global headquarters. you're watching "worldwide exchange." we saw tech lead wall street lower. mid east risk rising. the market fixed on the region after iran launches nearly 200 ballistic missiles at israel in a major escalation. a strike from new jersey to texas. they're on the picket lines for

a second day. coming up, the latest on the contentious negotiations. plus, nike stumbles and is a drag as it pulls its guidance and pulls its investments in yesterday, all with the ceo taking the top job yesterday. it's wednesday, october 2nd, 2024. you're watching "worldwide exchange" right here on cnbc. good morning and thanks so much for being with us. i'm frank holland. let's get you ready for the day. take a look. they're under pressure this morning in the red across the board. the s&p down about 13 points 14rkspoints, 14 points lower. the nasdaq down nearly 50 points. the vix often seen as wall street's sphere index spiking,

well off the highs from japan back in august when it hit 68. take a look right now. it's about 19.5. you see a big upside move yesterday. we're going to continue to talk about that throughout the show. the growing mid east risk is hitting the oil market coming off a very volatile session yesterday. we saw it surge 5% before any of the day up, just 2%. take a look this morning at the action we're seeing. wti, the u.s. benchmark up 2.5%, back up about 70 bucks a barrel. keep in mind, that's a key level. bench crude mark, back up. moving more than 2% higher. we also want to check the bond market ahead of today's adp private payrolls report. 3.76. pretty much the same level we saw yesterday. even with the mid east tensions, we didn't see a big flight to safety in the bond market. holding steady. again, the bench market, 3.76.

remember expectations still above 4%. you can call this one our stock of the morning. it's nike. it's getting hit hard in the premarket and weighing on futures after drawing its full year guidance, saying it expects sales to be down mid single digits. a check on nike, again, shares down 5%. again, pulling their guidance. new ceo taking the helm. we're going to talk much more about this company coming up a bit later in this show. a busy day of trading shaping up in europe after a wild session in asia that saw hong kong surge for a sixth straight sense. jp yonge standing by in singapore. jp, let's start with you. >> good morning to you guys, frank, out there. not a great day for asian markets. there's a risk-off for many stockmarkets across the region. we start with japan. pulling back in today's session.

yields also worth watching because the summary of opinions show that many policy makers say they favor going slow in normalizing rates. you might not see much movement in that particular area. really, the bond market is something to watch out for. also they didn't seem to benefit much in that flight to safety. you take a look at the korean and australian markets. they both close in the red. they both firmed up against the u.s. dollar. the currencies not really reacting. it might be losing its luster based on how these two currencies are trading. they are the standout in today's session. the only one that has risk-off sentiment and because of the stimulus story in china might be important for the investors. keep in mind chinese markets are off. the hang seng has surged. keep in mind they've entered in

a matter of six days and wound up with a lot of short positions that also boosted them. no surprise that product developers in hong kong were the biggest beneficiaries, surging high because of news that mortgage rates will be lower by the end of the year and china is going to start loosening some of their restrictions on housing markets and that will make them the standard in hong kong. the risk-off sentiment showing sentiment across asia. >> jp, we're seeing the moves right now. taking a look at the hang seng. our georgia ping on live this morning. always good to see you. turning to overseas action, carolin roth. good morning. >> good morning. we're roughly two hours into the trading session. we're bucking the overall trend. we're modestly higher across european forces as you see on

the screen. the ftse 100 is benefiting, tracking oil prices higher. the ftse 100 up by roughly 0.1% off the session highs. the cac 40 also high, to the tune of 0.4%. the xetra dax is an interesting one because adidas is in there. they're higher on the back of nike. once again as i said before, oil and gas is tracking to the upside tors upside, to the tune of 2.5%. i want to show you the losers. it's a very clear picture when it comes to travel and leisure. some of the european airmens suffering. we've seen a lot of cancellations and die very judge when it comes to the middle east. oil and gas on track for its best session in five months. back over to you. >> carolyn, thank you very much.

