here is your five at five. stocks rallied strongly on friday after jay powell signaled a rate come is next month and the momentum could continue. investors turn attention to nvidia earning this is week. it's a pivotal return for tech and markets overall. oil prices are climbing this morning on the back of israel and hezbollah trading rocket fire, raising fears of escalation in the middle east. plus, billions of dollars in

goods set to flow once again as rails in canada are warning of a disruption to the supply chain. and beijing tries to rekinding a love affair with investors. we'll look at what the country can do to recapture the interest of those investors. it's monday, august 26th, 2024. you're watching "worldwide exchange" right here on cnbc. good monday morning. let's get you ready for the trading day ahead. we look at u.s. stock futures with all three major indices finishing with big gains on friday following jay powell's speech at jackson hole. we're in the green across the board. all three fractionally higher. s&p up six points. nasdaq would open up about 35 points higher. look at last week. the dow, nasdaq and s&p are riding two-week win streaks.

s&p and nasdaq closing out 1.5% higher. the dow a step below, 1.25% higher. we continue to see the broadening of the market. two clear signs, take a look here, the s&p equal weight outperforming the market cap index and the russell 2000 doubling the s&p. the rate cuts are coming. the russell having a very big week. we saw the dow transports move in a positive territory for the year. the index seen as a heeding economic indicator. getting a big jump on friday. big moves now on friday for the dow transports and now year to date up .5%. we saw it move in negative territory for much of the year as we see the freight recession in the freight market. we're checking the bond market. yields move lower across the board. the ten year sitting at lows of the year following jay powell's comments. similar moves for the two year back below 4%. that is a read on market expectations for the federal funds rate.

the 30 year is on reading on inflation expectations falling to lows of 2024. the three year, 2.79. the ten year 3.89 and the 30 year, 3.0 #. continuing to move down. again this is a read on inflation expectation ands pce coming up later this week. we want to turn to commodities. oil prices coming off worries. we have seen some developmentes in middle east. we'll talk about that later in the show. we alsowant to look at gold. prices jumping to a new record high. getting increased confidence in a september rate cut. gold up more than 23% for the year. right now up about .5%. okay. that is your morning mondey setup. let's look at the reaction to the fed signalling a rate cut.

let's go to our first guests. good morning to both of you. great to have you both here on a morning like this. let's begin with you. you said there is research, 18 rate cutting cycles since 1970. 11 out of desperation, 7 celebratory. how would you categorize this one? >> i think we're still in the celebratory bucket right now. that is great news for investors. the job market is slowing down. it's still clear that we're not in crisis mode yet. that shows the fed is cutting on its own terms. we still have time to save this. >> agree? disagree? is this celebratory or desperation? we talked about the market slowing down -- excuse me, the economy slowing down in recent weeks. >> i think it is a celebratory bucket. one thing we look at is how fast we'll see the rate cuts. i think it depends on the data we see going forward. we're getting data that is showing the loosening of the job

market. there are things shifting in the economy. i think right now we see the celebratory bucket. but that could shift depending on what we see from the data going forward. >> all right. so according to you guys, both in a celebration mode when it comes to fed cuts. you're looking at something coming up this week, that is nvidia earnings. we've been talking about this a lot. we'll continue to show this throughout this show and tomorrow. inindivid nvidia, 7.5% of the nasdaq 100. implied volatility says that it's a plus or minus move of 10%. how you are seeing this earnings report? you are positioning ahead of it? if you're an investor, do you have to make moves for this possible level of volatility? >> i think what i -- what we looked at is late july, early august we saw nvidia come down 35% from its highs of $140. i think when you look at it from the entry point around 90 to $100 was a good entry point.

