they don't give a [ bleep ] about us. we'll show them they have to give a [ bleep ] about us because nothing's going to move would you tell us. >> you are looking at the port of new jersey. 50,000 port workers hit the picket lines this morning in the first strike since 1977 after rejecting the 11th hour offer that would raise wages 50% over six years.

a busy morning shaping up with st stories that matter to you and wall street. the port strike that could cost the u.s. economy billions of dollars a day and potentially adding inflation pressure to the economy ever on the edge. and around the world, israeli ground forces move no southern lebanon and targeting key hezbollah areas. no need to rush. wall street kicks off the fourth quarter as jay powell kicks off uncertainty in the fed timeline. and later, how helene could provide a problem for the a.i.

boom. it is tuesday, october 1st, 2024 and you are watching "worldwide exchange" here on cnbc. good morning. thank you for being with us. i'm frank holland. let's get a start of the fourth quarter. the dow and s&p sitting at all-time record highs. we are looking at what could be a pull back when the market opens at 9:30 a.m. the s&p down fractionally ten points. look at the dow. it looks like it would open 140 points lower. nasdaq down fractionally as well. this starts the new quarter, of course, but the same story for investors. they are hanging on every word of fed chairman jay powell, especially yesterday, when it came to his outlook of rate cuts. >> this is not in a economy that's in a hurry to cut rates quickly.

if the economy acts as expected, that means a total of 50 more. >> markets reacting swiftly to jay powell. look here. this is the time lapse of the action on the dow. the dow finishing the day higher. you see that kind of swing in the markets based on the jay powell comments. we want to look at energy this morning. israe israel ramps up the operations in the middle east. wti is down 2.26%. brent crude is down. both falling below key sentiment levels. $75 a barrel for brent crude. brent crude falling below $70 a barrel right now. we'll have more on the story coming up in a moment. let's turn attention backto the top story and this morning's breaking news. as many as 50,000 union long longshoremen going on strike at

12:01 ammonium.m. eastern time morning. increasing prices and reducing the availability of products heading into the holiday season. this will cost the u.s. economy as much as $4 billion a day. according to the estimates, creating issues into early 2025. new this morning, a video from the international longshore metrolongshoremens association, workers ask for higher pay and restrictions on automation at the ports. >> we're going to keep this thing going every day in and out and on the news. we're going to win this [ bleep ] thing. trust me. they can't survive too long and we're going to get the [ bleep ] we deserve. god bless all of you for being

here. thank you. >> usmx releasing ing a stateme adding we would offer wages by increasing up to 50% and strengthen the healthcare options and retain the automation and semi automation. some are calling on the white house to intervene. the president directed chief of staff to convene board members this afternoon and urge them to resolve this quickly. the biden administration says this was an addition to the meeting at the white house on friday with the secretaries of labor and transportation. the biden administration maintains it will not use the hartley act to keep the ports open and continue to keep negotiating. we will have the impact on the

strike and on the markets coming up later in the show. the port strike could add pressures to the u.s. economy as investors kickoff the fourth quarter. that is the first time it has risen 20% or more through the first nine months of the year since 1997. it is also the tenth time it happened since 1950. joining me now is jeremy schwartz at wisdom tree. >> good to see you, frank. >> i want to start with the port strike. do you see that having a meaningful impact on the markets? >> it is interesting to connect the two major themes in terms of the labor pressures, but automation that they try to avoid a.i. or automation as a theme. you have to stay competitive as an economy. we have to figure out how to use the latest technology. it concerns me they are rallying

against using the latest to keep us competitive. that's one of the things when you become too expensive as a worker, you get automated away. that is the thing they will hav >> that is the labor issue. we want to take a live look at the port of new york and new jersey of workers striking. we just hit on the fact that jeffries estimates $4 billion impact to the u.s. economy daily. >> i think it obviously depends how long this lasts and where the pressure comes from. we're still going to need to eat or get food. you have to find other places to get it if you are importing food. i think it gets resolved. i think people don't want the economy to be shutdown. i don't think this will last for a very long time. you know, the negotiations could take a strange turn, but i think