we're going to talk more about oil and gas later on. so back to one of our top stories this morning. we continue to watch a developing story in the middle east. tensions are still high after israeli and u.s. forces intercept 200 ballistic missiles fired at israel from iran. israel is vowing to respond while the u.s. doubles down on its commitment to commit to its mid east ally. dan hughes joins us from abu dhabi with the very latest. good morning. >> frank, good morning to you. as you say, israel's air defense systems intercepting almost 200 blues tick missiles here. important to point out iran telegraphed this strike. there were no major reports of damage or civilian casualties. but israel has vowed to respond. so the focus now is shifting to what could happen next. analysts that we've been speaking to today say we could see attacks on iran's defense

sites and other targets. the big strike without be on iran's biggest oil facilities. washington beefing up military assets in the region. we're seeing middle east leaders calling for calm, seeking to deter escalations with lives and livelihoods in the balance, and the biden administration's ongoing efforts to avergt a full-blown war. we're seeing energy prices. wti above 70. brent also catching a bit off the back of this. we saw prices spiking around 5% on the headlines. we've seen prices seeing bright through the asian trading session. iran is an opec oil producer. any strike on its refineries, terminals, or storage facilities could cause a supply surge or supply disruption. that's what we're looking for right now. >> brent crude above 75. we're also getting new comments

from opec talking about oil falling down about 50 byucks a barrel. talk about that as well. >> that's right. they're monitoring the situation in the middle easting but behind the scenes, frank, i can tell you there's also some confusion about why oil is still giving us a 70 usd handle. of course, typically through periods of escalating tensions in the middle easting we would see oil prices spiking. we haven't necessarily seen that this time around. now the saudi energy minister has been out backgrounding reporters h he's been calling out members for your overproducing. "the wall street journal" reporting prices could drop to 50 u.s. dollars a barrel if we don't see those producers reining it in. yes, we're seeing prices stay a bit here. the question is mid- to longer term, will these highs stay intact? it's certainly going to be interesting to watch. >> yes, certainly a lot to watch, dan. our dan murphy live in abu

dhabi. great to see youas always. turning our attention to home. we're now in day two of thee eat coast and gulf coast port strike. the operators are known as the usmx. speaking with the union leader yesterday, they're seeking a raise. usmx offering a 50% raise along with maintaining the current language around the use of automation. that's a very contentious issue in this negotiation. the white house is urging both sides to talk in good faith. they want the ports to stay open while they negotiate. the impact of the strike has hit the supply chain and could potentially respark inflation.

it's impacting shipping rates and delays. stocks have outperformed over the last week. youcan see some of the names here. of course, we're going to continue to follow this story. we're going to turn our attention back to the markets. tensions in the middle east adding to wall street's wall of worry. they're hoping to get some fresh insight into the fed and rate-cutting cycle and then the october effect and the psychological belief that this month can be bad for stocks thanks to historic crashes in 1907, 1929, 1987, and back in 2008. for much more, let's bring in scott ladner, chief investment officer for horizon investments. scott, great to have you here. mid east tensions, port strikes, there are a lot of things investors should certainly consider, but should they make moves? is there anything they should do right now? >> in terms of the port strike

stuff, no, probably not. in the middle east stuff, it's hard to tell. the market tends to look through it very well. we have to watch it pretty carefully, but right now we're still optimistic we can find a path through it. >> very quickly if we watch, lockheed martin, raytheon, l3harris, all of them up as you look at the chart. is this the idea if you look at the chart -- i know you mention the head fake. we saw something like this in april. we'll talk about it later in the show. either wei, it seems like more money is going to go into the defense. we have about 40,000 troops in the middle east. is this the time to put much in defense stocks? >> it's not a bad idea. neither one of these two candidates are going to spend much less, quite frankly. the world is not getting safer especially when we have special threats with china and taiwan. you always have to be careful.