that's where we took action there. i think right now we want to hold through earnings. i think they'll perform well over the last two quarters they've done really well on earnings despite being supply constrained. i think there is still upside move there. we do see long-term value in inin -- nvidia. >> they expect them to beat that and that relates to the rest of the gains in the tech sector. agree or disagree with that idea that we're looking for other tech names getting a benefit from nvidia's beat. >> the expectations are high. we look at stocks on a sector level than a single name level. hey, i'm one of the people who sits and marvels at nvidia

quarter after quarter. tech is a victim of its own success this earnings season. nvidia, if anybody is going to pull a rabbit out of the hat, it tends to be nvidia. i think investors will focus on commentary after the fact. i would love to see earnings beat. i think commentary is important in this quarter now that ai story is cooling off a bit. >> you say the ai story cooling off a bit, the mag 7 not doing as will with as the s&p 500 or the equally weight but having a strong week. what sectors do you think are heating up right now? where would you want to put money to work? >> well, you know, i want to be clear first of all. the ai story is still quite compelling. the expectations are still also quite high right now. as rates come down, as the fed signals a cut in september, this cut still looks celebratory. meaning that the economy could continue to grow if the fed is

able to save this extension. i think there are compelling opportunities outside of tech. right now with rates still quite high but coming lower, investors are selective. they're looking at other sectors outside of tech after a spectacular first half of the year for tech. i'm thinking about small caps. i'm thinking about rate sensitive sectors. i'm essentially thinking about pretty much everything outside of tech. this is good news. this is the bull market waking up. and it's especially good if you're one of the investors that hasn't felt like the bull market b benefited their portfolio. >> the magic number is 5667. coming over with the last word. sometimes you say when the markets are moving higher you want to take money off the table. is this one of those opportunities? would the idea that we're getting rate cuts, should you have confidence to let them ride with the market and continue to kind of keep your money invested? >> i think we can keep your money invested. i think if there is a catch on

the sideline is look at being defensive. as you mentioned, we're at highs. we have seen a strong run from tech and other areas of the market. if there are areas where they look to put catch to work, being defensive may be a good opportunity. if you look at the big box retailers like walmart, they had a strong earnings report and target had a rebound. there are opportunities for investors itching to do something. i think that right now we have been in the mag 7 or in tech, this is an opportunity to hold those positions and kind of wait and see what happens through september and we get into october and the rest of the year. >> all right. great to have you both here. thank you very much. >> thank you. >> let's now see how europe and asia are kicking off the new trading week on the back of the comments. darren murphy has more on both. dan, good morning. good to see you. >> frank, good morning to you. here is your wall street pregame global setup. when it odomcomes to asia, trad are trying to balance a seesaw.

had the dovish comments coming from chairman powell. now looking at the escalation risk in the middle east and attempting to price what that will mean for markets. two things to flag for you, first was hong kong's hang seng. that is up 1%. a top performer thou the course of the trading day. down by 0.66%. in terms of where europe stabnd, frank, today it is bafrpg hol -- bank holiday in the uk. they're trading with a mix in down side bias here. holland underperforming. germany down by 0.24% after a fresh sentiment indicator showed a bearish outlook for the region. we're seeing stocks trending below the flat line across switzerland, italy and spain. not too much to write home

about. investors across the region also looking at the implications for the ecb and boe, for example, with markets now expecting those cuts to come. frank, back to you. >> thanks a lot. great to see you. we have a lot more to come on worldwide exchange. but fist, growing dilemma facing china. it attract investors. and harris getting a boost in campaign donations. and later, a pair of high-profile data breaches shedding light on the growing cyber attack threats. we'll look at how a company is protecting their high profile ies.clnt we have a very busy hour ahead. stay with us.

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welcome back to "worldwide exchange." u.s. national security adviser jake sullivan going to join with a noi rcounterpart for talks. sullivan will reportedly raise the biden administration's concerns over china continuing to back russian president vladimir putin as well as raising issues around taiwan and the south china sea. ahead of that visit, it strongly opposed the u.s. decision to have multiple chinese companies in the control list over

russia-related issues. restrictions on china are not curbing tech companies in that country from spending on ai infrastructure. according to the financial times, they have a combined capital expenditure of $7 billion. that is double from a year ago. however, overall china's big tech cap ex-spending is behind the american competitors like alphabet, amazon, meta and microsoft which spent $106 billion during the first half of this year. most of the world's biggest private equity firms stopped making deals in china this year. the paper says that firms including blackstone, kkr and carlisle are doing so as geopolitical tensions rise and beijing puts tighter controls over businesses. that report comes as policy makers in china are working to combat souring sentiment from investors looking to put work there. we have more from this story in beijing. good morning. >> thanks, frank.