it will get resolved. >> i want to get your take on the jay powell comments yesterday signaling the rate cut path going forward. what do you make bof what he said? >> the clip you played. the committee likes to take things slowly and deliberately. we have been pushing them to fast. we feel they should get to 3.5% quickly. we are happy they took the 50 basis point cut. they are on track. they are doing one cut every meeting through the next summer. we like them to go sooner. they are on the right track. they are bringing the rates down. they had the risk of staying too high for too long, but they made the pivot in time. >> i want to look at the last month or so. copper up 8%. gold up 5.5%. silver up 8.5%. why is this meaningful to you

with the commodity inflation with the potential market impact? >> the general trend has been down for commodities. when you think about the risks for the market, it is hotter inflation that the fed stays too tight and rising commodity prices could be the fact that does that. the roll in portfolio as a hedge to the key risks are used and you have the tactical element of china adding to the stimulus pressure and trying to add to the economy. it is getting people excited about the equity market. commodities play a diversifying role. >> jeremy schwartz, thank you. have a great day. >> thanks, frank. we have more to come here on "worldwide exchange," and including one are word that investors need to know today. and more on the middle east as israel ramps up the offensive

on hezbollah. and the u.s. fight on inflation and how hurricane helene could strike a blow to the industry and the a.i. chip boom. we have a very busy hour when "worldwide exchange" returns. stay with us.

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xfinity internet customers, ask how to get a free 5g phone and a second unlimited line free for a year. welcome back to "worldwide exchange." we are watching shares of nike today which is out with earnings after the bell.

a 12% drop of revenue and they are expected to increase expenses during the olympics. this reports the first since nike announced last month. for more, let's bring in matt powers at powers advisory group. he and his firm are nike shareholders. good to see you. >> frank, good morning. good to see you. >> we hit on the pressures of nike and pressure from the competitors and lack of innovation. when we talk about the earnings report and the call, what are you looking for? >> a few things. i think that first and foremost is the changeover of ceo. john donohoe is replaced by ell

elliot. this changeover should be a huge upswing for nike with the ceo. that is more in focus than the numbers. >> what is your take on china? china has been a sore spot for u.s. brands. facing rising local competition from chinese brands. at the same time, we are seeing chinese stimulus. what do you expect to see from the quarter from china and the sales overall? obviously, china is a growth driver for nike. >> the stimulus announcements in china should pick up consumer demand and nike, if any company, shouldeficiary to be seen what is happening with china and nike. nike is a global company. we should see positives. >> in addition to earnings, there is an have ivo investor d up in november. when it comes to today's report, are you expecting to hear

anything leading into possible transformation or changes that the new ceo is putting in place or is this a look at the business? >> you know, they talked about na pushing that investor day back in november. i think we see nike getting back to its roots. they have the most recognizable brands in the world. it cannot be easily replicated. a change and turning around nike is not going to happen overnight, but i would expect he'll be the guy to help nike get back to the formula that made them a success in recent years. >> i hate to cut you off. i want to button up with you quickly. you are an investor. what would you need to see or hear to pbuy? nike? we see the basketball over your shoulder. i know you're a fan of the brand.

overall, what would it take to increase your stake in the company? >> you said it. nike's my -- i have an affinity to nike. i have a ton of shoes. that's my thing. i would wait until after the earnings before buying more stock. long term, it looks like hill is the guy to get them as a leader and back to the roots. i'm not looking for a quick rebound. they have the global brand and the history. again, you know, you said it, i love nike. >> shares are flat ahead of earnings today. matt, thank you. ahead here on "worldwide exchange," israel increases the offensive on lebanon. we have the latest on the risk in the region coming up after this.

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betmgm's got your back. get your welcome offer. and play with the sportsbook born in vegas. all these seats. really? get up to a $1500 new customer offer in bonus bets when you sign up now. betmgm. download and bet today. welcome back to a developing story. israel sent ground troops to lebanon overnight. nbc news' matt bradley joins me from beirut with more on the story. matt. >> reporter: frank, this is a major escalation as you said, but at the same time, it doesn't seem like it had much of an effect here. this is a very limited engagement of the kind that

israel said, but we have very, very little information about what happened last night. we heard from reuters, who is quoting an israeli official who said there are no firefights between ground troops with the israeli army and hezbollah. they have gone into walking distance into the lebanese border. it looks as they they will not tell us how far the israelis have moved over the border into lebanon. at this early hour, this really looks quite underwhelming even though this is, like you said, a very major escalation. it depends on whether or not we will see more or whether or not israel is satisfied. they said the goal of the operation and they have been saying this the past couple weeks is to push hezbollah from the border and those can return to their homes. tens of thousands of people.

