it is 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." here is your "five@5:00." inversion reversion. a key indicator of recession easing off as the treasury market does something for the first time in two years. deal in doubt. nippon's $15 billion offer for u.s. steel faces more push back.

details ahead. nvidia pushes back against the reports of the department of justice investigation. later, getting ready for kickoff as the nfl moves one more step away from traditional broadcast in what is seen as a huge win in the streaming wars. it's thursday, september 5th, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ good morning. thanks for being with us. i'm frank holland. let's get ready for the trading day ahead. we get a check of the u.s. stock futures after the mixed stocks yesterday that saw consumer staples as the lone sector hitting the all-time high. it was in the green across the board. the nasdaq moved lower. the s&p fractionally higher. the dow would open up 45 points higher. investors are waiting and anticipating the next major market catalyst.

it is expected to be the august jobs report due out at 8:30 a.m. eastern time tomorrow. economists are looking for hiring of 161,000. friday's numbers coming after the jolts report at lowest level since january of 2021. we're keeping a close eye on the modest rebound in nvidia shares. higher this morning after closing lower yesterday for the second day in a row. you see nvidia up .75%. week to date down 10%. another chip stock to keep an eye on is broad come. the third largest in the smh chip etf. broadcom reports after the close today. you see year to date the stock is up 38%. up 16% in the past three months. take a look right here. you still see it is off from the june highs. nearly 20% off from the june high. broadcom is no nvidia, but the third best performer. we are watching the bond market and 10/2 inversion.

after the ten-year yield jumped ahead of the two-year yield since 2022. you see the two-year treasury at 3.77%. the ten year-at 3.77%. it is important to note the 30-year is at 4.07. this is a read on inflation expectations. we're looking at the energy market. oil holding just under $70 a barrel. wti right now. $69.80 a barrel. it is up this morning. coming off the lowest close since december. brent crude is up 1%. really key here sentiment level back below 70 bucks a barrel. that is the money set up. let's see how the europe trade with arabile gumede in the london newsroom.

good to see you. >> good to see you, frank. it has been some time. the european market around two hours since the opening trade here across the board. we actually moved sideways across the day's trading. a lot of the movement in the semiconductor sector. we see movement in that space. you see gains across the bourses. the swiss market is managing to move lower. cac 40 is down .20%. technology is down in the overall market picture. the biggest loser .75% weaker in the overall trade. asm international and asml is getting a bit of a hit from the rest of the chip sector. of course, key question mark whether that demand structure is peeling back off or, perhaps, just a positioning trade when it comes to that. 1.6% higher for the utilities number. that gives you a sense of what

the market is looking at right now. a little bit more defensive with regards to the structure and what it actually is looking to finding uptick. defensive gains. so, too, real estate, on the back of the interest rate concerns as you look for a cut by the ecb and the bank of england then with banks also 1% higher. insurance stocks managing to tick up 1% as well. frank. >> amtrabile, thank you very mu. we turn back to the white house. president biden will announce $7.3 billion in new clean energy investments focused on rural areas. that money will help deliver energy to 23 states and support 4,500 jobs. time for a quick check of the corporate stories, including new details on the white house's likely rejection of the u.s. steel and nippon steel deal. silvana henao is here with more. >> good morning, frank.

reuters reporting that the biden administration told nippon steel that the $15 billion bid for u.s. steel would cause a security risk in the industry. in the letter which has not been previously reported, the committee on foreign investment says the deal would damage american steel production and decrease the likelihood that u.s. steel would continue to aggressively seek trade remedies. the companies had until yesterday to respond which they did privately and publicly saying the rejection of the deal could cost jobs and weaken the u.s. steel sector. we are seeing sharies up 2.5% i the apre-market. nvidia receiving a subpoena from the justice department. the a.i. chip giant said we inquired with the u.s. department of justice and had not been subpoenaed.

