it is 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." here is your "five@5." developing this morning, a suspect is in custody after allegedly trying to shoot and kill former president trump. we have the very latest on that investigation. also, waiting on a cut. stocks coming off the best week in a year and now turning to the

fed and what is expected to be the first cut since 2020. and what you need to know ahead of the central bank decisions. more room to run. the hot sector out performing the market and look at what is fueling the market higher and top picks in that space. later, a company in crisis as the boeing strike enters the fourth day. we speak with a bearish investor on the street about that stock. it is monday, september 17th, 2024. you are watching "worldwide exchange" here on cnbc. good monday morning. thank you for being with us. i'm frank holland. we will get to the top story. the apparent attempt on former president donald trump's life. first, we kickoff the important week of trading with the stock futures check. you can see in the green across

the board right now. the s&p is up higher by 5 points. the dow opening up 70 points higher. the nasdaq ticking up slightly in the green. the s&p and nasdaq are coming off five-session win streaks. this as the fed is counting down the decision on wednesday. you see the moves in the markets over the past week. we are checking the bond market. we start with the ten-year yield. the ten-year is close to the lows of the year. we will see the chart moving in just a second. ten-year at 3.64. you see the two-year at 3.55. always important to note the 30-year back below 4%. that is the read of the inflation expectations. one of the factors the fed looks at with the cuts. oil is coming off the first winning week in the last five. one-third of u.s. crude oil and

natural gas output in the gulf of mexico is still offline after hurricane francine. you see the benchmark moving up 1.25%. you see brent crude trading at $72.35 a barrel. up over 1% as well. that's the morning setup. let's turn attention to the global markets. the fed is not the only game in town. a number of other key central bank decisions are on tap for the week ahead. let's see how europe is preparing. our silvia amaro is in the london newsroom with the look at that trade. silvia, good morning. good to see you. >> very good morning, frank. always good to see you. indeed, it is a very busy week on monetary policy. if you don't think about the fed, we're still going to hear from the bank of england, norges bank and bank of japan. they are all announcing their new rate decisions this week. at this stage, when you look at european equities, it seems investors are very much taking a

cautious approach as they await all of these rate decisions. you have, for instance, the ftse 100 trading below the flat line. when you think about the bank of england, investors do not expect a change in the level of rates. it will be the communication from the central bank. the investors do expect at least one more rate cut before the end of year. let me show you how the different sectors are trading at this stage because they are important corporate stories to monitor out of europe this morning. when you think about the ramifications of what is happening with boeing stateside for instance, this morning, we heard from ryanair ceo saying they might have fewer planes available next summer with the issues are boeing. we are looking at healthcare

up .3%. let's show you the worst trading stocks at this stage. we are seeing significant pressure on basic resources. those mining names at this stage down .50% after very weak economic data out of china this morning. frank. >> silvia, thank you very much. silvia amaro live in the london new newsroom. turning attention back to the u.s. and a developing story. the fbi is investigating what it is calling an apparent assassination attempt outside former president trump's golf course. we have brie jackson with more. >> reporter: thank you. president trump thanked everyone for their thoughts and the law enforcement for keeping him safe. a second assassination attempt against former president trump.

this latest happening at this florida golf course. >> former president trump is safe. >> reporter: the incident comes nine weeks after the attempt in the pennsylvania rally killing one and injuring several others. the secret service came under scrutiny for failures then and this time, agents spotted the suspect and quickly took action. >> it is my understanding he was laying in wait and secret service did a heroic job seeing the needle in the haystoack. >> opened fire near the property line. >> reporter: police arrested 58-year-old ryan wesley routh. court records show he has a long criminal past in north carolina. officials say he now faces federal charges. >> this guy is in a whole load of hurt. >> reporter: a witness played a key role in identifying the

suspect. >> fortunately, we were able to locate a witness who came to us say i saw the guy running out of the bushes. he jumped into the black nissan and i took a picture of the vehicle and the tag which was great. >> reporter: in a social media post, former president trump praised law enforcement for keeping him safe ex-claiming he is proud to be an american. vice president harris urging all to do their part so this incident does not lead to others. president biden also condemned political violence and said that's directed his administration to ensure that secret service has the resources needed to keep former president trump safe. frank. >> brie, thank you very much. brie jackson live in d.c. turning attention now back to the markets and our top market story for this week. investors are waiting for the highly anticipated fed decision