today the people's bank of china left a key policy rate unchanged. normally that is not so interesting. in the past, we have never had an announcement about this medium-term lending facility or the mlf at this time of the month. and that's because the people's bank of china is attempting to adopt practices of other central banks including the federal reserve by focusing markets on a single policy rate, the seven-day reverse repot rate. they signaled on multiple rates. that led to a lot of confusion of the bank's messaging in the marketing led to a diversion of rates with what the central bank was trying to do. what we're seeingnow is the central bank is trying to really clarify the direction of its monetary policy and restore confidence among investors. there has been quite a bit of turmoil in the government bond market because of that. there have been a lot of concerns about the balance

sheets of smaller regional banks. the central bank governor over the weekend addressed this on state tv saying that the number of high-risk small banks has nearly cut in half from the peak and the focus is on supporting stable expectations and boosting confidence. the process really, frank, is interesting. while we see the central bank as trying to message that confidence and get the market mechanism to work, on the other hand, we're seeing the state really intervening in the market in the economy much more than ever before. >> all right. live in beijing, thank you very much. let's bring in our senior policy analyst at longview global. good morning. always great to see you. >> good morning, frank. >> help us figure this out. in previous years, investors had market reforms to navigate investmentes in china. now you say china's become overreliant on monetary policy actionsen that is failing to

resonate with investors. it seems like a bit of a catch 22. what are your clients telling you about investing in china? >> thanks for having me. i think it is important to note that china has been trying through a series of monetary policy, rate adjustmentes to get the confidence up. it is missing the key constituents that i think will will create that good news story, that narrative that will bring investors back or keep them there. and that is largely the private sector in china which has taken a backseat to the state-owned enterprise sectors, foreign investors and then the all-important chinese consumer. investors want to see that the trajectory in china that the narrative in china is one that shows some growth and improvement over the long term. these sort of short-term adjustments while they're making are helpful on some levels doesn't present the confidence

that investors, many of my clients are telling me they need to feel good about putting their money in china and leaving it there over the long term. >> all right. so, some of the short-term measures not working. what about the fiscal stimulus? we heard a lot about the bazooka option in your mind. is that on the horizon? what would that mean for investors? >> look, frank, it's not. we have heard this for two years. it's kind of becoming a bit of a concern that people continue to talk this book. the chinese made it clear. the big bazooka that everyone is waiting on is not coming. largely it's not coming because philosophically she considers this sort of thing welfarism. we said that. stated that very clearly. but also, the levels of debt that china's dealing with does not really lend itself to this sort of big bazooka style stimulus. i don't think it's coming. and, you know, i advise people to quit talking about it. it's not happening.

>> it's just not happening. >> it's not. >> it's just not happening. i want to talk about foreign direct investment. we cover this a hot on this story. we talked to you a lot about it as well. they're facing increased competition in china. i'm talking about the u.s. companies, coffee, automobiles, smart phones. how is that impacting companies specifically and willingness to invest in china? >> so, this, i think, is the upside of the story about what is happening to foreign companies and foreign investors in china. listen, i have been saying this for a long time. if you look for a good news story, it's chinese companies, particularly in their own market. and every single sector now, we're seeing chinese companies really compete and win in their market against foreign companies but also increasingly competing and winning in third markets.

if you look at athletic wear, it's not nike. it's other companies in china. it's not tesla in china. it's wawai, not apple. what it is saying to many foreign companies is you have to up your game and figure out how to speak to the chinese consumer. product development, how you market. all those things. it's not an easy win anymore for foreign companies. you have to work hard if you're trying to win in china and many are not. >> all right. always great to see you. thank you for your time and insight. >> thank you. >> coming up, developing news out of the middle east. that is sending oil prices higher. details on whether that violence st wh . een ayitus business. it's not a nine-to-five proposition. it's all day and into the night.