yeah, those defense stocks are probably not a bad place to be right now. >> let's talk about something else. the fed. we heard from jay powell earlier this week. what did you think? 450i7 threaticly it could be 25 and 25 in the last two meetings. a lot of people were thinking we might get 50 in the november meeting. >> i think he wants 25 and 25. if we get 25 and 25, that means the labor market is cooling but not cool. that means everything is on plan. we have had a hint on friday. we're hoping for 25 and 25 as well. we think it's a labor market that will continue to cool but not get cold. >> isn't there a difference between the labor market and the stockmarket? for example, i know you're kind of bullish right now on the biotech. wouldn't that help that sector? if you look at that sector, even since the cut we got, i'm looking at the ibb, xbi, both are down more than 2%. for the sector you're interested

in, wouldn't another 50-point basis cut be great? >> in isolation, sure. those are sectors that can be a little bit levered into the economy. the reason why we like biotech and health care has more to do with ai than the economy. it matters that we get to 50. it means they're getting too slow and too weak, and that's probably going to be a problem. >> overall if we get the 25-point basis cut, what area do we expect to do well? is it cyclicals? what area are you looking at for opportunities if it goes -- looks like you expect? >> i think we can start looking at small caps again. we can start looking at broader aspects, value. specifically i'm talking about homebuilders, financial strikes would be interesting at that point. anything that's more tied to cyclical upturn, possibly also in china as we're seeing right now. those are the places where we

think we want to be. >> if we get a soft jobs report is that a sign that the economy is slowing down? >> it does. it does in the short term. it's playing out that it's getting too close for comfort. >> scott ladner, good to see you. for more what's trending on the market, go to cnbc.com/pro for exclusive insights and analysis. we have a lot more to come on "worldwide exchange" including one word investors need to know today. first, flatfooted, what can convince my next guest to slap a trade on the stock. and more before the "opening bell." and later, why one expert is calling the latest middle east attack an investment. we have a very busy hour still ahead when "worldwide exchange" returns. we can make this work. and the feeling of confidence that comes from our advice... i can make this work. that seems to be universal. i can make this work.

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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. welcome back to "worldwide exchange." tesla is out with its first quarterly report. they're expected to increase. today's report is coming after rival general motors reported a mild sales. still that's far better than global rivals. toyota and parent companies, as stin martin following volkswagen and slashing forecasts for

profitability and cash flow. aston martin lost a third of its market value over the past week. that's the yellow line on the chart. joining me now is tim higgins. he's also a cnb contributor and author of "power play." item, good to see you. >> good morning. >> why don't we start with tesla. we mentioned your book right there. looking at the delivery numbers, the forecast is for 6% increase year over year, 4 f 3,000 deliveries. can you put that in context for us? a year over year-increase, that's always good, escalation in costs, that's always good. we keep talking about rising competition. in that context, f% rise in deliveries, what does that mean for tesla? >> it's not as good as it's been in the past few years. we've seen explosive growth for tesla. in the beginning of the year, not seeing that.

the first two quarters were down. returning to growth, the tesla story is what they need. investors looking for the idea that the company's going to be growing hugely in the next few years. part of that is this week's announcement. part of that will be next week's announcement where elon is supposed to be giving more of his kind of vision for the future. if you're an investor, those are the kinds of things you look for, beating expectations hopefully today and then next week's announcement. >> you know, haver quickly, i want to hit some of these other automakers. what are your expectations? is that also going to be a stock mover or is a lot of that priced in, that he's going to come out with innovation when it comes to all on themy and pricing in all of those things? >> we've kind of seen that. a lot of investors don't expect this in the near term. looking at the results this month, there's going to be a lot of interest in how they're doing in china. the expectation is that today's

results were probably largely due to china sales. tesla has been very aggressive in adjusting its prices ore there as it competes against foreign rivals or chinese local rivals in the ev phase. it's kind of a two-punch if you will. investments want to see the excitement for the future and where they're coming in on profitability with the expected earnings results. >> let's talk about stellantis very quickly. they raised their guidance for sending less vehicles to the united states and north america. before it was 100,000. now it's 200,000. one of the things they cited is increased chinese competition, but we don't sell a lot of chinese vehicles in north america. what's going on with stellantis? >> stellantis is kind of two stories there. the european automakers are talking about challenges in china. stellantis in the u.s. has been troubled for months now.