on wednesday. jay powell likely set to cut rates for the first time in four years. betting on 59% chance of a 50-basis point cut. 41% expecting a .25 cut. let's bring in alan here from re regents bank. >> good morning, frank. >> does it matter for the markets in a big way or small way? >> i think basically it is a coin flip right now. i think what is really important is what does chairman powell talk about during the conference because we only have a few more months until the end of the year and are they behind the 8-ball here? it is telegraphing what's to come. there is a lot of time between then and now. >> we want to get to a few

things. what are you telegraphing? >> we think they will come in at 25 with the possibility of 50. what they will telegraph is the employment situation is not as dire as some have talked about saying we're going over the cliff. this is not a wily coyote moment. this is a cooling, not a coll collapsing. don't worry. we're still on this. 25 is enough for now. the only thing we think about is could you do 50 just to placate the market and since we're not going to have a meeting in october, we'll give you comfort. >> my colleague sara eisen talked to paulson. >> rates are 5.25 plus and inflation is down to 2.5% rate.

we have almost 3% real interest. i think we have seen enough data and they can start bringing rates down and i would suggest more aggressively would be better. i would be for a 50-basis point cut rather than 25. >> jeremy was on later that day saying the fed is behind the curve. the growing chorus of the fed behind the curve. is there any risk that 25 basis points won't move the markets because people think fed is behind the curve? >> you are spot on. i think it is a non event at 25. if they wait until november and things are fine, the challenge is if we get employment numbers in october that are worse than anticipated. are they in a place to really move up and you are coming in after the election. you can see how they might be anxious if they don't make that happen.

>> we will cover everything. fed and equity markets and bond markets. we spoke on friday and the stocks and the interest rate cuts. you saw opportunities in communication services particularly with meta and google. since jackson hole, they signalled the cuts. what are you seeing that others are not seeing? >> we figure the cash cows and the ability to deliver earnings. they are far and away better than the others in the s&p. there is a spread in the large services names and the rest of the market. that is our interest level. can they continue to do that? we think they can. the valuation is a little heighr than you want. >> i was looking at the one-year bond. yield is above 4%. would you park money in that sort of duration or are you looking at something longer? >> we come in a little bit out.

extending out, but on the short side of the curve. as the fed begins to cut rates, we will see more on the shorter to midterm part of the yield curve versus the long end of the curve. as you point out, the 30-year is close to 4%. we don't think that will go down materially.cknight, thank you. for more on the trading day ahead, head over to cnbc pro at cnbc.com/pro for insight and analysis. we have more to come here on "worldwide exchange," including the one word that investors just have to know today, but first, more room to run. the check on the red hot sector out performing the broader markets and stocks high on our next guest's radar. plus more on the apparent assassination attempt on former president trump and if it means tonal shift about 50 days before the election.

and the rare bear case for the aerospace giant. more ahead when "worldwide exchange" returns. exchange" returns. stay with us and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possi. ( ♪♪ ) feel the power of osteo bi-flex®. taken every day, it's clinically shown to improve joint comfort in 7 days, with significant improvement over time. ( ♪♪ )

the moment i met him i knew he was my soulmate. with significant improvement over time. "soulmates."

soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title. welcome back to "worldwide exchange." utilities are looking to keep up momentum after the all-time high on friday. the sector is out performing the broader market so far this year. among the six names trading at fresh 52-week highs.

energy and public service inter group up 13% this year. for more, let's bring in our se senior managing director at guggenheim. thank you for being here. >> thanks for having me, frank. >> i'm sure you heard the fed and the 25 or 50-basis point cut. generally, cuts are great for the sector. it lowers bond prices. you have to go overall that. does it matter for utilities if it is 25 or 50 basis points with the cut? >> not really. we are anticipd ticipating a rae reduction. whether it is 25 or 50 in the long run, the cycle has changed. you will go through a period of easing. the other point i wanted to bring up, frank, the sector is starting to be seen as a little bit more of a growth sector.