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welcome back to "worldwide exchange." the harris campaign raised $40 million on the back of the convention. they stand at $540 million sips s -- since she launched her presidential bid a month ago. they revealed they had $327 million on the campaign. elon musk may serve in trump's

administration if he won the election. he said he couldn't serve because of the schedules of running two different companies. >> turning now to the developing story out in the middle east. oil prices ticking higher after israel carried out strikes on hezbollah targets and lebanon yesterday. dan murphy joins us once again from london with much more on this story. dan, good to see you again. >> frank, good to see you as well. ten months of warfare and we have not seen anything like this. i'm showing you developments over the weekend. oil prices are up more than 1% now after israel and hezbollah traded strikes across the israe israeli-lebanese border. they launched a preemptive strike in lebanon. they said it was a large-scale attack while hezbollah fired more than 300 rockets and dozens of drones towards israeli military bases and missile

systems. it says in response to the killing of its top commander. investors exposed to regional risk assets or oil, the question is, is this the beginning or the end of this escalation cycle and what impact could this have on the cease-fire talks which get back under way in cairo this week? it's important to point out that hezbollah said that its strikes were completed successfully and the israelis sought to calm tensions saying they don't want a war. this could be somewhat of a climb down for both sides. the risk of miscalculation is still real in the region right now, frank. >> all right. looking at brent crude right now, trading below $80 a barrel. we had conversations about this quite a few times n . in fact bh, when i was in londo we saw the tensions. the price action, is this sustainable? >> well, that is the real question at the moment.

we have also seen oil prices just turn positive as well. but the reality is this is a very well-supplied market. in part because of the opec strategy and also because there is just a lot of oil out there right now. so, this benchmarks perhaps are a little bit more malleable when it comes to headline risk of escalation in the middle east. traditionally, we've seen prices not being sustained when we have this type of geopolitical risk premium in the market. that is really critical to watch. the other thing to watch is what happens when the cease-fire talks. after the weekend, it was reported that a senior u.s. official told nbc news that those discussions in cairo have been constructive. it's understood that process is likely to continue over the coming days as well. so, if we do see some sort of a breakthrough and cease-fire which is maybe a low risk at this point, then we could see maybe momentum coming out of the

market as well. really volatile time. >> looking at the moves now, they're up over 1%. dan murphy in london. thank you again. coming up, digging into the sh market. next big test, nvidia results and created generational wealth for every day investors. if you haven't, you should follow our podcast. check us out on apple or other podcast apps. more "worldwide exchange" coming up.

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it is 5:30 a.m. and futures are higher as momentum from friday is carrying over jay paul says the time has cut for rate cuts. nvidia earnings this week will be a market catalyst. we'll look at the transformtive impact that stock has had on the retail investor. you heard the headlines, united health, ticket master, list of cyber incidents doesn't end. the ceo of checkpoint shows us how the outage is changing his business and the entire sector. it is monday, august 26th. you're watching "worldwide exchange" right here on cnbc. >> and welcome back. i'm frank collins. thank you for joining us on this monday morning. we're going to pick up with a check on the u.s. stock futures

with the three indices finishing with big gains. a bit af move here. the dow moving into negative territory. we started the show up 13 points. you can see now it's down nine points. s&p 500 off the highs of earlier this morning. up over five points. nasdaq, 26 points higher right now. last week the dow, nasdaq and s&p 500 had a winning week. they were riding two-week win streaks. they closed up 1.5% higher last week. the dow a step lower at 1.25%. positive moves across the board. we're also continuing to see a broadening of the market. two clear signs the s&p equal weight outperforming the index last week. it was up over 1%. also, the small caps, russell 2000 morning doubling the s&p 500 last week. investors gained more confidence that rate cuts are coming in september. you see the big moves on friday after that jay powell speech as well. bo both of them outperforming following the jay powell

comments. we saw the dow transports move into positive territory for the year. they're up .5% for the year. the freight logistic is a leading economic indicator. they saw a big jump on friday to the upside. turn our attention to the bond market. yields moving lower across the board. 3.79 is the benchmark. hitting lows of 2024 following jay powell's comments. similar moves for the two year, back below 4%. the two year is a read on market expectations for the federal funds rate and we want to look at the 30 year, 4.08. moving significantly to the down side in recent weeks. this is seen as a read on inflation expectations also at the lows of 2024. coming up on friday, we have pce. we want to turn our attention over commodities. oil prices are coming off a leasing week off demand worries. they continue to weigh on the price action. seeing moves to the upside this