a lot of observers noticed things had been swelling, dealers concerned about their inventories and pressuring the company to mark down or put incentives to move that metal. you have to remember that chrysler jeep has made a lot of money from selling expensive suvs, and we're in a market where consumers are looking for cheaper vehicles. remember, the average cost of a new vehicle sold in the u.s. was about $10,000 more than it was right before covid really sent prices skyrocketing at the end of 2019. so right now there's this kind of belief that consumers may be priced out of these vehicles. even with the fed lowering rates. kind of put pressure to lower prices in the next few months. not just for stellantis but general motors and ford. kind of the end of the grave train we've seen in the last few years. in the last quarter they reported they're going to

increase the production of their vehicles, but hybrid vehicles is sparking a lot of sales growth. what are you expecting from ford? >> the hybrid is an interesting kind of evolution in the marketplace. for so long we've seen it. ford and toyota have really found success in that kind of in-between area with hybrids. it got appealing to customers who weren't quite ready to go all in on evs who want the flexibility of having the gas and also some of the advantages of the electrification of the car. >> looking at ford u.s. sales in august. hybrid sales increasing by 50%. that's an interesting story. we'll have to have you come back on and talk about hybrids. tim higgings. thank you. coming up on "rlidwodwe exchange," why the u.s. economy took center stage at last night's first and only vice presidential debate. we're live in washington with all the highlights coming up next.

welcome back. last night's fiftd and only vice presidential debate between tim walz and jd vance. much like we saw with vice president harris and former president donald trump a few weeks ago. alice barr joins us now with all the highlights. good morning. >> good morning, frank. it's been notable that the vice

presidential nominees talks largely centered on tax. they took up that mantle. ohio senator jd vance defending former president trump's signature tax cuts while minnesota governor tim walz argued the former president's tax for broader tariffs on goods will wind up inflating prices here at home. let's hear. >> now he's proposing a 20% consumption or sales tax on everything we bring in. everyone agrees including businesses its would be destabilizing it, increasing inflation, and potentially lead to a recession. >> if you look at what was so different about donald trump's tax cuts even from previous republican tax cut plans is that a lot of those resources went to giving more take-home pay to middle-class and working-class americans. it was passed in 2017, and you saw an american economic boom unlike we've seen in a generation in this country.

>> again, a lot being made about how much these two nominees are talking about tax cuts and how they're going to be paid. >> did they expand beyond just tax policy? did they hit inflation? did they hit trade? did they hit the port strike? >> they hit it all. inflation comes up front and center in these things. that's one of the biggest attacks of former president trump against vice president harris. that kaifrs over to the vice presidential nominees. we want to note on trade. there was a back-and-forth we following with similar lines on tariffs. >> i'm not a guy who wanted to ship things overseas, but i understand that, look, we produce soybeans and corn. we need to have fair trading partners. that's something we believe in. i think thise thing that most

concerns me is donald trump was the guy who created the large effort trade deficit in history with china. >> a lot of those same economists attacked donald trump's plans and they have phds, but they don't have common sense and they don't have wisdom because donald trump's economic system delivered to the highest take-home pay in a generation in this country, 1.5% inflation, and to boot, peace and security all over the world. so when people say that donald trump's economic plan doesn't make sense, i say look at the record. >> in broader terms, senator vance called vice president harris's economic record atrocious, saying she's presided over rising prices, inflation. while governor walz says kamala harris's day one was donald trump's coy individual, arguing that's what led to economic collapse. frank. >> alice barr, great to see you as always. as we head to break, we're watching the price of bitcoin after it fell below $60

yesterday during the pretty brief flight to safety. taking a look this morning, we're seeing bitcoin at 61,500, still down about half a percent. crypto tracking stocks, also coming off some whip saw sessions. take a look at their moves in the premarket. give us just one second. riot, coinbase, microstrategy, and robinhood all down. much more "worldwide exchange" coming up after this. stay with us. tions answered. so i don't have to worry. empower. what's next.

