it is 5:00 a.m. here at cnbc global headquarters. here is your "five@5." stopping the slide wall street looking to end the week on a positive note with the s&p set to open at the lowest level since may. looking to amazon to stem the tech wreck how the cloud giant may be the silver lining investors were waiting for. and not just amazon boosting fortunes upbeat report from intel. and temperature may be rising in the middle east as the u.s. conducts overnight strikes

in syria we will weigh the investor implications later in the show, sam bankman-fried tells his side of the story as the disgraced ftx ceo takes the stand. it is friday, october 27th, 2023 you are watching "worldwide exchange" here on cnbc good morning welcome to "worldwide exchange." i'm frank holland. happy friday let's kick off the hour with the check of the u.s. stock futures. the dow would open up 100 points higher it's early this comes after another rough session for stocks yesterday which saw the s&p 500 close at the lowest level since may falling more than 1% for the week, every major index is down 1% or more led by the nasdaq eyeing three straight losing weeks red across the board the nasdaq is the hardest hit.

s&p down 3.5% week to date a big part of this is microsoft and alphabet losing on the week and shedding combined $190 billion of combined market value since monitor the entire market cap of comcast, salesforce, mcdonald's or netflix. we are checking the bond market with a look at yields. ten-year yield at 4.87%. the 2/30 is seeing above 5%. we are also looking at energy. the u.s. benchmark wti at $85.07 a barrel the middle east tensions elevating the numbers. natural gas is the biggest gain up more than 3%.

that's the set up for the u.s. markets. this morning is two stock winners. amazon and intel impressing the street after reporting the latest quarterly results. you see both up big in the pre-market intel up8% amazon up 5.5% let's start with intel shares popping after the third quarter earnings that beat on the top and bottom line as sales fell year over year. as for the outlook, intel expects to return to growth in the current quarter and plans to cut $3 billion in costs this year here is pat gelsinger on cnbc yesterday. >> we were losing money. operational margin was ahead of schedule we did better than we thought. market shares are better importantly is the road map and our next generation and a.i.

attach right there is ahead of schedule >> let's turn our attention to amazon profits tripled to nearly $10 billion on the strong sales of cloud and advertising and retail andy jassy offering a bullish outlook on generative a.i. opportunities and aws cloud business for the quarter amazon reported a 13% rise in sales to $143 billion. profit came in at $9.9 billion ahead of the street estimate with shares up 5.5%. despite the tech bounce this morning, the month is shaping up to be another tough one for investors. indices down between 2% and 5% dow and s&p and nasdaq on pace for three straight months of losses let's bring in senior equity strategist at federated hermes linda, great to have you here. >> good morning. >> we were laying out the three-month slide for the markets. according to your research, we

should pay attention to the three months ahead i believe you are including october, but you say this is when we see a big rebound. >> thank you for having me on this morning november is the best month of the year, historically, and moving into the end of the year, we feel positively inclined to the market we feel the s&p could reach 4,600 by the year. we think the economy heremains strong this is what we want we think next year you could see earnings growth go toward 250 with a 5,000 s&p for next year we are bullish going into the year and finding a lot of stocks on sale. >> you have a lot of information in the notes you have pce coming up later today. the estimate for core pce is .7% that means the ten-year yield would be 1% higher than inflation. that is only half the spread

histo historically that spread is normally 2% above inflation. why is that meaningful for investors? >> investors are hoping the fed will stop raising interest rates and we'll see inflation come down we think they will they may have completed the interest rate hike cycle now already. maybe one more we could potentially see interest rates on the long end settle thin here. 5% to 6% on the ten-year yield is average what we saw this year is 60% of the moves in stocks is interest rate related it has to do with the term premium going up so much on the back end and historically the next year you see double digit returns on the stock market. if history is any guide, the pain we have seen this year is related to concerns,

geopolitical concerns and inflationary concerns which should settle down into next year and good buying spot right now. >> i want to come full circle the back to mega cap tech with the magnificent seven. take a bit of a downturn recently you have an ambitious target right now. how does the market move higher with the pressure on the magnificent seven that make up so much of the market? >> of course, the magnificent seven was responsible for the vast majority of returns this year you have seen mixed results this year that is why the indices are coming down when beneath this, you see rolling recession and the average stock basically do nothing this year. what wite need to see and what hope to see is a breadth of