if you are looking at what's been happening in the market between data centers and domestic manufacturing, the sector is seeing a higher growth sector than in the past year. all in all, i think the sector is set up very well to perform in the near term despite the out performance you have seen to date. >> i think what you are saying is contrary to the other analysts. the upside is the a.i. trade. a lot of people think that may have run its course. you think utilities are 9% under valued. what pushes that 9% going forward in your mind? where is the under value coming from? >> the undervalued is the a.i. is 20% or 25% of what you see in power demand. a lot of what you are seeing in the country is domestic manufacturing which has increased at a rapid clip or

electrification of the grid and you are looking at large energy consumers. you are at a cycle where the deceleration commodity. now it is accelerating at a rapid clip. it is partly data centers and various other sectors. what that means, frank, as the growth comes on with the infrastructure and new gas plants and new power plants to power this new demand which we believe is not cyclical. it is structural and here to say. >> it sounds like near-shoring is cyclical. it will just keep going and going. >> that's right. >> you have a top pick. nexterra. what do you see? it sounds like all utilities will benefit from the trends here. what makes it a standout? >> they're the largest infrastructure player on the

renewable side. when you think about amazon and google and meta, the big hyperscalers and consumers, they have their own decarbonization targets and esg mandates. it is well levered and being the largest renewable developer in the country is front and center to see the demand pull in the market. strong balance sheet. management team is very deep. we believe if you believe in the growth play and you believe in the tight power supply demand and believe renewables aren't going away, the best to play is nextera. >> thank you very much. great to see you. have a great day. >> thank you for having pme on. still to come on "worldwide exchange," sunday football coming back for millions of directv customers. stay with us. stay with us. we'll be right back.

self-detecting, and self-healing. they even have a virtual assistant named marvis. so they can simply ask the network... how's the wi-fi today? that's the now way to network at work— with real ai— letting you rise above it all. (woman 1) all right, here we go. wituggggh.ai— (man 1) oh no, no, no, no, no, no! (man 2) what's my next step?

oh! ugh. (girl) dad. (vo) you break it. we take it. (woman 2) we can take it. (vo) trade in any phone, in any condition at verizon for the new google pixel 9 with gemini. (man 2) give me a recipe with these ingredients. (girl) let's do that one. (vo) only on verizon. awkward question... is there going to be anything left... —left over? —yeah. oh, absolutely. (inner monologue) my kids don't know what they want. you know who knows what she wants? me! i want a massage, in amalfi, from someone named giancarlo.

and i didn't live in that shoebox for years. not just— with empower, we get all of our financial questions answered. so you don't have to worry. i guess i'll get the caviar... just kidding. join 18 million americans and take control of your financial future with a real time dashboard and real live conversations. empower. what's next. welcome back to "worldwide exchange." take a look at futures. they're in the green across the board. the s&p up fractionally. you want to look at the biggest pre-market gainers right now. look right there at the top of the list. intel. over the weekend, we got new reports that intel qualified for grants of $3.5 billion to make

chips for the federal government. merck up .75%. it is time for the big money movers. the three big stock stories of the morning. pfizer shows positive results in the mid stage trial. pfizer saw patients saw body weight gain and quality of life. it could be the first treatment approved here in the u.s. specifically for this condition. shares of pfizer up .50%. one of the dow gainers is disney and directv to agreement. that brings disney and other channels back to the provider. stations went dark after the two sides could not come to terms on fees. that left 11 million customers without the u.s. open and monday night ootball. shares of disney are up .75%.

and another dow gainer is intel. qualifying for $3.5 billion in federal government grants as they will make chips with military and intelligence applications. shares of intel up 3.5%. as we head to break, the fed's rate cut certainty and magnificent seven with the wednesday decision and what it could mean for this high flying group. cnbc is celebrating hispanic heritage month. as we head to break, here is the head of seiu. >> it was coined by cesar ch chavez. there is nothing you can't do if put your mind to it and if you work hard enough and believe in yourself.

i'm so proud to be part of this i'm so proud to be part of this community.reate new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas. morgan stanley.