answering we are happy to answer questions about our business. bloomberg reported tuesday that nvidia received a subpoena causing the stock to slip in after hours trading. nvidia is controlling 80% of the data center market. we are seeing shares fractionally higher in the pre-market. shares of top golf callaway brand are up in the pre-market. this after the decision to split into two separate companies with the callaway brand focusing on golf equipment and lifestyle and top golf will focus on the driving range entertainment venues. this announcement comes three careers after top golf and callaway merged in 2021. frank. >> silvana, thank you very much. see you later in the show. turning back to the markets. investors are looking to the

latest adp figures this morning. it follows the jolts reports showing job losses are lowest in years. ahead of that, san francisco fed president mary daly saying the jobs report is central to the decision on not if, but how much it will cut rates. we are looking at 25 or 50 basis points. daly adding cuts are needed to keep the market healthy. jim cramer says it's real a double-edged sword. >> unless the economy is deteriorating. they don't cut when business is good. you didn't cut. we all act like nothing should go wrong. like we're rewarded with that? wrong. >> let's bring in gina sanchez.

we normally talk to you from london or california. thank you for being here. >> thank you for having neceme. >> cramer says it is a double-edged sword. if you want the cuts, it will come with softness in the job market. >> absolutely. we think this is very much a goldilocks scenario that you have to get just right. if you get too much, it will spook the markets. obviously, we heard powell telegraphing the 25-basis point cut. i think not getting a cut would be an incredible disappointment. getting 50 points would send shivers into the market saying we could go into a steeper slowdown or recession. that's not necessarily good news either. >> i want to ask you we saw consumer staples hit a record high yesterday. you saw that seems a bit odd to go defensive in cyclicals.

>> it is odd. the defensiveness is probably what's there. some of it is also just looking for valuation. i think that's part of the story. on the whole, we're in the very interesting moment of uncertainty where we are waiting for the fed to act and if they can do enough and not too much. are things slowing down enough to thread the needle. we have such a truncated set of election uncertainty during which the market has to adjust to very different policy stances. there is a lot of uncertainty right now. you can get a lot of counter currents in the market. >> it is funny. americans saying a different candidate? we're going on with our day. i'll not go with the twists and turns in the campaign. i want to come back to something else that a lot of people are talking about. 25 or 50-basis point cuts.

bond traders are pricing in already. is there more room to run in the cyclical trade if we only get the 25-basis point cut? is the idea of a 25-basis point cut already priced in? >> i think it is priced in. if you look at the way the fed funds futures have priced this in, they priced in 100 basis points by year end. that's three meetings. one of those has to be 50-basis points to make that. that is priced into the market. you also have a lot of shakiness, frankly. you look at the markets and what's driving multiples right now. the tech multiple is priced in there. you are seeing a lot more softness there. that could kickoff a whole series of repricing. >> one last question before i let you go. the d inversion of the 2/10. we have talked about it for two

years. we have not seen the recession or really seen much impact tied to the data point. >> it is waiting for the yield curve. it is interesting because it has just not -- the more we have adjusted to expectations for rate cuts, the long end has fallen by more. we will keep the inversion going because we don't believe growth is coming. >> waiting. thank you, gina sanchez. a lot more to come here on "worldwide exchange," and including the one word investors need to know today. first, thursday night football and the season bringing billions to sports books and streaming services. why investors should be watching more than just the red zone this y year. and more on the nippon and u.s. steel deal. later, ken griffin be warned. details on the group of

investors which have seen the funds sky rocket. you don't want to miss that one. a very busy hour ahead when "worldwide exchange" returns. stay with us.

welcome back to "worldwide exchange." the new nfl season kicks off today with the baltimore ravens and chiefs. you can see it on peacock at

8:00 p.m. eastern. sports betting is not the only big issue with the nfl and 30 teams. let's bring in patrick rishe. >> thanks for having me on. >> lots to talk about. streaming and private equity investment in the nfl. let's start with the big thing. kickoff to the season. obviously, the kickoff to the sports betting season. chiefs considered the big favorite to win the super bowl once again this year. is that good for the gaming companies or nfl ratings? 12k >> well, i don't know if that's good, but the more states that legalize gamebling and i'm talking to you three hours drive from kansas city and one of the few states that hasn't legalized. the pro sports teams in missouri are not happy about this, but the american gaming association is forecasting $35 billion

