could make it harder for apple to return to sales growth in this holiday quart ir. i've been trackingiphone availability for the last month.

it's improving a lot in recent weeks especially for the iphone 15 pro. bank of america analysts saying up to 30% of apple stores had stock last week for iphones throughout the u.s., canada, china, and the rest of asia. apple needs those markets to buy new iphones this holiday quarter. apple missed a lot of holiday sales and that had a rippling effect throughout 2023 with apple posting three-quarters in a row of declining sales and likely a fourth when we get earnings in a couple of weeks. meantime analysts saying huawei took over apple as the top smartphone in china after introducing a new phone a few weeks ago. there's two ways to look at this. apple is now producing more

iphones or demand isn't holding up enough especially in china to get apple back to that top line growth. we'll get a little more data from this, frank, on november 2nd when apple reports earnings, and that will include the first several days. >> i want to bounce something after you. there's a new report o out saying suppliers are telling them that analysts are forecasting iphone will reach over 224 million units. >> this is why the iphone 15 pro is so important. they can sell the same units or fewer, but because they're selling more for the pro phone especially the max with the big screen, that's $100 more than it was a year ago. the hope there is even though they might sell fewer or the same number on a unit basis, revenue can grow that way. again, if china can't hold up

with competition from huawei heating up, that's going to be tough to pull off. >> thank you very much. steve kovach live from the nasdaq. coming up on "worldwide exchange," we have the one world every investor needs to know today. plus the signals our next guest says has him taking a bearish look on the markets in stocks he's still able to find some opportunity in. if you vlkt already, find our podcast. check us out on apple, spotify, or other podcast apps. chor"wlddexcng " coming up after this. you deserve better than that. i'm hungry, i'm in a hurry, i don't have time to make anything healthy. you could if you had a blendjet. blendjet? it's the portable blender that makes the healthy choice the most convenient choice. i don't know. it seems like a hassle. hahaha! wrong. just pour in some milk,

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all right. welcome back to "worldwide exchange." time for your "worldwide exchange" wrap-up. arab leaders canceled a summit

following the deadly explosion at a hospital in gaza, the president touching down in israel, a meeting with prime minister benjamin netanyahu in the last hour. now to china, the economy there gru 4.9% year over year in the third quarter topping expectations and its second quarter read. following the nvidia drop yesterday, asia stocks selling off overnight after the white house expanded limits to suspend. they say it violates the principles of the market economy and equates to what they call, quote, forced decoupling. congressman jim jordan will be at it once again today after not getting enough votes for speaker of the house. the vote is set for 11:00 a.m. eastern time. and the fed will propose lowering debit card swipe fees. and shares of byd and a

warren buffett favorite surging in overnight trading over its most recent quarter in forecasting. strong growth in the months ahead. we'll have to watch shares of united airlines with fuel costs and a pause on flights to israel. do not miss the united in theer view with ceo scott kirby at 7:40 a.m. eastern. we get housing starts and permit figures ahead of the opens. another busy day of earnings with results from proctor and gamble, tesla, las vegas sands and much more at 2:00 p.m. eastern when we get the fed beige book. several speakers speaking today including waller and others. ahead of all that, let's take a look at the dow futures. this morning the dow under a bit of pressure, actually hitting its lows of the morning, aushlgd 72. s&p and the nasdaq in the red.

the yield surging to its highest level on yesterday's blockbuster retail report. joining me now is chris morangy. great to have you here. >> great to be here. >> you are a value investor, so i would think the consumer plays a pretty big part in your investor thesis. what's your take? >> it's wrong to bet against the consumer this year. we have not done that. we've benefitted from investments and live entertainment and sports and travel. but it's hard to see given the mix of higher rates. >> you pushed back on us calling you a bear. you say you're optimistically cautious. >> something like that. >> something like that. we're maicing up new terms. we're looking at several stocks that have exposure but you're immune to consumer downturn

spending. one of them, an interesting pick, madison square garden. >> madison square garden sports. this is the owner of the knicks and the rangers. the knicks kick off next week. it's one of the few opportunities to buy a public franchise. you're getting it for about $4 billion. >> i want to classify the ticker is msgs, madison square garden sports, not the msg ticker. you say there's going to be a slowdown in consumer spending. >> it's been fairly asik click cal. it's been a darling during these times. not cheap but high companies buying back stock. we had our pippa steefrps out at a wind farm. utilities have been under pressure. why is this utility a smart play? >> wind may be a little bit early but others have been crushed by higher rates.

there's been impact from funding new projects. the next era is one of the biggest utilities in the u.s. thebest jurisdiction is in florida. they will benefit from this continued secular growth in renewables. they're the largest renewable manufacturer in the world. you're getting earnings growth which makes it competitive with bond yield. your last one, you're kind of on brand all day. it's in the cellphone area. a a alt. >> there are basically thee companies that dominate this industry. they try to hang radios from the major carriers on their towers. also been crushed by rates. >> i want to pocket to you, in a previous life you're a media

analyst. you're a value analyst now, but in your previous life, netflix report coming up after the ball. in the lens of the view of a value investor, how do you view netflix and also valuation? kind of lost valuation. >> netflix picking up a lot of earnings. you have a typical slowdown in advertising as well as the impact of the two strikes one of which is settled. netflix unquestionably going to be a winner long term. great culture, great management. we should have loaded up the boat a year and a half ago when it was 200. they've got some growth challenges going forward. >> all right. so i also want to talk to you about the broader macro picture. we have international tensions between the israel and hamas war and russia and china connecting, saying they're basically an alternative to the u.s. that they say is an agent of chaos. with all of this goingon geopolitically, how does this

shape your investments overall? >> it's hard to get past the human tragedy, but we look at the impact on the dollar on oil and spirits. consumer propensity to spend has been very high not just abroad but at home with some of the mess in washington. so, again, it contributes to my more cautious -- not bearish but more cautious outlook. >> what's your outlook for today, the trading day ahead? >> i can't predict what's going to happen today, but if i had to guess, probably some more weakness when we get through with earnings. >> chris marangi, thank you as always. the dow down about 70 points. the nasdaq and s&p also in the red. the yield on the 2-year right now, very close to 5.2%, at 5.18% hitting multiyear highs. the 30-year hitting close to a yield and the energy market

seeing a big move to the upside. wti up 3%. brent crude trading at 92.45 a barrel. and also we got fresh comments from the fed speaking to "the wall street journal," patrick harker saying the federal bank should extend its pause on interest rate increases. remember, harker is a voting member of the fomc and he's citing higher evidence of growing costs will grow the economy despite recent signs of hiring and strengths. he adds they can wait until next year to decide whether the bank's rate increases have done enough to keep inflation lower. that's going to do it for us on "worldwide exchange." we've got squau"squawk box" comp next. thanks for watching.

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good morning. president biden has arrived in tel aviv, hoping to de-escalate tensions after hamas and israel traded blame over a deadly blast at a gaza hospital. back here at home, congressman jim jordan's first speaker vote failed, buthe plans to try again today. we'll tell you what to expect in washington this morning. ahead of our interview at 7:30 a.m. with former speaker kevin mccarthy. plus another busy day of earnings. we're going to hear from travelers, morgan stanley, and procter and gamble in the next

two hours. it's wednesday, october 18th, 2 2023, and "squawk box" begins right now. ♪ good morning, everybody. 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 and joe kernen. good to see you. yesterday the dow ended up for a third day in a row but you saw the s&p slightly lower and nasdaq as well. this morning there are some red arrows as we start things off. right now the dow futures are off by 85 points. the s&p futures off by 15. it comes as treasury yields continue to climb. we were looking yesterday. the 2-year yield was