craig here pays too much for verizon wireless. so he sublet half his real estate office to a pet shop. there's a smarter way to save. comcast business mobile. you could save up to an incredible 70% on your wireless bill. so you don't have to compromise. powering smarter savings. powering possibilities. switch to comcast busines internet and mobile and find out how to get the latest 5g phone on us with a qualifying trade-in. don't wait! call, click or visit an xfinity store today.

it is 5:30 a.m. in new york. there is still more ahead here on "worldwide exchange." here's what's on deck. investors prepare for the big event. markets are pricing in the first rate cut in four years and also looking at the potential impact in the markets. we are following news on the

apparent assassination attempt on former president trump. we will have the latest in a moment. and officials look to get back to the bargaining table. we look at one analyst on why the work stoppage is only increasing his bearish view on that stock. it's monday, september 17th, 2024. you are watching "worldwide exchange" here on cnbc. ♪ welcome back to "worldwide exchange." i'm hollafrank holland. thank you for joining us this morning. we pick up on the stock futures check. we start in the green across the board with the nasdaq flat and moving lower. the dow close to the highs of the morning. looking like it would hopen 95 points higher. we want to look at the biggest gainers on the s&p.

intel shares up 3.5%. we told you over the weekend, intel qualifying for grants and followed by textron up 1.5%. american airlines un1%. the s&p and nasdaq are coming off five-session win streaks and best week since november of last year. now investors are waiting for the first rate cut in just about four years. checking the bond market ahead of that. 3.64. important to note the 30-year is back below 4%. remember, this is the read on inflation expectations. one of the factors for the fed when it comes to rate cuts. we want to look at energy and oil coming off the first winning week in the last five. take a look at crude. higher right now. wti up .50%. earlier this morning, it was up over 1%. still below $70 a barrel. key sentiment level there.

brent crude up .30%. that is the money set up. let's turn our attention back to the developing story. the fbi investigating what appears to be an attempted assassination of former president trump. it's the second such attempt in over two months. this time near his golf course in west palm beach, florida. a suspect is in custody. our eamon javers is joining us with more on the story. eamon, good morning. >> reporter: good morning, frank. at 2:00 p.m. on sunday, secret service agents were clearing a path for former president trump to play golf at his resort. they came across a man with a long gun in the bushes. he fled on foot and taking off at a high rate of speed. a witness, though, managed to get a cell phone picture of the vehicle capturing vital information. the u.s. secret service and palm beach county sheriff's office

put out a be on the lookout alert. police flooded i-95 and spotted the vehicle and trapped it between other vehicles and took the driver into custody without incident. officials said he had an emotionless response to the arrest and did not ask why he was detained. said little at the time. officials said he is 58 the-year-old ryan wesley routh. officials said he had an ak-47 style rifle with a scope and two backpacks hung on a fence with ceramic tiles in them and a gopro camera. frank, the investigation begins to move into the question of motive and whether this alleged would-be assassin acted alone. all of this comes two months

after the first assassination attempt against trump. the attack that nearly killed the former president missing by inches and led to the resignation of the secret service director. that led to questions of quality of leadership at the agency. those questions, frank, are bound to be swirling again today. back to you. >> a lot of questions right now, eamon. what are the questions for the leaders here? do we have any motive? >> reporter: people are combing through his social media now. that is where investors will go. the most important thing and urgent thing in the aftermath is to determine whether this individual was acting alone or whether there were any other people involved in this. if there were, they need to get out and get those people as quickly as they can. no indication of that so far, frank, but that will be the first thing that officials will want to know whether there is any ongoing danger here. now, they turn to his motive and intent. why did he do this?