mean meanwhile, the israeli fight has been done by air. this is a dangerous escalation. we talk about the border crossing which is a big deal. the bulk of the fighting has been done by air and we have even a million people displaced in southern lebanon. this according to the lebanon prime minister. still when we are talking about engagement and talking about violence and we're talking about death and destruction, this border crossing, this incursion or invasion really has not really seen the find of fireworks we have been seeing here in beirut. so far, the israelis have said to reuters they are not going to be attacking beirut with ground troops. that is off the takble. frank. >> you are saying it is underwhelming and i know it is a developing story. i want to ask how does this engagement with israeli forces

with hezbollah, how does this differ? >> reporter: we have been seeing this more than 20 years ago back in 2006. you talk to lebanon and every to potential goes back to the 2006 war. that when israel laid waste to lebanon. they had an incursion into lebanese territory. that was limited, just like we're hearing now. it is unclear if this is mimicking or mirroring what we saw back in 2006 or whether this is going to be much more limited or whether this is going to be even prodbroader. back in 2006, most of them were left alive. hassan nasrallah was not killed as he was on friday. it was a major deal and con fla grags and if this meets that level. it's still early hours. >> matt, i know you're there on the ground doing great reporting. we have something across the

wires now. israeli military is asking a dozen southern lebanese towns evacuating. matt bradley, live in beirut, thank you very much. coming up, we will head back to the ports with the live look at the port of philadelphia. we will look at the first u.s. east coast and gulf coast strike. and cnbc is celebrating hispanic heritage month. as we head to break, here is the coo over the orlando pride soccer team. >> as a proud afro latino, i got to witness my parents ethics and hard work. i used those charactercharacter. hispanics continue to add value to any organization. even the sllt kemaeston of acknowledgment helps light the

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exchange." i'm hollafrank holland. this is a live look at the port of new york and new jersey this morning. about 50,000 port workers from maine to texas hitting the picket lines in the first strike since 1977. this is a live look at the port of philadelphia. coming up, we will have a look at the strike in what will cost the economy billions of dollars a day. quite a start to q4. let's check on the stock futures as we start the new month and new quarter. q4. we are looking at the biggest drags on the dow. a look at futures first and foremost. futures in the red across the board. s&p down fractionally. the dow would open 140 points lower. nasdaq fractionally lower as well. now we look at the biggest drags on the dow. looking at the names pulling down lower.

right at the top of the list, disney shares are down 1.4%. chevron is down .50%. new quarter, but same story for investors. they are hanging on every word of jay powell yesterday when it came to his outlook for rate th hurry to cut quickly. if the economy reacts as expected, two more cuts. >> that guidance leading to the markets reacting swiftly. the dow was lower. you see it rebounding here in the chart to finish higher on the day a .4% following the jay powell comments. we are watching oil closely as israel ramps up offensive in lebanon with the ground offensive. oil is actually moving lower right now.

wti crude is down nearly 2.5%. brent crude down almost 2.25%. below key sentiment levels. $70 a barrel for wti. $75 a barrel for brent crude. brent crude trading below $70 a barrel. that's the money set up. now we turn attention back to the breaking news this morning. as many as 50,000 longshoremen are on strike. disrupting the u.s. supply chain and increasing prices and reducing the availability of key products for the holiday season. the president of the ila making a fiery speech about the negotiations with port operators who are known as usmx. >> we're going to keep this thing going every day and on the

news and we're going to win this [ bleep ] thing, trust me. they can't survive too long and we're going to get the [ bleep ] we deserve. god bless all you. >> the tunion is asking for higher pay. usmx delivering a statement saying the two sides traded counteroffers over pay. we would increase wages by 50% and triple employer contributions to retirement plans and strengthen the healthcare plan. the strike would cost the u.s. economy as much as $4 billion a day according to evjeffries. leaders across a number of industries called on the white house to intervene. the biden administration issuing this statement. the president directed jeff

zients and lael brainard to convene usmx board members this afternoon to urge them to resolve this fairly and quickly. this was in addition to the meeting at the white house on friday with the secretaries of labor and transportation. the biden administration will not evoke the hartley act to keep the two sides negotiating. we have our two latest guests with the impact on the markets and economy. omar, let's begin with you. >> good morning. >> i want to start off with the supply chain impact. this strike, this disruption it is doing toincrease costs and across the supply chain, what does it mean for the companies that operate supply chain? >> sure, thank you, frank.