stocks doing better. more stocks than sevening movinp in the market as people can see that we don't see recession on the horizon. the jobs market is good. we're seeing inflation come down we can look at many of the other sectors of the market besides technology and build them up there are bond sectors in the market >> better than expected gdp report yesterday pushing back against the sense we may be entering recession linda, thank you >> thank you. we turn to the middle east and developing story u.s. fighter jets launching an early morning strike in syria linked to the revolutionary guard. the pentagon ceassays the u.s. s

not seek escalation in any conflict and these strikes are separate from the conflict from israel and hamas we have global head of commodity strategist helima croft on our phone line helima, thank you for being here sdp here >> thank you, frank. >> this is a different situation interest israel and hamas. what is your take this syria is this thees can an legislation that so many are worried about >> this is one theater of conflict the u.s. is targeting our revolutionary guard bases in syria. the bases have been used to attack groups in israel and attacked u.s. fighters in the region we had 12 attacks on housing personnel in iraq and syria since the war began.

the concern has been this would not remain a war isolated to gaza because the presence of revo revolutionary guard proxies. the situation with attacks on the u.s. personnel in the region by iranian groups is worrying. if you look at the path of escalation, it comes through such attacks. >> helima, you said something that caught my attention the question is is this one single theater of war. is this making strikes in a different area in the middle east and is this two separate things >> we have seen oil prices come off a bit this week because of the view this is a more limited conflict if we were to see escalation, significant escalation, beyond

the borders of gaza, i think that would cause investors to be very concerned and iran is the big subject of concern iran is a large oil producer they have targeted ships before in the straits of hormuz where 17 million barrels of oil flow through every day. any type of escalation of iranian-linked groups and these were attacks on sites in syria any indication that iran is becoming deeply involved in the conflict is worrying to the investors and u.s. government as well >> i want to touch on your wheelhouse oil prices brent crude had crossed $90 a barrel the entire oil market moving higher how does this impact oil >> this is the concern for oil anything involving iran. iran has not been afraid of targeting energy assets in the

region before. in 2019, when the u.s. ended exce exceptions, we had a series of attacks on the tankers in the strait of hormuz that combined the capability which knocked out the electricity grid there any indication that this war is expanding to involve iran in a deeper way is going to make market participants nervous. >> helima, you just returned from saudi arabia with the summit which included jamie dimon and other business leaders. give us a sense -- we will not rundown your resume. give us your sense of the tension in the middle east you visit the middle east quite a bit. what is the general temperature? >> what i was struck by is the speakers on stage were to focus

on the flow and vision 2030. there were passing comments about the war and the saudi finance minister called for urgent deescalation. on stage, the focus was on the enormous business opportunities presented by the saudi arabia reform effort. in the corner of the conference, there was concern about what are the red lines that could bring more groups into this conflict everyone is watching if there will be a ground invasion. that was something that could bring in hezbollah and concern was expressed about the attack on the u.s. personnel in the gulf. off stage, the question was what is the trip wires for the broader conflict >> helima croft, thank you so much for your time and insight >> thank you, frank. we have more to come on wo "worldwide exchange," including the one word vinvestors need to

know today and why the ceo of chipotle is mightier than the obesity shot and later in the show, sam bankman-fried tells his side of the story as the disgraced ftx ceo takes the std.an we have a very busy hour when "worldwide exchange" returns stay with us with comcast business... it is. is it possible to help keep our online platform safe from cyberthreats? absolutely. can we provide health care virtually anywhere? we can help with that. is it possible to use predictive monitoring to address operations issues? we can help with that, too. with the advanced connectivity and intelligence of global secure networking from comcast business. it's not just possible. it's happening.