gambled on nfl games this year. that's $9 billion more than the $26 billion bet last year. this is a massive amount. obviously, when you legalize gambling in certain states, it is a game changer for bringing fans in the game. >> definitely for engagement. you see everybody looking at this phones looking at fantasy teams or bets. >> my students do it during class. that's the worst thing. >> patrick, i'm sure you are facing a lot in the cell phone ea era. i want to talk about my hometown eagles. unless you're in the market, it is a streaming only game. what do you feel about the streaming rights and the nfl? >> we know streaming is here to stay and every league has it. they're going after younger fans. we saw evidence last year which was reported 3 million

subscribers was added to amazon last year. excuse me, to the streaming service covering the games. that is evidence there was a bump that was experienced because you have these games on streaming and peacock and what have you. i also think it's really important that, you know, the nfl is taking a cue from the nba which has done the best of the american sports leagues in expanding their growth internationally. it is not a surprise they're expanding now into south america. we know they played games in mexico before. again, everyone in the world wants to watch sports live. when you are in the similar time zone as south america and the sport itself with a lot of folks represented in south america, the hispanic population is growing impact of watching the nfl. folks in south america with a growing interest in the nfl. no better time to bring the game there than now. >> it is interesting we talk

about streaming rights with directv and disney get into a fight over broadcast rights right now. obviously, abc and espn is a big nfl partner as well. >> no question about it. these things will play out as they will in negotiations and boardrooms and courtrooms in some cases. again, it is incredible with the streaming impact and where this is going. i think there's going to be people always wondering what is going to happen with the lineal broadcast. there will be people there and the majority. you have to have the streaming impact. >> patrick rishe, thank you. ahead of the kickoff, we look at the valuation of the league's teams. that starts at the top of the hour on "squawk box." we bring together athletes and investors to look at business

sports and eentertainment. to register, visit the qr code on youscenr re or cnbc.com/gameplan. ahead on the show, big mover movers and the stock that's tanking at the open. we're back after this break. introducing the second chance offer from betmgm. what'd he say? if you bet on a player to score the first touchdown and instead he scores the second?

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the company reporting sales that were ahead of estimates, but came up short on subscription revenue. it reported a loss of 5 cents a share for the first quarter. smaller than a year ago and not as bad as the street was expecting. shares down 19%. shares of hp enterprise are under pressure despite reporting a pickup of demand in the latest quarter with the sales and revenue coming in above estimates. shares are down 1.5%. charge point, the ev charging company is cutting the work force by 15% and reorganizing operations. the company says it will take a $20 million cost restructuring hit in the third and fourth quarters. shares of xpo are lower after the company reported the less than truckload tonnage dropped 4.5% in august from a

year ago. management calling out a soft demand in environment. shares of xpo down 3%. turning attention now to a different money mover. family offices seeing a big surge in assets and expected to keep glorowing. the privarobert frank joins us more on the story. good morning. >> good morning, frank. family offices have $3 trillion in assets. that number is expected to top $5.5 trillion by 20 meaning they would more than double in a decade and larger than hedge funds according to the report from deloitte. the number of family offices set to grow 10,000 by 2030. it is all fueled by record wealth creation. people worth $100 million or more is the typical for a family

office. that number has more than doubled to over 28,000. you have the ultra wealthy pr preferring the privacy. when it comes to where these family offices are putting their money, they are moving to alternatives to private equity and dialing back on public stocks. nearly half of the portfolios right now are alternatives and about 25% in stocks. all that growth has created a family office talent where 40% of family offices plan to hire this year. more are giving executives equity and a share of deals to better attract talent. for a lot more on family offices and where the wealthy are putting their money, you can go to cnbc.com/insidewealth. that is cnbc.com/insidewealth. frank. >> really interesting report on the growth outlook when it comes to the family offices.

i want to ask you, only 25% in the public equity market. why such a tofocus on alternatis right now? >> the big is time horizon. family offices are investing for 50 or 100 years. whereas most are investing for yo retirement. they like private assets and private equity and not worry about the ups and downs and not as concerned about annual increases and returns. >> robert frank, great to see you. thank you very much. coming up on "worldwide exchange," getting paid to taste test pumpkin spice and sckhoing details about a possible fire festival ii. yeah, two. the top trending stories are coming up. you are bountiful, it's in your nature.