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we're moving aggressively to shift our project portfolio and -- that said a comeback at this scale takes time. and while there is some early wind, we have yet to turn the corner. >> and that was nike cfo on the earnings calling, laying out the trouble laying out the apparel giant's turnaround efforts after reporting mixed results and pulling full year guidance. there's a laundry list of challenges for incoming ceo elliot hill coming up in this half hour. welcome back to "worldwide exchange." thanks for joining us. i'm frank holland. after wall street kicked off october in the red, take a look.

the s&p down 16 points, just about a quarter of a percent. the dow looked like it would open 100 points lower. the nasdaq down, about a quarter 1%. it's no surprise nike topping the list following its earnings report. you can see down 5% followed by intel, ma tttel, johnson & johnson. wti surging more than 5% yesterday before ending the day, up just 2%. t take a look this morning, crude moving higher. wti back above 70 bucks a barrel. up almost 3% this morning. brent crude back above 75 bucks a barrel. we've been talking about this on the show quite a bit. 2.75%. at the same time we have the

saudi oil expert talking prices could lower. we had dan murphy on earlier in the show. we continue to watch the moves. we're going to talk about the middle east tensions with our guest coming up on the show. exxonmobil shares up 1.5%. same for chevron and conocophillips. mid east tensions getting a big boost. right now we want to turn to the latest developments in the east and the gulf coast port strike. it's now in day two. roughly 50,000 longshoremen, the union, talking about ports from texas to new jersey. speaking with the union leader yesterday. they're seeking a 61.5% raise in their final offer.

a very important issue in these negot negotiations. the white house is urging both sides to negotiate in good faith. that's despite industry and trade groups calling on the administration to do so. the impact of the strike has already kind of raised shipping rates and created congestion. the question is could it potentially respark inflation. logistic stocks are expecting to benefit. they're outperforming the bottom market. we're going to continue to follow this story throughout the morning here on "worldwide exchange." coming up, sittinghis de tri out. the new downgrade sending shares of harley davidson lower. we'll have that story and more coming up. hog shares down just about 4%.

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"worldwide exchange." it is time now for your morning call sheet. baird has down graded harley-davidson to neutral. it says its recent conversations with dealers indicated recent retail declines and overall low sentiment. another sentiment. raymond james lowering g ge vernova. also a pack of big tech targets. meta citing expectations of

another quarter and moving alphabet to 190 saying attention will return to fundamentals. time now for your global briefing. saudi arabia's minister is warning prices could fall as low as 50 dollar a barrel if members don't stick to the production quota. they're being interpreted as a veiled threat from the kingdom that could launch a price war. opec leaders are holding a virtual meeting today. hong kong stocks are holding a rally over china's latest stimulus measures. the hang seng jumping more than 6% while they're surging more than 8.5%. markets are closed until monday for the golden week holiday. and shares of equipment maker asmpt rising. kkr is considering taking the company private. it's valued at roughly $5 billion.

the company headquartered in singapore has a presence in over 30 countries. coming up on "worldwide exchange," we have the one word every investor needs to know, and our next guest says why investors are ignoring what he calls the biggest geopolitical risk in the last half century and they're doing ittal their own peril. we'll have that coming up after the break. stay i was. r neighbors, the gar, love working with you. because the advice we give is personalized, -hey, john reese, jr. -how's your father doing? to help reach your goals with confidence. my sister's told me so much about you. that's why it's more than advice worth listening to. it's advice worth talking about. ameriprise financial. 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? boom! you get your money back - in cash. straight cash? second chance, you heard? what if my guy fumbles, and some other guy scores first? second chance.