who is he? what is his background? what inspired him? and then the questions around the secret service, frank. how did this person get that close to the former president of the united states just 400 to 500 yards away with a long gun? the secret service did everything they could within the lower protection level they have for the former president as a former president. if an active president had been on the golf course like that, they would have closed the whole golf course, not just two or three holes ahead. they would have shut the entire thing down. the question now is does trump need that level of security given we had these two scary incidents. >> eamon javers in d.c. eamon, thank you very much. this assassination attempt coming just 50 days before election day. both candidates sharpening the policy focus with small bu

business. fortune 500 policies. joining me now is paul donovan at global wealth management and a member of the bank's watch research team. paul, good morning. >> good morning. >> we have a lot of policy questions for you, paul. i want to start off with the news over the weekend. the attempted assassination. does that influence voters? >> generally speaking, political violence does not tend to influence election outcomes. we vhave seen this in europe an we have seen this with the previous assassination attempt against former president trump. i pressuspect that markets are going to pay too much attention to this. the thing that markets are interested in now are, one, policy proposals, and, two,

probability of election of either candidate and the house and senate. >> i had to ask you about that. we turn back to policy right now. one thing voters are focused on and lawmakers and businesses are focused on is the idea of tariffs. in your mind right now, how big of an issue is tariffs? a lot of social and economic issues at play, but tariffs, where do they rank in your snmind? >> i think it depends where you are in the world. speaking with clients, there is a lot of concern of further disruption to global trade coming from trade taxing out of the united states. i think if you look at european investors or u.s. investors, i get the sense that a lot of investors are not necessarily taking president trump's words at face value you. when former president trump says i'm going to put in 100% tax on anybody who doesn't use the

dollar or 60% on china or universal 10% tariff, those sort of things, i think there is a belief, rightly or wrongly, that these are campaigning points and they're not actually something that will be implemented at the end of the day. >> paul, just to be clear, i want to jump in. paul, just to be clear, if we see universal tariffs, you see bond yields declining and u.s. equities falling by at least 10%. >> a universal tariff is really serious. the thing about the trump trade taxes of the first term is eventually these were evaded. yes, we saw china direct exports to the united states fell in tariffed products, but the rest of the world just picked up the slack. some of that would have been china rerouting and changing

ss supply, et cetera, et cetera. when you don't have a universal tariff, companies will find a way around it. when you have universal tariff, going into the united states, the only way around that is smuggling which is what you used to do in the 1770s. >> you guys? come on. you bringing up 1770s. you guys? you're going back with that grudge there. on a serious note, i want to go to the other side of the coin. universal tariffs are a concern only if donald trump wins the election. if harris wins and the democrats win in both sides of congress, you still see 20% chance of selective tariffs and 80% chance of gesture tariffs. what are gesture tariffs and how important are those for businesses and investors and voters? >> gesture tariffs are what we see quite a lot of. it's in politically important

sectors. what you see with gesture tariffs are tariffs on one side and retaliation on the other side. both sides will be keen not to escalate the situation. so, you get sort of token tariffs coming in. it's making a political point. it's not aimed necessarily at changing things dramatically. >> what would the market impact be of those, paul? quickly, we have to get going. if we see the gesture tariffs and 20% selective tariffs, how does that impact the market? >> gesture tariffs, limited impact on the market. limited for one or two stocks. a broader tariff has a bigger impact on the market. it is a fiscal tightening. >> paul donovan, great to talk to you. we are showing the potential impact of tariffs. great research. than anyo again. >> thank you.

coming up on "worldwide exchange," questions around this new growth player with micron. micron shares down 2.5%.

♪♪ [inner monologue] in this gig... you get comfortable being uncomfortable. ♪♪ the enemy is always adapting... deepfake: hey handsome. ♪♪ [inner monologue] ...always iterating. ♪♪ when it comes to amgen's life-changing medical breakthroughs, every second counts. but without investment, those breakthroughs are often paused. citi's seamlessly connected banking, markets and services businesses, deliver global financial solutions. so our client can keep investing in innovations

for patients around the world. without pause. for the love of moving our clients forward. for the love of progress. welcome back to "worldwide exchange." looking at futures, the s&p is up fractionally. the nasdaq is flat right now. we want to look at the russell futures.

up .75%. small caps will open up .75% higher. time for the morning call sheet. everscore lowering alphabet from 225 to $200. e evercore says there is medium term over the stock in the anti-trust trial. shares up .25%. another price target cut on m micron from morgan stanley. there are growth questions over the first and 40 quarter. the shares of micron down 2%. barclays with an overweight weighting on ge vernova. it sees capital deployment cap capital. coming up on "worldwide exchange," one word every investor needs to know today and the boeing strike entering the fourth day.

our next guest says this is strengthening the sell on this bearish stock. more "worldwide exchange" coming up after the break.