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it looks to open 90 points higher nasdaq is up 1%. let's see how europe is shaping up as the trading day gets under way. julianna tatelbaum is in the london news room with more on the early action happy friday >> frank, great to see you before i get to europe, let me h show you overnight trade in asia green across the board decent trade in the region industrial profits in china showing solid gains in the latest period. shanghai up 1% hang seng up 2%. the nikkei 225 in japan rallied 1.3% as for europe, we started out the morning on shaky footing over the last hour, things have turned a lot more positive positive momentum building throughout the course of the morning. dax supis up .50% similar for the italian market there is one patch of red on the board. cac 40 index is down .40%.

we have seen a pullback in montcler and sanofi. it has been a big day for earnings in the stock market these are two of the biggest moves to the downside. sanofi in just a moment. nat west shares down 10% they are under pressure and halted from trade after slipping 15%. trading has resumed after the uk bank downgraded the outlook. the regulator will look into the bank over potential regulatory breaches in the decision to close accounts belonged to the politician nigel ferage. and sanofi is a defensive stock in a defensive sector. sanofi shares are on the worst level in 29 years. they are looking to increase higher r & d and tax rate.

the drugmaker is spinning off the consumer business next year in a move to focus on innovative medicines. judging by the stock reaction, the news around downgraded earnings expectations for next year are trumping the news of the consumer health business spinoff. it is taking a book out of the other businesses like novartis frank. >> julianna, thank you julianna tatelbaum live in the london newsroom. time now for the big money movers three stocks of the morning. shares of chipotle moving almost 4% higher after beating on the top and bottom line for its recent quarter held by higher menu prices for the third quarter with the net sales climbing 3%. the ceo says traffic trends remain strong in october helped by the return of carne asada and

when it comes to weight loss drugs, he is not concerned >> really not seeing any impact on the business. the more we study and understand it, i think this is another place where we are positioned well our food is clean and cus customized you can get exactly what you want to eat. turning to the auto industry shares of ford under pressure after the third quarter estimates following the labor strike that cost the company $3 billion. ford pulled the earnings guidance which adjusted earnings between $11 billion and $12 billion. ford will delay ev investment, including the construction of the battery factory in kentucky. shares of ford down 3% shares of deckers outdoor. the maker of ugg boots is

beating the top and bottom line estimates. you see the shares are up almost 11%. coming up on "worldwide exchange," betting on an economic reborebound. the $7.4 billion bet my next company is betting on the transport space and the reason why we're back right after this. ( ♪ ♪ ) ♪ (when the day that) ♪ ♪ (lies ahead of me) ♪ ♪ ( seems impossible to face) ♪ ♪ (a lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ a bank that knows your business grows your business. bmo.

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exchange." stone d stonepeak partners is acquiring textainer group for $7.4 billion. under the agreement, shareholders will receive $50 per share in cash. textainer says this will give access to investment capital and industry expertise joining me now in the first on cnbc interview is stonepeak partners chief operating officer luke taylor. >> thank you, frank. >> your ceo spelled out what textainer is getting in the deal what are you getting in the deal containers are how most consumer goods are imported to the u.s. we cited macro weakness and the weaker consumer.

why was this deal worth it for you? >> at stonepeak, we invest in infrastructure and real assets we look for businesses with quality and high asset backing and good barriers to entry and long-term cash flows durable and resilient cash flows with good pricing power. those businesses tend to be companies which power the global economy. if you look at textainer, it is a worldwide shipping resource. we lease containers to 200 companies globally all of the shipping liners are our customers. it is a critical link in the global supply chain. that fits the mandate we put forward. we have durable cash flows in the business and great long-term growth prospects

>> you mentioned pricing power con ttainer prices are 90% down from the high in 2020. they settled back to the f five-year average. where is the rebound how high do you think these con ta container prices go up >> if inflation is increasing the cap x, the lease cost price is the box >> you mentioned you have global customers. have you been in contact with the customers? you talk about container shipping walmart, nike, et cetera have you given a sense of confidence they will start shipping more things and bringing more things to the u.s. i want to ask how near shoring in the u.s. play a part of this? >> absolutely. we're a long-term investor if you think about today, global trade container trade is 175 million teu. a lot of talk about the

globalization. i think it is slowing globalization. if you look at the next ten years, the on-shoring trend and decoupling with china impacts 2 million of the 10 teu. you have emerging class globally which in the developed economies consuming more we look at the long-term growth about 2.3% that 2 million you use from the decoupling from china and o-s onshoring, you will pick up more you have a big growth in asia trade as well. >> something we will have to watch. one other thing, textainer has a right for a better deal. luke taylor, coo of stonepeak