it's been an interesting year. so far, it has been a positive year for container shipping although last year was difficult with companies operating in the red. this year is a reversal in fortune driven by the houthi attacks in the red sea which caused companies to divert. vessels have started to transit longer and voyages and that tightened capacity. we're at a point where the ila is officially on strike. wit we have seen strike options before, but when there last been disruption, they come at a point in time where the container market is loose or the u.s. in a recession or vehweaker economy. this time, things are drastically different. tight container market and ports running at full capacity and there isn't much room for disruption at this point. >> we hit on the fact this it will be a $4 billion impact to

the economy. in your note, you highlight two container and cargo shipment companies. if you look at the last week, they are up over double digits. >> it is interesting. the stocks have had a tremendous run. maersk up 20% and another company up 40%. you know, the equities have taken a life of their own. at this point, they seem to be spiking in freight rates. so far, that spike hasn't come. liner companies have prepared for this disruption. a lot of retailers pre-ordered ahead of time to ensure they had stocks in place if there were a disruption. if this would last a couple more weeks, we would see freight even their enter mostmentumomentum. >> a lot of talk about retailers. 80% of things have been brought

in. more than likely, a lot of them will have to use air freight. >> that seems like a logical place where we see a subjrge in activity. 80% of the holiday season has been taken care of. we are at the margin at this point with a shortage, but if it lasts beyond a couple weeks, air freight will benefit. >> omar, we are showing the charts to the audience and the math has changed on the moves. maersk in the red. any reason why these stocks are trading lower? we are in the disruption right now. why are those stocks moving lower in your mind? >> simply could be one of the typical by the rumor and sell the news events. the strike is officially here. you note at the end of the day we have not seen freight rates pick up. they declined as peak season has come off. they have been running full steam since may and around july and august, they trailed off.

at this point, rates are coming down and people are wondering if we see the spike. >> a lot of analysts say they should benefit in that air freight story. omar, thank you very much. >> thank you. let's shift to the ecoimpac with bill lee from the milken institute. >> good morning, frank. >> omar and his team saying $4 billion a day to the u.s. economy. what about the markets? you have to remember we have the markets trading close to all-time highs right now. >> i think the market will brace for a huge supply shock. in the modern manufacturing economy, the one thing that is absolutely mandatory is bulletproofs ports of entry and exit. we depended upon that. we haven't had a strike since 1977. now we have one, a lot of sectors will be hit. sectors like chemicals and

pharmaceuticals. those will be hit most. >> chemicals and pharmaceuticals and manufacturing companies. we had the president and ceo of manufactures on the show on friday. i want to look at the estimates for q4. s&p overall 13% earnings increased year over year. materials at 14% and industrials at 2%. >> if the history will replay itself and a 44-day strike, i think we will see a hit on cash flow into these companies, especially the short supply companies in the fourth quarter. it will carry through to the next quarter. i think for investors, they should realize earnings reports will be distorted by the activities. >> here is the question. you get a first crack at it. is this port strike inflationary? should we worry about the

reacceleration? i spoke to a lot of trade groups for retailers. a lot say we will see less discounting during the holiday season and some may have to wr raise prices? >> i hate to bring back the term transitory. that would mean a prolonged period of high prices. inflation may not go way quickly if the supply chains get disrupted and we don't have the restoration of supplies we have now. >> bill, why do you hate to say it? a strike would be transitory? it would last for a while and go away. >> economists have been hit by the word transitory. it means not permanent. transitory could mean months and years as we saw with the global supply chain with covid. i hate to use the word transitory. a strike produces a transitory rise in prices, but last a while. >> bill lee, great to see you. i appreciate you hopping on with us.