morning. up 1.25%. similar for brent crude. dan murphy broke that down. we want to talk about gold. gold moving to a new record high on friday. the safe haven getting a boost from increased confidence in a september rate cut. gold moving 24% higher year to date. all right. that is your morning setup. get a check on this morning's top corporate stories. good morning. >> frank, good monday morning. nearly 10,000 canadian rail workers are ending their work stoppage today. the move coming after the country's labor relations board sided with a government order directing canadian national and canadian pacific kansas city to resume operations and impose binding arbitration. the teamsters union will will comply but plans to appeal the ruling in court. canadian pacific says it will take several weeks for the rail network and supply chains to

full i had recover from that stoppage. ibm is shutting the recent development operations in china. the latest retrieved by a u.s. tech company. dow jones reports that ibm told employees it's moving the functions to other overseas facilities including india. the closure will effect more than 1,000 people. ibm has not responded to a request for comment. and there are plans for paramount global including a partnership with a tech giant such as amazon or apple to improve the streaming service. the heir to the seagrams labor ford put it in control of paramount last week. bloomberg reports that they believe paramount needs more specific skills in term of ad sales, licensing and growing a customer base. paramount plus has 68 million subscribers. that is far fewer than rivals such as netflix and disney plus,

frank. >> interesting to see this play out. taking a look at paramount global shares. up .5%. thank you very much. turning attention to the big event for the markets this week that, is nvidia earnings set to report on wednesday. shares jumping 4% on friday adding to the staggering year to date gains. now up over 160%. but that is just nothing compared to the last ten years. take a look at this chart. this is quite the chart. nvidia shares are up over 26,000% during that time. expectations around results for this quarter, they're sky high as well. they expect another drop the mi performance. they say they expect a strong quarter. and the results, they could have a major impact on the broader markets. we've been discussing here on "worldwide exchange," the stock accounts for 6% of the s&p 500, 7.5% of the weighting on the nasdaq 100. post earnings, the stock has the potential to swing 10% either to the upside or to the down side.

the pros, they're not the only ones to take advantage of that big rise in nvidia shares. the had a transformtive impact on the lives and portfolios of retail investors like tom ainge who will bought shares back in 2017. >> i was all in at that point. it was roughly $300,000. as of now, if you look at the portfolio, you look at that investment that, $300,000 has grown roughly 2500%. i know if i sell it i have to pay large tax and whatever i invested in has to go 30% to make up for the tax. but then i'd have the money and have it to be able to diversify and do something else. i hated to pay the taxes now if i thought nvidia would still go up some more. i thought it was window cleaner

my mother was a homemaker. i never felt comfortable there was enough. but since this runup, those concerns are abated. it's also something that i know that i can leave for my familiarly. my daughter is getting married this year. i got money to pay for the wedding and don't have to worry about it. so, it's life changing for myself, my family. >> coming up on "worldwide exchange," earnings doing little to solidify confidence. the new bearish call this morning. we're back on "worldwide exchange" in a moment. bj shares up 1.5% in the premarket.

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( ♪♪ ) because this game is for everyone. ( ♪♪ ) and welcome back to "worldwide exchange." time for the morning call sheet. j.p. morgan downgrading bj's. it is a bit conservatives. consumers across all levels seek value. planet fitness is a bullish top pick. they call it an attractive idea heading into next year sett up the new leadership. and the price for amazon is going down to $225. they will face heavy upfront cost ahead of the launch of the in internet service. we have the one word that every investors needs to know today. plus, the state of the

cybersecurity. a pair of high profile breaches including one that brought air travel to a halt. we have the ceo of checkpoint software on the susrge and hack attacks that his company is seeing. s less about reaching a magic number... and more about discovering magic. what is cirkul? cirkul is