partner partners. >> thank you, frank. sign up for the cnbc evolve global summit next thursday featuring leaders offering strategies necessary for adapting in the new era of business i'll pspeak to a global leader from fedex just scan the qr code on the screen to register or go to cnbcevents.com/evolve. time for a check of the morning headlines outside of the world of business with phillip mena in new york >> good morning, frank we begin with the aftermath of the shooting in maine. the town of lewiston is still locked down while the search for a suspected killer robert card continues. members of the card's family tell nbc news he had been

experiencing a mental health episode in the months preceding the shooting which killed at least 18 people. president biden is facing a challenge from the member of his own party. democratic congress member dean phillips has entered the 2024 race for the white house phillips has been critical of the decision to run for re-election of president biden he feels like he has to run for president. and josh allen and the buffalo bills bounced back after the tough loss on sunday to new england. the buccaneers were hosting on thursday he threw for a touchdown and the bills get the win over the bucs 24-18. frank, believe it or not, we're nearly halfway through the nfl regular season >> it is hard to believe nfl season is flying by. phillip, great to see you. happy friday >> happy friday. straight ahead on "worldwide exchange," a tale of two

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of the shares of the ecommerce giant popping. and the troubles with the driverless car unit going from bad to worse following the california ban. it is friday, october 27th, 2023 you are watching "worldwide exchange" here on cnbc welcome back to "worldwide exchange." happy friday i'm hollafrank holland. let's check on the s&p sitting at the lowest level since may. we're seeing green across the board. the dow would open up 77 points higher holding steady s that damage up % s&p is solidly in the green. for the week, every index is down 1% or more led by about the nasdaq eyeing three straight losing weeks a big part is microsoft and alphabet losing 2% to 2.5% in the last 48

hours. shedding more than $190 billion of market value. you see the steep declines the decline is equal to the entire market cap of our parent comcast or salesforce or mcdonald's or netflix. we are checking the energy market brent crude crossed $90 a barrel mark up 2.5%. natural gas is moving higher this morning that's the set up for the u.s. markets. time for the big money mover amazon shares are popping ahead of the open following blowout earnings with revenue jumping 13% driven by strength and aws cloud business and advertising business amazon capping off a big week for tech microsoft, alphabet and meta and amazon beating expectations and

revenue, but failing to impress investors with concerns of ad spending and cloud growth. all together, the magnificent seven stocks have now shed more than $386 billion ofmarket cap since they kicked off earnings last week. the big slide here in the index. down for the week. the magnificent seven powered the market and down 4.5% let's talk about this with sarah k kuntz. >> thank you >> we talk about the headwinds for the magnificent seven stocks slower than expected cloud growth and concerns of ad spend following concerns of the israel-hamas war as an investor, which one of those are you more concerned about? >> you know, i think with the cloud, that is less of a individual company concern and more of a sector concern

there's not the case where aa any one of the companies has done something wrong that is a macro headwind and that hits everybody in the face. the interesting thing is who can outperform in the circumstances. with the ad spend slowdown, we will see that in the fourth quarter on and off with the situation in the middle east the reality is some companies will navigate that better than others based on what they are communicating to advertisers and ad units they are offering i'm looking to see who can out perform the headwinds. >> let's talk about amazon reported last night with shares up big right now were you surprised how the company beat and strengthened ecommerce and ad business. >> there is one rule this year which is every company gets one quarter where they get to talk about a.i. and a.i. makes the stock go up. this is amazon's quarter they are coming off the news of the anthropic investment they put in $1.5 billion

they are looking to put in $4 billion into that. people see it similar to the microsoft open a.i. deal which has been good for them, but microsoft had a tough week the other piece is the bedrock a.i. news that they will be helping with the models. if you help with big data and helping with a.i., then you will see your cloud spend over time go up. i think they said the magic words this year. it seems to be working in pre-trade. >> they said the magic words, but missed on cloud. it was close to be clear we will show the graphic in a second they missed actually do you expect to see the boost when it comes to the cloud business going forward >> these things take time with the bedrock. it takes time to see the tools work well with more compute space and cloud space over time. this is not an immediate shot in

the arm boost to revenue t it is an over time thing there is so much concern with the clouds business. they soft pedalled it. they were not promising massive results. that did not work for alpha an bet -- alphabet, but worked for amazon. >> i want to talk about hardware juniper networks with a solid beat up 6%. what does that tell us about tech investors >> how funny ibm is the name of the game they had a good week they did well in earnings. we're seeing things like mainframe become more relevant for them you know, they also -- ibm is a company they slept on.