it is just about 5:30 a.m. in the new york city area. there's still a lot more ahead on "worldwide exchange." he's here's what's on deck. futures are starting to lose some of the steam. vice president kamala harris and former president trump battling for the white house, but the two are increasingly fin finding themselves on the same page. why sky high home prices in big sky country could determine

the balance of power in congress. it's thursday, september 5th, 2024. you are watching "worldwide exchange" here on cnbc. ♪ welcome back to "worldwide exchange." i'm frank holland. thank you for joining us this morning. we pick up the half hour with the futures with the stocks off a mixed session. you see the futures in the red across the board. when we started the show, nasdaq was fractionally lower. the dow turning fractionally lower. the s&p fractionally lower. i want to say the s&p and dow were in the positive when we started the show just about a half hour ago. again, looking at the nasdaq slide. we want to look at the biggest laggards. copart shares are down 5%. old dominion falling as well. we talked about the mid

quarterly report. old dominion in the same space as ltl. super micro down 1%. we are watching nvidia shares trying to mount a rebound after closing lower for the second day in a row yesterday. share are up .25% of 1%. they were up .75% earlier. this stock under quite a bit of pressure this week. fueling reports they are subpoenaed by the department of justice. shares down 11% for the week. another chip stock to watch is broadcom reporting after the bell today. take a look at the chart. the stock is up 16% in recent week in the last three months. we will talk more about this stock with hightower's stephanie link coming up. down .50%. we are checking the bond market ahead of the big monthly jobs

report. we are watching the 2/10 inversion. take a look right now. you can see the benchmark at 3.765. the two-year at 3.764. we will talk about that with stephanie link as well. i want to mention the 30-year at 4.06%. above 4%. 60 basis points lower than the high. we are looking at oil. holding at $70 a barrel after the lowest close. up 1%. rebounding a bit today. brent crude, international benchmark below $74 a barrel. that is the money set up. we turn to the campaign trail. vice president kamala harris holding a rally in new hampshire yesterday unveiling a new part of her economic policy ahead of tuesday's debate with former president trump. harris announcing a plan to offer small businesses a $50,000

tax deduction for start-up expenses and proposing a small increase for the capital gains breaking with the plan president biden laid out in his budget earlier this year. >> it's just not right that those who can most afford it are often paying a lower tax rate than our teachers and our nurses and our firefighters. it's just not right. it's just not right. so, that's why i support a billionaire minimum tax and corporations paying their fair share. >> for his part, trump blasting harris' proposal with fox news yesterday as candidates differ on this issue, but align with many others. megan cassella is joining us with more on that story. good morning. >> frank, good morning. this is something of a surprising trend emerging as harris and trump continue to rollout their policy agendas.

this alignment between them on the handful of economic issues. the proposals differ, but they came out against the nippon steel deal. they want to see a larger child tax credit. jd vance talked about $5,000. they embraced the protectionist trade policy against china. trump wants to go further than that. they are both talking, harris, in a measured way of tax tax on tips. harris is offering ways to pay for some of her plans, but trump, so far, is not. this is not to conflate the two agendas or candidates. both parties are leaning into anti-globalist policies which feature a larger role for the

government shoring up the american workers. i spoke with a harvard professor about this and he sees this as a convergence in policy neither could see coming a decade ago. he and others told me they see it shows us where economic policy is headed in the u.s. no matter who wins. it is more inward looking. there's more focus on workers. less adherence, frank, of pro business and business on the economy. frank. >> megan cassella live in d.c. thank you very much. let's talk more about harris and trump policies as we head into the home stretch of the campaign with two months to go before election day. jimmy pethokoukis is the analyst and senior fellow at the american enterprise institute. jimmy, good morning.

>> good morning. >> let's get into what's going on today. harris going to new hampshire unveiling the small business proposal for a tax credit of $50,000. her estimate shows the start of the business is $40,000. this is a state with a lot of independent voters. is this a needle mover nationally with independent voters in the granite state? >> i think, perhaps, on the margins. the wave of harris policies was not just sort of populist, but more left-leaning policies. the trump campaign as her as a hard left-winger. i'm pro not the biggest businesses who need a tax cut. i'm for small businesses. even her pro business policies have this populist feel to them.