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welcome back to "worldwide exchange." iran launched an attack on israel yesterday. the stocks are on the lows and gold is on the highs. for more on the potential risk for investors an wall street, we're joined by terry haines, founder and head of political an all sis. terry, good morning. it's good to see you. >> good morning, frank. >> you say this for investors, this tire situation is the big effort geopolitical risk. explain that thesis. didn't we see something very similar as far as tensions between israel and iran back in umbrella? >> we did, but what we've got in the highest geopolitical risk

here, we've got a combination of two hot wars, one in yurk and one in the middle east and a near war in the south china sea where china is trying to proveeck against the philippines and others. tensions are very, very high. what you get out of the markets by and large is a conventional response, concerns about oil prices and the like. what's different about this, though, in the middle east compared to pretty much every other middle east war or conflict going back all the way to 1947 is that one side doesn't want to compromise. one side plainly isn't interested. and, in fact, what we've got, as you point out, is a direct confrontation between two of the major powers in the region, iran and israel, and a situation where neither side is particularly interested in standing down. so this is a moment of, i think, unprecedented peril.

>> so you're saying it's a combination. it's the ukraine/russia war, what's going on in the south china sea. it's all put together. you're saying the oil trade, that's kind of a conventional way of looking at it. what are the other ideas that investors maybe aren't considering? >> you know, what you need to do is, frankly, you know, kind of massage your risks appropriately to, you know, get out of -- get out of things that are particularly in peril from all these conflicts, including -- and take a close look at things like the supply chains and the like firstly. secondly, you know, generally speaking, i've said that investors ought to look at the defense sector because what is certain regardless of the u.s. presidential election, frankly, is that you're going to have much greater u.s. defense spending to respond to this geopolitical risk. the u.s. among other things has

positioned itself against the arsenal democracy and feels strained by the ability to supply allies, and so that's going to be -- you know, frankly, job one for whoever the new president and whatever the new congress is. >> defense stocks, that's one of the things you're looking at. we showed this to one of our guestserle letter. you can see the big jump after this news. i have to ask you, isn't there already priced in? we literally saw a very high-stakes attack. ballistic missiles. it wasn't drones this time around. we kind of know what's going on. >> we kind of know what's going on, but it's really one of two things. one is the possibility of something snapping and geopolitical risks jumping still higher, i think, is not completely priced in. there is, among other things, the will to believe, and the will to believe in this case is

that the worst won't happen. you know, i still think that's the best-case scenario, but the worst possibly happening has marketed will increased just in the last few weeks firstly. secondly, i think investors aren't focusing on the likely u.s. response post-election to replenishing defense stocks and ramping up defense capabilities. that's not something that gets talked about during the presidential election. neither candidate, for example, last night talked about it at all with any specificity, but that's going to be job one post-election, and markets ought to be ready for it. >> you say it's to their peril. you say the oil trades are tired at this point. it's kind of a very predictable way to play this. it sounds like the safe haven trades are overdone. what are the other ways as an

investor you can play this if those things are passed on? >> i would look at, frankly, you know, the united states has been transparent in the areas where it feels that it is deficient. you know, there are a variety of studies released over the past year. but i would look not just at defense stocks per se. i would look at kind of the broader support, what gets called the defense industrial base because the defense industrial base overall is something that the united states government on a bipartisan basis really believes is deficient and needs shoring up badly and quickly, and i would look for this to be something the government focuses on wholeheartedly after the election. >> terry haines talking about it. a lot of risks. you say i if you ignore it, it's

an your own peril. we'll have to wait. we'll have to have you back and see how some of these trades work out. thank you very much. investors face a growing list of headwinds. our next guest says it could ylp to lift stocks. asou see, futures are in the red. if you haven't followed our podcast, you should. check us out on apple, spotify, or the podcast apps. much more "worldwide exchange" coming up after this.

welcome back to "worldwide exchange." taking a look fat futures right now, some in the red. the dow looks like it would open 180 points lower. nasdaq down nearly a half a percent. here are some of the stories we're following on "worldwide exchange." nike shares -- excuse me. s&p gainers. you can see all oil gains. a apa, apache, at the top of the list amid the mideast tensions. we start off with nike. those sharing falling on the back of kind of a mixed earnings report, beating street estimates while revenue beat expectations. the company drew itself full-year guidance with thenew

ceo elliot hill set to take over in less than two weeks. here's the cfo on the earnings call last night. we're moving aggressively to shift our portfolio, re-energize momentum through sport. that said, a comeback at this scale takes time. and while there are some early wins, we have yet to turn the corner. >> reuters is reporting that the u.s. labor board is accusing apple of implementing illegal policies for its employees. that allegedly includes anti-union practices, denying wangs, and making them sign nondisclosure and noncompete agreements. meanwhile the updated iphone se would ditch the phone for face technology and run the new face features.