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that incident will have a material impact on the business. officials in seattle confirmed that an internet out anlage the airport was a cyber attack. and this week we get earnings from crowd strike. first report after a global software meltdown that crippled a number of industries. shares of checkpoint are at an all time high when digital security is so much more important. let's join the founder and ceo of checkpoint. >> good to see you. >> we mentioned your stock trading all time high. i want to look at the price action in your company since that global i.t. outage. up double digits. we saw reports last week that other companies are gaining on the back of some decreased confidence in crowd strike. have you seen a big boost in either business or inquiries for your business since that global

i.t. outage? >> no, i don't think it has big impact on us or any other company. crowd is a big company. they made a mistake. i hope they learn from it. what we're employing is much better quality assurance and processes that don't make a single update go to the entire world at once. i do think that cyber remains important. i think what we're doing which is giving the perimeter security and network security that remains super important as the main way to contain and defend against cyber attacks. the market continues to be kind of healthy. i think the need for cyber will be very important in many years to come. >> okay. i mean, there is a very clear need for cyber. i do want to ask you, we're hearing if analysts clearly investors decided they have more confidence in your company or maybe they want to put more money in your company.

i'm sure you're at least friendly and familiar with the people in crowd strike and george kurts. i do have to ask you, you're not seeing more people trying to diversify the vendors they're using? >> i think it's very minor. some people can get upset about it. i think overall the market will remain stable overall. again, what i've seen in my career. at the end of the day, one mistake is not something that -- something that people go on about for life and forget about it. they do check the company and the technology and what is needed all the time. i do think that we will see more consolidation in cyber. people are using way too many vendor for cyber. i think that crowd strike will remain one of the most -- the biggest cyber vendors. >> all right. i want to get your data. acour according to your data, 30% increase in cyber attacks year-over-year. where are they coming from? are they targeting particular industries? >> i think they're all over. we're seeing it in every reej

yof -- region of the world. we do see a lot of attacks on industries that are sometimes less secured like government and education, for example. but basically, it's very simple. the attackers scan the network. where they find a weak point, they get inside. so we'll see the statistics there. >> one thing that we're talking a lot about when it comes to the broader market is the idea that the fed cutting rates in september. does that impact your business whether it's your business internally or even your customers' business s that a meaningful impact? >> i don't know if it is meaningful. i've seen the i.t. industry has been affect bid slow down and less spending. it did touch or industry. i think the fact that the fed thinks if they got inflation under control and they do want to encourage more growth is overall good. i'm not a financial expert.

but that's what it tells me. >> that's what your customers are telling you. you don't have to be a financial expert, just listen to them. one last question. artificial intelligence, we talk about how it's impacting cybersecurity throughout the year. we had quite some time since we lost talked to you for you to see the impact of it. what are you seeing right now? is it more of a benefit for cybersecurity or is it helping the hackers? how is that dynamic playing out currently today? >> i think it's both. we're seeing more and more hackers using cyber, using ai as a means to create stronger attack. they need to create fake identities and fake e-mail as a so on. i think it will help everybody in the world in fighting that. i think it gives us tremendous amount of control and if i look at that, i think that ai can drastically revolutionize cybersecurity. >> all right. it is always a pleasure to talk to you. thank you for coming back on.

>> thank you very much. measure seeing you. >> coming up on worldwide exchange, we tip off a critical trading week ahead. the next guest says contests the psyche of investors. you have haven't already, follow a podcast. check us out on plape, and other apps.

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welcome back to "worldwide exchange." time now for the wrap-up. oil prices moving higher. israel carried out strikes on hezbollah targets in lebanon yesterday. you can see brent crude is up 1%. again, carrying on retaliatory strikes and cross border fire since the war in gaza began. 10,000 canadian rail workers are ending the work stoppage today. it cops after the labor relations board sided with a order directing canadian pacific kansas city to resume operations and impose binding arbitration. the largest proposed grossy store will head to oregon today. they will see to grant an injunction to block the $24 million merger between kroger andal ce and albertson's. the harris campaign fund stands

at $540 million. former president trump throwing cold water on the possibility of elon musk serving in his administration. in an interview, trump said the tesla ceo could not serve in a cabinet position because of his demanding schedule. and uber fined $325 million by the data protection watchdog for transferring driver data to the u.s. without proper protections. it is a record fine by that agency. the ruling is flawed and uber will appeal. look for data on home prices, consumer confidence, personal spending and all topped off by july pce on friday. nvidia earnings lead the list of earnings for this week reporting results on wednesday. we hear from crowd strike, salesforce, dell, best buy, dollar general and ulta beauty. the markets coming off back to back positive weeks thanks to jay powell signalling that rate cuts are coming. the major averages rebounded in a big way since the selloff a few weeks ago. the s&p 500 now less than 1% off the record high.