they made 30 acquisitions since 2020 under their new ceo that is not a small amount they announced another one the other day. watson which hasn't felt relevant in a couple of years which is doing interesting stuff with watson x a.i. i'm turning attention back to ibm. it is not the hottest tech name on the street, but overlooked. >> sarah kunst, thank you. this morning with a bonus round of the big money movers. we mentioned this earlier. intel. shares are popping after reporting third quarter earnings that beat top and bottom line expectations as sales fell year over year. intel expects to return to growth in the current quarter and plans to cut $3 billion of costs this year. shares up 8% a different look for enphase

after the slowdown in sales will last through the first quarter of next year enphase expects numbers of $350 million. shares of enphase down 21%. shares of boston beer were down after missing estimates with falling demanded for truly and reorchard doghead beer the company is lowering earnings guidance by $2 a share the stock is up 10% this year and falling 5% right now. time for the check of the top corporate stories with silvana henao. silvana, happy friday. >> frank, happy friday to you. general motors announcing it will suspend operations across the u.s. the driverless car division making the move after california regulators earlier this week

ordered it to remove vehicles from state roads over risks to the public crews with other driverless operations in phoenix, houston, austin, dallas and miami is taking steps to rebuild trust. apple facing potential import ban on the smart watch following a ruling by the u.s. international trade commission the commission revealing yesterday it is upholding the january ruling that an apple h violate d wearable devices apple says it will appeal the agency's decision. elon musk reportedly telling workers of x who the social media platform key rivals are moving forward musk and linda yaccarino specifically calling out youtube and linkedin during the company meeting to mark one year since

musk's takeover of the company the report adding that the pair revealed goals to create a news wire service to rival pr news wire it is unclear what potential competitors to all three would look like, frank a year already >> it is hard to believe i guess we should call it x. it is not like prince. it is just x >> that's it >> silvana, great to see you coming up on "worldwide exchange," sam bankman-fried set to take the stand once again pulling back the curtain on the collapse of ftx in h oiswn words. a preview of what he may tell the court. as an independent financial advisor, i stand by these promises. as a fiduciary, i promise to be the financial steward

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welcome back to "worldwide exchange." time for the morning call sheet. roblox with a strong buy rating. raymond james see a number of factors for long-term growth following the second quarter results. shares up 2.5% this morning. we have cantor fitzgerald raising the rating on rivian shares are under performing this month and for the year, but sees an upside at this level. shares of rivian this morning up 3.25%. lastly, we have stifel upgrading old dominion to a buy.

it sees modest rate recovery and shared leadership and growth shares up fractionally in the pre-market. time for the global briefing we start with the big story this morning. the u.s. launching air strikes on two locations in syria. they were linked to iran's revo revolutionary guard and linked to attacks on military bases in the region earlier tin the show, helima croft warned about the risk of the growing tension nos in the middle east. >> if we were to see significant escalation beyond borders of gaza, i think that would cause investors to be concerned and iran is the big subject of concern. iran is a big oil producer they targeted ships before in the strait of hormuz

17 million barrels of oil flows through every day. and turning to china former chinese premier likeqiang is dead at the age of 68 shares of sanofi plunging ov overseas that overshadowing plans of the spinoff of the health division we will have mor exclusive interview at the top of the hour on "squawk box." and sam bankman-fried is set to continue his testimony later this morning shedding more light on the spectacular collapse of the crypto exchange. kate rooney has been watching this trial and has more. >> frank, we heard his side of the story in the unusual

testimony. he took the stand, but there was no jury, as the judge could decide what topics would be admissible the defense team tried to place the blame on his ftx lawyer and lawyers at the time saying they signed off on bank accounts which misused customer money they approved communications and legal loans. for that portion, sam bankman-fried sounded calm and giving short and clearan answers when the prosecution came, he stumbled and asked for clarification. he said he could not remember at times. instead of yes or no answers, he would say i would not classify that as particularly what happened instead of a no the judge repeatedly told him listen to the questions and answer the question directly

he seemed frustrated with the diversions he noted sarcastically the interesting way of answering questions. sam bankman-fried will face more cross-examination under oatoath if he was found guilty, it could add years to his sentence. there is tension with sam bankman-fried and the judge over the summer where he revoked bail accusing him of witness tampering. we expect the judge to rule on what the jury will hear. the jury will be back downtown in awe few hours. >> what is the upside of him taking the stand >> it is a gamble. the upside is to convince one juror that he did not have criminal intent. there is reasonable doubt and get a retrial.