>> let's talk about something that megan was talking about. the areas where trump and harris align. one is u.s. steel. u.s. steel coming off the worst day in seven years yesterday. both sides of the campaign are against this deal and a lot of it has to do with u.s. steel is in the battleground state of pennsylvania and possible impact that the company says that this deal not going through has political ramifications. your take on all this? >> if u.s. steel was named amalgamated steel and in a non-blue state or red state -- megan did a great job. populist economics is inward looking and vibes based.

both campaigns think u.s. steel still has a lot of emotional residence as an american bull work from a previous age. i don't think it makes a ton of economic sense or national security sense. >> there is, obviously, a big union impact here. the unions have been against this deal. they are worried about their jobs. the harris campaign, obviously, and previously the biden campaign, have come out pro-union. how do you feel it comes with the vote and other union issues with the country? how do you see this issue possibly impacting that vote? >> the total union vote isn't what it was. a lot of union leaders are still very democratic, a lot of members are leaning trump.

the harris campaign is not going to do anything to alienate those members. they want to win those back. this isn't fundamentally about economics. it is bad economics. we want more investment in the united states. as i mentioned earlier, japan is an ally of ours. this is a very sort of narrow, economic policy meant to win votes. not actually having a positive economic impact. it is election season and we're two months away. >> not only an ally, but g7 member. we have to wait and see what happens. jimmy pethokoukis, great to see you. thank you very much. >> thank you. coming up on "worldwide exchange," the bullish call on one chinese ev player. we'll show you the name later. first, we have the top trending stories. don't tell pumpkin spice lovers

that. one web site is offering a pundit a chance of $1,000. the applications are due september 10th. billy mcfarland with withe expression at first you don't succeed, try again. in the interview with "the wall street journal," mcfarland has been plans fyre festival ii. he said he already sold the tickets. and jensen huang throwing out the first pitch ahead of the giants and arizona diamondbacks game. s luck with computer chips is not enough to help his home team which trails is in the three-ga

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two-year high from back in july. a downgrade from bank of america to zscaler. cutting the price target down to 195. b of a cites growth and competition. coming up, one word every inveorne to owsts edkn today and the sky high home prices. we will head out to big sky country when "worldwide exchange" returns. stay with us.

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welcome back to "worldwide exchange." the housing market and elevated home prices are proving to be a big talking point in the lead up to the 2024 election. sky rockets home prices look to be a key focus and key congressional races as well. emily wilkins is joining us from mi missoula, montana with the critical race. >> reporter: good morning, frank. this is a new house where housing prices have ksky rocketd and an issue in who controls the senate next year. senator jon tester faces a big battle in keeping his seat. he made prices a central part of

his campaign. d.j. smith, the president of the montana association of realtors told me an increase of people moving into the state are driving up housing prices beyond what most montanans can accord. >> people in colorado and california would sell for millions and have equity to purchase here in montana. we've seen that. that's led to 30% of our homes, record number of homes last year, bought with cash. >> reporter: tester has several proposals to make housing more affordable. this includes a tax credit for owners in housing communities to sell parcels of land to montanans. his republican opponent is railing against high home prices. he focused on the shortage of the labor in the state. the owner of the company that built this home said a lack of labor is driving up costs.

>> if you have a pool of three or four subcontractors to use, and not 30 or 40, you will have not as competitive a market as you do in other areas of the nation. >> reporter: one of the proposals is to increase access to trade schools among other measures. recent polls show a tight race between the two, but currently, s shehey has a slight lead. >> i know you are standing in front of the home there in missoula how much does that home cost and how much does it compare in the new york area or d.c. area where you live? >> partially, yes. it was interesting talking to the people who built this home. these would be homes you expect to be a first home. because of interest rates and high costs and because of

everything with labor, those homes are just no longer affordable. they pivoted to homes like this that apply to older individuals and retirees and those coming out to montana. i spoke in the other shot with d.j. smith with the realtors association, that behind him was a duplex. part of the reason they are building those now, the apartment buildings is because those are going to be cheaper for those looking for homes. the high prices are leading to a change in the builders seeing the market. it is interesting to see what other state and federal proposals might do to it. >> emily wilkins live in montana. good to see you. coming up on "worldwide exchange," the next hurdle the stock market may face. we'll be right back after this break. now whatcha wanna do with this? but the feeling that, no matter what, you're taken care of. ohhh, i just earned a hotel suite! hee!