it was set back in mid july. take a look at futures. just a bit mixed right now. the dow fractionally lower. joining me now is president and cio. kevin, great to have you here in studio. >> great to be here. jackson hole last week. jay powell really signalling we're going to get the cuts coming up. we saw just about everything move higher. that was friday. how do you see today playing out? >> investors finally heard the words they want to hear from the federal reserve when chair powell said the time has come for spolicy to adjust. by how much and when? i believe the not chart comes back on to the table now which showed three rate cuts of 25 basis points each in 2024. we still have three meetings remaining. i bhef we'elieve we're going toe three 25-pacbasis points cuts t year. i think they'll be gradual coming up because there is threat of a potential recession, much more so than they are with inflation staying above 2%.

>> so if it we're having inflation concerns, why not do a 50% basis point cut? maybe that would take pressure off the economy. sfwh i i believe it would. i believe we won't do. that they don't want a surprise market. they want to be gradual. they remember the last time they cut interest rates prior to inflation moving back to the 2% target in the mid 1970s. we saw the return of inflation to double digit levels. they then had a step back in and raise short term interest rates to 20%. we think 5.25% is restricted. can you imagine 20%? will cost brought on a recession. this is a difficult situation that they find themselves in which is why i think they're going take a gradual pace. >> you say gradual. i want to see how you see today's shaping up. what is your word? >> juggernaut. i can't think of any better company to represent a juggernaut than nvidia. and nvidia's earning this is wednesday have the potential to actually change investor psyche and also the outlook for ai

investing overall. think about what lies ahead for nvidia right now. i think they're going to report strong earnings, strong revenues, and strong forward looking guidance. we also know they're spending in the data center space which they call ai factories. they're going to confirm the rollout schedule not just for black ultra next year. and nvidia is the hub of the ai ecosystem. similar to that how amazon has become the hub of the e-commerce ecosystem. you believe it's going to bleed into the tech space in a positive way. i want to get to your other picks. one of them is a kmpd called vertive. it is down 10%. vin moves for the two different areas. curious, why vertiv versus

utilities? ? every big tech company is calling every day, we need more power. >> we know that data centers burn a lot of power and run hot. vertiv provides electricity and infrastructure in the cooling centers to the das centers. the ai factories need the services of vertiv to stay cool and use energy more efficiently. i like utilities too. they're a back door play into the ai revolution. a company such as southern company. attractive yield at 3.3% h and guess what? they supply electricity and natural gas utilities to individuals, businesses and data centers. >> one thing about vertiv, forward pe of 27 times. do you think the decline is people get religion on valuation? >> that has to be the case. we're seeing other competitors come into the fray as well off cooling. >> a lot of competition. a lot of money flowing into this space. more money falls in equals more

question competition. we want to take a look at the futures one more time. the dow futures moved into negative territory. they would open about 6 points higher. s&p and nasdaq firmly in the green. that does it for us on "worldwide exchange." coming up, "squawk box." it starts right now. >> good morning. as you saw there, futures taking a bit of a rest after the buildup to fed chair powell's message from the mountains. the major averages surging on friday on a rate cut in the near future which is almost sercerta at this point. inind nvidia turning in their scorecard later this week. and another black eye for boeing while two astronauts wait for a ride home. i think they have something to do up there for another six

months. it's monday, august 26th. happy birthday, mom. and "squawk box" begins up there. she's way up -- i hope she hears me. "squawk box" begins right now. >> good morning and welcome to "squawk box" here on cnbc live from the nasdaq market site in times square. becky and andrew are off today. no big banks, right? >> i'm here. just to see you. >> that's amazing. >> normally, i'm like, it's not that i'm dreading big banks, but there are a lot of really arcane in the weeds information that you bring us with the big banks. >> there are a lot o