(♪♪) “the darkness of bipolar depression made me feel like life was moving on without me. then i found a chance to let in the lyte.” discover caplyta. unlike some medicines that only treat bipolar i, caplyta is proven to deliver significant symptom relief from both bipolar i & ii depression. and in clinical trials, movement disorders and weight gain were not common. caplyta can cause serious side effects. call your doctor about sudden mood changes, behaviors, or suicidal thoughts right away. anti-depressants may increase these risks in young adults. elderly dementia patients have increased risk of death or stroke. caplyta is not approved for dementia-related psychosis. report fever, confusion, or stiff muscles, which may be life threatening, or uncontrolled muscle movements which may be permanent. common side effects include sleepiness,

dizziness, nausea, and dry mouth. these aren't all the side effects. in the darkness of bipolar i & ii depression, caplyta can help you let in the lyte. ask your doctor about caplyta. find savings and support at caplyta.com. tamra, izzy and emma... no one puts more love into logistics than these three. you need them. they need a retirement plan. work with principal so we can help you with a plan that's right for your team. let our expertise round out yours. welcome back to "worldwide exchange." the strike at boeing is entering the fourth day. in the meeting over the weekend, the union leader said the strike could last a while. workers are confident to get

better pay and benefits. shares of boeing fell 3% on friday. a long strike could further damage the finances which are burdened by $60 billion of debt and production delays and quality control issues. we have our space analyst with us now. >> good morning. >> i think we have to start off you are in the most bearish analyst on the street. your price target is 135. most see it at 213. they have a buy rating. you have a sell rating. what are you seeing? >> i see bad price targeting other than mine. whatyou want to do is focus on the research aspect of the story and northcoast research does fundamental research rather than focusing on backlogs and location of the ceo and where he lives and whether or not he has xavier mcdaniel jerseys.

we focus on the ability to communicate with the channel and their ability to communicate production targets. buzz words today or last week was strike, but there's been a series of strikes that got us to this level to now we believe there is a liquidity issue and the company is likely to issue equity further pressuring the price. >> the issue of equity is what i understand. the xavier mcdaniel jersey? i don't know what that is a reference to, but we'll move on. you talked about the cash flow. i know he used to be on the supersonics, but beyond that, i'm lost. the production impact on boeing is $3 billion. are there other issues impacting cash flow that see? >> we believe they are having difficulties ramping production and the inability to hit the price -- i'm sorry, the build rate schedule for the max and

dreamliner next year assuming the strike ends in 30 days, they will have difficulty ramping up production. that equals cash. that is another problem associated with the new labor agreement. that is $1.6 billion in the period of time of the cash. our longer-term outlook has come down since the beginning of the year. >> i want to give you the other side of the coin. a number of analysts say this is a duopoly. what would you say to that? >> i heard that for a while now. i guess my reaction would be let's see them do it before we start betting on a duopoly. the longer-term targets are not

steady. i'm not sure we can value until we see what boeing can get to next year and beyond. >> chris olin, great to have you here. your price target at 135. you have a sell rating. i think we have to wait and see. great to have you here. >> thank you. coming up here on "worldwide exchange," ahead of the big fed rate decision, wt haour next guest thinks markets are painting too rosy of a picture of a too soft landing. we'll be right back after this break.

welcome back to "worldwide exchange." it's time for the "wex wrap-up." we start with former president trump being safe after the second assassination attempt outside of the golf course in west palm beach, florida. 58-year-old ryan wesley routh has been arrested. and more on the china economic rebound. retail sales rose just over .2% last month missing forecasts. industrial production coming in light showing 4.5% growth in august. u.s. regulators say one fifth of production in the gulf

of mexico remains offline after hurricane francine. platforms remain evacuated. alcoa will sell a 25% stake in saudi arabia mining company for over $1 billion. alcoa expects the deal to close in the first half of next year. former president trump will not sell shares of truth social when the lock yup expires on friday. a spacex capsule smashed down in the gulf of mexico on sunday marking the polaris dawn mission that saw the first ever spacewalk. and retail sales are out this week and earnings from fedex and general mills. then the big event is the fed rate decision on wednesday.