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welcome back to "worldwide exchange." time for the "wex wrap-up." we start with mary daly telling reuters that the jobs report is fo important to the central bank decision of cuts. cuts are needed to make the labor market healthy.

and nvidia shared a statement that it has not been subpoenaed and happy to answer questions from regulators on its business. callaway is higher ahead of the day after it reveals a split with top golf. trump media sheds 6% yesterday. that latest slide comes when trump will be allowed to sell his shares later this month. and beyond meat will announce a new steak alte alternative. the rollout of the product will include a partnership with a restaurant chain known for serving healthier food. we look at the adp and jobless claims data before the open and we get broadcom earnings after the close today. getting ready for another trading day ahead. as we mentioned earlier, the

nasdaq go negative and s&p go negative. nasdaq off the lows of earlier, but still down 35 points. the s&p is fractionally lower. the dow off the highs of earlier today. it would open up close to flat or seven points higher. let's bring in stephanie link, the chief investment officer at hightower. stephanie, good to see you. >> good morning, frank. >> what do you make of the moves in the futures? when we started the show, the s&p and nasdaq were higher and now thaey're in the red. >> you have the market which doesn't like uncertainties. frank, you know that. we have shave step back. we are just two weeks from jackson hole and there is a rate cycle cut coming.

we got through nvidia and that news was good. the fundamentals are strong. a.i. is a very powerful theme for the long term. in the meantime, the economy is holding up and that bodes very well for earnings going forward and i think you just want to pick your spots. you know, my word of the day is patience because you want to buy low and sell high. you don't have to chase. you just make a list of names that you like and as they come down, you add to them on the weakness. >> patience is a great word for today. a lot of people have not been patient with the federal rate cuts. a lot of people see the rate cut as 25 or 50 basis points wihen t comes to cuts. in your muind, when we look at cyclicals moving higher and staples hitting a record high, what do you make of this action for the markets?

does the 25 or 50 basis point cut really matter? >> no, i don't think it does. i'm not sure we will get 100 basis points which is what the fed is pricing in between now and the nd oend of the year. it doesn't matter. we are getting into a cut cycle. we just got second quarter revisions for gdp at 3%. you are run ning the atlanta fe tracker. that explains why cyclicals are doing well. >> let's see your picks, steph. one is broadcom. this is something we have talked about on "halftime" before. the stock moved lower. isn't is a similar set up with broadcom? isn't this really lofty borrowing with a stock setting up for a similar situation?

>> it could. it could easily sell the news. it kind of trades a little weird around earnings. i would not be surprised because it is up 38% year to date. you are talking about a.i. revenue going to be $150 billion opportunity for the company over the next five years. that's huge. at the same time, marcvell told us last week, the cyclical part of the business is bottoming and starting to see a recovery. that bodes well for broadcom. you havecurring revenue. it gets them more exposure. it is a risk to buy them ahead of the quarter, i realize that, for the long term, i have no doubt this company is a bigger and that's why i want to be bigger in the weakness we have been seeing over the last couple days. >> steph, talmost out of time. all tech is lower since then. why do you want to buy

crowdstrike? i'm sorry we have a little bit of time left. >> cybersecurity is a total addressable market. retention was 98% in the quarter. they are not on losing that much business. they are the number one player on sale. >> stephanie link, thank you. one more quick look at futures. s&p and nasdaq have touchurned o over the hour. "squawk box" starts right now. good morning. nvidia says it has not, not, not received a doj subpoena. rejecting the report from tuesday on the contrary which sent that stock spiraling. meantime, the administration is planning to block the u.s. steel deal. and we will look at the tax proposal to raise the capital gains tax, but not as much as

president biden wanted to. it is thursday, september 5th, 2024 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 along with andrew ross sorkin. joe is out today. he is feeling a little bit under the weather. let's look at u.s. futures. you have the dow up five points. s&p indicated off three points. nasdaq off 37. that comes after a mixed session yesterday for stocks. you actually had the dow higher by 38 points. s&p and nasdaq edged lower. continuing what we had seen the bay before with th