the big win is all 12 jurors and acquittal and convince the jury he did not intend to defraud all of the cross-examination is up for his future. there are guidelines, but it is up to the judge's discretion and based on the tension inside the courtroom, the bar is high squa sam bankman-fried needs to be seen as credible it will play into the defense if he is found guilty >> kate, thank you very much coming up on "worldwide exchange," the one word every investor needs to know today and a top wealth adviser reveals the tech stock that may not be m magnificent, but it is high on her radar. we will give you that mystery chart coming up. stay with us with comcast business... it is.

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welcome back to "worldwide exchange." time for the "wex wrap-up. ford missing estimates following the labor strike that cost the company $12 billion. shares of chipotle are moving higher after beating estimates. the ceo says traffic trends remained strong in october capital one shares popping on the back of the quarterly results. beating estimates for profits as it charged higher interest rates on loans. sad news in the world of business byron wean has died at the age of 936789 he was best known for

his annual ten surprises list for the year he was considered a must read by many on wall street. investors closing out another tough trading week with the nasdaq on pace for the third straight losing week let's bring in lizzie evans. >> good morning, frank >> lizzie, the nasdaq is up big on the back of the amazon results. i want to bounce something off you. we had data released from bank of america the biggest inflows in tech stock. >> frank, a great question if you look at amazon's report on its face, it was a good report from the profitability standpoint in a normal market environment, you know, investors would be an applauding 13% revenue

acceleration in the quarter and 62% beat on earnings and earnings tripling over the last year it is not a normal market. what we are seeing is investors being skittish that is related to the bond market interest rates and concerns over what the next couple of quarters look like in the face of economic and monetary policy uncertainty. i think this is an impossible market to trade. we've been focused on the 4,200 level. we have seen the market break below and have a difficult time finding footing. you can use the volatility to buy companies you want to own for the long term, but until we have more clarity -- go ahead. >> you say it is a difficult market to trade. what is your wex word of the day? >> my wex word of the day is

bewitched. in light of halloween on tuesday, bewitched is to cast a spell over a person or over a thing. thinking about that, i can't think of a better way to describe how equity markets are performing this week and what the trading day ahead. the bond market and fed has completely bewitched the equity markets and controlling the direction of the markets >> i know you have a client list of high net worth individuals. how are you looking at the economy? i want to point to a tweet by cathie wood. she points to u.p.s. data saying the slowdown may be more dramatic than the government says it is how do you view that for your clients? >> i think so much depends on the individual's time horizon. if someone needs cash in the next year and you are clipping

5.25% on a money market, that is a real yield if you are in a high tax bracket, you are looking at taxable on municipals at 8%. from the equity standpoint, there are buying opportunities with this volatility to buy companieyos u want to own. >> i don't mean to cut you off we have to go. "squawk box" is up next. we earn your trust. maintain our financial strength and stability. and deliver solutions that meet complex needs. massmutual. partnering with financial professionals, benefits brokers, and institutions. is it possible my network could take my business partnering with financial professionals, to the next level? it is with comcast business. powering all your devices with gig-speed wifi. and you get fast downloads and uploads.

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good morning tech stocks are set to rebound a little bit after this week's 3% drop in the nasdaq intel and amazon leading the charge higher this morning details straight ahead red flags for the adoption of electric vehicles ford says now it is postponing $12 billion in ev investments. they will still lose $4.5 billion this year. and hertz will miss its target for ev fleet. and sam bankman-fried on the

witness stand -- is that supposed to be him -- and expectations for the trial today. it is friday and "squawk box" begins right now good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick with joe kernen and andrew ross sorkin wow. what a week. we did see weakness across the board yesterday. you saw the s&p down below 4,150. 4,126. this morning, you see green arrows across the board. s&p up 20. dow up 55. nasdaq indicated up by 133 let's check on the treasury yields that has definitel