>> thanks. coming up on "worldwide exchange," shares of ford revved-up ead tahofhe open on the better road ahead for the automaker. we will have it for you when "worldwide exchange." you see shares up nearly 2.5%. stay with us. my other daughter. cancun! jamaica!! why can't they use my backyard!! with empower, we get all of our financial questions answered. so we don't have to worry. can we get out of here? i thought you'd never ask. join 18 million americans and take control of your financial future with a real time dashboard and real life conversations. empower. what's next.

welcome back to "worldwide exchange." it's time for the morning call sheet. citi upgrades ab inbv to a buy.

another rating upgrade from goldman sachs on ford. we showed you the shchart. shares up 2.5%. it sees opportunity in ford including to commercial customers. and key bank raising the target price to netflix. the strengthening content should drive viewership. time for the global briefing. israeli forces are beginning a targeted operation against hezbollah. right now, wti and crude are off the lows of early this morning. the japan parliament confirming shigeru ishiba as the new prime minister. shares of casino operators

in macau showing revenue up 15% in september from a year ago. that figure coming in above what analysts were expecting as the casinos are prey paring for the golden week holiday. veoreey ng up, what ever inst ndss to know and what helene is doing the semiconductor sector. we'll be right back after this break. bloop

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welcome back. president biden is set to visit north carolina tomorrow to view the damage left by hurricane helene. that hurricane leaving a path of destruction across the state. megan cassella is joining us more with the story. megan, good morning. >> good morning, frank. this is a crucial component in the chips called ultra fine quartz. that town saw more than two feet of rainfall last week and city officials tell us there is no water, no power or cell service and the infrastructure is disr disrupted. all of which spells troubles for the mines. the largest operator there said the mining open rations have be on pause since thursday and

still trying to contact all of the employees in the area. a prolonged disruption here would have huge implications here for the $6 billion semiconductor market which is dependent on the north carolina mines. frank, experts say the impact may not be immediate, but it will be global in scale and no one on the ground in spruce pine is optimistic it will be running anytime soon. >> with this issue with this mine, are we seeing an impact on the chip production? >> it's not likely to be immediate and the reason is just because of the way the process is structured. this quartz makes the component that uses the chips. that comes from north carolina. the components last 300 to 400 hours. that's two weeks of use.

companies can use the components they have and might have some stockpiled. before too long, this starts to become a hit. it is not just accessing the minerals now, but getting it out of spruce pine is the issue as we move forward. >> a story to watch. great story. megan, thank you very much. coming up on "worldwide exchange," the catalyst our next guest says could keep the bull market moving as we ckkioff q4. if you haven't already, follow our podcast on your favorite podcast app. more "worldwide exchange" coming up after this. ameriprise financial. advice worth talking about. daughter: hey, dad. dad: hey, sweetheart. daughter: what are you doing?

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well come back to "worldwid exchange." as we close in on 6:00 a.m., a number of stories and this breaking news. 50,000 longshoremen going on strike. the biden administration will not use the tap-hartley act to keep the ports open. the cerebras filing for ipo.

sources telling cnbc chrcvs is working on a strategic review. epic games suing google and samsung. a judge dismissing a lawsuit against elon musk and tesla of defrauding shareholders. overstating the effectiveness of the self driving technology to boost the stock price. we get the jolts report and earnings data with nike and others reporting today. we get fed speeches from raphael bostic and lisa cook. let's get another check of the futures and kicking off another month and q4. the nasdaq turning positive a

moment ago. it is positive right now. the dow would open 140 points lower. the s&p lower. for more, let's bring in victoria green of g squared private wealth. vicki, good morning. >> good morning, frank. >> vicki, what is your wex word of the day? >> my word of the day is blinders. you put blinders on race horses so they stayfocused. don't get distracted by the fact there is a bunch coming at you over the next 45 days. focus on earnings and economic data. put your blinders on. volume will ratchet up. >> vicki, it may be easier said than done. we have noise today. the east and gulfport strike.