we get central bank policy decisions from uk and japan this week. turning back to the trading day ahead and stocks in a holding pattern. ahead of that, focus remains on what is pourinwering the market higher with the magnificent seven stocks. wehave beata manfey stating it is looking on borrowed time. >> the market will start to broaden up. tech is still something you have to focus in the u.s. the main focus is not only on the large caps, but our strategies remedy commending diffdiv

diver diversifying. >> joining me now is mimi duff. mimi, good morning. great to have you here. >> thanks for having me. >> i want to see how you see today shaping up. what is your "wex" word of the day? >> my word of the day is fed. the week will be dominated by central bank news and the fed's messaging that we get later this week. >> all right. you say it is all about the messaging. if it is about the messaging, does 25 or 50 matter or what jay powell says later? >> for me, 25 or 50, you could make a perfectly neat case for either one. the 50 could be a catch-up case. the messaging and summary of economic projections and the press conference, i think, will matter a lot more. >> i want to get your take on what hedge fund billionaire john paulson said to sara eisen said last week. take a listen. >> personally, i think the fed

is a little behind the curve. rates are, you know, 5.25% plus and inflation is down to 2.5% rate. we have almost 3% real interest. i think they've seen enough data and they can start bringing rates down. i would suggest more aggr aggressively would be better. i would be for a 50-basis point cut rather than 25. >> mimi, you say it doesn't matter. he is saying we need to see 50-basis point cut. in your mind, is there an argument that the markets and the economy needs the 50-basis point cut? >> there certainly is. it's 50/50 priced in right now. what i was trying to say is you could make a case for eethither. he does point to a fairly aggressive path right now. we have ten points priced in between now and the end of 2025 for instance. i think that is a justified point given where the economy is right now and we are far above

what the fed or what we would perceive as neutral. >> far above neutral. i want to talk to you about the valuation of the market. ten-year average is 18 times. what does that mean to make moves in the market that we are trading at that type of valuation? >> we have been under weight equities and overweight fixed income because we thought that portfolio would perform better in a range of areas. if we slipped into a shallow recession or anything like that. having said that, within the equity exposure, we are looking for, you know, to see things broaden out a little bit like your last guest was saying. we do like defensive sectors like consumer staples and h healthcare. >> i'm looking at your pick today. we are looking at the one-year yield above 4%. the 30-year at almost 4%.

do you play the short end or the long end? >> the projections are terrible for the deficit. it's hard to say. it's hard to get excited about the long end. the position in bonds is something we've held on to. we think there is nothing unreasonable about them right now. if i were to take a new long, it would probably be in the belly. >> be in the belly. i have to ask you and i'm surprised more people are not talking about the short end. 4%. we are expecting volatility in the markets and after one year, you have the cash back available. why isn't that a big pick? >> look, we have cash in the portfolios, too. i think it's fine to ride the front end. that is not a long-term play certainly. right now, we are entering, as you said, an easing cycle. it's not going to be a one and done. this is a cycle that we're

coming up upon. >> mimi duff is defensive looking at staples. great to see you. one more quick look at futures before we let you go. futures started the hour in the green across the board. the nasdaq slipped slightly into the red. the dow is off the highs of earlier. it would open 75 points higher. s&p is fractionally higher right now. that does it for "worldwide exchange." "squawk box" starts right now. good morning. gunshots at donald trump's golf course in what looks like another assassination attempt on the former president's life. it's fed week. we'll get you ready for wednesday's interest rate decision and news conference by jay powell. and intel shares are rising after reports the company locked up a $3.5 billion pentagon deal. it's monday, september 16th 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 joe kernen and andrew ross sorkin. on this monday morning, you will see a mixed picture with the u.s. equities. dow is indicated up 73 points. s&p is up 3.5. the nasdaq down by 10 points. that comes after the best week in 2024 for the s&p 500 and the nasdaq. the s&p was up 4%. it closed less than 1% from its record high that was set back in july. the nasdaq was up 6% after five straight winning sessions. the dow was up 2.6% for the week. tre check out the there's try yields. this is interesting. we have a fed meeting this