stan dard aero prices shares at 24 bucks a piece, raising $1.24 billion. egg prices spiked, being fueled in part by an ongoing outbreak of bird flu. and california governor gavin newsom signing off on a bill, banning private colleges and universities in that state from considering families and other connections to that school. california is the latest state targeting legacy admissions after the decision to strike down affirmative action. here's what we're watching today. we get earnings from conning a gra foods and levi strauss, september results and we're waiting for tesla's third quarter delivery numbers. we'll hear from essentially fed officials including michelle bowman and tom barkin. back to the markets, they're

coming off a future session. the tech sector had its worst day in just about a month. wall street is dealing with a number of headwinds and the latest spike in oil prices. the economic supply chain impact to the port strike, plus we have the looming jobs report on friday with the fed fully focused on the labor market. with all of those worries, the s&p is only 1% off their record-highs, believe it or not. let's bring in the global investment strategist. simeon, good morning. >> thanks for having me. >> a lot going on. i want to get your word of the day. >> my word of the day is "income." >> your word of the day is income? >> my word of the day is income. with let me back up. you have to put this in the context of what we've known for a couple of weeks now, the it

was 1% off the all-time highs, but it's say salary cut for income-oriented invests. the fixed income market has enough yield to bail you out if the geopolitical tensions get worse. you still have almost a 4% yield on the ten-year bond. you could see that go to 3% or even lower if something really bad happens. so you really have an opportunity to make 10% or 15% on bonds in a real world of turmoil. we haven't had that turmoil in a decade. >> we're off by 3.7%. it's not 4%. >> rounding. >> you're rounding. are you surprised considering all the tensions? >> we still have good news, good economic news in the u.s. you have the 50-point basis cut and the soft landing. we had a month over month-just

0.1%. if you can divorce yourself from the geopolitical tensions, the u.s. much better than the rest of the world and looking pretty good from a solid eck nomic footing. >> defense stocks moving higher on the tensions. and nike was moving considerably lower. are you seeing any opportunities on the upside, possibly a rebound in nike with possibly the new ceo taking over? >> nike is very idiosyncratic, however, it does point out the better center i is in stables, rather than discretionary, that's for sure. if you look at charts for things like colgate and clorox, you see them rallying this systemer. >> very quickly, your pick for us is a cover call strategy on the russell 2000. it's actually underperforming the s&p. you've got to give us the elevator pitch. >> for the first time, a daily covered call strategy allows you

to have the income that you need to replace those 50 bips you just lost but still have a bullish position and participate. rate cuts have historically have an outside positive impact. now you can generate the impact from covid calls and still participate in the russell 2000. >> russell hyman, great to have you here. we're going to talk a quick like at the futures. in the red across the board. that's going to do it for "worldwide exchange." squauks starts right now. goodern mooing. stock futures pointing to a lower open a day after iran carried out a bls tick missile attack against israel. crude and gold both higher. crypto, though, is lower. a full rundown is straight ahead. nike shares is tumbling. the company withdrew its full-year guidance, canceled the day yesterday as it transitions to a new ceo. and what is being called a cordial showdown at the

vermontal debate, we'll show you the highlights on taxes and the economy. it's wednesday, october 2nd, 2024, and "squawk box" begins right now. ♪ good morning and welcome to "squawk box" right here on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin, and this morning you are going to see some red arrows when you check out u.s. equity futures. dow futures off by almost 180 points. a big part of that is nike, and we'll talk about that in just a little bit. the s&p futures down by 21 and the nasdaq down as well. the dow is down by 173 points. the s&p was down b