>> if this is a week long strike, that would take about a month and a half to undo the bac backlog. they are a little bit close. 77% raise versus 50% raise. they are hoping to do this quickly. a lot of retailers are pulling for import. retailers seem confident from costco to walmart thatinventory. if the supply chain is disrupted for a longer period of time, the effects of the strike could be huge with $4 billion of economic loss every day. if we keep it under a week, i feel confident it will have a minimal effect. if it drags on longer, it is a second order octeffect. >> it is only day one. the white house has not intervened forcing the two sides to a deal, but getting involved to help the two sides facilitate

a deal and contract. i want to talk about if it lasts longer than a week. we played sound from the ila president earlier. we looked at the industrials and industrials. for s&p is 13%. industrials 2%. as an investor, do you start to look at the estimates and say they are too high if the supply chain disruption lasts a while? >> it might be. on the other side of that is the chinese stimulus. that could be huge for manufacturing and industrials and material sector. we have seen that spike last week with cater ppillar with th. it is neutralized. you have rate cuts that are also bullish for the sectors. on the other, obvious, if we have manufacturing coming in, that could slowdown and no exports coming out. that is a risk to them. i think they would possibly strike.

the strike is a more ten native and lower -- shorter term event than the chinese stimulus which is a longer term bull effect to boost earnings next year. >> i know you have your blinders on, but i want to play sound for you. i want your take on what jay powell had to say. >> this is not a committee that feels like it's in a hurry to cut rates quickly. if the economy performs as expected, that would mean two more cuts this aryear. a total of 50 more. >> jay powell saying if the economy performs as expected, 50 basis points of cuts for the rest of the year. i don't know if he is factoring in the strike or what else he is factoring in. what do you make of the fact of the economy following the comments? >> i think it was hawkish. the market is pricing in 75 basis point cuts at the moment. powell is leaving all options on the table.

he is warning that 50 may not happen again. right now, it is 34 basis points priced in in november. powell is beings cautious. he wants to leave options on the table. bulls did address on the comments with the supply chain could cause issues in inflation and if we see inflation spike, that could continue to slow any fed rate cuts coming. i think overall, powell is bullish. he preference he referenced gdp is strong. that's what the market rallied out yesterday. they took it with tried and said powell has a firm hand on the tiller and keeping options open. probably 25. >> let's look at your price targets. the content lineup should drive better viewership. why is this a good stock to buy

right now? >> netflix is winning the streaming wars hands down. i don't understand it's not the mag annif i don't understand it's not the mag anicent eight. they are a fantastic company. neilsen had them with the top ten shows last week. they are getting into the ad-based tiers. they are pushing them toward the basic with ads and suddenly ad growth is there. subscriber growth has been strong and i see that path forward for them. they are winning the streaming wars. how can you not like the stock? i know it is expensive. they are talking about a 500 million user market they are not into yet. they could get into asia. >> the other pick is costco. any concern of the strike impacting costco's margins with

shipping costs? >> it is there, but marginss ar growing. this has been something they had on their radar. i think costco is ready to handle it and they provide value to the members. they had a recent price hike. love the stock. >> vicki, we have to leave it there. one more quick look at futures as we mentioned before with the nasdaq turning fractionally higher a second ago. we are seeing right here the nasdaq in the green. the dow jones right now would open up 140 points lower. the s&p also fractionally lower. we're also looking at stocks right now. chinese ev makers an jumjumping of the open. li auto. different story for other auto automakers. stellantis dropping after 14% and slashing the forecast for the full-year profitability.

shares of stellantis down almost 2%. again, futures mixed right now. we're seeing the dow opening 140 points lower. the nasdaq just turning fractionally higher a moment ago. shares of stellantis down 2%. one more look right now. this is lthe live look at east coast port right now. we'll have more on the story here on cnbc. "squawk box" starts right now. good morning. welcome to the machine -- no, welcome to the fourth quarter. dow futures are moving. you heard port workers on the east and gulf coast are on strike with no deal made past the deadline. and cvs is exploring options

and seeking possibly breaking up the company. it's tuesday, october 1st, 2024 and "squawk box" starts right now. good morning, everybody. 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. let's take a look at how things are shaping up today. right now, you will see weakness with the dow and s&p. dow indicated off 140 points. s&p futures off 8. the nasdaq indicated up barely a few points. yesterday, fed chair jay powell said the recent 50-basis point rate cut shouldn't be interpreted as a sign that future moves will be as aggr aggressive. at a speech in nashville